Monday, November 16, 2015

Apple Inc. Stock Update


The iPhone making company is not expected to experience a massive growth in the total revenue generated for the full year, as compared to the previous year

Apple Inc and the strongest tech giant of all times, Alphabet have been compared on a lot of different platforms by the analysts of the industry. In a recent article published by the Motley Fool, it was seen that the software giant has proved itself in the course of the past decade that has made it good enough to be compared by the search engine giant on different levels. For the investors to know, the analysts have presented an analysis in which they have discussed the potentials both the companies have in the stock market and which one of the stocks the investors can opt for in the long term.
Even though Apple stock has been performing well as compared to the other tech companies in the industry, it has lately been failing to secure a stronger rating from the equity firms. Analysts are of the opinion that the stock seems to be at a much cheaper level if it gets compared to that of Alphabet. Currently, the price to earnings ratio that the iPhone makers are trading on is 13 whereas the average companies on the index are seen securing a higher than 19 ratio on a normal basis. This is something that is making the analysts believe that the giant could be getting undervalued in the market at some point.
On the other hand, Apple business did manage to amuse the investors by performing quite well in the last reported quarter of the year, in which it announced a growth rate of 22% for the sales of its products alone and the revenue turned out to be at $51.5 billion. As for the earnings that were made by the Mac producers per share, an increment was observed by 38% as compared to the same quarter of the previous year which is a jaw dropping rate for the EPS to grow.
However, things might not be as great for the giant by the end of the year, as the Wall Street Analysts are of the opinion that Apple products might only experience a growth of 3.6% in December not more than that, which is mainly due to the fact that the iPhone business has matured to a level on which sales are to decrease naturally. The expected revenue for the company for the full year of 2015 is to be reported in between figures of $75.5-77.5 billion as per the guidance made by the management. And this shows that the giant is not expected a lot of growth this year, as in the previous year it reported revenue of $74.6 billion.


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