Stock FAQs

why not to buy apple stock

by Gennaro Morar V Published 3 years ago Updated 2 years ago
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Is it smart to buy Apple stock now?

Apple already has enviable gross margins of nearly 44%, but its services gross margins are even better, at nearly 73%. Investors should also consider that Apple still has more opportunities in the services space, including a potential subscription plan for its iPhone and other devices.

Is Apple a good stock to keep?

Considering Apple's robust balance sheet and continued market strength even under the currently harsh market climate, the stock remains a safe investment with reasonable expectations for further gains ahead.

Should I invest Apple 2021?

The most recent earnings report proved that Apple can still deliver solid growth on top of outstanding results in 2021. Demand remains high for the iPhone, now in its second 5G cycle with the well-received iPhone 13.

Is Apple a buy or sell?

Apple stock is not a buy right now.

What will Apple be worth in 5 years?

Based on our forecasts, a long-term increase is expected, the "AAPL" stock price prognosis for 2027-07-07 is 354.582 USD. With a 5-year investment, the revenue is expected to be around +144.19%. Your current $100 investment may be up to $244.19 in 2027.

What will Apple be worth in 10 years?

The Bottom Line Assuming 18% compound annual growth over the next decade, your $10,298 investment in Apple would be worth $53,898.

Is Apple a good buy for 2022?

Apple's shares have lost a quarter of their value year-to-date in 2022, and AAPL now trades at 22.0 times forward P/E, which is close to its five-year historical average.

Is Apple good stock for 2022?

It's not just the technicals that suggest Apple, which has dropped 18% in 2022, has more room to fall. DataTrek co-founder Nicholas Colas notes that the stock has a valuation problem as well. It currently trades at more than 22 times 12-month forward earnings, well above the S&P 500's 17.4 times.

Will AAPL stock go up?

Stock Price Forecast The 39 analysts offering 12-month price forecasts for Apple Inc have a median target of 185.00, with a high estimate of 219.94 and a low estimate of 130.00. The median estimate represents a +23.19% increase from the last price of 150.17.

What is the target price for Apple stock?

Stock Price TargetsHigh$219.94Median$185.00Low$130.00Average$182.20Current Price$148.47

Is Tesla a buy sell or hold?

Tesla has received a consensus rating of Hold. The company's average rating score is 2.31, and is based on 19 buy ratings, 9 hold ratings, and 8 sell ratings.

Should I invest in Amazon?

Amazon (NASDAQ:AMZN) stock is a good buy now because its stock split could provide short term momentum, it has one of its lowest valuations in recent years, and AWS remains a great business with a lot of growth left.

Is Apple a good stock for retirement?

Given its incredibly strong financial position and the myriad of ways in which it rewards shareholders, Apple stock should be a top choice of retirees.

Will AAPL stock go up?

Stock Price Forecast The 39 analysts offering 12-month price forecasts for Apple Inc have a median target of 185.00, with a high estimate of 219.94 and a low estimate of 130.00. The median estimate represents a +23.19% increase from the last price of 150.17.

What will be the price of Apple stock in 2022?

NASDAQ: AAPLStock DateStock PriceJune 14, 2022$132.76June 13, 2022$131.88June 10, 2022$137.13June 09, 2022$142.6497 more rows

What is the best stock to buy right now?

Top 10 Stocks To Buy Right NowApple Inc. (NASDAQ: AAPL)Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL)Palo Alto Networks, Inc. (NASDAQ: PANW)Shopify Inc. (NYSE: SHOP)Advanced Micro Devices, Inc. (NASDAQ: AMD)Netflix, Inc. (NASDAQ: NFLX)The Walt Disney Company (NYSE: DIS)CrowdStrike Holdings, Inc. (NASDAQ: CRWD)More items...•

Even as the most valuable company in the world, there's still lots to like about the iPhone maker

Apple ( AAPL -2.59% ) made history on Aug. 2, 2018, when it became the first U.S. public company in history to achieve a market cap of $1 trillion. Since then, the company has maintained and even extended its lead on the competition, currently clocking in at roughly $2.25 trillion.

1. The Warren Buffett seal of approval

Investors could do far worse than follow the example of legendary money manager Warren Buffett. Since taking the helm of Berkshire Hathaway in 1965, the so-called "Oracle of Omaha" has led investors to breathtaking returns, delivering a compound annual growth rate of more than 20%.

