Wednesday, May 17, 2017

Should I Invest In Apple? A Few Pros and Cons

Some may have missed on investing in Apple and with its continued rise, I've seen people ask about whether it's a good time to buy Apple or not. With Apple near highs, the risk is much greater, but it's possible that there's room to grow.

Some pros:

  • Sales of products and services have increased with net sales at $53 billion per quarter.
  • Index funds have become popular in recent years because they have been outperforming actively managed funds. Because $AAPL is the largest percentage of the S&P 500 index, as more money pours into these index funds, I believe the funds will have to purchase a larger amount of $AAPL stock to mimic the index. Index funds do impact markets if participants are willing to buy them with dollar-cost-averaging.

Some cons:

  • While Apple has grown in revenue in most regions, we believe China is a crucial market. This may be symptomatic of slowing growth in China. Any further decline in China revenue may cause lower revenue quarter over quarter. If China sneezes, everyone may catch a cold.
  • In order to pay for part of the CRP, $AAPL issued commercial paper and long-term bonds. $AAPL have increased their long term liabilities to $84 billion.

Full article: Should I Invest In Apple?.



Submitted May 17, 2017 at 07:43AM by fintekneeks http://ift.tt/2qrSlj5

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