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
Arm Holdings is aiming to become the next big chip stock and is preparing for its public listing, while focusing on establishing itself as a leader in the artificial intelligence sector.
Arm Holdings, backed by SoftBank Group, plans to choose a US IPO as it faces a 1% decline in annual revenue, indicating a slowing smartphone market, and its stock market launch is expected to revive a lacklustre IPO market.
Apple Inc. stock rallied 2.19% to $181.12, marking its fourth consecutive day of gains in a favorable trading session for the stock market.
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 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.
Apple's stock is on track to snap a seven-month winning streak, despite a 6.3% rally over the past two weeks, as concerns over declining smartphone demand continue to affect the technology behemoth.
Leading technology companies, including Apple, Nvidia, and Alphabet, have agreed to invest in Arm Holdings' initial public offering, which is targeting a valuation between $50 billion and $55 billion, according to sources.
Arm Ltd.'s public listing is facing lowered expectations, with the chip designer aiming to raise $5 billion to $7 billion and a valuation of $50 billion to $60 billion, down from previous targets, due to factors such as China risks and slowing smartphone market growth.
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.
Stocks sold off and U.S. Treasury yields rose for the second consecutive day, while Germany's manufacturing orders experienced a significant decline; Apple signed a long-term agreement with Arm, boosting anticipation for Arm's upcoming IPO; the European Commission designated Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft as "gatekeepers" under its new Digital Markets Act; Goldman Sachs updated its conviction list, adding a new company with projected revenue growth and removing another after a significant drop in shares; and markets are focusing on stubborn inflation and the threat of higher interest rates, causing stocks to be pressured and technology stocks to be particularly affected.
Arm Holdings, owned by Softbank, has received investor demand that is six times the amount it is seeking in its $5 billion stock market debut, making it more likely to reach its targeted price range of $47 to $51 per share.
Retail investors should be cautious when buying shares of Arm Holdings' upcoming IPO, as recent data shows that individual investors tend to lose money on blockbuster IPOs, with the 10 biggest US IPOs in the past four years down an average of 47% from their first-day closing price.
Stocks were higher on Monday, with the Nasdaq leading the way, as Apple stabilized and the CNBC Investing Club with Jim Cramer highlighted key events including Salesforce's Dreamforce event, Apple's iPhone 15 event, Google's search trial, upcoming inflation data, and the expiration of the UAW labor contract. Additionally, Meta Platforms is developing a new AI system to rival OpenAI's model, while Oracle's earnings are set for release, with analysts expecting upside from Oracle Cloud Infrastructure.
Investors hoping for a surge in Apple's stock on iPhone launch days may be disappointed, as historical data shows that the stock usually falls on the day of the announcement and the release, but gains in the months following the release.
Arm Holdings has priced its initial public offering at $51 per share, at the top end of the expected range, giving the chip design company a valuation of $54.5 billion.
Arm Holdings stock begins trading on the Nasdaq at $51 per share, meeting expectations, while markets analyze inflation figures and the potential impact on the Federal Reserve's rate-setting policy.
Arm shares surged 25% on its first day of trading on Nasdaq, boosting US stocks, while the European Central Bank's rate decision also contributed to positive market sentiment.
Investors seeking to short Arm Holdings' soaring shares may have to wait at least a day for the stock to become available, as brokers typically wait to locate shares before lending, while trading ARM options may also be delayed due to regulatory requirements.
Arm stock is now trading in rare territory, but the company needs to prioritize AI development in order to maintain its growth.
The Arm IPO and tech stocks have surged in value, making them expensive, and investors may want to consider investing in an ETF to capture the potential gains.
Arm Holdings shares are dropping after a successful IPO, and there are concerns that the stock could fall further.
Arm Holdings' stock had a strong IPO, but recent sell-offs and high valuations have raised concerns about its future performance, leading to a "Sell" rating and a price target of $46 per share from Bernstein analyst Sara Russo. While Arm is a frontrunner in the semiconductor industry and has value in its architecture, investors should temper their expectations, as its exposure to AI is limited compared to companies like Nvidia. Analyst ratings on ARM stock range from "Buy" to "Sell," with an average price target of $51.67, implying a potential downside of 2.3%.
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.
ARM Holdings' lackluster performance following its IPO debut raises questions about the company and the IPO market, as investors may be rotating out of high-risk assets and dampening the prospects for new listings.
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.
