Apple Inc (NASDAQ: AAPL) is up about 14% year-to-date, but the stock may be overvalued, according to Satori Fund founder and portfolio manager Dan Niles.
"If you look at it in terms of how much they're growing relative to the multiple, it just doesn't make any sense," Niles said Thursday on CNBC.
Niles thinks Apple is the most overpriced tech stock that exists: "In terms of big cap tech, it clearly is in my mind."
Apple's revenues compounded over the last five years are growing at about 11%, according to Niles. Microsoft Corp (NASDAQ: MSFT) is growing about 15% over the same time period, while Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) is growing at 23%, Netflix Inc (NASDAQ: NFLX) is growing at 27%, Amazon.com Inc (NASDAQ: AMZN) is growing at 28% and Meta Platforms Inc (NASDAQ: FB) is growing at a 34% rate, he said.
"You can buy both Facebook and Google at a lower multiple than Apple," Niles said.
Apple is also a pandemic beneficiary. iPhone, iPad and Mac sales were down year-over-year before the pandemic hit, he noted.
"We like Facebook a lot, we like Google a lot. They're growing two to three times faster and you can buy them at a lower multiple with faster growth rates," Niles told CNBC.
AAPL Price Action: Apple has traded as high as $157.26 and as low as $108.73 over a 52-week period.
The stock was up 0.06% at $151.58 at time of publication.
Photo: courtesy of Apple.
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