Ben Sparham's avatar
$158.7k follower assets
๐™„๐™จ ๐™ฃ๐™ค๐™ฌ ๐™ฉ๐™๐™š ๐™ฉ๐™ž๐™ข๐™š ๐™ฉ๐™ค ๐™—๐™ช๐™ฎ ๐˜ผ๐™ฅ๐™ฅ๐™ก๐™š ๐™จ๐™ฉ๐™ค๐™˜๐™ ? ๐Ÿ“ˆ

First, let us consider the positives of investing in $AAPL . The company has a strong track record of innovation, with products such as the iPhone and iPad revolutionizing the technology industry. This innovation has translated into consistent revenue growth, with Apple reporting record quarterly revenue in its most recent earnings release.

Additionally, Apple has a loyal customer base that is willing to pay a premium for its products. This pricing power allows the company to maintain high profit margins and generate significant cash flow. Apple has also been returning capital to shareholders through share buybacks and dividends, indicating a commitment to shareholder value.

However, it is important to also consider the risks associated with investing in Apple. The company's reliance on the iPhone for a significant portion of its revenue means that any weakness in the smartphone market could have a negative impact on its financial performance. Additionally, Apple faces increasing competition in the technology space, particularly from Chinese competitors such as Huawei and Xiaomi.

Furthermore, Apple's heavy reliance on its supply chain in China exposes the company to risks related to geopolitical tensions and trade disputes. These risks have been particularly relevant in recent years, with the US-China trade war and the COVID-19 pandemic disrupting global supply chains.

In conclusion, while Apple presents an attractive investment opportunity in many respects, it is important to approach the investment with a balanced perspective. The company's track record of innovation, pricing power, and commitment to shareholder value are all positive indicators. However, investors should also be aware of the risks associated with the company's reliance on the iPhone, increasing competition, and supply chain risks.

P/E = 24.7
P/FCF = 19.5
ROC = 54.4%
Current Ratio = 0.94
Dividend Yield = 0.62%

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Joey Hirendernath's avatar
@bensparham was there anything specific in the news that prompted this question?
Ben Sparham's avatar
@joeyhirendernath there has been some talk of Apple moving away from China soon possibly and also itโ€™s pretty much a stock that most people either hold or want to so I thought I would give some balanced thoughts on it :)
Nathan Worden's avatar
I wonder if it would even be possible for Apple to completely remove their supply chain from China. I know they're trying to bring more parts of it to the US, but to completely exit China would be quite hard.
Ben Sparham's avatar
@nathanworden Yes I agree. I do not think completely moving is there best bet but I guess they are maybe trying to reduce just how much exposure they have there
Nathan Worden's avatar
@bensparham I guess incrementally moving away from China will be impactful over time. I heard that Vietnam is one of the countries they might move into more.
Ben Sparham's avatar
@nathanworden interesting choice in Vietnam. I guess time will tell how it plays out

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