Buy and hold or Sell AAPL (Apple Inc.) stocks (forecast and valuation)?

January 3, 2019 4 By swedendivin
5 min read
Apple smart watch

Apple smart watch


Lets first read what Apple CEO Tim Cook have to say:
“We believe that the economic environment in China has been further affected by the growing trade tensions with the United States. When the climate of growing uncertainty hovered over financial markets, the effects also appeared to land on the consumers, with declining traffic in our stores and our partners in China as the quarter progressed. Market data has also shown that the decline in the Chinese smartphone market has been particularly strong, “writes Apple CEO Tim Cook in the letter to investors.

 



Warren Buffet:
Warren Buffets investment company Berkshire Hathaway is clearly affected by Apple’s profit warning due to its large holding. With a fall in share prices of over 7 percent, this indicates that the holding is down $ 2.8 billion. Reports CNBC. Apple is Berkshire Hathaway’s largest holding and constitutes 21 percent of its portfolio, which means that the fall in prices will affect returns in quite big percentage terms.

However, Warren Buffett has previously said that he would like to see the Apple stock fall to buy more, according to Reuters. He sees Apple as a consumer stock rather than a technology share, as many feel they have to buy Iphones. Well lets wait and see if he still belives in his stockpic.

 



Some of my other thought about Iphone:

-they have expensive products compared to the competitors. And the competitors are getting very close if not already as equal in quality as Apple. If people get less money in the household trust me they won’t buy the more expensive Iphone.

+They are extreme good at getting in their products on the market. They also have good variety of products

-From what I have hear from my Iphone colleagues. The Iphone need regular updates which makes them slow. They also need new chargers when u buy new Iphone that makes the consumers angry and of course the already high price for Iphones.
 

+W. Buffet believes Apple is an consumer brand because people need Iphones just like they need clothes.

-Apple’s biggest profits comes from sold phones. Around 56% of Apple’s sales are Iphone. And now they stop reporting the amount of sold phones. Why it that? Do they think it’s going to decline in the future even more?

+Apple have got a lot of money. They could buy the whole Finland and half of Sweden if they wanted to! Apple points out that the company’s profitability and cash flow remain strong and Apple expects to have around $ 130 billion in net cash at the end of the past quarter.

Service is getting more profitable. Could be a big plus here but there is another side of this. Do you remember when Nokia was in the late stage of getting overrun by Apple? Nokia started to rely more on service and became less innovative. This made them disappear from the mobile market.

Goldman Sachs:

Target price for Apple is cut to $ 140 from earlier $ 182 today. In the banks analysis, Goldman Sachs compares the state of Apple with Nokia’s challenges in the last decade, relying on mobile updates when the market matured. Apple competed Nokia with the launch of its groundbreaking iPhone.

 


I dont own any APPL shares and I dont own an Iphone. My other half do own an Iphone buy when I ask here if she is going to buy a new Iphone she said no. Its to expensive. I belive Warren B didint make a good stock pick. This is not a phone u need to have. If you are short on money I dont think it as hyped as it was before to throw everything you got on an Iphone. What do you think? Fell free to comment.


 


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