Is Apple Stock A Good Buy
Like many tech companies, Apple (AAPL 1.98%) will be happy to see 2022 in its rearview mirror after a challenging year and a particularly ugly December, during which its stock price fell 12.4%. While year-over-year declines were primarily fueled by macroeconomic headwinds that affected the whole market, December saw investors grow uneasy over the company's dependence on China for manufacturing. A spike in COVID-19 cases in that country strained production at the factory that produces about 70% of all iPhones, a device that made up 52% of Apple's revenue in fiscal 2022.
is apple stock a good buy
While Apple shares tumbled 24% since January 2022, the figure is significantly lower than Alphabet's stock decline of 35%, Amazon's 43%, and Netflix's 40% in the same period. When looking at the companies' free cash flows as of Sept. 30, Apple won out again with its $111.4 billion against Alphabet's $62.5 billion, Amazon's negative $26.3 billion, and Netflix's $717 million.
Even with companies like Meta Platforms and Sony already participating in the VR market with their respective headsets, Apple's past performance in entering new markets proves purchasing its stock could be an investment in the future leader of the industry.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Intel, Meta Platforms, Microsoft, and Netflix. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
As the world's most valuable company with a market cap of $2.39 trillion, Apple (AAPL 1.98%) stock might seem well past the best time to buy. However, the tech industry is made up of dozens of solid growth stocks for a reason. It's a market that consistently has one eye on the future, with many companies in a constant state of development and innovation.
Last year was challenging for the entire tech market, with the Nasdaq-100 Technology Sector index plunging 40% throughout 2022 as macroeconomic headwinds led to a decline in consumer demand. In the same period, Apple shares fell 27%, a more moderate decline than its peers, with Alphabet's stock sliding 39%, Nvidia's 50%, and Advanced Micro Devices's 55%.
Apple's stock dip in 2022 highlighted its impressive long-term growth and the importance of holding such investments through economic downturns. Despite the sell-off, Apple's stock price has still soared 286% over the last five years and 789% over the last 10 years. In fact, a $20,000 investment in Apple in 2018 would be worth $57,200 today.
The stellar stock growth has come alongside consistent earnings. In the last five years, Apple's annual revenue has risen 48% to $394 billion, while operating income increased 68% to $119 billion. The company has almost unparalleled brand loyalty, which allows its products and services segments to continue expanding no matter short-term headwinds.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Intel, Nvidia, and Qualcomm. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, long March 2023 $120 calls on Apple, short January 2025 $45 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The stock information provided is for informational purposes only and is not intended for trading purposes. The stock information and charts are provided by Tickertech, a third party service, and Apple does not provide information to this service.
While Apple, like other tech stocks, is under pressure due to rising interest rates and an impending recession, Wall Street analysts continue to be bullish on the long-term prospects of the iPhone maker.
This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $1.70 between high and low, or 1.07%. For the last week, the stock has had daily average volatility of 1.71%.
Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for Apple stock to perform well in the short-term. We have upgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Buy candidate.
The stock is down more than 30% from its split-adjusted all-time high, and the charts are not looking very good. This market is trading below a key technical support level with falling indicators and diminishing analysts' sentiment, so it could keep falling. In that scenario, shares of Apple could fall below $120 and possibly as low as $100 before they hit bottom.
There are 32 analysts tracking Apple, making their activity more important. At 32, this community represents 10s of billions of investment dollars, and their sentiment is slipping. The Marketbeat.com consensus rating is still a Moderate Buy, and the price target, even the low end, is implying some upside for the stock, so it is a buy, the question is when and now does not look like the time.
Assuming the market follows through on the signals it is giving, this stock will probably move lower before it moves higher, and the bottom may not yet be in sight. This is also bad news for Skyworks (NASDAQ:SWKS), Broadcom (NASDAQ:AVGO), and other stocks relying on Apple for income.
One thing a stock split does is reduce the price. This happens because the overall value of the company remains the same, but now there are more available shares. In the most recent case, Apple did a 4-to-1 split, which means each shareholder gained three extra shares. Each person who had a share of Apple stock suddenly had four shares. The increase in the number of shares results in a lower per-share price, making each share more affordable for investors.
Right now, buying Apple stock is less of a daunting task because the stock split resulted in a lower price per share. However, back when AAPL was trading above $500, saving up enough to buy one share could have been difficult for many aspiring investors.
Before making major changes to your portfolio, consider sitting down and speaking with a financial advisor about the best stocks for you. Think about what you want your portfolio to accomplish and then create an investing plan that reflects that. In some cases, you might decide to buy an index mutual fund or index ETF that offers exposure to AAPL along with other companies, rather than trying to build a portfolio with individual stocks.
Whether Apple stock is a good investment depends on your evaluation of the company. One way to consider the situation is to look at market capitalization, or market cap. A company\u2019s market cap is the total value of all the outstanding shares. Right now, AAPL has a market cap of more than $2 trillion. You can also look at the earnings report to see how much revenue is coming in, and figure out how much a company has in reserve. If you think that Apple\u2019s information looks stable, that it is a well-run company, and you expect it to continue to be well-run in the future, it might be a good investment for you.
It\u2019s impossible to predict the future and figure out what AAPL will be worth in five years. A lot depends on how Apple innovates, the market, the economy, and other factors. Stash reports that since 2015, AAPL stock has increased by 334.43%. If that trend were to continue, AAPL should be worth right around $378.87 in five years.
But let\u2019s say you invested $1,000 in AAPL when it went public in 1980 at $22 per share. You would have been able to buy 45 whole shares of Apple. If you didn\u2019t buy any more stock in the company, here are the stock splits you would have experienced:
The minimum requirement for investing in Apple stock depends on the platform you use and the price of AAPL shares. However, a company like Stash, which offers fractional investing, will allow you to buy into Apple stock for as little as $1. You won\u2019t have a full share, but you can start by buying a partial share and receive potential gains.
Are you interested in investing in Apple stock? Do you want to know whether it is a profitable investment? Do you want to know if it is a good investment for the future? Then you need to read on carefully as our Apple (APPL) stock price prediction will provide you with everything you need to make an informed decision. 041b061a72