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Apple: Own It, Don’t Trade It

Real Money's Stephen “Sarge” Guilfoyle says the latest ruling in  Apple's court battle with Epic Games hasn't fundamentally changed anything.

The latest news on Apple  (AAPL) - Get Apple Inc. (AAPL) Report and its ongoing legal battle with Epic Games hit shares hard last week, knocking it lower by more than 3%  while the S&P 500 dipped only 1.7% during the same period.

While the initial news about the two companies appeared to be in favor of Epic Games, the company that makes Fortnight, an extremely popular video game, the federal court’s ruling appears to be a split decision.

Epic had sued over Apple's prohibition on third-party payments in apps sold through its app store. Apple gets a 30% cut on the payments.

The federal court’s decision found that “Apple had acted in an anticompetitive way, but that what Apple did not quite constitute a monopoly,” wrote Stephen “Sarge” Guilfoyle in a recent Real Money column. 

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“Experts largely agreed that the decision did not necessarily open Apple up to future antitrust litigation," Guilfoyle wrote. "While Apple must allow developers to provide a path toward going around the app store, it remains in all likelihood the avenue most conveniently available to users who might not want to go out of their way to re-enter information elsewhere already stored on Apple's app store.”

Outsized movements in Apple’s stock price tend to draw attention and lots of speculation. “When Apple zigs or zags, that probably means that nearly everyone should pay attention,” Guilfoyle wrote.

The outlook from 28 analysts that cover Apple remains positive - the consensus view for current quarter earnings per share is $1.22, with a range of $1.05 to $1.34 while revenue is estimated at $84.5 billion, with a range of $77 billion to $91 billion.

Guilfoyle remains long on Apple despite the court decision. “I have not made any recent sales,” wrote Guilfoyle who maintains his $169 price target and his mantra of "own it, don't trade it."

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