As a result of the consumer electronics giant’s June quarter results announcement, Apple’s (AAPL) shares have soared to record highs. When it comes to investing, many investors ask whether Apple stock is a good investment at the moment.
Many times, Apple has been a success story for the United States. In the 1970s, it was the Apple II that sparked the personal computer revolution. Afterward, in the 1980s, it redesigned the PC with its Macintosh model.
Steve Jobs, Apple’s co-founder, returned to the company’s helm in 1997 and supervised a string of successful inventions, including the iMac, iPod, iTunes, iPhone, iPad, and the App Store.
The iPhone is Apple’s most important modern success factor. 2007’s groundbreaking iPhone triggered years of tremendous growth and developed a dedicated following of customers eager to pay for Apple products and services for the rest of their lives.
Customers are holding onto their phones longer between updates, resulting in a slowdown in iPhone sales. With its first 5G iPhones, Apple is in the middle of a significant update cycle.
iPhone 13 Way To Launch
A 5G-enabled iPhone 12 series has been available for purchase from Oct. 23. 5.4, 6.1 and 6.7-inch displays are included on the devices, which start from $699 to $1,099. Apple’s new 14th-generation iPhones include superfast 5G wireless connection, as well as better cameras, faster processors, and an entirely new design.
The rear-facing lidar scanner on the iPhone 12 Pro models is a new feature. There are several ways to make use of Lidar in photography and video, including quicker autofocus in low light settings. Because of the new iPhone features some experts forecast high gain on stock in the near future as the expectation on new generation increases from time to time. However, it is also worth noting that when the iPhone 12 was unveiled, and suddenly became one of the undervalued stocks as Apple’s shares dropped by 2.7 percent. It was the worst reaction an iPhone launch has ever received from Wall Street. However, that’s not the case for today, because Apple isn’t on the list of undervalued stocks in 2021, which reveals those stocks that aren’t as popular among investors as they should be. It is also worth mentioning that sales reports for the iPhone 12 series, especially the more costly versions, have been favorable. It’s possible that unveiling a new iPhone occurrence may act as a catalyst for Apple shares in the near future. A long-awaited lost item tracker called AirTags was also introduced. After the event, Apple’s shares fell 1.3 percent.
Apple Stock Growth Opportunity
Investors question what will become of Apple shares now that the iPhone industry has matured.
Services and wearables have recently boosted Apple’s sales and profitability.
A 32.9 percent year-over-year increase in Apple’s services revenue to $17.5 billion was recorded in the second quarter of 2012.
As a result of Apple’s App Store rules, notably its 30 percent commission charge, the company is being investigated for antitrust violations in the United States as well as Europe. To placate authorities, Apple lowered its small developer commission rate to 15 percent on Nov. 18.
As a result of a lawsuit by Spotify Technology, the European Union’s antitrust authority filed preliminary accusations against Apple on April 30th (SPOT). App Store distribution has been charged by the European Commission for being abused by Apple. In response to the announcement, Apple’s shares plummeted by 1.5 percent.
Epic Games sued Apple for anticompetitive business practices with its App Store, and Apple defended itself in federal court in the U.S. in May. The judge in the case will provide a decision in the near future.
Wedbush Securities believes Apple’s regulatory and legal issues are weighing on the company’s shares.
A 36 percent rise in revenues to $8.8 billion in the June quarter was recorded by Apple’s Wearable Devices, Home, and Accessories segment.
While everything is going on, rumors are circulating that Apple is working on a self-driving electric vehicle. As early conversations with Apple regarding automobile cooperation were being revealed by Hyundai in January, the rumor mill began to rev up. According to press sources, Apple has reportedly conducted discussions with Nissan and other automakers.
Ulrich Kranz, a former BMW executive and co-founder of electric vehicle company Canoo, was hired by Apple in June, according to Bloomberg. Apple’s technology vice president Kevin Lynch allegedly moved from the Apple Watch team to the Apple vehicle project in July.
Doug Field, the Apple vehicle project’s director, was hired by Ford Motor (F) in early September, Bloomberg said, causing a stumbling block.
Apple’s stock hasn’t risen significantly as a result of the Apple vehicle speculations.
Apple’s June-quarter report was released late on July 27. Apple’s shares, on the other hand, dropped 1.2 percent the day following the results announcement.
This is based on the $81.4 billion in sales for the quarter ending June 26. Profit of $1.01 per share on sales of $73.3 billion had been expected by the analysts at Apple Inc. Profits at Apple rose 100 percent in the same period, while sales jumped 36 percent. 49 percent of Apple’s sales at the time came from the iPhone.
As a result, Mac computer sales climbed 16.3 percent to $8.2 billion, and iPad tablet sales grew 11.9 percent to $7 billion, according to IDC. The Covid-19 epidemic drove the work-from-home and school-at-home movements.
citing market concerns linked to the coronavirus epidemic, Apple didn’t provide any particular guidance for the third quarter of 2012. “Directional insights” for the current quarter were more cautious.
A slowdown in the services sector and foreign exchange headwinds were among the forecasts. iPhone and iPad sales would also be impacted by supply limitations, according to Apple.
After that, the release of Apple’s iPhone 13 devices might be a trigger for the company’s stock price.
The IBD Relative Strength Rating for AAPL is 84 out of 99. How well a stock’s price has performed over the past 52 weeks is measured by its Relative Strength Rating.
AAPL became the first business to surpass a $2 trillion market worth in August 2020. This milestone was reached on June 22.
Morgan Stanley claimed on Nov. 30 that Apple is one of the greatest 5G wireless investment possibilities, which boosted Apple’s shares.
It was at 137.17 out of a cup-base on June 30 that Apple’s shares struck a purchase mark.
On July 9, the AAPL stock achieved a new purchase mark of 145.19 dollars. A record high of 157.26 was reached on Sept. 7 – a new high.
On the IBD Watchlists, Apple stock appears on the Leaderboard as well as the Stock Spotlight lists.