Is Apple a Buy, Sell, or Hold in 2025?
Apple: (NASDAQ: AAPL ) It’s one of the world’s largest public companies, with a market capitalization of $3.7 trillion, and it continues to attract investor attention as it slowly moves into new areas of innovation, such as artificial intelligence (AI).
The technology stock easily outperformed S&P 500: 37% over the past three years, compared to an index gain of about 24% (as of this writing). However, given its already massive size, some investors will wonder if the giant has enough innovation to continue to generate impressive returns. So let’s take a look at buying, holding or selling Apple this year.
Apple offers investors the opportunity to drive some of the technology channels, such as (like AI) without the experience of some of the smaller stock price types.Apple is methodically introducing new features and services. It often takes a slower approach than some competitors, but ultimately reaps huge benefits from this approach.
For example, Apple launched several new services (Apple Arcade, Apple TV+, Apple News+ and Apple Card) in 2019. In the first nine months of 2024, its services segment generated $96 billion in sales.
However, skeptics have rightly pointed out that Apple hasn’t introduced a new must-have device with mass appeal in years.Adding to the case against buying Apple is that its stock is currently relatively expensive, trading at a forward price-to-earnings ratio of 33. .6 compared to the S&P 500’s forward ratio of 23.4.
I don’t think it’s a terrible idea to own Apple if you’re looking for a slow-growing tech giant that still has the potential to introduce new products and services, but you’re probably not missing out on too much potential right now if you choose not to buy the stock.
I already own some Apple stock, so I’ve given a lot of thought to holding it.While there may not be a compelling case for some investors to buy Apple right now, I think there’s one reason it’s worth keeping in your portfolio: artificial. intelligence.
The industry is in the early stages of the AI ​​era, and Apple may eventually take advantage of the technology. It recently introduced Apple Intelligence in its latest devices, a suite of tools and services that help users with a variety of perform tasks such as writing emails, summarizing notifications, and following up on their appointments.Apple’s AI can even delegate a user’s request to ChatGPT if they are unable to complete the request themselves.
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