Apple became the first company that breached the $3 trillion market cap, even if it was for a brief moment. However, after reaching this milestone, there was a significant pullback. This shows that while investors are bullish on Apple. Let’s understand if the stock is a buy, hold or sell right now.
A Few Bumps But Apple Can Rebound
Apple has registered a drop, starting the year on a downward trend. However, lower prices could represent an ideal opportunity to invest in Apple.
After breaching the $3 trillion market cap and becoming the first company to do so, the Apple stock has registered a considerable drop, having fallen to $150 on the 14th of March, but has since registered a marginal recovery. Earlier, the Apple stock had been trading at around $175. By March, the stock had dropped to $165, dropping further to its current levels of $155.
Apple had posted its numbers for the quarter ending on 25th of December 2021, posting a record revenue of $123.9 billion, an increase of over 11%. The net income increased by 21% to a record $34 billion. These numbers are even more impressive considering that they were achieved despite prevailing supply chain issues. CEO Tim Cook warned that supply chain problems could put a $6 billion hole in revenue. With impressive numbers in 2021, investors are still bullish on Apple, despite a drop in the stock price. A lower price point in the current market could be an excellent opportunity to invest in AAPL.
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What Next For Apple?
With the tech behemoth having significant potential for even more growth, investors should be queuing up to buy Apple.
Moving ahead, several factors make Apple an ideal investment in 2022.
iPhone Sales To Continue Driving Growth
Apple’s flagship device, along with the Macbook, the iPhone, has firmly established itself as a market leader in the smartphone market, competing with manufacturers like Samsung. Almost a decade and a half later, the iPhone is still generating a significant buzz around every launch event, with sales continuing to look strong. iPhone’s first launch event in 2022 saw the launch of iPhone SE 2022 and the new iPad air. The numbers also show robust growth, with Apple revealing in its fourth quarter of 2021 that iPhone sales alone helped generate $38.9 billion in sales.
Growth Of The Services Segment
Apple has also been focusing on growing its services segment, with services including Apple TV, iCloud, Apple Pay, and more. The services segment of Apple was behind only the iPhone segment in sales during 2021. Looking at the numbers, the company’s services segment generated $68.4 billion for the year, an increase of over 27% compared to the previous year. iPhone sales and the growth of the service sector alone make a convincing argument for making AAPL a good investment.
Apple Car Rumors And More
While iPhone sales and Apple’s services segment showed significant growth, the company also reported an increase in its wearables segment, with sales touching nearly $15 billion in the December quarter. There is also growing speculation about the Apple Car, with reports suggesting that the company has already held discussions with a host of automakers.
Is Apple Stock A Buy, Sell, Or Hold?
Analysts have given the Apple stock an optimistic outlook, with AAPL’s price expected to rise in 2022.
Apple results have been favorable to earnings consensus estimates for the past five years. Thirty-two out of 38 analysts on Yahoo Finance rate AAPL a “buy” or “strong buy,” while 6 have recommended to hold. Overall Apple stock appears to be a good buy and worth considering right now.
Read Also: Apple (AAPL) Stock Price Prediction
A Stock To Keep An Eye On
Key indicators indicate that this is the right time to invest in Apple.
The Apple stock is one to watch in 2022, with several tailwinds making 2022 a favourable year for Apple. The company has grown significantly since its humble beginnings and is set to tighten its stranglehold on the market. So is Apple stock a buy, sell, or hold? Most market indicators in the consensus rating indicate that the stock is a buy, as mentioned earlier. With Apple expanding its horizons, we can expect investors to keep a keen eye on Apple.
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