Just when you think Apple (NASDAQ: AAPL) might be slowing down, you’re proven wrong by yet another stellar quarterly report. The company is still on fire with boosted sales across all of its product lines and services. And with rumors circulating about an Apple electric vehicle (EV) in the works, investors’ appetites are further whetted for the powerhouse company. For this reason and its insanely strong brand, Apple is the one tech stock I’m investing in right now.
A look at Apple’s financials
On Monday, Apple became the first company to cross the $3 trillion threshold during intraday trading. Analysts feel that it’s just getting started and I’m inclined to agree. The company’s latest quarterly report (Q4 2021) justifies its stock performance as it shows the highest revenue in its 45-year history, up nearly 30%, year-over-year (YoY). Here’s a breakdown of net sales by category:
|Item||Sales||% Increase (YoY)|
|Wearables, Home and Accessories||$8,785||12|
Mostly double-digit gains across the board. Little wonder that the stock is trading ten dollars off its historic high. The company currently offers a dividend of $0.22 per quarter.
What I like about Apple
The company is a marketing virtuoso that has amassed an almost rabidly loyal fan base that doesn’t mind waiting for hours outside of Apple’s many stores when a new product is launched. The company’s most popular product, the iPhone, is owned by one billion people around the globe, representing a 26% market share. That means when Apple chooses to make privacy-related changes to its platform, the seismic effects are felt all throughout the advertising ecosphere.
It also means that with Apple’s ecosystem, a majority of those owners (over 620 million) are using its services-a steady, predictable revenue stream. Every product I’ve owned from Apple has been a sleek, easily-integrated, durable winner that I would gladly repurchase in the unlikely event of breakage. It is almost guaranteed that the Apple Car will be a winner like the iPhone, iPad, MacBook, and AirPods.
Risks to Apple’s share price
Analysts worry that Apple is reaching its growth limits and might be a one-trick pony. How many more iPhones can it launch? Does it have the next iPhone up its sleeve? Furthermore, already under the watchful eye of U.S. antitrust regulators, any significant acquisitions would be out of the question. And let’s not forget the microchip shortage and supply chain issues which will no doubt have an impact on Apple’s sales.
Apple’s growth potential
Looking forward, aside from augmented reality (AR) for its massive ecosystem, the company’s services subscribers are growing (27%, YoY). But it’s the Apple Car that has investors excited as it has the potential to be the company’s biggest moneymaker since the iPhone.
Contributing Writer at MyWallSt
David fell in love with the stock market in 2000 after making $30,000 overnight on Techniclone. His favorite stocks today are Netflix, Google, Amazon, and Apple as they are the market leaders in their sectors and are safe long-term investments.