Source: PaxForex Premium Analytics Portal, Fundamental Insight
Even though Apple is down more than 16.88% for the year (as of Nov. 21), it is the most expensive public company in the world, with a market value of more than $2.4 trillion. By comparison, that's more than Alphabet and Amazon altogether. Apple has reached this size for a reason - it's well deserved.
With world-class products and unparalleled brand loyalty, Apple is a force to be reckoned with. Here are a few reasons why you should add Apple stock to your portfolio in 2023.
- Apple is evolving into a player in the financial industry
Apple first took the plunge into the financial services industry in 2014 when it first introduced Apple Pay. Apple Pay brought people the convenience of paying with their phone, but not many saw it as a serious move by Apple into the industry. Fast forward to 2019, when the Apple Card was announced, and it became a little more obvious that Apple was serious.
As part of the Apple Card, Apple worked with Goldman Sachs to approve applications and fund loans. That's why when the company announced Apple Pay Later, it was a clear signal that other financial businesses should plan accordingly. Apple Pay Later is the company's shift into the "buy now, pay later" industry. What is more important, this is the first time Apple is doing its own underwriting and loan financing.
Because Apple can provide financial services without intermediaries, it is in a good position to use its enormous technical power to take the ever-growing financial technology (fintech) market by storm. The global fintech market was just over $115 billion last year and is estimated to reach over $936 billion by 2030. It is obvious that Apple wants a decent piece of that pie.
- Streaming is developing in a favorable direction
Apple's TV+ streaming service is certainly lagging behind other platforms like Netflix, Hulu, and Disney+, but there should be more encouraging times ahead as the company invests more resources into the platform. In June, Apple and Major League Soccer (MLS), the world's fastest-growing soccer league, revealed an agreement to show all MLS matches worldwide for 10 years, starting in 2023.
The deal with MLS, worth at least $2.5 billion, is the first time a major American sports league has moved all of its matches to a streaming platform. It is also the first time in the history of big professional sports that games will not have any restrictions or local blackouts. It's a move that shows that Apple is getting more serious about investing to become more competitive in streaming.
Will Apple TV+ ever be able to make it into the top three streaming services? It's unlikely in the foreseeable future. But you can be sure that it will continue to expand and slowly but surely begin to gain market share.
- It's an undeniable cash machine
In this tough year denoted by high inflation and economic anxiety, Apple made $394.3 billion in revenue in the fiscal year 2022 (up 8% YoY) and a record $90.1 billion in Q4 alone (up 8% YoY). By comparison, Visa, the 10th largest U.S. company by market capitalization, made $29.3 billion in its fiscal year.
There's no rebutting that Apple is an incredible profit generator, and there's no basis to think it will slow down hereafter. Apple has more cash on hand than many S&P 500 companies. While holding too much cash and not investing in other areas may slow the company's development, we see no signs that this is a problem for APPL.
With this size of bank account and commitment to innovation, Apple still has room for notable growth - which is what matters to an investor. It's one thing to have a great history; it's another to be poised for future success. That's why an investment in Apple is always a good idea.
As long as price is above 142.00, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 150.58
- Take Profit 1: 155.00
- Take Profit 2: 163.00
Alternative scenario:
If the level of 142.00 is broken-down, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 142.00
- Take Profit 1: 134.00
- Take Profit 2: 129.00
