Barron’s is bullish on Apple

From Jack Hough’s cover story, Apple’s Golden Moment:

After a 50% burst in the shares this year, will the $1 trillion figure mark a top? After all, the latest iPhone’s sales will fade next year, and the stock market is pricey. Many of the best smartphone markets look saturated or, in China’s case, tightly contested. Apple is also capable of self-induced stumbles, as Barron’s pointed out just last week (“Software Problems Bug iPhone Users”). For those who look for historical precedents, there’s Apple’s sumptuous $5 billion campus, bringing to mind ambitious buildings from Woolworth, Chrysler, and Sears that foreshadowed an eventual fall.

We don’t think the peak is near. Apple seems to be escaping its product supercycle peaks and troughs to post more-consistent year-to-year growth. That could have a lasting effect on the stock’s valuation, based on what Wall Street pays for other steady growers. Barron’s has backed Apple shares in recent years, starting at $76, split-adjusted, ahead of the move to plus-size phone screens (“For Apple, Bigger Is Surely Better,” March 22, 2014). The shares have returned 147% since then, versus 56% for the Standard & Poor’s 500.

My take: As bullish on Apple as I’ve ever seen Clarence Barron‘s weekly newspaper.

UPDATE: I enjoyed watching Downtown Josh Brown (@ReformedBroker) go on and on about the Barron’s cover in Shut up already.

4 Comments

  1. Gregg Thurman said:
    Since 1997 AAPL has traded in an upward channel. Yes we has the big dip in 2008, but that had nothing to do with Apple.

    So we’re looking at a 30 year trend. Apple/AAPL has been a good (some would say GREAT)investment because Apple has this very long vision. A vision that requires technology not available today. Apple releases products in line with that vision when the technology makes it possible.

    In recent years the people Apple relied on for future technology has failed to move as fast as Apple wants, ergo, Apple’s custom, proprietary chips, screen technology, case materials, camera technology and of course OSS.

    Contrary to popular mythology, Apple is not a one trick pony. Granted the iPhone dominates Apple’s revenue streams, but since the iPhone Apple has introduced several more revenue streams that account for about 30% of total revenue. Imagine Apple/AAPL without iPad, Apple Watch, Air Pods, iTunes Stores, Apple Music et al.

    In my opinion Apple’s most important asset is its vision and its steadfast focus on it. Everything else investors like about Apple/AAPL Emirates from that.

    The 30 year track record of that steadfast vision will carry Apple far into the future, momentary dips notwithstanding. Claims/forecasts of Apple’s demise are the product of those with no vision or understanding of Apple. Why, oh why, would one trust their monies to someone like that?

    0
    December 24, 2017
  2. Gregg Thurman said:
    Christmas gift to myself. Investing exclusively in AAPL options, my portfolio is up 977% YTD on 13 trades, 2 of which were il-advised. I’m expecting similar returns during 2018, regardless of what the “experts” say.

    2
    December 24, 2017
  3. Ken Cheng said:
    “bringing to mind ambitious buildings from Woolworth, Chrysler, and Sears that foreshadowed an eventual fall.”

    And the common theme between the Woolworth, Chrysler and Sears Towers/Buildings is that they were all at the time of completion the tallest buildings in the World. Monumental in the extreme. And, as we know, Apple Park is the exact opposite. Only 4 stories tall, it hides behind its landscape. People have to climb onto the roof deck of the Apple Store to even get a half-decent look at it. Where’s the angst that Amazon is soon to build their 2nd HQ for $5B. Have there been any articles about Amazon’s impending doom? No, didn’t think so. Only Apple. Strange how that works out.

    1
    December 24, 2017

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