Mirror, mirror on the wall, who is the juiciest Big Tech short of them all? OMG Apple (AAPL)!
Let me dissect the case before I am roasted alive for investment heresy: AAPL trades at an even more expensive valuation multiple than Nvidia at 30X earnings. The only problem is that NVDA’s revenue growth is on a triple digit hot streak as end demand for its AI training/inference GPU chips is on fire while AAPL delivered precisely zero revenue growth in 2023 and a pathetic 2% in 2022. Pardon the silly pun, so what’s cooking in Cupertino? When I came back from Istanbul in late October, AAPL traded at 170. Three weeks later on Gobble-Gobble Day, I dive into turkey, cranberry sauce and pumpkin pie to find out that AAPL’s price tag is now a nosebleed 190. Pour-quoi exactement mes chers amis? I can give you no other credible answer than the classic Thai word “bubbly-bubbly” and I bet you, your next French gourmet meal at La Bikanerwala that this 20 point rally will be reversed early 2024.
