Key Points
The stocks 50% rally this year driven by investor bets that the iPhone maker will continue to churn out big profits regardless of the health of the economy has also left it in expensive territory..
Its priced at 29 times profits projected over the next year, nearly double its 10-year average valuation.Agencies..
Apple Inc. added nearly $1 trillion in market value this year..
The biggest risk for the business model of the megacaps right now is money rotating to other names, said Eric Clark, a portfolio manager at Accuvest Global Advisors, who has trimmed his position in Apple and some other big tech stocks...
Clark notes such megacaps that face higher valuations, slower growth and tougher year-on-year comparisons may see investors divert funds to other areas that I think might have more upside for 2024...
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