Apple Stock Price Prediction For 2021 And Beyond
Apple Stock Price Prediction Forecast: How Much Will AAPL Be Worth In 2021 And Beyond?
Will AAPL go up or crash? Read our Apple stock Price Prediction 2021 – 2025
On the hunt for AAPL prediction 2021 - 2025? Or have you been struggling to answer the question ‘is Apple a good investment?’ Read on. Find out the top Apple stock Price prediction forecast for 2021 and beyond.
The world’s largest technology company, Apple (AAPL) has been a household name ever since the 1980s. Today, it’s the business behind some of the biggest products on the market. From the iPhone and iPad to the world’s original smartwatch, it’s no surprise that Apple became the first company to be worth $1 trillion. But is there a way for you to cash in on its success?
If you’re looking for a slice of the Apple pie, you might be wondering ‘should I invest in Apple right now?’. According to CNBC, people who invested just $1,000 in the technology company 10 years ago would have stocks worth more than $7,200 today. Clearly, the best time to invest in Apple was at the beginning of its journey — so you need to decide whether the second-best time is now.
To find out the answers, keep reading. We’ve put together a guide to the short and long-term stock price predictions for AAPL. Looking ahead to 2021-2025, what do financial analysts expect to happen to the price of Apple in the coming years?
Short-Term AAPL Price Predictions for 2021: What do the analysts say?
AAPL price prediction for 2021
What are stock experts forecasting for Apple stock in 2021?
For prospective investors, AAPL can be an intimidating buy. The size of the company means it would need a serious breakout in order for significant profits to trickle down to its investor network. However, the good news is that many analysts believe this could actually happen. After a record-breaking Q4 in 2020, Apple could be set to scale new heights in 2021. Let’s take a closer look at some of these predictions.
At the time of writing, the APPL stock price is $117.13 — still a little short of its all-time high (ATH) of $137.98. According to analysts surveyed by CNN Money, the median price target for Apple in one year’s time is $133. This would represent a growth rate of almost 15% from its closing price of $115.98 in 2019.
As we can see in the price chart above, the maximum Apple stock price prediction reported by CNN Money is $150. This would be a growth rate of 29.3%, smashing its previous ATH. Although the potential low is much more bearish (it clocks in at just $74.10), the CNN analysts agree that the AAPL stock is a strong buy — and they’re not alone.
The team at WalletInvestor also believes the stock price of Apple will increase across 2021. Its predictions place its value at around $120 in January, with this figure rising steadily throughout the rest of the year.
Walletinvestor is also bullish about the Apple share price forecast in 2021. It gives a $138 average price target by the end of 2021.
Unlike CNN Money, however, there’s very little disparity between the minimum and maximum forecasts given by WalletInvestor. In December 2021, for example, the platform predicts we could see lows of $144.45 and highs of $145.679.
This bullish trend will take AAPL to a new ATH. Even WalletInvestor’s most conservative predictions are still incredibly optimistic, which should be good news to anyone wondering ‘is Apple a buy right now?’. According to their in-house algorithm, 2021 could signal the breakout needed to provide potential returns to stock investors.
Our final short-term Apple stock price prediction comes from the investment bank Goldman Sachs. In contrast to the sky-high forecasts from CNN Money and WalletInvestor, Goldman Sachs has a much more bearish prediction — and has ultimately given a sell rating for the stock.
Citing the delayed release of the Apple iPhone 12 range, which was released earlier this year, the Goldman Sachs analyst Rod Hall believes the stock could be heading for a fall. In fact, he has said that 2021 will see the stock price decline by 36%, a slump that would leave its value at between $80 and $75.
Many other analysts believe that the iPhone 12 — which is the UK’s first 5G smartphone — will send the stock price soaring. But according to Hall, “Apple’s commentary points toward the weaker 5G iPhone cycle we have been forecasting rather than the ‘Super Cycle’ expected by consensus.”
37 analysts offering 12-month price forecasts for Apple stock have a median target of 135.00, with a high estimate of 160.00 and a low estimate of 74.10.
Walletinvestor is very positive about the Apple stock price forecast in 2021. It estimates a $141 median price target for the next 12 months.
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Long-Term Apple stock Price Predictions: 2022-2025
What are stock experts forecasting for Apple stock price in 2022 and beyond?
With the exception of Goldman Sachs, the short-term price predictions for AAPL are relatively bullish. To find out whether this growth is sustainable, let’s look ahead to the long-term price predictions for 2022-2025.
