Fast Money Traders Debate: Has Apple Regained Its Mojo?

Apple's Recent Performance and Market Position

• 💡 Traders are debating whether Apple has regained its mojo, with some seeing positives in exceeding expectations for service revenue and iPhone sales in China.
• ⚠️ However, a significant overhang remains the lack of a clear AI strategy, which is seen as a barrier to truly calling Apple a tech leader again.
• 📈 While Apple's stock has seen a recent move higher, it's noted as one of the worst performers among its super-cap brethren over a longer period.

Overhangs and Valuation Concerns

• 📌 Key overhangs like tariffs and China sales are seen as temporarily sidelined, but the AI question is still outstanding.
• 📊 Valuation is also a concern, with Apple trading at a premium to the S&P 500, despite solid but not exceptional EPS growth and free cash flow yield.
• 🔒 The stickiness of the Apple ecosystem is acknowledged as a factor that warrants some valuation premium.

Contrasting Views on Apple's Future

• 🚀 One perspective suggests that no AI is priced into Apple's stock, and it's trading at a more reasonable valuation relative to its own history and the broader tech sector.
• 📉 Another view is to fade the recent move, arguing that the stock's underperformance relative to the S&P 500 and tech sector over three years indicates a lack of participation in the current market rally.
• ✅ Despite underperforming for three years, some traders express a more positive sentiment towards Apple now, citing its underperformance as a reason to like it and seeing the China overhang as a more significant past drag than a lack of AI.
• 🗣️ Tim Cook's handling of geopolitics is highlighted as a positive, and the iPhone refresh cycle is seen as continuing independently of AI developments.