Apple: Arms Race Laggard

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

Summary

  • 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.
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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

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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.


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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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