AlphaOne's Dan Niles says he's 'glad he got out' of Apple despite earnings beat

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Hedge fund manager Dan Niles said Apple's stock is valued too highly because it is too reliant on iPhone sales.

Niles, the founding partner of AlphaOne Capital Partners, said on CNBC's "" said the company's results in its services and other products segments didn't support the stock price.The tech giant reported $4.99 in earnings per share and $91.82 billion in revenue for its second quarter. Analysts expected $4.55 in earnings per share and $88.50 in revenue, according to Refinitiv. Sales of iPhones generated $55.96 billion in revenue for the quarter, topping expectations of $51.

Apple did see soft results in its services segment, posting $12.7 billion in revenue against an estimate of $13.07 billion, according to Refinitiv. Analysts often cite services and wearables as reasons to be bullish on the company, as those segments are seen as potentially more profitable than iPhone sales and as a way to improve sales growth.

Tom Forte of D.A. Davidson said earlier on the show that the upcoming 5G iPhone could continue to drive the stock higher this year.

 

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Pretty funny, he is so full of BS it’s beyond belief. Glad he sold ~$20 ago. Yep. Sure. When his mouth moves lies spewed out. And I have no dog in the hunt, just would never trust him with a roll of nickels.

Niles offered an argument that Apple’s 24x p.e. is unattractive to him. No one on pointed out that many top stocks have high even very high p.e. ratios-at the beginning of their moves-and go higher.

Seller's remorse?

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