From WalletInvestor, the long-term advice is clearly to buy. Its website states that people who invest $100 in the AAPL stock today could gain an extra $89.03 by 2025, with its detailed price prediction breakdown below:
These columns show the opening, closing, minimum, and maximum prices for each month of 2025. Strikingly, there is very little difference between each of the columns, with most of the price changes a mere matter of pips. (Price movements are measured in pips, an acronym that stands for ‘percentage in point’ or ‘price interest point’. A pip is used to represent negligible changes in value and is generally thought of as the fourth decimal place in a number, such as $0.0001).
According to these predictions, we could expect to see Apple stock to hit a yearly high of $239.695 by the end of 2025. December is the only month in which the growth rate is negative, following on from 11 months of modest growth. While this could hardly be called a breakout year, it could be possible to cash in on these steady gains if you time your trades right (or, more likely, buy to hold a long-term position).
According to its Apple stock outlook, the stock's price will rise to $233 during a five-year period, considering Apple stock a good long term investment.
So how do the other long-term predictions compare? Another long-term forecast comes from the platform AI Pickup. This is a far more bullish prediction that believes that Apple stock could hit the $200 mark much sooner than 2025.
In fact, AI Pickup thinks the Apple stock price will be $202.07 in 2021, rising to $287.47 by the end of 2022, $290.83 by the end of 2023, $332.67 by the end of 2024, and an impressive $362.24 by the end of 2025.
As we can see from the graph, AI Pickup predicts that a major breakout period will occur in September 2025. In this month, it believes AAPL could hit a value of $400.424968654795 — a figure more than three times its current price.
Our final long-term price prediction comes from AllForecast.com.
It expects that Apple stock price to hover around $150 for the duration of 2023.
According to AllForecast’s predictions, we’re likely to see very low levels of volatility in two years’ time. The monthly percentage changes are relatively consistent — although four months will see the stock price drop slightly, the overall trend is modestly bullish. It’s unlikely to pave the way for the heights predicted for 2025 by AI Pickup, but it’s still a significant increase from its current price of $117.03.
How Has The Stock Price Of Apple Changed Over Time?
If you’re wondering ‘is now a good time to invest in Apple?’, it’s important to look back as well as forwards. The price predictions for 2021-2025 can give us a good idea of where the AAPL stock price is heading, but by analyzing how the stock price has changed over time, we can see what factors have affected it in the past.
Apple first came to the market in 1976, when it was founded by businessmen Steve Jobs, Steve Wozniak, and Ronald Wayne. (Wayne left the company just 12 days later, selling his share back to his co-founders for just $800). Originally called Apple Computer Company, it was incorporated in 1977. However, it wasn’t until the 1980s that Apple found success with the launch of the now-iconic Macintosh.
We can see how the stock price of Apple has changed since then in this graph from MacroTrends:
Until 2005, Apple’s stock price remained fairly static, barely exceeding $3. Its first milestone came in 2012 when it briefly rose above $20 for the first time. However, the majority of its growth has occurred in the last couple of years, from 2018 onwards. After dipping below $40 again in 2019, AAPL has skyrocketed in 2020, outstripping its previous ATH to hit $134.18 on September 1st.
This growth rate has been hugely reassuring to investors who worried about the effects of the so-called coronavirus crash. As the world responded with uncertainty to the outbreak of COVID-19, the stock market saw one of its biggest crashes to date. The crash began on March 9th, 2020, when the Dow fell by 7.79% (2,013.76 points) in just one day. At the time, this was a record — but on March 12th and again on March 16th, this record was broken.
So, how did this crash affect the stock price of Apple? Between late February and March 16th, AAPL fell from $80.4042 to $61.6733, mirroring the trend of almost every major business on the market. The fact that its subsequent price performance has been so positive — setting and smashing new ATHs — has contributed to even greater investor confidence.
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What Factors Affect The Stock Price Of Apple?
Apple’s growth this year hasn’t been a mere fluke. There are many different factors that can cause the Apple stock price to rise or fall. If you’re wondering ‘is now a good time to invest in Apple?’, we recommend taking some time to understand what these factors are in order to raise your chances of correctly predicting breakout moments in the future.
Below, you’ll find the top three factors that affect the stock price of Apple.
