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How to Buy Stock in Apple
By Kristopher Kane MONEY RESEARCH COLLECTIVE
Apple is an attractive investment for market veterans and novice traders alike, but the process can be confusing without prior experience and knowledge on how to buy stocks.
The market is complex, and it can be challenging to understand what factors affect the value of Apple stock. The following information on Apple as an investment, essential investing tips and best practices will help demystify things.
Table of contents
- An overview of Apple stock (AAPL)
- How to buy Apple stock
- Best practices for investing in Apple stock
- How has inflation affected Apple’s stocks?
- Are Apple stocks a good investment?
An overview of Apple stock (AAPL)
Apple (AAPL) is one of the largest companies in the world, with a market capitalization of nearly $2.5 trillion. It’s no surprise that many investors own Apple stock. It continues to be one of the most traded stocks in the world. Additionally, it’s a perennial market performer with a unique position on the market and broad brand loyalty.
What Apple’s latest earnings report discloses
Apple recently released its first-quarter 2023 earnings report, which showed sales for the holiday quarter were around 5% lower than in 2022. This is the first year-over-year sales decline since 2019 and comes on the heels of decreased demand across the consumer electronics sector due to the return to offices and schools.
Looking back on Apple’s stock splits
Apple has had five stock splits since the company went public. A stock split is when a company breaks up its shares so that the number of shares increases and the cost per share decreases. The most recent Apple stock split was a four-for-one in August 2020. This resulted in each shareholder receiving four shares for every original share owned. Prior to this was the company’s even more notable 2014 seven-for-one split, while all other stock splits have been conventional two-for-one splits.
Apple’s current competition
Apple’s biggest rivals in consumer electronics include companies such as Samsung, Google and Microsoft. Additionally, Lenovo, HP and Dell are competitors in the laptop segment.
For many years, Samsung has been one of Apple’s biggest competitors in the smartphone and smartwatch market. It offers a wide range of devices and is continuously innovating. Likewise, Google has been a major player in the tech industry, and its Android operating system is the biggest competitor to Apple’s iOS.
Google is coming after Apple’s market in other significant ways, with a wide range of devices and its own Google Fi cellular telephony service. Microsoft competes with a wide range of products rivaling Apple’s tablet and laptop lines.
How to buy Apple stock
Buying Apple stock is easy and accessible, provided you can get an account with an online broker. The procedure can be mystifying for first-timers. If you’re wondering how to get a broker, where to find the current price of Apple stock or a detailed look at how to buy stock in Apple, the following information is for you. Here’s a run-down of the process.
Choose a way to invest
Before buying Apple stock, you must choose a way to invest. Your options for investing include purchasing individual stocks, diversified exchange-traded funds (ETFs), managed mutual funds and index funds.
Individual stocks
You can buy individual stocks directly from the company or through a broker. This is the most straightforward method to invest in stocks but represents the highest exposure to risk among the techniques discussed here. While it may be the riskiest, this type of investment in Apple could also provide the highest potential return on investment.
Exchange-traded funds (ETFs)
ETFs are traded on stock exchanges and track a variety of securities, such as stocks or bonds. ETFs that track the performance of Apple stock can provide investors with exposure to similar returns without the risks associated with individual stock positions. Buying fractional shares can also be convenient for investors on a budget.
Mutual funds
Mutual funds are an option to manage stock market volatility. A fund manager facilitates these investment funds by pooling money from many investors to purchase a portfolio of securities. Mutual funds that invest in Apple stocks provide investors with diversified exposure to the stock but with much lower risk than portfolios based on individual stocks.
Index funds
Index funds track benchmark indices, such as the Standard and Poor’s 500 (S&P 500). Index funds that track the S&P 500 include Apple stock and provide investors with diversified exposure to the stock and the market.
Open a brokerage account
Once you have chosen a way to invest, open a brokerage account. You can open one with any of the major online brokers. Though the process is slightly different for each, you’ll need to supply proof of identity and a way to fund the account for stock purchases.
Decide how many shares you want to buy
Next, you’ll need to determine how many shares of Apple stock you want to buy. No single answer fits everyone when deciding how many shares to buy, but make sure you stay within your financial means.
As an investor, consider the following when making your decision:
- Your financial circumstances
- Your budget
- Recent Apple stock market performance
- Your investment goals
- Your risk tolerance
Also, do your research and consult a qualified financial advisor before making any investment decisions.
Purchase your Apple stocks
Buying shares of Apple stock is a regular service provided through your broker’s platform. Once you deposit funds into the account, you can buy Apple stocks at the current market price and put in orders to buy or sell the stock if prices reach preset amounts.
