Apple is Overpriced According to This Tech Investor

Paul Meeks, a tech investor who is the portfolio manager at Independent Solutions Wealth Management, believes Apple may be overpriced.

According to his calculations, the stock is worth a lot less than $290 a share.

“I value the company at about $170 a share, believe it or not,” Meeks told CNBC’s “Trading Nation” earlier this week. “We’re talking about a company that based on my model is about $100 per share overvalued.”

“People are excited, perhaps too much so as the company transitions from a hardware product iPhone-dominated company to … software as a services company,” he said. “The stock is overpriced.”

In 2019 Apple has soared over 80%. Analysts have 20 buy ratings versus six sell ratings per FactSet. Ten analysts are neutral on the stock.

Meeks has predicted that the iPhone maker will have some disappointing quarterly reports.

“The last time that we saw nice growth in global smartphones was back in 2015,” he said. “It’s not healthy. It’s not a growth market.”

“The iPhone business continues to deteriorate,” Meeks said. ”[It’s] very akin to the slowdown in maturity that we saw in the PC market as we kind of went from the ’80s to the ’90s.”

Disclaimer: We have no position in Apple Inc. (NASDAQ: AAPL) and have not been compensated for this article.