Apple overview
Apple is a multinational technology company headquartered in California. It has emerged as the world’s most valuable firm thanks to the roaring success of products including the iPhone, iPad and iPod, which need no introduction. Alongside its wildly successful hardware products, its software includes iOS, iTunes and Safari, while it runs a broad range of services, from Apple TV to Apple Pay.
Apple is known as one of the “big five” tech companies, alongside Amazon, Alphabet (Google), Microsoft and Facebook. Steve Jobs founded the company along with Steve Wozniak and Ronald Payne back in April 1976. Jobs and Wozniak initially hired a team of computer designers working on a production line in Jobs’ garage. It flourished in the early 1980s but lost its way after Jobs and Wozniak left the business.
Apple swiftly returned to profitability after Jobs returned to the company as chief executive in September 1997. He launched the iMac and the iPod, opened a chain of Apple stores and embarked upon an ambitious acquisition drive. The real game-changer for Apple came in 2007when Jobs unveiled the iPhone at the Macworld Conference & Expo. It was met with huge critical acclaim, and it quickly blew rival devices out of the water.
The firm branched out into tablets and watches, while continually bolstering its software and services. Jobs sadly passed away in 2011, with Tim Cook taking over as chief executive. Apple has continued to enjoy immense growth over the past decade. In 2018, it became the first publicly-traded company to be worth more than $1 trillion, and then became the first to smash through the $2 trillion mark two years later.
Revenue reached $274.5 billion in 2020, with operating income of $66.3 billion and net income of $57.4 billion. In January 2021, it became the world’s most valuable company, with 147,000 full-time employees and 510 retail stores spread across the globe.
Historical performance of Apple stock
Apple went public on December 12, 1980, floating 4.6 million shares on the stock market at $22 per share. Jobs was aged 25 at the time, and he ended the day with a net worth of $217 million as the firm’s largest shareholder, while 40 Apple employees became instant millionaires.
Apple stock has split five times since then – at 2-for-1 on three occasions, then 7-for-1 in June 2014 and 4-for-1 in August 2020. Anyone that bought a share back in 1980 would therefore own 224 shares today. There now are around 16.8 billion shares outstanding in Apple due to the various splits over the years.
In percentage terms, Apple stock compounded at 18% per year from its IPO price to its value at the end of 2019, with splits taken into account. The share price then doubled between January 2020 and January 2021, when it reached a new all-time high.
Trading Apple CFDs
Apple CFDs allow you to speculate on whether the stock will go up or down in value. A CFD is a financial derivative, so you do not actually need to go through the rigmarole of buying, holding and selling Apple shares. You simply take out a contract with nextmarkets covering Apple’s share price over a specific period of time.
CFD stands for contract for difference. It means the buyer agrees to pay the seller the difference between Apple’s share price at the start of the contract and Apple’s share price at end of the contract. You can buy (go long) if you think Apple stock will increase in value, or sell (go short) if you think Apple will decrease in value. The more right you are, the higher the profit you earn. However, if you call it incorrectly, you will incur a loss, so it is important to conduct thorough research before executing a trade.
Trading Apple CFDs is simple and convenient at nextmarkets, and you will not be charged a commission on trades. Your first step will be to set up a free stock trading UK account by entering personal details and completing a KYC (know your customer process). When you have an account with the best stock broker UK, you can start to trade CFDs.
Head over to the “Markets” section of the site and navigate to shares, where you can buy Apple shares UK, buy Tesla shares UK, buy Apple shares UK and so on. Apple is understandably one of the most popular shares to trade. When you click on it, you will see a chart detailing AAPL’s recent performance. You can then choose to buy Apple shares UK (go long) or sell Apple shares (go short). The amount of contracts you buy or sell determines the size of the profit or loss you will be left with when you close the trade.
You can monitor your trade and close it whenever you like. You can also have multiple trades open at the same time, or hedge by going long and then going short further down the line. Trading gives you a great deal of flexibility compared to simply buying Apple shares UK.
Trading Apple CFDs
These are some of the key advantages you will enjoy when trading Apple CFDs:
- Leverage: You can borrow a certain amount of the money needed for the trade while depositing only a fraction of the amount in cash. This offers increased exposure to Apple CFDs and provides you with efficient use of your capital. It offers the potential for magnified profits and gearing opportunities, but it can also lead to magnified losses, so you need to be careful and only trade within your means.
- Free Tools: You can use tools such as a take profit order and a stop-loss order. The former instructs us to close your trade when you have achieved a certain level of profit, thus locking it in. The latter instructs us to close it at a specific point in order to mitigate further losses. It acts as a free insurance policy. These orders mean you do not need to spend all day glued to the screen.
- Flexibility: You can go long or short via CFDs. This allows you to benefit from Apple’s share price rising and falling, whereas you can only benefit from it rising if you buy Amazon shares UK in a traditional sense.
- Commission-Free: We offer commission-free trading, so you do not need to factor in the fees you would incur when buying Amazon shares and selling them at an online broker.
Predict price movements
Fundamental and technical analysis can help you work out whether Apple shares will increase or decrease in value. Fundamental analysis helps you work out if a stock is undervalued or overvalued. You attempt to measure its intrinsic value by analysing the relevant financial and economic factors, including the company’s price to earnings ratio, balance sheet, price to book value, interest rates, strategic initiatives, microeconomic indicators, the strength of its competitors and broader consumer patterns.
Anyone trying to work out if Apple’s share price will go up or down might like to consider upcoming announcements, such as financial results, the launch of a new iPhone, the findings of antitrust hearings and so on. These often have a bearing on the firm’s share price in the short-term.
Technical analysis focuses on the historical market data that is available on Apple stock, including trading volume and price. It incorporates quantitative analysis, behavioural economics and market psychology. You essentially use past trends in an effort to predict the future behaviour of the share price, using chart patterns and statistical indicators. It often involves candlestick formations, trendlines, bands and boxes. Many traders combine technical analysis with fundamental analysis to make predictions from a position of strength.
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