Apple (AAPL) Stock: Major Buyers Stepping In At $90

Google’s stock continues to break down: Now $330 and still falling.  A number in the $200s is perfectly plausible for that one.

Apple, on the other hand, is being snatched up whenever it falls below $90.  To reiterate what we said two days ago, the first time this happened:

  • Apple has $23 a share of cash (and no debt).
  • Excluding this cash, the business itself is valued at about $58 billion (at $90)
  • This is less than 10-times trailing free cash flow of $6 billion.

That’s trailing free cash flow, not some analyst dream.

Will Apple get hit by the global slowdown? Yes, we think so. Could the stock go lower? Of course. Does Apple need a succession plan? Yes.

But…Will Apple get crushed in a slowdown? We would be shocked if it did. Is a major slowdown in the stock at $90 a share? We think so.

So we can certainly understand why some big buyers are hoovering up the stock every time it breaks $90 a share.

See Also:
Apple’s Stock Falls Below $90
Google’s Moment of Truth: Stock Breaks $350

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