Apple Stock Rated as Hold Due to Overvaluation and Headwinds

5 days ago

Speaker

"So, I looked at the valuation and looked at the risks and said that it didn't look like a good situation for Apple. And revisiting that situation right now, I don't see very much difference. Apple has improved its customer value proposition with the latest lineup of iPhones giving consumers a bigger reason to upgrade and switch in their older iPhones. But the headwinds have gotten much worse with the increased geopolitical tension and the valuation is also still stretched because it's trading at a 52-week high. It's trading at $263 a share right now and the 52-week high is $264. The intrinsic value I calculate is $215. So, even applying a margin of safety to the current market price compared to the intrinsic value, the stock looks slightly overvalued. And with all these additional risks, I don't see a reason to buy Apple stock right now. So, I would say no. This doesn't look like a buy. I have Apple stock rated as a hold."

The speaker assesses that despite recent positive news on iPhone sales, Apple stock remains overvalued due to its near all-time high price, significant headwinds like geopolitical tensions, and supply chain risks. With an intrinsic value estimate of $215 versus a trading price of $263, the speaker concludes that there is no compelling reason to buy Apple stock right now and thus rates it as a hold.

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