Apple reported March quarter results with revenue 16% above the Street. While growth rates will fluctuate, Apple will remain a growth story for the foreseeable future, longtime analyst Gene Munster writes for Loup Ventures.
Gene Munster and David Stokman for Loup Ventures:
The company will benefit from a multiyear 5G cycle, an accelerating digital transformation driving demand for its products and services, and eventual new product categories. Putting it together, we believe shares of AAPL will approach $200 (48% upside from current levels) over the next several years, based on 35x our 2022 EPS estimate of $5.70. As analysts update their estimates, we believe consensus expectations for 2022 EPS will be closer to $5.00.
We’re hard pressed to remember a quarter with this kind of beat. It’s reminiscent of the upside in some quarters a decade ago, when iPhone was ramping into new carriers. Investor enthusiasm related to the March quarter is diluted by concerns about sustainability of these spectacular results.
For those who have closely followed the Apple story, the “it can’t get better than this” line of thinking is a well-traveled investment outlook. Despite these perennial concerns, Apple has launched new products and services to keep the impressive results coming. We believe this pattern will continue in the decade ahead, as the company adds hardware as a service offerings, launches mixed reality products, and finds a path into the massive addressable market of the upcoming transportation paradigm shift to autonomy.
We believe that Apple’s best days are still ahead based on an accelerating digital transformation that we cannot yet fully comprehend.
MacDailyNews Take: There’s much more in the recommended full article here. We agree wholeheartedly with Loup Ventures’ overarching theme. With Apple, you’ve only seen the tip of the iceberg!
I read an article 20 years ago that said if you have any intentions of investing in Apple, you probably missed the boat – sure glad I DIDN’T listen to this expert Wall Street advice. We are still early innings with the Apple story, onward and upward. 🍎
I agree whole heartedly too.
But WTF is the markets problem…. We have about 4-5 upgrades from 160 to 180 ish from prominent houses,,, yet Apple closes in red?
Same BS as holiday season…. Apple demolishes expectation with all time record breaking quarters beyond anyones wildest dreams.. and yet here we are.. closing in red..
Absolutely F-ed up.
But look at FB… they warn that their main income source..advertising revenue is in serious jeopardy… they are up 7% ish….
Investors have lost their minds..
Been in Apple for 18 years….. im in for the longer haul…. never the less its heartbreaking to see market react the way it has.
I totally relate to your frustration level. I’m pulling my hair out trying to understand what is going on and what it is going to take for Apple stock to advance out of this sideways rut.
You’ll have to ask the individual investors as Apple stock is well known as a prominent tech stock that is one of the least majorly owned by institutional investors.
I’m just as frustrated by the market – the Facebook move makes no sense.. I am a long time investor in Apple and happy that I am getting over $1500 a month in dividends on top of whatever stock rise there will be and I sure hope it is coming. Slow and steady wins the race.
All, unfortunately most big investors and hedge funds invest on speculation about the future, not how great the company is doing now. And it does not matter that much on actual projections by the company itself. It matters on perception by the investor community of what reality will be.
It’s the old “buy on rumor, sell on fact” mentality.
The only reason this works for large investors in the market is the bandwagon effect. Large investors start selling (profit taking or other) and the next tier starts to sell too — for no other reason than the top tier sold.
Apple has been a rolling stock since the late 80s. Sometimes the long term trend has been down (think the dark days). Most of the time the long term trend has been up. Yet, it’s still a rolling stock.
The Mac’s best days are behind it… someone said in 1993, 1995, 1996, 1997, 2005, 2010, 2013, 2018…
John Dingler’s best days are behind him. TXLuser, too. And Microsoft.
You are a fucking liar! Stop trying to contradikt me, you nasty political ccp loving traitor person! You must be from Kalifornia, I hate everybody from the most populous state! Gimme more tax cuts and more free Medicaid. Timmy bad, AAPL good, MAGA.
Nuff Said.