Apple: Arms Race Laggard

Jan. 19, 2022 8:07 AM ETApple Inc. (AAPL)GOOG, GOOGL, MSFT113 Comments


  • Apple has started to under spend on R&D and CapEx.
  • The tech giant is spending on average $15 billion less than the other tech giants, or the equivalent of a $1 hit to EPS.
  • The stock is cheap at 30x EPS targets while the company needs to spend more or be faced with slow growth rates.
  • Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio. Learn More »

The Apple Computers Store in Sydney Australia

PhillDanze/iStock Editorial via Getty Images

As the stock market turns volatile on the fears of rising interest rates, Apple (NASDAQ:AAPL) investors have to face a new dynamic for the stock. The company faces a more difficult economic backdrop while the

AAPL vs FB vs GOOG vs MSFT R&D spending
Data by YCharts

AAPL vs FB vs GOOG vs MSFT R&D spending as percent of revenue
Data by YCharts

AAPL vs FB vs GOOG vs MSFT Capex
Data by YCharts

PC Shipments 2021

PC Shipments 2021

Source: Canalys

If you'd like to learn more about how to best position yourself in under valued stocks mispriced by the market during 2021, consider joining Out Fox The Street

The service offers model portfolios, daily updates, trade alerts and real-time chat. Sign up now for a risk-free, 2-week trial to start finding the next stock with the potential to generate excessive returns in the next few years without taking on the out sized risk of high flying stocks. 

This article was written by

Stone Fox Capital profile picture
Out Fox the market with misunderstood, high reward opportunities
Stone Fox Capital Advisors, LLC is a registered investment advisor founded in 2010. Mark Holder graduated from the University of Tulsa with a double major in accounting & finance. Mark has his Series 65 and is also a CPA.

Stone Fox Capital launched the Out Fox The Street MarketPlace service in August 2020.

Invest with Stone Fox Capital's model Net Payout Yields portfolio on Interactive Advisors as he makes real time trades. The site allows followers to duplicate the model portfolio in their own brokerage accounts. You can find the portfolio and more details here:

Net Payout Yields model

Follow Mark on twitter: @stonefoxcapital

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.

Recommended For You

Comments (113)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.