• 7 hours Another Major Car Maker Is Backing Hydrogen
  • 1 day Are Americans Finally Sold On Soccer?
  • 1 day Is The Tech Bubble About To Burst?
  • 2 days Coronavirus Could Cost Tourism Industry $80 Billion
  • 2 days What Web Traffic Trends Can Tell Us About The World
  • 2 days Miners Face Greater Headwinds
  • 3 days Boris Johnson Proposes Billion Dollar Bridge To Northern Ireland
  • 4 days Goldman Slashes Oil Price Forecast By $10
  • 5 days Tesla Raises $2 Billion In Share Selloff
  • 6 days What The T-Mobile Takeover Of Sprint Really Means For Markets
  • 6 days The U.S. Has Charged Huawei With Racketeering And Conspiracy
  • 6 days How Hydrogen Could Become The Fuel Of The Future
  • 7 days Millennials Can’t Retire, But They’ll Still Have To Help Their Parents
  • 7 days This Gold Miner Just Increased Its Dividends By 40%
  • 7 days Airbnb IPO Under Threat As China's Economy Drags
  • 8 days The Infamous Equifax Hack Just Became A National Security Issue
  • 8 days BHP Takes The Crown As World’s Top Copper Miner
  • 8 days Tesla Reopens Chinese Factory After Coronavirus Scare
  • 9 days Armed Troops Storm El Salvador’s Parliament
  • 9 days Is A New Housing Bubble Forming?
Is Tesla Heading To $1,000?

Is Tesla Heading To $1,000?

Tesla’s stock has surged over…

This Gold Miner Just Increased Its Dividends By 40%

This Gold Miner Just Increased Its Dividends By 40%

Barrick Gold posted a better-than-expected quarterly profit and…

Tesla Raises $2 Billion In Share Selloff

Tesla Raises $2 Billion In Share Selloff

Tesla stock is volatile in…

Tom Kool

Tom Kool

Writer, Safehaven.com

Tom majored in International Business at Amsterdam’s Higher School of Economics, he is now working as news editor for Oilprice.com and Safehaven.com

Contact Author

  1. Home
  2. Investing
  3. Stocks

Last Chance To Buy Apple Before 2020 Run

Apple Stock

Apple stock right now is trading almost at its 52-week high, and those who saw the tech giant for what it was--not a phone--are being vindicated.  There may be even more lucrative vindication on the way for 2020. 

Right about now, there will be a lot of regret for anyone who sold Apple stock earlier this year when it started to rally. That rally never stopped, and Apple soared 86% by the end of 2019. 

Some analysts are even betting it will hit nearly $400 this year. 

Tech analyst Gene Munster, founder of Loup Ventures, is one of them, telling CNBC’s “Trading Nation” earlier this week that “fundamentals” and “multiples” could render Apple worth $350 or $400 over the next year.

“If you look at Apple’s valuation in the current earnings multiple, it’s still low relative to other tech companies. If you apply a Facebook multiple to Apple stock, it’s a $400 stock,” Munster told Trading Nation

Citi analyst Jim Suva also sees a continued surge, has a $300 price target on Apple--based on watch sales in Q1 2020, which Suva said would come as a “surprise” to investors. 

Indeed, Apple’s October earnings showed a nice sales volume for wearables, including watches and AirPods, but these are as fleeting as the iPhone. 

Related: The Free Money Bubble Is About To Burst

Apple hasn’t been about the iPhone for a while now. And the naysayers earlier on thought the rally would end with the iPhone. SafeHaven has pointed out in the past that Apple isn’t an iPhone story anymore, but nor is it really about wearables. It’s about services, and while late 2019 saw the debut of Apple+ streaming, but 2020 will be decisive as Apple throws up a challenge to the big dogs in the streaming war, including Netflix and Disney. 

So, you can bet on Apple for the wearables in the short-term, but in the long-term, look to services, which includes Apple+ streaming, iTunes, the App Store, the Mac App Store, Apple Music, Apple Pay, AppleCare, Apple Arcade, AppleNews+ and more. 

What it all says is that Apple isn’t just resilient, it can find growth when no one thinks it can. 

But there will always be skeptics, whom one should thank for giving the rest of us an opportunity to get in on Apple before it gets too expensive. 

A recent article by Peter Cohen for Forbes suggests that Apple is 59% overvalued, and that it’s not a growth stock. “Until Apple’s price drops 59% or earnings growth expectations rise, I think its stock will offer investors a chance at going up because other people are buying the stock — rather than because it offers a chance to own growth at a reasonable price.”

That argument entirely ignores Apple’s services business, and it’s repeating what everyone has said time and time again--despite the numerous rallies. Even if you don’t think AirPods or watches can make up for a saturated smartphone market, Apple’s quiet coup will. 

A $24-billion business that no one was paying attention to is exactly what Apple services is. And it’s what makes a bet on Apple a bet on growth.

By Tom Kool for Oilprice.com 

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment