Apple announced its second quarterly result recently on 1st May for this fiscal year 2025. The company has posted quarterly revenue of $95.4 billion, which is up by 5% over the year. Though it revealed satisfactory quarterly financial results, Apple share price failed to gain investor sentiment and sustained a declining trend of 3.9% since the month of May after quarterly financial result disclosure.
Short-term decline in Apple share price
The reason cited is that despite a healthy earnings report, the decision of Apple over its stock repurchase authorization pulled the share price down this month. According to the report, the company repurchased $100 billion in stocks, which is down from the estimation of $110 billion for this year. It hurt the investor’s sentiment for the short term, and Apple’s share price has experienced a slight fall.
Generally, stock repurchases reduce the number of stocks outstanding, and it increases the EPS (earnings per share), but it did not happen as it was expected. So, there might be a slight decline in Apple’s share price for the short term, and it is expected to regain its upward trend as expected earlier.
Should I buy Apple shares?
Apple is one of the global leaders in computing and manufacturing, operating software and present in the market since the year 1976. Apple has a wide range of portfolios, including smartphones, watches, laptops, tablets, headphones, and related products.
● Short-term entry
The possible reason for buying Apple shares just right now can be its price decline just after the declaration of quarterly financial results, and it may be an attractive buying option at this current level. Currently it is trading at $201.36, with a 52-week high of $260.10 and a 52-week low of $169.21. The stock looks attractive at this level and has the potential to give a return.
● Long-term entry
Apple shares had a stellar performance in the past five years, and the stock has given a 159.82% return. It has one of the largest market shares, worth over $3 trillion. The Apple share price gradually increased till December 2024 at the price level of $249 but experienced a sharp fall after that due to economic factors like Donald Trump’s Rose Garden Tariff declaration and other geopolitical situations. So, in the long run, the Apple share price is expected to give price growth if there are no further significant changes adopted by the company or other economic factors remain unchanged.
Apple’s share price has experienced a slight decline after the declaration of its second-quarter results due to higher expectations of investors on its stock repurchase authorization. But the slight fall is expected to be temporary, and it is expected to regain growth in the long run due to its strong financials and historical performance in the last 5 years.
Frequently Asked Questions
How did Apple shares perform in the last 5 years?
Apple’s share price has given a positive return of 159.82 % in the last five years and maintained a stable balance between assets and liabilities in the years 2024 and 2025.
What are the pros of buying Apple shares?
Apple has a large market capitalization in the world and has strong potential to grow with its diverse product portfolios.
What are the possible cons of buying Apple shares?
As with many other companies, investing in Apple’s share price is also subject to market risk, global economic factors, and upcoming company decisions.
