CNBC's "Fast Money" Apple Shares on the Move After Latest Results and S&P’s Best Gain Since May 11/2/23
Nov 2, 2023
Apple's latest earnings report and conference call headlines, S&P's biggest gain since April, market rally risks, Starbucks' growth in China, Apple's stock drop after guidance release, potential impact of buy now pay later services on weak consumer, stock discussions and consumer staples.
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Apple's Flat Reaction
- Apple's Q4 results were in line with expectations, marking the fourth consecutive quarter of declining sales.
- However, the stock's flat reaction suggests positive price action given the market rally and Fed's recent moves.
Apple's Growth Drivers
- Apple's active installed base reached record highs, driving revenue durability and visibility.
- This growth, coupled with potential upside from Vision Pro and automotive, justifies a higher valuation.
Apple's Valuation Justification
- Apple's growing active device base and increasing services revenue suggest a sustainable multiple in the low 30s is respectable.
- Apple's strong margins are remarkable, even amidst current market conditions.