NASDAQ:AAPL

Apple Inc (AAPL)

347.73
-0.50 (0.14%)
as of Oct 23, 2026, 8:00:00 pm Market Closed.
2022 watching
0
DON'T BUY
He is not an investor, but uses their products. The company has stagnating unit sales -- not very exciting given the premium it trades at. It is very expensive here.
COMMENT
He has not owned this for awhile. His concern if there is a slow down in the smart phone market and concerned about the trade war between US and China. Growth rate has slowed down. Perhaps there is a possibility to trade this name since it is down, but longer term he has concerns.
COMMENT
Still migrating toward services, which have much higher profit margins. iPhone sales expected to drop about 10%, so the stock will probably move sideways this year. Service revenue is also more consistent. Long-term upside. Apple and Samsung really have the market cornered because of US restrictions on phones from China.
COMMENT
Impact of China? There may be more volatility on the shorter term because of China. Has a lot of cash. Services business is growing double-digits. Hard to replace the iPhone which is the big issue that they have to come up with.
BUY ON WEAKNESS

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.

BUY
Apple vs. Amazon. Own both. Apple's a great, big, powerful company that will work out its problems. Both really well run, and moving into healthcare in a big way. Amazon has loads of runway, as does Apple. Buy a bigger chunk of Amazon, as it's performed better. Cloud computing and content business are going to be big.
PAST TOP PICK
(A Top Pick Aug 02/18, Up 4%)A covered call. He suggested buying Apple and selling a $200 call on it. $6.45 on the call, so the cost of your shares are $195. The options expired in August, so the stock were trading under and weren't called. Then, Apple tanked. It would have been hard to hang onto it, but if you had, you would have done great. Today, he'd write options on it again.
COMMENT

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.

TOP PICK

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)

BUY
Own a position in a high-quality company like this and hold for the long term, then add when the street is critical of it. They have a ton of cash and are a great innovator.
COMMENT
The Qualcomm settlement? Not much effect on Apple, but rather Qualcomm (see his comments on that). Apple still needs a 5G solution.
TOP PICK
Great products, but it'll be a giant in services. They remain an established brand. He wishes he'd bought it at $150, but it's back up to nearly $200. (Analysts’ price target is $194.50)
HOLD
Continues to do well and is the industry leader. The move to 5G will not likely prompt as much upgrade opportunity as with 4G. Their push into services will be key to watch. He thinks they are leading in augmented technology as well. As a mature company, you will not see the same punch as in the past.
COMMENT
Not expensive, with an incredible balance sheet and tons of free cash flow. The big issue is that their iPhone is slowing down, offering smaller improvements only. Their services business creates less revenue that their phones. So they need to produce product that people will like. It's unclear how they will drive that. Apple can still generate healthy returns and buy shares, but don't expect massive stock price increases like the past. If they can push loyal customers into new areas, like streaming, then there's good potential.
HOLD
He owns it, and shed some on Q1 earnings. Bought more when it bottomed around $160-170, and now has a 4.5% position. Analysts have extrapolated too far on the weak quarter. Services is where the opportunity is for gross margins to move much higher. At $196, still trades cheaply on enterprise value. They have such a brand, they don't have to be first to market. But they are progressive in "back room" innovation.
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