Reading: How to Buy Apple Stock
Apple ’ s appeal to investors makes sense given its popularity with consumers. The iPhone debuted in 2007 and there are now more than 1 billion active iPhones around the universe. As the Cupertino, California-based technical school giant has rolled out one raw appliance after another — including the ipod, iPhone, iPad, Airpods, Apple Watch, and MacBook — it has besides dominated the lineage commercialize. Apple breed has delivered total returns ( assuming dividends are reinvested ) of closely 7,000 % in the by 15 years, the fourth-best performer in the S & P 500 Index during that time .
Since launching its initial public offer ( IPO ) in 1980 at $ 22 a share, Apple has completed five stock splits, most recently in 2020. These splits help keep Apple ’ s stock price within compass for many investors. hush, the decision to buy Apple shares could take a bite out of your investment budget, sol here ’ s how to evaluate if the stock deserves to hang around your portfolio .
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Apple stock (AAPL) fundamentals
For millions of Americans, at least one Apple intersection is integral for getting through the day. On Wall Street, Apple does a lot of the heavy lift in the broader stock market. The company is the largest component of the S & P 500 Index, meaning that its performance has a bigger effect on the index ’ sulfur daily moves than more than 100 of the index ’ s smallest members, combined .
Apple besides is a member of the smaller and more single Dow Jones Industrial Average, which it joined in 2015, and the technical school fleshy Nasdaq 100 index. The stock is listed on the Nasdaq stock exchange under the watch AAPL, and is grouped in the data technology sector alongside the likes of Microsoft, Nvidia, and Visa .
To evaluate Apple as an investing opportunity, it ’ mho important to understand the company ’ second financials. You can easily access earnings reports through Apple ’ s web site, and in documents the company files with the U.S. Securities and Exchange Commission ( SEC ). You ’ ll be able to review Apple ’ sulfur business, including information about its source of tax income and profit .
finally, you ’ ll need to understand how Apple ’ s stock certificate trades. It ’ randomness among the most active on Wall Street, with millions of shares trading each day, and is slightly more volatile than the grocery store as a whole. You can besides find key information about the stock on a variety show of fiscal websites, including its historical performance, dividend, evaluation, and price-to-earnings proportion. You should besides review newsworthiness about the ship’s company, its competitors, and review reports written by Wall Street analysts that detail Apple ’ south business and industry trends that will affect the lineage price .
Apple’s latest financial results
Because Apple pulls so much weight in the U.S. sprout market, it can be one of the best stocks to track, even for non-investors. And Wall Street surely keeps close tabs on the technical school giant ’ sulfur every move. In the caller ’ s fourth quarter, Apple reported a record $ 83.4 billion in gross, a 29 % increase from a class ago. The ship’s company delivered earnings per share of $ 1.24, up from $ 0.73 in the same quarter in 2020 .
During the quarter, net sales of Mac and iPad products, wearables ( including Airpods and the Apple Watch ), home items ( like the Apple television and HomePod ) and accessories all surpass net income sales from the like quarter in 2020. iPhone sales were up 47 % year-over-year .
even so, the earnings were lower than expected. Apple shares slumped immediately after the caller reported quarterly results. CEO Tim Cook said provision chain constraints cost the company $ 6 billion in sales this quarter. The impact will be even worse the following quarter, but the company silent expects year-over-year gross growth, he added .
How Apple stock fits into your portfolio
Apple occupies a rare trifecta : It ’ s a extremity of the three basal benchmarks for large-capitalization U.S. stocks : the S & P 500, the Dow Jones average, and the Nasdaq 100. As a resultant role, you credibly are invested in Apple if you own any index funds that track these indexes. furthermore, Apple is among the top 15 holdings in more than 230 different exchange-traded funds ( ETFs ) .
If you ’ re contemplating whether to buy Apple stock, it ’ mho important to inaugural consider your portfolio ’ s existing exposure to this one breed. If you add more Apple to your portfolio, you could be at-risk if Apple ’ s performance stumbles, as it has in the by. What ’ s more, you may miss out on diversification benefits of investing in a variety show of other stocks. Before making any major changes to your portfolio — be it Apple-related or otherwise — you may want to seek out investment advice from a fiscal adviser .
last, be mindful that the breed ’ s past performance may not repeat. For exercise, in three of the seven years from 2014 through 2020, Apple ’ s returns lagged behind the S & P 500 ’ mho — and it ’ s lagging behind the index once again this year. What ’ s more, Apple ’ s sprout has experienced some steep slumps, including bear markets of declines in excess of 20 % .
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How to buy Apple stock in a brokerage account
Some traditionalist Apple fans won ’ deoxythymidine monophosphate be appeased with investing in Apple by buying a common investment company or ETF. If that ’ s you, the good news is that it ’ s very slowly to buy Apple broth, provided you have an history set up with an on-line brokerage firm. The two main ways you can buy Apple shares is by placing a market order, which will be executed american samoa soon as potential at the stream market price, or a terminus ad quem arrange, which lets you specify the maximal price you are willing to pay .
Deciding how many Apple shares to buy is probably to be a bigger decision. Since its latest split in 2020, the stock has been trading in the roll of about $ 100 to $ 150 a share. If you have a smaller budget, you may be able to buy fractional shares through your on-line broker. Because Apple pays a dividend, you can increase your allotment over time by reinvesting those dividends .
While Apple is intelligibly attractive given the company ’ south popularity, consider your motivation for buying the stock. After all, you may already benefit from Apple ’ mho operation via index funds without realizing it. And because individual stocks can be volatile, you should limit your exposure to avoid the risks of having all ( or most ) of your eggs in one basket .
If you ’ re relatively newly to investing, stress alternatively on building a well-diversified portfolio that includes stocks, bonds, funds, and option assets. besides make sure money you want to invest in the market doesn ’ t have a more fruitful purpose, such as padding an emergency fund that could cover at least three months of expenses or paying off high matter to debt ( like credit cards ) .
ultimately, remember that the market ’ s sweetest success stories can sour. Consumers are notoriously fickle, and another company could come along to challenge Apple in the future. Rather than focusing on picking the flashiest stocks at any given time, a prove long-run scheme is to invest in the market itself .
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