Big Tech Stocks: AAPL
Everyone I know has an iPhone — even if Android dominates the market, there are still plenty of iOS devices out there. And I didn’t think the company could go beyond the iPad, but now we have the iPad Air. AAPL went from being the ugly stepsister to being the next “must have” product. I want to be with innovators.
AAPL has $140 billion in net cash and investments or $144 per share, giving it an effective trading price of $400. Although EPS is slated to grow 10% for the next couple of years, analysts have long-term growth at 14.3%, and AAPL stock trades on 2014 earnings at a P/E of 9.5, so it is also fairly valued.