Apple share (AAPL) Find Apple Inc. Report was hit again on May 9 like the rest market during the turbulent 2022 to date. The shares have sunk to low $150s from the high of $182 in early January, a drop of 16%, and then reverting to levels in September 2021.
It’s a bit optimistic to suggest that Apple has not already sunk in the manner it can. The stock has slid by more than 30% several times over the last few years. However, there are plenty of good reasons to consider purchasing AAPL at a discount.
Below, I’ll list some of them.
#1. Apple’s business continues to be strong
The market is one of the most important factors that has displayed many weaknesses in recent times. What is completely different are the economic fundamentals and the performance of companies individually.
From a macro-level perspective there are plenty of reasons to make investors worry. Inflation is still extremely high. The cycle of interest rate increases has just begun and no one (not not even the Federal Reserve) knows when it will come to an end. Signs of economic slowdown continue to mount across the globe — more evident in places like China, but still observable in the US.
If macroeconomic indicators begin to decline significantly and the macroeconomic outlook worsen, Apple may be impacted. But for the moment the Cupertino business has been an oasis of wealth.
The latest earnings report has proven that Apple is able to deliver steady growth, on top of amazing results for 2021. The demand for the iPhone which is currently in its second cycle of 5G with the highly-received iPhone 13. Its Mac is also a hot commodity due to its M1 Chip family enabled Apple make a name for itself other PC makers who have seen declining sales.
Sure that fiscal Q3 will be affected by supply chain issues and the Apple CEO Tim Cook and team believe could cut the equivalent of $8 billion in revenue in the current quarter. However, it’s difficult to come across a firm which has succeeded in “delivering the goods” as Apple has been doing recently.
#2. More AAPL sinks more, the more efficient
Let’s try a quick mental exercise: suppose the time traveler appeared in the past and offered you the winning lottery numbers but didn’t inform the exact date when these numbers were drawn, what should you choose to do? Do you want to play one ticket per week until you win the jackpot?
This is what I believe of the Cupertino huge. In the future I’m unable to identify exactly when Apple stocks will return to record highs, only to increase significantly from the top. I believe that this is the case due to the fact that Apple is still a very important tech company. According to some, “Apple is not going anywhere”.
If I’m highly skeptical that the trend for Apple shares is going up in the direction of the right but there are some bumps I would suggest to invest in AAPL in a time that the price is less expensive. This could be the moment between 15 to 20% below the all-time highs.
I’ve already put in the numbers before and have presented my results in the “best strategy” article. The data suggests that purchasing AAPL on any date has yielded excellent annual gains of 34% from now until 2021. If it was purchased with an upwards of 15% drawdown, similar to the one currently in place the gains have been even higher, at 40% annually.