How to successfully analyze and day trade Apple stocks

Apple is one of the most popular companies in the worldwith its products present in almost all countries.

It has also grown to be the largest company in the world with a market capitalization of over $2.16 trillion. The company has Healthy balancingthe increasing market share, which is a Member of FAANG Group of companies.

This article will look at the best strategies for trading Apple shares.

Apple business segments

The main unique thing about Apple is The simplicity of its organization. Unlike other big companies like Microsoft. Alphabet, Berkshire Hathaway, Apple Don’t take over the big companies. As a result, the company’s products and services have become well known.

Apple operates in four divisions: iPhone, Mac, iPad and wearable devices accessories and services. The iPhone is the company’s main cash maker with revenues of over $206 billion in 2022. It is followed by services with sales of $78 billion. Mac revenue was $40 billion, iPad and wearables were $29 billion and $41 billion.

Apple increased Service offers In the past few years now It is pivotal to the future of the company. They include major services like Apple Music, Apple TV, Apple Care, Apple Pay, iCloud, and more.

Apple stock symbol, market capitalization, revenue and earnings

Apple bar code is AAPL while her The market capitalization exceeds $2.1 trillion. The market capitalization figure is constantly changing because it depends on the share price. Apple is a very profitable company, as you can see in the chart below.

Apple has consistently increased its revenue over the years. It made more than $170 billion in 2013 and $394 billion in 2022. Its net profit jumped from $37 billion to $99 billion in the same period.

Apple’s market share

apple over the years Because of the premium nature of its products and its strong market share. For example, the iPhone has a market share of about 24%, which is a big chunk given that there are hundreds of companies in the industry.

Apple has a large market share in the computing industry Even as it competes with hugely popular Microsoft-based products. The company sells hundreds of computers every year, making it a major player in the industry.

Moreover, Apple The second largest music streaming service in the world after Spotify. It also runs the world’s largest app store. While Android is Apple’s biggest app store making the most money.

Should you invest or trade in Apple stock?

Therefore, the common question is whether Apple It is a good investment or business asset. We believe it There are advantages to investing in Apple.

For example, as shown below, the company has been a strong performer in the past few decades. And stocks have jumped more than 45,000 since 2000. In its history, stocks have jumped even higher.

Historical performance is not always an indicator of what to expect in the future. However, in some cases, it is It can serve as a good indicator of what to expect. There are other reasons to invest in Apple. First, it has an easy-to-understand business model.

secondly , The company has a loyal following and ambitious products. Most of the people who buy smartphones aspire to buy an iPhone. Third, Apple is a very profitable company and has been constantly increasing its market share.

More importantly, analysts believe that Apple’s business will continue to grow over the years as shown below.

but, We also think you should trade Apple daily And also for several reasons:

• Apple is Highly liquid stock The company witnesses millions of shares traded daily. As a result, this makes buying and selling shares easy.
• apple It is a volatile stock Moreover, Apple is a highly volatile stock, which creates interesting entry and exit points.
• Apple is making headlines Moreover, Apple is widely covered by most of the financial professionals, which makes it easy to find opportunities.
• It is offered by most brokers Apple stocks are offered by many online brokers, which makes them very accessible.

Therefore, we recommend having Apple in a long-term investment account and also in your trading account.

Good reasons to avoid Apple

The biggest reason you might want to avoid Apple is that The stock seems a bit overpriced As the company has a price-earnings ratio of 27. Also, if you’re into it earningsYou should avoid Apple because of its meager 0.55% yield.

How to analyze Apple stock

There are two main things to keep in mind when analyzing Apple’s posts. As a long term investment, you should look for more details about the company. Some of these things to consider are:

• Revenue growth and profitability – You should look at the growth of total revenue and profitability over the years. As mentioned above, these metrics have improved over the years.
• sector growth – You have to look at the growth of the company’s sector, where you look at the main parts of the business. The most important part of this business is the service sector.
• New product launch – Must focus on launching the company’s products and profitability.
• Earnings growth – You should look at the company’s earnings growth, safety, return, and consistency.
• estimates Finally, you should look at estimates of the company’s revenue and profitability.

second, As a day trader, you should always focus on technical analysis. This involves looking at General chart patterns And Use Technical indicators To predict where the stock will go next. As a day trader, you should Use short term charts.

Related “ How to trade technology stocks

Apple stock SWOT analysis

One of the best techniques for stock analysis is to look at a SWOT analysis. Here are some of the most important features of Apple stock in this regard.

• power – The main strengths of Apple are Strong balance sheetclient loyaltygrowing market share, and worldwide Brand consciousness.
• weakness – Apple has a little weakness other than Its dependence on the iPhone, which brings in the most cash. Also, the company has a low dividend yield.
• an opportunity Apple has an opportunity to increase its market share globally.
• threats Apple has several threats. First, it contains a file Great exposure to China. Tensions between the United States and China are increasing. Secondly, the strong US dollar makes its products very expensive in many countries. there Regulatory concernsEspecially because of its app store. Finally, Apple TV+ is struggling to compete with the likes of Netflix.

Apple stock day trading strategies

There are many strategies for day trading Apple shares. First, the most popular strategy is known as trend action. This is a strategy that involves buying stocks when they are up and holding the position until the trend fades.

Second, you can trade reversals. This is where you wait for the trend to fade and then trade the reversal. In most cases, this trading strategy It works when traders use it Technical indicators such as Moving averages and the relative strength index. It also works when people use chart patterns like double top and head and shoulders.

Third, you can use Candlestick patterns Such as Doji, Hammer, and Shooting Star to Identify breaches and reflections.

The other strategy is known as speculationYou open positions and exit shortly thereafter with a small profit.

summary

In this article, we’ve looked at Apple and some of the key things to consider when investing and trading.

As we’ve seen, the company has strong market share in key industries, is very popular among traders and individuals, and has been a solid performer.

Useful external sources

• How to buy Apple (AAPL) stocks and shares – Forbes