It's Time To Sell Apple Stock. This Is Why.

While many people still have Apple (Nasdaq: AAPL) Stock, I think it's time to let it go. The share has been a great artist in recent decade, but all his recent profits are due to investors who offer the share, rather than the actual business performance.

Apple has produced a number of very silly quarters in the last three years and there is no indication of any growth on the horizon. As a result, it is only a matter of time before the market corrects itself and Send Apple to a more reasonable price level.

Apple does not need any introduction. It is one of the most popular technical brands worldwide, but especially in the US, the product ecosystem that it has built is unparalleled and many users.

However, Apple seems to be behind in one of the most important technological varieties to date: artificial intelligence. A large part of Apple's income comes from iPhones, and the AI function, Apple Intelligence, leaves much to be desired compared to its Android competitors. This was clear in the first quarter of a tax year 2025, which ended on December 28, 2024. Apple's Q1 includes the most important holiday area when most iPhones are sold. If the iPhone sales in Q1 is enriched, it is clear that the latest launch was successful. If they remained flat, it is clear that the phone has brought nothing new to the table.

With the help of this measure it is safe to say that Apple has not moved the needle for a while.

Year	iPhone -Income
2024	$ 69.1 billion
2023	$ 69.7 billion
2022	$ 65.8 billion
2021	$ 71.6 billion
2020	$ 65.6 billion

Data source: Apple.

The iPhone income from Apple has really not gone anywhere for a period of five years. This gets even worse when you take inflation into account, because the $ 65.6 billion in iPhone sales during the holiday quarter in 2020 is equal to $ 79.5 billion in 2024 dollars.

So, based on inflation, the iPhone sale has fallen over the past five years. Now that the iPhone sales are 56% of the turnover, this is not a good sign for Apple.

In general, the turnover of Apple year after year increased by 4%, but thanks to efficiency improvements, the profit per share (EPS) increased by 10%. This shows that, although Apple has no growth, management does excellent work to maximize profitability.

However, that type of growth is essentially market average, so the share should act on what the broader market does.

Although Apple's financial performance is essentially market average, its shares are appreciated as those of the next largest growth company.

Apple shares acts no less than 36 times behind and 31 times forward income.

Aapl PE -Ratio -Grakiek — AAPL PE -Ratio data by Ycharts. PE = price gain.

Compared to the S&P 500Those 25.5 times deals with a profit and 22.3 times forward income, Apple has a premium of around 40% compared to the market.

Now I will buy the idea that Apple has to govern a premium because of the incredible brand value, but 40% is far too high a premium for only brand value.

There are much more attractive investments than Apple, because several companies act for a cheaper price tag and have a stronger growth than Apple. Here are only a few:

Company	Forward p/e	Last quarter diluted the EPS growth
Nvidia	26.2	111%
Taiwan semiconductor	22.2	54%
Meta platforms	27.6	52%
Salesforce	30.2	35%
Alphabet	22.4	21%
ASML	29.4	30%

Data source: Ycharts.

These are all much more attractive investment options than Apple and represent growth at a reasonable price.

If a final ending point, if you own an S&P 500 index fund, you already have almost 7% of the fund in Apple shares. That is already an important weighting, and further exposure to a company that does not produce spectacular results, is not a sensible investment strategy.

There are far too many other promising companies to waste time with Apple as an individual company. As a result, I think it's time to continue with Apple Stock and to concentrate in more promising areas.

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More information »

*Stock Advisor Return on February 3, 2025

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and Sister of Meta Platforms CEO Mark Zuckerberg, is a member of the Motley Fool's Board of Directors. Suzanne Frey, a director of Alphabet, is a member of the board of directors of the Motley Fool. Keithen Drury has positions in ASML, Alphabet, Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has positions and recommends ASML, Alphabet, Apple, Meta platforms, Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

It's time to sell Apple Stock. This is why. was originally published by the Motley Fool