Will Apple stock reach $700 again?
"Apple's been on top for so long now," says Matt Warman in Britain's Telegraph, "there is only one way it can go." Indeed, Apple shares will never get back to $700, says The Economist.
It's possible that Apple stock could reach $500 or even $1,000 in the future. However, there are a number of factors that could affect its price, including the company's financial performance, the overall state of the economy, and the performance of the broader tech sector.
Average Price Target
Based on 26 Wall Street analysts offering 12 month price targets for Apple in the last 3 months. The average price target is $204.86 with a high forecast of $250.00 and a low forecast of $158.00. The average price target represents a ― change from the last price of ―.
Apple (NASDAQ: AAPL) stock made an improbable run to all-time highs in 2023. The tech giant's shares approached $200 by mid-December, translating into an over 50% rally on the year.
After Apple's recent earnings report, 43 analysts projected the company's 2024 revenue to come in at $388.3 billion, similar to the previous 12 months. Predicted earnings per share stood at $6.55, also consistent with last year's results.
Where will Apple stock be in 10 years? CoinPriceForecast anticipated AAPL could be at $417 by the end of 2033 and hit $439 by the end of the following year.
AAPL Stock: $400 Is Still Realistic for 2025
It's entirely possible as Apple clearly remains confident in its smartphone sales. Along with that, Apple could potentially generate strong revenue from MR headsets and PCs. So, despite ongoing challenges in China and elsewhere, there's no reason to bet against Apple.
Those gains translate to a 36.6% compound annual growth rate for Apple compared to a 7.4% CAGR for the S&P 500 in that time. That means that $10,000 in AAPL stock purchased 20 years ago would be worth about $5.08 million today, assuming reinvested dividends.
With its 2-star rating, we believe Apple's stock is overvalued compared with our long-term fair value estimate of $160 per share. Our valuation implies a fiscal 2024 adjusted price/earnings multiple of 25 times, a fiscal 2024 enterprise value/sales multiple of 7 times, and a fiscal 2024 free cash flow yield of 4%.
Apple stock has received a consensus rating of buy. The average rating score is Aaa and is based on 68 buy ratings, 29 hold ratings, and 2 sell ratings.
What if you invested $1,000 in Apple 20 years ago?
What does that look like on a brokerage statement? Check out the above chart and you'll see that if you invested $1,000 in Apple stock 20 years ago, it would today be worth almost $530,000. The same $1,000 invested in the S&P 500 would have theoretically turned into $6,186 over the same period.
Dan Ives, a senior equity research analyst at Wedbush Securities, deems the situation a strong buying opportunity, giving Apple's stock a price target of $250 per share. He cites massive pent-up demand in the iPhone upgrade cycle and high expectations of "AI finally coming to Cupertino (in California)."
Apple 10-Year Performance
Patient investors who held the stock through all of its ups and downs were rewarded with what Wall Street refers to as a “10-bagger,” a stock that provided a return of 10x the original investment. On a percentage basis, those who held Apple stock over the past 10 years earned a 916% return.
Of the 28 analysts covering Apple stock, 15 rate it as a “Strong Buy,” while 3 call it a “Moderate Buy.” Nine more analysts rate it as a “Hold,” while 1 says it's a “Strong Sell.”
Unless we see a serious global macro shock over the next couple of years, I expect Apple stock to trade higher than current levels by the end of 2025. Wall Street analysts likewise expect the stock to rise to $205.84 over the next 12 months, while the Street-high target price is $240.
Amazon has a conensus rating of Strong Buy which is based on 41 buy ratings, 0 hold ratings and 0 sell ratings. What is Amazon's price target? The average price target for Amazon is $209.59. This is based on 41 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
In other words, that $1,000 investment in 1980 would be worth more than $1.26 million today! But that's not all, because Apple has paid a dividend in several years since 1987. Assuming you never sold a single share along the way, you would've collected an additional $155,131 in dividend payments!
Factoring in the company's five stock splits, these 454 shares would have increased to 101,696 shares, as of today. With Apple closing last week at $140.09, it means an initial $10,000 investment nearly 42 years ago would now be worth $14,246,593. Keep in mind that this figure doesn't take into account dividends paid.
Long-term retirement stocks: Apple (AAPL)
One of the best stocks for a retirement portfolio is the tech giant Apple (NASDAQ:AAPL). It enjoys the best position in the industry and has the finest products and services to offer. The one thing that sets Apple apart from the rest is its brand name and customer loyalty.
The manager of the Baron Focused Growth Fund expects Tesla's stock to reach $1,200 by 2030, up 550% from current levels, citing its strong brand.
Is Apple always a good investment?
Apple shares have made for a fantastic investment over the years, climbing 817% in the last decade. And more recently, they rose 48% in 2023, beating the Nasdaq Composite.
If Amazon maintains its current valuations, matches analysts' expectations, and grows its EPS at a CAGR of 20% from 2025 to 2030, its market cap would reach $5.5 trillion by the final year.
In August of 1997, Gates stepped in and saved Apple, which, at the time, was on the brink of bankruptcy. “Bill, thank you. The world's a better place,” Jobs told Gates after the Microsoft exec agreed to make a $150 million investment in Apple.
But if you were smart enough to invest $1,000 in Apple stock at the start of the year 2000, you'd be sitting on a monster gain of 21,230%. This means that modest investment would be worth a whopping $213,000 today (as of July 27).
If you had invested $1,000 in Apple stock on Feb. 4, 1997, today, you would have $1,343,269. Likewise, if you had invested $1,000 in an index fund replicating Nasdaq, you would have $11,038. A similar $1,000 investment in an index fund that replicates the S&P 500 would be worth $6,140.
