Apple Inc. (NASDAQ:AAPL) is slated to become the first trillion dollar public company and it won’t take much from here. It has a clientele base who are absolute fanatics about its products and they don’t mind over paying for it.
I do have bones to pick. First is with the current leader. Tim Cook kept the AAPL stock train on the rails but that’s about it. Since Steve Job’s passing, it remains an iPhone company. Innovation has been lacking, except when it comes to the financial engineering aspect. Debt went from zero to $100 billion quickly.
Is AAPL Stock Really Worth a Bet?
It does have a lot of cash, but just because rates are low doesn’t mean I should burden myself with debt. Especially when I am not putting it towards generating new growth. When Amazon.com, Inc. (NASDAQ:AMZN) issues debt, it’s because it needs to enter new markets. The company just did it to buy Whole Foods.
By now, you might be upset because I’m not worshiping at the Tim Cook altar, but this is nothing against AAPL stock. It is an awesome company and it has a rosy future. Therein lies my opportunity to go long today, even if it is near its all-time high.
Being as high as ever is not the same as saying it’s expensive. From a valuation perspective, AAPL stock has a price-to-earnings ratio one third smaller than Microsoft Corporation (NASDAQ:MSFT) and half that of Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL). So there is no doubt that I am investing in value today.
Technically, the story is a little different. Investors are uneasy at risking $175-per-share to buy a stock when it’s at an all time high. It is natural to think that there could be slightly better entry points in the near future.