Apple is like an ATM that on a regular basis dispenses money to its investors. Whatever the market condition is, Apple stock is almost always in the green zone. It’s been steadily growing, same as the company’s capitalization. Now, it’s the moment when Apple has dropped a new financial report and – guess what – the shares carried a price hike again. Let’s try to investigate whether there is room for future growth or not.
You often see Apple stock in articles saying things like “If you’d invested $1 in Apple in 1990, now you’d have…”. An old trick – but it makes sense. For example, in the chart below we can see the Apple share price growth over the last 5 years – 275%! Moreover, the picture shows how fast Apple revives after crisis moments – it's easy to see here such events as the beginning of the pandemic, the start of the military conflict between Russia and Ukraine, and the ensuing crisis. And every time, Apple shares come back to their positions shortly after.
Okay, in the next chart, we narrow the time range. Since the beginning of the year, Apple stock has already risen by more than 35% – a pretty impressive pace. And there are various factors influencing the price of the shares. If you want to get profit from these changes, you can use special trading tools. One of them is economic calendar which gives you the opportunity to watch all the major economic events and forecast the market’s next movements.
The fresh Apple report has turned into a May hike in the chart. The most impressive aspect for market participants is Q1 iPhone sales beating the expectations – $51.3 bln against $48.9 bln. After the earnings report, the company’s stock has grown by nearly 4%.
Simultaneously, the total revenue has turned out to be not as good compared to Q1 2022, down 2.5%. Additionally, other Apple device sales (MacBooks and iPads) try to catch up iPhone results but with no luck. The last fact generally reflects the macroeconomic situation in the world where the demand for personal computers decreased as well as the purchasing capacity of the population.
But we know Apple has many tricks up its sleeve. This is a legendary brand with numerous loyal customers, strong ecosystem, and products which have become household names. Apple stands out among other tech giants for its reliability and might be a safe haven for investors. This is also confirmed by the fact that Apple has still avoided mass layoffs (at least, in comparison with other companies). Moreover, as opposed to macroeconomic conditions, Apple has upsides such as rising dividends and a buyback program.
All the abovementioned factors and the Q1 report didn’t provide us with brand-new info about Apple and its business, but they allow market participants to remain positive on the company’s stock. One by one, analysts raise target prices for Apple to the mark of nearly $185 – it’s about 8% from the current price. Moreover, the vast majority of the time the shares have ‘Buy’ rating.
Everybody loves potentially profitable purchases. However, you shouldn’t go for Apple stock or any other just because they have been given good ratings by analysts. Every buy or sell requires your own research, which allows you to agree or disagree with experts.
