NEW YORK (TheStreet) -- Shares of Apple (AAPL) have been retreating since Donald Trump was elected president last Tuesday, because investors are concerned about a trade war with China, BGC Financial analyst Colin Gillis said on CNBC's "Power Lunch" on Monday afternoon. The firm has a "sell" rating and $85 price target on the stock.
People are scared that "Apple is going to suffer and that it will suffer more so than some of the other multi-national tech companies," he said.
Apple trades at the lowest P/E multiple of companies with a $200 billion or higher market cap because it's a "one-product company," Gillis explained. The company relies on its iPhone too much and lacks innovation so it doesn't "deserve" to trade at a premium.
A trade war would mean Apple's products would become more expensive in the U.S., which is its biggest market.
But an even bigger concern than a trade war is domestic competitors in China that will limit Apple's growth there, Gillis claimed. "The number one item to drive Apple to my price target of $85 is the rise of the domestic Chinese producers."
Instead of Apple, investors should buy shares of Alphabet (GOOGL) because it has multiple products that allow for new revenue streams, he advised.
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