Apples Overpriced Stock: Is the Premium Justified?

Despite a recent dip in Apple`s stock price, the author believes the company`s current valuation is too high to justify buying shares. Although Apple is a popular brand, its reliance on high-end electronics makes it vulnerable to economic downturns, as evidenced by its recent sales struggles. While its services division provides some stability, the author argues that Apple`s overall performance, characterized by poor revenue growth and inconsistent earnings, does not warrant its premium valuation. The author contends that Apple`s current valuation is comparable to its price in early 2021 when its performance was significantly stronger. While the potential success of Apple Intelligence is acknowledged, the author remains unconvinced that it will be a significant enough catalyst to justify the current stock price.