‘I don’t like Apple stock’: Paul Meeks

on Jun 14, 2024
  • Paul Meeks of Harvest Portfolio Management shares his dovish view on Apple stock.
  • $AAPL last reported double-digit revenue growth for a quarter in December of 2021.
  • Apple share price is up more than 10% versus before the 2024 WWDC at writing.

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Apple Inc (NASDAQ: AAPL) has regained its crown of the world’s most valuable company after AI announcements at its 2024 WWDC. 

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But Paul Meeks of Harvest Portfolio Management remains unimpressed. 

AI announcements not enough for Apple stock

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Wall Street analysts rushed to raise their price targets on Apple stock after the multinational introduced a bunch of AI features as well as integration with ChatGPT. 

May dubbed it a “game changer” that will translate to a lift in iPhone sales. But Paul Meeks told CNBC in an interview this week:

I will believe it when I see it. I don’t think we’re going to have an upcycle for sure, but the bulls are depending on an extraordinary upcycle, a super cycle for the iPhone.

$AAPL, nonetheless, is up more than 10% at writing versus before the 2024 WWDC. 

$AAPL is seeing a slowdown in revenue growth

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Paul Meeks said “I do not like Apple stock” because it’s been struggling with shrinking revenues. In fact, it’s been more than two years since the titan last reported double-digit growth in quarterly revenue, he added on “Street Signs Asia”. 

Here’s a tech company that hasn’t really grown in two or three years. It’s incumbent upon them to find a growth accelerator, because it’s never acquisitive. They have to do it with their own R&D. 

The co-chief investment officer of Harvest Portfolio Management expects $AAPL to continue to struggle unless it opts for a very large acquisition to move the needle. 

Apple shares pay a dividend yield of 0.47% at writing. 

Is Wall Street also dovish on Apple shares?

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Apple Inc is scheduled to report its financial results for the third quarter in early August. Consensus is for it to earn $1.33 a share versus $1.26 per share a year ago. 

Note that Meeks’ dovish outlook on the Nasdaq-listed firm is not really shared by Wall Street. In fact, Gil Lura – a D.A. Davidson analyst upgraded Apple stock to “buy” after the 2024 WWDC. 

He raised his price target on $AAPL as well to $230 which suggests close to 10% upside from here. Speaking with Yahoo Finance this week, Luria said:

If you look at the signal away from the noise, you realise that this is an unprecedented capability that Apple is going to introduce, and it is going to integrate AI into everyday life.

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