'Fast Money' traders break down what Apple's iPhone 17 means for the stock

Core Viewpoint - The recent launch of the new iPhone has generated significant consumer interest, as evidenced by long lines at Apple stores, indicating a potential positive refresh cycle for the company [2][3][14] Group 1: Consumer Response - There has been a notable increase in foot traffic at Apple stores, with large lines observed for the new iPhone, suggesting strong consumer demand [2] - Analysts have reported a surge in options trading for Apple, with more than three times the average daily volume, indicating heightened investor interest [7][8] Group 2: Financial Metrics and Valuation - Apple is currently trading at approximately 31 times next year's earnings, with projected earnings growth around 10% and revenue growth around 6%, suggesting it is an expensive stock relative to its growth prospects [6][8] - The S&P 500's compound annual growth rate for revenue is higher than Apple's, raising questions about the justification for Apple's premium valuation [8] Group 3: Innovation and Future Prospects - Analysts express skepticism about whether the current iPhone refresh is sufficient to bridge the gap to future innovations, such as foldable phones and meaningful AI offerings [5][15] - There is an expectation that Apple will eventually refresh its product line, particularly with AI integration, which could enhance its service offerings [13][14] Group 4: Market Context - The overall market is considered expensive, with Apple being part of a broader rotation among large-cap stocks, which may influence its stock performance [10][16] - Despite being perceived as a value stock, Apple continues to trade at a growth stock valuation, reflecting its strong brand and market position [15]