Apple Stock: Big Risk (NASDAQ:AAPL) – Seeking Alpha

As profitable as Apple Inc. (NASDAQ:AAPL) is as a company, the tech giant is highly reliant on a key deal with Alphabet Inc./Google (GOOG, GOOGL) to generate a large portion of those profits. Regulators don’t want these default monopolistic relationships to exist, creating risk to the current business model. My investment thesis remains ultra-Bearish on the stock, which is trading at a premium valuation with several business models at risk.

Financial Risk

Advertising is the biggest risk and potentially a great opportunity for Apple. As much as the tech giant continues to push into new Services such as Apple TV+, the company obtains a large portion of revenues from the search engine deal with Google.

Apple will obtain an estimated $18 billion this year from the deal for Google to be the default search engine on Safari. This business has an estimated 90% gross margin, providing for a large portion of overall profits with over $16 billion in estimated gross profits in 2023 alone.

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source: https://news.oneseocompany.com/2023/03/29/apple-stock-big-risk-nasdaqaapl-seeking-alpha_2023032942777.html

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