Apple Inc. (NASDAQ: AAPL) is consistently one of the best growth stocks on the market, and for a long time it has held the position as the largest stock by market capitalization. With the rise of Amazon.com (NASDAQ: AMZN) and massive investor interest over the last year, many believed that the online retail giant would overtake Apple.
On Thursday it became clear that this wouldn’t be the case, at least not yet, as Apple became the first company in history to break the $1 Trillion total market capitalization ceiling.
Huge Surge in Investor Confidence Following Earnings Call and Projection
Apple has been one of the strongest and most profitable stocks for a long time, and it’s often recommended for investment portfolios. When considering some of the most popular investment packages and ETFs, Apple stock is usually a major component.
Investor confidence surged this week when Apple released their quarterly performance figures. Despite the current iPhone being near the end of it’s generation cycle, the company still managed to generate $53.3B in revenue during the last quarter. With a new iPhone expected to release before the end of the year, Apple has projected earnings of over $60B for the next quarter.
With continued strong financial performance, and steady demand and hype around Apple products, investors have seen the stock as a winner. Stock price closed at over $207 after Thursday trading, indicating that demand is still strong even days after the initial rush following Apple’s earnings call.
An Interesting Prospect for New Investors
Price increases this week have some analysts giving Apple an OVER rating. However, around 65% of the top analysts still consider the stock to be a BUY.
The fear is that investors who buy today will lose out in the coming week, as shares are likely to stabilize and possibly decline slightly. However, that’s only really an issue for the short traders. If you are a traditional investor, looking for growth and stability, then buying Apple now will mean a lower price than what you’ll see in the coming months or years.
Apple stock has continuously grown since the company went public, with any share price dips being quickly recovered. Long term investors are on top. Apple hit $100B market cap in 2007, by 2012 it was $600B, and at the end of 2017 it was well over $900B.
If you lack AAPL as a component in your portfolio, then buying now could shield you from the higher prices that history suggests will come.
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