NASDAQ: AAPL

Buffett has made no secret of his love of Apple, saying "It's probably the best business I know in the world." He's gone even further, noting:

2. The resurgence of the iPhone

It wasn't terribly long ago that some were declaring the death of the iPhone, but the release of its latest device product lineup has shown that simply isn't the case. Apple launched four new iPhone models in 2020 -- the most ever released in a single year.

3. Apple: It's what the fashionable are wearing

Investors shouldn't underestimate the growing importance of Apple's wearables business. In fiscal 2020 (ended Sept. 26, 2020), the company's wearables, home, and accessories segment grew 25% compared to 2019, generating a record $30 billion and accounting for more than 11% of Apple's total revenue.

4. It's all about the services

Cook announced in early 2017 that Apple was aiming to double its services revenue by the end of 2020. In July 2020, he revealed that Apple had achieved that lofty goal a full six months ahead of schedule.

5. Dividends: The gift that keeps on giving

Apple resumed its dividend in 2012 after a 17-year hiatus, and it has since become a dividend powerhouse. The quarterly payout resumed at a split-adjusted $0.095 and has risen 132% in just nine years.

NASDAQ: AAPL

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Winners keep on winning

Tech giant Apple ( AAPL -0.94% ) is one of the largest corporations in the world, boasting a monster market cap of $2.7 trillion. It may be difficult to believe that the California-based company still has significant room to grow at these levels.

1. iPhone sales are still going strong

Apple's signature device, the iPhone, was first released in 2007. And while it has become one of the leading smartphones on the market, new releases of the iPhone still generate quite a lot of buzz -- more than 14 years after it was first introduced. Perhaps more importantly, iPhone models continue to generate robust sales for the tech company.

2. Apple's booming services segment

Over the past five years, Apple's services unit has become increasingly important. The company records revenue associated with subscription-based (and other) services in this segment. It includes Apple TV+ revenue, iCloud-related services, Apple Pay, and many other things.

3. Brand names matter

Companies that survive the test of time tend to have one thing in common: a competitive advantage. Of course, that can come in many different forms, be it from high switching costs, the network effect, or intangible assets such as patents and copyrights. Apple also has a solid competitive edge, namely its brand name (an intangible asset).

Don't jump off this ship

Every company faces obstacles, and Apple has recently encountered its share of headwinds. Most notably, the company's supply chain issues have hindered its ability to meet the demand for certain products.

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Signals & Forecast

A buy signal was issued from a pivot bottom point on Wednesday, February 23, 2022, and so far it has risen 1.67%. Further rise is indicated until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal.

Support, Risk & Stop-loss

Apple finds support from accumulated volume at $162.41 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

Is Apple Inc. stock A Buy?

Apple holds several negative signals and this should be a sell candidate, but due to the general chance for a turnaround situation it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.

Insiders are negative selling more shares than they are buying in Apple

In the last 100 trades there were 7.25 million shares bought and 13.54 million shares sold. The last trade was done 23 days ago by Adams Katherine L. who sold 2.3 thousand shares. In general the insiders are selling more stocks than they buy. There can be a variety of reasons for this, but in general it can be considered as a negative signal.

About Apple Inc

Apple Inc. designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players to consumers, small and mid-sized businesses, education, and enterprise and government customers worldwide.

Golden Star Signal

This unique signal uses moving averages and adds special requirements that convert the very good Golden Cross into a Golden Star. This signal is rare and, in most cases, gives substantial returns. From 10 000+ stocks usually only a few will trigger a Golden Star Signal per day!

Top Fintech Company

featured in The Global Fintech Index 2020 as the top Fintech company of the country.

Why You May Not Want to Give up on Apple Stock

I’d rather not get bogged down on a lengthy discussion about whether you should buy or sell AAPL stock. But if you’re thinking about panicking on Apple because of this second wave of store closures, I wouldn’t go overboard.

Not Completely in the Clear

While I don’t recommend panicking on Apple stock because of the store closures, I’m not thrilled at the prospect of buying shares right now. Conspicuously, shares are still near overbought levels. With the backdrop of a pandemic and a still-struggling economy, I’d like to see a dip before committing to a position.

Buy when others panic

My metric for assessing “success”, in this exercise, was the average forward one-year return. In other words: on any given trading day over the past four decades, what returns would each of the five strategies listed above have produced one year later, on average?

Now vs. then

Looking at the graph above, it becomes clear that bold investors who buy Apple when others want to dump the stock have done much better historically.

Twitter speaks

I was curious to see what others thought was the ideal strategy for timing an investment in Apple shares. So, I asked Twitter the following question:

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