Why Make Long-Term Investment in Apple?


At the beginning of this year, Apple became the first company to reach a market cap of $3 trillion. Although the milestone the company then achieved was mostly symbolic, investors have since remained bullish on Apple stock and its potential to grow. The market value of $3 trillion means that Apple tripled its valuation in less than four years, and analysts are convinced that new record heights lie ahead for Apple stock. There is plenty of room for its price increase in 2022. Therefore, if you are considering investing in stocks, Apple should be on the top of the list of the companies in whose shares you might put money at a profit. 

People should be careful when choosing stocks for investment, advised to check their volatility, P/E Ratio, and dividends before making a decision. But with Apple’s proven reputation to survive tough times, fewer precautions are required. Indeed, even when the stock market tumbled in May and when Apple slid to $150 per share from a peak of $182 reached in January, investors stayed optimistic about the company’s growth. Whatever dive a company takes, it remains a globally famous brand with premium profit margins, stores in large shopping centers, and a rich arsenal of products loved by wealthy consumers worldwide. Even if Apple stops being the most valuable company in the world, analysts believe that it will continue generating immense profits and sales. 

Apple’s resilience in hard times recommends it as a stock for investment. Its new products offer another strong recommendation to people considering buying Apple stock or holding it long term. Apple 5G has been boasting a robust upgrade cycle. Statistics show that customers have been adopting 5G faster than they did 4G by more than 10% within the first year after the launch of 4G. 

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Analysts expect Apple to announce a foldable smartphone next year. It is thought to follow soon in Samsung’s footsteps. The latter has already designed the foldable Galaxy Z Fold 3 and Flip3 phones, and Apple might soon present similar foldable phones to the public. And as its new products often do, Apple’s new smartphones might even outshine Samsung’s innovations. Indeed, by temporizing and waiting for its competitors’ products to reveal their drawbacks, Apple always manages to implement a new technology more effectively than other companies.   

The public has recently applauded Apple’s announcement of its virtual reality/augmented reality headset. A lighter pair of AR glasses is anticipated to complement the headset slightly later, in 2023. Yet even if the long-expected headset is not displayed on the shelves in Apple stores this year, analysts predict that the announcement will still boost sales significantly, as did Apple’s other wearable items, now representing more than 10% of the top line. But whenever Apple starts selling its much-awaited products, they will help it keep pace with Microsoft and Facebook in the emerging virtual and augmented reality markets. With so many long-desired items in the offing, Apple’s financial prospects, therefore, look bright not only this and next year but also for years to come.

Indeed, analysts foresee Apple stock soaring almost 15% to $190.59 over the coming year. They also classify the stock as “a good-term investment” that could surge 33% to $202 by the middle of 2023. In the spring of 2024, Apple stock is forecast to cost $249 and increase to $294 in 2025. By the middle of 2026, its price might be as high as $340. The five-year Apple stock price target to 2027 sees the stock at $385. This would represent a jump of 153% over the $152 level at the close in spring of 2022. 

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These numbers suggest that Apple will be enjoying an upward movement for at least a decade. The bright future makes Apple stock an ideal investment now. If you are impressed by the power of Apple in the stock market and want to put money in it, first determine how much you want to invest and, second, set up your investment goals. Apple is best suited for those investors who have the moderate risk tolerance, the ability to weather storms of volatility in the stock market, and a long-term time horizon. As Apple is the principal leader in the tech industry, it recommends itself well for a long-term investment. Hold Apple stock for a longer time and chances are that you will earn a handsome return on your investment.



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