Analyst Ben Reitzes and consultant Dan Nathan had a bull-bear debate about Apple Inc. (AAPL) stock on CNBC on May 7.
Reitzes suggested that Apple’s future is bright, while Nathan warned that the tech giant was “massively behind the 8 ball” in terms of technology and suggested that it would be significantly damaged by the problems facing its Services business.
A wide view of an Apple store, showing the range of products the company offers.
Reitzes is Managing Director and Head of Technology Research at Melius Research, while Nathan is the principal of RiskReversal Advisors.
Reitzes’ Bullish Take on Apple Inc. (AAPL)
After AAPL disclosed that the search traffic on its browsers had dropped for the first time last month, Retzes said that AAPL could cope effectively with the issue by launching a new search product.
And suggesting that the iPhone will not be disrupted by AI, he said that, “People will always need a device to access AI.”
Further, the firm can overcome the weakness of its Services business by introducing “new services with AI that people aren’t thinking about and charge for it.”
Finally, even if courts prevent Apple Inc. (AAPL) from obtaining payments from app owners, it can “make up for that… with new services, new arrangements, and new innovations in services that people will pay for,” he predicted.
Nathan’s Bearish Take on AAPL
Apple’s AI offerings were insubstantial, and 20% of its Services revenue comes from GOOG, Nathan noted.
Apple Inc. (AAPL) “has no strategy right now,” he contended.
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This article is originally published at Insider Monkey.
