High-tech stocks of other large cap stocks like Google, Amazon, Meta With (formerly Facebook) Microsoft It is declining on the day as market sales expand. On Tuesday, the Dow Jones Industrial Average fell by more than 600 points, the Nasdaq Composite fell 1.3%, and the S & P 500 fell about 1.7%.
Needam analyst Laura Martin told CNBC that investors will turn to Apple on Tuesday as it has tremendous cash flow, can withstand economic slowdowns and take advantage of falling prices. Said that.
“Companies that know they can survive the storm, don’t go bankrupt, and don’t feel financial pain have a flight to quality,” Martin said, with other large caps not falling as much as small businesses. Said.
Martin added that Apple is in a position to introduce new products to drive new growth. Including headset..
“The biggest criticism of Apple over the last five years is the lack of new products. Looking at the product pipeline, especially in today’s press, there’s a lot of excitement about how to introduce augmented reality glasses at the next WWDC. There is. June. “
Martin said Apple’s current products, especially the iPhone Pro model, are doing well, and there are signs that it could lead to a big quarter in December for the company. Apple said In October, despite supply constraints, first-quarter sales were expected to exceed $ 111.4 billion last year.
“There are so many numbers from retailers about how to sell their products. Tablets, especially high-end iPhones, are said to deliver high profit margins and high profits in the fourth quarter of this year.” Martin said.
Apple uses cash flow not only to invest in new products, but also to return capital to shareholders through dividends and repurchases. The latter helps stabilize stock prices. Bernstein analyst Toni Sakonagi said in a note to investors earlier this month that Apple expects to continue buying back shares over the next five years.
“According to our analysis, Apple will continue to buy back about 3-4% of its shares until the end of 2026, increasing dividends per share by 10% each year, without taking on balance sheet net debt. Is likely to be possible. ” Sacconaghi said in a note to investors on November 17th.
Apple’s share is rising about 25% annually.
Why Apple is the only tech stock up today
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