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While the company has yet to resolve its case with ‘Fortnite’ creator Epic Games, its market dominance is being scrutinized by the Bundeskartellamt, Germany’s antitrust regulator, and a French court has set September 17 as the date for hearing a case against AAPL brought by the France’s finance ministry for allegedly abusive contractual terms imposed by the tech giant for selling software on its App Store. Given these developments, AAPL’s shares look overvalued at their current price. Their forward EV/S and P/S of 6.12x and 6.30x, respectively, are higher than the 4.26x and 4.03x industry averages. So, we think it’s better to wait for a better entry point in the stock.
However, we think investors seeking to capitalize on the renewed investors’ interest in the tech space could bet on quality tech stocks SAP SE (DE:SAPG) (SAP) and Broadcom Inc. (AVGO). They are trading at reasonable valuations and these stocks are expected to continue gaining in the coming months on their solid financials and impressive growth prospects.
