Apple has a reputation as one of the most innovative companies in the world. A department dedicated to product development helps it to maintain its leading position. It’s no secret that Apple’s stock is one of the companies with lower valuations on the stock market. This is a high-income brand with slow growth and high brand awareness. Other stocks that fit this description have a P/E ratio of 20 times or even 25 times. And the expected P/E ratio of Apple's Stock is only 17 times.

In 2020, Apple has once again become the biggest gainer among the big technology stocks in US. Renowned Apple analysts on Wall Street believe that apple is likely to be the third consecutive champion. And its market value is expected to exceed $3 trillion for the first time.

There are two reasons that many investors are optimistic about apple. One is that the outbreak of the epidemic speeds up its digital transformation. The other is that it is transforming to the model of hardware (that is service business)

Apple has believed in one principle. That is "enterprises that care about their own software should produce their own hardware". Today, some factors support Apple's rapid growth and its market value. That is the ecological effects of hardware and software, as well as the huge number of users and equipment,

When Apple went public, its issue price was US $22 per share. There were 4 stock splits after the listing. One split two in June 1987, in June 2000, in February 2005, and one split seven in June 2014. Apple's IPO price adjusted by the split is $0.39.

Apple's share price is currently trading at about $127 per share. If the split and adjustment is made, this price is the highest in history. In August 2018, its market value historically exceeded US$1 trillion. Thereby, it became the world's first company with a market value of $1 trillion. Apple began to pay quarterly dividends in May 1987. But it suspended payments around November 1995 after the financial crisis.

Apple's cash reserves reached $100 billion in August 2012. Then it resumed paying quarterly dividends. In the latest dividend in May 2018, Apple announced that it would raise its dividend by 16%, reaching $0.73 per share. Apple becomes the company with the highest dividend. Some investors focus not only on huge dividend payments but on its history of continued growth. For them, Apple's Stock is worthy. Apple has about $145 billion in cash reserves. It has about $54 billion in annual free cash flow. This means that investors who value income will put Apple's Stock at the top of the "watch list." Some elements make Apple’s stock become one of the most active stocks in the world. Elements are Apple's position in the world, dynamic development momentum and unique value.

In a vibrant technology industry, Apple's rivals are powerful and innovative enterprises. The technology industry has some features. It has frequent releases of new products and continuous improvement of functions. It introduces highly innovative designs.

Raymond Mitchell, Author

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