|By Nathan Young|
Apple is a company that we all know and love for their phones and computers. However, there have been recent concerns that they are beginning to stall in terms of product development and rely to heavily on the iPhone. Certainly there has been some help along the way with Samsung and their phone issues along with the release of new MacBook Pro computers, but this is not an equation to a sustainable model. Let us take a look at their most recent numbers and decide if the company still has juice in them.
These numbers are for the first quarter of the 2017 fiscal year. The company posted all-time record quarterly revenue of $78.4 billion and all-time record quarterly earnings per diluted share of $3.36. The holiday quarter generated Apple’s highest quarterly revenue ever and broke multiple records. People love to criticize the company but with numbers like this, how can one argue. Certainly being the top dog they are under the microscope on every move, but they certainly know what they are doing as they continue to generate these healthy numbers.
Taking a look at the chat now, we can see that Apple gapped up on February 1st and has not looked back. It is completely understandable that companies can get into a lull and become stagnant, but all it takes is the last quarter Apple had to kick start the stock price. As people say, this company is a good investment and should not be traded. If they continue to surprise people and perform this well, it could be a welcomed addition to many portfolios. But as always, be sure to complete your own research to determine if this is a solid fit for you.
For a complete list of risks, you can take a look at the most recent 10-K report and that will also has a detailed explanation. There is one risk however, that you should be aware of before investing in Apple. The biggest risk in my opinion is that a large portion of their revenue comes from iPhone sales, which certainly is not a good thing. This could potentially be a large issue if they stop selling iPhones as well as they do, which in turn would hurt sales and revenue numbers, and then it would pull down the stock price. Be sure to keep a close eye on this if you decide to go forward with Apple.
Apple has been a constant and continues to be one for the short term. This has been the company many look to on different aspects of business. However, even Apple has their own set of potential issues and should be treated just like and other company. Do your research and determine if this is a good fit for you, and if you still have questions, consult an investing professional and they can point you in the right direction.