Apple Share Price Forecast December 2021 – Time to Buy AAPL?
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Shares of Apple (NASDAQ: AAPL) are in the red today, after closing at $174.33 as of December 14th (19:59 EST). Apple has displayed its ability to refresh legacy products like the iPhone, iPad, and its family of Mac computers to keep consumers loyal. Demand for its products increased during the pandemic as millions of users scrambled to start working, learning, and entertaining themselves at home. As a result, the company’s services segment has experienced robust gross-profit margins.
Apple – Technical Analysis
Apple’s financial statement indicates that the market cap of the company is at $2.86 trillion with total assets worth $ 351.002 billion. Revenue for 2020 was at $365.82 billion with a profit margin of 25.88% compared to $274.15 billion in 2019.
Moving averages such as Exponential Moving Average (10)(171.26), Simple Moving Average (10) (170.60), Exponential Moving Average (20)(166.05), Simple Moving Average (20)(164.78), Exponential Moving Average (30)(162.46) and Simple Moving Average (30)(159.88) are indicating a buy action. Oscillators such as Stochastic RSI Fast (3, 3, 14, 14)(66.50), Williams Percent Range (14)(−30.27), Bull Bear Power(10.96) and Ultimate Oscillator (7, 14, 28)(56.77) are neutral.
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Recent Developments
Revenue for Apple increased by 33% in 2021 from $275 billion in 2020 to $366 billion this year, primarily due to the launch of new products. This convinced a lot of investors who were earlier concerned about the company’s revenue growth ability. The company is generating a healthy profit right now from its sales of products and services. Its service sector provided a gross profit margin of 70.5% in its most recent quarter ended Sept. 25.and boasted 745 million paying subscriptions, up more than 160 million from the year prior.
On Tuesday, Apple received the news that Bank of America has upgraded the shares. Analysts have based this on the assumption that not only will Apple sell more iPhones in its fiscal 2023 but will post stronger services growth as well. The company also plans to launch an augmented reality headset to sell at a premium price.
However, Apple reinstated its mask mandate within all of its U.S. retail stores as soon as Bank of America published its bullish outlook. As rising coronavirus vaccinations seemed to be diminishing the threat of COVID-19, Apple dropped its in-store masking rule for customers in many U.S. states. But as the news of Omicron broke out during Thanksgiving, rising cases of the new variants increased. As a result, Apple felt the need to increase its precautionary measures, which make shopping at Apple stores less attractive. However, this relatively negative news is not enough to remove the boost it received from the Bank of America.
Should You Buy AAPL Shares?
Investors must look at Apple’s ecosystem where the products are the main focus. Consumers who buy iPhone or iPads are more likely to subscribe to Apple Music. A consumer can then customise the experience once they subscribe. Investors have enough reasons to be thrilled as the company’s products’ sales increased to $297 billion in fiscal 2021, up from $221 billion in 2020.
The main catalyst behind the rise of the share price is Apple’s strong results. The shares have increased 32% year to date in 2021 and 315% over the last three years. This puts Apple at records highs which have left investors with the question – have the shares any room left to climb higher? Based on this, now is not the time to buy Apple shares.
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