Apple Stock Analysis 2020: Buy Before Or After Stock Split?

 | Aug 14, 2020 02:03PM ET

Apple Stock Analysis: Is it Overvalued?

Is Apple Inc (NASDAQ:AAPL) stock a buy now, days after announcing its fifth stock split since 1987 and delivering impressive earnings? Or, is it way overvalued?

How has Apple stock splits impacted its price in the past? And how could it impact it before and after its split-adjusted trading begins on Aug. 31st?

Am I adding Apple stock to my portfolio? And if so, at what price? How much Apple do I even have in my portfolio? And what type of investor should be looking into adding the Apple stock to their portfolio?

Because as you probably know by now if you’ve been following me for a while, investing strategies are not a one-size fit all. What works for me, may not work for you. That's because I probably have a different risk tolerance than you, my financial situation and goals are likely different than yours, and we’re probably not the same exact age and are not married to the same exact person because that would be weird.

In this video, I analyze Apple stock from five points of my signature Invest Diva Diamond Analysis (IDDA), which analyzes any asset from five points: fundamentals, technicals, market sentiment, risk assessment and overall how it can fit in your portfolio, and of course, my most recent price targets. Webull , and TD Ameritrade (NASDAQ:AMTD). For example, even if you have only $50 to invest, you still can buy $50 worth of Amazon (NASDAQ:AMZN) stock, which is priced well above $1,000. So this part of it is more about investors’ psychology than a real fundamental change in the company’s valuation.

Apple Stock Market Sentiment Analysis

Let’s now move on to IDDA’s second point, which is market sentiment.

Currently, we have bulls and bears evenly distributed across the market.

Apple Stock Bulls Say:

  • Apple isn’t too big to grow even more.
  • The company is still innovating with introductions of Apple Pay, Apple Watch, Apple TV and AirPods; each of these could drive incremental revenue, but more crucially help to retain iPhone users over time.

Apple Stock Bears Say:

  • Apple stock is way too stable that wouldn’t give investors with high-risk appetite an opportunity for great gains.
  • It has the most expensive valuation in a decade.
  • Apple is behind firms like Google (NASDAQ:GOOGL) and Amazon in artificial intelligence, development (notably Siri voice recognition), which could be problematic as tech firms look to integrate AI in order to deliver premium services to customers.

Apple Stock Price – Technical Analysis

The Apple stock price has reached a new all-time high above $460 before the split. In https://investdiva.com/investing-guide/apple-stock-analysis-2020-buy-aapl-before-or-after-stock-split/

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