Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Why You Should Be Worried Of Apple Inc. (AAPL) This January: Collin Gillis

Apple Inc. (NASDAQ:AAPL) had a tremendous run in 2014 in the wake of unveiling iPhone 6 in September that saw the company clock highs in terms of valuation. In contrast to the impressive run in December 2014; the stock could be in for a downward trend this month if history is to be carefully studied according to BGC Technology analyst Colin Gillis

Apple, is Apple a good stock to buy, Kirk Yang, Barclays, 2015,

During an interview on CNBC, Gillis reiterated that Apple Inc. (NASDAQ:AAPL) impressive run in 2015 may be suppressed on the fact that iPhone sales don’t offer a recurrent revenue stream. The senior analyst also believes that Google Inc. (NASDAQ:GOOGL) may in a way outshine the Cupertino-based company in terms of performance this year.

“You go back and you look at the last two Januaries when they report record December quarter results. The stock has traded down. Traded down 8% in January of 2014, traded down 12% January of the prior year. The reason is that expectations are already baked in,” said Mr. Gillis

Apple Inc. (NASDAQ:AAPL) is poised to sell 60-70 million gadgets with the current refresh cycle according to Gillis but with great concern that the company does not have any recurrent revenue avenue. A lengthening of refresh cycle to two years would negatively affect the company’s annual revenue going forward.

The analyst also believes that the impressive run that Apple Inc. (NASDAQ:AAPL) has enjoyed in the recent past has to do with the massive repurchase program that has gone to impact its earnings per share. The analyst expects the buyback program to at some point come to an end something that should have negative repercussion on the stock’s performance in the market.

Apple pay is expected to facilitate device sales going forward as more consumers continue to trust Apple Inc. (NASDAQ:AAPL) products especially on the security aspect. Gillis, on the other hand, remains skeptical on whether Apple Pay will be a meaningful driver in driving sales going forward.

“It is a great facilitator for sales of the unit itself to help sell handsets, but to actually be a meaningful contributor to revenue. They will need to do about 14 trillion dollars in sales just to be 10% of revenue, and that is not going to happen,” said Mr. Gillis

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.