Is it too Late to Buy Apple Stock? 18 NOW! 5G Coming!

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Well welcome into my favorite new series on the channel called is it too late to buy i’ve done a few of these videos recently i did one on uber stock is it too late to buy uber stock is it too late to buy beyond meat stock is it too late to buy tesla stock dang i was back when tesla’s 380 and that wasn’t that long ago i did one called is it too late to buy facebook

Stock when it was 202 dollars and here today we’re talking about the most profitable company in the world otherwise known as apple corporation this is a stock that is approaching three hundred and twenty dollars a share now it’s over three hundred eighteen dollars a share that is apple stock we’re talking about is it too late to buy apple stock and whenever i

Do one of these videos is it too late to buy it’s always on a stock that’s gone up a bunch and look at the apple stock chart i mean just look at the one year on this one you could pick up the stock for 150 160 dollars a share at this same time last year if the stock price is literally double since that time and keep in mind we’re talking about apple here you know

The most profitable company in the world a massive company over a trillion dollar market cap for it to make that type of move in a one year span is absolutely incredible okay if any of you guys need a refresher on apple which you really shouldn’t okay they have a business where they sell what’s called mac’s okay they’re otherwise known as like personal computers

Laptops things like that they have an ipad business which i’m using an ipad as i do this video right now okay obviously the bulk of their business if you’re thinking about the revenue the big revenue driver the big profit driver for apple it is the iphone business okay that is a granddaddy of them all they also have an apple watch business they have an apple tv

Business they now even have a credit card in the market air pods are obviously huge i have an accessories business and then they have this services business that it’s absolutely growing into a gigantic business for itself as it’s a business is doing you know 10 billion dollars plus now per quarter in revenue not per year per quarter ten billion dollars plus per

Quarter now at this point in time is what the services business is doing so that’s absolutely incredible it continues to roar higher and don’t expect those services revenue numbers to decline anytime soon apples taking services more and more adding more and more services on so the revenue will likely increase in future years for apple when it comes to the services

Business and a lot of that services business it is a very very profitable business for apple so look to the for that to continue to expand and that will help apple continue to expand profitability a services business is absolutely phenomenal for them okay now apple stock this is now a one point four trillion one point four trillion dollar market cap on this company

Absolutely incredible okay now market cap doesn’t tell us a heck of a lot other than you know what the market value is that company as of right now we really like to look at the trailing p and the forward p when we’re trying to figure out like valuation basis we know apple is a great company we know apple customers continue to come back to apple products we know

They have a great management team there we know all that so really when we’re trying to figure out apple stock we’re not trying to figure it out from is this a good business or not we all know it’s a great business the question is is the valuation right okay that’s what we really got to figure out when it comes to a stock like apple ticker symbol aapl so trailing

P on this one nearly 27 forward p of over 21 as of right now okay now apple typically apple typically trades in 11 to 17 pe range i’ve been an on-and-off shareholder of apple for years and i’ve tracked this stock for years now you know at least the last let’s say five to seven years and i can tell you throughout that time apple has historically you know over the

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Past number of years traded in p ranges of 11 to 17 so when we start talking about a 21 to 27 pe range for apple stock we’re definitely talking about a much higher range than what we’ve been used to when it comes to a valuation basis with a stock like apple stock that’s just really high i mean look at that nearly at 27 and over 21 ford p that’s that’s to the highest

I’ve seen for apple since they mean all their huge growth days back when iphone was just a growing beast okay no i always stuck up for apple in regards to i thought it was it was to disrespect i thought you know wall street never gave enough respect to the fact that if you buy an ipad yeah and your ipad breaks gonna buy the next ipad okay you buy an iphone you buy

The next iphone that comes out it’s not like people just kind of trade in and out of these it’s the software the ios that’s what draws people in so people never get credit to the unbelievable business model that apple had there and always thought to deserve to be valued more like a coca-cola stock okay look at some of the coca-cola stocks very overvalued coca-cola

Straight-up is very overvalued right now but it trades at a ford p of twenty five and a half if we look at a stock like pepsi another overvalued company definitely overvalued right now okay but pepsi traits out of twenty four okay once again another overvalued stock and you look at something like apple trades at a twenty one now it is not our job to necessarily say

You know apple should be trading at this valuation these other stocks shouldn’t although you don’t like i said coca-cola and pepsi are overvalued there’s no question about that i would absolutely say apple stock deserves to be trading at a higher for p than a stock like coca-cola or pepsi but there’s not always the way it works out and just because you know those

Stocks are very overvalued doesn’t mean apple deserves to be very overvalued as well but i do like to stick up for apple in that regard when i look at apple the business model in my opinion is pretty much just as safe as a business model you look at something like a coca-cola or pepsi it’s not like people just make a decision to just swap out devices that’s not

The way this works man you use a mac all the time guess what you’re getting for your next computer another mac okay that’s the way this business works okay now apple has something very very big coming for its business here okay that will help the business grow quite a bit when we’re talking about revenues and we’re talking about profitability and that’s gonna be

The 5g iphones now those are gonna come out likely in september at least be shown off we’ll see when it actually gets launched maybe some of them come out in october maybe january we don’t know exactly when the iphones will come out but they’ll likely be shown off in september because that’s the way apple’s done it for the last you know 10 plus years apple every

September they show off the new iphones and you know this coming september should be the 5g iphones you know a lot of the android players are already starting to show off their 5g iphones some are already in the market no we know with one of these technology changes apple doesn’t necessarily be in front of everybody they like to you know let some other players come

Out with theirs see how they do in the market see how interest is then apple comes out with theirs when it’s ready and so if we’re looking at this likely september will be when the 5g iphones come out no i don’t think these these are the initial 5g iphones will do super super amazing i think they’re gonna do very well in the market but i don’t think they’re gonna

