Macroeconomic headwinds, rampant U.S. inflation, the Chinese Communist Party’s feckless COVID responses, and general malaise in 2022 have led Apple shares to fall 25% since its all-time high. The good news is that the sell-off makes now an excellent time to buy Apple stock.
Despite declines in its stock price, the company remains one of the most reliable long-term investments. Here’s why the sell-off makes now an excellent time to buy Apple stock.
Dani Cook for The Motley Fool:
The iPhone’s consistent growth over several years is worth an investment.
The iPhone accounted for 52% of Apple’s revenue in 2022, with services its second-biggest earner, bringing in 20% of its revenue… In 2022, services revenue grew 14% year over year to $78.1 billion, double the growth of the iPhone. Even better, services hit a 71.7% profit margin compared to products’ 36.3% profit margin.
Services are booming for Apple and provide an excellent opportunity for the company to lean on other sources of revenue in the event of production issues.
Additionally… it’s not far-fetched to say an investment in Apple could be an investment in the future leader of VR and AR.
Despite a 25% stock dip from its all-time high, Apple shares remain a screaming buy. The company has a reliable iPhone business alongside a booming services segment and a lucrative product launch later this year. Apple’s stock is a no-brainer buy, with its decline in price offering a bargain.
MacDailyNews Take: While timing the market is a fool’s errand — Apple hit its 52-week low of $124.17 just 13 days ago on January 3rd – anything under $140, or even $150, seems like a very nice discount for Apple shares.
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MS just announced 10k lay-offs. AMZN announced lay-offs as well. Recession is more than likely later in ’23. China is grappling with a profound real estate hole and many trading partners are looking outside China. The US has materially devalued the currency and debt is climbing notably. Just wait for the car loan defaults that are in place and set to increase.
Yeah, heavy with “The World is Going to End” stuff, but relevant in response to the “AAPL is a screaming” buy exclamation. Apple IS an incredibly capital-heavy-weight and holding shares is like holding a bond–as they used to be–but the here’s little reason to think, AAPL isn’t going lower and Chs Munger’s quote applies well in this situ:
“The big money is not in the buying and the selling, but in the waiting.”
I already spent my extra investment money when it was a “screaming buy” around $137 18 months ago, it was $137 six months ago, now it’s back to $137. I’ll wait, thanks.