Are you looking to invest in Apple stock?
If you consider that it’s maintained an exceptional average annual compound gain of 35% since 1999, it’s no surprise many potential investors consider it a good buy.
Here’s what you need to know before you commit, including information on the company’s history, stocks, and interesting facts.
The History of Apple
Apple, listed on NASDAQ with the ticker symbol AAPL, manufactures and sells smartphones, tablets, personal computers, and wearables. It’s known for the iPhone, the Mac computer/laptop, the iPad, and Apple Watch. In recent years, the company has also made a play for digital content streaming with Apple TV+.
Founded in 1976, the consumer tech company has rapidly grown into a behemoth, acquiring smaller tech companies along the way that enable it to diversify the features and offerings of its Apple line of products.
With revenues of $274 billion in 2020, a 5% increase from 2019’s $260 billion — Apple is maturing as a company. However, this isn’t necessarily a bad thing. Experts predict that Apple smartphone shipments will grow by 38% in Q1 2021, making this company the top smartphone vendor despite stiff competition from other smartphone manufacturers such as Samsung Electronics, Xiaomi, and Huawei.
They also face increasing competition from digital content providers such as Netflix and Spotify.
Apple Stock Price History
Most investors want a bite of Apple’s stock. About 64% of Americans own one of its products, so there’s always a guarantee of demand.
Apple went public in 1980, with shares starting at $22 per share. As of August 2020, the stock was trading at $127.58. But that doesn’t tell the whole story. The stock hit highs of $600 per share as of June 2014. To prevent its stock from being priced out of the market, Apple management sanctioned a share dilution at a ratio of 7:1.
This meant that if the market priced the shares at $700 during this time, you would own seven shares for $100 instead of one share for $700. Current stock owners didn’t lose any value in the process, but it made the stock less expensive for potential investors.
After another run that saw AAPL hit $499.23 per share by mid-2020, the company’s board sanctioned a four-for-one stock split. This crashed the stock price to $127.58 when markets opened on August 31st, 2020. This recent split makes the Apple stock even more appealing to investors.
Interesting Facts About Apple Stock
- Apple is the first American company to hit $1 trillion in value.
- While times have changed and Apple isn’t the undiscovered gem it once was, it is still the world’s largest company by market capitalization.
- Consider this — an investor who acquired $1,000 of AAPL in 1999 would have $430,000 today. That sort of return is stellar, and the stock has continued to grow at that pace till now.
The Bottom Line — Buy or Trade AAPL?
Apple consumers continue to show they have no qualms paying a premium for its products, despite economic headwinds. Apple also hasn’t relinquished its grip on products like the smartphone, and it’s making strides in digital content and TV.
The company’s profits are immense, and most fund managers looking to maintain momentum with the stock market own AAPL in their stock portfolio. But what does this mean for you and your investment portfolio?
While the threats to its hold on the consumer tech industry are growing, AAPL stock is a long-term play. Don’t trade in it; buy it and hold for its stability and long-term gains.