In 1976 Steve Jobs and Wozniak founded Apple
How to Buy Stock in Apple in 2024
Updated: April 23, 2024
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If you didn’t already know, Apple is the very first publicly traded US company in the whole world to be valued at over two trillion US dollars. That’s because about two-thirds of the American population own one or more Apple products. Moreover, the annual revenue of Apple grew from 215.6 billion US dollars to 274.5 billion US dollars. The same is the case with its net income that rose from 45.7 billion US dollars to 57.4 billion US dollars.
What’s making Apple stock even more appealing is the recent stock split. According to the reports published on Apple’s official investor website, the shares of the tech giant had four for one split that brought the apple stock price from 499.23 dollars (at August 20th, 2020 closing) to only 127.58 US dollars (at August 31st, 2020 opening). In simple words, this split means that it has become even easier for the investors to purchase Apple stocks. That’s why Apple stocks are of great interest, and it continues to release new innovative products that gradually improve its financial performance that even Warren Buffett has huge investments in Apple.
As far as this matter is concerned, how Apple stocks are going to perform in the near and far future, the experts' report and apple stock forecast suggest that it will also be the first company to reach a three trillion-dollar mark. So, if you want to know how to invest in Apple, then keep reading this article till the very end. It contains all the important information and the fundamentals of Apple stock that you need to know.
General Overview of Apple Inc. Company
Apple Inc. was founded back in 1976 by Steve Jobs, who later became an ultimate Silicon Valley Icon with the Macintosh introduction in 1984. It all started in a garage, and Macintosh managed to make personal computers go mainstream. Later Apple stood up against the multibillion-dollar industry giants such as (HPQ) Hewlett Packard, and IBM.
Steve Jobs, throughout his career as the founder of Apple, remained consistent in building a closed and perfect ecosystem, and because of his insistent behavior, he was forced to leave his own company. But the fact of the matter is that the company had to call him back later in 1997 when everything was in deep trouble. From that point onwards, Apple kept surprising the world with innovative products such as iPod in 2001, which was truly a blockbuster. Later on, when the company launched the iPhone in 2007, it shook the world and continues to do so to the present day.
Here are some of the most significant points about Apple stock.
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On December 12th, 1980, the very first Apple share went public with 22 US dollars per share, and the company had a market capitalization of 1.2 billion dollars on that day
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In 1985 Steve Jobs and Wozniak both left Apple, and because of the poor leadership after that, the company's stock price decreased to even below 2 US dollars per share.
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In 1997 Steve Jobs returned to the company.
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It only took a year for Steve Jobs to come up with an amazing product, and the very first iMac was unveiled in 1998.
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In 2000 the company released Power Mac G4 Cube along with the Mac OS X.
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In 2001 as mentioned, Apple launched iPod (a digital music player) that changed the music world.
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In 2007 the revolutionary first smartphone iPhone was released, and it's still one of the best-selling smartphones even after more than 13 years.
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In 2011 Steve Jobs resigned, and Tim Cook became the CEO of Apple. Steve Jobs also passed away later that year, but during his time, the total revenue of the company reached 110 billion US dollars, and the stock price was increased to 380 dollars per share. Moreover, Apple had a market capitalization of 360 billion US dollars in 2011.
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In 2014 Apple stocks split, and the share price of AAPL dropped to 92.44 US dollars from 645.57 US dollars.
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In 2015 Apple came up with Apple Music which is a subscription-based service.
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In 2016 Apple drew the attention of Warren Buffet, an American business tycoon and one of the most successful investors, and he bought about 10 million AAPL shares.
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In 2018 Apple managed to become the first US company to hit one trillion US dollars value.
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On August 19th, 2020, Apple's stock news of hitting a staggering two trillion US dollars value stunned the whole world.
Top Facts About Apple for 2020
The shares of Apple remained unstoppable, especially in the first quarter of 2020. According to the CompareCamp report, Apple managed to secure the revenue (only against iPhone) of 55.96 billion US dollars only in the first fiscal quarter of 2020. Here are some of the most significant facts about Apple for 2020.
