Although the company has faced repeated roadblocks this year, its vast cash resources will likely keep it flourishing over the long term.
Apple (AAPL 0.86%) has made a lot of millionaires over the years, with its shares up 792% over the last decade. However, it hit some roadblocks in 2024, with its stock down 11% year to date.
Macroeconomic headwinds caught up with the company last year, leading to four consecutive quarters of revenue declines. Its first quarter of 2024 finally broke the streak, with the tech giant posting revenue growth of 2% year over year to $120 billion as it beat Wall Street forecasts by more than $1 billion.
However, outperforming estimates hasn't been enough to quell investor concerns about other areas of Apple's business. In the first quarter of 2024, the company's iPhone division reported a 6% rise in total sales yet they fell 13% in China. The East Asian country increasingly prefers domestic brands over the iPhone, threatening business from Apple's third-largest market.
Then, on March 4, Apple's stock dipped again after news broke that the European Commission had hit the company with a $2 billion antitrust fine over concerns for its music streaming service.
Despite recent headwinds, Apple remains a leader in tech with dominating brand power and immense financial resources. The question remains: Is Apple still a millionaire maker, and could it make you one by the time you retire?
Apple has the brand power and funds to overcome current headwinds
It's hard to deny Apple's powerful position in tech. The company has leading market shares in most of its product categories, from smartphones to tablets, smartwatches, and headphones. In fact, the company holds the third-largest market share in e-commerce in the U.S., only after Amazon and Walmart, despite having a significantly smaller range of products.
Data by YCharts.
The popularity of Apple's offerings has instilled reliability in its business and given it the funds to overcome unexpected headwinds. This chart shows that Apple's free cash flow is considerably higher than some of the top names in tech. Apple's free cash flow actually increased 10% in 2023 despite hits to its revenue, allowing it to continue investing in its business.
While declining sales in China are concerning for now, growth in other regions could offset losses over the long term while the company gradually reshapes its business to rely less on the iPhone. In Q1 2024, product sales in Europe, Apple's second-largest market, posted revenue growth of 10% year over year. Meanwhile, sales in Japan soared 15%.
Moreover, the recent launch of Apple's first virtual/augmented reality (VR/AR) headset, the Vision Pro, could become a key growth catalyst in the coming years. The VR market on its own is projected to expand at a compound annual growth rate of 31% until at least 2030.
Apple may be new to the industry, but it has a reputation for entering new sectors and quickly rising to dominance. As a result, an investment in Apple today could be an investment in the future leader of the $20 billion VR market.
Can Apple help you retire a millionaire?
Apple is on a promising growth path and has a long history of reliability. Its dominant role in tech and investments in budding industries like VR/AR and artificial intelligence (AI) will likely fuel its stock price for years.
Data by YCharts.
This chart shows Apple's earnings could hit nearly $8 per share by fiscal 2026. Multiplying this figure by the company's forward price-to-earnings ratio of 26 yields a share price of $208, projecting stock growth of 23% over the next two fiscal years. These projections would likely see Apple continue to outperform the S&P 500, which has increased by 13% over the last two years.
As a result, Apple's stock remains an attractive addition to a diversified portfolio. Its significant cash reserves and potent brand make it an excellent option to hold over many years, as one does when preparing for retirement. I wouldn't bet against Apple's reliability and tendency to deliver major gains over the long term.
If you're less than five years from retirement, there are likely better options than Apple as it will need time to overcome recent headwinds. However, if you're an early stage investor with 20 or more years to go, the right investment can help make you a millionaire by the time you retire, and Apple stock could play a useful part in helping you achieve that goal.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Nvidia, and Walmart. The Motley Fool has a disclosure policy.
FAQs
However, if you're an early stage investor with 20 or more years to go, the right investment can help make you a millionaire by the time you retire, and Apple stock could play a useful part in helping you achieve that goal.
Can Apple still make you rich? ›
This premium valuation limits the potential to generate strong investment results. I think at best, Apple shares match the return of the broader market over the long term. So, a $1,000 investment in this business isn't going to make you a millionaire in less than a few decades.
What will AAPL be worth in 5 years? ›
We expect the stock to reach $237 per share by the end of 2025. End of 2026: We predict that Apple's stock price could further increase to $298, driven by continuing interest rate reductions. End of 2030: Apple could reach a market cap of $8.7 trillion by 2030, representing a share price of $561.
