Apple Hopes Its Vision Pro Headset is the Next Big Thing

After years of anticipation, Apple (AAPL) released its Vision Pro headset on Monday. However, the market was not initially impressed as the stock retreated from a record high Monday and is modestly lower today.  Many analysts are concerned that the $3,499 price tag of Apple’s headset will limit its mass-market appeal.

With its elevated valuation, Apple needs positive news to maintain its record-high price.  With Apple up +38% this year, the stock is priced at 28 times profit projected over the next 12 months, the highest since early 2022.  In contrast, the average multiple in the S&P 500 technology hardware and equipment index is 18 times, the same as Apple’s average price multiple over the past ten years. With analysts projecting Apple’s sales this year will decline for the first time since 2016, most of the stock’s valuation reflects its balance-sheet strength rather than immediate growth prospects.