This week's Apple trading strategies (12/6-12/10/21)

A place for Apple traders and investors to share their best ideas.

To get things rolling, here are Motley Fool contributors Danny Vena and Jason Hall in a clip released Saturday answering the question "Could This $2.6 Trillion Company Still Have Room to Grow?":

Below: Apple vs. the S&P 500 last week, normalized…

apple investment strategies 12-6-21
Disclosure: Although I am now an Apple shareholder (see Why I bought a share of Apple, my first), I am in no position to give trading advice. Don’t blame me if you drain your IRA doing something you read about here.

See also last week’s trading strategies.

20 Comments

  1. Jerry Doyle said:
    I remember early one morning watching Joe Kernen pontificate when Apple crossed the $500B mark voice his supposition that Apple had become too big to grow anymore. That statement gave me pause since it came from someone in the industry on WS who supposedly knew the subjects of which he covered. Not so, and over the years I learned quickly that I often knew more than many talking heads on the business channels, especially when it came to Apple, and all things Apple.

    Interestingly, Danny Vena and Jason Hall neither mentioned Apple Pay’s financial business and the room for this segment of Apple’s operations to grow, which it fast is doing. Little doubt if Apple comes forth with an Apple car that this opens a whole new industry segment for continued future growth. Apple already provides Apple Care for its products and that opens a whole new industry segment for Apple to offer insurance and maintenance free worry to consumers buying Apple Cars. Talk about one-stop shopping! I purchase my iCar, finance it through Apple Pay, select Apple Care maintenance for my new Apple car along with Apple insurance coverage. One knows these cars will be extremely safe and I suspect highly profitable for Apple to insure since few accidents likely will occur. And we haven’t even touched on the new revenue growth through the Apple Watch once its starts to provide comprehensive medical monitoring for doctors and insurance carriers needing real-time data resulting in increased medical cost efficiencies for that industry.

    No Joe Kernen, Apple still has a long revenue growth runway ahead for years to come.

    7
    December 5, 2021
    • Fred Stein said:
      Upvoted and OMG yes! to finance. Let the imagination run wild. There’s so much financial UX that Apple can address without (or including) cryptocurrencies.

      Adding a friendly reminder that Tim Cook said heath is the big thing,

      2
      December 5, 2021
    • Steven Philips said:
      But Jerry, I’m already blessed with “maintenance free worry!” 🙂

      0
      December 5, 2021
    • Robert Paul Leitao said:
      Excellent reference, Jerry! Joe Kernen holds a masters from MIT in biology. He of all people should know how organisms, including corporate ones, can continue to grow organically!

      0
      December 5, 2021
  2. bas flik said:
    i do not believe in growth stock stories
    no one knows if a company will grow
    why tesla will grow? why snowflake will grow?
    i prefer the certainty of cashflows and buybacks.
    probability of future growth of cashflows is bigger when there is already a big stream of cash to start with.
    without cash its difficult to grow.
    unless you print and issue stock like Tesla and co.
    but then you end up with less ownership as a shareholder
    and a collapse of the stock if interest rates raise
    i like the combination of growth and buybacks.
    the multiple of aapl is high but maybe not in relation to all the money being printed.
    this money printing was not there in 2000.
    every government will collapse now with interest rates like in the eighties
    so they have to keep on printing.
    how much money the chinese government is printing we dont know.
    when i started my company i could save for 4%.
    was really nice extra profit for all the cash we made.
    now i have to pay 0,5% for every 100k in the bank
    so no one wants to hold cash because it cost you money
    where to bring in the end?
    in AAPL

    3
    December 5, 2021
  3. Fred Stein said:
    Oprah is much smarter. She nailed it – “A billion pockets y’all”

    That means most of the people on the planet with money to spend, are in Apple’s ecosystem. More join every day, spending more, and so on.

    Even without all rumored future products and services, AAPL is undervalued.

    2
    December 5, 2021
    • Robert Paul Leitao said:
      Fred: You hit on an important point. Apple’s pace of growth is influenced in part on the pace at which people around the world enter the global middle class. According to the Pew Research Center, roughly 17% of the world’s population was in the global middle class in 2020. The larger the global middle class becomes, the greater the opportunities for Apple to broaden its global customer base.

      1
      December 5, 2021
  4. Robert Paul Leitao said:
    Seriously? Does the US economy have room to grow? Does the global economy have room to grow? If both the US economy and the global economy have room to grow, Apple has room to grow and that’s before considering the growth opportunities available through new and disruptive products and services. If someone is seriously asking the question if Apple has room to grow, they are looking at life from a cell room in a “prison of limits” and not allowing themselves the freedom to see a world full of opportunities.

    3
    December 5, 2021
  5. Hap Allen said:
    Hall: “I think it’s fair to call it an own forever company; it’s just not for me.”

    ? ? ?

    4
    December 5, 2021
  6. Kirk DeBernardi said:
    “Could This $2.6 Trillion Company Still Have Room to Grow?”

    Didn’t that say that at the $1T mark?

    …or even the $1B mark.

    1
    December 5, 2021

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