Tim Cook’s Apple: extraordinary gains and a stretched valuation
Tim Cook is stepping down as Apple's CEO, leaving behind a company with a $4 trillion market value and a stretched valuation. His successor, John Ternus, faces pressure to deliver a clear artificial intelligence strategy and new products.
Apple's market value exceeds $4 trillion after Tim Cook took over as CEO in 2011. Revenues have more than quadrupled, and profits have grown even more, with the stock rising almost 20-fold. Cook's successor, John Ternus, inherits a record of success but also anxieties about the company's lack of transformative products and unclear artificial intelligence strategy. Apple's valuation is already stretched, trading on 32 times estimated earnings. Some investors remain upbeat, arguing that Ternus can boost the company's valuation by bringing in AI-first talent and delivering new products. However, Apple's valuation ceiling has been evident since September 2020, with the company's outperformance giving way to a largely sideways pattern versus the S&P 500.
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