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Is apple stock of by welcoming guys that is what we were talking about here today is apple stock i buy so many you guys have been wanting me to go super in-depth on apple and kind of view this and in is this a steal now i think apple hit around a hundred and seventy two dollars now is apple stock a steal here or is it not so we’re just going to kind of go into
Depth on this hope you guys enjoy this by the way today is black friday i got a deal i got a couple deals for you guys one is on the stock options course 70% off and then i also put my huge course a fifty one video stock market course at seventy percent off as well i will pin both of those as the comments they’re gonna be discounted all day so if you guys want to
Pick up those for 70% off you have that opportunity alright let’s get into this so first off apple stock here today as we spoke about hit a hundred and seventy two dollars a share down another two and a half percent today now if we look a police dog is been on a tear for quite a while if we go back to around the fall time late summer may be the fall time of 2016
There was a round where apple had bottomed out at and since that time since i found i phone seven launched the stock has almost been up in a straight line and had a few little dips here and there but no major dips in apple stock for quite a while this stock was just up up and away all the way up until we get to around october first and that’s when the stock talks
Out and then ever since then it has just been down and down and down some of that is because the market and some of that was because their earnings and them announcing that basically they’re not going to you know show how many iphones are selling anymore so it’s kind of a double whammy on apple stock market got really weak all the sudden the last you know a month
Or two a lot of volatility in the market a massive amount of stocks have gotten down a huge so it’s not like apple’s only one and then also the iphone news on top of that has freaked a lot of people out if we look at apple stock here we’re looking at a company it has a market cap around 817 billion right now now keep in mind this was over a trillion dollar market
Cap not too long ago so it is falling quite substantially forward p/e we’re looking at under 12 now at this point in time for apple all right that is a little ridiculous in my opinion what type of stocks do i think apple should be valued with so if we’re looking at our p/e basis what type of valuation do i think apple should have i think they should be grouped
In with a lot of the companies like the coca cola’s of the world okay coke cola has a ford p of 22 remember apple was at 11 ford p of 22 on coca-cola procter and gamble forward p up over 19 on that stock johnson & johnson for repeat of over 16 on that stock mcdonald’s forward p of over 22 why do i think apple should be grouped in with those type of companies
Well they’re very very similar companies in a few realms okay the first one is the all those businesses have very consistent business models all of them are very consistent and if you look at apples business model very consistent someone’s iphone breaks they go get another one okay if my ipad stops working i’m going to buy another one all right the services has
Created a whole new level of consistency in their business model people spending money on apps every month you know people that have subscription services to a lot of different things i’m subscribed to apple music it’s like i think $9.99 a month or $12.99 a month or whatever it is right every single month those charges and think about how many millions hundreds of
Millions of customers apple has to monetize over time in the services category so their business model is very consistent number two they are dividend payers they pay nice dividend i think their dividend is gonna grow up dramatically over the next five to ten years i think right now their dividend yield is something like 1.7 percent somewhere around there right now
Which isn’t you know bad but it’s certainly not a good dividend yield i think over time their dividend is gonna be able to increase dramatically number three they have a great management team a proven management team that’s been there for a long time this company for the last 20 plus years has been phenomenally round since steve jobs came back and around 97 you
Know he got the company back moving in the right direction right he passes on in around 2011 tim cook takes over in the companies just taking things up to new and new levels ever since then and number four they have many different income streams it’s not like they’re just relying on one product one one category or whatnot they have a ton of different categories
That are growing very nicely as we’ll see in just a second here that are all big businesses and some of the business biggest businesses in the world if they were broken out all right next up here i love to call this company mr. worldwide remember when pitbull had that song mr. worldwide that’s what this reminds me of okay look at their business all over the globe
It is increasing dramatically if we look at the mirror business is up dramatically 19% europe 18% greater china 16% japan 34% rest of asia-pacific 22% that’s revenue growth 20% year-over-year every single mark is doing very well for them now if we look at their actual product categories broken down we’re gonna see phenomenal growth an iphone right amazing growth
