Apple’s stable earnings, prolific cash flow, and brand dominance make it compelling — the company has returned nearly $1 trillion to shareholders since 2012, its high-margin services business keeps growing, and Apple’s valuation is compelling. The Motley Fool’s Josh Cable writes that these are three reasons to buy Apple stock like there’s no tomorrow.
Josh Cable for The Motley Fool:
While Apple stock may have temporarily lost some of its shine, Apple the company is still printing money — and sitting on a mountain of cash. That’s the first reason to buy Apple like there’s no tomorrow.
In its fiscal 2025 second quarter, which ended March 29, Apple reported $95.4 billion in revenue, up 5% from the year-ago period. Diluted earnings per share (EPS) increased 8% to $1.65, a record high for Apple’s January through March quarter…
And rewarding shareholders is where Apple really shines. Since fiscal 2012, Apple has returned nearly $1 trillion to shareholders through stock buybacks and dividends — likely more than any company in history. In Q2 2025, Apple’s board rubber-stamped another $100 billion in stock buybacks.
The second reason to pile into Apple stock is its services business, which includes Apple Pay, Apple TV+, iCloud, and Apple Fitness+. In Q2, revenue from services jumped 12% to $26.6 billion, a record high for the company. While that was less than half the revenue from iPhone sales, services is Apple’s most profitable segment, with a gross margin of nearly 76% in the second quarter — double the gross margin for hardware.
The third reason to buy Apple stock is its valuation, which stacks up favorably against other members of the Magnificent Seven. On a forward basis, Apple is trading at a price-to-earnings (P/E) ratio of 29.7, which is lower than that of Nvidia, Tesla, Microsoft, and Amazon…
MacDailyNews Take: Currently, the average price target on Apple stock is $228.60, which we consider low, yet its still a nice jump from the current price.
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Another reason–perhaps a main reason to load up on AAPL is, the govt is going to infuse s-loads of $$ into the market this yr. The why; a s-load of treasuries come due in ’25 and the buyer pool is shrinking, which means the Treasury will be the buyer.
Just like ’21-22, when Joe B juiced the market with $$…which resulted in the stock market (real estate and other assets) to rise, or inflate actually. Govt liquidity always juices the dollar denominated assets and this time = no different. Too bad the reason for gains isn’t entirely related to AAPL being a good investment, but….