The stock market closed lower on Thursday as Big Tech stocks tumbled. Apple (AAPL) and TSLA (TSLA) dropped 4% and 3%, respectively, during the session.
Overall, S&P 500 fell 0.2% to 5,937, while NASDAQ slid 0.9% to 19,338.
Tweet of the Day
I agree, Apple $AAPL is overrated and overvalued. Well at least it was.
Here's my Fair Value on the stock on 12/23/24. With a generous P/E of 30 the shares seem worth $222 a share.
Revenue growth was 12% last qtr and 11% 2QtrsAgo.
Note AAPL has a Fiscal year end of Sept.… https://t.co/jOv3hnBOZZ pic.twitter.com/LKfDSXGcn0
— David Sharek (@GrowthStockGuy) January 17, 2025
Chart of the Day
Here is the one-year chart of AAPL as of December 23, 2024, when the stock was at $255.
AAPL’s one-year chart looks impressive. The stock has been hitting new All-Time highs. The Estimated Long-Term Growth increased to 14% from 11% last quarter. That’s bullish!
In last quarter’s earnings call, Apple made the first set of Apple Intelligence features available in US English for iPhone, iPad, and Mac users, starting a new chapter in making technology smarter and more private. Apple Intelligence refers to Apple’s technology that uses artificial intelligence (AI) to make its devices smarter, like improving Siri, suggesting apps, or enhancing photos.
Management stated with the introduction of Apple Intelligence, Apple is beginning a new era for the iPhone and boasted that the iPhone 16 Pro is the most advanced iPhone Apple made, powered by A18 Pro.
Apple’s growth at a low double-digit rate is merely ok. The P/E of 35 is high. Our Fair Value is a P/E of 30, or $222 a share. The stock is $255 this quarter.
AAPL is on the radar for the Conservative Growth Portfolio.