How to Buy Apple Stock
Update On Apple's Stock Price
1/19/2017 Update - Apple stock continues to perform well, hitting a 52 week high this week and closing Thursday's trading at $119.78. The next big event that may move the stock will be the companies earnings report at the end of the month. The just completed holiday quarter is the most important one for Apple and analysts will be making their projections/predictions in the coming weeks.
Apple's MacBook Pros are now finally available for pickup in most stores but the recently released AirPods are not. The AirPods are seeing high demand after getting great reviews in most technology publications. Tim Cook has gone on record saying that Apple is making them as fast as it can and selling out immediately.
2017 will be a very important year for Apple as it tries to make a comeback from what most people agree was a lackluster 2016. The next phone (probably called the iPhone 8) will be the key driver of profits and has the potential to make everyone happy again if it has enough new features with a new look. Many analysts seem to think that Apple needs to work harder on giving customers what they want rather than what Apple thinks they need. This comes from the "disappointing" new MacBook Pro lines that seem to be underpowered and lacking the ports that most professionals need.
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 $120 after splitting last year, 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) Motif Investing - One of the cheapest at $4.95 per trade
4) 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 Motif Investing with its cheap fees for investors of any experience level. Its a good broker to get started with because you can also buy baskets of stocks (called Motifs) which allows you to more easily diversify.
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 $120 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 will be a failure and will only be bought buy die-hard Apple fans.
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 two new phones to sell each product cycle (this year its the iPhone 7 and 7 Plus) instead of just one as well as an "SE" model for those who like the smaller form factor. The company 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. It is believed that while the new iPhone 7 doesn't have a different form factor, next year's 10th anniversary model will be a blockbuster with Oled screens as well as other improvements which we can only speculate about now.
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.