We heard an analyst yesterday argue that Apple is under-valued given its longer-term prospects, but one long-term investor and portfolio manager believes that AAPL is over-valued right now.
Evercore ISI analyst Amit Daryanani yesterday suggested that investors are not appreciating the importance of Apple’s planned switch to its own chips, estimating this could increase Mac margins by as much as 5% …
Long-term tech investor and Synovus portfolio manager Dan Morgan doesn’t argue on this point, but told Business Insider that, right now, AAPL is over-valued.
Morgan said that it’s understandable some tech stocks are doing well.
But Morgan argues that the stock price doesn’t reflect the current reality.
With brick-and-mortar retail stores largely closed, US consumers turned to online shopping in big numbers to buy groceries, toilet paper, and other essential goods. With people staying home and unable to go to movie theaters or see live sports or other events, many have turned to streaming services for their entertainment. Meanwhile, Microsoft’s Team messaging service, the chief rival to Slack’s chat software, has seen an upsurge in use as many office workers have had to rely on such tools to communicate with their colleagues as they work from home.
He does agree that things will improve after the current quarter, it’s just that the market doesn’t normally look so far ahead.
It’s hard to justify the rebound in the shares of Apple, Facebook, Alphabet as based on pure fundamentals, Morgan said. The second-quarter reports for those and many other companies are likely to be bad, he said […]
“To me, those are situations where they may be a little bit ahead of themselves, at least based on the fundamentals,” Morgan said. “Because I still think this upcoming quarter is not going be too beautiful for those companies.”
Photo: Dan Winters/Wired
