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Apple Inc. (AAPL) Is In A Good Product Cycle Right Now: Walter Price

Apple Inc. (NASDAQ:AAPL)’s price is singing that “there will be, ups and downs, smiles and frowns” until the markets show growth in green numbers or the economy becomes more stable. The current price for the iPhone manufacturer is close to $100, down 1% during the last trading day, thus making lots of investors wonder when it will go up for good. CNBC’s guest speaker Walter Price, senior portfolio manager at Allianz Technology Trust, stated that it’s an inexpensive stock compared to the rest of the businesses in the industry.

Apple Store on 5th Avenue, New York City. Designed by San Francisco based design firm Eight Inc.

So, Apple Inc. (NASDAQ:AAPL)’s price over earnings ratio is approximately 16.12, Google Inc (NASDAQ:GOOGL)’s analogous statistic is about 27.61, and Facebook Inc (NASDAQ:FB) has a price 79.28 times greater than earnings. This simple comparison supports the above argument, but why isn’t the price growing, especially since we’re in a release period prior to winter holidays. Analysts seem to be waiting for the same thing.

“Apple is very strong. Their orders for the iPhone, particularly the iPhone 6 Plus, it’s very strong and security in technology is also very strong,” said Walter Price.

We could blame Apple Inc. (NASDAQ:AAPL)’s misfortune on the economic slowdown that the markets are enduring and on the fact that some more products have yet to find their ways to the shops. Consequently, the stock price should start spiking with time, ceretis paribus, but until then there’s little that Apple Inc. (NASDAQ:AAPL) can actually do to get some bump in price. After all, there are very few that wouldn’t argue in favor of the Cupertino, California-based tech titan.

“I think it [Apple] is a mature company and it is a product cycle company, and we’re into a very good product cycle right now. I think they’re doing some good things with the watch and with the mobile payments that will help the growth,” stated Walter Price.

It hasn’t been made any suggestions to take long positions or to refrain from such strategies for the time being. In any case, very short term investors might see their patience at test with Apple Inc. (NASDAQ:AAPL)’s stock.

Disclosure: none
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