Apple stock’s sharp gain following the firm’s Apple Intelligence reveal at WWDC on Monday puts it up about 21% over the last three months. After such a steep gain, many investors are likely taking a close look at the tech stock to see whether it’s a buy, sell, or hold. So, is Apple stock a buy even after its recent surge?
Daniel Sparks for The Motley Fool:
Perhaps one of the big reasons why investors are bullish on the stock’s potential following the announcement of Apple Intelligence is that the AI software will only be available on recent Apple products. As far as its smartphones go, for instance, Apple Intelligence is limited to the iPhone 15 Pro and Pro Max (note it’s not even available on the standard iPhone 15). This could lead to a big wave of smartphone upgrades from Apple’s loyal customer base as consumers look to get their hands on more AI tools.
Apple Intelligence is also limited to newer Macs and iPads. It will be available on iPad and Mac devices with M1 chips and later.
Given that Apple has benefited from big waves of iPhone upgrades before, it’s definitely possible Apple Intelligence will bolster iPhone sales trends. For this reason, selling Apple shares at a time like this could be a mistake. But buying shares at this level, unfortunately, leaves very little margin of safety for the upbeat expectations priced into the stock. For this reason, it’s probably more appropriate to call Apple stock a hold at this level.
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MacDailyNews Take: Apple’s PE ratio is high at 33.14, but it’s been higher. We are, as ever, accumulating on the dips. Of course, always do your own due diligence.
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Absolutely! Easy worth 1000 plus a share. Their AI is tremendous. And where they position AI for every app developer to place it in every application, oh yeah 1000 plus. Add to that the M5 processors. Intel will have to flat out buy Apple to catch up.
Bob must have forgotten that there was a 7:1 stock split almost a decade ago.
so what
apple has been buying its shares back.
so your point is what, the market can’t value apple’s shares that highly because they have had a split in the past. interesting.
It looks like BOB has been conversing with Brian–$1000/share–White, of yester-decade.
But then again…higher maybe: https://x.com/zerohedge/status/1801273380861075964
Microsoft’s os is still pretty bad. And I mean bad. I don’t blame them for trying to get as much help as the can possibly get. AI, machine learning, and every soul in china and India cause Microsoft is still that bad. I would support Linux too if I were them. Man! All these years and they still haven’t copied Apple right. Good grief.
No, don’t buy at the all-time high. Apple has a track record of getting slapped and slammed by Wall Street, there will be many more dips and dunks to come, not to mention economic crashes, wars and acts of God that will punish the stock. I’m glad I patiently held through the past pathetic year, but at no point did I think ‘WOW give me more!’
I seem to remember I regret for not seeling some after it seemed AAPL’s good days were declining? Selling some at ATH’s is rarely a bad idea.