Buy Apple Stock or Not? Our future forecast 2022!

Mark Norgate
October 2, 2021
Buy Apple Stock or Not Our future forecast 2021!

Apple products have enjoyed enormous importance since the iPhone at the latest. For many, they are the epitome of high quality and advanced technology.

So it’s no wonder that the California-based company is one of the most valuable in the world. In the past decade, Apple stock was even one of the best performers ever.

So is it still worth buying Apple shares today? We clarify all questions about Apple share in this article.

Table of Contents

Buy Apple Stock – What Should You Look For?

You should pay attention to the following points when buying Apple shares:

  • Why should you invest in Apple stocks? First, apple is one of the most valuable companies globally, and its share price has been rising steadily for years. Second, apple is a large corporation with a market power that is no longer so easily displaced. Third, apple also pays dividends regularly. Finally, apple is a relatively safe investment with good potential for returns.
  • Where can you buy Apple shares? You can buy Apple shares from any online broker. However, we recommend our test winner broker ETFinance. In our opinion, ETFinance is the absolute best stockbroker, as you can buy stocks and ETFs here completely free of charge.
  • What can the future of Apple stocks look like? Stagnation is a problem Apple is struggling with. However, we see the future of Apple as highly positive, as it is one of the most valuable and well-known companies that are constantly developing new products and have had strong balance sheets since going public.

Where to Buy Apple Stock? Best Brokers For Buying Apple Stocks In Comparison:

Rating

Min. Deposit

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4.9/5
250
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4.5/5
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254
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4.9/5
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480
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Buy Apple Stock or Not Our future forecast 2021!

How to buy Apple stocks? Our guide in 3 steps:

1. How much Apple belongs in the portfolio?

However, before buying Apple shares or opening CFD positions, you should consider how much money you should put into the investment. This decision must be in line with your equity strategy.

Overall, it is clear that stocks are more of a speculative asset. For this reason, you shouldn’t buy too many Apple shares in your depot.

In general, when investing in stocks, you should diversify your capital as well as possible. It is advisable to never put more than 10% of the total investment in a single asset – at least not in a share. Depending on how much risk you are willing to take, you can weigh speculative stocks like Apple more or less.

You can minimise the likelihood of suffering heavy losses in this way. Because even if a speculative position should lose significantly, this only affects a maximum of 10% per cent of the total invested.

You should also consider in advance which industries you want to invest in. For example, if you intend to create several economic segments in the depot, weighting them in advance helps minimise the risks.

This percentage distribution of the depot can then be adjusted annually or quarterly so that the overall strategy is retained,

  • The recommended proportion of the share portfolio: 2-4%
  • The recommended proportion of total assets: 0.1-2%

2. Registration with a broker

Once the decision has been made as to how many shares of Apple should be bought, it comes to the search for the right broker. First, of course, it is advisable to compare the offers here.

Because sometimes there can be big differences, for example in terms of fees and customer service. In the last few years, the offers of online brokers have constantly been evolving. Nowadays, it is possible to buy stocks with just a few clicks or even via smartphone order.

We recommend our test winner broker ETFinance, as you can buy shares here completely free of fees!

3. Buy Apple stock online

Finding Apple shares is child’s play. All you have to do is use the search field on the website (or app) of our test winner, and you can then be guided to the value yourself.

There are all sorts of information about Apple shares. So you can see the social news feed, in which other users also leave their opinions and assessments about the asset. Statistics, the current chart and professional analyses are also available. But if you want to trade the Apple share yourself directly, click on the ” Trade ” button.

As soon as the paid-in capital is released for trading, you can place a buy or sell order. Usually, you then hold the desired position in Apple securities within a very short time. But, of course, this also depends on how generously you set the limits.

It is important to note that most online brokers can both bring the simple share into the depot and open CFD positions. To purchase the security yourself, you put the lever on ” X1 “. Then you get the information ” You are buying the underlying system “.

Risky investors who want to bet against the group can use CFDs to short the paper. The leverage enables higher risk with higher return opportunities. This is only recommended for experienced dealers.

