Is Apple a Buy?
Its sales are falling… its technology is lagging… and its most recent product hasn’t lived up to expectations…
Yet shares of Apple Inc. (AAPL) are on the rise.
Needless to say, our team has had a lot to say about the company — arguing whether Apple’s stock will continue going higher… or if it’s about to flame out.
We’re also looking at several smaller businesses that could bounce higher as Apple moves to correct its missteps.
I’ll share some of our research in a minute… including how to apply it to your portfolio.
But first, let’s take a look at our top stories and the Reader Forum.
Your Top Stories & Analysis of the Week:
- “The Easiest Way to Make a Killing in Crypto” (Altucher Confidential, Chris Campbell): The cryptocurrency markets are getting wild again, with investors overreacting to every new sensationalized headline. So Chris takes a look at the three biggest drivers of today’s crypto fear, uncertainty and doubt (FUD) — and reveals the truth lurking behind them. His rationale for keeping a cool head made this our most-liked free story last week. And his perspective will help you ride out any turbulence ahead!
- “Why ‘Bad’ Earnings Spark Big Rallies” (Morning Reckoning, Greg Guenthner): Earnings for Tesla Inc. (TSLA) came in far below expectations, yet its stock shot higher. Then Facebook parent Meta Platforms Inc. (META) saw its shares plummet after announcing great earnings. As Greg points out, mismatches like this happen all the time — yet many investors have no idea why. So he explains the psychology that drives them… as well as how to capitalize on these counterintuitive moves.
- “AMD Goes on Sale” (Altucher’s Investment Network, James Altucher): Shares of Advanced Micro Devices Inc. (AMD) also fell after positive earnings. And as James recently told his Investment Network readers, it’s because traders were expecting the company to perform an overnight miracle. The current overreaction creates another great opportunity for you — like the “Nvidia Corp. (NVDA) Killer” concept we talked about last week. James’ in-depth analysis made this our most-liked story last week… and there’s still time for you to benefit from his research. So it was an easy decision to unlock it for you.
Remember, we publish tens to HUNDREDS of stories. The write-ups above are our TOP ones for the week — including one that had been roped off from the public. If you want to stay ahead of the pack, make sure you’re caught up now.
And if you’d like to nominate any of our stories for next week’s “Top 3,” just let me know at concierge@paradigmpressgroup.com.
The Reader Forum:
First from the mailbag today, Ryan O. used the concierge@paradigmpressgroup.com inbox to tell us:
I cannot stress how much I enjoy reading Sean Ring's articles. His writing demonstrates a commitment to connect with his readers and to bring a fresh perspective other than the garbage the mainstream media spews out.
Thanks for the letter, Ryan. I can’t think of a better way to compliment Sean on his third anniversary at the helm of Rude Awakening.
Hopefully you’ve also been keeping up with him every Thursday at the Morning Reckoning, too.
And I’ll admit, he’s always a contender for our Top Stories of the week, with several members of our team nominating his work. (Make sure you check out this May 2 writeup!)
In fact, I sometimes wonder if we should spotlight four tops, just to give him a permanent berth. Or you can keep nominating his stories, too.
In the meantime, I look forward to sharing this with Sean!
Next up, Larry F. left a five-star Google review to say:
Paradigm has a great team; their market analysis is 5 stars. I would recommend all of the publications. The membership has more than paid for itself. I am very pleased.
Thank you, Larry, for taking the time to leave such a glowing review! We do have some of the best financial analysts you can find… and it’s great to hear that they’ve helped you achieve success.
Hopefully your words will convince others to join our community. You can bet I’ll be sharing this with everyone at Paradigm!
And finally for today, IP tells us:
I could use more ticker symbols without all the preliminary fanfare and lengthy videos that follow. I trust James and his team so much — all I need is the symbol and I'll see what I can do. I am sure you have done all your due diligence and research. But really, having to go through a video presentation just to get some piece of info is too much for me.
I appreciate you speaking your mind, IP! And I’m glad to hear that you have so much faith in our recommendations.
But keep in mind, not everyone is willing to take our word for things. A lot of people don’t know us at all.
So our video presentations need to explain who our experts are and why their research is worth paying attention to.
Whenever possible, we provide written transcripts of our events — giving you a chance to skim it for tickers. But our live events tend to be off-the-cuff, making it impossible to put a transcript together ahead of time.
In most cases, however, you will have a chance to review it after the broadcast!
That wraps up this week’s Reader Forum.
Remember, your feedback is vital to our success… so please email me at concierge@paradigmpressgroup.com.
Questions? I’ll get answers! Comments? Let me hear them! Problems? I’ll try to solve them!
This is YOUR forum!
(And don’t forget, we also have a FREE library of introductory investment guides on our Wealth Desk. For customer service issues, please use our contact page.)
Now, here’s what’s happening around the water cooler this week…
The Water Cooler — Upcoming Events and More
Last Thursday, Apple released its latest earnings report. The numbers showed lower product sales and income.
And that’s not the only trouble at the company. While we had high hopes for its Apple Vision Pro, the company is slowing down production due to low demand.
Then there’s the fact that Apple is still lagging in the artificial intelligence (AI) race. Once a dominant tech player, it’s now playing catch-up to rivals like Microsoft Inc. (MSFT) and Alphabet Inc. (GOOG).
You’d think all this would be enough to sink Apple’s share price.
Instead, the stock jumped $10 after the news came out… and is less than $15 away from hitting a brand-new all-time high.
That’s mostly because Apple announced a massive share buyback program — planning to spend $110 billion to reduce the supply of its stock in the markets. That naturally makes each remaining share more valuable.
But it’s not necessarily a good thing.
“It is destructive to shareholder value,” says our Dan Amoss. He points out that with high interest rates, Apple has to borrow money at 5%, then buy back shares that have a 2-3% free cash flow yield.
In other words, Apple is essentially losing money on every share it takes out of the markets.
Byron King agrees. Buying back shares “takes company cash and pays it out to people who want to sell their stakes,” he says.
“Apple has nothing better to do with that money?” he asks. “No research and development? No growth projects?”
Bob Byrne, one of James Altucher’s top analysts, also thinks there are better uses for Apple’s money.
“Apple’s topline revenue hasn’t moved much in three years,” he tells us. “The company needs something to get things moving.”
The good news is that Apple still has a ton of cash in the bank — even with its ill-advised buyback plans.
So our team is looking for smaller companies that Apple might team up with… or buy out altogether.
We think the company’s management will hold off any announcements until mid-June, which gives you a window to position yourself before the news comes out.
Expect more details as we dig deeper into the impending catalysts
You might also have a chance to ride Apple shares higher, too — at least for a little while.
As our Alan Knuckman points out, Apple’s price chart is showing signs of a “bullish divergence.”
He calls it a “signal of internal shift,” meaning bulls look ready to start buying again.
While that doesn’t necessarily mean you should expect long-term gains from the stock, it could be an opportunity to collect shorter-term gains using call options.