Should I buy Apple Stock Now?
The short answer: It is still too early to buy Apple stock.
Apple Inc. is an American multinational technology company that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Four technology companies, alongside Amazon, Google, and Microsoft.
As of May 2020, Apple stock price (NASDAQ: AAPL) has fallen by 13% since the outset of the Covid-19 crisis on February 15th, 2020, currently standing at $284 per share, after partially recovering from a deeper dip to $224 per share in March. During the same time period, the Dow Jones Industrial Average has fallen by 17% overall, meaning Apple has so far outperformed the market since the outset of the covid-19 crisis.
So, is Apple stock a good investment and is now the best time to buy it?
Reasons to be optimistic
1. Apple’s stock price has shown an impressive recovery following its sharp dip with the rest of the market last March. This indicates strong investor confidence in the company’s resilience and the prevailing projections for a post-lockdown recovery.
2. Having enjoyed a 24.22% profit margin and $22B in net income in the last quarter of 2019, Apple is well positioned to weather a temporary market disruption and for a rapid recovery.
3. The upcoming release of the Apple iPhone 5G, expected for September 2020, is likely to boost the company’s gross sales in the last quarter of 2020 and raise its stock price.
Reasons to be pessimistic
1. Disruptions in global supply chains and a significant production slowdown in China, where many of Apple’s production and assembly facilities are based, have already caused shortages in the supply of Apple products in many countries, impacting sales.
2. Expecting a severe recession in the US and most of the developed world in 2020 and beyond, it is highly likely that consumers will tighten their belts and halt all purchase of luxury items. In this case, Apple stands to suffer significant drops in sales, as most of its flagship products will be first in line to be removed from consumers' shopping carts in the coming months.
THE BOTTOM LINE
Our final verdict: whether you’re an optimist or pessimist with respect to Apple in the long run, it is still too early to buy Apple stock at the moment. When the recession kicks into full gear in the coming months, it is very likely that Apple stock price will drop sharply again along with the rest of the market, creating an opportunity to buy shares at a better bargain. It is much advised to prepare early by signing up for a free investment platform to gauge its stock price in the coming weeks and not miss the opportunity.
Our Favorite Online Investment Platforms
1. M1 Finance – https://m1finance.8bxp97.net/QMP4x
2. EToro Partners – https://partners.etoro.com/B13056_A90266_TClick.aspx
3. Ally Invest – https://www.ally.com/invest/
Our Favorite Online Investment Courses for Beginners
2. Skillshare - https://www.skillshare.com/
3. Ameritrade - https://www.tdameritrade.com/education/investment-classes.page
Other Stocks to Consider
1. Facebook stock
2. Uber stock
3. Google stock
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