How to Buy Apple Stock
Update On Apple's Stock Price
2/2/2018 Update - Apple stock dropped almost 4.5% on Friday on earnings that disappointed investors and Wall Street. The stock closed at $160.50 which is almost $20 off its all time high of just a few weeks ago. iPhone sales came in slightly below expectation although the average selling price rose, most likely due to the $1,000+ price tag of the iPhone X. But investors fear, once again, that the iPhone has peaked and that it will be hard if not impossible for Apple to grow sales of a product that much of the world's population already owns.
While other product categories sold well over this just completed Christmas quarter, investors always fear that the company is too dependent on the iPhone and this often causes the stock to drop after earnings that don't "Wow" them. Even though this was the biggest quarter EVER in the history of Apple, it still wasn't good enough apparently. Adding to the stock drop was the lower than expected guidance that Apple gave for the next quarter which is often just as important as the number of the just completed quarter.
Apple is now selling the all new iPhone 8, iPhone 8+, iPhone X, Apple Watch Series 3 with cellular, a new Apple TV, a new iMac Pro, and the Home Pod which are all in stores now. It is rumored that a new iPhone SE will be unveiled sometime in the first half of 2018.
Apple's stock price is very dependent on what quarterly numbers the company reports every 3 months and what guidance it gives. The next earnings report should come in late April 2018 and and as always, could move the stock significantly in either direction.
Are You Thinking About Investing in Apple?
Apple gets more press coverage than any company in the world. No matter where you look, you will find opinions on how the company is doing and whether their stock is a "buy" or a "sell."
The stock now sells for about $160.50 after splitting a couple years ago, which means the price is more accessible to many individual investors. People who never could afford to buy the stock when it was priced $500 to $700 per share may now be able and willing to add it to their portfolio.
Anyone thinking of buying Apple stock needs to be aware that a strong stomach is sometimes needed. Even though they are very strong financially as a company and have one of the most well known brands in the world, the stock seems to go through wild gyrations at times.
Will You Buy Apple Stock Now That It Has Split?
You Need An Online Broker
Before you can buy any stock, you need to open an online discount broker account. It sounds hard but it really isn't and you can do it in less than an hour. First though, you need to choose one and here is a short list of some of the reliable ones.
1) Ally Invest - One of the cheapest at $4.95 per trade
3) Merrill Edge
Any of those brokers are trustworthy and have been around for years. Your money will be safe with all of them and I highly recommend Ally Invest with its cheap fees for investors of any experience level. Its a good broker to get started with because there is no minimum amount requirement to get started like some other brokers.
No matter which online broker you ultimately choose, you will have to fill out some personal information and then put money in your new account. That can be done by wiring money, sending a check, or doing an electronic transfer from your bank to your new account. ***Don't forget to do this as you can't get started buying stocks until you fund your account!***
How To Buy Stock
Once you have money in your stock broker account, you can then buy any stock that is listed on the NASDAQ and New York Stock Exchange right from your home computer. Additionally, you can now do it with most brokers right through their mobile app as well.
Apple stock now sells for around $160.50 and buying 1 share, 50 shares, or 100 shares will cost you the same in trading fees. Most brokers on the list above charge between $5 to $10 per trade. That means you will pay that fee when you buy your stock shares and pay that same fee a second time when you sell your shares (whenever that is).
When you complete your purchase, you will get a confirmation that the "buy" has gone through and then you will see those shares in your account. Every trading day, those shares will go up and down and your account will as well. Obviously, the hope is that Apple stock will go up after you purchase it and your account balance will go up by the same amount.
Is Apple Stock A Good Buy Right Now?
There are many opposing views about this:
Some still say that Apple hasn't done enough innovating in the years after founder Steve Job's death. They fear all Apple is doing is pushing out updated models of existing products and adding size options. They also fear the intensely competitive world of mobile phones will prevent Apple from making money years from now. They also cite the fact that Apple has a small market share compared to Samsung and that the Android platform is free, which allows other phone companies to more easily compete. There are also those that believe the Apple Watch was a failure even though the evidence proves otherwise.
On the other hand, some say that Apple has used the last couple of years to perfectly set up their long term plans. Now they have three new phones to sell in late 2017 (iPhone 8, iPhone 8 Plus, iPhone X) as well past models iPhone 6, 6+, 7, 7+, and SE. The companeny continues to push its expansion into China and India which should provide benefits for years to come, and the iPhone has proven to be extremely popular in the higher-end markets, even in China. Despite Apple's smaller market share, it continues to dominate in profits which is what being in business is all about: making money.
There is always the opinion perpetuated by the media and Apple detractors that Apple has run out of new products and new ideas. Apple stock has suffered greatly in the last year and a half because of those rumors and beliefs but the stock seems to be trading in a more positive fashion lately. It must be noted that there is no guarantee when you buy any stock (including AAPL) that it will go up and you should always be prepared to accept losses, if they come, as well as gains.