Apple Vs Trump

President Donald Trump’s recent executive order which imposes a travel ban on 7 Muslim countries into the US, has been met with much uproar and outrage. The move has caused much tension and uncertainty within the economy, with directly affected industries, such as the airline and travel agency industries caught in a bad position. But other big players such as Apple, will be impacted by the order and have also lashed out in response. In fact, Apple is considering taking legal action in attempt to reverse the ban on the 7 affected countries.

Apple’s main reason for protesting the ban is that it will affect many of the company’s employees who are essential to the smooth running of the organization. This is likely to disrupt operations significantly which will no doubt affect the company’s bottom line. In addition, affected employees stand to lose their source of income which has negative trickle down effects. CEO, Tim Cook challenged the relevant authorities to seriously consider the far-reaching implications of the move and to join him in seeking a reversal of the travel ban. Other industry giants including Facebook, Alphabet Inc. (owners of Google) and Amazon have also taken opposing stances on the President’s executive order.

Apple stocks have not registered any significant changes since the announcement of the ban, registering a healthy 6.10% price increase at close of day on Wednesday February 1st to close at $128.75. The stock price has moved between a low of $89.47 and a high of $130.49 over the last 52 weeks. Apple stocks have registered a 1.87% dividend yield and has an estimated one year price target of $133.54. Earnings per share stands at 8.31 with a P/E ratio of 15.49. Analysts recommend a strong buy for Apple stocks.

Is Apple still a Long term buy?