Back in late September, I laid out a bearish thesis on Apple and the trade expired last Friday and resulted in a 100% gain.
Apple (AAPL) continues to face significant headwinds, with disappointing iPhone 16 sales, growing competition in augmented reality, and underwhelming progress in artificial intelligence (AI).
China's slowing economy has weighed heavily on Apple, exacerbating challenges in one of its largest markets.
While Apple boasts industry-leading net margins of 24%, its expected EPS growth of 11.6% and revenue growth of 6.9% provide limited justification for this valuation premium.
With iPhone sales growth faltering and the lack of a clear catalyst from AI or AR/VR initiatives, AAPL's premium valuation remains increasingly difficult to sustain.
Persons:
AAPL
Organizations:
Apple, Apple Intelligence, Meta, Microsoft, CNBC, NBC UNIVERSAL
Locations:
OptionsPlay