From Nasdaq, Inc.:

Apple (NASDAQ: AAPL) has seen its shares climb 817% in the last decade, with a 48% increase in 2023 alone. However, there are a few things to consider before investing in this FAANG stock for 2024.

Despite selling a variety of hardware products, over 50% of Apple’s revenue comes from the iPhone, which accounts for about 80% of the industry’s operating income due to its pricing power.

Apple’s services segment has been growing faster than its products, representing 22% of overall sales and carrying a stellar gross margin of 71%.

The company has been aggressively buying back shares, reducing its outstanding share count by 21% in the last five years.

The stock is currently trading at a price-to-earnings ratio of 29.8, significantly higher than Apple’s trailing-10-year average of 20.8. This suggests an expensive valuation, which should give investors pause before buying the stock.



Read more: 4 Things You Need to Know Before You Rush to Buy Apple Stock in 2024