Apple stock forecast – should your portfolio take a bite?
It’s easy to assume that Apple stock forecasts are always bullish. After all, its iPhones have always been popular for almost 20 years. However, this isn’t enough to convince investors to purchase Apple (AAPL) shares this year.
We’ll start with a brief history of the tech company. Then, we will go through some troubles its encountering and how it may respond. More importantly, we’ll discuss why and how you should invest in Apple stocks for 2021.
Economic downturns usually serve as major buy signals for most investors. In response to the pandemic, some of them are looking at Apple stocks and other options. Yet, it would help if you considered several factors before adding some to your portfolio.
A few bits about the tech giant
Before we talk about Apple stock forecasts, let’s take a brief look at its past. It’s always a good idea to have an overview of a company before buying its shares.
Steve Wozniak and Steve Jobs founded Apple Computers Inc. on April 1, 1976. Both aimed to build computers for daily use in offices and homes. In other words, they wanted user-friendly PCs.
In 1977, they released the Apple II. It was a groundbreaking change for the computer industry. Apple sales rose from $7.8 million to $117 million from 1978 to 1980.
However, Wozniak left the company in 1983. Meanwhile, Jobs took on PepsiCo’s John Sculley to be the company president. Sadly, Steve Jobs left in 1985 after an issue with Sculley.
From the 1980s to the 1990s, Apple faced stiff competition from Microsoft. Then in 1990, Apple shares slowly fell from their peak. Experts thought the company was doomed by 1996.
In response, Apple brought back Steve Jobs as CEO. Not long after, he implemented big changes to its product lineup. The company branched out into other kinds of gadgets too.
Under Steve Jobs, Apple came out with the beloved iPod music players. Eventually, he wowed the world with the iPhone, the first touchscreen cellular phone.
Apple hit by chip shortage.
Are you scratching your head as to why we discussed Apple’s history? If you look closely, you’ll see that Apple products are electronic, save for some accessories.
These fancy gadgets rely on semiconductor chips to work. These are the minuscule computers at the heart of these “i-products.” Without them, Apple will have a hard time producing devices.
Unfortunately, the pandemic caused a worldwide chip shortage. These components come from countries that are still struggling with the coronavirus.
Also, global supply chains still haven’t gone back to normal. These factors make it hard for companies that rely on them. These include EV companies like Tesla and NIO.
Apple CEO Tim Cook also recognizes this problem. He announced product shortages that may happen in late 2021. Apple may lack gadgets that rely on the M1 chip, like the new iPad Pro.
Cook pointed to the current chip shortage as the reason. The chip factories cost a lot to run too. Together, they make it difficult to meet the increased demand.
Apple stock may focus on defense.
Investors look for companies that are striving to be the best. They create new exciting products to get more customers. Some expand their operations to other parts of the world.
These show that a publicly-traded business is likely to grow. In turn, its stock price has a high chance of increasing. In other words, the company is going on the offense for growth!
On the other hand, some businesses may decide to do the opposite. It may try to keep itself afloat instead of rising further. Simply put, a company may go on the defensive.
In the short term, Apple’s (AAPL) stock may not show much growth. While the company’s upcoming products are promising, the Apple stock forecasts say otherwise.
The new iPad Pro and iMac may help the Apple share price. That’s not likely to happen as long as we still have a chip shortage. It could go away in the long term, but that’s yet to be seen.
Should you invest?
Based on the Apple stock forecasts, do you need it in your portfolio? Let’s check the current data from Wall Street analysts. Note that these were the real-time data at the time of writing:
- Stock price – $134.78
- Current buy rating – 27
- Price targets – $185.00 (high), $160.00 (median), $90.00 (low)
Despite recent events, experts still suggest buying Apple stock. There could be several reasons. The biggest one is that Apple is still going strong during this pandemic.
The chip shortage may be a minor short-term setback. Aside from that, Apple stock forecasts are positive it will grow in the long run.
The company is not likely to suffer huge losses too. There is still quite a demand for Apple products. It’s boosted by the growing remote work and online learning trend.
Even better, it pays dividends. If you’re looking for a fixed income, this could be a great choice. Apple stock may provide regular payments throughout the year.
You may still buy Apple stock if you want more growth. It could rise further at the end of 2021 or next year. Besides, you can check more long-term stock ideas for your portfolio.
Before you buy stocks or other investments, make sure to learn all you can. Never put your money in something you don’t understand.
The internet provides plenty of free-market data for everyone. You may also check other bits of financial advice too. All you need is at your fingertips.
Note that this article is for informational purposes only. Never buy and sell any security or stock without checking potential risks. Only use the money you’re willing to lose.
Learn more about Apple stock forecasts
Is Apple stock a good buy for 2021?
Apple stock forecasts say it’s a good buy for this year. However, don’t expect much growth for a few months. Also, make sure this option matches your investment strategy.
What is the highest price Apple stock has ever been?
Apple stock price hit its record high at $702.33. This took place on a Tuesday, September 18, 2012. It came due to the release of the iPhone 5 and other products at the time.
What is the future of Apple stock?
At the time of writing, the price of Apple stock was $134.78. Meanwhile, Apple stock forecasts say it could go up to $180.00 or above. This may change due to several factors.
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