Apple Share Forecast November 2021 – Time to Buy AAPL?
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Shares of tech giant Apple (NASDAQ: AAPL) are in the green today, closing at $157.87 as of November 18th(19:59 EST). The shares got an unexpected bump in value after Bloomberg reported about the company’s increased focus on the development of its electric car and full self-driving capabilities.
Apple – Technical Analysis
According to the financial statement released by Apple, the market cap of the company is at $2.59 trillion with total assets worth 351.002 billion. Revenue for 2021 was at $365.82 billion with a profit margin of 25.88% compared to $274.15 billion in 2020.
Moving averages such as Exponential Moving Average (10)(151.87), Simple Moving Average (10)( 151.07), Exponential Moving Average (20)(150.41), Simple Moving Average (20)(150.50), and Exponential Moving Average (30)(149.51) is indicating a buy signal. Oscillators such as Relative Strength Index (14)(71.30), Stochastic %K (14, 3, 3)(81.07), Commodity Channel Index (20)(317.42), Average Directional Index (14)(18.08), and Awesome Oscillator(4.17) are neutral.
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Recent Developments
Apple has proceeded unevenly with its automotive efforts, known as Project Titan since 2014. Now the company has announced that it would launch its electric car as early as 2025 and refocusing the project around full self-driving capabilities which will have no steering wheel and pedals, with interiors designed around hands-off driving.
Apple’s recent earnings report indicated that the supply of internal chips and necessary components for top new products is very low. It addressed how the chip shortage combined with supply chain disruptions affected the company’s previous quarter. Apple has relied heavily on Foxconn and other manufacturers’ ability to get necessary materials from around the world. But Covid-19 and shipping delays prevented suppliers from delivering key Apple components such as casings, cameras, and critical internal chips and plastics.
The earnings call revealed that the company lost somewhere around $6 billion due to the company’s struggles to get materials to the factories, and completed products. This prevented Apple’s product launches from driving profits higher. Apple stores are currently struggling to keep the new iPhone 13 and Apple Watch Series 7 in stock. Macbooks have also experienced backorders. The final quarter is also expected to show similar results. The company could miss its revised earnings mark in the subsequent earnings report due at the end of January.
Apple has also recently started focusing on the global electric car-charging industry. As stated in the report from Bloomberg, the company is taking a different approach to car charging from the one it uses with its mobile devices. It wants its cars to be compatible with the combined charging system, or CCS that would let Apple tap into an expansive global network of chargers. This would make Apple car’s more attractive for buyers.
Should You Buy AAPL?
Apple has indicated that things will improve soon as chip manufacturers work to address delivery concerns and scale up production. Following its split with Intel last year, the company has invested heavily in its own chip design and proprietary production.
Apple has traditionally performed well during the holiday season. But its more than likely that its next quarterly report will have the same issues. While no one can doubt that Apple is in no risk of collapse, quarterly difficulties like these can drive down prices. This will allow for cost-averaging or even quick pickup of Apple shares at bargain-bin prices before the inevitable rebound, as manufacturers shift to support the biggest players over the next two years. Considering these facts, you can clearly pick up Apple shares and add them to your portfolio.
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