Wall Street Warms up to Apple, AAPL Valuation Update
Today's Above Avalon Daily email contains the following stories:
Wall Street Warms up to Apple
AAPL Valuation Update
Over at Above Avalon’s sibling site, Inside Orchard, my essay last week, "Big Tech Is Winning Over Wall Street," went over a Wall Street observation that has been on my mind for the past few weeks.
While NVIDIA was capturing many hearts and minds on Wall Street, a larger story was quietly unfolding in the background. Wall Street was turning decidedly more bullish on the broader Big Tech bucket (Microsoft, Apple, Alphabet, Amazon, Meta). The change in tone isn’t just attributable to AI either. That may come across as a shocking stance to hold - the Inside Orchard essay goes into more of my thinking.
For today, we will keep our focus specifically to how Wall Street is warming up to Apple. The discussion then turns to an examination of AAPL valuation metrics (forward P/E, EV/FCF, and free cash flow yield).
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Nikkei Asia Stokes Apple Demand Fears, AAPL Valuation Update, AAPL Stress Test Scenarios
Today's Above Avalon daily update includes the following stories:
Nikkei Asia Stokes Apple Demand Fears
AAPL Valuation Update
AAPL Stress Test Scenarios
In today's update, we will tackle additional questions that came in from members over break. The first topic is related to Nikkei Asia's article on Apple product demand. We will then turn to AAPL volatility. The discussion includes a broader examination of Apple’s current valuation metrics based on both earnings and free cash flow. We also go over various stress test scenarios involving different EPS and forward P/E multiples.
Above Avalon membership is required to read this daily update. Members can read the update here.
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