Apple Inc. is up about 14 percent year-to-date, but the stock may be overvalued, according to Satori Fund founder and portfolio manager Dan Niles.
“If you look at it in terms of how much they’re growing relative to the multiple, it just doesn’t make any sense,” Niles said Thursday on CNBC.
Niles thinks Apple is the most overpriced tech stock that exists: “In terms of big cap tech, it clearly is in my mind.”
Apple’s revenues compounded over the last five years are growing at about 11 percent, according to Niles. Microsoft Corp. is growing about 15 percent over the same time period, while Alphabet Inc. is growing at 23 percent, Netflix is growing at 27 percent, Amazon.com Inc. is growing at 28 percent, and Meta Platforms Inc. is growing at a 34 percent rate, he said.
“You can buy both Facebook and Google at a lower multiple than Apple,” Niles said.
Apple is also a pandemic beneficiary. iPhone, iPad, and Mac sales were down year-over-year before the pandemic hit, he noted.
“We like Facebook a lot, we like Google a lot. They’re growing two to three times faster and you can buy them at a lower multiple with faster growth rates,” Niles told CNBC.
Apple has traded as high as $157.26 and as low as $108.73 over a 52-week period.
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