Author

Topic: Should I Invest In Apple? A Few Pros and Cons (Read 274 times)

full member
Activity: 197
Merit: 100
Ye', Apple's a good bet

they've got about 200 billion sitting in the bank, who knows what they'll do with it (Apple car, anyone?)
newbie
Activity: 40
Merit: 0
Some may have missed on investing in Apple and with its continued rise, I've seen people ask about whether it's a good time to buy Apple or not.  With Apple near highs, the risk is much greater, but it's possible that there's room to grow.

Some pros:

  • Sales of products and services have increased with net sales at $53 billion per quarter.
  • Index funds have become popular in recent years because they have been outperforming actively managed funds. Because $AAPL is the largest percentage of the S&P 500 index, as more money pours into these index funds, I believe the funds will have to purchase a larger amount of $AAPL stock to mimic the index.  Index funds do impact markets if participants are willing to buy them with dollar-cost-averaging.

Some cons:

  • While Apple has grown in revenue in most regions, we believe China is a crucial market. This may be symptomatic of slowing growth in China. Any further decline in China revenue may cause lower revenue quarter over quarter. If China sneezes, everyone may catch a cold.
  • In order to pay for part of the CRP, $AAPL issued commercial paper and long-term bonds. $AAPL have increased their long term liabilities to $84 billion.

From should I invest in Apple?
Jump to: