With a market cap of over 1.3T, which is more than the entire GDP of Mexico, Apple is the most valuable company in the world as of writing. Apple deserves it though, and is worth some of this, but not all of it. Its valuation is mind boggling when thought about how much money $1,300,000,000,000 is. But being such an outperformer may set it up for failure. I think Apple may have good results for the fourth quarter, but may get shut down at $325-$335 range due to a lack of buyers at such a high price. Every run cannot last forever, and there needs to be a resistance to support flip, where Apple tests the resistance that it broke as support. This does not mean it needs to comes down all the way to $215, but it should drop considerably after potential first quarter disappointment. Therefore this stock is a longer term short than a long, as it is over priced, but not as badly as some in the market right now.
I hope I made good use of your time today! That will conclude this Apple analysis.
As always friends, I wish you good luck trading! And thank you for supporting me.
Indeed, Apple has had an amazing run. Do you remember in 2018, when it touched $200 and dropped to around $155; it happened so fast- just like what could happen here. Holding a significant amount going into earnings is just gambling IMHO
PhilippeDelpCFA
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@dvran, Not really because whether you hold it at 200 or 155 it is at 320 today so it is a more than decent return for a safe stock !!
PhilippeDelpCFA
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I am sorry to say that its valuation is around 20-25 p/e depending you use historic or forward so it is much less expensive than a lot of unproven tech stocks or even Amazon or Netflix at around 80-90
Considering the amount of cash it is holding you get a fair buffer on the downside and real valuation for the business ex Net cash is even less , so never mind it is 1,4 trillions just mind how much Cash it is generating and will generate for the rice of share you are buying
hungry_hippo
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It's gonna explode when the new 5G phones come out this fall, and take all of the indices with it since the market cap is so high. If anything, it's setting up for a double peak like 2012. I wouldn't short this until next year after the 5G phone buying peak is over.
Also, this is an options trader's wet dream or worst nightmare (for shorts). See my post.