“Whether or not that supercycle actually plays out as hoped, Apple’s stock price is highly unlikely to repeat its recent performance next year,” Gallagher writes. “The stock has historically turned down following a big iPhone launch — particularly when it is trading around 15 times forward earnings, like it is now. That’s because strong iPhone cycles now have a tendency to lead to weaker ones, especially since the growing price tag of Apple’s phones drives customers to hold on to their devices for longer periods.”
“Apple, like other big tech giants, will benefit from the recent tax reform package that removes the incentive to stockpile billions of profits overseas. But the $252 billion that Apple has stashed offshore will most likely go toward paying down its growing debt pile and boosting cash return—neither of which are likely to re-rate the stock.”
Read more in the full article here.
MacDailyNews Take: Barring unforeseen catastrophe, Apple Inc. will see a trillion dollar market value.