Introduction
Apple Inc. is one of the largest consumer electronics and technological companies in the world, with an approximate global market cap of 2.96 trillion dollars.
Apple stock is significant to institutional and retail investors because it has withstood countless bear markets and also typically has reasonable bull market runs. However, it’s essential to understand why investors buy AAPL and if it could be a good stock for you.
Highlights and Key Takeaways
- Apple has a market cap of about 2.96 trillion dollars, which is higher than most big technological companies worldwide.
- Apple runs a successful business model that factors in simplicity, thoughtful design, and research.
- AAPL stock may owe some of its success in the market to Apple’s luxurious outlook and high customer loyalty.
- Before buying AAPL, check for the Apple stock price on eToro and learn to read stock charts to understand your stock performance.
Understanding Apple as an Investment
Understanding Apple as an investment requires a comprehensive analysis of its performance, financials, and market trends. As one of the largest and most valuable companies globally, Apple offers the potential for both long-term growth and stability. Exploring its past and present can inform strategic investment decisions.
Why Invest in Apple?
With a market cap of over $2.5 trillion, Apple is one of the most valuable companies in the world. In stock trading, market capitalization simply means the value of a company traded on the market. So, a high market cap like Apple’s translates to a more stable market for any investment portfolio since they carry less risk.
AAPL’s success in the stock market is due to a series of factors, including the company’s innovative business model. They focus on simplicity, thoughtful design, and research for the best results. Apple also prices and presents its products as a luxury, making them appear superior to competitors.
Apple capitalizes on its ecosystem of devices to lock in customers and boost overall sales and loyalty. This ecosystem works with the following:
- MacBooks
- iPads
- iPhones
- HomePods
- AirPods
- Apple Watches
- AirTags and more
“If you buy a product or service, consider buying the company’s stock. Just got a new iPhone? Buy 10 shares of Apple AAPL. Just do your research first to make sure the company’s stock is a good investment – Karl Kaufman: market analyst, investor and author of the book “The Ultimate Profit Playbook”
Risks Associated With Investing in Apple
Even though Apple’s stock strongly appreciates and has a good tendency for continuous growth, there are significant risks to consider. One of those risks is a reduction in their smartphone’s market growth, which can significantly affect the stock price. This is because over half of Apple’s revenue is from their iPhones.
Another significant risk for Apple stock is the U.S.-China tensions. Since Apple is one of the most popular U.S. brands and China accounted for 19% of Apple’s revenue in 2022, the current political tension may cripple Apple’s stock significantly. There have also been reports from China regarding security incidents relating to using iPhones in the country.
Getting Started With eToro
Getting started with eToro is the gateway to a world of online trading and investing opportunities. With its user-friendly platform and innovative features, eToro makes it easy for beginners and experienced investors alike to access a diverse range of financial markets. Start your investing journey with eToro today.
Creating an Account on eToro
Getting started with eToro is the gateway to a world of online trading and investing opportunities. With its user-friendly platform and innovative features, eToro makes it easy for beginners and experienced investors alike to access a diverse range of financial markets. Start your investing journey with eToro today.
To create an account on eToro for buying $AAPL, follow these steps:
- Step 1: Go to eToro’s website and click the “Join Now” button.
- Step 2: Fill in your username, email address, and password. You can also sign in using Google or Facebook.
- Step 3: Read eToro’s Terms and Conditions, Cookie Policy, and Privacy Policy. Check the necessary boxes to accept them.
- Step 4: Click “Create Account”.
- Step 5: Check inbox and verify email address.
Funding Your eToro Account
To fund your eToro account, follow these steps:
- Step 1: Log in to your eToro account.
- Step 2: Click “Deposit Funds”.
- Step 3: Enter the amount you want to deposit and choose a currency.
- Step 4: Select a preferred deposit method. You can choose between eToro Money and Credit/Debit Cards
How To Buy Apple Stock on eToro
Buying Apple stock on eToro is a simple and straightforward process. With eToro’s intuitive platform, you can go to the stock market section, search for Apple, and view real-time data on its performance. By making informed decisions and executing trades, you can easily invest in Apple stock through eToro.
Searching for Apple Stock on eToro
eToro offers around 3,000 stocks. To find the Apple stock (AAPL), you can use two methods – the search bar or the Discover section. To search for AAPL on the search bar, go to the web version of eToro and type the name of the “APPLE” or “AAPL.”
You can click on ‘Discover’ if you want to find a stock to invest in based on certain criteria such as trending stocks, daily movers, analysts’ pick, etc. You will also get to see other stocks that fall under the same category as AAPL.
