Apple has held up pretty well during this downturn. I feel like eventually it will have to take a hit like all the other Tech names. What do you guys think?
It's insane to even think about. Apple is the most valuable company in the world, with tremendous brand recognition. Its users are extremely loyal, and Apple users will never switch over. They make great products, and Tim Cook is very competent.
On top of that, its customers are wealthier, and therefore Apple can withstand a recession. Nobody who can afford a $1,000 phone is going to bat an eye if they raise the price by 10%. Apple is also going to enter the car market, and the excitement over that is holding up the stock.
To top it all of, inflation is coming down, and the Fed is expected to cut interest rates somtime soon. The market will anctipate this in advance, and when they happens, all tech stocks will sharply bounce back.
Shorting Apple makes no sense, when you can short riskier stocks of less quality, and which are overvalued. Tesla was the best stock to short last year.
Apple is Warren Buffet's biggest holding for a reason.
Apple's PE ratio is very low for such a valuable tech company: 20. Amazon, on the other hand, has a PE ratio of almost 80. With Bezos, gone, Amazon is definitely better to short than Apple.
Apple has held up for a reason. If it hasn't crashed even during this extreme stress test, it's highly unlikely it will crash during the recovery phase that we are entering in.