Should I Buy Apple Shares in 2022?
Apple is without a doubt one of the most successful companies ever. In fact - at the time of writing, 5 September 2022 – it is the largest company in the world by market capitalisation. The tech giant has created an almost cult-like following amongst its fans, with each new product launch attracting considerable attention around the globe.
With so much past success, investors may find themselves asking the question, ‘should I buy Apple shares?’ In this article, we will provide insight for those considering investing in Apple stock, deliver an analysis of the recent Apple share price, demonstrate how to buy shares in Apple and much more!
Table of Contents
Apple Inc. – A Brief History
Since its foundation in 1976, Apple has become the largest company in the world by market cap, breaking several records along the way.
But how did it get there? Before we look at the prospect of investing in Apple and demonstrate how to buy Apple shares, let’s take a look at some of the highlights in Apple’s illustrious history:
- 1976: Apple founded by Steve Jobs, Steve Wozniak and Ronald Wayne. Later that same year, the Apple I prototype debuted, having been hand-built by Wozniak and reportedly financed through the sale of Jobs’ VW Camper Van and Wozniak’s HP-65 calculator
- 1980: Apple goes public via an Initial Public Offering (IPO)
- 1982: Apple added to the S&P 500
- 1984: The original Macintosh is released
- 1985: Steve Jobs resigns from Apple after being forced out and subsequently founds NeXT
- 1996: After a period of decline at the hands of Microsoft, Apple acquires NeXT and brings back Jobs, who became CEO the following year and went on to gradually transform Apple into the company we know today
- 2001: Debut of the iPod
- 2007: The first iPhone is unveiled
- 2010: The first iPad is released and later that year Apple’s market capitalisation surpasses that of competitor Microsoft for the first time since 1989
- 2018: Apple becomes the first US company to reach a market cap of $1 trillion
- 2020: Apple becomes the first US company to reach a market cap of $2 trillion
Apple Financial Results – Q3 2022
The return of Steve Jobs to Apple kicked off a period of unbridled success for the tech giant and, particularly since the iPhone was first unveiled in 2007, Apple’s profitability has soared.
When investing in Apple, or any other company, it is important to remember that you are acquiring a portion of the company. The success of your investment is dependent on the continued success of Apple’s business. Therefore, it is important to familiarise yourself with the company’s recent financial performance and their future outlook.
In the table below, we have highlighted some of the key figures from Apple’s recent, expectation-beating, third quarter results for the fiscal year of 2022.
|Three months ended 25 June 2022||Three months ended 26 June 2021||YoY % change|
|Net Sales||$83.0 billion||$81.4 billion||1.87%|
|Net Income||$19.4 billion||$21.7 billion||-10.59%|
|Earnings per Share (EPS)||$1.20||$1.31||-8.40%|
Source: Apple – Third Quarter Results - Fiscal Year 2022
Apple Share Price Analysis
Especially over the last decade, Apple’s share price has experienced phenomenal growth, gaining more than 560% in the ten years ended 31 August 2022. Before we address the question of ‘should I buy Apple shares?’ let’s take a look at the recent history of the Apple share price.
In the two years between the start of 2016 and the end of 2017, the Apple share price rose 61%, and 2018 started in the same way, with share price gaining a further 37% before hitting an all-time high in October of the same year.
However, soon afterwards Apple’s share price began to drop amidst concerns about weak demand for the latest iPhone model. By the end of 2018, the Apple stock price had fallen more than 30% from its all-time high, closing the year down almost 7%.
Nevertheless, 2019 saw an almost instant reversal in fortune and the stock closed the year with a gain of 86%. The following year, 2020, also started well but – in February, as coronavirus began to spread around the world – the Apple share price fell, losing more than 30% in a little under six weeks.
Nevertheless, this downtrend did not last long. Apple, like many other tech stocks, went on to record extraordinary success during the social restrictions which ensued. After hitting a low of $56.09 on 23 March 2020, Apple shares soared and gained around 217% by the end of 2021.
