Unveiling Apple Stocks: A Comprehensive Guide to Informed Investing
academomiaAugust 25, 20230
Wade Financial Advisory Inc. has made strategic adjustments to its Apple Inc. (NASDAQ:AAPL) position, reducing it by 2.3% in the first quarter, as reported in the latest 13F filing with the Securities and Exchange Commission. The company's holdings now comprise 22,735 shares of Apple stock, reflecting a sale of 525 shares during that period.
Apple's Evolution of Ingenuity
Apple has etched its name in history as a trailblazer in cutting-edge electronics, sparking global revolutions in technology. It all began with the groundbreaking Apple II computer in the 1970s, ushering in the era of personal computing. Subsequently, the 1980s saw the advent of the Macintosh, marking Apple's reintroduction of the PC concept.
The pivotal moment came in 1997 when Steve Jobs, Apple's co-founder, returned to lead the company. Under his guidance, Apple embarked on an era of innovation that birthed iconic products like the iMac, iPod, iTunes, iPhone, iPad, and the App Store. Undoubtedly, the iPhone has been the catalyst for Apple's modern triumphs.
Introduced in 2007, the iPhone revolutionized the smartphone landscape. Its debut catalyzed monumental growth, fostering a dedicated customer base that eagerly embraced Apple's products and services.
More recently, Apple's launch of the iPhone 12 series featuring 5G capabilities on October 23, 2020, marked another milestone. The iPhone's 14th iteration boasted enhanced cameras, a swifter processor, and a fresh design. The iPhone 12 Pro models debuted with a new rear-facing LiDAR scanner.
LiDAR, short for "Light Detection and Ranging," facilitated depth sensing for photography and videography, enhancing autofocus performance in low-light conditions. This advancement also laid the foundation for revolutionary augmented reality experiences.
The momentum continues as rumors swirl around the imminent release of the iPhone 13, anticipated to surpass its predecessors in specifications and features.
Current Target Price Analysis for Apple Stock
According to data from NASDAQ, analysts who have provided 12-month target price projections for Apple Inc. (AAPL) in the past three months have arrived at an average target price of $183.05 per share. The estimates range from a maximum of $210 to a minimum of $130.
In a differing perspective, Deutsche Bank analyst Sidney Ho has revised down Apple's (AAPL) target price from $200 to $175. Despite the adjustment, the "buy" recommendation remains intact. This adjusted target still implies an approximate 33% increase from recent levels.
Apple's Investments Amplify Impact in the US
Apple's Wearables, Home, and Accessories division experienced a robust 25% sales surge, reaching $7.8 billion in the March quarter. This category encompasses wearable devices such as the Apple Watch, wireless AirPods earbuds, and Beats headphones. It also features the compact and budget-friendly Apple HomePod Mini and a variety of other gadgets.
On March 12, Apple announced the discontinuation of its original HomePod music speaker, choosing to focus on the sales of the smaller, more affordable HomePod Mini. The price points stand at $99 for the Mini and $349 for the larger model.
Recent speculations have stirred excitement around Apple's potential entry into the electric self-driving car market. The rumors gained traction in January when Hyundai reported preliminary discussions with Apple regarding a potential automotive collaboration. Further discussions have unfolded with other automakers, including Nissan.
However, these speculations haven't yet translated into a stock boost for Apple. AAPL shares have seen a decline since the release of the first-quarter fiscal earnings report.
In a different vein, Apple is intensifying its investments in US manufacturing, research and development, and job creation. On April 26, Apple pledged to allocate $430 billion over the next five years to create 20,000 new jobs across the United States.
This commitment surpasses the original five-year investment target of $350 billion, set back in 2018. These investments encompass the establishment of a new campus in North Carolina, research and development initiatives in 5G wireless technology, artificial intelligence, and semiconductor advancements. Increased funding also encompasses data center expansion and the scaling up of Apple TV+ production facilities.
Analyzing Apple's Market Performance
As per Investors' insights, Apple's stock performance has faced challenges in the market since the mid-February onset of a broader tech industry sell-off. AAPL's relative strength rating stands at 46 out of 99. This rating provides perspective on how the stock's price performance compares to all other stocks over the preceding 52 weeks.
The Composite Rating for Apple stands at 71 out of 99, according to IBD's Stock Checkup tool. This Composite Rating amalgamates five distinct ownership ratings, encompassing both fundamental and technical performance, into an easily digestible score. Exceptional growth stocks usually boast a Composite Rating of 90 or higher.
Apple's historical feats are undeniable. In August 2018, the company became the first to attain a market value exceeding $1 trillion. Since that milestone, other tech titans such as Microsoft (MSFT), Amazon.com (AMZN), and Google-parent Alphabet (GOOGL) have ascended to the trillion-dollar echelon.
Apple repeated its feat in August 2020, becoming the first company to breach a $2 trillion market capitalization. Gene Munster, a seasoned Apple analyst and managing partner at Loup Ventures, even posited that the company could surpass a $3 trillion market cap within this decade.
Currently, the price of Apple stock stands at $151, or approximately equivalent to Rp2.2 million.
Technical Evaluation of Apple Stock
Drawing insights from Morningstar's analysis, AAPL stock has generated a robust 25.69% return over the past 15 years, outpacing the broader industry's 22.83% return.
In the past year, Apple's stock price has fluctuated within the range of $130 to $180. The current price hovers around the level seen in July 2021. However, this year's performance has been somewhat turbulent, with the stock price retreating by 20% from its $182 value at the beginning of January 2022.
Advantages of Engaging with Apple Stock
Quoting Detik Finance, the correlation between Apple stock and the unveiling of its latest iPhone series was evident on Thursday, November 15, 2020. Apple's stock frequently witnesses upward momentum as anticipation builds around new iPhone launches. If this pattern persists with the imminent iPhone 13 debut, investing in Apple stock could prove to be an astute move.
The current market downturn presents a unique opportunity for investors to secure Apple stock at lower prices. The renowned Warren Buffet serves as a prime example, having reaped substantial gains from his Apple stock holdings.
Reported by CNBC Indonesia, Buffet is estimated to have garnered $40 billion, or roughly Rp569 trillion