“I find Apple today to be markedly less risky than many of its tech peers, particularly as its multiples are not fully reflecting the true potential of its Service business,” Michael Wiggins De Oliveira writes for Seeking Alpha.
“Apple finished fiscal 2017 in strong footing, proving to all its critics that it is still a growth company. So many investors had, for far too long, been chanting that Apple was a mature company, without enough markets which it could successfully penetrate – which could meaningfully move the needle on its bottom line,” De Oliveira writes. “Now, as time moves forward, Cook and team are able to demonstrate what they do best – grow Apple’s opportunity.”
“Apple is one of the most cash generative businesses around, which is backed by a balance sheet which carries $150 billion net cash position. Said in other words, currently, approximately 15% of its market cap is composed of cash,” De Oliveira writes. “Apple stated in Q1 2017 that one of its top priorities would be to grow the size of its Service revenue, so that by 2020, it would double in size from fiscal 2016 – in just four short years. And true to form, Apple continues to make strong progress, with Q4 2017 ending up with adjusted run rate of 24% growth YoY. I have felt for some time and continue to believe so now that Apple’s Services opportunity is underappreciated by investors.”
Read more in the full article here.
MacDailyNews Take: Yup.
Apple’s services business is an unstoppable locomotive that, someday, even Mr. Market might fairly value. — MacDailyNews, August 9, 2017
SEE ALSO:
Apple Services: The nitrous in Cupertino’s profit engine – November 27, 2017
Inside Apple’s massive services results – August 9, 2017
Misunderstanding Apple Services – August 7, 2017
Dispelling the Apple Services myth – May 3, 2017
Apple’s Services business: $7 billion in revenue last quarter alone – May 3, 2017
Apple’s Services (App Store, Apple Music, Apple Pay) business is an unstoppable juggernaut that’s still just gathering strength – May 3, 2017
Still no Mac Pro.
HomePod delayed.
Security glitch undetected in High Sierra.
Green line appearing on iPhone X.
iPhone X failing in cold weather.
Yup, everything’s good at Apple.
NO company is perfect. However, comparing Apple’s “difficulties” to those of Samsung, Motorola, LG, Google’s Pixel, Amazon Fire, Microsoft’s now discontinued smartphone, and others, Apple’s “problems” are virtually nonexistent.
But, for some reason, King Whiner wants to be here… whining and whining and whining. Or what do I know? Maybe he goes to all their sites too. (I don’t think so.)
How your transgender surgery go, Sean? Stocking up on your estrogen tablets?
Samsung has far less problems coming out with diversified and fresh products. I would add to the list, where is the Mac Mini? Why do we only have 3TB time capsules when there are now 10TB hard drives? How come in 2017 the biggest drive I can get in an imac is 3GB, the same size offered in 2013? Apple is asleep at the wheel with a whole lot of their product portfolio.
Dear Mr King, please sell all your Apple devices, switch to other platforms, you seem narrowly obsessed and despise Apple, suggest you take a nice long break and regain normal perspective.
At least Apple devices don’t spontaneously catch fire or explode.
Apple’s software is way more secure than anything windows or Android.
Better late than never. Apple doesn’t make vaporware. It may be late be it DOES arrive.
This situation has been obvious for many years. Analysts either by design or by ignorance disregard Apple’s huge cash balance, downplay the success of Apple’s services and ring alarm bells about any slightly negative news.
Any mention of good news is dismissed as being ‘already baked in” and after spending most of each quarter playing down Apple’s prospects, in the last few days towards the end of each quarter, analysts suddenly find reasons to expect incredible things from Apple and then set unreasonably high targets. If Apple doesn’t end up meeting those targets, then it’s declared to be failure by Apple and certainly not owned up to as yet another failure by analysts.