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NASDAQ:AAPL
This summary was created by AI, based on 85 opinions in the last 12 months.
Experts provide a mixed view of Apple Inc (AAPL) amidst concerns regarding its position in the AI landscape and the pressures on margins due to rising costs, especially in chip manufacturing. Many emphasize the company's strong fundamentals, characterized by substantial free cash flow and an enormous share buyback program, while noting that valuations seem high at around 33-38x PE. The consensus suggests that Apple is adjusting cautiously to avoid excessive capital expenditure on AI, instead leveraging existing partnerships with companies like Google. Despite recent softness in revenue and market performance, particularly in the smartphone segment, Apple's loyal consumer base and expanding service offerings provide a robust outlook, indicated by steady over the past year. However, the lack of innovation and reaction to rising manufacturing costs raises questions about future growth potential, with some experts advising caution on current pricing levels and advocating for profit-taking.
It is so ingrained in the consumer that is not going away. They have a massive amount of cash. The cash on their balance sheet is bigger than 25 countries’ GDP. Not expensive valuation if you take out the cash. You have to watch if they get too big and they can't grow. They are not there yet. Maybe in 10 years.
He regrets selling it 18 months ago. It's done amazingly well. He loves their hardware and they are switching to a services side, but he finds Apple products not easy to use. With the current pullback, yes, he might buy it. They're criticized for not makin acquisitions, but in fact they have been buying smaller companies. He doesn't understand why they never bought Netflix or Spotify--glaring errors--when they have so much cash. The Apple Watch is better than many think.
FANGs? None in the FANG space are good value right now. Amazon has a floor at $1650 and ceiling at $2125 -- with PE ratio of 60. Facebook has given a short term buy signal -- technical support around $187-$189 with 20-25% upside. Nvidia has hit close to full value near $180 -- he might be taking profit on this one soon. Apple had a lousy quarter, but it still beat earnings expectations. He would not touch it here. Google hit resistance the other day -- too expensive as well. Netflix has been up against resistance and unless it can break through he would not touch it. He would only consider Facebook and Amazon as holds or weak buys.
They have 1.3 billion global devices that they are leveraging to grow their services platform. They are buying back 25% of their shares here. That alone is good reason to buy the stock. Cheap at 15 times 2020 earnings. China is improving. Modeling 14% growth rate. (Analysts’ price target is $214.63)
(A Top Pick Jun 05/18, Down 7%) Slowing iPhone sales and there are concerns over consumer privacy with their products, but way safer than Facebook. He likes their cash holding and the dividend they pay. The membership service business is growing as well. He would buy on weakness.