Apple brand name is the synonym of innovation. The company that reinvented the way we perceive computers and phones, no one can question that. Some people built even a fucking cult of fanboys around Apple, who masturbate at every product that the company makes. However, we are not here to judge these guys. Instead, we would like focus on the company itself and most importantly – on Apple stocks investment.
When giant was born
Apple Inc debut on the stock market happened on December 12 in 1980, on NASDAQ. The stock was priced at $22 back then. If you had the possibility to invest $1000 in Apple stock at IPO time or shortly after, you would have $228,113 at the end of 2016. That is considering all the stock splits that followed. Just crazy.
Since IPO, Apple stock was steadily growing with just a few downturns on the way. The stock still magnifies both private and institutional investors. The biggest shareholders include Arthur Levinson, Tim Cook, Craig Federighi, Albert Gore Jr, Bruce Sewell and also Vanguard Group Inc, BlackRock Inc, State Street Corporation.
What is happening to Apple Stock now?
Now it’s been almost 37 years since Apple’s initial public offering. Apple is not simply a blue chip company. It has the largest market capitalization in the world – $815.39 billion, which is almost three times higher than the GDP of Ireland, for example. Apple stock has been on the streak of gains since 2009. The stock appreciated from $14 per share to the current all-time high of $157.50 per share. Quite a nice momentum for investing in Apple.
In the latest quarterly earnings, Apple reported the EPS of 1.68 and the revenues of $45,4 billion. Not a huge surprise, these figures have been all previous Wall Street expectations.
Despite the fact that everyone is preparing for the upcoming Apple presentation in September to see the new iPhone 8, Apple managed to sell 41 million past-gen iPhones in the non-season. This boosted the bullish outlook at the company.
Will buying and holding Apple stock pay off?
Even Apple stock rallied substantially recently, it is still cheap in terms of P/E ratio (17.92) when comparing to S&P 500 index (23.49). This creates a room for more Apple stock appreciation. Additionally, Apple is heading towards becoming the first trillion dollar company by the market cap. Even Warren Buffer broke his rule not to invest in tech and bought Apple stock last years. This all might sound as a fucking fairy tale, as no stock is ideal. However, Apple shares are destined to soar.
First of all, Apple has around $262 billion in cash reserves. No other company, even Alphabet and Microsoft combined, do not possess such a pile of cash. Such a war chest definitely shows Apple’s financial health and ability to generate immense cash flows.
The company’s ability to innovate cannot be undermined. New models of iPhone, MacBook, iPad and Apple Watch will still allow milking a cash cow, but we can also witness absolutely different product soon. The company is already rumoured to secretly develop its own computer-like cars. Regardless whether this is true or not, it is worth to invest in Apple shares.