In late July, Apple (NASDAQ: AAPL) stock jumped to a new all-time high and was knocking on the door of the $200-per-share mark. But Apple has not had a good August. Some of that is due to a broader sell-off in growth stocks. However, Apple's latest earnings report spooked some investors.

At least in the short term, Apple's investment thesis is being put to the test. For the first time since 2016, Apple posted its third straight quarter of revenue decline. Despite the negative growth and the 10% sell-off over the last month, Apple stock is still up a staggering 220% over the last five years and currently sports a market premium price-to-earnings (P/E) ratio of 29.5. Let's find out if Apple stock deserves its high multiple or if investors should look for opportunities elsewhere. 

Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.

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Source Fool.com