Once you have defined the desired investment amount and confirmed the purchase price, you can order.

etfinance

Apple share price (price), dividends, target price & key figures (finances) 2021:

If you look at the long-term chart, there is little left of the fluctuations mentioned above: in the last ten to 15 years, Apple shares have only known one direction: up. But, of course, the iPhone was primarily responsible for this, which is why the share is considered a blue-chip share.

Because since its appearance in 2006, the sales figures have set new records in almost every quarter. Forecasts were regularly exceeded – and these are still the best arguments for rising prices.

Apple share price, target price and metrics

Quite a few experts in the industry assume that a new product could soon be presented, which could allow the group’s profits to flourish. One can only speculate about what that might be.

In any case, considering the current status, the price seems favourable. Moreover, sensible portfolio management ensures good opportunities with manageable risk.

At the current time, the average target price for Apple shares is US $ 200.38.

In the analysis by Finanz.net, which is based on 27 analyst opinions, there is a difference to the current price of around 7.66%.

Apple shares quarterly figures

Apple announced the last quarterly figures on January 26, 2021, for the first quarter of the fiscal year 2021, ending December 26, 2020.

The company achieved a record turnover of 111.4 billion US dollars, an increase of 21% over the previous year and quarterly earnings per share (diluted) of $ 1.68, a plus of 35%.

International sales accounted for 64% of quarterly sales. Apple also posted a  record cash flow of $ 38.8 billion. Plus, more than $ 30 billion was returned to shareholders in dividends. 

Apple shares dividend 2016 to 2021:

Apple pays out its shares quarterly. The general meeting usually takes place between January and March. The Apple share still appears lucrative thanks to its dividend.

Here is an overview of Apple’s dividends in recent years and planned dividends in the future:

Return in%dividendcurrencyyear
0.690.8USD2020
1.340.75USD2019
1.210.68USD2018
1.560.6USD2017
1.932.18USD2016

When will Apple pay the dividend in 2020

Apple Inc paid the last dividend in 2020 of $ 0.205 per share on November 12, 2020. Shareholders who bought AAPL before the ex-dividend date (11/6/20) were eligible for the Apple dividend distribution. The dividend represented a decrease of -75% compared to the previous dividend payment. At a share price of $ 114.95, Apple’s 2020 dividend yield was just 0.71%.

The first part of the dividend of Apple in 2021 was paid on 11 February 2021, a dividend was only in the amount of 0.205 US dollars per share.

Apple shares news & history

The beginnings of one of the world’s largest technology companies are legendary: Steve Jobs and his “partner in crime” Steve Wozniak once founded Apple modestly in a garage.

In 1976 computers were still far from commonplace – but the two young entrepreneurs had the potential to recognise and anticipate the digital age like hardly anyone else.

Of course, there was no talk of the iPhone at that time – the Internet was also in its infancy, if at all. So instead, the congenial core team at Apple concentrated on building the first PCs.

In just four years, the pair had annual sales of $ 118 million. Even the first models from Apple sold like hotcakes.

The IPO was also very successful: 4.2 million shares were sold for $ 22 each, making the two founders instantly millionaires.

Buy Apple Stock or Not Our future forecast 2021!

Apple stock split 2020

In a stock split, the original share price is divided into smaller prices per share. For example, Apple Inc. executed a stock split on 8/31/2020, offering trading at a lower cost per share.

That’s because the company carried out the four-for-one stock split to “become more accessible to a broader base of investors, ” said the company after a third-quarter co-earnings report.

A current Apple shareholder with one share will receive three additional shares since the stock split.

How many times have Apple split stocks?

