Apple Inc. is launching new products including a smart-home event with a doorbell and thermostat, a touchscreen MacBook, a new iPad mini, and pre-orders for the foldable iPhone Duo. Despite these releases, investors remain skeptical about whether they will boost the stock, which has been flat since soaring to a record in late July. Apple’s stock trades at over 35 times forward earnings, well above its 10-year average of 24 and among the highest in the S&P 500.
Peter Andersen of Andersen Capital Management, overseeing $5.5 billion, said the company needs super-hit products to move the growth needle but is unsure current offerings are exciting enough. While Apple is up 25% this year and a top performer among the Magnificent Seven, its growth rate lags peers, with revenue projected to rise 15% this year, slowing to 10% in 2027 and 7.8% in 2028. Andersen questioned whether the high valuation allows for further upside, noting Apple isn’t seeing the innovation needed to justify its multiple.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing