Apple's stock has dropped 12% due to poor growth, expensive valuation, and better tech investments.

From Nasdaq: 2024-08-17 18:45:00

Apple’s stock dipped 12% off its 2024 high last week, but its growth has been poor due to struggles with sales and revenue. Even with its services division providing some stability, the stock is expensive at 32 times forward earnings estimates.

Investors holding onto Apple for its generative AI product are hopeful for a potential upgrade wave, but there are better tech investments like Microsoft and Meta Platforms with stronger growth. Apple’s premium valuation is not justified, making it a risky investment compared to other companies.

The Motley Fool Stock Advisor team did not include Apple in their list of 10 best stocks to buy now, signaling potential for better investment opportunities elsewhere. Investors should consider the track record of Stock Advisor’s picks, like Nvidia which saw huge returns following a recommendation in 2005.

Keithen Drury, who has positions in Meta Platforms, Randi Zuckerberg, and The Motley Fool all have positive views on Apple, Meta Platforms, and Microsoft. Investors should make informed decisions as the views expressed here may not reflect those of Nasdaq, Inc.



Read more at Nasdaq: 1 Stock I Wouldn’t Touch With a 10-Foot Pole, Even After the Market Sell-Off Dropped Its Price