Apple, the largest company on the planet with a market capitalization of nearly $2 trillion, has scheduled the first of the few possible product launch events for September 15, 2020 (next Tuesday).
Now why did I mention the first of many product launch events?
Well, the new iPhones and AirPods may not be displayed during the September 15 event.
So what is Apple planning to launch on the 15th?
According to reports from reliable sources, Apple may launch the new Apple Watch Series 6 and a few new iPads (Air and Pro).
Here’s what Jon Prosser posted on his Twitter account about what you can expect from Apple’s September 15 event.
Look for the Apple Watch SE version (the iPhone SE was a huge success for Apple).
The iPhone 12 and iPhone 12 Pro can be expected at the October event, which Apple plans to launch before the start of the holiday season.
So should you buy Apple Stock next week before the event?
Look, first of all, buying Apple stock is a good thing on every level. It is one of the best blue-chip companies on the planet with recurring revenue streams. The products are amazing, work extremely well and the Apple fans have always been loyal.
Looking back at recent quarterly results, thanks to the pandemic, iPad and Mac sales have been strong. AirPods alone represent over $8 billion in revenue. Services revenue is comparable to iPhone sales and the overall health of the business is excellent with excellent cash accumulation.
Apple also pays quarterly dividends if that’s what you’re looking for. Dividends tend to increase from year to year.
Now let’s take a quick look at Apple’s stock price over the past few days.
Apple stock 5-day trading chart:
Apple stock 1 month trading chart:
As you can see, after the 4-for-1 stock split on August 31, the stock which immediately shot up to the mid-$130s has since corrected to reach the $110 levels. Tech stocks, in general, have fallen, which has nothing to do with Apple per se.
Speaking of the 15th event, I believe that in the coming week the stock will continue to be extremely volatile. You can see rapid upward trends in the stock price around Tuesday’s event.
Be vigilant and cautious before picking the stock at current levels because to be honest, it is extremely volatile.
If you plan to hold the stock for the long term, I have nothing to say other than to urge you to buy at current levels. Shares are trading at $440 ($110*4 – pre-split levels) with a P/E ratio of 34.
The thing to remember is that Apple is one of the best blue chip stocks to hold for the long term and every drop in market price is a buying opportunity.
You can’t time market movements or stock price. However, the only thing you can probably do is average the purchase price before the stock price reaches higher levels. (average cost in dollars)
Thanks for reading! Let me know your thoughts and comments below.
