AAPL stock fell to a new 52-week low last week, signaling its longest loss streak in 18 years, but portfolio managers aren’t close to throwing in the towel on Apple just yet. In fact, this could turn out to be the equivalent of a Black Friday sale for anyone wanting to get their hands on some massively undervalued stock!
“Things aren’t as bad as everybody thinks,” said Dan Morgan, senior portfolio manager at Synovus Trust, speaking on CNBC‘s “Squawk on the Street.” “[Apple has] a tremendous amount of room to grow.”
Meanwhile, David Katz, chief investment officer at Matrix Asset Advisors, says that his firm recently took a small position in Apple when stocks fell under $95. He predicts AAPL will rebound as soon as investors settle down and start to feel a bit more confident — likely around the time of the iPhone 7.
“It’s very important to put Apple’s valuation in perspective,” he told CNBC‘s “Power Lunch,” while also acknowledging Apple’s dividend. “It’s a very good place to be.”
Finally, Jason Ware, chief investment officer at Albion Financial, told CNBC‘s “Power Lunch” that his “near-term realistic” outlook is that the iPhone 7 will help drive AAPL stock back up. “It doesn’t have to be better than the [iPhone]6, it just has to get people to upgrade and reignite a little bit of growth again,” he suggested.
People have long argued that AAPL is an undervalued stock, based on metrics like its massive $200 billion cash pile which seem to get largely ignored by many. While we may have to wait until 2017 to get a really significant iPhone refresh, it appears that — for many investors — doom predictions about Apple have been greatly exaggerated.
Do you think AAPL is a good investment at its current price, or do you think the boom period is over for good? Leave your comments below.
Source: CNBC
Luke Dormehl is a U.K.-based journalist and author, with a background working in documentary film for Channel 4 and the BBC. He is the author of The Apple Revolution and The Formula: How Algorithms Solve All Our Problems … and Create More, both published by Penguin/Random House. His tech writing has also appeared in Wired, Fast Company, Techmeme and other publications.
2 responses to “Why Apple stock is far from dead”
Tim Cook really isn’t bright at all. He seems to be more like a dunce. Warned by everyone that the company couldn’t rely on iPhone sales forever, he simply ignored everyone’s advice. Apple should have been investing in cloud services like all the other large tech companies did. Nope. Now that iPhone sales are completely bogged down, there’s no backup plan in place. The biggest losers… Apple shareholders. Apple is pretty much flush with cash but no direction of what to do with it. The true case of locking the barn door after the animals have escaped.
What makes Jeff Bezos so smart is he tackles problems long before they present themselves. Tim Cook never sees what’s ahead and only tries to fix what’s already been broken. It’s claimed Tim Cook is running to China to patch things up with the government. Now the Chinese government has the upper hand (which certainly does make sense) and will blackmail Apple for all its worth. It’s not going to help iPhone sales one bit. Apple should have supplemented the iPhone business a couple of years back, but didn’t. The big investors despise Apple’s incompetent management style and that’s why no one is going to be buying Apple stock unless it’s their last resort. Kiss Apple’s value goodbye.
All significant revenue streams are built on top of iPhone/iOS.
No diversification. No strategy. No R&D. No meaningful acquisition experience. No future.
Just a pit full of money full with execs who have no ideas, and increasingly desperate investors hoping for a miracle.
Nice icons though.