Investing in Apple Stock: A Comprehensive Financial Presentation

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Added on  2020/04/13

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This presentation provides an analysis of Apple stock as a potential investment opportunity. It begins by emphasizing the importance of investing for future wealth and introduces the concept of stock options as a means of capital appreciation. The presentation explores the advantages and disadvantages of stock investments in general, including high returns, income from dividends, diversification, and liquidity, while also acknowledging risks such as volatility and the need for expert advice. It then focuses specifically on Apple stock, highlighting its strong performance, growth in the technology industry, and brand recognition. Key rationales for investing in Apple stock are presented, including its massive cash reserves, profitability, brand name, and innovation. The presentation also discusses Apple's increasing trend over the years, strong market position, high PE ratio, and high-volume movements, concluding that Apple stock presents a good investment opportunity due to the growth of the technology industry. The presentation also covers factors such as competitive advantages, attractive market valuation, and the company's strong ecosystem. Overall, the presentation aims to guide viewers in making informed investment decisions, especially regarding Apple stock.
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Speaker notes
Slide 2: Investing in your future is important since it may determine the level of wealth that one
may be leaving for generations to come. One of such ways is taking a conscious effort in looking
for means by which to ensure that your capital is appreciating over time. The various types of the
future options based on capital budgeting is a good starting point for future predictions of the
earnings.
Slide 3: The stock should be able to provide an investor with room for capital appreciation in the
future going with the premise that the company is a going concern. The stock options refer to the
agreement which is made between the buyers and thee seller which will be able to provide the
owner the right to “buy/sell an underlying asset” which is set for a price in particular time span.
Since people have more capacity to save and invest, it is important to know where to invest your
money. A rising marginal propensity to save coming from rising incomes makes people have
more than they could live by. There are a significantly wide range of stock options for one to
invest but there are factors that make a particular stock worthwhile to invest in. The feasibility
study of the stock options needs to be performed with the factors such as appropriate valuing of
major and minor stocks, consideration of different Risks, different Rewards and identification of
particular method of investment.
Slide 4: There are pros and cons over stocks as a means of investment. While they provide an
investor with high returns, can have income from dividends, are diversifiable and are highly
liquid, they are also risky due to volatility, and since choice and knowledge is important, they
might require the use of an expert. Some of the main advantages of the stock options to the
owner has been seen with providing the opportunity for the employees and make them feel more
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connected to the business. The investors on investing in a good stock will be able to get high
return on their investments. In addition to this, the income from the dividends will be able to be
secured at the end of each financial year. The importance of the stock diversification has been
seen in terms of benefits pertaining to the long-range financial goals and at the same time
minimizing the risk. However, the various types of few risk needs to be considered with the
unsystematic risks. The different types of the unsystematic risk are seen with volatility the stocks
and other financial risks which are difficult to avert.
Slide 5: However, of the stock options that are there Apple stock presents a good investment
option. This is because it is one of the fastest growing stocks in the US. It is a company operating
in the technology industry with a wide range of products as well as operations across the world.
It is regarded as a luxury brand and therefore continues to be relevant to the market. It has high
levels of revenues, profits and free cash flow from its operations. Some of the main rationale for
investing in the stock of Apple has been considered with the Massive Cash Reserves and Flow,
Profitable, Brand name, Innovation and Ideas. The cash flow reserve of $131.1 billion as per the
data which is released by the company in the first quarter of 2016. In addition to this, “Tim
Cook, CEO of Apple” has announced more than “87% of global operations and 100% of the US
operations”. The innovation and ideas of the new products are seen to be developed as per the
Apple TV and ecosystem and new developments which will contribute to generating more
revenue to the company.
Slide 6: Overall, the Apple stocks have been on an increasing trend over the years. The company
has a strong beta position in the market, a high PE ratio and high-volume movements which
means that the stock is highly liquid. Internal factors also make the company a good bet since it
has a strengthening eco system due to the growth of the internet and technology offerings, it has
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high return on investment and also it has an attractive market valuation. As per the
recommendations given by the skeptics it is seen that the company’s major line up of the product
will contribute to the seamless experiences across all Apple devices. The booming services
business is further evident with App Store, iTunes, Apple Pay, and Apple Music which has
assisted in strengthening the halo effect. It has been further seen that more than twice of the
major of the expenditure made by the company has been done in the segments of the Apple store.
Slide 7: To sum, in order for one to invest well, they need to know where to invest. Investing in
stocks is a strong option with advantages and disadvantages. However, Apple as a stock presents
a good investment opportunity since the technology industry is still growing and therefore the
stock is going to grow more in the future. The powerful competitive advantages to the company
has been to be based on the incredible ability for generating the cash as per the FCF for every
$100 in sale. The company is depicted with the attractive valuation with a strong competitive
position. The company is known to trade at a discount to the market as a whole. It has been also
discerned that the ex-cash basis of the company is even more attractive. In general, the investors
have discounted the value of such cash in the overseas transactions.
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