Since the 1980s, Apple has earned its place as the largest technology company in the world, being celebrated as a symbol of quality and innovation. With 2021 seeing the launch of new products including AR/VR headsets, a refreshed iMac, iPhone 13 and, if rumours are true, an iPhone SE Plus, the future continues to look bright for the tech titan, but how will this impact their stock in the coming years?
Apple (NASDAQ: APPL) shares are said to have increased over 400% in the last five years, outpricing Google, Microsoft, and Amazon.com. In the past year, shares are up by over 70% but according to RBC Capital Markets, it could be cryptocurrencies that continue to be a gamechanger in the market. Since PayPal announced it would confirm the exchange model and accept the purchase and sale of crypto directly through its platform, the company’s share price has climbed nearly 40%. CFO at Twitter, Neil Segal, has also spoken out recently on the potential that the social media platform could add crypto to its balance sheet – a clear sign of the intrigue, but also confidence, industry giants have in the market.
With the arrival of 5G network technology, the landscape is perfectly prepared for the widespread adoption of digital currencies, with fast connections for complicated transactions. If Apple were to make the move to accept digital assets as payments, this would benefit Apple users first and would have an immediate impact on the market, reminiscent of the ability of Elon Musk’s Twitter feed to send the price of Dogecoin spiraling in recent weeks. Huge companies (and their celebrity followers) can have an extraordinary impact on price, something that will likely continue to emerge in the coming decades.
Should You Invest?
With so much momentum behind technology in the financial services (FS) industry, buying tech stocks with spread betting is an interesting opportunity for investors. In recent years it’s been reported that Apple has a vested interest in blockchain technology, which enables the recording of digital assets, perhaps a sign of future investment in cryptocurrencies.
What are the experts saying?
WalletInvestor suggests that APPLE stock presents a good, profitable long-term investment. CNN Money and JPMorgan both list it as a ‘buy’, reaffirming that the market stands behind the company, perhaps due to an incredibly busy last twelve months for the tech industry.
While it’s safe to assume that Apple stock will continue to demonstrate good growth prospects, it’s also acknowledged that the current price with the recent increase is potentially above its value. With prices set to continue increasing in the next 3-5 years, there’s a lot yet to play out in terms of the impact of digital currencies on the market.
In the short term, Apple’s earnings are likely to continue to climb with new products, expansion into the services sector, and development of its AR business, offering a plethora of opportunities for those looking to get involved in the investment market.