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Caleb Lewis
Caleb Lewis

How Much Is Apple Stock To Buy


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.




how much is apple stock to buy



Shares of Apple (AAPL 1.98%) are up 14% year to date, outperforming the 4% return of the S&P 500 index. There are good reasons Apple stock is leading the market higher in 2023. iPhone demand has held up better than Wall Street expected given the macroeconomic headwinds. Most importantly, Apple appears set to introduce new revenue streams over the next several years that could send its stock much higher.


Apple's services revenue rose just 6% year over year, compared to a robust 24% increase in the year-ago quarter. That might have disappointed some investors, but as we saw with iPhone, Apple is doing much better here than its headline number suggests.


To sum up, easing supply constraints on iPhone sales, growing demand for non-ad services, and the opportunities to introduce new revenue streams over time are key catalysts that can drive more growth for Apple and send the stock higher.


While the stock isn't cheaply valued, at 25 times expected earnings this year, it's also not expensive. The stock's outperformance so far this year is giving investors an insight into how well Apple shares can perform as the business continues to grow over the next decade.


Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Bank of America. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple 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.


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.


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.


Apple recently announced a fourth-quarter revenue record of $90.1bn and quarterly earnings per diluted share of $6.11, up 9% year over year. It also declared a cash dividend of $0.23 per share of its common stock.Apple CEO Tim Cook commented:


So where will Apple stock be in 10 years' time?David Jones, former chief market strategist at Capital.com, pointed out that the Apple stock price has risen by more than 500% over the past decade, which represents an incredible return for anyone who has managed to hold shares for that long. Jones added:


Whether AAPL stock is a suitable investment for you will depend on your personal research, trading strategy and investment needs. You need to perform your own due diligence and decide if the stock meets your needs and appetite for risk. Never invest any money that you cannot afford to lose.


You can also use a brokerage account to invest in a mutual fund or exchange-traded fund (ETF) that invests in Apple. Look for funds that focus on the technology sector or on large-cap stocks. Buying shares in a mutual fund or ETF lets you invest in Apple while also investing in a number of other companies, giving you diversification and protecting your investments against any downturns from a single stock.


With dollar-cost averaging, investors add a set amount of money to their position over time, and that really helps when a stock declines, allowing them to purchase more shares. High-flying stocks can dip from time-to-time, so the strategy can help you achieve a lower buy price and higher overall profits.


That's painful for anyone who came to the Apple party late, but it's tough to have much pity for truly long-time shareholders. After all, they've enjoyed almost incomparable returns over the past few decades.


From January 1990 through December 2020, AAPL stock created $2.67 trillion in shareholder wealth, or an annualized dollar weighted return of 23.5%, according to an analysis by Hendrik Bessembinder, a finance professor at the W.P. Carey School of Business (opens in new tab) at Arizona State University.


Indeed, per Bessembinder's findings, which account for a stock's increase in market value adjusted for cash flows in and out of the business and other adjustments, Apple is one of the 30 best stocks of the past 30 years.


True, AAPL stock traded sideways for the first few years of the 21st century, but an explosion of innovation soon put an end to that. Under the visionary leadership of the late Steve Jobs, Apple essentially reinvented itself for the mobile age, launching revolutionary gadgets such as the iPod, MacBook and iPad.


No less an eminence than Warren Buffett has called the iPhone maker Berkshire Hathaway's (BRK.B (opens in new tab)) "third business," noting Apple fans' fantastic brand loyalty as one reason for being all-in on the stock. (Apple accounts for almost 39% of the value of the Berkshire Hathaway equity portfolio.)


Have a look at the above chart and you'll see that if you invested $1,000 in Apple stock 20 years ago, it would be worth more than $695,000 today. By comparison, the same $1,000 invested in the S&P 500 would have theoretically turned into a bit more than $7,300 over the same period.


For those wondering if AAPL stock is a buy at current levels, Wall Street certainly thinks so. Of the 45 analysts covering Apple stock tracked by S&P Global Market Intelligence, 25 rate it at Strong Buy, nine say Buy and nine call it a Hold. One analyst slaps a rare Sell rating on shares, and one has it at Strong Sell. That works out to a consensus recommendation of Buy, with high conviction.


At the market close on Jan. 28, Apple stock was trading at $170.33. The analysts who follow the stock provide a target price, which they think the stock will reach in the short term. For Apple, those estimates range from $128.012 to $210 and average $180.94, all of which are slightly higher than the estimates for last quarter.


Apple has historically been a good performer, and the analysts seem to agree that the stock is worth buying. But any single stock can be volatile, and you should look at each purchase in the context of your entire portfolio. 041b061a72


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