Apple shares will continue to grow faster than the economy, says the investor
The Apple logo will appear on the Nasdaq MarketSite just before the opening clock in New York on Thursday, August 25, 2011.
Scott Eells | Bloomberg | Getty pictures
Apple’s market value will continue to rise beyond the $ 3 trillion milestone it reached on Monday, according to an investment manager, who claimed the stock̵[ads1]7;s valuation is justified.
Patrick Armstrong, CIO of the investment management firm Plurimi Group, expects Apple’s stock price to continue to grow faster than the economy as a whole. The IMF expects the US economy to grow by 5.2% in 2022, while the global economy will grow by 4.9%.
“I do not think it will be a stock that will double very quickly,” Armstrong told CNBC “Squawk Box Europe” on Tuesday, but added that it will “grow faster than the economy.”
In August 2018, Apple became the first listed US company to reach a value of 1 trillion dollars, and the market value has tripled in less than four years.
“Apple is an incredibly positive company when it comes to cash flow generation, earnings, market share, profit margins. It’s almost ideal when you look at all these calculations,” Armstrong said.
Microsoft is valued at $ 2.5 trillion, while Amazon and Google parent Alphabet are valued at $ 1.75 billion. Some analysts have questioned whether Apple is overvalued, but Armstrong said the iPhone maker’s market value is not as “high” as some other companies.
“It’s an incredible company that trades at a premium multiple,” he said. “I do not think there is anything strange about it. I think large companies should trade at premium multiples. I do not think you are in the extremely high multiples that some of the other companies are.”
Armstrong said he sold Apple shares in February last year before buying more during a fall in December.
Not everyone is equally positive about Apple right now.
Emma Wall, head of investment analysis and research at Hargreaves Lansdown, told CNBC’s “Squawk Box Europe” on Tuesday that it is probably not the time for investors to buy Apple or Tesla shares.
“If you already have exposures to them, it’s not a bad thing to take any gains, but to keep those exposures in a diversified portfolio,” she added.
