Becker Business: "Apple: The Good, the Bad, & the Ugly" (January 24, 2026)

Host: Scott Becker
Theme: Candid discussion of Apple’s business performance, strengths, and challenges

Episode Overview

In this solo Saturday episode, Scott Becker offers a clear-eyed look at Apple, dissecting the tech giant’s current position in the market under the catchy framework: "The Good, the Bad, and the Ugly." Drawing on Apple’s financials and market performance, Becker explains why Apple remains an iconic consumer brand while highlighting underlying risks and recent share performance compared to peers.

Key Discussion Points & Insights

1. The Good: The Powerhouse That Is Apple

• Massive Cash Flow Machine
  Becker opens with Apple’s ongoing strengths, emphasizing its ability to generate vast cash flow and sustain its position as one of the world’s most legendary consumer brands.
  • “Apple is still a massive cash flow machine with a huge product base and people ultimately love the Apple products.” (00:55)
• Market Capitalization & Brand Recognition
  Apple’s market cap sits around $3.7 trillion, solidifying its place among the most valuable and recognized companies globally.
  • “It remains one of the largest companies in the world with a 3.7 trillion or so market cap and continues to be one of the most well recognized consumer brands in the world.” (01:10)

2. The Bad: Valuation Gaps and Growth Concerns

• Price-To-Earnings Ratio Misalignment
  Becker points out a glaring issue: Apple's price-to-earnings (P/E) ratio is around 33, signaling investor optimism not matched by recent growth trends.
  • “Apple's growth doesn't by any means justify its price earnings ratio. It's trading as a price earnings ratio of about 33%.” (01:30)
  • Both iPhone sales and services growth lag the double-digit levels needed to warrant such a premium.
• Premium Justification
  Despite slower growth, Apple still earns a high multiple due to its brand loyalty, cash flow, and dominance.
  • “Apple still trades at a great premium because of its massive cash flow and its great consumer product and its great consumer moat.” (01:50)

3. The Ugly: Lagging Performance Behind Major Peers

• Recent Stock Underperformance
  Looking at 2025 and into early 2026, Apple's returns have lagged behind major indices and Big Tech rivals.
  • “The ugly is as follows. Yepo itself is down about 9% year to date and that compares to the S&P, the Nasdaq, which is down 1 to 2%.” (02:10)
• Comparative Growth
  • Over six months, Apple was up 15%, but still trailed the S&P and Nasdaq.
  • In the last year, Apple rose 11%, compared to the Nasdaq and S&P’s 17–20% rise.
  • Peers like Nvidia and Google have outpaced Apple’s growth.
  • “When we look at Apple ... over the last year, the last 52 weeks, it's up about 11% at a time when the Nasdaq, the S and P were up 17 to 20%. Similarly, it's being outpaced by Nvidia, Google and several others.” (02:30)

Notable Quotes & Memorable Moments

• "That's the good. Massive cash flow." (01:00)
• "The bad is as follows. We're at a spot where Apple's growth doesn't by any means justify its price earnings ratio." (01:30)
• "The ugly is as follows. Yepo itself is down about 9% year to date and that compares to the S&P, the Nasdaq, which is down 1 to 2%." (02:10)
• "So that's the story with Apple. Great cash flow, great installed product base, terrific. The bad price earnings ratio that well outstrips its growth currently and then the ugly down 9% year to date." (02:55)

Important Segment Timestamps

• 00:30 — Introduction to episode theme and structure: "Apple: The Good, the Bad, and the Ugly"
• 00:55 — The Good: Cash flow machine, product love, $3.7T market cap
• 01:30 — The Bad: Stretched valuation, stagnating growth
• 02:10 — The Ugly: Stock underperformance vs. market and peers
• 02:55 — Summary and final reflection

Summary

Scott Becker succinctly breaks down Apple's current state: a company with unrivaled brand power and cash flow, but whose stock valuation is increasingly hard to justify absent stronger growth. Despite healthy fundamentals, Apple trails behind both the broader indices and sector leaders like Nvidia and Google. Becker’s balanced take offers seasoned listeners—and newcomers—a quick, insightful pulse-check on the world’s most famous tech stock.