Member-only story
Featured
The Bull Case For Apple Stock
Apple has transformed into a capital light services business
(I own shares in Apple. These are my own opinions and should not be interpreted as an investment recommendation. Please do your own research prior to making any investment.)
Lately I’ve been thinking about what to do with my Apple shares. Apple is no longer valued cheaply like it was a few years ago, so I would need to hold a favorable opinion of its future to justify continued investment.
The bear case is fairly obvious — Apple is trading at an expensive valuation. It’s not growing much due to longer upgrade cycles for iPhones and fierce competition in China. And its new products like the Vision Pro have not done well.
That’s the bear case. Now let me try laying out the bull case.
The bull case is services and subscriptions
Ten years ago people treated Apple like a hardware company — the question was always what’s next after the iPhone? Surely at some point the iPhone would go the way of all the other fad phones before it and Apple would need to deliver another hit if it didn’t want to fade into obsolescence.
But Apple was actually playing a very different and longer game. It used iPhone, iPad, Mac, along with…
