Apple has lost $450 billion in market capitalization since President Trump announced his reciprocal tariffs on Wednesday. Shares are now trading below $190 per share. Is it time to by Apple stock?
Frank DeMatteo for Investing.com:
This morning, matters took another turn after China retaliated with a 34% tariff on U.S. goods. So far, Trump hasn’t hit back with his promised hike for any country that retaliates against the U.S. tariffs. However, Trump said in response that “China played it wrong,” suggesting a raise could be forthcoming.
In a note to clients on Thursday Rosenblatt analyst Barton Crockett said he sees Apple facing a $40 billion tariff cost. This would equal a 32% hit to operating profit and EPS.
BofA Securities analyst Wamsi Mohan said if the tariffs stick and Apple absorbs the entire $20 billion of headwind and 500bps to GMs, they expect an impact of $1.24 to EPS… Mohan said that with a potential $1.24/share hit to EPS and 25x multiple, the lower end of the past 5-year range, they see downside risk in the stock to $180.
Morgan Stanley’s Woodring said that given that Apple could raise prices gradually, a bear case EPS hit may be down 10-15%. This suggests CY26 EPS of $7.19, versus the consensus of $8.19. Apply a trough multiple of 24x that gets you to a $172 stock.
MacDailyNews Take: You can panic with the over-reactionaries swayed by market manipulators shoveling several metric tons of tariff apocalypse bullshit or you can profit from the fruits of their labor. We prefer the latter course.
We’re seeing sub-$190 AAPL now. Yes, it is glorious! Hopefully, the fomenters can continue piling on and push it even lower!
AAPL is like a buoy. Quick, it’s back on the surface! You there, analyst, and you, too, swim down and tug on the chain! Drag it under… lower, lower… Good! Now, quick, everybody jump on, and we’ll take a ride back up to the top again! — MacDailyNews Take, January 9, 2012, on which date AAPL closed at $12.69
At the most basic level, it’s extremely simple: Pump, then dump. Foment, then buy. Rinse, lather, repeat as the SEC sleeps. — MacDailyNews, April 26, 2012, on which date AAPL closed at $18.29
CNBC’s Jim Cramer maintains one key guideline: when the market gives you a chance to buy a high-quality stock, you must take advantage of it: “You literally have to take action right into the knee-jerk negativity to get the best buys, and that confuses a lot of people.” – Elizabeth Gurdus, CNBC, October 16, 2017
Please help support MacDailyNews — and enjoy subscriber-only articles, comments, chat, and more — by subscribing to our Substack: macdailynews.substack.com. Thank you!
Support MacDailyNews at no extra cost to you by using this link to shop at Amazon.
OK, MDN, you have been bragging about backing up that fukin truck. Well, when did you back it up? At $210 a few days ago? Or, at when did you load up that backed up truck? Hey … its at $188 now and was at $260 on Jan. 1st. Let me guess … now you are loading up, right? All bullshit.
Wow dollar cost averaging never hit your radar. It’s too exotic for that TDS broken psyche of yours, we know.
Market timing is really hard. There is so much uncertainty it is hard to know where the bottom is.
Are we all still Trump supporters here?
absolutely not
The Trump formula for calculating tariffs is utter nonsense. ” Trump’s team is making up fake tariff numbers for foreign countries based not on anything having to do with tariffs, but on trade deficits, which is just an accounting of inflows vs. outflows between two countries.” “The fundamental problem here isn’t just that the tariff numbers are wrong — though they absolutely are. It’s that the entire premise rests on treating trade deficits as if they were tariffs. They’re not the same thing. At all.
They didn’t actually calculate tariff rates + non-tariff barriers, as they say they did. Instead, for every country, they just took our trade deficit with that country and divided it by the country’s exports to us.
So we have a $17.9 billion trade deficit with Indonesia. Its exports to us are $28 billion. $17.9/$28 = 64%, which Trump claims is the tariff rate Indonesia charges us. What extraordinary nonsense this is.
…this team isn’t mildly competent. This team is extremely, profoundly, impressively incompetent. Let’s look at who exactly we’re launching a trade war against, starting with the Heard and McDonald Islands. Total population: zero human beings. The only residents are some absolutely stunning penguins. You can actually adopt one if you want — though I suppose that may now cost 10% more, thanks to Trump’s tariff.Besides slapping tariffs on countries with whom the US has a trade surplus (Britain, Australia, etc.), the US has also slapped tariffs on islands whose main population is penguins.