Apple now has an humungous installed base of over 1.8 billion active devices around the globe. Plus, users are increasingly spending more on Apple’s services — a boon to the company’s overall performance.
John Ballard for The Motley Fool:
The recent stock market rally has sent Apple stock surging, but it’s still down 6% year-to-date. Even at a forward price-to-earnings ratio of 27, which is a premium to the average stock’s multiple of 21, Apple is still a top stock to consider for three important reasons.
1. Its gigantic installed base keeps growing. Through the fiscal third quarter ended June 25… Apple reported that nearly half of the people that bought a new Mac were new to the product… The iPad installed base reached a new all-time high, with over half of those purchasing an iPad last quarter being new to the product, while over two-thirds of those purchasing an Apple Watch were new customers. Perhaps the most telling sign of Apple’s brand strength is its growing adoption in the enterprise space, where companies are increasingly using Apple products as a strategy to win new talent.
2. New services. Apple’s main advantage is that it has an installed base of over 1.8 billion active devices.
3. Sticky customer experience. On the last earnings call, Apple reported that paid subscriptions are now over 860 million, up from 480 million across the services platform over two years ago.
MacDailyNews Take: As always, Apple remains laughably undervalued with the average price target among 44 analysts sitting at $182.51, itself ridiculously low.
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