Munster’s remarks on CNBC’s ‘Squawk Box’
AAPL is up only 2.0% this morning versus roughly 10% that would have made sense if it wasn’t for the ongoing rotation out of big-tech on fears of higher rates, said Munster on CNBC’s “Squawk Box”.
It’s pretty obvious that the environment is not very supportive of these tech companies at present. There’s a dynamic in the near term, which I think is clouding the significance of the strength that they have. But this cloud will too pass around the broader market, and investors will re-rate these higher.
He’s convinced that ultimately strong fundamentals and cash flow will drive investors back to Apple. Munster sees upside to $250 a share in the stock over the next couple of years.
Munster’s take on Apple’s multiple
On the earnings call, CEO Tim Cook reiterated that Apple saw massive potential in the metaverse and was making investments to position itself as a beneficiary, which, as per Munster, could be a catalyst for multiple expansion. He added:
Ultimately, the multiple will expand on Apple. They’ll get the credit for continuing to deliver hardware that operates as performance like a software business. Separately, these other markets they’re getting into like augmented reality and metaverse, I think, will expand the multiple.
According to Munster, Apple’s results were particularly impressive, considering inflationary pressures and supply constraints in the holiday quarter. CEO Tim Cook, however, is confident that the supply chain will get better in the March quarter.
La notizia Apple’s ‘memorable quarter’ might not help the stock in the near term era stato segnalata su Invezz.