Loup Funds’ Gene Munster says that Apple is “defying gravity” and “powering through the early stages” of a macroeconomic downturn.
Gene Munster for Loup Funds:
This is based on what I believe, was the most important comment from the [company’s conference on June 28th] call: Cook’s assessment that, in respect to the iPhone, “there was no obvious evidence of macroeconomic impact during the June quarter besides FX.” The segment grew 3% year over year, which is more impressive than it sounds given it was up against a monster 50% comp. The iPhone is stronger than an acre of garlic.
The conversation on Apple will soon shift to the FY23, and investors will likely conclude that Apple is in front of what will be a favorable new product year. I expect 11 new products to ship in FY23. This is more than the typical 7-9 products in a year. More importantly—looking beyond FY23—there are other potential areas of growth on the horizon, including health, AR/VR headsets and potentially something in auto. Just the hope of these potential game-changers should be a positive for AAPL’s multiple in the years to come.