Where will Apple’s share price be in 5 years?

Over the past five years, Apple’s share price has surged about 460%. Annual revenue rose from $215.6 billion to $274.5 billion between fiscal 2016 and 2020, while Apple’s annual net income grew from $45.7 billion to $57.4 billion. Where will Apple’s share price be in 5 years?

Apple Park in Cupertino, California
Apple Park in Cupertino, California

Leo Sun for The Motley Fool:

Analysts expect Apple’s revenue to rise 21% in fiscal 2021, then grow another 4% in 2022. Most of that growth will come from new hardware devices and the expansion of its services ecosystem… Strong shipments of the iPhone, which generated half of Apple’s revenue in 2020, should tether more users to its growing services ecosystem, which includes the App Store, Apple Music, Apple TV+, Apple Arcade, Apple Pay, and other services. Apple generated 20% of its revenue from those services last year, and it recently surpassed 600 million paid subscribers across the entire ecosystem.

A successful launch of the “Apple Glasses” would complement its iPhone, Apple Watch, AirPods, and other devices to lock users into its ever-expanding ecosystem. It would also further reduce Apple’s dependence on the iPhone, and possibly pave the way for the launch of its “Apple Car” several years later.

It’s impossible to tell exactly where Apple’s stock will be trading by the end of 2025, but I believe it will outperform the S&P 500 by a significant margin… Its stock still trades at less than 30 times forward earnings. The stock could still go through some wild swings, but investors who simply hold Apple — instead of trading it — could be well-rewarded over the next five years.

MacDailyNews Take: Of course, nobody has a crystal ball, but, even after nice gains, Apple remains woefully undervalued. Most Apple investors would do well to follow to Jim Cramer’s past advice on AAPL, “Own it, don’t trade it.”

As for Apple hitting hit $3 trillion market value by mid-2022, it’s totally doable.MacDailyNews, January 13, 2021

Trillion, schmillion. Over time, Apple will go much higher than that. The company is currently horribly undervalued. — MacDailyNews, March 1, 2018

8 Comments

  1. It will outperform but have some wild swings.

    Look ma, I’m an analyst now. All I needed to do was look at what happened in the past and predict something similar for the future.

  2. from what little i know, it seems as though steve jobs had peered into the distant future to create a 3D map of sorts based on a vision of technology yet to be and mrcook has for the most part been faithful to his vision. I really do think that mrcook has always had a desire to honor his predecessor.

    on a personal note, i think aapl will find even more momentum just as soon as America's political left can rid the national landscape of these pesky, free-speech conservatives who are always annoying the world with concepts like transparency, common-sense, logic and fairness. in fact, all those trees inside aapl headquarters could surely, by now, bear an extra 200pounds or so. mind you, i'm not saying anything and neither is maxine creating a crowd, we're just talking so many aapl values, so many pesky conservatives, so little time. mind you, i'm not saying anything.

    of course, i admire this extraordinary company started in a garage.

    1. What IBM was for the Nazi concentration camps Apple will be for the new Gulag. Don’t worry it will just be digital (to start) and only repress those pesky right-wingers… for now.

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