Panelists debate whether Apple is too expensive at about 36 times forward earnings and what that signals for the durability of the AI trade. One speaker says Apple is getting too expensive, noting that Nvidia trades at 18 times forward earnings while Apple, which is not part of the AI trade, is the priciest Mag 7 stock at about 35 times. The speaker argues the market has been narrowly focused and now penalizes companies that spend heavily on growth, though part of the discount on some companies is valid. Another panelist cites a Goldman Sachs chart showing Apple's free cash flow yield relative to the Nasdaq has tended to trade in line, suggesting it may not be as expensive as many think.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
AAPLvaluationartificial intelligencetech stocks
Open a keyword to see other news on the same topic.
Related tickers and likely impact
AAPL
• NeutralApple Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Technology Hardware, Storage & Peripherals |
| Market cap | $5.1T |
| Close on 11/02/2026 | 338.32 |
| Change that session | -1.83% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- 3 reasons why the tech stock rout is growing more alarming
Tech stocks are being sold more aggressively, columnist Brian Sozzi writes, even though Apple (AAPL) posted a strong quarter with double-digit iPhone sales growth and Palantir (PLTR) reported a big quarter and outlook; both fell in premarket trading on Tuesday. Analysts remain bullish, yet investors are not buying top tech names despite valuation discounts versus a month ago and historical averages, with Nvidia (NVDA) cited as an example. The S&P 493 has also started slipping as the market recognizes that most companies are tied to the AI boom; if AI-driven productivity gains arrive more slowly than expected, the entire market may need to be re-rated.
- Are the good times over for AI stocks?
Yahoo Finance Executive Editor Brian Sozzi reviews last week’s tech sell-off and asks whether the good times for some AI stocks may be over. He notes that AI demand and big tech’s cash balances remain strong, but urges caution about buying on dips ahead of Apple’s earnings this week and Nvidia later this month. Citing Truist’s Keith Lerner, he says tech stocks trade well below their 10-year average P/E ratio as earnings expectations have been cut, while the S&P 500 trades at about 19 times forward earnings. Historically, tech sell-offs have often continued until a clear all-clear signal appears.
- Apple's new hardware push is meeting AI-worried investors at the right moment
Apple is pushing its hardware lineup to reclaim the title of the most valuable company on the stock market, briefly succeeding on Friday. The campaign, led by new CEO John Ternus, marks a shift from predecessor Tim Cook's services-first strategy and comes as the AI trade loses steam. Investor concerns over AI financing were renewed this week by Meta's off-balance-sheet spending plans of $825 billion and Tesla's estimated $100 billion chip plant, while SK Hynix paused a spin-off IPO and the 10-year Treasury yield pushed back under 5%. The new iPhone Duo launched Friday.
- From AI laggard to $5 Trillion: Apple's winning strategy
Apple has reached a market capitalization of about $5 trillion, second only to Nvidia. The company was criticized early for not spending heavily on AI like Google and other peers, and its stock fell while those rivals poured capital into the trade. Investors now reward Apple for avoiding heavy leverage and excessive capital spending, even though the stock trades at a premium to many peers. The commentators credit Tim Cook with building the services business, which they estimate at about a third of revenue, by monetizing the existing hardware base.
- Apple Stock: ‘Let the Slowdown Begin’
- Is Apple the right anti-AI stock for investors to 'hide' in?
Commentators say Apple is priced near perfection, so even strong results may not meet expectations. Investors are said to be hiding in Apple as an 'anti-AI' stock because it has not spent heavily on AI buildout, while stocks that have spent heavily have been flat this year. One speaker calls Apple expensive but says its stability earns a premium, likening its ecosystem to a utility, and notes early reviews or figures on the foldable phone are mixed. Another says he would not sell even if the stock falls, but adds that if Apple disappoints, it is unclear where investors would go.
