While Apple remains a huge revenue generator, it is no longer the growth company it once was, said Aswath Damodaran of New York University. “Apple has returned over $600 billion in cash over the last 10 years, which makes it the greatest cash machine in history,” Damodaran told CNBC’s “The Exchange” on Monday. “So I like to think of it as the greatest cash machine in history. The company is viewed as a cash machine, not a growth engine.” Apple shares fell on Monday after reports that demand for the tech giant’s new iPhone 16 models was weak, with first weekend orders for the phone launched last week year-over-year. decline. The stock last fell 2.8%. One factor is that Apple Intelligence, a selling point of the new iPhones, wasn’t included with the launch. It is expected to launch in beta mode next month. AAPL 1D Apple’s “Valuation Dean” expects Apple’s services business to continue to face challenges as it struggles to keep up with iPhone sales. However, the finance professor said Apple’s stock price has risen more than 12% this year and is priced reasonably. “I don’t think the stock is grossly overvalued in any way, but I do think all of these things are good, but you’re trying to fill a very large space,” Damodaran said. “I mean, you You can add a services business, but the money Apple makes from the iPhone is so huge that even with three new businesses, it’s not easy to make up for it. “So the services business and ecosystem they have must be. It needs to be very large to make up for the shortcomings of the iPhone,” he said. “That’s always a problem when you invest in Apple.”
ABOUT US
Our news website delivers comprehensive coverage on US news, economy, politics, and world events, ensuring you stay informed on the latest developments. We provide timely and accurate news to keep you updated on the most important stories. Stay connected with us for in-depth analysis and breaking news from around the globe.
Contact us: contact@realtimeheadlines.com
© Real Times Headlines - 2024 | All Rights Reserved