Why ‘you’re not wrong’ to sell some Apple stock, but better to hold

Apple (AAPL) stock is back in record territory on the heels of new optimism over the company’s performance. Both Wedbush and JPMorgan have set higher price targets, with Wedbush’s Dan Ives calling on the tech giant to climb to $325 a share. (Shares were trading at around $264 on Friday.)

But not everyone sees a rosy future for Apple.

“I'm nervous about them having the same type of growth that they've had before,” Noah Hamman, CEO at AdvisorShares, tells Yahoo Finance’s “The First Trade.” “When the iPhone 11 came out our local Apple Store didn't have the same kind of lines that you typically see out there.”

It’s a sentiment echoed by longtime trader Stephen Guilfoyle, president of Sarge 986 LLC.

“You can sell Apple here and you’re not wrong,” Guilfoyle said. “But I think you probably shouldn’t sell all of it.”

That’s because Apple continues to be a profitable company, 

“Although they may be more or less profitable, they're going to be valued more highly than they were in the past,” Guilfoyle said.

In this Saturday June 15, 2019 photo pedestrians walk past an Apple store along the 3rd Street Promenade in Santa Monica, Calif. (AP Photo/Richard Vogel)

In his note to clients, Ives at Wedbush described a “renaissance of iPhone growth heading into 2020 that will further catalyze the stock higher.” 

“The combination of a ‘super cycle’ demand driver between iPhone 11/5G lineup of smartphones and a robust ~$60 billion services platform by FY21 will be the linchpins of the Apple growth story,” Ives wrote.

Apple’s stock has soared more than 67% this year alone, giving it a nearly $1.2 trillion market cap and making it one of the most valuable companies in the world. A $1,000 investment at the 52-week low of $142 a share would have netted an $858 profit, if you sold today. 

Still, many analysts are advocating holding on to your Apple shares, given the company’s solid performance. And while investors should keep an eye on things like iPhone and wearables demand, Guilfoyle and Hamman agree that cashing out all of your Apple stock at these highs may not be the best idea.

Apple’s “certainly one you want to keep for the long-term in your portfolio,” Hamman said.

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