- AAPL is a trillion dollar company now with two trillion dollars!
- Apple stock lagged as technology suffered.
- Last time the buffet sold a little, but is it wrong this time?
Rumors of Apple’s demise have been greatly exaggerated, but the stock has been lagging lately as tech companies and the Nasdaq lean towards reopening stocks. The AAPL peaked at $ 145.09 in January and has rebounded since then. Apple dropped to $ 116.21 before rebounding slightly.
AAPL is currently trading at $ 128.09 on Thursday’s preliminary market.
Apple shares will split
In 2020, Apple split stocks 4 to 1, which means the stock looks more affordable to retail investors, possibly due to psychological effects. Berkshire Hathway is Apple’s largest shareholder and is known to have never split shares. Consequently, Berkshire shares are trading at a whopping $ 395,888! Apple has done stocks in the past, seven to one in 2014. The possibility of a split in the future cannot be ruled out. However, at this point, given the recent split in 2020, it will take a little longer for the next split, or the stock would need a decent rise in share value.
Apple stock forecast
Apple has been a resounding success with strong growth, loyal customer base and brand recognition that surpasses any other company. Recent earnings-per-share (EPS) forecasts suggest growth could slow as analysts forecast growth to slow from 30% to less than 10%. But due to the pandemic ban, sales of exercise-related products have skyrocketed, and Apple is positioning the Apple Watch as a premium watch, a must-have for fitness. Its partnership with Nike for the Apple Watch has raised its profile. Loyalty to the Apple iPhone is unlikely to diminish anytime soon, as recent security concerns have led Apple to occupy what it calls moral superiority in terms of data sharing and security features. Consumers, even those outside the Apple ecosystem, believe that Apple products are probably safer than the competition.
It can be predicted that growth rates will slow down and EPS growth will fall from over 30% to less than 10% as mentioned, but this is assuming constant numbers for products and sales. Apple is an innovator nonetheless, so expect new features and new products to support growth in the coming years. We’re in the midst of an ever-growing and accelerating technological revolution, and product innovation is Apple’s strength. Consumers know and trust that Apple will deliver a cutting edge product with a quality design, which is why product launches are always the catalyst for Apple’s finances. The company is rumored to be launching wearable glasses, new watches and car partnerships. The list is endless. This is a company that never stands still and has the money and know-how to try out new products. Some of them will fail, but others are more likely to become outliers. This is Apple’s way.
Revenue growth is also forecast to slow down from an impressive + 20% to a lower 5-7%. Again, this involves deploying a static product without any problems from new products. While Buffet may have been on sale recently, it was a paltry amount. Berkshire is Apple’s largest shareholder, and the world’s most valuable investor doesn’t make too many mistakes. As a valued investor, Buffett likely sees outstanding leadership, strong balance sheet, and revenue that will fuel the company’s continued growth. Buffett is notoriously wary of growth stocks, but Apple fluctuates in both price and gain.
Apple technical analysis
AAPL stocks have pulled back well from previous highs to move into a consolidation phase. The MACD crossed and gave a buy signal, and a break above $ 128 pushes the stock out of its recent range and opens new highs. The 50-day and 21-day moving averages also performed well and the AAPL has broken through them and remains above all key averages, which is a bullish trend.
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