In a note to clients, Goldman analyst Rod Hall wrote that the company’s growth rates “aren’t consistent with the narrative that has driven the stock to its highest premium vs. the S&P 500 since 2011,” and that other tech giants like Amazon and Microsoft “are delivering the numbers and yet are valued at about the same multiple as Apple.”
“The iPhone is a very tough act to follow,” and Apple’s services and wearables businesses are “not likely to be large enough to return the company to growth,” Hall said, adding that while the company and his team “are not permanent bears” on the stock, “we simply would like to see a consistent string of beat and raise quarters from Apple that match the growth narrative.”
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