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A Closer Look at the Apple Stock

10 9月 2022

Apple (Nasdaq:AAPL) Stock | VI College

Are you an Apple fan?

If you are, then it’s common knowledge that Apple (Nasdaq: AAPL) has become a household name both as a corporation and as a lifestyle brand. Because of that, it shouldn't surprise you why business leaders are quick to place their bets on Apple as a stock and company.

But what makes Apple the tech giant that it is today? Why are investors rushing to get their piece of the pie?

Allow us to enumerate a few of the most obvious (or not) reasons.

Apple is bankable

Founded in 1976 by Steve Jobs and Stephen Wozniak, Apple is renowned for leading the tech industry with its many innovative services.

In 1980, when Apple held its IPO, you could buy a share for $22. As of today, it now costs $157 per share. This huge increase reveals one crucial reality: the continued support of investors is proof of how stable the business is. More than anything, it’s clear that the company’s number one competitive advantage is its brand equity.

In a report published by Yahoo, they mention how Apple’s earning growth, cash flow growth, and earning estimates revisions make it a swell company to begin investing with. Sure, there were dips along the way, such as the recent plunge, but Apple has maintained a stable performance that makes investors hold on to it.

This year alone, the consumer electronics giant hit a market value of $3 trillion. That’s huge! This is the first time a public company has reached this market cap!

Apple continues to prove itself

Like many of you, we’re extra cautious of a possible recession, so we totally understand why people today are extra picky with where they invest. Luckily, Apple has been able to prove that it can afford to offset economic pressures.

To paint a clearer picture, companies whose stocks plunge often have discouraging sales. Oppositely, that hasn’t been the case with Apple. In fact, in a report published a few months ago, Apple’s CEO Tim Cook is more concerned about meeting global demands than not selling as many products as they did with earlier product cycles.

Even more, Apple has regularly delivered top-notch products, shaping even how consumers approach their relationship with technology. VR headsets, and possibly vehicles, might also be in the works. And it’s fair to say that Apple puts out products that continue to stir conversations, like the recently released iPhone series.

Explained simply, Apple has done an incredible job in creating a market demand; a characteristic that comes in very handy in a brand-conscious world.

Furthermore, the company’s cutting-edge technology upgrades like the M1 and M2 chips received mostly favourable reviews from experts. If you own one of the newer MacBooks yourself, what do you have to say about it?

Apple’s services are growing

Apple (Nasdaq:AAPL) Stock | VI College

It also helps that Apple’s finance services are now more commercially popular. Do you use Apple Pay Later and Apple Tap to Pay? If your answer is yes to at least one of the two, the company has you to thank.

As a result, you can expect the brand’s next era of services to be more digital as well.

Thanks to Cook’s supervision and direction, the company’s expansion is sure to strengthen a variety of services on top of existing hardware commodities. To add, there are rumours implying that Apple could enter the Metaverse in the near future as well. If the word on the street proves to be true, then this could mean that the tech giant is well on its way to becoming a multi-trillion dollar company!

Because the Metaverse will make heavy use of augmented reality and digital spaces, expect the demand for new technology and gadgets to rise, too. This alone could open even more doors for the tech giant to produce new products.

At present, the company is vocal about its plans to make bigger waves in the streaming business. And with Apple TV+ and Apple Music expanding uninterruptedly, the investment could pay off in the next couple of years.

Oh, and by the way, did you hear about the movie Coda winning the best picture at the Oscars this year? Apple now also has dibs on being the first streaming service provider to ever win such a coveted award from the film industry.

Apple (Nasdaq:AAPL) Stock | VI College

So what does this mean for an ordinary investor like you? A lot of things!

Not only has Apple continued to cement its reputation in branding, but it’s also been able to prove how it can face the challenging stock market head-on.

For starters, Apple provides promising dividends to its shareholders. From 2012 to 2021, the American corporation’s dividend per share skyrocketed from $0.10 to $0.85. In other words, investors witnessed the company’s dividends jump nearly ten-fold in a nine-year period.

Ultimately, this is a good thing! Dividend-paying stocks allow investors to get paid when the economy seems murky. Additionally, they help protect you from the unpredictability of inflation. This happens because dividend-paying stocks grow over time.

Doesn’t that sound reassuring?

Additionally, experts forecast that the price per share could range from a little over $150 to more than $200 in the coming months. Everything factored in, Apple remains to be ahead of the game.

Is Apple worth investing in?

Apple (Nasdaq:AAPL) Stock | VI College

The short answer is “it depends.” The long answer is “it’s up to you.”

People have different inclinations and interests. Our advice is to be mindful of the many factors that make up the stock market.

For example, looking at a stock’s fundamentals reminds us to consider a company’s financial health, its economic moat, and the overall state of the economy. Simply put, we have to remember to consider business trends and price and volume fluctuations.

We also have to factor in how volatile the stock market naturally is. To help protect your finances, you must learn to practise diversification when investing. Aside from keeping in mind that time IN the market is better than “timing the market,” we have to understand that a diverse portfolio helps reduce risks.

For the most part, it’s always best for you to explore different market segments and find which companies you resonate with the most.

What now?

Much can be said about Apple, and we’re all excited to find out what other tricks the company has up its sleeves. In the long run, the chances of AAPL outperforming its peers in the broader market are high. So if you’re thinking of investing in the tech segment, considering Apple could be a light bulb idea.

For more information about how you can make sound and wise decisions in value investing, sign up for our FREE masterclass.