Congratulations! $Apple(AAPL)$ is a $3 trillion company again, for the first time since August, a return of 1,500,000% on the IPO investment.
It is said that $Apple(AAPL)$ hitting $3 trillion again is an important indicator of the health of the tech sector and consumer demand for technology. It speaks to Apple's continued innovation and understanding of the market.
How will Apple develop next?
First, let’s take a look at the business:
Judging by the financial report data for Q3 (as of September), sales are down 1% year-over-year, marking the fourth consecutive quarter of decline. While iPhone sales increased by 3% in the last quarter, Mac sales fell by 34% and iPad sales by 10%.
Sales of services rose by 16%, offsetting the weakness in most hardware categories.
$Apple(AAPL)$ expects December quarter revenue to be flat year-over-year, missing Wall Street expectations of 5% growth.
Looking ahead to 2024, Apple investors will be watching for growth in iPhone demand, especially given increased competition in China, where Huawei has gained new traction, and continued growth in the company's services segment.
From a valuation level perspective:
Based on recent financial reports and stock prices, the company's current price-to-earnings (TTM) ratio is 30.7516, higher than the industry average of 30.49. At the end of 2022, the company had a P/E ratio of 21.9.
As for the price target for $Apple(AAPL)$:
Based on the 33 Wall Street analysts from TIPRANKS who have provided 12-month price targets for Apple in the last 3 months. The average price target is $202.73
let us see if the flag continues.
Comments
Apple, a brand that almost all the investors know well nowadays. Recently, Apple is back to the track of being a 3 Trillion Dollar company again, after being there for a while in the month of August this year.
As we know, Apple is less nnovative in its recent products launch but the sales remain strong despite of the earlier fact. The good thing is Apple does realise it.
Therefore, Apple is planning to release several new models, including a faster MacBook Air and two updated iPads, early next year to help combat a decline in sales of the devices.
The company has faced several quarters of sales decline for Macs and iPads, which together account for nearly 15% of its revenue, as sticky inflation and high borrowing costs force consumers to dial back non-essential purchases.
Apple gave a holiday-quarter sales forecast last month that was below Wall Street estimates due to weakness in demand for iPads and wearables. Meanwhile, its Mac business has been grappling with a wider slump in the personal computer market.
With the correct actions and countermeasures from the management team, I believe Apple can come out with something attractive in near recent and therefore can justify their valuation of the 3 Trillion company. For such, I am bullish for Apple for breaking new high and all of its suppliers or rivals in semiconductor field. $Apple(AAPL)$
How do you think? Leave your comments below ya guys.
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Based on recent financial reports and stock prices, the company's current price-to-earnings (TTM) ratio is 30.7516, higher than the industry average of 30.49. At the end of 2022, the company had a P/E ratio of 21.9.