Analysts expect earnings per share to grow about 9% this fiscal year and about 6% in 2023. The tech giant is expected to generate $392.5 billion in revenue this year, making Apple the world’s most valuable company with a market cap of $2.5 trillion.
The company makes a ton of money from its new line of iPhones as existing customers upgrade and some holdouts switch from Android devices. Apple also makes a ton of money from its lucrative services sector, iCloud subscriptions, Apple Music, Apple TV+ and other perks for his iPhone, iPad and Mac users.
ACM Funds Chief Investment Officer Jordan Kahn said: Kahn owns Apple with his ACM Dynamic Opportunity Fund.
Wedbush Securities analyst Daniel Ives pointed out in a report that Apple’s first 90 million iPhone 14 orders were roughly flat compared to iPhone 13 orders. So it’s clear that Apple expects its devices to sell even as consumer spending slows in general.
“This tells the story of the potential demand Apple anticipates for its next iPhone release. People haven’t upgraded their iPhones in over 3.5 years,” Ives added.
Apple also benefits from the fact that it’s a stock that’s loved not only by retail investors, but by Wall Street giants as well.
Apple is that rare beast and still exciting enough for a growth stock, but thanks to reasonable pricing, a propensity to buy back shares to boost earnings, and a steadily growing dividend, it’s a worthwhile investment. It is also attractive to investors.