Technology investor Dan Niles said the situation was not optimistic before Apple’s second-quarter earnings report. Apple will release its earnings report on May 2, and its stock price has fallen 14% this year, lagging behind other major technology stocks such as Nvidia and Meta Platform. Despite this pullback, the Satori Fund founder still believes Apple is overvalued given its fundamental “underperformance over the past three years.” “At a[P/E ratio]in the mid-20s, I don’t know why you would choose this name over countless other names in the tech space that are growing revenue and earnings and don’t have the same competitive issues as tech companies .AAPL YTD Mountain AAPL Year-to-date Niles noted that Apple’s March quarter revenue guidance was the same as the company’s forecast three years ago. Competition from Huawei has also not weakened, causing the company to lose market share in major countries such as China. Niles added that Apple is also lagging behind its peers in the artificial intelligence race, which is why it continues to explore opportunities with potential partners such as Alphabet. In the case of growth, I don’t know why you would be bullish on it. ” Instead, Niles is turning his attention to industries that have been “abandoned” outside of artificially generated trading, although he is maintaining a degree of caution heading into earnings season. Specifically, he prefers industrials, healthcare and selective fintech companies. Niles has been bearish on Apple in the past. He held a short position in the stock last year.
