Considered to be one of the safest investment options in the technology sector, Apple has captured the public’s imagination with its sleek and innovative range of products. Going by market capitalization, Apple is simply one of the world’s largest companies; it has a staggering market cap of $690.99 billion. And with nearly $178 billion in offshore reserves, Apple is also one of the wealthiest companies in the world.
By 2012, Apple stock had already reached a premium price of $100 per share. However, by early 2013, stock prices had fallen to almost $55.79, reflecting bitter investor sentiment during that period. However, in the following years, Apple stock performed considerably well, fetching a year-to-date return of 7.47% in 2014. By October 2014, the stock prices had once again hit the $100 mark, testimony to their resurgence.
The Future Looks Bright
In the present market, Apple stock prices are fluctuating at around $118, and many have set optimistic price targets for FY 2014. Jim Suva, an equity analyst at Citigroup and a market expert, has increased his price target for Apple from $120 to $135, causing many others to do the same. Apple reported a record-breaking $74.6 billion in sales for the last quarter of 2014, possibly due to the release of the much-anticipated iPhone 6. Considered to be one of the best quarters for a publicly listed company, Apple stock rose nearly 5% a single day after the announcement, reflecting investor confidence.
Known for groundbreaking innovation, this tech company is sitting on a large cash-pile that it, unfortunately, cannot make use of anytime in the near future. This is simply because any money that it brings back home could be taxed up to a hefty 35%, which is not exactly the best way to spend money for a multibillion-dollar organization. In fact, this problem even caused Apple to sell $6.5 billion in bonds to raise funds. For the moment being, this tiny hiccup can prove to be a source of irritation for Apple.
Buy Or Sell?
Many market analysts have given compelling buy ratings for Apple stock in 2015, and Apple stock definitely seems to be on the wishlists of prospective tech investors. In 2014, Apple also outperformed Google on the stock market, which produced stock returns of -5.2% for the same time period. However, those looking to get rid of Apple stock, for whatever reason, will find that now may actually be a good time to do so. Apple stock has never been valued higher that it is at the moment, and some optimists also predict that it may cross the $200 mark within a few years.
As Apple gears itself up to release new products in 2015, investors are looking towards making a fat killing. Analysts estimate that the company will generate nearly 21% more in revenues from its iPhone sales in Q1 2015 as compared to Q1 2014.
In summary, Apple stock is definitely worth considering in FY 2015, especially for investors looking for a safe, long-term bet.