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Apple secured 58.3 billion US dollars revenue in 2020’s first fiscal quarter and also had 11.25 billion US dollars of net profit in the same period as well.
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Only in the US, Apple had 41.4 billion US dollars of revenue in the first fiscal quarter of 2020, which was recorded as the highest in the whole world compared to regions.
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The iPhone, as always, was the best-selling product by Apple in March 2020 that generated a revenue of 28.96 billion US dollars.
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According to Forbes, Apple also ranked as the sixth-largest public company globally, and it was the only tech organization that managed to secure its position in the top ten list.
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Apple shipped about 37 million smartphones globally only in the first quarter of 2020
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In the second fiscal quarter of 2020, the Services division of the company generated 13.4 billion US dollars of revenue.
What to Expect from Apple in 2024?
In 2020, Apple’s (AAPL) fortunes were changed by the iPhone 12 lineup as it became the best-selling 5G smartphone within no time. Experts suggest that the company will most probably keep up the current momentum in 2023 as well. As Apple sold about 195 million iPhones (the biggest source of revenue) globally in 2020, the management of the company predicts that the revenue will continue to increase in the first fiscal quarter of 2023. According to a recent report by BusinessInsider, Apple is planning to increase the production of iPhones by 30 percent for the first half of 2020.
Other than iPhones, Apple also expects its other products and services to earn even more revenue in 2023. According to CFO Luca Maestri, the management of Apple expects that all of the other services and products will grow double digits in the fiscal quarter of December. It indicates that the company is sitting on multiple growth drivers that most probably will support it to get to a higher gear in 2023. That’s why Yahoo Finance analysts estimate that Apple will experience about a 15 percent increase in revenue.
| Title | Apple inc. |
|---|---|
| Index | DJIA S&P 500 |
| Stock Ticker | AAPL |
| Price* | $128.98 |
| Market Cap | 2151.3 B |
| Income | 57.41B |
| P/E Ratio | 39.48 |
| Dividend Yield | 0.64% |
| Earnings per share (EPS) | $3.27 |
Why Buy Stocks in Apple: Investing VS Speculation
There is a famous saying on Wall Street that great companies have their distinction and reputation priced into their stocks. Many people who don't know the history of Apple stocks think the same about Apple, but that's not true as it sells considerably less. That’s mainly because of the psychology of the investors who generally don’t credit the records and history of Apple’s success to their investing practice. Other than everything, one thing that this does is that it turns investors into speculators, making them buy and sell stocks recklessly. But it’s not a good practice to buy apple stocks.
Speculating is basically a practice of guessing the upcoming stock values and investing without the knowledge to seek abnormally high returns. But in data-roolrip="Traders Union / Interesting articles /How to Buy Stocks Online: Key Rules and Life Hacks How to Buy Stocks Online: Key Rules and Life Hacks"reality, speculating comes with a very high probability of failure. On the other hand, investing is about investing in valued stocks and waiting patiently for a long time to make a profit. This typically keeps risk at average or below-average. Of course, investing can cause loss as well, as it always comes with risks. Apple may collapse completely like many other organizations, but it has tremendous potential, and the probability of growth is higher. If this possibility didn't exist, then the opportunity for investors wouldn't exist as well. That's why it's always important to learn about the history of the company you're interested in to better understand how to buy shares in the stock market.
👍 Pros
The secular growth remains robust
China headwinds are easing
Big services are growing, such as Apple Arcade and Apple TV+
The trajectory of growth looks great
The stock prices of Apple are lower than its competitors
👎 Cons
The antitrust risks regarding App Store loom large
The economic war with China is cyclical, and turbulence is around the corner
Apple’s hardware install base is shrinking as the services grow larger
112.72 billion US dollars of total debt
The stock is still a little costly as compared to historical standards
Fundamental Analysis of Apple Inc (NASDAQ: AAPL) stock
You might have already known that the most challenging part of investing is the identification of the stock you want to buy. If Apple is your choice, then there is another important factor that you must consider, which is performing comprehensive research and fundamental analysis to understand how to buy Apple shares. It’s important to bear in mind that knowing a company as a customer or generally doesn’t exactly mean that you also know it as an investor. You need to perform both qualitative (management, competitions, source of profit evaluation) and quantitative (earnings, net income, revenue evaluation) research.
