As soon as a crisis emerged on Apple Inc. (NASDAQ:AAPL)’s horizon and the stock took a dive, analysts have emerged to tell all that’s wrong with Apple Inc. (NASDAQ:AAPL). Just a few days earlier, there was hardly anyone who wasn’t optimistic about Apple Inc. (NASDAQ:AAPL). In line with the way the Wall Street works, where fortunes are made and lost in the blink of an eye, the doubts concerning Apple Inc. (NASDAQ:AAPL) have started flowing in from different quarters right after the company went through a mini-crisis when celebrities photos were leaked from its iCloud. Andy Hargreaves, Senior Research Analayst at Pacific Crest explained today on CNBC why he feels that Apple Inc. (NASDAQ:AAPL) is not worth buying right now.
“You have had substantial multiple expansion in the last couple of months here , it’s now trading fairly far outside the range of the last couple of years and the big issue that we see is not anything to do with the next couple of quarters because quite frankly we think they are going to be fantastic, but once you get through the iPhone 6 cycle, you have really difficult comps and you are back to dealing with saturated markets […],” Hargreaves said.
Hargreaves feels that once the iPhone 6 cycle is over Apple Inc. (NASDAQ:AAPL) will witness a slowing growth, a contraction in multiples and its stock would start reflecting that, once it starts to happen. He believes that even though entering wearable devices can change the company’s fortunes, he doesn’t expect that any other device can have the kind of success that the iPhone and the iPad have had as they are two of the most successful consumer electronics products ever. He considers a drop in iPhone sales will have significant negative consequence on Apple Inc. (NASDAQ:AAPL) and its stock.
“I am not saying that there is no way. I am saying that, I think the way is, although there is a very, very small percentage of chance that they find a way, what they will have to show is something that changes the world, […],” Hargreaves added.