Apple isn't worth its near-$3 trillion valuation - and its stock has only surged this year because it's a safety play, CIO says
isn't worth its current near-$3 trillion valuation - but is pulling in investors' cash all the same because it's a safety play, according to Short Hills Capital Partners' CIO who doesn't own any shares in the company.
Steve Weiss, who manages money for billionaire Carolina Panthers owner David Tepper's family office, said Tuesday that the underlying fundamental numbers don't support the tech giant's surge this year.CNBC's"Halftime Report""Part of it is sour grapes that I don't own it – but frankly, it just doesn't deserve the multiple that it has on the fundamental financial performance," he added.
Apple shares have jumped 42% in 2023, with investors piling into a narrow group of mega-cap tech stocks that have been responsible for nearly all the benchmarkThat surge has lifted the company's valuation from $2.1 trillion to $2.9 trillion, according to data fromThe tech conglomerate's second-quarter earnings report, published May 4, showed revenue falling 3% to $95 billion year-on-year, dragged down by lower iPad and Mac sales.
Apple's earnings-per-share also fell from $1.88 to $1.52 quarter-on-quarter – and analysts expect that figure to slip to $1.19 for the three months ending June 30, according to Refinitiv. For Weiss, those metrics suggest that the stock's main appeal to investors is as a safety play – meaning it's expected to deliver steady, market-beating returns in times of economic uncertainty.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Apple is trying to trademark a very simple image of an appleSwiss farmers have used an image of an apple in their logo for decades. Apple, the almost $3 trillion corporation, is now suing them.
Read more »
2024 CIO and Technology Executive Survey
Read more »
Enjoy Apple perks for less with $52 off this refurbished iPad Mini 2You know what they say about an Apple deal a day…
Read more »
Apple execs explain why watchOS 10 still lacks third-party facesApple execs were questioned about the possibility of third-party watch faces on the Apple Watch running watchOS 10 in an interview.
Read more »
Metropolis TV Show Canceled From Mr Robot's Sam Esmail & Apple TV+Mr. Robot Sam Esmail had been working on an Apple TV remake of Fritz Lang's 1927 film Metropolis but it has been shut down permanently due to the writer's strike.
Read more »
Apple Restricts Workers from Using All External AI ToolsApple has recently imposed restrictions on the use of external artificial intelligence tools, including ChatGPT, among its workforce as it focuses on developing its own AI technology.
Read more »