5 Most Overvalued Companies According to the Media

3. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 134

Many analysts have been saying that Apple Inc. (NASDAQ:AAPL) is an overvalued stock. Most of their concerns stem from Apple Inc. (NASDAQ:AAPL)’s huge reliance on iPhone. Apple Inc. (NASDAQ:AAPL) is not a lead runner in the AI race while other companies like Alphabet, Microsoft and Meta Platforms have been planning major AI moves for the short and long term. Dan Niles, Satori Fund founder, recently said in a program on CNBC that he’s short Apple Inc. (NASDAQ:AAPL) because foreign currency headwinds will create problems for the company since about 57% of its revenue comes outside of the US. He also talked about the overheating issue with the iPhone.

Niles said that Apple Inc. (NASDAQ:AAPL) has been posting revenue declines on a YoY basis for the past several quarters and the stock is trading on a high multiple which creates risks.

RiverPark Advisors made the following comment about Apple Inc. (NASDAQ:AAPL) in its Q3 2023 investor letter:

“Apple Inc. (NASDAQ:AAPL): Apple shares were a top detractor in the quarter following reports of the Chinese government banning iPhone use by government employees. Additionally, while the iPhone 15 rollout went generally as expected, the market was underwhelmed by the upgrades in the new phone. Despite these overhangs, early reports from the supply chain seem to indicate demand for the new phone is in line with or better than investor expectations. In August, the company reported a broadly in-line fiscal 3Q23 with $82 billion of revenue and $24 billion of free cash flow. High margin Services Revenue continues to grow faster than the overall business leading to gross and operating margin expansion.

With an installed base of 2 billion active devices and significant growth of the company’s recurring revenue Services segment (now 18% of revenue), we believe that Apple remains one of the most innovative, best positioned and most profitable companies in the mobile technology industry.”