29% revenue growth in an iphone where it see very strong numbers in services up 17% that’s been a double-digit grower for a while now and should continue to be one other products category up 31% very impressive there the overall numbers you know basically almost 10 minutes over 10 billion dollars more in revenue this quarter than in the last quarter last year
Guys that’s insane difference i mean just a year-over-year nearly a ten billion dollar increase in a three month span it’s on real alright the trouble categories if you look at that is ipad down 15% and mac down 3% i think honestly they just need a refresh is right so ipad just got refreshed so that won’t be seen in these this past quarter numbers i’ll be seen
In this upcoming quarters numbers i think the new ipads have a lot of people excited i think that will give back to growth an ipad and then they just launched a bunch of new macbooks so i think that should you know help the mac category grow quite a bit so when i look at those two categories i think those will get back to growth and then you got all the other
Consistent ones iphone services and the other products category growing very nice other products by the way is things like apple watch which a lot of people excited about new apple watch and then you’re talking about ear pods and headphones in like the home pod things like that all right also this company is a look at the net income okay look at that bottom line
We’re talking about 40 plus percent year-over-year growth in net income all right earnings per share 40 plus percent year-over-year unbelievable numbers they’re not just that they’re growing that income just a grow net income right research and development is still increasing dramatically so you’re still spending a ton of money on more employees and things like
That they can help expand the company over time look at last year they had under three billion dollars in research and development for the the three months panned ending in september right now they had a three three over 3.7 billion dollars in research and development costs so it’s not like they’re just like oh we’re just going to keep the employees we have work
Ardi now and just you know we’ll keep that no they’re still increasing that so all the product categories can increase in the future and they can kind of stay you know out in front of everybody and a ton of different product categories all right then we look at their balance sheet unbelievable balance sheet all right look at their cash and marketable securities
As far as short term and long term we’re talking about if you add up all those categories looking at around two hundred and thirty five billion dollars guys that’s a ridiculous re ridiculous if we look at their term debt they have a you know a little under a hundred billion dollars in overall debt so literally they could pay that out and they could pay that debt
Off in seconds and still have a hundred plus billion dollars just laying around the balance sheet to to play around with all right so so far we there’s a lot of positives out there if you’re looking at any of the numbers any of the metrics out there in my opinion it’s definitely looking like apple stocks a buy where it’s at now something else i’d love to look at
Whenever i’m looking at a company i’m thinking about buying it or not or what are the competitive threats you know how i want to break this down into each product category because they have it’s not like they just have one company that’s a competitive threat to them they have a ton of different ones all right so first off let’s look at the foam category there are
Really only two players in my opinion on the high end of phones that are competitive threats them okay there are a lot of other players a lot of chinese players that play in the mid end or maybe even the lower end but apple really plays only at the high end samsung google there’s the same guys that have been there for a while google that doesn’t seem like they’ve
Done anything impressive as far as sales numbers for the google pixel a matter of fact i was on the google the last conference call and they were talking about google pixel three and how the sales who weren’t doing too good you know and that seems like it’s been a really good phone it seems like a really good phone honestly it just has not sold well i don’t know
If they don’t have the marketing you right for that phone or what the deal is or maybe just it’s just hard to get people away from apple and samsung on the high end and obviously google’s going after the high end it’s a very high-priced phone right the google pixel numbers are just not going good although the phone seems impressive samsung samsung you know they’re
They’re you know a competitive threat but they haven’t done anything as far as to hurt apple you know for years and years now so they’re just kind of hanging there so phones it’s really not like they have any major competitors on the high end number two computers they still have the same traditional pc companies that they have the as competitive threats for a long
Time their consumers that build out their pcs and do it all custom that still is something that’s been around for a long long time so as far as the computer the mac side of their business it’s kind of the same game as it’s been before somebody wants on an imac like i have or a macbook like i have they get in a macbook or an imac that’s just how it is all right as
