Apple: Miserable March


  • Apple reported a very weak holiday quarter with sales plunging 5.5%.
  • The tech giant guided to a weak March quarter in what investors expected to be a snapback rebound following iPhone production issues in the December quarter.
  • The stock is incredibly expensive considering the limited growth plans ahead and the valuation disconnect trading at 26x FY23 EPS estimates.

Still life

prospective56/iStock via Getty Images

Despite reporting quarterly results consistent with a business in a deep freeze, Apple (NASDAQ:AAPL) has already rallied back above $150. For some odd reason, the market has cheered paying a premium price for a tech giant

Finviz Chart

Source: Finviz

iPhone sales chart

Source: sixcolors

Earnings estimates table

Source: Seeking Alpha

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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