Apple [PySXybJObjM]
Tag: #Guga, #le iene, #xelaj mc - comunicaciones, #councillor
In today's video I will show you why Apple (AAPL) might be one of the best stocks to buy and hold for 2021. As a long term value investor I dont gamble with my money and I dont day trade or look for penny stocks. I pick and choose the best companies, with the best business models and financial outlook so I can sleep rcb vs kkr at night knowing my money is in good hands, and Apple is one of these companies.
Apple has the 3 things I look for in every company I invest in: 1) strong business model, 2) clean financials 3) significant and steady cash flow and 4) a lot of growth upside.
Apple has been a powerhouse for many years, and just recently released its new iphone 12 with 5G capabilities, as well as announcing the apple car and the deployment of its own 5G modem, which will replace the Qualcomm modems as of 2021, ahead of schedule.
I see their main growth in services for 2021, not specifically hardware. So far, the apple tv streaming service is still struggling with a mere 2% of the market. Its still in its diapers and you can expect a big resource push by apple and Disney to capture more market share during 2021 as they try and crack the top 5 which is currently held by Netflix, YouTube, amazon and hulu. I see that push as being of the biggest growth sectors of apple in 2021 and 2022.
Apple is also entering the self-driving car market, which could yield even more long-term upside possibilities Tim Cook has a track record of delivering as promised and on time, just look at the 5G modems they are rolling out ahead of schedule, that is their culture, especially given how good apple has become at selling value of price, which is a perfect fit for the automotive market.
Apple is still heavily dependent on the products segment, specifically the iPhone which accounts for 50% of its revenue, but as apple makes a concentrated effort invest time and resources into growing their services segment, such as the apple tv and apple music, their margins are expected to grow exponentially and their financial outlook will be even better for 2021 and 2022.
As the stay at home trend continues, apple will definitely get a piece of the pie via increased hardware sales, i.e. mac and iPhone sales. However, if it plays the cards right, they can really push digital services in 2021 and explode out of the stratosphere. In short, apple has A LOT of upside in digital services. As apple tv, arcade and music get more attention and resources I see this segment becoming a major revenue item for apple, which is something the current share price does not reflect. Think about it this way, the gross margin on apple digital services cf montreal is about 65% while on hardware its about 31%, so you can see where the cheese is at, and apple knows that. I see a future where apple is not making any money on hardware at all, just using it as michael pennington a platform to sell its services, much like printer companies and ink, just generating subscription revenues of all its digital services.
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