Michael Kramer and the Clients of Mott Capital own the shares of AAPL
2019 is nearly here, and that means it is time to roll out my ten predictions for the new year. As I did last year, I will start with number 10 and work our way up to number 1 over the last month of 2018. Enjoy!
Prediction #3 – Apple is The Comeback Stock of 2019 and Rises 70%
Apple’s stock has fallen 33% since October from their highs. But with the Fed on hold, interest rates and the dollar falling, and oil rising, the stock markets risk appetite comes back in a big way in 2019. Not only that but once again Apple proves the skeptics wrong and the iPhone Xs, X max, and Xr will deliver record-breaking iPhone revenue when the company reports fiscal first quarter results in February.
On top of the strong iPhone revenue, Apple services continue to show strong growth and impressive gross margins. Investors finally realize that Apple is more than just a phone maker, but a consumer services business. As a result, investors finally re-rate the stock, boosting its PE ratio to 20 times forward earnings, in line with other consumer stocks.
The result is a stock that recoups all of its losses, reclaims the crown of the most valuable company and a market cap of over $1 trillion. Shares end up rising to roughly $265, an increase of 70%.
It makes Apple the comeback stock of the year and our prediction #3 for 2019.
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Amazon, stock, predictions, predict, 2019