Apple Stock – Big Tech Future in 2022
Will 2022 be a good year for Apple Shares and its investors? Now the main question for the techno giant is this. Gene Munster of Loup Ventures said Apple’s market capitalization should be valued at more than $4 trillion. Most recently, though, It sounded the alarm on Big Tech as a group. Apple Maven digs deeper and argues: What should investors expect from the AAPL and its tech peers in the New Year?
In summary, Munster is optimistic about Apple for two main reasons: Autonomous cars and Metaverse. He is not alone in his optimism. Several Wall Street analysts currently estimate that the market value of Apple stock will exceed $3 trillion; Partly because of these factors.
According to Loup Venture’s managing partner, Big Tech, which Apple owns, could have a challenging year. This is primarily due to higher interest rates in 2022. This can lead to multiple reductions in evaluation.
Among the Big Tech promotions cited by the expert are Apple and Netflix, Amazon, NVIDIA, Tesla, Rivian. At first glance, Munster’s argument makes sense. Big Tech had an impressive two-year return. In the last 24 months, Big Tech has outperformed the broader market four times: annual revenue 97%, against SPY 23%. Interestingly, the group’s sharpest decline since the previous peak was only 14% at the end of the month.
Apple Stock Future Perspective
Is it reasonable to expect technical promotions to double annually in the long run? It is tough to imagine. Therefore, in an environment of monetary tightening, the group can produce excellent results in one or two years. The same five stocks have generated more than 50% annual revenue over the last decade. It reflects the ability of these companies to grow and impress investors with market dominance and strong financial performance. Avoiding Big Tech for fear of short-term failure could hurt portfolio pay.
Another reason to stand by the fears is that the market had plenty of opportunities to estimate interest rates next year. The Federal Reserve became increasingly shy in December 2021. Moreover, the shares increased instead of selling. Big Tech is a relatively diverse group of companies and stocks. For example, Tesla 2022 P/E is 122 times higher in the sky; Apple is much more modest 29 times.
If rising stocks are hit by increasing rates next year, RIVN and TSLA will probably get a bigger hit until Apple feels any impact. Viewing the basics of a company’s business is only half the job of finding good stock. How much a person pays to own shares is a critical factor in the success of any investment. This is why evaluation analysis is critically important. Alpha Spread’s user-friendly platform allows people to estimate the actual value of stocks. The service is essential for those looking to own the right stocks at the right price.
Stocks and Santa Claus Rally
Santa Claus almost missed Wall Street this year. What happens after the Christmas holidays if the Santa Claus action is real? Most importantly, what direction will Apple stock be, and who will be next to head the account? The first question is whether Santa Claus’s action in the data is obvious or just a myth. It is noteworthy that the S&P 500 historically performed better in the pre-holiday period. However, only minimally.
The same can apply to Apple stock and its investors. For the past three decades, the AAPL has produced a remarkable average two-week income of + 1.22%. However, two weeks before Santa arrived, the return was deplorable. The loss was -1.33%.
The rest period is typically seasonally weak for Apple shares, according to observations. December was just the ninth-best month for Apple stock during the year; Since the release of the iPhone in 2007.
It is worth noting that if Apple investors feel abandoned from the Santa list; They should be more excited about what follows. Shares of Apple since the early 1990s have risen an average of + 4.83% in the two weeks following Christmas, which is above average.
The big question is, in the next few trading days, will Apple shares and the broader market be the same as in previous years? We will see this in early 2022.
