The Dow’s best-performing companies this year could come under pressure in 2020. Paul Meeks, a technology investor, has warned that Apple’s record performance in 2019 could put investors at risk. According to his calculations, the iPhone maker’s share price is well below its current level of about $290.
“My valuation for Apple is about $170 a share,” Mr Meeks said on Monday. According to my model, Apple is overvalued by about $100 per share. ”
“People are probably too excited about Apple’s transition from an iPhone-focused hardware product company to a software-based service company. Apple’s stock price is too high. He said.
Apple’s share price has soared 85 per cent so far this year. According to FactSet, analysts have a buy rating of 20 and a sell rating of 6. Ten analysts were neutral about the stock.
Meeks, however, was cautious. He expects Apple to report some disappointing results in the next year or so, which will lead to a sharp correction in share prices.
“The last time we saw a healthy growth in smartphones around the world was in 2015,” he said. (Current growth) this is not healthy. This is not a growth market. ”
Meeks had a negative attitude toward Apple in April 2019. The stock has since risen 43 percent. He has no plans to buy more Apple stock unless the share price falls at least 40 percent from current levels.
“The iPhone business continues to deteriorate,” Meeks said. “