New iPhone moment? Apple, NVIDIA, Cantourage

Apple: iPhone sales are weakening

Although the market launch of the iPhone was many years ago, smartphones still play a major role for Apple: slightly more than half of sales are still attributable to the iPhone. Another 7.4% relates to the iPad and more than 10% to wearables, which the Company would not sell without its primarily iPhone-based ecosystem. Without question, the introduction of the iPhone has elevated the business to a new level for Apple. But what might be next for the Company?

Most recently, concerns have been raised about China. After all, Apple makes more than 18% of its sales in China. If the Western world and China increasingly confront each other as rivals and create trade barriers, Apple could also be affected at some point, according to fears. However, the economic situation and inflation have been putting pressure on Apple's figures recently. In the first half of the year, the Company succeeded in increasing sales by 4.4% but lost 9.2% in profit. Sales of the iPhone itself also crumbled by 4.2%. The mixed-reality headset Apple unveiled has yet to ignite with customers so far. It is questionable whether the Apple share will overcome the EUR 180 mark again so quickly. There is currently no pressure to act here.

NVIDIA: All good, but the valuation...

The NVIDIA share also experienced its personal "iPhone moment" after introducing the ChatGPT AI a little more than a year ago. Since then, NVIDIA has gained a whopping 258%. The reason: Thanks to its hyper-fast graphics processors, NVIDIA benefits from several megatrends at once, such as AI, but also gaming and cryptocurrencies. After years of growth, however, many sectors are now saturated. Even after the initial AI hype, many companies will likely take their time to orient themselves first and decide on significant investments carefully. **Since NVIDIA is currently valued at a whopping EUR 1.058 billion, corresponding to a price-earnings ratio (P/E) of 263, caution is also urged here.

Cantourage can scale: German cannabis market picks up speed

In contrast, the share price performance of German cannabis stock Cantourage was relatively modest - over a six-month period, the stock lost just over 9%. But why is the stock not getting off the ground, even though the German government has set the course for even more far-reaching cannabis liberalization during this time? While cannabis legislation is likely to remain a bit complex in Germany for the foreseeable future, the direction seems clear: More and more patients and recreational users are now getting their hands on the coveted flower in pharmacy quality. Cantourage has established business relationships with manufacturers from all over the world and can also meet this increased demand. In early September, they announced the launch of their own online platform for cannabis prescription in Germany as well. This could pave the way for cannabis to gain broader acceptance in Germany, as it has various medical applications. As a result, the potential customer base for Cantourage continues to grow.

A digital platform that offers the coveted prescriptions anonymously and quickly will likely meet with a great response from interested consumers. Such platforms already exist today and are seen within the scene as the key to the mass market. The removal of the status as a narcotic should make prescribing and processing via such platforms even more accessible and also cheaper - currently, increased fees are incurred due to the status as a narcotic, among other things. If these and other hurdles fall away from 2024, the cannabis market and with it Cantourage could have its "iPhone moment". The US market research institute BDSA expects that demand for cannabis flowers in Germany could reach 400 t in 2024.

Growing demand was also anticipated by Cantourage CEO Philip Schetter in an interview from the end of August: "Because cannabis helps many patients with different indications, more patients are likely to try it after the end of its status as a narcotic. This has also been the case in other markets that have now been liberalized, such as Canada." Meanwhile, while Apple's sales with iPhones are weakening and NVIDIA's stock is more expensive than ever, the cannabis boom could also trigger highs on the stock market. The Berlin-based cannabis retailer, with other mainstays in the field of medical consulting, is currently valued at only around EUR 106 million. If the market picks up, the share price could quickly reach double digits again, starting from the current level of around EUR 9.