Apple Stock Analysis - is Apples Stock a Good Buy Today - Best Investments 2019 | Summary and Q&A

TL;DR

This video analyzes Apple's stock and uses a sum of the parts valuation technique to determine a fair value for the stock.

Key Insights

• ❓ iPhone revenue has dominated Apple's overall revenue, but growth and volatility in the market should be considered when valuing the stock.
• 🙈 Services, including the iTunes store and upcoming releases, have seen impressive growth and are expected to contribute further to Apple's revenue.
• 💗 The Mac segment, although mature, is still growing and could benefit from its premium products with better profit margins.
• 🖐️ The iPad segment has been declining, but efforts are being made to stabilize and it plays a crucial role in the overall Apple ecosystem.
• 💪 The wearables segment has experienced strong growth and should contribute significantly to Apple's revenue.
• 🥳 Using a weighted average price-to-earnings ratio, the video suggests a fair value of $230 per share for Apple stock.

Transcript

Hi I'm Jimmy in this video we're looking at Apple's stock ticker symbol AAPL to see if we think that Apple stock is a good buy at the current price. We're gonna start by going through some of the products and some of the product segments and then we're going to try to value the stock in a somewhat unique way. And also I'm super excited to announce ... Read More

Questions & Answers

Q: How has the longer upgrade cycle for iPhones affected Apple's revenue?

The longer upgrade cycle has resulted in iPhone users holding onto their phones for a longer period of time. Apple introduced the Apple trading program to incentivize users to upgrade their phones. This, along with financing options, has helped sustain revenue growth.

Q: What is the potential impact of the China market on iPhone sales?

Despite volatility, the China market has shown growth in iPhone sales. While it's uncertain, the overall trend seems to be heading in the right direction. Continued volatility is expected, but iPhone sales in China should contribute to Apple's overall growth.

Q: How has the services segment contributed to Apple's revenue?

The services segment, which includes the iTunes store and upcoming releases like Apple Arcade and Apple TV Plus, has experienced impressive growth. The introduction of these services as subscription-based models is expected to further drive growth in this segment.

Q: How has the wearables segment performed for Apple?

The wearables segment, consisting of products like AirPods and Apple Watch, has seen significant growth and is now almost the size of a Fortune 50 company. With additional accessories and upcoming releases, this segment is expected to continue experiencing growth.

Summary & Key Takeaways

• The video discusses Apple's various product segments, including iPhone, services, Mac, iPad, and wearables.

• It highlights the potential growth and volatility in the iPhone market, as well as the loyalty of iPhone users and the impact of the Apple trading program.

• The video also explores the growth of Apple's services segment, upcoming releases such as Apple Arcade and Apple TV Plus, and the declining revenue in the iPad segment.