Profile
Apple Inc. designs, manufactures, and sells mobile communication and media devices, personal computers, and portable digital music players around the globe.

The company was founded in 1977 and is based in Cupertino, California.
 
The Investment Case Under a Trump Presidency

On an operational level, Apple doesn't look rock solid at the moment. However, Donald Trump's victory does create a unique situation for the stock.

• Trump has pledged to cut corporate tax rates. And, he has also pledged to allow companies with offshore cash holdings to repatriate that cash at a 10% tax rate.

• Apple has over $150 Billion stashed offshore, and this is their best chance to repatriate that money. They may use some of that cash for acquisitions, but the bulk may be returned to shareholders via a share buyback.

• This large cash pile has done no favors for Apple, and it is reflected in the price.

• A buyback would provide a strong underpin to the share price and some smart acquisitions will breath new energy into the company's product line.

• Either way, these scenarios are likely to be priced into the share price in the coming months.

Risks

• Apple is facing increasing competition from competitors including Samsung who offer lower priced products.

• The Trump administration is seen as being more negative for tech companies in general.

• Apple’s share price may be pricing in more long-term innovation based growth than it is able to deliver.

The Technical Picture

• Apple is retreating back to its 200 day moving average which is a key indicator for the share price.

• If it can hold above this level, the outlook will remain bullish,

• If the share price trades below $103, it will likely target support at $90.