To the Editor:
I’m unexcited about Vision Pro and other unnecessary products, but I think that many are missing the elephant in the room (“Apple Needs New Growth to Justify Its Soaring Stock. It Won’t Be Easy,” Cover Story, Dec. 21).
Apple
services, writes Eric J. Savitz, generated $85 billion in revenue last year, and that figure will grow.
I have minimal exposure to Apple products—but my iPhone continues to add apps like the Wallet, highway toll payments, search ads, etc., that produce revenue for Apple. Add Apple Watches and a newly redesigned Mac, and I see steady revenue growth and more share buybacks.
Malcolm Richardson
On Barrons.com
The Case for Small-Caps
To the Editor:
Given the difference in valuation between small-caps and large-caps, it would seem prudent to sell some of the S&P 500 index and buy the small-caps (“Buy These 5 Stocks to Play the Small-Cap Rally,” Dec. 21). It’s difficult to tell how the consumer will spend. Currently, they are trading down, but the small-cap restaurants provide a good value/price point.
Bloomin’ Brands
’ Outback Steakhouse was busy this month, and consumers want the experience.
Mike Schmitt
On Barrons.com
BYD Fool’s Gold
To the Editor:
Investing in BYD or any other Chinese company that tempts investors with promises of prosperity and capital returns is the same as finding fool’s gold and thinking you’ve struck it rich (“This Stock Is a Better Electric-Vehicle Bet Than Tesla. Buy It Now,” Dec. 22). Chinese companies aren’t subject to the same rules and regulations as U.S.-listed companies. They make no secret about not wanting to disclose the necessary information to become listed. “Trust me” isn’t a wise investment strategy. While I’m not Elon Musk’s biggest fan, at least
Tesla
has to provide the information necessary for investors to properly do their investment homework.
Steve Abbiuso
Peabody, Mass.
Dividend Payers
To the Editor:
The shortlist of juicy dividend payers in The Trader column omitted
British American Tobacco,
which yielded 9.54% on Christmas Eve (“7 Dividend Stocks to Buy as Bond Yields Fall,” Dec. 18). Its vape business grows 30% to 40% a year and will turn black in 2024 after six years of investment to build the No. 1 share worldwide. While waiting for those vape profits and cash inflow to emerge, you are getting roughly three times the U.S. 10-year Treasury’s yield, and growing. That alone beats what most money managers return, or would in an economic or stock market downturn.
Howard Flinker
New York
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