Apple (AAPL) is a multinational company that builds and sells computer software, mobile devices, and online services. Headquartered in Cupertino, California, the company is among the Big Four Tech together with Alphabet (GOOGL), Facebook (FB) and Amazon (AMZN).
Founded in 1976 by Steve Wozniak and Steve Jobs, Apple became the first publicly-traded company to reach a trillion-dollar valuation. For a company that nearly went bankrupt in the 1990s, it now has a market cap bigger than the GDP of most countries.
Consumers worldwide trust Apple and that is why investors – experienced and beginners – are interested in buying Apple stock. Want to become an Apple shareholder?
Keep reading!
What are Stocks?
A stock is an investment type that represents a share in a company. Also referred to as equity or shares, it’s a type of security that gives the shareholders a share of ownership in a company.
Shareholders share in the company profits. Companies issue stocks as a way of raising capital to invest and grow their businesses. They do so by selling their stock through a stock market exchange such as the New York Stock Exchange.
Apart from providing a platform for trading stocks, stock exchange markets also track the supply and demand of company stocks. This affects the price of individual stocks. That is why investors need to diversify.
How Apple Stock Has Been Performing This Year
In the first half of 2019, Apple Inc shares closed at $197.05. With a dividend yield of 1.51% and a P/E ratio of 17.18, Apple shares are reasonably priced. As the maker of iPhones, iPads, and provider of online services such as iCloud, Apple reported its earnings on June 30th, 2019.
The reported earnings were above expectations and the company’s revenue experienced growth. In fact, Apple’s stock rose by more than 4% after-hours trading. What this suggested was that Apple products are stabilizing. The company declared a cash dividend of $0.77 per share.
Compared to a year ago quarter, the company’s revenue went up by 1% while earnings per share went down by 7%. Apple CEO Tim Cook attributed the growth to great services, wearables sales and significant progress on the iPhone.
The company spent $17 billion on share buybacks and paid out $3.6 billion in dividends during the quarter. From the share buybacks, the company bought close to 88 million shares. This is part of the company’s $75 billion repurchase plan.
In 2019, Apple’s stock has been strong with a gain of 29.5% and since its January 3rd, 2019 low, it has been a bull market. Since May 8th, the shares have been above a golden cross. During this time, the 50-day moving average rose higher than the 200-day moving average. This was a clear indication of high prices ahead.
On June 28th, 2019, Apple stock closed at $197.92 while in July, the monthly value level was $145.02. Looking at the weekly chart for Apple, it is positive. The stock is above its five-week moving average of $195.03.
Apple Acquisition
In 2019, Apple made its largest acquisition by buying Intel’s modem division for $1 billion. Apple CEO Tim Cook said, “This is our second-largest acquisition and our largest ever by staff count.” The modem division designs and builds semiconductor components commonly used in cellular networks.
Although the company signed a deal with Qualcomm to buy smartphone components, this acquisition was strategic. Simply put, it will enable Apple to own and control technologies behind the products they make.
It is also worth noting that iPhones sales declined by 12% compared to 2018 which is a sign that the device has reached maturity.
Still interested in buying Apple stock?
Read on!
Step by Step Guide to Buying Apple Stock
Buying stock can be exciting for beginners. To build wealth and grow your investment portfolio, take a long-term perspective. You should also consider taking advantage of dollar-cost averaging if you believe in the stock for the long term.
In this post, we take you through the step by step guide to buying Apple stock.
Choosing Your Brokerage
If you are new to investing, the first thing before investing your hard-earned dollars is to choose the right brokerage firm. Picking the best online broker is not so different from picking a stock. It starts with knowing who are the best brokerage firms out there.
To help you with this, here are the three best brokerages.
1. TD Ameritrade
TD Ameritrade is an online broker that offers a trading platform for investors to trade financial assets such as stocks, futures, and options. Founded in 1975, the broker has been empowering investors by helping them take control of their financial lives. How? By delivering exceptional services to help investors pursue their goals.
In the 1980s, the company pioneered lots of leveraging technology designed to make investing fast and efficient. Such technologies include touch-tone phone trading and online trading. Today, the broker offers trading via its powerful platforms that include desktop, web, and mobile.
Why choose TD Ameritrade?
- Experienced and licensed reps
- One on one support
- Trade commission-free for 60 days
- Intuitive and powerful trading tools – desktop, mobile and web
- Supports different financial instruments including common and preferred stocks
- $6.95 flat-rate commission on equity trades
Thanks to education resources hosted at TD Ameritrade, investors can learn and make informed investing decisions.
2. Interactive Brokers
As a US-based brokerage firm, Interactive Brokers LLC operates one of the largest electronic platforms by daily average revenue trades. Founded by its Chairman and CEO Thomas Petterffy more than 44 years ago, the firm has grown to have over $7 billion in equity capital. As one of the premier securities firms, Interactive Brokers conducts its businesses in over 125 markets.
Together with its affiliates, the firm executes more than 828,000 trades a day. Headquartered in Greenwich, Connecticut, the firm offers desktop, mobile, and web trading platforms.
These platforms enable investors and active traders to trade multiple financial instruments and access a library of tools and layouts for total customization.
Why Choose Interactive Brokers
- Higher revenue and lower costs
- Global access
- Premium trading technology
- On-demand learning
- Top-notch customer support
Thanks to Interactive Brokers LLC risk management technology, you can manage your risk well in a dynamic market.
3. Webull
Based in New York City, Webull is a broker that offers exciting and useful tools for trading and making an informed financial decision. As a registered broker with the SEC, the firm offers access to real-time market data, news and analysis tools. That means you can build your portfolio with advanced order types such as OTOCO and OTO.
The brokerage firm provides desktop, web and mobile applications.
Why choose Webull
- Easy to use, fast and secure
- Free trading tools with free-market data
- Access to mobile, web and desktop trading apps
- Account protection
- Zero commission trading
- Member of FINRA and SIPC
Webull prides itself in continuously improving its platform.
Opening a Brokerage Account
To invest your hard-earned dollars in Apple stock, you have to open a brokerage account. While it may sound difficult, it is quite easy to set up. In fact, it takes less than 15 minutes to do so. Start by selecting one of the brokerage firms above.
Once you identify a broker who meets your needs best, click on sign up. Fill in your information and submit the registration form. Sign in your email and verify your account. If additional documents are needed for verification, follow the instructions.
In case you are stuck, contact the support team. If your account is verified, you are ready to buy Apple stock. Remember, you may be required to make an opening deposit. This amount varies with the brokerage firm.
How to Buy Stock in Apple
Now that you have funded your brokerage account, how much are you willing to invest? As a beginner, we recommend investing only what you can afford to lose. To do so, check the current price of Apple stock, and consider your investment strategy.
To buy Apple stock, search using Apple’s trading ticker: AAPL. Choose between a market and limit order. A market order enables you to buy the stock at the current price while a limit order offers the option to choose the price you are willing to buy.
If you have completed the steps above, congratulations. You are now a shareholder of Apple stock.
Buying Stock as a Beginner
If you are new to investing, we recommend seeking expert advice. Not only will this help you grow your portfolio but you can transform your financial situation. This calls for the help financial advisors. Top brokerage firms offer this service. To get started, contact the support team.
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