You can also go through quarterly and annual company reports that Apple officially launches. It will provide you with all the important information such as expenses, sources of income, financial results, operations, etc., regarding the company. It’s also wise to learn about the factors such as growth rate, PE (Price to Earnings) ratio, and dividend yield (especially dividend is one of the reasons why you want to buy shares Apple. Here is Apple's current stock chart.
Fundamental Analysis of Apple Inc (NASDAQ: AAPL) stock
Apple Stock News
Last year (2020) was devastating for most of the businesses globally, but that's not the case with Apple because it barely flinched. The fact of the matter is that the Apple stock is about 70 percent up as compared to what it was this time a year ago. The main and probably the most important question for the Apple shareholders is whether AAPL will continue growing or has already reached critical mass. It is also important for the people who want to buy Apple stock online because it can make or break their investing experience.
The best way to figure it out is to continuously keep in touch with the Apple stock news. Here is the current summary of apple stock.
Apple Stock News
Currently, iPhone 12 is the best-selling product by Apple, and in 2023 iPhone sure will come up with iPhone 13. Critics and experts suggest that it will be the next big Apple stock growth driver. Other than iPhone, wearables and services have given Apple a boost in Sales. In the December quarter fiscal, the revenue of Apple services grew about 24 percent to 15.8 billion US dollars. The services include Apple Arcade, Apple TV+, Apple Music, Apple Pay, iCloud, AppleCare, App Store, etcetera.
You also have to keep in mind that currently, the company is facing antitrust scrutiny in the USA because of its App Store policies that now require a 30 percent commission fee. However, Apple has reduced this fee for the small developers to 15 percent, but still, the stocks tendered down a little because of this new policy.
Meanwhile, the Accessories, Home, and Wearables by Apple also have experienced a 30 percent increase that makes up about 13 billion US dollars in the December quarter fiscal. It includes Beats headphones, AirPods, Apple Watch, Apple HomePod, etc.
There are also rumors that Apple is currently working on a self-driving electric car project, but this news failed to lift up the AAPL stock.
What does Wall Street think About Apple Stock?
Since Apple is one of the biggest players in the industry, Wall Street has also been sharing valuable information on AAPL stocks.
Dan Ives, who is a Wedbush analyst, remains to be the bull of the bulls of the company. On February 22nd, 2023, he published a note that suggests that the Apple stock will reach the value of a whopping three trillion US dollars by the end of 2023. It’s rather a bold claim as it represents about a 43 percent increase (expected to take place only in 10 months) as compared to the current levels. Mr. Ives also said that it would have been a lot easier if Apple had taken the opportunity to buy Netflix several years ago. But still, this segment by Apple (Apple’s Services especially Video Streaming) continues to perform impactfully. He believes that the services division of Apple will double its revenues in the next five years.
Harsh Kumar from Piper Sandler is more interested in the self-driving electric car segment of Apple. He expects that by 2030 the revenue of Apple’s electric car department will be more than 50 billion US dollars.
But it’s important to note that at the end of the day, Apple is still a company that offers consumer-based services and tech devices. So, if you're wondering, "how can I buy stock in Apple" consider understanding Apple's business model first. It is necessary to look for the current estimates and forecasts of analysts as well instead of directly investing by falling for speculations and rumors.
Should You Buy Apple Stock Now?
The next and probably the most important factor that you need to consider is whether you should buy Apple stocks now or not. Here are some of the most important considerations that you should look forward to.
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PE Ratio
PE (Price to Earnings) ratio is basically the valuation ratio of the existing share value of the company as compared to the last 12 months' per-share earnings. If the PE ratio is higher than the average (between 13 to 15 on the S&P 500), then you can expect a good profit.
