Is Apple stock a buy even after recent surge?

Apple stock’s sharp gain following the firm’s Apple Intelligence reveal at WWDC on Monday puts it up about 21% over the last three months. After such a steep gain, many investors are likely taking a close look at the tech stock to see whether it’s a buy, sell, or hold. So, is Apple stock a buy even after its recent surge?

Daniel Sparks for The Motley Fool:
‎

Perhaps one of the big reasons why investors are bullish on the stock’s potential following the announcement of Apple Intelligence is that the AI software will only be available on recent Apple products. As far as its smartphones go, for instance, Apple Intelligence is limited to the iPhone 15 Pro and Pro Max (note it’s not even available on the standard iPhone 15). This could lead to a big wave of smartphone upgrades from Apple’s loyal customer base as consumers look to get their hands on more AI tools.

Apple Intelligence is also limited to newer Macs and iPads. It will be available on iPad and Mac devices with M1 chips and later.

Given that Apple has benefited from big waves of iPhone upgrades before, it’s definitely possible Apple Intelligence will bolster iPhone sales trends. For this reason, selling Apple shares at a time like this could be a mistake. But buying shares at this level, unfortunately, leaves very little margin of safety for the upbeat expectations priced into the stock. For this reason, it’s probably more appropriate to call Apple stock a hold at this level.

Support MacDailyNews at no extra cost to you by using this link to shop at Amazon.
‎
MacDailyNews Take: Apple’s PE ratio is high at 33.14, but it’s been higher. We are, as ever, accumulating on the dips. Of course, always do your own due diligence.
‎
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!

Support MacDailyNews at no extra cost to you by using this link to shop at Amazon.

The post Is Apple stock a buy even after recent surge? appeared first on MacDailyNews.