BrianZach

Why Apple Stock Is Poised To Go Flat - At Best

Wow, Apple and AAPL have some of the most loyal fans out there. I'm sorry, but not everyone thinks that Apple is the best company and that its stock is going up. Welcome to reality.

Apple has some serious risk associated with it, and it doesn't have the moat to protect it like other tech giants like Microsoft and Intel.

When it comes down to it, Apple's products have replacements. While the company has stayed ahead of its competition in recent years, there it no guarantee that it can stay ahead. If Apple's next products flop, there are a number of hungry consumer electronic companies will take over as the leader.

Apple could still remain on top over in the future, but there is also a good chance that the stock will lose a significant amount of money too. There is no margin of safety.

Five Great Quality Companies: Are They Too Expensive?

It is funny all the defensive comments here. If your stock has a PE over 30, it has a lot of downside risks. When you are buying companies with high valuations, you are speculating on growth and there is no guarantee of that.

It doesn't matter how good the company is, if it can't meet growth expectations, they price will get knocked down.