Apple’s stock price has risen 42% since January 1st, as it benefited from a recovering tech market and the company’s venture into spatial computing with its Vision Pro. One of the most promising parts of Apple’s business remains its growing services segment.
Dani Cook for The Motley Fool:
even without the growth prospects of the Vision Pro, Apple’s stock is too good to pass up. The company is home to leading market shares in multiple areas of consumer tech. Meanwhile, its immense brand loyalty with shoppers often leads to success in nearly any new market it enters.
Apple users seem intent on sticking with the company no matter what upgrades its competitors unveil. As a result, now is an excellent time to consider investing in this tech giant before its stock climbs any higher.
Here are three things about Apple that smart investors know.
1. It could take years for the Vision Pro to boost earnings
2. A booming services business: The good news for those concerned about the short-term prospects of the Vision Pro is that Apple’s growing services business is gradually allowing it to lean less on product sales. Digital subscription platforms like Apple TV+, Music, Fitness+, News+, and more have seen the company’s services business become its second-highest earning segment.
3. A better value than its competitors: Despite being home to the world’s highest market cap at $2.9 trillion, Apple’s stock is still a better value than most of its competitors… The company has the lowest price-to-earnings (P/E) ratio among fellow tech giants like Amazon, Microsoft, and Meta.
MacDailyNews Take: Apple stock remains significantly undervalued.
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