Apple Inc. is a multinational corporation based in Cupertino, California, which designs, manufactures, and markets consumer electronic products. It is the largest publicly traded company in the world with a market value of around $75 billion. The corporation was founded by Steve Jobs, a former college student who started a business in the garage of his home. He obtained a permit to operate from the home and later went on to found the company that we know today. Today, apple stock sales are very high compared to other stocks and are predicted to keep going up in the years to come.
One of the reasons for its rise in value is its outlook for the future. According to some analysts, apple’s outlook is very strong especially in the next two years. Some even predict that in the next four years, the earnings of the company will exceed the earnings of the year before and the earnings per share (EPS) will grow more than a hundred percent.
The stock is valued using Wall Street’s Standard & Poor’s and A.M. Best rating scales. Both these rating scales have been historically very good to good for stocks and companies that meet their defined criteria. These criteria include return on equity and stock price to earnings ratio. Other things the Wall Street analysts look at our debt to equity and the EPS growth in relation to the current and future financial resources available. Apple’s credit ratings are also strong and its long term debt is less than half of that of its current debt. This gives the apple stock a higher perceived value and allows for greater investment opportunities.
There are many financial publications such as the Barron’s, Dealbook, Street Research, Morningstar, and others that give recommendations on what stocks to buy. The latest stock experts have also weighed in on what is the best stock to buy based on their personal experiences with apple and/or apple products. One thing that they all seem to agree on is that there has never been a better time to invest in this company. They also believe that over the next two years the revenues are set to experience more than average growth.
One of the reasons the stock market has consistently underperformed other traditional stocks is due to the slow rise of the iPod. Apple has always sold plenty of its iTunes music products through the iTunes store. However, in September it introduced the iPod Touch which has taken the sales opportunity away from the apple stock and instead put it into the midst of the highly competitive iPhone and Nook devices from the major competitors. Apple now estimates that approximately 65 percent of its revenue comes from the iPhone and Nook versus the iPod Touch. This means that if you wanted to take a large loss on your investment, the iPod would outperform the iPhone and Nook.
With the recent release of the new iphone 12, the sales for the device have once again shown an upward slope. This may be due to the fact that the iPhone has finally replaced the much hyped Motorola DROID. Apple’s iphone 12 also sports a larger display compared to the iphones of previous releases. Many consumers are reporting that the larger displays allow them to view the applications in a more clear and bright manner that the previous versions.
The final piece of information released by the apple stock analysts is that they believe that the next “iPod” will introduce a media player feature similar to what is currently being offered on the iPod Touch. It is also suggested that the next version will sport a larger touch screen that is also comparable to the one used on the iphone. A final piece of information released by the analysts suggests that there is a chance that the next version could offer high definition video support. If this is true, it will be very interesting to see what video applications can be created on the new phones.
As you can see, the information provided by the analysts does not paint a very positive picture of the performance of the apple stock. However, if the company can develop at least one major product that captures the imagination of consumers, it will be exciting to watch its performance during the rest of the year. Right now, the market seems to be focusing more on the failures that companies like Nokia and HTC have experienced. If Apple can come up with a winner, it may just end up being the gainer when it comes to investing in the stock market.