AAPL - Apple: AI Euphoria Is A Selling Opportunity
2024-06-27 08:30:00 ET
Summary
- The introduction of Apple Intelligence has triggered a sharp rally in AAPL stock, which has broken out to new all-time highs in recent weeks.
- While Wall Street analysts are raising price targets - chasing Apple stock higher - based on AI potential, but consensus estimates for revenue and EPS are largely unchanged!
- With a trading multiple expansion at the heart of Apple's rally, I think the long-term risk/reward for AAPL stock is deteriorating.
- Warren Buffett is selling aggressively, and our valuation model predicts a downside of -45% for AAPL stock. Hence, I continue to view AAPL as a tactical "Sell". Read on to learn more.
Introduction
On the back of announcing the addition of Apple Intelligence to its ecosystem at the 2024 WWDC event on 10th June, Cupertino tech giant Apple, Inc. ( AAPL ) has seen its stock break out to new all-time highs:
Apple: AI Euphoria Is A Selling Opportunity