Apple: $500 Billion Problem

(7min)

Summary

  • Apple’s $500 billion U.S. investment plan is largely a reshuffling of operations with minimal focus on innovation, especially in AI.
  • Despite hiring 20,000 new R&D employees, Apple's spending is not significantly boosting innovation or competitive advantages.
  • The stock trades at rich valuations despite limited growth, with a P/E ratio of 33x FY25 EPS targets and minimal to no free cash flow growth.
  • Investors should consider selling shares at premium levels due to Apple's lack of meaningful innovation and excessive stock price.
  • Looking for more investing ideas like this one? Get them exclusively at Out Fox The Street. Learn More »

ERROR 500. Yellow warning tapes

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Apple, Inc. (NASDAQ:AAPL) just announced what sounds like a massive investment in the U.S. and Apple Intelligence. What the tech giant actually announced was a shuffling of operations and higher expenses, with little focused on innovation. My

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Stone Fox Capital is an RIA from Oklahoma. Mark Holder is a CPA with degrees in Accounting and Finance. He is also Series 65 licensed and has 30 years of investing experience, including 15 years as a portfolio manager.

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