Despite Remaining Strong, Apple has Slipped from its All-time High
Apple stands out as one of the wealthiest and most successful companies in the technology industry, and possibly the world as a whole. The value of Apple is often used as a benchmark for evaluating other stocks in the tech sector. However, although Apple continues to be highly prosperous, the company has faced challenges following its peak profits last month.
Since reaching its highest value in September, Apple’s stock has decreased by 9%, representing a loss of approximately $229 billion. To put this into perspective, this amount is roughly equivalent to the combined value of 94% of the companies listed on the S&P 500. The primary reason for this decline is the persistent chip shortage, impacting major tech firms and leading Apple to reduce its iPhone production.
“We started investing in 2013 when the stock’s yield exceeded 3%, surpassing the 10-year yield. This decision was influenced by our belief in the services model and our perception that it was undervalued by the market,” said Nancy Tengler, the chief investment officer at Laffer Tengler Investments, in an interview with CNBC.
Apple shares slip on report chip shortage may impede iPhone production https://t.co/wKKZOCostP
— MarketWatch (@MarketWatch) October 12, 2021
“Currently, if you are not as concerned with valuation as we are at Laffer Tengler, this could be viewed as an opportunity to initiate or increase your holdings,” she stated. “The root cause is a supply chain issue, not a demand problem, and we believe that [CEO Tim] Cook and the team have it under control, so I would suggest expanding your holdings if you are considering buying.”
“The semiconductor shortages were anticipated; however, if Apple ends up delivering 10 million fewer iPhones, I consider that to be insignificant. Ultimately, with the 200-day moving average at $135, I view this as a promising opportunity,” commented Jeff Kilburg, the chief investment officer at Sanctuary Wealth, in an interview with CNBC.
