ozgurdonmaz
My previous article on Apple Inc. (NASDAQ:NASDAQ:AAPL) was issued in early February this year, when I made the case to avoid going long the stock. The reason was simple – too high multiple relative to the underlying growth. Back then the P/FCF multiple stood at ~29x, while the China sales were deteriorating and the only source of next growth wave was Vision Pro, which, in my opinion, inherently lacks traction in mass markets. Meanwhile, I also emphasized the danger of shorting Apple given two aspects (1) AAPL’s presence in the Magnificent 7 bag and all of the major equity indexes out there, where the passive flows do not care that much of multiples and (2) the Company’s cash balance in conjunction with strong free cash generation profile.
On a YTD basis, Apple has managed to deliver similar returns to those of the market as measured by the S&P 500 and Nasdaq-100. In fact, all of the positive returns from Apple have been…
