The Trust Layer for Market Analysts

The analyst discusses Apple's share price performance over the last month, driven by enthusiasm for the new iPhone lineup and early order data. He notes that Apple is trading near its most expensive valuation in the past year with a forward P/E of 33, the same as at the start of January 2025. The analyst had previously rated Apple as a hold due to risk versus reward. Increased trade barriers are troubling given Apple's manufacturing outside the United States. CEO Tim Cook's efforts in obtaining exclusions and special treatment regarding imports are acknowledged. The analyst thinks the company faces increasing tariff issues in India and is expanding its manufacturing from China to India. Analyst claims those high tariff rates are changing very fast. Despite a strong iPhone lineup, higher average selling prices are expected to boost revenue and profitability, enabling an upgrade cycle, but the electronics sales boom in 2020-2021 may not continue. He believes that the current valuation is rich considering the risks. A DCF valuation suggests a fair value of $212.97, compared to the market price of $256.48, which implies the stock is slightly expensive. Tesla is mentioned as super expensive at the current prices so this analysis claims that there are other better large cap tech companies to buy like meta, microsoft, alphabet and nvidia.