Related markets
Latest news
- Options traders are betting heavily on these stocks ahead of election results
As prediction markets priced in a big Democratic win in Tuesday's midterm elections, options traders piled into clean-energy stocks, especially solar companies, even though the group has sold off for five months and most are down on the year. Volume in the Invesco Solar ETF (TAN) hit 40 times its usual level, with 99% of the more than 20,000 contracts traded by midday being calls, according to Cboe LiveVol data. Among individual stocks, SolarEdge Technologies traded at three times its average volume, with over 75% of trading in calls, ahead of its earnings report due before the bell tomorrow. Enphase Energy, which fell 20% after earnings last week but has since fully recovered, rose 9% on Tuesday, with volume twice average and an estimated 8,600 calls versus under 900 puts.
- CFTC Lets Traders Bet on Stocks With Crypto-Style Perpetual Futures
The U.S. Commodity Futures Trading Commission said equity perpetual futures, contracts tied to individual stocks with no expiration date, can now trade on CFTC-registered U.S. exchanges for the first time. These leveraged instruments have long been popular in crypto markets but were largely unavailable to U.S. traders until now. CFTC Chairman Michael Selig framed the move as part of a push to bring perpetual products onshore, following the agency's earlier clearance of Bitcoin perpetual futures for Kalshi this year. The stock contracts fall under joint CFTC and SEC oversight under a memorandum of understanding signed in March. Selig argued that regulated U.S. venues offer protections that offshore, often unregulated platforms lack.
- Would you let AI chatbots smear your competitors?
Speakers in this discussion examine how companies are finding ways to get AI chatbots to disparage their competitors. They note that as users shift from Google Search to chatbots, firms including financial advisers are trying to optimize their messaging so chatbots surface them, a practice called GEO as the counterpart to SEO. The panel argues that using chatbots to trash rivals could backfire on a company's reputation and turn an answer into an ad rather than an objective search result. They also warn that many users accept chatbot answers verbatim, unlike traditional search results that display multiple source links.
- Where Will Boeing Stock Be by This Time Next Year?
Boeing's backlog stands at $745 billion, including $612 billion in commercial airplanes, which the author sees as support for long-term income. Two 2027 catalysts are highlighted: a 737 MAX production ramp to 52 a month in the second half of the year, and certification and first delivery of the 777-9 variant of the 777X, a program delayed since 2020 that has tied up cash. Management expects 52 a month in the second half of 2027 and deliveries in the "mid-to-high 50s" in 2029. The author says these are reasonable assumptions though not guaranteed, and that certification would de-risk the program. The author concludes Boeing's stock could be materially higher next year.
- Eaton Just Dropped 16% in a Month. Is It Time to Sell, or Load Up?
Eaton (ETN) fell 16% over the past month, alongside GE Vernova (down 13%) and Vertiv (down 11%), after Meta Platforms raised the low end of its 2026 capital spending range to $135-$145 billion and turned free cash flow negative, raising investor concern about how the spending will be funded. Eaton's third-quarter report showed record sales of $8.9 billion, up 28%, and raised its 2026 adjusted EPS guidance to $13.70-$13.80. At Monday's close, the stock traded at 24x forward earnings, slightly below its five-year average of 25x and well under the 33x it reached in April. The author sees demand still accelerating and views the drop as a possible investment opportunity, while noting that hyperscaler spending updates are what to watch next.
- Sullivan: What the 2026 midterms could mean for energy investors
The author expects only limited near-term moves in energy stocks after the midterm elections, with investment implications mainly over the longer term. Even if Democrats win one or both chambers of Congress, the change is unlikely to meaningfully alter policy, though S&P Global says it could bring tougher oversight of agency decisions and affect tax incentives for long-term energy investments. At the state level, Gina Hinojosa in Texas supports a moratorium on new data center builds, Amy Acton in Ohio backs a conditional moratorium, and Vivek Ramaswamy calls for conditions on new construction. Bank of America says Georgia, Ohio, Oregon, Pennsylvania and Texas matter most for utility stocks, with Texas the most consequential after state environmental regulators halted data center permits. Power demand would likely stay at current levels even if some large projects are stalled or stopped, and U.S. oil production is at a record high.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.