Is it worth buying shares now? Apphuh?

This is a very good result. In the entire history of this American icon, the worst day for an investment was January 26, 2021. If you bought then shares Apple for $1000, your account would have lost 16% today. Unprecedented. And that's why - does it still make sense to buy stocks today? AppDo you want to go shopping?

All global stocks were hit by the stock market crash in March 2020, but once the stock market crisis was averted thanks to central bank intervention, technology stocks shot to the stars. And that was the case Applu. Its shares rose from $59 to their peak of $139 on January 17, 2021. They have been underperforming since then. Its maximal values Apple left and today it sells for around $125 per share.

Pessimism in Applu

Pro many investors are stocks today Applu overpriced. The main reason is the long-standing skepticism about whether Apple can technologically keep ahead of strong competition from China. In recent years, it has become much stronger in marketing than in technology, and the question is how long users will be able to pay astronomical sums just to have the latest fashion hit from this manufacturer.

The second reason for pessimism in this stock is the geopolitical tension between the US and China. Apple could very easily get into trouble if the trade war were to escalate, it is dependent on China not only for production but also for sales. The Chinese market is becoming more and more important, and it will be no different in 2021. Last year, most countries in the world were in recession, with the exception of China.

 Reasons to buy stocks today Applu

Although the shares are trading near their maxDespite their low prices, there are reasons why they could sell for even more. Let's take a look at them together.

Small investors

Stocks Applu are extremely popular with retail investors. This was evident during the first wave of covid, when Robinhood investors put them among the TOP 10 most purchased stocks. The new administration of US President Joe Biden has approved a new support plan for $ 1,9 trillion. Part of this aid will go directly to retail investors, who are already looking to convert this state aid into stocks. Apple will surely be a popular title for small players again.

Capital equipment

Apple It doesn't pay a large dividend, with the quarterly dividend now being $0,2 per share, which represents an annualized yield of about 0,6%. The Magic AppHowever, lu is somewhere else. Apple has a huge financial reserve of $196 billion in cash. It does not use this money to pay dividends, but to buy back its own shares. As a result, the exchange rate Appwill not fall significantly in the coming years.

Moreover, it has Apple great opportunities and room for further investment. It is quite likely that in the coming years they will buy a promising startup that will provide the entire group with a technological lead and big profits for decades to come. Buy shares Applu also means a bet on the acquisition potential of the American hegemon. It is precisely the possibility of potential expansion Applu is the most compelling reason to buy stocks even during the current declines. So if you were to add to your Apple products, they would like to have some shares of this giant at home, currently there may be an interesting opportunity for purchase. 

To buy or not to buy. There are of course many reasons to make both decisions. Whatever you decide, always think carefully about your investment. Remember that you should never invest money that you cannot afford to lose. You can read more about how to invest in stocks and what to look out for when investing here.