Is AAPL a good stock to buy? We came across a bullish thesis on Apple Inc. on The Boring Finance Guy’s Substack. In this article, we will summarize the bulls’ thesis on AAPL. Apple Inc.’s share was trading at $273.43 as of April 23rd. AAPL’s trailing and forward P/E were 34.61 and 31.95 respectively according to Yahoo Finance.
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Apple Inc. is a world-class consumer technology and services franchise that combines unmatched ecosystem strength with exceptional cash generation, producing roughly $111 billion in annual owner earnings and reinforcing its position as one of the highest-quality businesses globally. The company operates across iPhone, Mac, iPad, wearables, and a rapidly expanding Services segment including App Store, iCloud, Apple Music, Apple Pay, and advertising, with Services now a key high-margin growth engine exceeding $109 billion in revenue and expanding at double-digit rates.
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Despite smartphone maturity, Apple continues to grow through ecosystem monetization, vertical integration, and rising installed base engagement, supported by gross margins approaching 47% and Services margins above 75%, which structurally enhance profitability. Management under Tim Cook continues one of the most aggressive capital return programs in corporate history, with nearly $89 billion in buybacks and $15 billion in dividends in FY25 alone, reinforcing shareholder yield and EPS compounding.
The market currently assigns a premium valuation at a ~33x earnings multiple, reflecting strong brand power and ecosystem durability, though growth has moderated to high single-digit levels, creating a “quality premium” narrative. Strategic upside is driven by Apple Intelligence, potential iPhone upgrade cycles, and long-term optionality in spatial computing via Vision Pro, which could re-accelerate device demand and deepen ecosystem lock-in.
However, regulatory pressures in the EU and US, alongside geopolitical exposure to China-centric manufacturing, remain structural risks that could compress Services margins or disrupt supply chains. Apple’s moat from switching costs and brand loyalty remains among strongest globally, supporting long-term compounding potential.
While near-term returns may be moderated by valuation, Apple Inc. continues to represent a high-quality compounder with durable earnings power and significant capital return support, making it a core long-term holding in global equity portfolios.
Previously, we covered a bullish thesis on Apple Inc. (AAPL) by Kontra in October 2024, which highlighted sticky ecosystem strength, iPhone dominance, services growth and capital returns. AAPL’s stock price has appreciated by approximately 16.35% since our coverage. The Boring Finance Guy shares a similar view but emphasizes owner earnings strength, AI-driven Apple Intelligence upside and regulatory risk-reward.
Apple Inc. is on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 169 hedge fund portfolios held AAPL at the end of the fourth quarter which was 166 in the previous quarter. While we acknowledge the risk and potential of AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAPL and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
