Flowers bloom in spring. Good old-fashioned spring cleaning is due. In light of that, Motley Fool authors recommend selling these three stocks this spring.Will Apple's demise be caused by AI? Jake Lerch (Apple): Apple (NASDAQ: AAPL) has had a terrific run. I don't think its stock price will fall because it's the world's second-largest public company.
Even with its remarkable previous performance, investors care about the company's future. That worries me about Apple. First, iPhone sales appear to have stopped off after years of growth. Apple sold 231 million iPhones in 2023, nearly same to 2015. It looks iPhone revenue has flattened. It was $201 billion last year. It fell from $205 billion in 2022.
Perhaps. Apple's services business currently generates over 20% of revenue. Apple's software business has never been strong. Since the 1980s, when Apple wouldn't license the Mac operating system to other computer makers, its longstanding policy of combining software and hardware has slowed its expansion.
What's more, the true question is whether Apple can compete long-term with Microsoft (Windows and Office), Alphabet (Google), Meta Platforms (Facebook), and Amazon.
Finally, when AI systems become more widespread, what happens to Apple's smartphone business? Will anyone spend $1,000+ for a smartphone if TVs, vehicles, wearables, and thermostats have AI-powered features?
Apple is at a crossroads. I wouldn't bet against the company, but investors can find alternatives with less questions, including Microsoft, Nvidia, and Amazon. Apple is on my spring cleaning list because of that.
Its "AI" name may not preserve this stock. Will Healy (C3.ai): C3.ai (NYSE: AI) appears to be a buy. Generative AI stocks have been popular recently, and the business software company's ability to acquire high-profile clients like the U.S. Army and Baker Hughes suggests a long-term increase.
Investors will find severe concerns upon deeper scrutiny. The startup is attracting enterprise AI clients, but its strategy seems too tech-focused. C3 Energy and C3 IoT were its names before going public in 2020. Investors may question the company's AI focus given its periodic name changes.
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