Apple has performed 5 stock splits so far  in its history:

  • The first Apple share split took place on June 16, 1987. This was a 2-1 split. This means that he received two shares for every share that an Apple investor held before the split. So, for example, an Apple stock position of one stock before the split became 2 stocks after the split.
  • The second Apple share split took place on June 21, 2000. This was also a 2-1 split. The 2 shares before the split became 4 shares after the split.
  • The third Apple split took place on 28 February 2005. Here, too, there was a 2: 1 split. However, with this, the four shares before the split became 8 shares after the split.
  • The fourth Apple Split took place on 9 June 2014. This time there was a 7-to-1 split. The now eight shares of Apple became 56 shares.
  • The 5th split and currently the last split of Apple shares took place on August 31, 2020. This time there was a 4: 1 split. The 56 shares before the split became 224 shares after the split.

An investor who has held an Apple share since the first stock split would now own 224 Apple shares.

How many shares in Apple are there?

Experts often refer to the volume of shares issued by a stock corporation as “ outstanding shares ”. This number indicates how much of the company’s shares are traded on the open market.

A decline in shares outstanding over time can be the result of company buybacks. For example, Apple has also been doing share buybacks recently to reduce its “shares outstanding”.

There are currently 16,788,096,000 outstanding shares from Apple. 

How Much is Apple Worth? Apple market capitalisation

A company’s market capitalisation is calculated by multiplying the price of a share by the total number of shares outstanding. Apple became the first company in the world to hit $ 2 trillion in market cap in 2020, doubling its market cap in just over two years. On August 2, 2018, Apple achieved a market capitalisation of $ 1 trillion for the first time.

Currently, Apple has a staggering market cap of $ 2.179 trillion, making it the most valuable company globally.

Should you invest in Apple stock? Is it still worth it? Buying Apple shares makes sense?

Apple shares have generated outstanding returns for investors over the past few decades. In the period between 2015 and 2021 alone, the share price increased fivefold. As a result, an investment of € 10,000 would have a value of € 50,000 today. But does it still make sense to invest in Apple stocks today?

  • Apple is known for its innovative spirit and therefore continues to bring top-class products to the market.
  • In addition, Apple has a loyal following, who pounce on the new products and thus ensure stable demand for the products.
  • Apple can also show steady growth in the areas of cloud computing, autonomous driving and the area of ​​entertainment and technology products for the home.

Thanks to this innovative spirit and outstanding products, we think Apple shares are a promising investment. Moreover, surveys by CNN among investors also show that the majority of investors believe Apple shares will develop positively in the future.

When to buy Apple shares now?

The question of when to buy a stock can make the difference between high returns and high losses. When it comes to Apple shares, the question arises as to when is the right time to get started. Investing in Apple stock ten years ago, with dividends reinvested, would be worth nearly $ 130,000 today. In this example, we can see that it is important to have good timing when buying stocks.

Because of the positive outlook, it seems like a good time to buy Apple shares right now. The Cupertino-based company continues to deliver top-quality products in the field of smartphones and computers. In addition, it can further expand its business areas of cloud computing, wearables and home accessories such as the home pod.

In addition, Tim Cook’s company is working on major future projects, such as self-driving cars, which can also promise high returns in the future.

We believe that now is the right time to invest in Apple stocks. Trading via the broker ETFinance is very easy and, thanks to the short setup time, you can trade Apple shares in the shortest possible time.

Buy Apple Stock or Not Our future forecast 2021! (3)

Buy Apple Stock or Not? Our Apple investment analysis and evaluation:

  • One of the most valuable companies in the world
  • Strong record for years
  • Large cash reserves
  • Apple is cult
  • Lucrative dividend
  • Sales stagnation in some product lines
  • Growing competition with high innovative strength

Apple shares investment arguments

For many, the US company is more than just a hardware manufacturer; Apple is a cult. Steve Jobs ensured that the tech group had an almost religious status at the time. Year after year, this is reflected in considerable sales figures. The iPhone, which has long been considered a status symbol of the 21st century, ensures an excellent profit margin.

“The iPhone is so beautiful because every user can feel the soul when they hold it in their hands.”

Steve Jobs, Apple

Apple share sale arguments

Certain smartphone saturation is slowly returning around the world. At least in developed countries, sales figures are no longer growing as clearly as before. Quite a few sceptics worry about stagnation in corporate growth.

