Apple: China Remains The Biggest Risk
The company has a Chinese business worth in the $45 billion range in FY19 partially at risk due to these trade tensions.
The 2018 holiday results were crushed by abnormal results in China, while numerous other countries hit all-time record revenues.
Any China hit would place Apple EPS estimates at risk due to a cut to FY20 revenue growth.
The stock doesn't offer the ideal value at all-time highs with these risks.
As Apple (NASDAQ:AAPL) trades around all-time highs, the tech giant appears to have another China problem similar to last year. The U.S. government remains in a major trade war with the Chinese despite promoting major progress at negotiations last week. Several companies ran afoul of the Chinese government officials recently leaving a company like Apple vulnerable to losing one of the largest markets for the tech giant. My long-term investment thesis remains bullish, but buying the stock here while facing a China problem is a different story.
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