Is AAPL Stock On Your List Of Tech Stocks To Buy? Analysts Predict Apple To Hit $3 Trillion By 2023
Apple (AAPL Stock Report) has just hit an incredible milestone. You may have guessed it. Yes, it became the first tech stock to pass the $2 trillion mark. This comes ahead of a 4-for-1 stock split that will lower the entry barrier for prospective investors to buy shares. The iPhone maker has beaten the other tech giants such as Amazon (AMZN Stock Report) and Microsoft (MSFT Stock Report) to reach this milestone. Of course, this is a largely symbolic figure. There’s nothing significant changing fundamentally. But the bottom line is that Apple is doing very, very well. Maybe you are like many other investors who are contemplating whether to buy AAPL stock now. Let’s take a closer look at what’s ahead for the iPhone maker and why the growth is here to stay.
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Ongoing Transition To 5G Network To Give AAPL Stock A Boost
One of the key drivers in Apple stock growth would be the next-generation 5G mobile technology. Technology analyst Dan Ives from Wedbush said that “Apple has a ‘once in a decade’ opportunity over the next 12 to 18 months as we estimate roughly 350 million of Cupertino’s 950 million iPhones worldwide are in the window of an upgrade opportunity.”
Many experts believe the new 5G iPhone would be a game-changer and it will be a defining chapter for the world’s largest tech company. Apple is slated to launch iPhone 12 in October. The question is, how important is the iPhone 12 to Apple? Ives said that Wedbush believes that many on Wall Street “are underestimating the massive pent-up demand around this super cycle for Apple, which remains the opportunity for the bulls.”
Apple Services & Wearables Segment Continues To Outperform
Even though the novel coronavirus continues to persist in the second quarter, Apple was able to generate growth, with revenue that increased by 1%. For the fiscal third quarter, Apple produced a record, with revenue up 11% year over year, while earnings per share grew 18%. This came amid the strong performance among tech companies. And investors have certainly been piling into tech companies that benefited during the stay-at-home orders. These include companies with products and services related to remote work, cloud computing, music, and video streaming, and digital payments, among others.
That’s not to say when the pandemic is over, the services segment would drop. In fact, before the pandemic, services have already recorded strong growth. Wearables such as AirPods and Apple Watch have also recorded strong growth. They could see a higher number of unit sales in the next quarter.
The pandemic only served as a catalyst to boost AAPL stock higher when the hardware sales were recording slower growth. As a matter of fact, the pandemic actually played to Apple’s strengths. The company saw Apple Pay, Apple Music, and Apple TV+ and the App Store all performing better during the lockdown.
Is Apple Stock A Buy?
Apple is likely to see increasing retail demand for AAPL stock after the stock split. The company is able to leverage its massive user base to drive strong growth in its services and wearables segment. The highly anticipated first 5G iPhone will likely whet the appetite of iPhone stalwarts globally. These are some of the few areas investors might want to pay attention to see if AAPL can reach the $3 trillion mark in the near to medium term. With all these in mind, is it any surprise to say that Apple is still one of the best tech stocks to buy?