• AAPL appears expensive at about 34× earnings; avoid chasing it at this valuation, and reassess if the multiple falls into a more attractive range.
• Monitor iPhone demand, services growth, and whether higher R&D spending produces successful new products before considering a purchase.

Apple (AAPL)

• The speaker called Apple expensive, citing a valuation of about 34x earnings and saying they were not willing to pay that multiple; they also said they would not pay a multiple in the high 20s.
• The discussion acknowledged positive operating results:
  • Products grew substantially, and revenue growth was described as about 12%.
  • Services growth slowed somewhat, while iPad and wearables were weaker.
  • The speaker said recent revenue growth had improved over the past five or six quarters.
• The speaker questioned how durable Apple’s growth will be, asking where future growth would come from. They noted that consumers may be tiring of the iPhone and that new devices or a different way of using technology could challenge Apple, though they did not identify a specific competitor or product.
• The speaker described Apple as potentially slow-moving in technology and uncertain about its use of AI. They also noted rising R&D spending as unexpected.
• Apple’s financial position was viewed favorably: the speaker called its financials clean and discussed its substantial cash balance. They also questioned how the company would use its cash, noting that it does not make many acquisitions.
• The speaker said Apple’s results still looked generally good, but emphasized that technology can change quickly and that one weak product or a competitor’s new product could hurt the company.

Takeaways

• The discussion presents a mixed view: solid recent growth and strong finances, offset by concern that the valuation leaves little room for uncertainty.
• For investors considering Apple, the key issue raised is whether future products and services can sustain growth at a valuation the speaker viewed as too high.
• Monitor iPhone demand, growth in services, performance in iPad and wearables, and whether increased R&D leads to products that support future growth.