Apple is one of the largest corporations in the world, boasting a monster market cap of $2.7 trillion. It may be difficult to believe that the California-based company still has significant room to grow, but it does. Below read 3 reasons to buy Apple stock in 2022 – and hold for the long term.
Prosper Junior Bakiny for The Motley Fool:
1. iPhone sales are still going strong: During Apple’s fourth quarter of its fiscal year 2021, which ended on Sept. 25, 2021, Apple generated $38.9 billion in sales from its iPhone segment, representing a 47% jump compared to the year-ago period.
2. Apple’s booming services segment: Apple’s services revenue came in at $68.4 billion for the year, growing 27.3% compared to the fiscal year 2020. One major perk of this unit is that it boasts juicier margins than the rest of Apple’s business. In its fiscal year 2021, the company’s gross margin was 41.8%. Apple’s product gross margin came in at 35.3%, compared to 69.7% for its services unit.
3. Brand names matter: At this point, the company could sell almost anything at a premium by merely branding it with its prized logo. That’s something that will help maintain the company’s lead over its peers while it keeps delivering solid returns for its shareholders.
MacDailyNews Take: HomePod would beg to differ, but, hey, nobody bats 1.000.
We do, of course, recommend selling before you die, preferably while in good health, so you can enjoy the spoils!
Bottom line: Apple stock is a buy, even more so at the current deep discount. Apple has much headroom to grow into, especially in services and – ahem! – new products in new markets (AR/VR headset, AR smartglasees, EVs, etc.).
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!
Shop The Apple Store at Amazon.
“Never” is a very long time? I don’t want to die with my AAPL shares 😉
If I hadn’t missed the boat I’d have left them to my kids.
The list misses several critical factors: singularly huge R&D, godlike cash/income and the most important, vertical integration. There has never been a company this in control of their product , UI and ecosystem. Off the shelf is the way it’s done but Apple is far from that, OS and SOC across the board, and it is headed even further – working on modems and displays. It’s a mountain of cost to get there but getting there gives you cost control and design freedom that is unparalleled.
Correct something from the story where it stupidly says Apple can put its logo on anything. No it can’t. Apple has had a few misses too. They specifically don’t foray into many areas, instead focusing on a handful of products. They have to do it right or this biz plan would suffer.
warren buffet’s point is also valid – apple has the most “valuable real estate” in the world, as he put it: the millions of people who are devoted apple customers with disposable income.
Never sell your Apple shares unless you want to or need to. Don’t be forced to sell based on market panic and fear like many of the idiots are doing over the past couple of weeks. Apple is still selling plenty of products and making plenty of money yet people are dumping Apple shares right before earnings. Buying high and selling low doesn’t make much sense to me unless those people were buying on margins. If Apple does really well on earnings, those same people will likely buy back in.
Well said. And buying low and selling high is a slogan for trading sites to sell you their “guaranteed” money maker. It’s not a real strategy. If it was that easy then everyone would make money, easy.
One will never know what is high or low. Only a couple of handfuls of months ago anything above 135 for Apple was high. Anyone waiting for the low missed out on 15% to 25% jump. Don’t believe me on it, believe the very best in the history of the market from Rothschild to Livermore to Buffett. Trying to guess tops and bottoms is a very low chance strategy for success.
A company like Apple (or Microsoft and some others) are for investing. Buy and hold. Higher risk equities, penny stocks, high valuation low tier mid caps, are buy-grab profit if you get it-get out game. If you want to buy and hold for these be VERy aware you are playing high risk with your hard earned money (for every Amazon there are much more companies that went belly up).
My story really quick:
I am 49. I bought AAPL when I was 23. Didn’t have a lot of $$ at the time, but now my AAPL shares are now keeping me going.
I quit my job in August – I just came out with my first Children’s book.
I couldn’t have done the above without being an AAPL shareholder. Yes, I am selling them, in small chunks, but like was posted above, I would like to spend some of it while I am alive.
If anyone is interested in seeing my children’s book, I’d be honored:
I’m 60. If I hadn’t been talked into selling portions of my holdings over the last few decades, I probably could have retired with my Apple holdings. It’s ok. I was never any good at golf anyway.
62 here, invested $200K total in 401K and rolled over into IRA, now sitting on 26K shares even tho i have been living off the fat! Retired five years ago spending $150K+/year from selling AAPL
I outlearned my father who was a doctor, I will not die near zero!!!
first purchase, 3K shares in april of 2005 last purchase sometime in 2012, will buy more if money comes in!!!