Buy Apple Shares: Where And When To Do It
Published: October 15, 2020 by Valentina
More and more traders are interested in buying Apple shares and it would be strange if not! When we talk about Apple, we are talking about a company that has made the recent history of technology and whose share price has undergone a real surge over the years, until it became one of the companies with the most capitalization worldwide.
That’s why today we decided to deal with this and understand how to buy Apple shares, if it is worth it today, and all you need to know before trading on this American company.
Fortunately for you, the brokers that will allow you to trade on Apple shares are numerous. Think, for example, of eToro (official website), the global leader in copytrading.
Or to Plus500 (official site), one of the historic names in the online trading.
Or, again, to Trade.com (official site), another leader of the market that you can try, maybe by opening a demo account first.
Said that, let’s try to understand how to buy Apple shares with the best brokers. We will then explain in more detail if it is convenient to do that and much more!
Buy Apple shares with eToro
In this more “operational” part of the review, we will start by looking at how to buy Apple shares with eToro.
eToro is in fact one of the top world leaders in online trading and, we are sure, it could become your first choice, if you are looking for a professional operator, who can satisfy all your professional investment needs.
With an account easily to open (here on the official website) and many dedicated services, eToro will allow you to trade online on Apple shares with a few steps and with a constant customer support.
If you don’t feel like making your financial investment choices independently, you can always use the copytrading service of eToro, which will allow you to copy what the best traders on the market are doing.
Thanks to eToro’s copytrading, in fact, all you have to do is choose the traders that you want to copy. From then on, the broker will do exactly their operations with your portfolio, allowing you to seek profit on trading thanks to their expertise.
Buy Apple stock with Trade.com
In this review about the best brokers with which to buy Apple shares, we certainly should mention Trade.com (official website), which has become one of the most preferred choices among investors.
Trade.com offers everything you are searching for in a good online financial investment operator: An excellent trading platform, many training and assistance services, the professionalism of one of the global reference operators in the sector.
Of course – if you’re wondering – Trade.com also offers you the possibility to open a demo account, where you can invest without commitments and without risks!
Apple shares: Company decree
To understand what Apple is, we should try to understand its history. A successful path that has led this company, founded in 1976 by Steve Jobs and Steve Wozniak, to become a global leader in the world of computers and information technology (and beyond).
Since its foundation, despite going through ups and downs, Apple has inextricably linked its brand to real milestones in recent cultural and technological evolution.
For example, we can refer to Apple when we speak about Macintosh, or even iPod – which has revolutionized the world of portable music – and further to the iPhone – which has been the innovation in mobile telephony – and iPad – the tablet.
In short, a real “big one”, engaged in a growing number of sectors, and still able to attract new investors.
Considering that – as we just said – Apple has entered as a protagonist in numerous sectors of information technology, the number of competitors of this company is enormous.
For example, Apple’s main competitor in the mobile phone market is Samsung, leader in the number of devices produced. In third place, behind Apple, albeit with a fierce dynamic that could soon threaten the combination of Samsung – Apple, we find Huawei, followed by the brand new antagonist Xiaomi.
As far as computers are concerned, it is clear that the main competitor on the software side is Microsoft, with the company founded by Bill Gates which offers the leader of the operating systems, Windows, to be opposed to the OS used on Macs. But there also other companies like Adobe, that compete on the software side.
On the hardware side, there is obviously no shortage of competitors: From IBM to HP, the list is very long!
Should I buy Apple shares?
At this point, we want to ask one question: Is it worth to buy Apple shares now? Or is it better to wait?
In our opinion, there are excellent prospects based on these price levels and we want to summarize some of the reasons why you should consider whether it is actually worthwhile to include Apple in your portfolio.
Before proceeding further, we remind you that this is not an invitation to buy Apple shares and that any financial investment activity involves risks – even high – that you may not be able to bear.
Therefore, before purchasing any financial asset, try to understand whether or not your have a coherent strategy.
Said that, the global coronavirus epidemic and its likely negative impact on short-term sales is of course the main reason for the great decline in the Apple shares.
However, it is very likely that this “depressed” phase of Apple shares will not last much longer. Let’s try to find together some reason for encouragement!
The first reason that makes us rather optimistic about Apple’s share price development is its business.
One of the biggest concerns of investors in tech stocks, and especially those who sell tech hardware, is how the coronavirus pandemic will affect global supply chains and shipments.
Apple is certainly not free from these concerns, considering that it has a branched supply chain that extends to many countries, Asia and beyond. And, in fact, it is no coincidence that the company has already warned that it will not be able to respect its forecast accounts for the second quarter of the year.
Fortunately, however, Apple has become much more than a hardware company. Do you know, for example, that the second most important segment of this technology giant, after iPhone, is that of services?
This area, which includes revenue from digital sales and App Store subscriptions, advertising, and services such as iCloud, AppleCare, licenses, and more, is dragging Apple’s accounts to new shores and until the explosion of the pandemic, it has been booming, powered by a customer base that has exceeded 1.5 billion units at the end of 2019 – up more than 100 million compared to the end of 2018.
Service revenues increased by 17% year-on-year in the first quarter of fiscal 2020 (the fourth quarter of 2019), driven by double-digit growth in all geographic segments of the company. With an increasing number of people spending time at home in the midst of the coronavirus epidemic, it would not be surprising to see Apple’s service revenue grow right now!
Apple Watch, Apple AirPods and Apple Beats
A second reason that makes us look optimistically at Apple shares is that of wearable devices.
In short, even if the problems of Apple’s hardware supply chain during this pandemic will probably slow down production and temporarily damage sales, investors should not completely ignore the other Apple hardware segments. Even with the slowdown in the production and the closure of Apple retail stores in some key markets, in fact, there is still a category of products that could continue to see growth: wearables such as Apple Watch, AirPods, and Beats.
Apple’s wearables business is still in its infancy compared to other more established sectors of this company, and these products could continue to see double-digit sales growth on an annual basis even after being adversely affected by supply chain problems and from the closure of retail stores. Highlighting the segment’s rapid growth, wearable revenue increased by 44% year-on-year in the first fiscal quarter!
Although what is happening globally may lead to a drop in revenue in the second and third quarters of the year, this coronavirus epidemic is giving higher intrinsic value to the devices we use to connect to the Internet and, ultimately, to do our job, communicate with others, and enjoy some healthy digital entertainment.
When the coronavirus will be over and the economy recovers, Apple could therefore benefit from greater investments by consumers and companies in the technology we use every day. This could benefit iPhone, iPad and Mac sales.
Finally, as an additional element of Apple’s advantage, we should mention healthy balance sheets and satisfactory profitability, which become increasingly important in times of uncertainty. On this front, Apple stands out as a technology company ready to face any storm thanks to almost 100 billion dollars in net liquidity and thanks to consistent cash flow. The 12-month free cash flow was $ 64 billion, easily justifying Apple’s market capitalization of nearly $ 1 trillion before the pandemic.
What we said in this review must of course not imply that Apple’s road is destined to go up continuously.
In other words, traders who buy Apple shares today should be prepared to see the price of the stock drop further. However, there is also a good chance that in some time Apple shares will reach particularly interesting levels compared to today’s ones, thus rewarding those investors who today have chosen to enter the market with long positions.
Said this, we can only advise to open a trading account with one of the brokers that we have suggested. In this way, you will be able to experience first hand what we shared with you today and practice your online trading.
Of course, we also encourage you to let us know what you think by writing in the comments section below. Let’s use this opportunity to discuss about your investments in Apple shares… and not only!