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Investing in APPLE (AAPL) to Profit From AI Machine Learning Stocks

Companies / Apple Jun 20, 2019 - 12:17 PM GMT

By: Nadeem_Walayat

Companies

Where to invest to profit from the exponential machine intelligence mega-trend. I have ranked these stocks in in terms of risk vs reward and volatility. Do remember that when investing in the stock market that your capital is at risk. There are NO SURE BETS!

If you've not already done so then watch my following video from November 2016 which illustrates why everything will start to change exponentially by 2021.


Machine Intelligence has become a broad church that has fragmented or branched off into a myriad of sectors and the number keeps expanding every year. Many years ago I broke the machine intelligence mega-trend down into 9 key sectors that I have now further fragmented into 10 by basically adding Cyber Security as the following list illustrates, the 10 key machine mega-trend sectors to invest in.

Machine Intelligence Investing Mega-trend

For a primer on how to invest in AI Stocks then see my following recent video:

How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend

Top 10 AI Stocks

The stocks are ranked in order of priority. Also to further break down the list, I consider the first 5 stocks as PRIMARY i.e. the most important. The next 3 as of SECONDARY importance and finally 2 far more risky TERTIARY stocks.

The stocks analysis is being published in reverse order (10 to 1) as this analysis has first been made available to Patrons who support my work: https://www.patreon.com/posts/top-10-ai-stocks-25779914

So for immediate First Access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $3 per month. https://www.patreon.com/Nadeem_Walayat.

5. APPLE - AAPL

The Apple stock price only really came alive after the financial crisis with its series of pocket super computers, the Iphone's! Since which time it's been off to the races, for those who bought Apple stock during 2009 will today be sitting on a TEN fold increase BEFORE dividends, which illustrates just how far Apple has come from a company that was a small computer / gadgets company on the brink of collapse or being swallowed up by a larger corporation. In fact Apple was saved by Microsoft during the late 1990's from the brink of bankruptcy with a £150 million investment which Microsoft sold before the Apple stock price took off.

Apple under Steve Jobs successfully reinvented itself as a highly successful pocket super computer corporation even if personally I think the iPhone's on a price performance basis are inferior to for instance the Samsung galaxy range.

Apple Financials

Current Price $190  
Market Cap $895bn  
Enterprise Value $924bn  
Total Cash $86.3bn  
Net Income $59.5  
P/E Ratio 15.3  
Forward P/E 14.9  
Dividend Yield 1.54%  
Sales Growth 16.3%  
Price to Sales Ratio (lower better) 3.42  
Price to Cash Flow Ratio (lower better) 14.38  
PEG Ratio (lower better) 1.26  
Debt to Equity (lower better) 106.85  
Stock Price 3 Year Change 73%  
Ratio to S&P 190%  

 

Apple appears to be loaded with a lot of debt despite having a large cash mountain. Net income is good, as is the PE ratio, whilst sales growth has been slowing which means that Apple may be heading for a rough patch, a case of battening down its hatches for a year or so. On the flip side Apple does pay a small dividend that tends to increase most years.

Trend - The Apple stock price tracks the S&P quite closely in terms of trend. Recent price action has been one of under performance which is reflective of the general nature of the overly saturated smartphone's market which is likely to persist. The stock is volatile having fallen 40% from its 2018 high of $230 to a low of $140 before recovering to $190. So do expect greater volatility when investing in Apple.

Long-term Investing - Even after it's recent sell off Apple is up a 73% over the past 3 years. And as I mentioned earlier up 10 fold over the past 10 years. So definitely worth investing for the long-run if one can stomach the volatility.

Conclusion - Apple is is definitely another good AI machine intelligence mega-trend investing stock to hold as long as one is prepared for a potential roller coaster ride that could see gaps of as much as 40% between peaks and troughs as we have witnessed over the past few months.

Again this the whole of this analysis has first been made available to Patrons who support my work: https://www.patreon.com/posts/top-10-ai-stocks-25779914

So for immediate First Access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $3 per month. https://www.patreon.com/Nadeem_Walayat.

Your analyst

Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2019 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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