While Nvidia's stock has been in the spotlight lately, there are plenty of other companies that have outperformed the market. One of these stocks is Apple, one of the so-called "Big Seven" technology stocks.
According to Morningstar Direct's calculations, the $1,000 investment in Apple in June 2014 was worth more than $10,460 based on last Tuesday's closing price of about $209. This equates to a cumulative increase of more than 946% and an annualized return of 26.46%. (Apple's shares were largely flat on Thursday, trading at around $214 at 3 p.m. ET.) ）
This is not to the extent that Nvidia has exploded in recent months, but it still outperformed the S&P 500 over the same period. If you were lucky enough to buy Apple stock in late 1980, when it was born, the $1,000 investment is now worth more than $2.1 million, with an annualized return of 19.22%.
Apple is one of the seven stocks that drove U.S. stocks to record highs in 2023 and 2024, the others being Alphabet, Amazon, Microsoft, Meta, Nvidia and Tesla. Still, Apple stock has been one of the seven stocks that have been the underperformer in recent months, with earnings up just 1% in the latest quarter and sales declining.
"Major Innovations"Bank of America still rates Apple stock as buy-graded. Apple's recent launch of Apple Intelligence, an artificial intelligence system, and the announcement that it will grant third-party developers access to more AI features, "should lead to significant innovation among developers," the bank said in a research note released last week.
"We believe that conversational AI with context and privacy protection will be key to monetizing the installed Apple device base in the future, as productivity increases, app prices rise, subscriptions and partner payments increase," Bank of America's Wamsey Mohan wrote in the report. ”
Mohan also noted that more consumers may choose to switch to their iPhones in the future in order to take advantage of new AI features in development, and Apple's ability to expand its services and other businesses will be a reason to invest. In the best-case scenario, existing consumers will race to replace their phones and iPads to use artificial intelligence, while loyal users of other operating systems may change systems.
But unfortunately, the overall reduction in consumer spending could affect Apple, leading to weak iPhone 15 sales and lengthening iPhone replacement cycles. Consumers may also not be interested in Apple Intelligence features at all, and after the initial drop in popularity, consumer demand may decrease. Mohan also mentioned that two antitrust cases currently pending in the United States, as well as other issues, could have a negative impact on Apple.
Another factor: Since the S&P 500 is weighted by market capitalization, the up-and-down fluctuations of the seven US stocks such as Apple can have a huge impact. As a result, some analysts and financial advisors warn that some of the tech giants may be overvalued, which will affect retail investors who are constantly adding to index funds. (Fortune Chinese Network)
作者:ALICIA ADAMCZYK
Translator: Liu Jinlong
Reviewer: Wang Hao
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