No doubt by now you’ve heard me state that I’m cautious of techs’ high prices, but in Apple’s case, Rob Arnott who founded Research Affiliates, a firm which has $145 billion under management, disagrees.
While Apple is currently up 60% vs the Dow which is up 5%, when comparing FAANG stocks it was only just overtaken by Amazon at +68%.
Apple is one of the most owned stocks in the world, and with the recent release of 5G devices and a global move to working from home, demand for their macbooks has gone up. What’s got people talking recently is a report that Apple will invest $3.6 billion in Hyundai-Kia to bring an Apple Car into existence.
What’s interesting is looking at Apple’s P/E ratio in comparison to other tech stocks. Apple sits at 35 times estimated earnings compared to Amazon’s 58 times, Netflix’s 57 times and Tesla’s 204 times earnings. A comparatively good deal.