Posted on 06 Oct 2020
I want to invest in Apple stock but I'm thinking if there's still room for growth for the company. Do you think the upcoming 5G phones will be a game-changer for them?
Usually, market cap (and therefore the stock price) is strongly linked to business fundamentals so that is what u must analyse
How much Apple stock is able to appreciate from here will depend on how much more products and services they can sell, and what markets can they expand into to fuel growth.
5G phones could drive some strong product sales, but it seems recently Apple has been making strong moves to shift towards services. Its streaming service is something to watch, its promotion of the Apple Watch with the value being a health device, bundles like the recent Apple One which give Apple a subscription fee model, something that will improve margins
Things u must also watch are also Antitrust lawsuits against Apple and the other tech giants, risks in supply chains (i.e. China) and whether the Epic games lawsuit will upend the 30% fee of the App Store
But it seems these days, as big companies only grow bigger, for they are able to outlast any competition, Apple stock may be still worth
Hope I answered yr question and pls DYODD
AAPL is a fundamentally strong company with a wide economical moat. Stock prices continue to rise overtime for many reasons.
Warren Buffett lists 3 important ones
Rise in stock prices attracts more investors
There is no ceiling for market cap. What should be looked at instead is the intrinsic value of the stock of AAPL as compared to the price its selling for in the market.
Also to note, AAPL is the largest allocation in S&P500 and a significant proportion in many ETFs, index funds, mutual funds. Passive investors that regularly invest adds cash flow for the funds to purchase more shares of AAPL, adding to constant volume of buying of the stock.
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