Apple Inc (AAPL)

The focus isn't on hardware, but the 1.1 billion user base globally. So, services, cross-selling and subscriptions are an opportunity here. Key point: folks are feeling a little better about the market. Consumers are resilient and enterprise is doing relatively well. Apple is up 19% YTD and trading at a premium. He isn't sure about 36% upside from here, though. Apple is a sentiment call.

They won't be immune from consumer weakness, though it's still fine to own it. However, the phone companies subsidize Apple which absorbs some of that weakness.

She just trimmed MSFT and Apple. Still likes tech, but took profits to fund other stocks in industrials and health care, which could lead the second half of 2023. Interest rates will still pressure tech. Apple, a large holding at 5%, has near-term concerns regarding China. Long-term, she could re-buy these shares.

Issues such as China and supply chains are transitory. People are missing the big picture. Services will be around $136B business in the next 2-3 years. Wearables will be at least $70B. These will balance out the cyclicality of the hardware side. Buying back shares. China's coming back online. Manufacturing has moved beyond China. Incredible brand, great pricing power. Yield is 0.64%.

One could argue that Apple shares should be falling after it reported an EPS miss last week of $1.88 vs. the expected $1.94, and $2.10 a year ago. Further, the company reported a 5.5% decline in revenues, based on $117.15 billion in the last quarter. However, Apple did top estimates in its previous three quarters. Read 3 Deep Value Stocks to Buy Now for our full analysis.