Far as tablets go there are a couple competitive threats ones direct ones indirect okay so microsoft is a threat certainly in the on the tablet side microsoft is actually done pretty good there they spent a lot of money on their their tablet side of their business they want to still be a competitive threat and they are a competitive threat but also huge phones are
Competitive threat for the ipad business because a lot of people the way they look at it is is you know and i think samsung’s talking about coming out with a six point eight inch phone i think something around their next note might be six point eight inches the iphones are i think are getting up to six point five inches now as far as a screen space may be could it
Start approaching a seven inch screen right these armies are massive massive devices now and so a lot of people might look at it and say why do i need an ipad that’s maybe nine inches if i have a phone that’s seven inches that will be sufficient to me so i think the big phone category is something that slowed down a lot of the tablet growth overall and i think
Will continue to do so i think that’s probably actually the biggest competitive threat it’s not like this specific company it’s just the fact that you know apple keeps coming out with bigger phones samsung does the same thing and some people just look out and they’re like i could just use my phone for whatever i was gonna use my tablet for all right number four
We’re talking about wearables now specifically i’m talking about the apple watch they have fitbit which is probably their main competitor and they have honestly just been destroying them pretty much samsung’s a little bit of a competitor as well but you know from what i’ve seen if you’re wearing a smartwatch of some kind most people are just going with the apple
Watch now you know definitely fitbit still has it’s kind of like you know very loyal core there but then they’ve been kind of getting smoked in that category lately all right headphone side of their business there’s only really one major competitor in that is bose the problem with bose is they don’t have the functionality apple can put so much functionality into
Their headphones on think different things you can do whether we’re talking about the home pods or what they can do with beats over time because apple bought beats several years ago with you guys know that already so bose is kind of their main competitive threat in the headphone space high-end headphone space but apple can just add so much more functionality into
Their headphones that if you’re looking at and you’re like sure i get a bose or should i get a beats or an apple or something like that you’re almost kind of going toward the apple sykes it can add so much more functionality that’s a big competitive advantage apple hasn’t all these you know accessory categories if they have the main device you use your phone then
They can do so many specials things around the you know the ios side there so yeah that’s not really a big competitive threat and then number six is the in-house assistant alright this is things like they have their home pod now they think about amazon echo and the alexa devices google home facebook has a new device out now which is also like a screen right i think
It’s called portal if i recall right so the in-house assisting category this is actually something they’re definitely losing right now okay they just came out with their home pod it wasn’t that long ago like probably less than a year ago right and that’s a category they’re losing big-time i think amazon’s way out in front of everybody in the in-house assistant game
Right now with their their echo devices alexa whatever you want to call them i think almost you know everybody i know pretty much has at least a little echo dot in their home if not one of the bigger devices so amazon actually got way out in front of everybody so will be interesting to see if apple can make up ground here because they’re actually playing from way
Behind in this game so that’s actually the one category as of right now i’d say they’re taking an l in everything else i would say they’re out in front of everybody in the high-end space so apple stock when i look at it overall absolutely without question if you have any type of long-term basis three five ten years absolutely i’d probably start buying some apple
Shares it’s gone low enough now where i’m like maybe i should have started even buying some apple shares here this problem is there’s so many other stocks i love too but if i look at apple stock alone just looking at is this cost acaba is it’s not gonna be massively higher three years five years ten years from now than it is today in my personal opinion yes and will
Be it won’t even be close and not only should the stock price be much higher three five ten years from now than it is today but also the dividends paid out is gonna go up dramatically in my opinion over the next three five 10 years so for my perspective it’s definitely a buy out there as always do your own research on stocks and if you want by stock buy a stock
But do your own research so if just base it upon what i am saying in what my feelings are this is just my feeling on apple stock so hope you guys enjoyed this by the way if you want to take advantage of any of those deals on the black friday deals so that’s going to be the pin comment down there options course and my big stock market course thank you for watching and have a great day
Transcribed from video
IS APPLE STOCK A BUY NOW?! By Financial Education
