Apple stock valuation questioned due to stagnant growth in devices, subscription services revenue support

From Nasdaq: 2024-09-13 09:45:00

Apple (NASDAQ: AAPL) maintains its position as the largest company globally, but questions arise regarding its valuation. While sales growth stagnates, Apple’s revenue is largely propped up by subscription services. The latest financial reports reveal lackluster growth in devices like the iPhone, necessitating a reevaluation of Apple’s stock value.

Revenue figures for Q3 FY 2024 show a mixed picture for Apple. While iPad and services sales experience growth, iPhone sales remain flat. An anticipated 13% growth rate in the coming year contrasts with a stock valuation that exceeds the market average. Apple’s financial performance suggests a need for caution among investors.

The release of the iPhone 16 promises new features like Apple Intelligence, potentially enticing consumers to upgrade. However, Apple’s stock trades at a high multiple of earnings compared to industry peers, raising concerns about its overvaluation. With minimal growth expected and fierce competition in the tech sector, investors may seek more attractive investment alternatives.

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Read more at Nasdaq: Is Apple Stock Overpriced? | Nasdaq