Getty Images is the source of the image. Is there a reason to consider purchasing Apple stock? Apple provides investors with the opportunity to capitalize on major tech trends, such as AI, while minimizing the risk associated with volatile share prices often seen in smaller companies. The company systematically introduces new features and services, taking a more measured approach compared to its competitors but reaping significant benefits in the long run. In 2019, Apple unveiled several new services like Apple Arcade, Apple TV+, Apple News+, and Apple Card, contributing to $96 billion in sales for its services segment over nine months in 2024.
Critics have noted that Apple has not released a groundbreaking mass-market device in recent years, and its current stock price is relatively high, with a forward price-to-earnings ratio of 33.6 compared to the S&P 500’s 23.4. Owning Apple may be suitable for investors seeking a steady-growing tech giant capable of innovation, but there may not be a significant missed opportunity in abstaining from purchasing its stock at present.
As someone with existing Apple stock, I’ve contemplated the rationale for holding onto it. While the case for buying may not be compelling, there is one reason to retain Apple in your portfolio: artificial intelligence. Apple has ventured into AI with features like Apple Intelligence, offering tools to assist users in various tasks. The potential for Apple to monetize AI remains unclear, but the company’s history of seizing new market opportunities suggests promise in this field. I am retaining my Apple shares to observe the company’s advancements in AI.
When it comes to selling Apple shares, the decision will vary for each investor based on personal circumstances. Common reasons for selling any stock include the original investment thesis becoming obsolete, company acquisition, financial needs, portfolio rebalancing, or identifying superior investment prospects. While I recommend keeping some shares, I have contemplated selling a portion of my Apple holdings due to the abundance of rapidly growing tech companies currently capitalizing on AI. Review the aforementioned reasons and assess their applicability to your investment strategy if you own Apple stock.
When considering the decision to sell a company, factors beyond the possibility of a takeover, such as in the case of Apple, may come into play. Often, the choice to sell hinges on personal preferences tied to an individual’s investment strategy and financial objectives.
Before committing $1,000 to Apple, it is wise to reflect on certain considerations. The Motley Fool Stock Advisor team has recently spotlighted their selection of the top 10 stocks that they believe present the most promising investment opportunities. Interestingly, Apple did not make the cut within this exclusive list. The 10 companies deemed worthy by the analysts are anticipated to generate substantial returns over the coming years.
A notable example to ponder is Nvidia, which was featured on a similar list back on April 15, 2005. If you had followed the recommendation at that time and invested $1,000 in Nvidia, you would have seen a remarkable return, with your investment potentially growing to $885,388*.
Investors seeking a comprehensive investment strategy can turn to the Stock Advisor service, which furnishes a user-friendly roadmap for achieving success in the market. This subscription service offers valuable insights on structuring a diversified portfolio, regular analyst updates, and two new stock recommendations monthly. Since its inception in 2002, the Stock Advisor has significantly outperformed the S&P 500, demonstrating its ability to deliver substantial returns to its subscribers*.
For a detailed overview of the 10 recommended stocks and to explore the potential they hold, visit the link provided*.
It is important to note that Chris Neiger holds positions in Apple, and The Motley Fool both holds and recommends Apple. Furthermore, The Motley Fool adheres to a strict disclosure policy, ensuring transparency in its recommendations and transactions.
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*The Motley Fool Stock Advisor returns as of December 30, 2024.
*Link to the 10 recommended stocks: [insert link]
