Main financial assets discussed: Apple (AAPL) stock
Top 3 key points:
1. AAPL has been a popular investment choice due to its strong balance sheet, popular products, and services.
2. However, AAPL's financial results have shown a decline in revenue and earnings in recent quarters.
3. The author believes that AAPL's stock is overpriced and vulnerable to a potential market sell-off.
Recommended actions: **Sell** AAPL stock or consider selling calls against it. If AAPL falls, roll down the calls and generate more revenue. If AAPL surprises to the upside, let the shares be called away or roll up the short call to a higher strike. Hedge against a potential market sell-off by going long on UVXY, SQQQ, SPSX, and HIBS in-the-money calls. Set aside about 25% cash for optionality.
Main financial assets discussed: Apple (AAPL) stock
Top 3 key points:
1. Apple's valuation is high and its growth is slowing, making it difficult to justify its current market cap. The company's revenue has declined in recent quarters, and its forward P/E and P/S ratios are elevated.
2. Apple has potential for growth in emerging Asian markets, particularly India, where it currently has a small market share. The company's services ecosystem, including the App Store and subscription services, has been a source of growth.
3. Apple has a strong financial position, with high returns on invested capital, a large R&D budget, and significant free cash flow. This provides the company with flexibility and optionality for future growth and acquisitions.
Recommended actions: Hold
Investors are looking forward to after-the-bell earnings from Nvidia as the Dow, S&P 500, and Nasdaq are set to open slightly higher; Apple is now the most under-owned large-cap U.S. tech stock while Meta Platforms is the most over-owned.
Nvidia's market value surpasses Apple's as it leads the market higher amid the investing frenzy over artificial intelligence.
This article mentions the stock of Apple (NASDAQ:AAPL). The author's suggestion is not explicitly stated, but they express concerns about the low dividend yield, modest dividend growth, and potential overvaluation of Apple's stock. The author also discusses Apple's strong brand, the possibility of an acquisition of Disney's assets, and the headwinds and risks facing the company. The author suggests that a recession or market correction could lead to a potential price drop and provide a good entry point for investors. However, they also acknowledge the potential for the stock to continue trending upwards, especially during the holiday season.
Apple and Nvidia are two Nasdaq-listed stocks that have the potential to lead your portfolio for years to come, with Apple's sustainable profits driven by their shift to a services-focused approach and Nvidia's dominance in the AI hardware market.
Apple stock rose more than 2% on Tuesday ahead of its Sept. 12 event where the company is expected to announce new products, including the iPhone 15 and new Apple watches.
Four major tech companies, including Apple, Alphabet, Microsoft, and Meta, have collectively spent over $1 trillion on stock buybacks in the past decade, exceeding the market values of Tesla, Meta, and Berkshire Hathaway.
Investors are bullish on the market in 2023, with the Nasdaq Composite up 30% and two leading ultra-growth stocks, Amazon and Apple, poised to benefit from improving market conditions and their strong positions in multiple industries.
Salesforce surpasses Apple as the top-performing stock in the Dow Jones Industrial Average and continues to gain momentum after its latest earnings report.
Apple shares have declined due to falling revenue in its product segments, but the company's long-term outlook remains strong, driven by its booming services business and dominant market shares, with two reasons to buy Apple stock being the upcoming iPhone launch and its potential in high-growth industries like AI and virtual/augmented reality.
Apple's recent sell-off due to concerns about a Chinese crackdown on iPhone usage among government workers should not deter investors from the tech giant.
High-quality dividend stocks, which have been market favorites in recent years, are currently not receiving much respect but now may be a good time to buy.
Analyst suggests that while Tesla is not a good buy at the moment, stocks of Ford and GM are worth considering.
If instead of buying new iPhones at each release, one had invested the money in Apple stock, they would have a stock portfolio worth $367 million.
Wharton professor Jeremy Siegel believes that the current valuation of the stock market is a good deal for investors, and long-term investors should continue to buy stocks despite concerns about a potential recession, elevated interest rates, and high inflation.
This article mentions the stock of Apple (NASDAQ:AAPL). The author's recommendation is to buy Apple's stock.
The author's core argument is that Apple's historical growth and expanding margins make it an attractive investment. They also discuss the pricing strategies and innovations of Apple's new iPhone lineup, suggesting that it will drive sales growth. The author also addresses the potential challenges of prolonged upgrade cycles and the risks associated with the Chinese government's actions towards Apple. They provide valuation metrics and projections for Apple's future revenue and stock price.
Despite a drop in Micron Technology stock and a surprising margin outlook, analysts suggest that it is a good time to buy.
Goldman Sachs strategists have noted that the largest tech stocks, including Apple, Microsoft, and Amazon, are now trading at their cheapest valuation relative to the median stock in over six years, as their price-to-earnings ratio has fallen to 27 from 34.
Big Tech stocks have taken a beating recently, but there is a case for buying them now.
Apple's stock, despite recent declines, remains an attractive long-term investment due to its successful track record in dominating various tech markets, its undervalued price-to-earnings ratio, and the booming growth of its services business.
Wall Street downgrade of Apple demonstrates the risks of trying to time the stock market.
Apple stock is facing multiple concerns, including China, AI, search, and growth, which need to be addressed in its upcoming earnings report.
Technical and seasonal indicators suggest that it may be a good time to buy stocks in the U.S. market, despite potential curveballs from upcoming inflation data and third-quarter earnings season.
Apple and Amazon are two stocks recommended by Warren Buffett as potential investments in the next bull market due to their strong growth prospects, high profits from services, competitive advantages, and positions in high-growth markets.
Morningstar's David Sekara suggests that now is a good time to buy undervalued stocks after the recent market sell-off, and Morningstar analysts have outlined their top 33 cheap stocks to buy now.
### Summary
As earnings season approaches, investors looking for safe bets and potential stock growth might consider Apple, Microsoft, and Alphabet due to their dominance in the tech industry, their expanding business segments, and their strong financial performances.
The "Magnificent Seven" mega-cap Big Tech stocks, including Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla, have lost $1.2 trillion in market value since the end of July, attributed to investors' fears about the Fed's rate hikes and spiking bond yields.
