$AAPL Is Not $GOOGL 2025 — Expensive, AI-Dependent, and Strategically Behind

AfraSimon
01-16 09:16

" $Apple(AAPL)$ stock in 2026 is what $Alphabet(GOOGL)$ was in 2025."

Dan Ives is bullish on APPL and is supportive of its recent Gemini deal with $GOOGL.

I don't see the comparison, though. At the 2025 lows, GOOGL traded for a P/E of 17, despite 10%+ Revenue growth.

Today, APPL trades for a P/E of 37, despite only 8% top line growth estimates.

AAPL is a zero in AI, and it seems they are throwing in the towel and will just partner with the best provider, and today that might be Gemini.

This seems like a shortsighted decision to me.

Yes, they are saving billions in R&D and capex today, but at the cost of possibly hundreds of billions of future revenues.

I don't believe that depending on GOOGL for such a critical piece of the ecosystem is a wise strategy. What incentive does Google have to make iPhones better?

Lastly, being a zero in the next technological revolution doesn't bode well for their future. GOOGL $Tesla Motors(TSLA)$ $Amazon.com(AMZN)$ $Meta Platforms, Inc.(META)$ are building AI services with huge potential, AAPL is not.

Spending $100B on buybacks at such a critical time is maddness.

For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.

🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now

Find out more here.

Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.

Click to access the activity

Other helpful links:

Three Week Loss? Is Apple Abandoned or Turned Into a Buying Opportunity?
Apple has reclaimed the No.1 spot in global smartphone shipments, even as its stock has fallen for six consecutive weeks. Rising global memory chip costs are adding fresh pressure to Apple. Prices for key storage components are reportedly up ~230% since early this year. Apple shares have now fallen for three straight weeks, lagging the AI rally as investors wait for meaningful AI integration—especially in Siri. With component costs surging, will iPhone 18 pricing hurt demand or protect margins? If AI features fail to materially upgrade Siri, does Apple risk falling further behind AI peers?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment