Apple's Value Remains Remarkably Stable

Apple's value measured by its market capitalisation is currently only around 6 % off its most recent peak.

And the Nasdaq Composite is down by 12 %.

The market seems to regard Apple as a safe company, which is a bit of a contradiction for a technology company given the usually very high stock market risk or volatility of the public technology companies' equities.

I think the reason is that Apple Inc.'s iPhones, Macintosh computers, iPads etc. are so deeply ingrained into the fabric of our modern day society, that it is extremely difficult to dislodge Apple from its oligopolistic perch in the premium mobile phones market. Or as Warren Buffett would put it, Apple is currently the epitome of durable competitive advantage. Actually around half of Warren Buffet's Berkshire Hathaway stock portfolio is invested in Apple's stock. Apple's position in Berkshire's portfolio grew mainly due to the Apple stock price outperforming the main stock market indices.

What is more, riding on its hardware  Apple's services, mainly the App Store are growing in terms of revenue even faster than the Cupertino based company's hardware business.

I actually doubt that Apple has such a competitive edge, so as substantiate the relatively small fall in the price of Apple's stocks. I personally believe Apple stocks's outperformance in the recent weeks is due to the fact that many buy and hold institutional investors hold a large part Apple's outstanding stock.

That said, many forecasted a new project started by Apple like an autonomous car keep the company valued richly and similar to a technology start up.

Actually, I think Apple's Macs and iPad tablets will be one of Apple's growth divers in the future. The coronavirus pandemic and the current military crisis are making people consume more and more content on computers and tablets. And Apple has an excellent and very profitable business in both Macs and tablets.

It remains to be seen if the management of Apple can execute the company's strategy in a good manner now, but also in the future.

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