How to Buy Apple Stock & Shares of AAPL to Invest and Day Trade
Like most investors, you have probably dreamed of buying shares of a company that skyrockets in price within a short time, making you enough money to let your dreams come true. The chances are that Apple was recently a best buy alert from one of the best stock picking services, or maybe you plan to buy shares of Apple today.
Apple went public on December 12, 1980, at $22.00 per share. After a total of five stock splits since IPO (2:1 1987, 2:1 2000, 2:1 2005, 7:1 2014, 4:1 2020), the split-adjusted IPO share price is $0.10. Apple Inc. is listed on Nasdaq and has a market cap of 2539.86B, and the current all-time high in the stock of Apple is $154.98, or even higher at the time of reading. Stock analysis tools help you to analyze the stock of Apple fast and efficiently by using the latest company financials and technical analysis parameters.
The great news is that if you decide to buy shares of Apple, you can do this fast and securely by using a stock trading app. Even with a small budget, you can start diversified investing via fractional shares. And if you want to day trade Apple for short-term gains, a day trading broker will ensure that your order gets executed fast for maximized returns.
Please keep in mind that we do not specifically recommend buying Apple shares. Instead, please get in touch with your financial advisor if you need any investment advice. Alternatively, subscribe to the best investment newsletters or best swing trade alerts.
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How to Buy Apple Stock
- Start with research. Analyze the company fundamentals chart patterns using the best tools that suit your trading style.
- Choose a brokerage account. Use our broker comparison to find the best platform that fits you.
- Open and fund the brokerage account. Follow the instructions and fund your account.
- Search for Apple within your trading platform. Use the stock symbol AAPL to search for Apple stock within your platform.
- Decide how many shares to buy. Buy your preferred number of shares of Apple, or invest in fractional shares by using your favorite order type.
- Manage the portfolio. Track the results, manage open positions and add new positions.
The story of Apple Inc. (NASDAQ: AAPL) is a story of innovation. A key to Apple’s unparalleled success is never being satisfied with what it’s already done, to be always pushing forward on the cutting edge of new technologies, like Apple Pay, its contactless mobile payment system, the perfect new innovation for the 2020 and beyond.
The following is just a brief, less than exhaustive, rundown of Apple innovations since its 1976 founding by Steve Jobs, Steve Wozniak, and Ronald Wayne:
- Apple innovation started with the Apple II computer, which evolved into the Mac (first PC with a mouse and graphic interface)
- The 2001-2003 unveiling of the iPod and iTunes, technology that eventually transformed the entire structure of the music business
- In 2007, the first iPhone, the launchpad of mobile computing
- 2010 – the iPad, which quickly spawned a host of imitators
- By 2016, Apple services – including Apple Pay and the App Store – overtook Apple products as a source of revenue, with the exception of the iPhone
- Apple continues to roll out new innovations yearly: the macOS Big Sur browser, iCloud computing, Apple TV, the Apple Watch, and, of course, the always eagerly anticipated next version of the iPhone
Apple’s continuous innovation, fueled by the return of co-founder Steve Jobs in 1997, has mushroomed annual revenues from $7 billion to $260 billion in just two decades.
Apple Quick Facts
- Chief Executive Officer: Tim Cook
- Chief Operating Officer: Jeff Williams
- Chief Design Officer: Jonathan Ive
- Headquarters: Cupertino, CA
- # of Employees: Approx. 150,000
- International Operations: 26 countries
Apple stock was a hit with investors from the very beginning. It debuted on the NASDAQ exchange in December, 1980, selling more than four million shares at $22 each. The more than $100 million in equity capital that Apple received was the largest IPO revenue since Ford Motor Company (NYSE: F) went public.
By the end of its first day trading, Apple stock had minted around 300 new millionaires and had a market capitalization of $1.7 billion.
Apple has been a reliable performer for investors ever since. The stock experienced its only sustained downtrend from 1993-1997, during the period when Jobs had been ousted from the company by CEO John Sculley. But with Jobs’ return to the head of Apple in 1997, the stock turned back to the upside, and the slope of Apple’s uptrend has only gotten steeper. As of September, 2021, Apple’s stock price is $148, near its all-time high just above $150.
Apple is the largest company in the world by market cap, with a market capitalization value of $2.4 trillion. The iPhone accounts for 50% of Apple’s revenues, but Apple is never resting on its laurels. It grew its home services and wearables revenues by 25% in 2020. Subscribers to Apple TV increased from five million to 40 million in just the past two years, while the company forges ahead with manufacturing its own CPU chips and enters the race to develop driverless cars.
