Is It A Good Decision to Buy Apple Stock

Are you planning to buy Apple stock? You need to know the right time and real statistics. So here we are to guide you.
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January 24, 2021

Is It A Good Decision to Buy Apple Stock Right Now?

Apple has proven itself a success story in many fields from the computer revolution to the stock market and trade stocks this company has made history. If you are interested in buying Apple shares, this article is a comprehensive guide to understand how you can invest in apple stocks and become one of its shareholders.




A glance at Apple Inc:

Apple Inc is an American based Technology Company. Its headquarter is in California. 1996, three partners named as Steve Jobs, Steve Wozniak and Ronald Wayne co-founded a company Apple Computer Company. After 12 days of Apple computer company foundation, Wayne sold his shares to Jobs and Wozniak for $800. And in 1977, Apple Inc was incorporated by jobs and Wozniak. Apple Inc is one of the biggest five technology companies in the US.  The other four are Microsoft, Google, Amazon and Facebook.

Apple has earned many stars on its shoulder, such as its most valuable technology company. By revenue, Apple is the world’s largest technology company. For the year 2020, its worldwide revenue was $274.5 billion. Apple is also ranked as the world’s most valuable brand, and it has a high level of customer loyalty. Apple deals in various products like in hardware. Its most famous products are iPhone, iPad tablets, iPod media player, Apple smartwatches, Apple Mac computer and laptops, Apple wireless earpods and Apple TV. In software, its popular products are iOS, iPadOS, iWatchOS, iLive and iwork etc. apple also offer online services like iOS Apple store, iCloud and iMessage etc.

Apple IPO:

Apple becomes public on 12th December 1980, with initial public offering $22 per share. Apple generated more than $100 million from its IPO, and it is the second-highest capital than any IPO ever generated. The first highest capital generated from IPO was by Ford Motor Company in 1956. At the end of the first day of Apple trading, the share price rose to $29.  Apple ticker is AAPL and is listed on NASDAQ, DJIA component, S&P 100 component and S&P 500 component. In 2018, Apple became first publicly traded US Company whose value is $1 trillion, and in 2020 its value raised to $2 trillion.

Do Your Research Before Buying Apple Stocks:

Before investing in Apple’s shares, the best strategy is to do your homework. A good investor is one who does his research before investing in any company. It would help if you researched its net income, revenue generation, earnings, how the company does its management, who its competitors are, and how it deals with its competitors.

Another step should be to analyze your investment portfolio and check how Apple stocks fit your portfolio. Here we will quote good investors’ quality: the right investors do not put all the eggs in one basket.  It means that the right investors keep their portfolio diversified and do not invest all their money in single stocks, considering it as risking your money if the company did not perform well. As an investor, you should have a diversified portfolio and invest in different companies from different industries.

Apple’s Stock Split:

Before buying Apple shares, you need to understand Apple’s 4-1 stock split. Apple did this stock split because its shares were flying high, and not everyone could afford them. So in August 2020, Apple split its stock into 4. When the market closed on 28th August 2020, the value of per Apple share was $499.23, and when the market opened on 31st August, its value per share was $127.58. It means anyone who owned 1 apple share before split now owned 4 shares of Apple.

Are Apple Stocks a Good Buy or not?

It’s a critical question that every investor should consider before risking their money. The easiest way to find out any company’s valuation is finding its price-to-earnings Ratio (P/E Ratio).

The P/E Ratio of Apple shares on the S&P 500 component is between 13 and 15. Usually, the technology companies have higher P/E Ratio because of the higher growth expectancies in the future. In 2020 the analyst also recommended Apple shares as a strong buy.

How to Buy Apple Shares?

If you are a DIY person, you can buy Apple shares directly through telephone, post or online. But if you need a financial advisor and want someone who understands all the share market terms and does the speculations, then a broker or a brokerage firm is there for you. To buy Apple shares through a brokerage firm, you have to follow the following steps:

  1. Find your online broker that fits your portfolio and budget.
  2. Open brokerage account.
  3. Deposit the money into your account.
  4. Buy Apple shares.

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