How to Buy Apple Stock
Update On Apple's Stock Price
1/31/2019 Update - Apple stock has gone from a high of around $233 all the way down to $142 in the span of about 2 1/2 brutal months. Apple's downward guidance revision confirmed that iPhone sales are lagging and that there are big problems in the Chinese market. Investors relentlessly sold the stock in fear the the company is finally going to be hurt buy too high prices and a "lack of innovation".
Earnings were announced on 1/29/2019 and everyone was fearful of just how bad things might be with the company. However, in response to those earnings (which were lower as Apple said they would be) investors seem to have decided that they weren't THAT bad and yesterday the stock rose $10 up to $165. All in all, it was the second best earnings report EVER from Apple even though investors would have liked them to make even more. Investors are hard to please and that is something you should get used to if you invest in stocks.
It was another great earnings quarter for Apple and they announced revenue of $84.3 billion which was down 5% from the year-ago quarter. This equated to quarterly earnings per diluted share of $4.18 which was up 7.5 percent. International sales were responsible for 62 percent of the quarter’s revenue.
Revenue from all models of the iPhone went down 15% from the prior year but revenue from all other products and services was up 19%. A bright spot were Services which reached an all-time high of $10.9 billion in revenue. By all accounts the Wearables division (which includes Apple Watch and AirPods) continues to grow at a fast pace and you can see it on the street as those two products are very common nowadays.
Within the last four months Apple has released three new iPhones, two new iPad Pros, a new Mac Mini, new MacBook Air, and a new Apple Watch 4 which means that customers had a slew of new product to consider buying this last Christmas quarter. By all measures this was another great earnings quarter but expectations are always so high with this company that it is hard for it to keep knocking it out of the park every time.
Here is a look at Apple's guidance for the upcoming 2nd quarter of 2019 that has also has investors concerned because this guidance is lower than what many were hoping for:
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 $165 and it has been on a rollercoaster ride the last handful of years. For long stretches it was thought by many to be undervalued when it was trading in the $91 to $150 range. But the last year of trading saw Apple stock rise significantly to over $233 a share. Now the stock has come back down just as fast as it went up leaving investors with a bit of whiplash and wondering whether Apple is a good solid investment or a bit more risky than they might have thought.
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 $3.95 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 $165 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 always many opposing views about this:
Although it has been many years since Steve Jobs died, some people in the media still cling to the notion that the companies innovation died with him. 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. Now people are saying the HomePod is a big failure.
On the other hand, some say that Apple has used the last handful of years to perfectly set up their long term plans. Now they have three new phones with small bezels and big screens to sell in 2018 (iPhone Xs, iPhone Xs Max, and the iPhone XR). In late October there was another event which showed a new iPad Pro and new MacBook Air which are now for sale.
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 suffers time to time because of those rumors but the stock seems to be trading in a more positive fashion for most of the last year. 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.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.