It makes sense if you’re thinking about buying Apple stock. With one of the most popular brands in the world, the company might seem like a sound investment. Apple stock is currently one of the most actively traded stocks. It was selling for $225 per share as of Nov. 15, 2024.
While this looks promising, it can still be hard to tell if it’s a sound investment. Before adding it to your portfolio, you might be looking to learn a bit more.
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GOBankingRates spoke with two financial experts to get their take on whether Apple stock is a good buy this holiday season. Here’s what they had to say.
Also see whether Amazon stock is a good buy this holiday season.
For the Right Investor, Yes
“Apple is a powerhouse, plain and simple,” said David Materazzi, CEO and founder of Galileo FX, an automated trading platform. “It’s got a brand, products and loyalty that other companies only dream of.”
This includes a wide variety of revenue streams. “Its ecosystem keeps people hooked, and it makes huge cash from not just iPhones, but also its growing services like iCloud, Apple Music and the App Store,” he said.
As for whether or not you should buy Apple stock this holiday season, he said it depends on the investor and how long they plan to hold on to it.
“If you’re in for the long haul, yes… no question,” he said. “It has staying power and its premium products and prices mean it can keep earnings strong, even if the market dips.”
However, if you’re planning to buy the stock only as a short-term flip this season, he said this might not be the best choice. “High rates are squeezing consumers, and Apple’s stock is priced high,” he said. “So any slip in sales will hit hard.”
Ultimately, he said it can be a lucrative portfolio addition for the right investor.
“If you like the company and see it as a core investment, consider buying on any market dip,” he said. “You’ll get a better entry, and Apple will likely reward you over the years.”
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If It Matches Your Investment Strategy, Yes
“Apple has consistently demonstrated strong financial performance, driven by its diverse product lineup, including iPhones, Macs and wearables, as well as its growing services business,” said Connor Carnduff, CFP, a financial advisor at Broadway Graham Wealth Partners. “The holiday season typically boosts sales for consumer tech companies like Apple, as many people purchase devices as gifts, and Apple usually capitalizes on this trend with holiday promotions and strong demand.”
Despite that, he said even Apple stock isn’t foolproof.
“However, potential investors should also consider the broader market conditions, including the impact of inflation, interest rates and global supply chain challenges,” he said. “While Apple has a solid history of withstanding economic downturns, any potential recession or tightening of monetary policy could create volatility in tech stocks, including Apple.”
On the other hand, he said the high level of product diversity at Apple makes it a safer investment.
“The company’s push into services, including iCloud, Apple TV+ and its growing focus on augmented reality and artificial intelligence, diversifies its revenue streams beyond hardware sales, making it more endurable to market downturns,” he said. “Apple’s large cash reserves help it handle market ups and downs and keep investing in future growth.”
Ultimately, he shared Materazzi’s outlook that the amount of time an investor plans to hold on to the stock can be a deciding factor on whether or not to buy.
“While the stock might be subject to short-term volatility due to macroeconomic factors, its strong brand loyalty, ongoing product innovation and ability to generate significant cash flow make it a solid investment for those with a long-term horizon,” he said. “For those looking to buy Apple stock this holiday season, it might make sense to approach it as part of a diversified portfolio, considering both the potential for near-term sales growth and its long-term market position.”
So there you have it. Depending on your investment goals and strategy, Apple stock could be a safe buy this holiday season — one that offers rewards for years to come.
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This article originally appeared on GOBankingRates.com: Is Apple Stock a Good Buy This Holiday Season? Experts Explain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
