Last night on CNBC’s Fast Money, the show had on BTIG analyst Walter Piecyk to express the reasoning behind his buy rating. He went on to say that nominal growth is still cheap. Should AAPL do anything with its cash, like buy Twitter, the stock could then trade at 12 to 14 times earnings. This could help monetize all these people looking at their phones.
He goes on to say that, “I think the problem with Apple right now is people are just questioning whether they can ever return to growth, whether they had a peak earnings year last year that they’ll never get back to. If you can return some level of confidence that they can return to growth, the stock will do well quickly.”
