10 Stocks Market Experts are Talking About These Days

3. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Funds Investors: 158

Gene Munster from Deepwater Asset Management said in a recent program on CNBC that Apple Inc. (NASDAQ:AAPL) delay of Siri update was a disappointment for him but he still believes the company will benefit from the AI features and updated Siri launch down the road.

“I think the biggest day is coming, and ultimately, this has been a disappointment in terms of the rollout of Siri. It’s as big of a disappointment as I’ve seen in covering and investing in this company for over 20 years. A one-year delay on something so critical—I don’t want to pile on to the naysayers about where this product can ultimately go. But to answer your question, as we stand here today, it’s a very different place than I thought we would be back at WWDC.”

The much-awaited AI catalyst for Apple stock may never arrive. Many analysts believe just a few AI apps would not be enough to trigger a broader upgrade cycle for iPhone. Apple is dealing with currency headwinds as the stronger US dollar is expected to reduce top-line growth by 2.5% next quarter. For Q2 FY2025, management expects overall revenue to grow in the low to mid-single digits. Apple’s stock is trading at a premium valuation, with a price-to-earnings ratio of 39-40x, a price-to-free-cash-flow ratio of 33-34x, and a PEG ratio exceeding 3x. Upcoming quarters would be difficult for Apple and its current valuation is not justified.

Columbia Seligman Global Technology Fund stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q4 2024 investor letter:

“The fund maintained a position in Apple Inc. (NASDAQ:AAPL) throughout the quarter through the release of the company’s new iPhone 16 in September. Company leaders were excited about the release of the new model, as this is the first model that will feature enhanced AI capabilities through the Apple Intelligence features. Sales for the first few weeks in October and November trailed behind year over year sales from the iPhone 15, as availability of Apple Intelligence was not compatible with all iPhone models. Apple announced a partnership with OpenAI that has allowed the integration of ChatGPT into the Apple ecosystem, separate from the core Apple Intelligence features. This partnership highlights continued progress from Apple to introduce AI capabilities into its products and we expect the iPhone 17 to have even more expansive AI capabilities, increasing potential demand for the new model that is on track to be released in 2025.”