The company has already suffered stagnating sales figures, which have directly impacted the value of the security. Falling Apple share prices are also threatened in the future. Time and again, decision-makers are forced to buy back shares.

A good 70 million shares were invested using the cash reserves. Not everyone sees it positively.

Fees When Buying Apple Stocks

We compare the fees of the largest brokers with the following example:

  • Purchase of Apple shares worth € 1,000
  • Hold the Apple shares for one month and then sell them
  • No course changes in the 30 days

With these assumptions, we now compare the fees of Libertex, ETFinance & Plus500 :

ProvidersLibertexETFinancePlus500
Depositfor freefreefor free
Purchase fees€ 2.20free3.08%
Holding feesfor freefree0.05%
Sales charges€ 2.20spreads3.08%
Total fees€ 4.40Reasonable € 92.32

Buying Apple shares at ETFinance – Why we recommend buying at ETFinance

For trading Apple stocks, we recommend the ETFinance broker. With ETFinance, you have a partner at your side who has many years of experience in international trading and who can convince you with an excellent fee structure.

At ETFinance, you can invest in and trade in stocks free of commission. This sets ETFinance apart from other brokers and is, therefore, our clear recommendation for buying stocks.

Apple shares trading venues: Nasdaq, Frankfurt, Tradegate or Xetra?

Investors who want to invest in Apple have many trading venues available today (although not every broker offers every trading venue). The trading venues differ according to traditional stock exchanges, of which there are currently five in Germany:

  • The Berlin Stock Exchange
  • The Munich Stock Exchange
  • The Frankfurt Stock Exchange
  • the Stuttgart Stock Exchange
  • Börsen AG (which includes the regional stock exchanges Hamburg-Hanover and Düsseldorf)

Alternatively, there are also electronic trading systems. Here buyers and sellers are brought together directly. These include, for example, the  Xetra, the Tradegate Exchange from Berlin and the Gettex Exchange from Munich.

As a last resort, Apple shares can also be purchased over the counter. These are so-called market makers. This type of trading is also known as direct trading or OTC trading (over the counter). One of these over-the-counter platforms is, for example, the Lang & Schwarz Group from Düsseldorf.

It is always advisable to buy a share in a trading venue with the largest possible volume. This guarantees the simple purchase and sale of the share and is usually cheaper, thanks to a lower “spread”.

The following table shows the largest Apple shares trading venues, sorted by current volume  : 

Trading CenterVolume (in shares)
Nasdaq65,331,398
Tradegate208.983
Xetra103.141
LS Exchange38.084
Long & Black25.144
London23,396
Frankfurt18,441
Stuttgart13,454

Apple stocks future forecast 2021:

At first glance, the characters may not currently be ideal for Apple stocks. Because last year there was a stagnation in sales of the iPhone, the ultimate profit driver in recent years.

Of 52 million iPhones sold in 2018, the group is currently only assuming 42 million in 2019. As a result, sales figures also fell, especially in China, Apple’s most important market.

This development is causing more and more analysts to sell Apple shares – it is generally assumed that prices will be lower, primarily due to lower profits.

But two things should not be underestimated if you want to estimate the future price development of Apple shares: On the one hand, Apple has enormous cash reserves and could increase the prices through massive share buybacks relatively easily.

The second argument is based directly on the company’s philosophy: Apple has proven time, and again that new, innovative developments can bring a breath of fresh air to the entire industry. Whether iPhone, iMac, iPad or iPod, leaps in profit followed successful launches time and again.

Apple share development

The development of Apple shares over the past 5 years has been phenomenal. Apple’s stock price has been up 460% over the past five years. In addition, the tech giant’s annual revenue increased between fiscal 2016 and 2020. As a result, from $ 215.6 billion to $ 274.5 billion, net yearly income rose from $ 45.7 billion to $ 57.4 billion.

If you look at Apple’s five-year return on investment, you can understand ​​how price and profit have changed year after year.

