On August 15th 2016, I made an appearance on CNBC’s Closing Bell program where I was the bear on the panel discussing whether investors should be buying Apple right now and simply ignore all the bad news lately. I have been warning readers for many months that Apple’s best days are behind them. For years, bullish analysts come on TV and claim that great products are in the pipeline and the next refresh cycle will be amazing, but new Apple products continue to fall short. It’s hard to ignore the fact that Apple has been struggling lately and shares are still down nearly 20% since April 2015 and is trading near levels seen all the way back in 2012.
Here is the video clip and a summary of the discussion created by The Street about my CNBC Apple debate:
By Natalie Walters
Aug 15, 2016 5:10 PM EDT
Piper Jaffray senior research analyst Gene Munster and Dohmen Capital Research Group founder Bert Dohmen debated whether investors should buy Apple (APPL) stock.
NEW YORK (TheStreet) — Piper Jaffray senior research analyst Gene Munster and Dohmen Capital Research Group founder Bert Dohmen appeared on CNBC’s “Closing Bell” on Monday to discuss the pros and cons of buying Apple stock.
Apple outperformed the market in the past month, gaining 11.01% vs. the S&P 500’s 1.31% gain for the same period, CNBC’s Kelly Evans reported.
Munster says Piper Jaffray has about a 40% upside for its $151 price target, based on new products, including future releases in the augmented reality and automotive sector.
“That gives some optimism for investors that this isn’t just a one-year trade. There’s some ground work that could help it get into big growth markets in the future,” Munster explained.
On the other hand, Dohmen said he has a negative view on Apple because its revenues and profits have fallen every quarter since late 2014 and “the deterioration is accelerating.”
iPhone sales were down 15% in the last quarter and profits were down 27%. Even in China, which was supposed to be a “big money maker” for the company, sales were down 33%. Dohmen said.
“This is the kind of stock I wouldn’t touch with a 10-foot pole. I mean you’ve got to be deaf, dumb, and blind to buy this,” he said.
Munster responded by saying investing is all about future optimism.
“That would be constructive if we bought stocks based on things that happened in the past, but I think investors tend to look at what goes on in the future,” he explained.
While Apple had a difficult period, that doesn’t weigh on its ability to turn out “great devices,” Munster concluded.