From Nasdaq:

Apple has become the world’s most valuable public company with a market capitalization of nearly $3 trillion. Despite the slump in smartphone sales, Apple is still a cash cow, with revenue of $89.5 billion in the fourth quarter of 2023. Brighter days are ahead, as Morgan Stanley and Goldman Sachs predict a rebound in smartphone sales in 2024.

Apple is becoming less reliant on the iPhone as its services segment continues to grow. Services are generally higher-margin businesses and provide more reliable and recurring revenue through subscriptions, creating a nice ecosystem of subscription-based and pay-as-you-go services.

Some investors argue that Apple’s stock is overvalued, but when considering price-to-earnings and price-to-sales ratios, Apple doesn’t appear overvalued. Even if Apple’s current valuation seems high, long-term investors shouldn’t be deterred. Dollar-cost averaging is a good strategy for entering the stock. Apple has plenty of growth opportunities, making it a comfortable long-term investment.



Read more: Is Apple Stock a Buy Now?