In the following table, each row corresponds to a year. The second column shows the opening price at the beginning of the year. The next column contains the closing price at the end of the year. The last column shows the percentage profit.

yearOpening rate (in $)Closing price (in $)Return (in%)
2017$ 27.42$ 40.7148.47%
2018$ 40.71$ 38.52– 5.38%
2019$ 38.52$ 72.7888.49%
2020$ 72.78$ 132.6882.32%
2021$ 132.68

But can Apple maintain this momentum over the next five years?

Will Apple shares continue to rise?

Analysts expect Apple’s revenue to grow 21% in fiscal 2021 and another 4% in 2022Finally, the. Most of this growth will come from new hardware devices and the expansion of the service ecosystem.

The iPhone 12, Apple’s first iPhone with 5G, is expected to trigger a new wave of upgrades this year. According to recent estimates by its suppliers, the company could already ship 230 million iPhones in 2021, a growth of 14% over the same period in 2020 and the flagship device’s best year since 2016.

Strong shipments of the iPhone, which generated half of Apple’s sales in 2020, should attract more users to the growing service ecosystem, including the App Store, Apple Music, Apple TV +, Apple Arcade, Apple Pay, and other services. Last year, Apple generated 20% of its revenue from these services and recently exceeded 600 million paid subscribers across the ecosystem.

Apple will continue to leverage the strength of its hardware business and closed ecosystem to retain its customers, leading to further conflicts with companies like Spotify, Netflix, and Amazon. These conflicts could be costly, but Apple still had nearly $ 196 billion worth of cash and marketable securities last quarter, so Apple can afford to challenge these established competitors.

For the rest of the hardware business, investors should expect Apple to launch new versions of the Mac, iPad, Watch, and AirPods every year. The new Macs run on Apple’s ARM-based CPUs instead of the Intel x86 CPUs. In addition, more first-party chips may be built into the other devices to streamline the supply chain, differentiate devices, and increase margins.

Apple’s core business still has plenty of room for growth and is likely to continue to reward patient investors with higher dividends and more significant buybacks.

Apple only pays a dividend yield of 0.6% today, but its low payout ratio of 22% shows plenty of room for future increases. Moreover, Apple has already reduced its outstanding shares by more than 20% over the past five years. That reduction should continue for the foreseeable future.

How much will Apple stock go up?

It’s impossible to say exactly how much Apple stock will go up, but I believe it will continue to outperform the S&P 500 over the next few years significantly.

The core business is vital as before, it has many irons in the fire, and the stock is still less than 30 times the profit traded. As a result, the stock could still see some wild swings , but investors who hold Apple – instead of trading it – could be well rewarded over the next five years.

What does an Apple share currently cost in euros

Sell ​​Apple stock

Most analysts recommend buying the Cupertino company. But there are also voices from analysts who say that Apple has reached its zenith and that its prices could move sideways or downwards in the future. Some investors also think there is greater potential in other stocks. That’s why they recommend selling Apple shares.

If you also want to bet on falling prices of the Apple share, we recommend trading Apple CFDs via ETFinance. With ETFinance, you have the option to bet on falling prices and thus benefit from falling prices.

Apple share the conclusion & recommendation: buy or sell?

Should you buy Apple shares or not? Value remains one of the most popular assets of our time.

In the meantime, the global market has changed significantly, but the company seems armed.

If you consider past price heights, the last word does not seem to have been spoken.

An investment could therefore be worthwhile. With our test winner broker ETFinance, you can get the value directly into the stock portfolio or use short positions to place on further price losses.

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FAQs

The Apple shares are to be traded, so investors naturally wonder whether they should expect a dividend. Apple holds its annual general meeting between January and March. A dividend is then paid out.

In the past few years, the Apple share has picked up more and more momentum. The investment should therefore still be worthwhile.

Apple shares are listed on NASDAQ and can be traded there.

The article introduces a few ways how you can quickly get your own Apple stock. If you do not want to purchase the share directly, you also have the option of using CFDs to bet on rising or falling prices.

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