The Motley Fool

5 fantastic & fascinating facts about Apple stock (AAPL)!

Illustration of bull and bear
Image source: Getty Images.

Without doubt, Apple (NASDAQ: AAPL) is the most successful company in modern financial history. Today, its market valuation, revenues, cash flow, and earnings are among the highest of any company ever. What’s more, owners of Apple stock have made more money in total than any other group of shareholders in history. So here are five fantastic and fascinating facts about the world’s biggest Big Tech company.

1. Apple stock was briefly worth $3trn

Exactly a week ago, on 4 January, Apple stock soared to an all-time record. At its intra-day high, the Apple share price peaked at $182.94, before easing back to close at $179.70. At its peak, Apple’s market value exceeded $3trn. This made it the world’s first company to reach this jaw-dropping valuation. However, Apple’s stock price has since retreated and stands at $171.25 as I write. This values the consumer-electronic Goliath at $2.8trn, which still makes it the #1 corporation worldwide by market value. Mind-blowing, huh?

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

2. AAPL is worth more than the German stock market

It took Apple more than four decades to become a $1trn company, hitting this mark in August 2018. With two years, on 19 August 2020, it first reached a $2trn valuation. Earlier this month, it first hit hit the $3trn mark. Even after losing $200bn of market value in a week, Apple at $2.8trn is worth slightly more than the entire German stock market. The total value of all German-listed companies is around $2.4trn, which Apple’s value exceeds by roughly $400bn. Wow.

3. $1,000 in Apple stock five years ago is now worth nearly $6,000

Five years ago, on 13 January 2017, the Apple stock price closed at $29.76. Today, at $171.25, it is over 5.75 times as much. In fact, had I invested $1,000 in Apple stock five years ago, I would have over $5,754 today. That’s a market-thrashing return of 475.4% in five years — and this ignores all cash dividends paid by Apple to shareholders since January 2017. Crikey.

4. Apple took under 16 months to add $1trn in market value

It took Apple 42 years to reach a $1trn market value and two years for this to double. Remarkably, despite the ongoing Covid-19 global pandemic, it took Apple stock less than 16 months to add another $1trn to its already-towering valuation. Clearly, the old City of London saying that “elephants don’t gallop” doesn’t applied to Apple — at least so far. Crazy.

5. Apple’s earnings multiple has almost quadrupled in five years

Now for a slightly frightening fundamental figure from Apple. As a consumer-goods powerhouse, Apple’s fundamental ratings have soared in recent years. Five years ago, the ratio of Apple’s enterprise value (market value plus net debt) to revenues was a healthy two times. Today, this valuation measure has almost quadrupled to nearly eight times revenues. Also, Apple’s price-to-earnings ratio now exceeds 30 times, compared to roughly 10 times five years ago. In other words, Apple’s revenues and earnings have never been as highly valued as they are in 2022. Ooh.

I would not buy Apple stock today

Finally, I don’t own Apple stock, but would I buy AAPL at its current lofty valuation? I would hate to bet against the world’s most successful company, but I expect stock markets to have a weak 2022. Hence, I’d rather look for value among lowly rated FTSE 100 stocks paying juicy dividends. I would rather bet on value than backing go-go growth stocks as global interest rates creep up!

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US $12.3 TRILLION out of thin air…

And if you click here, we’ll show you something that could be key to unlocking 5G’s full potential...

It’s just ONE innovation from a little-known US company that has quietly spent years preparing for this exact moment…

But you need to get in before the crowd catches onto this ‘sleeping giant’.

Click here to learn more

Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has recommended Apple. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services, such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.