Apple shares reached a fresh all-time high this week as the company prepares to report fiscal third-quarter results on July 30. Analysts expect revenue to rise 16% and earnings per share to climb 20%, continuing a streak of double-digit growth across all geographic segments and record services revenue. The stock has surged 58% over the past year and now trades at 35 times next fiscal year's earnings estimates, raising valuation concerns. While momentum and a recently authorized $100 billion buyback program support the bull case, historical revenue growth patterns show that double-digit expansion has rarely repeated in consecutive years since 2011. The author, a long-term Apple shareholder, argues that near-term upside may be limited given elevated expectations and a rich multiple.
Apple Inc.Stock at all-time high ahead of earnings; buyback supports but valuation concerns limit upside.