Can Apple Stock Continue Its Good Run

Can Apple Stock Continue Its Good Run by Emily Clark last updated on February 08, 2022

It is widely discussed whether Apple stock can continue its good run as it has been doing in recent years. In the middle of 2021, its stock was on fire. The July to September period witnessed a historical outperformance with the upside pressure on iPhone 12 series volume.

Apple shares jumped up 13 per cent in the first half of 2021, and in late April, it led to its record intraday high of $144. In the second quarter of 2021 that ended March 28, the iPhone maker announced record revenue of $89.6 billion, and the figure was up by 54 per cent year over year. The company's quarterly earnings per diluted share of $1.40 were 67 per cent of the quarterly revenue.

Apple CEO Tim Cook then stated that consumers are optimistic and feel better days are ahead. The company believes in innovation across its product lineup. It is focusing on helping its team and communities to emerge from the Coronavirus pandemic to a better world. He added that the company is proud of the quarter performance that witnessed strong double-digit growth in product categories. Apple generated an operating cash flow of $24 billion while the returns to the shareholders in the quarter were about $23 billion. The team is confident about the future, and significant investments would be made further to support long-term plans.

The cash dividend declared by the board of directors was $0.22 per share of the common stock, and this was an increase of 7 per cent. Apple paid the dividend on May 13.

Apple Inc. Overview

Apple specialises in computer software, consumer electronics and online services. It is based in California, United States. It is well-known as the largest information technology company for revenue that totalled $365.8 billion in 2021. It is also credited as the most valuable company in the world.

Apple is the fourth-largest smartphone manufacturer and PC vendor globally. It is placed in the bouquet of the Big Five American IT companies. The companies included are Amazon, Meta (Facebook), Alphabet (Google) and Microsoft.

The company was founded by Steve Jobs, Ronald Wayne and Steve Wozniak in 1976 to develop the Apple I personal computer. It was incorporated as Apple Computer, Inc. a year later and went public in 1980.

The iPod Era

Apple introduced the innovative iPod, a portable digital music player, in 2001. It was a great hit, and by 2015, about 390 million units were shipped.

The iPhone Era

The next giant leap was the iPhone, which was a convergence of an Internet-enabled smartphone as well as iPod. It was launched in 2007 in 4GB and 8GB versions. A year later, the company introduced a 16GB storage version.

Over the years, it enhanced the device, and today its product portfolio includes iPhone 13, the thirteenth generation.

The iPad Era

Apple is known for innovation, and it was the first company to launch a tablet device, the iPad, in 2010. The multi-touch device made reading e-books and newspapers easy. Watching videos and photos on a larger screen was lovable. The 9.7-inch screen enhanced the user experience.

Apple Watch, Apple TV, HomePod

The Apple Watch, Apple TV, and HomePod are some more innovative devices that added to the company's success story. These products revolutionised the wristwatch and television segments. Apple customers are loyal and devoted to the brand. Many states that Apple is a cause for them and not just a company. In 2008, Fortune magazine named it as the most admired company in the US.

Finance

The revenue and net income of Apple in 2020 were $274 billion and $57 billion, respectively. In 2019, the two figures were $260 billion and $55 billion, respectively. Today, its total employee strength across the world is about 147,000.

Can Apple Stock Continue Its Good Run Verdict

Apple is the largest information technology company globally for revenue and total assets. It is simultaneously the second-largest mobile phone manufacturer in the world. Samsung is in the first place. It was ranked fourth in the list of 2018 Fortune 500 as the largest US corporation by total revenue.

This article tried to rationalise why it is believed that Apple stock may continue to grow based on its performance in the past years. The company believes in innovation, and each year it offers a new generation of iPhone.