Apple Stock Review, Why the Stock isn’t Worth Your Money
As one of the largest tech companies, Apple is a global dominator in phone manufacturing and personal computing. Apple has far more beneath the surface than just some fancy looking phones, but today we’re not here to talk about their fancy phones. We’re here to talk about Apple stock and give it a full review with fundamental analysis of Apple’s current stock price, past stock price, and possible future given its PE ratio, fair value , chart events, and performance projections for the next year.
What is Apple?
Everybody knows about Apple. The giant tech company started by Steve Jobs and Steve Wozniak that revolutionized the personal computing standards of the day and gained massive popularity throughout the early 2000s. Apple has been publicly listed for nearly four decades and has an incredible history. We won’t be talking about Apple’s history, but rather, giving an Apple stock review based on its financial trends and future outlook based on information available to us at the time of writing this.
Apple Stock Movement
Apple stock was stagnant through most of the late 20th century, despite competing with giants like IBM and Microsoft, and gaining traction in the late 2000s. More recently Apple has seen its stock price jump over the last five years, more than doubling. And over the last 10 years, it has grown more than 8 times what it was once worth. The stock changes can be attributed to iPhone’s superiority in the smartphone industry as well as Apple’s iMac, MacBook, and iPad platforms. Apple’s current PE ratio is 24.47, for a large tech company this is not super out-of-the-ordinary, but Apple stock is currently overvalued, and this is a huge factor in why our review is less positive for the stock at this time. It is showing bullish patterns and its projections look good for short-term, mid-term, and long-term investing.
Apple has recently begun revealing new information about its brand-new iPhone 12. Many say that iPhone 12 could be a means of recovery for the tech giant, however, many say that it could be the beginning of a gradual downward trend over the coming months. Many are saying that iPhone 12 is slated to be somewhat of a disappointment. The iPhone can have as many cameras as Apple wants, but unless its iPhone series is able to continue producing groundbreaking technologies such as face ID and tap to pay, many consumers may just hold on to last year’s iPhone. The new 2020 MacBook Pro has also been considered by some to be overpriced and outdated, with its entry level MacBook Pro having specs similar to an HP or Samsung laptop that costs half, or less, than the 2020 MacBook Pro. It is clear that Apple has quite a bit of work to do over the next two quarters if it wants to see good returns at the end of the year.
Should You Invest in Apple Stock?
Due two Apple’s possible iPhone flop and decrease in retail sales, it may be better to hold off on buying Apple stock. Though Apple as a company will continue to turn profit for many years and will likely see a huge gain over the next 5 to 10 years, this year in the middle of a pandemic where retail sales are at an all time low, it is this writer’s opinion that Apple stock is not a buy at this time.
Update to My Apple Stock Review, is the Stock Worth Buying
So I personally would’ve called Apple stock a buy around this time next year, due to their high earnings, the inflated tech-bubble stock market that we had in the pandemic 2020 stock market year, and due to the fact that they had high earnings reports and a stock split that came up, making each individual share cheaper for your average everyday investor and allowing for an influx of capital due to stock buys that Apple could use. Add in the fact that the Government literally had to make share buybacks illegal so that large companies would not exacerbate the wealth gab even more by taking advantage of cheap stock, and you have yourself a recipe for the win on Apple stock, it was cheap last year, and even with a price to earnings multiple of above 41 right now, I think it is still undervalued, and that it could very well close to double in the next 2 years or so. A friend of mine has had nearly all of his money in Apple stock for the past 5 years or so, and he has consistently out-performed the stock market, hitting as much as 60 to 70% return years while my index fund investor theories have gone out the window and have been crushed at the power of these Apple stock returns. Stay tuned for later blog posts in the year as I show you why these crazy valuations for Amazon and Tesla cannot hold up given these unsupported fundamentals, as well as how I am still holding on to my Amazon shares anyway for the foreseeable future. Until next time, you heard it first at Inflation Hedging.com.
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