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Do super super amazing and the reason being is the price point will be very high for these first 5g iphones if you’re looking at this then you know i got it up here okay so samsung they have a galaxy s 10 5g in the market right now okay the entry-level model you know entry-level memory 256 gigs that sorts of 1,200 bucks and they actually brought that price down

And it’s still $1200 so you’ll definitely get an initial surge of people that get those 5g iphones when they come out you know regardless if it’s a $1200 price point or a $1,500 price point you definitely have a certain segment of the apple consumer base that will definitely get those iphones but if you’re talking about the massive numbers and if you’re talking

About the mass market consumers for apple stock in the united states europe in many markets around asia china and whatnot if you’re talking about those folks upgrading i think that will really come in 2022 rather than 2021 okay so september 2021 is when a 5g iphone should be shown off that will be under $1,000 maybe a $9.99 price point maybe an $8.99 price point

And so that will be big for apple i do not believe apple will come out with a 5g iphone that will start under $1000 on this initial batch i believe you’re gonna have to wait for the september 2021 and then that gets things really really interesting for apple stock in 2022 and i think you could definitely see some really big iphone volumes actually in 2022 because

Once again not everybody can afford a $1500 iphone but if we’re talking $800 now you’re talking much more mass-market so i think if you’re just looking at the next you know 12 to 18 months it’s gonna be you know the start of the 5g cycle and things are really going to roaring in about two to three years from now guys okay you might wonder how the heck do i know

These sorts of things that way no why would i make a prediction like that well i’ve owned apple on and off for years now i tracked this company very heavily and so i generally know what’s going on i also own you know significant stakes in two semiconductor suppliers one named cirrus logic one named sky work solutions that does business with apple so you know i

Have a pretty good understanding no i don’t have any connections inside apple that makes me feel you know why they’ll come out with this iphone in this price point at this time being that i have these investments in this company and i do you know extensive studies on this company you know i can definitely kind of formulate an opinion there okay now if we look at

What analysts are expecting around the stock over the next you know couple years so you know definitely eps is expected to go up in current year in next year up to $15 actually in 2021 revenue is expected to grow from 276 million to 299 million 6% to 8% revenue growth expected over the next couple years so this is a business that will grow over the next couple of

Years there’s no question about that but is this a business that’s gonna grow 15% 20% even a 12% number it doesn’t look like that it looks like apple might be able to get back to growth in like maybe a 5 to 10 percent growth rate which would definitely be attractive but apple is no longer like this fast growing company in the law of large numbers have really caught

Up with apple and even if they come out with a really really successful 5g iphone it’s hard to move the needle in any major way around revenue growth as far as expecting like revenues to grow you know go up 15 or 20 percent it’s just it’s such a big company now that even if a particular iphone generation sells better than the last one it’s still hard to boost those

Numbers up just this is law of large numbers that’s what happens to all companies when they get this big you know especially apple so at the end of the day when i look at this apple stock it’s not very attractive you know what i’ll say it’s not attractive at all to me okay that’s what i’ll say okay an apple stock is not attractive at all to me up around $320 it’s

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Just not or even over 300 in general i mean that that trailing ps at 27 the forward p is over 21 the balance sheet is still good but it’s not as great as it once was okay they still have about a hundred billion dollars in short-term investments in cash they have another 100-plus billion in long-term investments but they do have about ninety two billion dollars

In long-term debt now debt is at very low interest rates but still ninety two billion dollars of debt is ninety two billion dollars of debt so a good balance sheet it’s not the you know smashing great balance sheet that it once was and there was once upon a time i called apple stock the easiest money in the stock market from a risk/reward standpoint and you know

I always gotta look at risk reward and i’m you know i did a video over a year ago and i basically said anything under $170 it’s easy money in apple stock absolutely the easiest money could possibly make i bought apple stock when it made that huge dip back in january of last year five thousand dollars worth i think we made a two thousand dollar profit and a very

Short amount of time with that one in the days of apple stock being the easiest money and the stock market are over in my opinion i no longer look at apple stock as the easiest money in the stock market i gave that title you know six months ago or nine months ago i gave that title over to facebook stock from a risk reward standpoint that’s now the easiest money in

The stock market to make but apple has climbed so much the valuation has risen so much the trailing p has risen so much the four p has risen so much when i look at all that apple is no longer the super interesting stock like it once was when you could pick up these shares for a hundred fifty bucks a year ago or a few years ago like when warren buffett first started

Buying apple stock it was like ninety two bucks ninety five dollars a share one hundred dollars a share when there was all this drama and all i was worried about all iphone sales are gonna be weak in the short term and things like that you know that was that was easy money that was just like like you’re gonna make a lot of money anybody that had any type of long

Term vision you know looking multi years out like it was obvious you were gonna make a lot of money but as i look at the stock today is not very attractive being that’s no longer attractive i can say it is too late to buy apple stock in my personal opinion great company you know but the the valuation there is just not attractive doesn’t mean the stock will stop

Going up from my standpoint looking at the valuation i just don’t think i think it’s too late to have bought the stock i think there was a lot of opportunities you know past years to get these shares for very cheap and now the stocks just kind of fully priced in it’s already starting to price in a lot of the growth when it comes to the 5g iphones and whatnot but

I want to hear your guy’s opinion on apple stock down there in that comment section what do you think you think apple stocks still worth buying at 320 dollars a share or above or do you think you know this is a stock but that’s more of a buy you know below 250 below 200 below 150 i would love to hear from you guys in that comment section as always smash thumbs up

Button if you enjoyed this new series called is it too late to buy thank you for watching and have a great day

Transcribed from video
Is it too Late to Buy Apple Stock? $318 NOW! 5G Coming! By Financial Education

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