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Recommendations by Analyst
As mentioned, it’s always better to look for analyst recommendations before buying shares of any company. As far as the analyst recommendations of Apple are concerned, they still have a strong buy rating. But you should always explore the recommendations before making your final decision.
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Future Plans
Considering the future plans of the company you’re interested in is also an important factor. We have already mentioned that the iPhone generates the biggest part of Apple's revenue, but still, the company is not solely dependent on that.
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Dependency
It’s not only the iPhone that is one of the biggest dependency factors of Apple. China also plays an important role as it manufactures iPhones as well as other hardware. So much so that only the business of Apple in China makes up about 20 percent of the company's revenue. So, you need to read all the related news about Apple and China, as well as we all know that the political landscape of China and America is not going in the right direction.
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Don’t Actually Believe Everything You Hear and Read
If you are a serious investor and want to buy apple stocks, then you must not believe every report you read or every news you hear. In fact, you must cross-check it by going to reliable sources to make sure if any news is true or not. Moreover, understand the impact of the rumors and news as well because they can also change the value of stocks.
Should You Buy Apple Stock Now?
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Step 1. Choosing a Broker
First, you need to find a suitable online broker that offers all the important features and tools that you need. Consider comparing the features that different brokers offer and then decide which suits your needs the best.
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Step 2. Opening a Brokerage Account
Once you have chosen your online broker, the next step is to open your brokerage account. Consider it opening a bank account but over the internet. Some brokers take some days to cross-check your information, and some offer a quick account opening process.
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Step 3. Buying Apple stock
Once you have opened your account, the next step is to deposit money to the account and then buy the apple stocks by selecting the number of shares and pressing the buy button. Consider exploring the different order types such as market order and a limit order.
What Are the Risks of Buying Apple Stock?
Here are some of the most significant risks of buying Apple stocks that you must take into account before investing.
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Too iPhone dependent
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China Exposure as discussed earlier.
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The high valuation could be the critical mass
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The antitrust risks regarding App Store
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Too much debt
Five Tips for Investing in Apple Stock
Here are five of the most valuable tips for investing in Apple Stock:
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Focus on the long-term perspective.
You should always prefer long-term strategies, which means that you should make fewer transactions and wait patiently to earn larger gains. The long-term investment allows you to at least earn 200 pips per trade.
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Choose a large reputable stockbroker.
It's always important to choose a stockbroker with better repute and reliability. Not only does it help its customers, but you also receive the promised services and a better trading experience.
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Assess your financial capabilities.
You must understand your financial capabilities as well to make sound and informed investing decisions. It allows you to plan and budget ahead of time and avoid becoming over-indebted.
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Diversify your portfolio with other stocks.
Diversification of portfolio means that you must not put all of your eggs in one basket. It reduces the risk factors as your investments are allocated across multiple financial industries, instruments, and many other categories.
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Consider investment alternatives.
Alternative investments mean the options to change your volatility exposure and to earn more returns beyond holding bonds and stocks. It can be a compelling choice to have a diversified portfolio.
Summary
There you have it. We hope this comprehensive guide will help you to understand how to buy stock in Apple. The company is undoubtedly growing for now, but you must consider all the information that we have covered to make an informed and wise decision.
FAQ
Can you buy Apple stock directly?
No, you cannot buy apple stocks directly from Apple. But you can use any online brokerage to invest in Apple stocks.
Does Apple pay a dividend?
Yes, Apple pays dividends as in 2020, the amount per dividend that the company paid to its shareholders was 2.62 US dollars.
What was the recent Apple stock split?
The most recent split took place on August 31st, 2020 that brought the apple stock price from 499.23 dollars (at August 20th, 2020 closing) to only 127.58 US dollars (at August 31st, 2020 opening).
Apple News free on iPhone?
You can access the Apple News application through iPhone, but you need to buy a monthly subscription to access the content on the News+ app.
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