The question “Should you still buy Apple stocks?” frequently pops up at the office of Hugo Investing in Marbella. It seems as if everyone has an opinion about this tech giant. And yes, many of us are supporting Apple Watches and using high-resolution iPhone cameras, a testament to our faith in Apple’s remarkable products.
But let’s delve deeper into the company and explore its relevance for investors in Spain.
Steady triumph in a fluctuating market
While the global smartphone market has been somewhat sluggish, Apple’s iPhone sales continue to show robust growth. This is crucial, considering about 60% of Apple’s total revenue comes from iPhone sales. Over the last decade, Apple’s market share has steadily risen from 15% to 20%, mainly at the expense of Android. This growth trajectory has also been reflected in the stock price, making it an attractive proposition for investors, including those based in Spain looking for diversified, global portfolios.
Concentrating on the last 4 years, the stock currently hovers around a pivotal level of $175. Breaking this barrier could push it down to the next resistance level around $160. The subsequent crucial threshold would be $142 if it doesn’t hold. Though technical analysis isn’t foolproof, it offers investors valuable insights.
Risks, opportunities, and valuation
Challenges loom large for Apple, especially with China’s directive forbidding government employees from using Apple products—a move that could impact revenue. Additionally, the emergence of Huawei as a formidable competitor in China raises concerns. This could influence investor perspectives in Spain, where Huawei has a strong market presence. Moreover, there are concerns about the high prices of the new Apple products, with the iPhone 15 Pro Max costing €1500.
A closer look at Apple’s financial health reveals a substantial cash reserve of around $160 billion. While this reserve is primarily earmarked for share buybacks, it has contributed to the rise in earnings per share. Moreover, free cash flow has consistently increased.
As for valuation, Apple currently trades at a Price-to-Earnings ratio of about 30, considerably higher than its historical average of 20. Investors, including those in Spain keen on tech investments, should watch this space carefully. It’s important to keep in mind that market conditions and competition are variables that can influence the valuation.
Is Apple still a wise choice for investors? That largely depends on individual investment goals and risk tolerance. Despite its high valuation, the company maintains a strong financial standing and continues to innovate. For Spanish investors eyeing international tech giants as part of a balanced investment portfolio, keeping a close eye on Apple is advisable. Given the current stock positioning, now could be a critical moment to weigh in on this investment.
Investors should not only focus on the current stock price but also on the underlying fundamentals and prospects for future growth. Whatever the outcome may be, Apple will undoubtedly remain a lasting player in the world of technology and investments, making it worth considering for Spain-based investors looking for long-term growth prospects.
Expert guidance with Hugo Investing
When navigating the complexities of investing in tech giants like Apple, expert guidance can make all the difference. Especially given its high valuation and ever-changing market dynamics. That’s where a company like Hugo Investing comes into play.
Hugo Investing offers personalised coaching and guidance for investors and traders who are investing in the stock markets. With over 60 years of combined experience working with private investors, the team is highly qualified to support. Whether you’re questioning Apple’s current valuation or wondering about the regulatory landscape in international markets like Spain, Hugo Investing can provide you with the tailored guidance you need to invest your money wisely. Their expertise can help you assess risks, recognise opportunities, and ultimately make more informed decisions, giving you peace of mind in a volatile market.