Apple: Fundamentals And Valuations Offer Mixed Investment Story - Downgrade To Hold
Summary
- AAPL's fundamental performance shows mixed signals, with the strong Services expansion negated by the decelerating overall sales - leading to its impacted growth prospects.
- While it may continue generating rich Free Cash Flows while returning great value to its long-term shareholders, the management's FQ1'25 overall guidance seems underwhelming.
- AAPL's continued stock price outperformance has also triggered the premium valuations, with it offering interested investors with a minimal margin of safety.
- These developments underscore why the recent profit taking may have been well justified, with the stock likely to trade sideways in the near-term, similar to historical trends.
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