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Apple (NASDAQ:AAPL) gained a massive sugar high as the economy opened up in 2021 which led to excellent year-on-year growth numbers. It was also aided by the next iPhone upgrade cycle through the launch of
Apple Faces A Double Whammy Of New Challenges
Summary
- Apple showed excellent year-on-year results in 2021 as it gained favorable tailwinds due to the opening up of the economy after the peak pandemic phase passed.
- Apple also gained a good advantage as 5G iPhone led to more upgrades by customers.
- The company will face tougher comps in the next few quarters due to which the year on year growth will be very modest.
- Apple stock has performed poorly during the low revenue growth phase of the company.
- Apple is already trading at twice its historical average PE which should limit bullish run in the near term.
I have worked in the technology sector for over 4 years. This included working with industry stalwarts like IBM. I have done my MBA in finance and have been covering various blue chip stocks for the past 6 years. Having hands-on knowledge in the technology sector has helped me gain valuable insights into the ups and downs of this sector and predict winners and losers more accurately.
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