Key Stock Metrics for Apple
Gross Profit Margin: Apple has maintained a relatively steady gross profit margin around 38-40% since 2009, about eight clicks above the industry average, evidence of its strong pricing power in the marketplace
App Revenue Per Region: This is an increasingly important metric for evaluating Apple stock, for two reasons: First, much of Apple’s projected continuing growth is in overseas markets, especially China, where mobile app revenues have increased from $15 billion to $50 billion since 2016. Second, Apple services are an increasingly large portion of Apple’s bottom line.
Average Revenue Per User: Goldman Sachsanalyst, Simona Jankowski, believes this is a key metric to watch as Apple services becomes an increasingly large part of Apple’s revenue pie. Apple wants every iPhone owner (and Android phone owners, too) to use or subscribe to more and more Apple services. Jankowski projects that Apple can potentially triple its current average monthly revenue per user of $42 to $150+.
Best Tools for Research and Analysis of Apple Stock
What do you know about the financial health of the company? What is the most recent analyst rating? How did the EPS develop recently, and what is the companies outlook? What were the latest SEC filings, and what is the typical seasonality profile of Apple?
Those are some of the most common questions for investors interested in buying Apple shares, while day traders are interested in answering different questions like: Is there a high relative volume in pre-market trading of Apple today? Will the stock gap up at the open? How volatile was the stock price in the first 15 minutes compared to the 5-day average?
There are tools that suit the needs of all types of investors and traders to make their analysis and due diligence process easier and more efficient.
Here are the 3 best tools every investor and trader should know about:
- Stock Rover: StockRover is the best investment research and stock analysis tool for investors. It is an advanced web platform with stock screeners, alerts, comparisons, research reports and charting capabilities. The StockRover 14-day free trial unlocks full access to all features and the best way to get started.
- Benzinga Pro: Benzinga Pro is the best all-in-one tool for stock market research, market scans, options activity monitoring and education. The Benzinga Pro 14-day free trial provides access to all functionalities.
- Trade Ideas: The best stock scanner for day traders with real-time market screening, backtesting features and automated trading capabilities. Trade Ideas offers a discount for new subscribers.
Best Brokers for Trading Apple Shares
Most investors in the United States rely on zero commission brokers these days. While Robinhood introduced 0-commission trading many years ago, brokers like Webull, Charles Schwab and TradeStation soon followed this business model. Brokers offering commission-free trading to clients make money by selling the order flow to third-party venues instead of routing the order to the exchange or ECN. This type of order handling is especially beneficial for investors with a low trade frequency trading small size of stocks.
Trading fractional shares is an alternative to buying full increments of shares of a stock like Apple with an online stockbroker. Using fractional shares for investing allows even investors with a small portfolio to diversify appropriately.
- Cobra Trading is an excellent option for day traders. Cobra Trading offers powerfulday trading platforms and softwaresolutions with extensive order routing capabilities and high-speed order executions. In addition, they offer one of the best short-selling lists, and traders can even trade hard-to-borrow shares easily. Special offer from Cobra Trading for daytradingz.com readers
- TradeStation is the best zero-commission retail broker.There is a minimum account requirement of $2,000, but you gain access to a free trading platform with free real-time market data and advanced functionalities such as backtesting, automated trading systems andadvanced charting. Learn more about TradeStation.
- Sofi Invest is the best broker to start investing in fractional shares. There is no account minimum, and the account opening process is easy to understand. With Sofi Invest, you can also participate in IPO’s before they trade on an exchange and invest in cryptocurrency. Learn more about Sofi Invest.
Manage Risk Properly
Most investors make their investment decisions based on the fundamental data of a company. For example, investors often use the total revenue, gross profit, total operating expense, net income or other figures from the income statement, balance sheet or cash flow statements to make well-informed decisions.
Day traders often rely on technical analysis to decide whether to buy, sell, or short securities like Apple at a particular moment during trading hours. They often trade in increments of hundreds or even thousands of shares.
Some investors even rely on their gut feeling or blindly follow suggestions from trading forums,swing trading services, or advice withinstock chat rooms.
Managing risk properly is one of the key factors to become a successful investor and trader. Therefore, it is essential to manage a portfolio based on the original trade idea. If the company fundamentals or technical analysis parameters change, adjusting the position according to the new situation might be good.
Many trading educators andtrading courseproviders recommend coming up with a trading plan for each investment. This way, investors are well prepared to make the portfolio adjustments at the right time based on the original trade plan.
How to Buy Apple Stock: Conclusion
Buying shares of Apple is easily possible for everyone. A buy order within a brokerage account enables investors to buy stock of Apple. The more time-consuming aspect is the analysis before buying Apple shares. You can make this decision on your own or with your investment advisor.
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