Why I Like the Apple Stock - Essay Sample

Introduction

Apple (AAPL) is a high-quality stock which provides growth and income opportunities for investors. I like the Apple stock for several reasons. Firstly, Apple is a very innovative, profitable and dominant firm with a strong brand loyalty which creates extreme demand for each of the products it launches. The firm is known for the iPhone which is the hub of the firm's cash machine that drives customers to purchase other products. However, Apple has since grown other segments transforming from hardware to a service business a shift that has diversified its income lines leading to increased revenues. I love the firm's products and would pay a premium for their merchandise.Secondly, the firm is now venturing into other areas such as the financial services through Apple Pay and Apple cash. Apple pay may render physical credit cards obsolete. Just like it did with music, the firm has the capacity to transform financial services. Additionally, the firm has ventured into healthcare through its initiative of providing individuals with their health information and also improving service delivery in hospitals. Apple's products such as the apple watch, iPhone, health app, and kit are now enabling patients to record and share their health data with care teams (Apple,2018). Another technology that the firm is working on is that of the self-driving car. Such inventions give the firm a great future by making it a technology conglomerate, therefore, diversifying from being a maker and seller of phones. The venturing in these areas will only serve to increase the demand for Apple's product and hence continued growth.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Finally, Apple's performance has been impressive not only growing but managing to beat expectations. Over the past four years, revenue grew by 25% from $182 billion to 229$ while the net income increased from $39 billion to $48 billion (Yahoo Finance, 2018). Similarly, the earnings per share present an increasing trend over the four years from $6.45 in 2014 to $9.21 in 2017. Increasing earnings per share continue to enhance the value of the stock since any investor will pay more for higher profits. Apple's dividend payments have also increased from $1.37 to $2.46 therefore continuously increasing the value of the stock.

Conclusion

In conclusion, Apple has experienced incredible success from its innovative products, brand recognition, and large consumer base. The firm continues to launch innovative products regularly with increased demand from its loyal customers who are willing to pay a premium. Consequently, revenues and earnings have been growing thereby enhancing performance and ultimately the stock's value. The firm's consistent payment of dividends has a positive effect on Apple's value and share price. Subsequently, the sky is the limit for Apple stock.

References

Apple. (2018). Apple healthcare. Retrieved from https://www.apple.com/healthcare/

Yahoo Finance. (2018). Apple financials. Retrieved from https://finance.yahoo.com/quote/AAPL/financials?p=AAPL&guccounter=1