June 15, 2015

Doug Kass thinks Apple stock has topped

The nearly unanimous view is that the news from Worldwide Developers Conference was a net positive for Apple.

I respectfully disagree. To me, there was no "wow" announcement, nor were the announcements that were made significant enough to support further strength in the Apple ecosystem.

My view is that we're well through the last important upgrade cycle for the company's key phone product now, and that neither Apple Pay nor the Apple Watch will move the sales-and-profit needle enough to support AAPL's current price.

To me, Apple is "over-owned" and investor sentiment toward the stock is high, as manifested in its elevated price-to-earnings multiple relative to other hardware companies.

I still view Apple as an electronics company. Although the bulls see it as a precursor to more of a computer-programming platform (and there's some truth that sentiment), that path won't be a smooth one. The business landscape is more competitive, and perhaps not as profitable as some project.

So, I see "Peak Apple," and I added to my Apple short yesterday.


Position: Short AAPL


Article Originally published on http://www.thestreet.com/story/13181239/1/a-tart-take-on-apple-a-media-blather-index-and-seeing-upside-in-banks-best-of-kass.html

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