Goldman Sachs: Apple stock still pricey

Goldman Sachs: Apple stock still pricey

Apple Inc. has been one of the most successful companies in the world, with its stock price soaring to new heights in recent years. However, according to Goldman Sachs, the stock is still too pricey.

Goldman Sachs analyst Rod Hall recently downgraded Apple’s stock from “buy” to “neutral,” citing concerns about the company’s ability to maintain its growth trajectory. Hall believes that Apple’s current valuation is too high, and that the company’s growth prospects are limited.

Apple’s stock has been on a tear in recent years, with the company’s market capitalization reaching over $2 trillion in August 2020. However, Hall believes that the stock is now overvalued, and that investors should be cautious about buying in at these levels.

One of the main concerns that Hall has about Apple’s growth prospects is the company’s reliance on the iPhone. While the iPhone has been a huge success for Apple, accounting for over half of the company’s revenue, Hall believes that the smartphone market is becoming saturated, and that Apple’s growth in this area will slow down.

In addition to concerns about the iPhone, Hall also believes that Apple’s other products, such as the iPad and the Apple Watch, are not enough to drive significant growth for the company. While these products are popular, they do not have the same level of impact as the iPhone.

Despite these concerns, Hall does not believe that Apple is a bad investment. He simply believes that the stock is too expensive at its current levels, and that investors should wait for a better entry point before buying in.

Overall, Goldman Sachs’ downgrade of Apple’s stock is a reminder that even the most successful companies can become overvalued. While Apple has been a great investment in the past, investors should be cautious about buying in at these levels, and should consider waiting for a better entry point.