When it comes to the stock market listings, Apple is king, with market capitalization worth US$2.843 trillion as of writing this piece. This American company is a multinational technology company specializing in consumer electronics, computer software, and online services. And it’s by far the most significant information technology company worldwide.
So are you ready for Apple’s stock forecast ahead of 2022? Stick around to find out as we unravel “Apple stock price analysis and predictions ahead of 2022.
Apple was first founded in 1976 by co-founders Steve Jobs, Steve Wozniak, and Ronald Wayne to build and sell Wozniak’s Apple personal computer. Jobs and Wozniak brought it about as Apple Computer, Incorporated in 1977, and sales of its computers, among them the Apple II, grew rather quickly. It became more prevalent in 1980, after an instant financial success.
Apple first joined the stock market on December 12, 1980, at $22.00 per share. The stock has split five times since its initial public offering, so on a split-adjusted basis, the initial public offering share price was worth US$.10. Today, it is among the leading stock holding companies in the world. During the early quarter of 2021, Apple suffered a shaky start; despite that, it recovered flawlessly, reaping more than a 25% increase. What’s more?
Apple depicted a major comeback regardless of supply chain challenges that disrupted its sales in the last quarter of the year.
Whatever the case may be, investors have continually displayed their loyalty, commitment, and confidence in the tech-savvy company Apple.
Shares in Apple also spiked during the fourth quarter of 2021, bringing its stocks to a much higher tempo in October during the flash of its new iPhone 13 and Pro Max. This brought smiles to the faces of Apple investors and gave them reasons to celebrate.
Apple has become an expert at monopolizing and reshaping the consumer tech markets in which it operates wonderfully.
With their latest display phone, the iPhone 13, witnessing a plugged demand that surpasses its supply, the tech company hasn’t been able to make sufficient iPhones to meet the market as component shortages and the pandemic imposed lock-downs paralyzed production.
That said, this may result in an even higher iPhone payload in 2022 when the supply chain heightens, thus proportionally stirring a rise in Apple’s stock price along with the streak.
Would that be the case in 2022? Let’s find out!
How Apple Stock Price Graph Looks Like
Apple stock price not long ago hit an all-time high in November 2021. This means the company will likely surge another 25% increase the following year.
Could this also be a logical possibility next year, 2022?
Knowledge is power! So let’s keep on finding out!
The iPhone is Apple’s most sought-after product, and it generated approximately a US$192 billion cash flow for the company in 2021, accounting for 52% of its total US$365.8 billion earnings.
Contrary to the many success stories, there are buzzes that Apple is likely to displace customers because of its inability to meet the demands of the growing market.
Another major challenge Apple currently faces is its inability to satisfy the iPhone 13 enthusiasts until February of 2022. The long-lasting times and uncertainties are reportedly causing buyers to put off their interest in iPhone 13 purchases because the phone will be nearly half a year old by the time it will be readily available for purchase in February of 2022.
If you look critically at the situation at hand, there might be a drop in Apple’s stock value because customers may let off the idea of purchasing the iPhone 13 and instead rush for the 2022 models. As such, iPhone income could take a hit in the near term and weigh on the company’s monetary growth and stock price in the early phase of 2022.
With this future outlook, investors may panic, but the truth is this possible short-term challenge may be long gone before they even realize it. Their stock traders shouldn’t worry, even if iPhone deals aren’t as great as expected in the early phase of 2022 before problems out of control, keep in mind the gigantic growth cycle that’s driving Apple’s progress.
Can Apple Stock Price Still Go High?
During the third quarter of 2021, Apple sold out over 50 million iPhones, higher than any other year. The company transmitted this stunning improvement within a period when the overall smartphone market contracted 6.7% annually.
Apple users are expected to grow, and ultimately the stock will regain its talisman once challenges are out of the way in 2022. The tech giant Apple stock could climb higher as it is toiling on more products to precipitate its growth in 2022 and beyond.
Apple’s 2022 valuation multiple may need to intensify to 32.8 times for the stock to climb 25% from where it is now to reach $200 apiece by December 2022.
History does not always reiterate, but it more of the time does. From that level of sentiment, Apple’s 25% upgrade in 12 months appears a little more controversial, considering that AAPL presently stands at an all-time high.
A stake in Apple stock tends to give the biggest return in the next 12 months if shares are purchased during an abrupt drawdown. On average, one-year gains have been practically 50% when the stock was bought after a 30%-plus decline from the top. That’s why it is perhaps a good suggestion to buy the stock in case of a plunge, as the near-term challenges could finally make way for long-term gains.
It’s essential to keep in mind that how much one pays to own the shares is a significant factor in the success of any investment, and this is why valuation analysis is so critical. You can find out more from other Experts on Trefis.
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