Stock investment has long been considered the best value for money for those craving long-term wealth. The average return on the market in 2022 made 10%, which is quite a deal, however, everything depends on a particular company. Obviously, everyone wants to invest money and have significant payback, yet, nothing is that simple. As a rule, the biggest portion of interest is given to companies that are famous worldwide and are the most valuable regarding market capitalization.
One such example is Apple Inc., a multinational technology company, a brand of unsurpassable success and customer loyalty unseen before. Apple’s origin dates back to the 1970s, and it keeps growing its army of followers, creating a shopping hysteria with the launch of every new product.
Apple has seen various stock situations, therefore it’s important to analyze all the data, in order to see the big picture and come up with a decision. If you are new to the stock market, get organized: create infographics (check for infographics template online) with graphs displaying highs and lows by quarters and years. Such visual support will help you make up your mind. Besides, you can add data from various companies, just to compare the growth tendency.
Financial performance
Apple Inc. is currently dominating the capitalization market, reaching almost $2.5 trillion, with an average of $175 per share, and a cash dividend of $0.23 per share. 2022 wasn’t a year of outshining success for Apple Inc., yet it managed to outperform its rivals. The year totals marked an 8% increase, which lead to $394.3 billion in revenue. As of December 2022, the stock price experienced a 27% drop, compared to the beginning of the year, and reached $126.05. Such a decline was faced by various corporations due to recent macroeconomic issues.
In 2023, up until now, the price started from 125.07 and reached 148.50 on March 10.
Reasons for potential growth:
Indian production
Apple’s market will certainly benefit from the change of a main manufacturing site. The main producer, China, has encountered various problems recently, due to constant Covid restrictions and poor working conditions. Therefore, there has been a relative decline in production. With the transfer to India, the situation will get better in terms of stability.
Product expansion
Apple is working on VR and AR devices including a mixed-reality headset. Initially, the company wanted to launch it in 2022, however, the plans were not fulfilled. Thus, there’s a high chance of seeing innovations this year.
Market expansion
Apple is planning to open its store in India, which will lead to new financial contributions. Unlike the common belief that the Asian market is marked by low income, the Indian economy is facing growth in recent years and is the second fastest-growing economy in the world. According to the statistics, more than 90% of the Indian population uses iPhones. Consequently, direct access to a whole lineup of products will meet a tremendous rise.
Related service revenue
Apple is not just a product line, it’s a yearly subscription for specialized applications, advertising, etc. The more phones are sold, the higher the need for associated goods and services.
Financial forecast for 2023
With a noticeable decline in 2022, the 2023 performance is anticipated to be much more profitable, reaching, according to various estimates from $176.70 to $210 during the year. Less optimistic forecasts expect the fall to $108.77 over the year, going lower than $100 in the following years.
What is more profitable: to invest in a startup or Apple.Inc?
Many of us are often in two minds about the most suitable company to invest in. If the startup is successful, the yearly income will be much more significant, than with the big corporations, where the cost of stocks is much higher. However, you need to consider the affordability of such risk (say, angel investment). Obviously, big companies grew from the startups, however, there is a concerning number of those who failed, evaporating all the investments.
It’s recommended to invest in small portions, and observe the development of the situation.
Apple Inc. shares cost a lot, however, it’s a fair price for stability and consistency proven over the years of existence. Despite the variability of the tech market, Apple is still holding the lead, as the brand keeps working.
The question of investment is a personal decision. It is important to read the forecasts, compare the tendency and analyze the market in general. Besides, it’s worth checking the main rivals on the market and what they have on offer, as it may shift the preferences of some customers. You need to dedicate your time to learning all the aspects of the question, make the infographics, weigh all the risks, define your risk tolerance, and only then come up with the solution.
It’s crucial to remember that you can’t invest more than you can afford. Such a luxury is only for those who have a highly-developed intuition, proven by time. Otherwise, be very reasonable and moderate.