daz888888888
2022-09-24

$Apple(AAPL)$

Apple (AAPL) stock continues to fall as it retraces from highs following the high inflation print earlier this month. This has brought all valuations low, and Apple has naturally followed suit. The stock has performed well this year, being flat year to date while most other stocks suffer, especially in the mega tech space.

Apple stock news

iPhone 14 is the big catalyst and sets up the next quarter for Apple. The key question is how much of the reported global slowdown will affect iPhone 14 sales. iPhones are expensive and seen as luxury goods. This segment usually suffers in a consumer recession as spending is curtailed.

However, some caveats apply here. The Apple ecosystem is highly priced and inelastic with a loyal consumer set that regularly upgrades to the latest model. The average age is younger and so less susceptible to other financial issues and also has high disposable incomes. Morgan Stanley pointed out in a note to clients last week that they see Apple and the iPhone 14 as somewhat immune from macroeconomic downturns. The investment bank says the iPhone is more a "staples like" product.

This is where Morgan Stanley and myself differ. Yes, there is an element of the staple. A mobile phone now is seen as an essential product for the vast majority of the population. We simply cannot leave home without it. Everyone has a price point though, and even if the Apple ecosystem means a certain loyalty is built in, it still does not stop the consumers from upgrading to older cheaper models or simply delaying any upgrade at all.

However, I feel that Apple should still outperform for the remainder of the year given the timeline. iPhone orders should see a Christmas boost before the real damage is done in 2023. I remain with my $100 12-month price target, which you can read through here in our deep dive series.

Apple Stock Deep Dive: AAPL price target at $100 on falling 2023 revenues

Apple stock forecast

A bounce seems imminent in the short term at least. We already have a bullish divergence from the Relative Strength Index (RSI) and Friday's price action. A new low on Friday in this down move has not seen a new low on the RSI. Also, we have a hammer candlestick on Friday, another bullish pattern. This is a candle with a long wick but a much higher close than from the intraday low. This means a large intraday bounce and is a bullish sign, for the short term at least. The first target is a modest $153, the 50% retracement of the summer rally. $164 is the most recent spike high, and that would represent a significant move and turn the trend bullish again

3 Blue-Chip Stocks to Buy for April 2022 🚀✅

@daz888888888：
3 Blue-Chip Stocks to Buy for April 2022 $Visa(V)$ $Apple(AAPL)$ $NVIDIA Corp(NVDA)$ 1. Visa (V) Outside of the tech space, these next two companies have been some of the best performers over the last decade. Visa (NYSE:V) and MasterCard (NYSE:MA) run what I like to call a “toll booth” on transactions. There’s a secular trend that’s been underway for years, as consumers transition from cash and check to credit and debit. Additionally, the rise of online and digital sales has only fueled this move, as consumers obviously find it easy to shop. Specifically, with these two businesses, investors have been quick to critique the valuation by pointing out that Visa stock trades at more than 17 times its trailing 12-month revenue. In the past, this valuation has also been an issue. Even during generous market periods, that’s a rich valuation for many growth stocks. However, in those instances, investors aren’t taking profits into account for the growth stocks, because many don’t have any. And in the case of Visa, it’s incredibly profitable. Overall, the company sports gross profit margins of almost 80% and net profit margins of 51.6%. These metrics aren’t back to the pre-pandemic highs just yet, but they are inching in that direction now. Therefore, it makes a great option among the top blue-chip stocks to buy. 2. Apple (AAPL) I refer to Apple (NASDAQ:AAPL) as having one of the best business models in the world. It runs the razor/razor blade model, but at an incredible premium. The razor/razor blade model is premised on the idea of getting the razor into customer’s hands — even if that means giving it away at cost (or less) — so that they will continue to buy razors from you, which is the real money maker. Rather than give away its razors though — in this case, that’s iPhones, iPads, Macs, etc. — Apple charges a hefty premium. They mark these devices up in price to the point where they alone generate an enormous business for Apple. So, what then is the razor blade portion of the business? Services. Last quarter, overall revenue grew 11%, while Services revenue grew almost 24% YOY. Not only is it outpacing the company’s Products revenue in terms of growth, and overall revenue growth, but Apple’s Services unit is more than twice as profitable as its Products business. And that is the main catalyst that people need to understand. 3. Nvidia (NVDA) As one of the greatest companies in the market as well, Nvidia (NASDAQ:NVDA) caters to multiple end-markets that are enjoying long-term secular growth. Some of those end markets include: Datacenter, cloud computing, supercomputing, artificial intelligence and machine learning, graphics, gaming, autonomous driving and automotive, drones, robotics, the metaverse and more. Moreover, when you look at those markets, it’s pretty clear to see the trends. Do customers want faster computers, better graphics, and more responsive gaming and control (for drones, robotics, autonomous driving)? Do they want faster cloud-based applications and are they generating more data? The answers to these questions all point to more demand for Nvidia’s products In turn, it’s the main reason I believe this firm will eventually command a $1 trillion market cap.
3 Blue-Chip Stocks to Buy for April 2022 🚀✅
# US Stocks Opportunities

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Comment（5）

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  • YorkTurner
    ·2022-09-24
    Apple to fall hard this coming Monday and all throughout next week. There is absolutely nothing to keep propping it up. Everyone knows that it is highly overpriced.
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  • familoveyou
    ·2022-09-24
    Apple for the week is flat. mind boggling insane strength.
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  • YvetteGunther
    ·2022-09-24
    everyone should buy the best asset which is AAPL,especialy now.
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  • RK0948
    ·2022-09-24
    Good to know and share about it 😄
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  • 企鹅夫人
    ·2022-10-26
    [smile]
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