META - Apple: Relatively Immune From AI Disruption
2024-05-29 04:26:30 ET
Summary
- The recent genAI gold rush has the potential to shake up the existing corporate tech hierarchy, but Apple should emerge unscathed.
- Apple's business is not directly impacted by the introduction of knowledge-on-demand apps like ChatGPT.
- The company's strong market position, user stack advantages, and services distribution leverage insulate the company and make it an attractive investment opportunity.
- Trading at a reasonable price, we think AAPL looks like a 'Buy'.
Apple ( AAPL ) has come a long way in a short time.
We first covered AAPL in June of last year, when we rated the stock a 'Sell' on concerns about the company's expensive looking valuation and flagging growth prospects:
We then re-iterated this view when the stock rejected a breakout to higher prices in the fall of last year.
While the stock hasn't materially declined in that time, AAPL shares have massively underperformed the market, up 0.7% vs. the S&P's performance of 20%+....
Apple: Relatively Immune From AI Disruption