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A subscription with Motley Fool Stock Advisor generally costs $99 a year but can vary with promotional offers and the kind of subscription plan chosen. Motley Fool Stock Advisor can be worth it for investors who value the potential returns and stock picks as comprehensive investment guidance.
What does Warren Buffett say about Apple stock? ›
“When I buy Apple, I know that Apple is going to repurchase a lot of shares,” he said in 2018. And he likes to note how buybacks result in getting a bigger stake in the company without buying more shares. “The math of repurchases grinds away slowly, but can be powerful over time,” Buffett said in 2021.
Can Apple stock make you a millionaire? ›
As the world's second and sixth most valuable companies, Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are two attractive options. These companies dominate their respective industries and have created many millionaires over the years, with Apple's stock up 319% since 2019 and Amazon's up 96%.
Is it worth investing in Apple? ›
The past decade has been good overall for Apple investors. They've watched the stock price go from roughly $18 per share all the way to its all-time high of $197.86 on December 13, 2023. It's pulled back to $180.10 (as of February 29, 2024), but long-term shareholders are profiting from their patience.
What will Amazon stock be worth in 10 years? ›
Analysts at Coin Price Forecast do offer a 2034 projection for Amazon stock, estimating a 10-year price increase of 276%, to $672 per share.
How much will Apple stock be in 2030? ›
If Apple meets analysts' expectations and grows its EPS at a modest compound annual rate of 8% from fiscal 2026 to fiscal 2030, its EPS could reach $10.50. If its valuation remained at 28 times forward earnings at that point, its stock would be trading at $294, giving it a market cap of $4.5 trillion.
What will Apple be worth in 2040? ›
Key highlights:
| 2025 | 2040 |
|---|
| AAPL stock forecast (S&P 500 historical 11.1% ROI) | $202 | $1,093 |
| AAPL stock forecast (QTEC historical 15.2% ROI) | $209 | $2,015 |
| AAPL stock forecast (Apple historical 25.1% ROI) | $227 | $8,217 |
Feb 15, 2024
Let's say that you start with the time frame in mind, hoping an investment will double in value over the next 10 years. Applying the Rule of 72, you simply divide 72 by 10. This says the investment will need to go up 7.2% annually to double in 10 years. You could also start with your expected rate of return in mind.
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The Motley Fool has positions in and recommends Alphabet, Amazon, Chewy, Fiverr International, Fortinet, Nvidia, PayPal, Salesforce, and Uber Technologies. The Motley Fool recommends the following options: short March 2024 $67.50 calls on PayPal. The Motley Fool has a disclosure policy.
Is Apple a buy or hold? ›
Apple has a consensus rating of Moderate Buy which is based on 22 buy ratings, 11 hold ratings and 1 sell ratings. What is Apple's price target? The average price target for Apple is $207.72. This is based on 34 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
Who invested the most in Apple? ›
1. Vanguard Group – 1,317,966,471 – 8.47% Vanguard Group, the world's second-largest asset manager, is Apple's largest shareholder among institutional investors.
At what price did Buffett buy Apple shares? ›
Buffett began buying Apple in the first quarter of 2016, but there's no way to know exactly what his average share price was. But if you use the highest closing that quarter as a conservative estimate, it means that you would have paid $27.06 per share for Apple.
Does iPhone make you look rich? ›
Why is an iPhone considered a status symbol? iPhone is a status symbol because of the old marketing trick that makes people believe because something is more expensive, it must be better. It's also a manner of falsely elevating ones class by purchasing more and more expensive stuff.
Is Apple still profitable? ›
Apple revealed earlier this year that it has 2.2 billion active devices, illustrating the mammoth reach of its customer base as the company rolls out new subscription services. Despite the 4% drop in revenue, Apple still recorded nearly $24 billion in profit, a slip of just over 2% from a year earlier.
How can I make money with Apple? ›
Apple makes it easy to earn revenue by running ads in your Apple News content. Run impactful display, video, and native ads, and keep 100 percent of the revenue generated from ads you sell and 70 percent when Apple sells ads for you.
How financially successful is Apple? ›
Apple reported net income of 99.8 billion U.S. dollars in its 2022 fiscal year, the highest net income to date. Why is Apple one of the most profitable businesses on the planet?
