Things are not looking up for Apple ahead of its fiscal second-quarter earnings, according to tech investor Dan Niles. Apple, which is due to report May 2, has dropped 14% this year — lagging behind other major technology stocks, such as Nvidia and Meta Platforms. Despite this pullback, the Satori Fund founder still thinks Apple’s valuation is too lofty given its fundamentals, which “haven’t been great for the last three years.” “At a mid-20s [price-to-earnings ratio], I don’t know why you would pick that name over a myriad of other names in tech that are growing revenues, earnings and don’t have the same competitive issues as Apple does,” Niles told CNBC’s ” Money Movers ” on Monday. AAPL YTD mountain AAPL year to date Niles noted that Apple’s revenue guidance for the March quarter was the same as the company forecasted three years ago. Competition from Huawei isn’t letting up either, leading to the company losing market share in key countries such as China. Apple is also lagging behind its peers in the artificial intelligence race, which is why it keeps on exploring opportunities with potential partners such as Alphabet , Niles added. “On a longer-term basis at this valuation with no growth, I don’t know why you would be bullish on it,” the portfolio manager said. Instead, Niles is turning his attention toward the sectors that have been “left for dead” outside of the generative artificial trade, although he’s still practicing a degree of caution going into the earnings season. Specifically, he’s more bullish on industrials, health care and selective fintech names. Niles has been bearish on Apple in the past. Last year, he held a short position in the stock.
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