Apple: Big Risk

Summary:

  • Apple Inc. faces multiple risks from diving deep into the advertising business.
  • The tech giant faces antitrust questions regarding the default search engine deal with Google that places large profits at risk.
  • Apple stock is vastly overvalued at 26x FY23 EPS estimates of $6.

Top view of pen and memo note written with GOOGLE ADS.

Abu Hanifah/iStock via Getty Images

As profitable as Apple Inc. (NASDAQ:AAPL) is as a company, the tech giant is highly reliant on a key deal with Alphabet Inc./Google (GOOG, GOOGL) to generate

Services chart

Source: AppleInsider

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Data by YCharts


Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.


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