Follow these steps to search for the stock using this section:
- Step 1: Go to the Discover page on eToro.
- Step 2: Among the different market options to invest in, click “Stocks.”
- Step 3: View custom categories by using filters. This will help you know where $AAPL falls in. Some of the custom categories available are Daily Movers, Trending Stocks, Market Analysis, Popular Picks, Stock-based Portfolios, and Equity-focused.
- Step 4: Select $AAPL based on any category it falls in.
Placing a Stock Order
Once you select $AAPL, you can see the Apple stock price on eToro. Click the “Trade” button and specify the trade size by choosing a dollar amount. You can also select the price for stop loss and take profit orders to strategize trades better.
For leverage, choose X1; which means that you are using a leverage of 1:1. In other words, you are not leveraging your trade; that is, you are not borrowing funds from the broker. If you choose another option such as X5, it means that you are using a leverage of 1:5; so, your order will be processed as AAPL CFD and not real AAPL stock. Trading AAPL Contract for Difference (CFD) means that you are simply speculating on the market movement of AAPL and not buying AAPL equity stocks.
Once you complete the dialog and make the necessary selections, click the “Buy” button to place your order to the market.
When placing orders, note that limit orders may take longer to execute. This is because you’re setting the highest price you want to buy shares, and your order falls through only if the market trades at that price or lower. On the other hand, market orders don’t take too long since you’re allowing the broker to bring the best price available at that time.
Monitoring Your Investment
Monitoring your investment is a crucial aspect of successful investing. It involves tracking the performance of your investments, assessing potential risks, and making informed decisions. By regularly monitoring your portfolio, you can adapt to changing market conditions and achieve your financial goals.
Understanding Stock Performance
Before investing in $AAPL on eToro, you should learn to understand stock performance by reading stock charts and analyzing financial reports. Every stock chart should show the stock’s current price, historical highs and lows, and available trading volume.
On the stock chart’s x-axis (horizontal axis), you can see periods of stocks, while the y-axis (vertical axis) tracks prices. If it’s a bar graph, it majorly follows trading volume at any set period. Most investors look out for big spikes in trading volume as it shows most shares are available to trade, and the additional liquidity may result in tight bid-ask spreads.
When To Sell Your Stock
You shouldn’t keep stock for a lifetime, especially when you’ve reached your investment goal. You can also sell your stock if the following happens:
- There’s a significant change in the company’s fundamental beliefs or business model.
- You initially made an impulsive decision to buy the stock without reviewing the company’s background, price history, etc.
- When there’s market news that may seem to take a permanently negative toll on the company’s stock price.
How To Invest in Apple with Funds
Apart from buying Apple stock, the other alternatives to investing in Apple are through index funds and exchange-traded funds (ETFs) that own Apple shares. Some of these mutual fund holders include:
- Vanguard Total Stock Market Index Fund
- Vanguard 500 Index Fund
- SPDR S&P 500 ETF TRUST
- Fidelity 500 Index Fund
To invest using the index funds and ETFs that own Apple shares, you also need to register with an appropriate online brokerage account.
Conclusion
Stocks can be a precious part of your investment portfolio. Based on the Apple stock price on eToro and its historical highs and lows, institutional and retail investors always find it stable and reliable. Apple stock also has one of the highest market caps among other big technolocal companies. However, before you buy AAPL, remember to learn how to monitor stock performance, so that you will know the right time to sell.
FAQ
How Do I Buy Apple Shares on eToro?
To buy Apple shares on eToro, create an account, make a deposit into the account, and search for AAPL. Once you find the stock, go ahead and place an order by clicking the “buy” button.
Does eToro Have Apple Stock?
Yes, eToro has Apple Stock. You can find it by searching directly on the website or using the Discover section to review available stocks manually.
Is It Safe To Use eToro?
eToro is a safe multi-asset brokerage company with over 15 years of experience in financial markets. They have deployed modern security technologies such as SSL encryption, and they are regulated by tier-1 regulators like CySEC, FCA, and ASIC.
Do I Actually Own Stocks on eToro?
When you buy unleveraged stocks like Apple (AAPL) on eToro, you own it. All stocks or assets are purchased in your name via the APEX Clearing Corporation.
What is the Best Stock To Buy Right Now?
AAPL remains one of the best stocks to buy due to its high market cap and stability. However, other great options to consider are NVIDIA (NVDA) and Amazon.com (AMZN).
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