Like many other stocks, Apple shares have struggled for consistency in 2022 – falling 11.5% in the first eight months of the year amidst an uncertain economic outlook.
|A $1,000 investment in Apple at the IPO price of $22 per share would have bought you 45 shares of Apple stock. Adjusting for subsequent stock splits, as of 31 August 2022, you would have owned 10,080 shares, a position worth around $1,584,778!|
Will Apple’s poor performance this year continue? Or is the most recent drop in share price a good opportunity to invest in Apple stock at a cheaper price? In the following section, we will examine the question of ‘should I buy Apple shares in 2022?’
Trade Apple Shares Using CFDs
Do you think that the Apple share price will continue to fall in the coming months?
With a Trade.MT5 account from Admirals, you can trade Apple shares using Contracts for Difference (CFDs). CFDs allow traders to attempt to profit from both rising and falling prices by going long and short, whilst also being able to access leverage.
Leverage allows traders to access larger position sizes with a smaller deposit. Whilst this has the effect of magnifying potential profits, it also has the same effect on losses and, therefore, must be used responsibly.
Should I Buy Apple Shares in 2022?
It is true that Apple shares have not performed well in 2022, falling 11.5% in the first eight months of the year.
However, it is important to look at that drop in the context of the wider stock market, in which many stocks have shared similar fates. In fact, Apple’s loss of 11.5% is fairly modest compared to the wider S&P 500’s plunge of 17% over the same timeframe.
With high inflation, rising interest rates and stagnant economic growth, there is no escaping the fact that we are living through a challenging economic period. In such circumstances, investors tend to rotate out of riskier growth and tech stocks and move towards safer, defensive stocks.
Traditionally, Apple would have found itself classified in the former of these two types of stocks; however, the company we see today has qualities which may serve it well in all stages of the economic cycle.
Each release of new Apple products is eagerly anticipated by legions of loyal followers, many of whom quickly purchase their latest gadgets with little hesitation. Whilst an economic downturn would likely dampen demand for Apple products, it is also likely that they would be able to continue to rely on demand from consumers who view Apple gadgets as essential goods.
In addition, an increasing proportion of Apple’s revenues come from its eco-system and from services that are not directly dependent on the quarterly sales of its phones.
All this has been somewhat evident this year. Amidst difficult economic conditions, Apple have beaten expectations in both of their quarterly earnings announcements and - as we approach the final quarter, which has historically been their best performance wise – it would be no surprise to see Apple’s positive results continue.
Consequently, Apple could escape an economic downturn relatively unscathed and benefit from increased demand during an expansion on the other side.
There is certainly a lot to like about Apple stock; however, those considering investing in Apple shares should be prepared for continued volatility in the future as the stock markets continue to react to economic uncertainty.
How to Buy Shares in Apple
With an Invest.MT5 account from Admirals, you can buy Apple shares at competitive terms! In order to learn how to buy shares in Apple, follow these steps:
- Open an Invest.MT5 account and log into the Traders Room
- Next to your account details, click 'Invest' to open the MetaTrader WebTrader
- In the Market Watch on the left-hand of the screen, search for Apple stock and drag it onto the chart to open an Apple price chart
- Click the 'New Order' button at the top of the screen, enter the number of Apple shares you want to buy and send the order to the market in order to invest in Apple stock!
Why Invest in Apple with Admirals?
Investors who choose to invest in Apple with Admirals benefit from the following:
- Competitive transaction fees and no account maintenance costs
- Free and exclusive access to our Premium Analytics portal
- Regular market analysis and a constantly growing library of educational articles at no additional cost
- The comfort of investing with a broker which is authorised and regulated by the UK Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the Jordan Securities Commission (JSC) and other well-known financial regulators
Investing with Admirals
With an Invest.MT5 account from Admirals, you can buy Apple shares as well as shares from more than 4,300 stocks and over 300 Exchange-Traded Funds (ETFs) from 15 of the world’s largest stock exchanges! Click the banner below in order to open an account today:
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