Apple: Is The $100 Billion Deal Really A Smart Move? (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• Apple Inc. stands to save $107 billion in costs with its new $100 billion investment commitment in the US. The risk is that it may have to spend even more.
• Apple has a couple of years of strong product launch catalysts, with the thin iPhone 17 Air launching this year and a foldable iPhone and AI-powered glasses launching next year.
• Broad-based growth in Apple's services ecosystem is accretive to gross margins.
• Valuations are near relative fair value, and AAPL vs. S&P 500 technicals show a bullish setup from a major monthly support level.
• While long-term risks exist from the disruption of screenless AI-powered devices, I trust management's ability to navigate these challenges well.

Read the full article here.