Your brokerage firm can help if you would rather buy Apple stock through a mutual fund or ETF. Contact Apple’s investor relations through Apple’s website if you wish to buy directly from the company through a direct stock purchase plan.
Keep an eye on your assets
You should check in on your investments every so often. Established or managed portfolios might be able to get away with a mid-year investment portfolio checkup. However, more engaged investors will want to make keeping track of their investments part of their routine.
Monitor the Apple stock chart, note changes in the stock price over time, and stay abreast of Apple stock forecast information and general market news. Follow online news sources, blogs and other online resources.
Keep track of details like Apple stock premarket price and how it compares to closing prices. Consider using a stock screener to find a stock with market performance that acts like Apple’s stock. This can help you find undervalued stocks and help you make better investment decisions. Many investors keep investing when stocks are down because buying a good performer at a bargain price is possible.
If you’re working with a budget or are skittish about placing all your investment funds into individual stock, consider investing in a mutual or ETF that focuses on Apple stock but includes other similar investments.
This can diversify your portfolio while exposing you to Apple stock’s performance. Speak with a financial advisor or investment professional for advice on monitoring your investments.
Best practices for investing in Apple stock
Not having a well-developed investment strategy is one of the most common mistakes investors make. When investing in Apple — or any stock — develop an investment plan tailored to your specific goals and consider your risk tolerance. A well-thought-out approach includes understanding the company’s performance, financial position, industry trends and competitive landscape.
Also, it’s essential to diversify your investments, set stop losses and pay attention to the news. Overall, practice patience and be aware of the potential for market volatility. Monitor the market and your investments and adjust your strategy accordingly, but a stock like Apple is typically considered a buy-and-hold stock.
Monitor Apple’s stock market performance
Monitor Apple’s stock market performance as well as the performance of its competitors. The best way to monitor the company’s financial performance is through a reliable financial news service, information published by trustworthy brokerages or a stock market tracking app.
Though some of these services may require a subscription fee, they provide real-time market intelligence on Apple’s performance. Or you can monitor Apple’s stock price and trends on its website or through its investor relations page.
Come up with an investment strategy
Though Apple stock has been a consistently recommended buy, it’s always good to determine the most advantageous time to enter any market.
To that end, research the stock by doing the following:
- Read the latest Apple stock news.
- Look for mention of the stock in popular outlets for investment advice.
- Spend some time reading shareholder reports and documents filed with the Securities and Exchange Commission (SEC)
- Compare the price of Apple stock today to a point in the future when you would consider selling.
Consider individual investment goals and objectives, such as focusing on capital appreciation or pursuing dividend income. Analyze and evaluate how Apple’s competitors are performing, the size and trending changes in their market share, and what effect their performance may have on Apple’s stock price.
Consider adding other investments to reduce risk in your portfolio. Set a buy-sell strategy based on entry and exit points for your investments. Also, rely on stop orders to limit losses.
How has inflation affected Apple’s stocks?
Of course, inflation affects the stock market, and it has affected the price of Apple stock over the years — both directly and indirectly. As the costs of goods and services increase, consumers have less money to spend on products and services, leading to lower revenue and profits for companies, especially in the consumer electronics sector.
But inflation has had an overall positive effect on Apple’s stock price history. As Apple is one of the most recognizable brands in the tech industry, it has a strong following due to effective branding and advertising campaigns.
Apple products stay relevant and in high demand regardless of inflationary pressures. Apple’s stock price is among the most resilient, as the company can increase the prices of its products when inflation rises.
Are Apple stocks a good investment?
Remember that investments come with risks. Anyone investing significant amounts of money in a single stock needs to do their research, only invest within their means and seek the services of a qualified investment advisor when investing in any asset.
That said, Apple stocks are considered an excellent long-term investment. The company is a large-cap stock with a strong track record of success, and its products remain in high demand. Apple’s stock price history and consistent ability to pay substantial dividends to shareholders make the stock an industry favorite.
Apple’s innovative products and services have been the driving force behind its success. The company has developed many products and services, such as the iPhone, iPad, Mac, Apple Watch and Apple TV. These products and services have been popular with customers and have helped Apple sustain its market leadership position despite unpredictable times.
Apple is one of the most recognizable and trusted brands in the world. Customers are willing to pay a premium for Apple’s products and services due to the perception of value in their quality and reliability.
These factors — strong financial performance, innovative products and services and a strong brand presence — help Apple maintain its market share and grow its revenue, making it an excellent stock.