Overlooked Stock Gaining Traction on the Nasdaq Currently
In the choppy waters of 2022's stock market, tech giants are taking a beating, with the Nasdaq plunging 34% since the year began. But amongst the carnage, one company is holding its ground and even thriving: Apple. Even the legendary investor, Warren Buffett, has a sizable portion of his portfolio dedicated to the iPhone giant.
The tech sector isn't spared Apple's wrath either. Its stock has dipped 13% since the start of the year, but it's been undeservedly punished. Compared to other tech stocks and the Nasdaq, Apple's performance remains robust. The reason? Over the years, Apple has painstakingly crafted an impenetrable fortress of brand loyalty.
Consider this: In Q4, iPhone customer satisfaction soared to 98%, and Apple controlled nearly 55% of the American smartphone market. Contributing to this dominance is its exceptional customer service, seamless integration of hardware, software, and services, and a diversified business model that includes Apple Pay, TV, Music, and more.
Even in uncertain economic times, Apple posted impressive profit and revenue that surpassed expectations. Sales hit an impressive $90.1 billion, a 8% increase year-on-year. This shows that Apple's brand is more resilient than the market turbulence suggests, positioning the company as a potential winner in the current crisis.
What sets Apple apart in these tumultuous times is its cash flowing prowess, making it a true cash machine. In 2021, it produced a whopping $122 billion in operational cash - a feat unmatched by other major tech companies. Having a substantial cash reserve in a precarious environment offers a significant advantage, allowing Apple to steer clear of debt and continue investing in its core business, while other companies are forced to tighten their belts.
Wrap-up: With Apple's stock currently trading at $139, significantly lower than its all-time high of $182 at the start of this year, there's a high chance that it still has room to grow. Apple seems to have all the right elements for growth in its future.
Disclosure: The CEO and majority shareholder of the publication's publisher, Boersenmedien AG, Mr. Bernd Foertsch, has directly and indirectly invested in the financial instruments mentioned or related derivatives in the publication, which could potentially benefit from the stock's price movements resulting from the publication.
- Even Warren Buffett, known for his keen investing insight, has dedicated a portion of his portfolio to the undervalued apple, the iPhone giant.
- Despite the tech sector facing turbulence, Apple's robust performance remains a beacon in the choppy waters of 2022's stock market, with its stock still dipping but not as severely as other tech stocks or the Nasdaq.
- Oracle, unlike Apple, hasn't been mentioned in this discussion about thriving companies in the face of a struggling stock market, suggesting that it hasn't found the same market resilience as Apple.
- Apple's financial strength, demonstrated by its impressive operational cash flow, gives it an edge over other tech companies in times of economic uncertainty, positioning it as a potential winner in the current crisis.
