In today's video I will show you why Apple (AAPL) might be one of the best stocks to buy and hold for 2021. As a long term value investor I don’t gamble with my money and I don’t day trade or look for penny stocks. I pick and choose the best companies, with the best business models and financial outlook so I can sleep at night knowing my money is in good hands, and Apple is one of these companies.
Apple has the 3 things I look for in every company I invest in: 1) strong business model, 2) clean financials 3) significant and steady cash flow and 4) a lot of growth upside.
Apple has been a powerhouse for many years, and just recently released its new iphone 12 with 5G capabilities, as well as announcing the apple car and the deployment of its own 5G modem, which will replace the Qualcomm modems as of 2021, ahead of schedule.
I see their main growth in services for 2021, not specifically hardware. So far, the apple tv streaming service is still struggling with a mere 2% of the market. Its still in its diapers and you can expect a big resource push by apple and Disney to capture more market share during 2021 as they try and crack the top 5 which is currently held by Netflix, YouTube, amazon and hulu. I see that push as being of the biggest growth sectors of apple in 2021 and 2022.
Apple is also entering the self-driving car market, which could yield even more long-term upside possibilities – Tim Cook has a track record of delivering as promised and on time, just look at the 5G modems they are rolling out ahead of schedule, that is their culture, especially given how good apple has become at selling value of price, which is a perfect fit for the automotive market.
Apple is still heavily dependent on the products segment, specifically the iPhone which accounts for 50% of its revenue, but as apple makes a concentrated effort invest time and resources into growing their services segment, such as the apple tv and apple music, their margins are expected to grow exponentially and their financial outlook will be even better for 2021 and 2022.
As the stay at home trend continues, apple will definitely get a piece of the pie via increased hardware sales, i.e. mac and iPhone sales. However, if it plays the cards right, they can really push digital services in 2021 and explode out of the stratosphere. In short, apple has A LOT of upside in digital services. As apple tv, arcade and music get more attention and resources I see this segment becoming a major revenue item for apple, which is something the current share price does not reflect. Think about it this way, the gross margin on apple digital services is about 65% while on hardware its about 31%, so you can see where the cheese is at, and apple knows that. I see a future where apple is not making any money on hardware at all, just using it as a platform to sell its services, much like printer companies and ink, just generating subscription revenues of all its digital services.
👏👏👏 Big shout out to our growing list of Patreons. For those of you want (and can) support our channel, here is how you can help: https://www.patreon.com/user?u=13016082
If you would like to support the channel by buying merch, you can do that here: https://teespring.com/stores/tom-nash-merch
Apple has the 3 things I look for in every company I invest in: 1) strong business model, 2) clean financials 3) significant and steady cash flow and 4) a lot of growth upside.
Apple has been a powerhouse for many years, and just recently released its new iphone 12 with 5G capabilities, as well as announcing the apple car and the deployment of its own 5G modem, which will replace the Qualcomm modems as of 2021, ahead of schedule.
I see their main growth in services for 2021, not specifically hardware. So far, the apple tv streaming service is still struggling with a mere 2% of the market. Its still in its diapers and you can expect a big resource push by apple and Disney to capture more market share during 2021 as they try and crack the top 5 which is currently held by Netflix, YouTube, amazon and hulu. I see that push as being of the biggest growth sectors of apple in 2021 and 2022.
Apple is also entering the self-driving car market, which could yield even more long-term upside possibilities – Tim Cook has a track record of delivering as promised and on time, just look at the 5G modems they are rolling out ahead of schedule, that is their culture, especially given how good apple has become at selling value of price, which is a perfect fit for the automotive market.
Apple is still heavily dependent on the products segment, specifically the iPhone which accounts for 50% of its revenue, but as apple makes a concentrated effort invest time and resources into growing their services segment, such as the apple tv and apple music, their margins are expected to grow exponentially and their financial outlook will be even better for 2021 and 2022.
As the stay at home trend continues, apple will definitely get a piece of the pie via increased hardware sales, i.e. mac and iPhone sales. However, if it plays the cards right, they can really push digital services in 2021 and explode out of the stratosphere. In short, apple has A LOT of upside in digital services. As apple tv, arcade and music get more attention and resources I see this segment becoming a major revenue item for apple, which is something the current share price does not reflect. Think about it this way, the gross margin on apple digital services is about 65% while on hardware its about 31%, so you can see where the cheese is at, and apple knows that. I see a future where apple is not making any money on hardware at all, just using it as a platform to sell its services, much like printer companies and ink, just generating subscription revenues of all its digital services.
👏👏👏 Big shout out to our growing list of Patreons. For those of you want (and can) support our channel, here is how you can help: https://www.patreon.com/user?u=13016082
If you would like to support the channel by buying merch, you can do that here: https://teespring.com/stores/tom-nash-merch
Apple went explode as of today breaking resistance and hopes to continue and reach what Tom said. After a long sideway market.
Agree
apple is one of those stocks that you just buy it no matter the price
Hey Tom. How do you check the market share of services such as Apple TV?
Aside from great financials, what I like about Apple, and what I find unique about them, is that they have a great philosophy at the heart of the company, which you can observe from the quality of their products and their vision in an Apple ecosystem. I see them becoming a complete lifestyle company in the next 10~20 years, where they are omnipresent in both your hardware and software needs. I see Apple as one of those black mirror companies where it's just in everything. But again, anything could happen. I think these financial analysis models have their limitations, they can never predict any catastrophic or parabolic event in either direction. E.g. a DCF about Tesla from 5 years ago would probably be worthless and totally inaccurate in predicting how the crazy price movement has been.
Services > $NFLX $DIS $SPOT $AMZN
With all this recent market volatility it wouldn't be bad to to reinvest profits back into $APPL shorterm & longterm.
