Meet Kevin on $AAPL (Nov 3, 2026)
Apple is liked but not cheap: Wall Street expects 9% growth, while the speaker expects 16–20% as the latest quarter included only one week of Mac Studio sales; he puts it near a PEG of 2. Gross margins rose to 39.3% from 36.8% despite memory costs, free cash flow is double Palantir's, and he suggests a small allocation.
Jump to any passage
Big companies like AMD, Apple, Intel, and of course companies like SuperMicrosoft and others, have just announced their earnings,
Apple has twice the cash flow yield of Palantir.
No problem. Connect my two Mac Studio computers together. This makes you feel you are being fair to Apple, as Apple has just announced its profits and is expanding its pricing power at a time when memory prices are skyrocketing.
This then makes you wonder, wait, how does Apple increase its profit margins during that time? I must say that I don't know , but they are succeeding at it. Look at their income statement here.
You can see that the gross profit margins for Apple products are 39.3%. Last year, it was at 36.8%. So you have a tangible improvement in margins despite , or should I say despite, the skyrocketing rise in memory prices.
Even their service sector margins have increased. That's the power of pricing. This is impressive.
Apple , AMD, and SuperMicrosoft have outperformed in profits, significantly so, and have raised their expectations for the number of servers they will install.
Nvidia chips, Apple computers, and on ASIC circuits
Okay, I'll tell you. AMD and Apple, I love them. I have investments in both of them. They are not the cheapest options at the moment. Apple has a very high valuation based on Wall Street estimates, although I think their figures would be wrong.
Wall Street expects Apple to grow by only 9%. I think that will be much higher. Their latest earnings report included only one week of sales for the new "Mac Studio" device. They will achieve growth that exceeds all expectations.
Therefore, I estimate their growth to be between 16 and 20 percent approximately. I would place them closer to a price-to-earnings growth (PEG) ratio of two. But they also have a very strong balance sheet, and solid cash flows, you know, double the free cash flow of Palantir, which is very good.
So why am I bringing this up? Well , if Apple is around 2.1 to nearly four depending on whose estimates you use,
So, Apple was at level two based on a higher growth rate .
Instead, invest a little in Marvel, a little in Broadcom, a little in AMD, a little in Apple , and a little in Nvidia.
What this channel has said about $AAPL
Meet Kevin has 23 calls on this stock; only the adjacent ones are shown.