- Apple Inc. is facing challenges and doubts regarding its immunity to risks related to economic turbulence, particularly in China.
- Tepid sales of its new iPhone models in China have raised concerns about Apple’s ability to maintain its valuation and avoid a potential streak of four consecutive quarters of falling revenue.
- Apple is grappling with political tensions with China and overheating device issues.
- KeyBanc recently downgraded the stock, adding to the concerns about its performance and valuation.
- Apple’s lack of revenue growth and high stock cost are creating a disconnect that is challenging to ignore, leading some investors to consider hedging against its valuation risk.
- Despite challenges and doubts, Apple continues to influence markets significantly, making it challenging for equity investors to avoid, but some other megacap tech companies may offer more promising growth prospects and trade at more reasonable multiples.