Apple Stock Forecast 2022: Revised Forecast is $182, AAPL Underperforms NASDAQ

Apple Stock Forecast 2022: Revised Forecast is $182, AAPL Underperforms NASDAQ
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  • Apple Stock Forecast 2022: The Stock has lost momentum and has underperformed NASDAQ in the last 30 days
  • Stock Forecast for the Next 12 months: $182 (Revised Higher)
  • Key reasons for lower forecasts – COVID in China, Supply Chain, Likely slowdown in the economy

Apple Stock Forecast 2022: Latest Price

Apple Stock Forecast 2022: Performance Chart

Stock Name
5 days
1 Month
YTD
-5.1%
-17.9%
-24.5%
-1.5%
-15.4%
-28.1%

Forward PE: $23.1

Stock Market News on Twitter: “Apple $AAPL has reportedly showed its AR/VR headset to the board signaling they’re at an advanced stage and close to releasing the headset according to Bloomberg / Twitter”

Apple $AAPL has reportedly showed its AR/VR headset to the board signaling they’re at an advanced stage and close to releasing the headset according to Bloomberg

Apple Stock Forecast 2022: Forecast for the Next 12 months

Source
Date
Target
Apple Stock Forecast 2022
May 20th
$182
May
$200
May
$175
May
$168
April
$169
April
$200

Michael Burry Shorts Apple Stock!!! Sell AAPL Stock Now? [MY REACTION]

Originally tweeted by Stock Options with Cole (@StockOptionCole) on May 20, 2022.

$AAPL Has been one of the leaders leading down It has been nonstop since losing that major 150 level. I do believe we will continue to see pressure downside all the way to 134.8. I also think its possible we can test around 123-125 on the Weekly if we lose this 100SMA @ 138 #SOWC

FTLIfH7UUAAqcSp

Also Read: Apple Stock Split

Also Read: Apple Stock Forecast

Apple Stock Forecast 2022: Positive Factors

  • Strong Q2 ResultsApple Inc posted an excellent Q2 results
    • Revenue increased 9% YoY to $93.3 billion
    • Basic Earning per share up 9% from $1.41 to $1.54
    • Americas grew 18%, Rest of the World grew 2%
    • iPhone sales increased 5% to $51 billion, Mac business sales expanded by 14% and Services by 17%
    • Gross margin increased by 11.8%
  • Robust Smartphones Demand
    • The smartphone market was around $270 billion last year and is expected to grow at an annual growth rate of 7.6%
    • Apple controlled nearly 17.5% of smartphones globally in 2021, up from 16 percent in 2020.
    • This percentage further increased in the case of 5G in which Apple controls almost 28% of phones globally.
  • Regular Share Buyback Program and Excellent Dividend
    • Free cash flow for Apple in the last four quarters has crossed $100 billion and surprisingly it has rewarded its shareholders handsomely by paying $14 billion in dividends last year. Apple is announcing regular buyback programs and in turn, boosting shareholder returns by reducing the number of free-floating shares in the market. Apple had 22 billion shares in 2017 and by end of the fiscal year 2021, only 16.86 shares are left. It means that the percentage of ownership for every shareholder has increased proportionately in the last five years.
  •  Sticking to the Basics
    • While Apple is not bombarding the market with breakthrough products every couple of years and management is sticking to the basics, free cash flow is allowing it to reinvest and improve products and its services which are driving up revenues by increased sales. Apple is investing a large chunk of revenue in R&D – which stood at $23 billion in the past year and hence we can expect a path-breaking product anytime soon. 

Apple Stock Forecast 2022: Negative Factors

  • AR/VR Headsets Will Not Contribute Towards Revenue in Coming Years – While it is great news that Apple is launching AR/VR headsets based on metaverse technology as soon as the second half of 2022 or in 2023. But the real question remains whether it will contribute towards revenue in the balance sheet in the coming years. The headset will be priced higher than the watch around $1000 and this will significantly reduce its sales in the initial years. It is expected to have minimal contribution in revenue at least till 2026. Also between watches and AirPods, headsets will struggle to find a place.
  •  Bad Local and Global Cues- Apple Inc is a great company with strong financials. But lately due to inflation fears in the US economy, investors have been harsh on growth stocks. With the Federal Reserve beginning to reduce the size of its balance sheet, many are forecasting a recession which in turn may reduce demand for Apple devices.

Apple Stock Forecast 2022: Conclusion

There is no doubt that Apple Stock Forecast 2022 is headed in the right direction by meticulous planning and execution and will touch new heights as a company in the coming years. They are spending huge amounts on research and development and still improving their existing services and products to hold on to their loyal fan base. Analysts are expecting it to grow at 15% over the next five years, its earnings could increase from $5.61 per share to $35 per share in the next five years.

The stock is trading at 28 times earnings and a similar ratio will take it to $980 stock price in the next 10 years.

Overall, Apple is a great future company with great prospects but global cues are not conducive currently for the bull market, but a long-term investor should not be wary of these uncertainties and should keep Apple Inc on the watch list.

-Vineet Agarwal

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

Apple Stock Forecast 2022

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