The Popularity Of The iPhone
Apple may have found fame as a result of its Macintosh computer, but these days, it’s the iPhone that is the company’s principal money-maker. More than 2.2 billion iPhones have been sold around the world, and the number of iPhone sales is a key factor that determines whether Apple’s stock price will go up and down.
The world’s first iPhone was released in 2007. As we can see in the price chart above, this signalled one of Apple’s first bullish runs — and this trend has continued ever since. The stock price tends to increase after the announcement and release of each new iPhone model. In fact, this is such an influential factor that the delay of the iPhone 12 caused Goldman Sachs analyst Rod Hall to give the stock a sell rating.
As iPhones start to become more accessible to people in emerging markets, it’s expected that this could cause a further increase in the AAPL stock price.
Back in 2019, 18% of Apple’s revenue came from Apple services as opposed to products. Apple CEO Tim Cook has previously claimed that services will be a new foundation for the company moving forward. These include iTunes, iCloud, Apple Pay, the App Store, and Apple Music.
However, these services aren’t always plain sailing. In 2019, Spotify announced that it was suing Apple because of the so-called ‘Apple tax’ (30%) that it charges media companies for purchases made through Apple’s payment system.
The US-China Trade War
America’s trade war with China has had a notable effect on the stock market, with AAPL particularly affected. Because Apple assembles its iPhones in China (and sells a lot in the country too), it would be hit hard by any tariffs introduced on Chinese exports.
Back in May 2019, Donald Trump’s announcement that he was planning to raise tariffs was matched by China, which announced that it would be raising tariffs on some US goods. Katy Huberty, an analyst from Morgan Stanley, suggested that a tariff of 25% on the iPhone could cause the price of each phone to increase by around $160. The company’s alternative would be to eat the tax - a decision that would cost them a 23% decrease in earnings.
After the announcements were made, Apple’s stock price dropped by a staggering 6% in a single day.
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- People who invested just $1,000 in the technology company 10 years ago would have stocks worth more than $7,200 today
- According to analysts surveyed by CNN Money, the median price target for Apple in one year’s time is $133. This would represent a growth rate of almost 15% from its closing price of $115.98 in 2019
- In December 2021, WalletInvestor predicts we could see lows of $144.45 and highs of $145.679
- Rhod Hall from Goldman Sachs believes that 2021 will see the stock price decline by 36%, a slump that would leave its value at between $80 and $75
- WalletInvestor believes people who invest $100 in the AAPL stock today could gain an extra $89.03 by 2025
- We could expect to see AAPL hit a yearly high of $239.695 by the end of 2025
- AI Pickup believes the stock could be worth $362.243198628616 by the end of 2025
- AllForecast.com expects the Apple stock price to hover around $150 for the duration of 2023
- Between late February and March 16th, AAPL fell from $80.4042 to $61.6733 as a result of the coronavirus crash
- Other factors that have affected the stock price of Apple are the demand for iPhones, its Apple services, and the US-China trade war threatened by Donald Trump
If you’ve been looking for Apple stock price prediction in 2021 and beyond, we hope you’ve found this article helpful. Whether you’re an existing investor wondering whether to sell or hold, or a prospective investor who’s wondering ‘is now a good time to buy Apple stock?’, the projections for the coming years are encouraging.
The forecasts mentioned here range from moderately to staggeringly bullish — with nobody expecting the stock to seriously lose value from its current position. The consensus among analysts is that AAPL is a stock to buy.
Stock investing is notoriously risky and it’s vital to have a robust risk management strategy in place if you’re considering adding AAPL to your portfolio.
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Is Apple a buy or sell?
Apple has a price-to-earnings ratio of 37, which means you may be paying a premium to invest in a company that’s growing at the rate of Apple. According to analysts, investors should expect Apple’s earnings per share to compound at an average rate of roughly 13% per year for the next five years. This is a respectable potential that has left many analysts recommending to buy, though perhaps in moderation.
Is Apple stock expected to rise?
Yes, the majority of predictions expect the stock price of Apple to rise above its current value of $117.13. Many also expect it to rise above its ATH of $137.98.
What is the target price for Apple stock?
The highest predictions in this article place Apple stock at a target price of $362.243198628616 by the end of 2025 (AI Pickup).
Is Apple a good long-term stock?
AAPL is definitely a stock to buy and hold, rather than one to trade in an attempt to cash in on quick wins. The long-term prospects of Apple are strong, with new product releases regularly on the horizon. This means investors should hold rather than risk the despair of selling too soon.