Apple Needs Phones and Smart Homes to Revive Pricey Stock

Apple is rolling out new products this month, including a smart-home event with a doorbell and thermostat, a touchscreen MacBook, a new iPad mini, and foldable iPhone Duo pre-orders opening Friday, but investors doubt these can revive a stock that has been basically flat since its late-July record. The shares are up 25% this year and trade above 35 times forward earnings, near their highest multiple since 2007 and well above the 10-year average of 24. Bloomberg Intelligence reported that Apple cut component orders for some iPhone models on weaker-than-expected demand, and fund manager Peter Andersen said he is not sure the lineup is exciting enough to drive an inflection. Apple's revenue is projected to rise 15% in the fiscal year that just ended, but growth is expected to slow to 10% in fiscal 2027 and 7.8% in fiscal 2028. Still, Fusion Fund's Lu Zhang remains positive, arguing that Apple is a key distribution channel for AI with essentially no competitor.

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