I live in Bangladesh. How can I buy stocks from here? Robinhood is not available here.
I found etoro, is that good? is there something better and more reliable?
Excellent content as usual. What do you think of investing in Qualcomm? There is some hostility between Apple and QUALCOMM. QUALCOMM recently bought Nuvia, a processor design company for $1.4 Billion. Nuvia was created by Gerald William’s III. Apples former chief CPU designer. Thank you!
But their market cap is so huge!!! Is their any space for growth?
I bought 100 shares at $16 a share a long, long time ago. It split over and over again. Twice I sold some shares for different reasons. I almost wish I hadn't sold what I did. What I kept now cost me pennies a share. It is the best investment I made.
what about when democrats take office and every single tech stock goes down??
You failed to mention their M1 chip that will increase their sales AND margins on hardware as they won't be using Intel chips anymore, as well as the huge increase in performance and battery life. Their hardware WILL make them more money. Watch…
You are doing such a great job Tom. Finding your channel was a pure accident. But the best one I've made. I look forward to seeing a lot more from you in the future 😊
The market cap is about $2.2trillion. What could one company possibly be worth? $4trillion? $10trillion. I'm just a layperson, but $2.2tr seems unbelievable for one company. That's $2.2million million.
Been holding from 2012 😘
Tom thank you for sharing your opinion. I myself am a big fan of a fundamental analysis and a strong believer that one can make money on a stock market only by following a strategy that implies long-term investments. A combination of commonly known S&P 500 ETFs like vanguard, ishares etc, innovation etfs like ark invest and a portion of growth and income stocks (depending on your risk tolerance level) will bring you wealth in the long term. Patience means everything in this business. Thank you again.
Best wishes from a Russian VC guy )) Удачи, канал супер!
Happy New Year!!!
Have not seen one of your videos in ages. Last video was you raging on Cardone. Any recent videos on Cardone? They were most humurous and well done.
Hey Tom have you made a video on your valuation spreadsheet? Or are you willing to make a version of your spreadsheet available for download?
Tom i like your apple call!
TOM WHAT DO YOU THINK ABOUT THETA AND THETA FUEL
Apple car… A car that you won't be able to repair.
Apple will not be allowed to enter the car market with the same set up as it uses in electronics.
Apple uses a global manufacturing base then exports to consumers. That wont fly in car market. Tesla is doing it right with locating production close to market. It makes the coming electric change over an disruption to existing manufactures somewhat tolerable. Apples model would simply kill domestic auto industries and locate all manufacturing in Asia. Simply put that is not acceptable to Europe, US, are any of the large developing market countries.
It is simply impossible for Apple to do thing in car market the way it want to.
Personally I am not a fan of Apple but respect them for the insane successfull business model.
Having said that I strongly believe that in a not so distant future they are going to buy disney+ and add that to their services.
Also the M1 chip is insane (and they just started). This a a great fundament to sell out to carmakers (yes not making an iCar but service the M1 out) in order to create an ecosystem available to the likes of BMW, Mercedes, RR and so on. Basically what Alibaba is doing in China. Who would buy a Bugatti if the underlying self-driving and services comes from Alibaba? No one. The same with services from Apple? Yes please.
And don‘t get me wrong I like BABA and hold them in my portfolio.
I will buy more Apple on the way when cash at hand. The M1 was the revelation from the company I needed to assure me that they will not be the next Nokia 🙂
@Tom Nash > someone with a fake profile using your face is trying to selling scamming products commenting directly to people under your videos…
Please, advice people about it because no more people know this way and someone could fall in the trap thinking that is you.
Thank you Tom, you’re one my a favorite…with you since the beginning!😉
Apple is in a huge bubble right now, and that is undeniable. It's P/E ratio as of today is 41.93, and anything above 25 is overvalued, meaning that apple is absurdly valued right now. Now I understand that the market is taking into consideration the mass 5g rollout of phones in the coming years, as well as the new "apple car" concept, but at the same time, it's way ahead of itself, as apple has yet to prove these earnings. Right now I believe the only way to justify its 41.93 P/E ratio is major FOMO (fear of missing out). And all bubbles pop at some time, so I'd wait until the market gets real with itself here to buy in.
I’m think the automotive industry will change. There is a company called, Canoo, that came up with the idea of subscription for the automotive. This can really change how people own a vehicle. Why deal with the hassle of titling, registration, insurance, or even maintenance. Also, the headache of being involved in an accident. You don’t have to worry about how or where are you going to get a new vehicle for transportation; it is taking care of for you. There is no real good reason to buy a vehicle anymore. Once, you drive it off the dealer lots, the value of it immediately drop. Apple is moving toward EV… that is sign that theirs innovation on the iPhone is starting to lag. This was similar with Blackberry. Apple TV is worthless and it probably will flop. There are too many streaming services. Amazon and Netflix dominate that sector already. If Apple wants to grow, they need to go into virtual reality products. EV is a horrible idea for them and will cost them so much money to try and catch up. Tesla already dominated the EV and the legacy automakers are doing theirs best to catch up; however, the automotive industry need a change. I think Canoo got a great idea that can really catch up to Tesla if they come out with better appearance appealing vehicles.
Where is your research coming from? That’s just pure misinformation. There is no confirmation of an Apple car.
Go figure I wake up late and it has already went up … I wanted to buy premarket 🙁
Apple can't even make a decent battery and camera for the phones! Samsung makes a better phone, and has been years ahead of Apple!
Remember when AAPL crashed 40% ($700-$385) a few years ago for no particular reason? Don't be naïve. Don't overinvest in the next "holy grail".
I only have 20 shares in Apple(I invested to learn about stock market and see how it goes). But now I'm planning to hold onto it. Is that a good number for long term or should I consider buying more? Besides, I also invest in index funds–just started it, few months ago.