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How to invest in Apple: complete guide to buying AAPL shares

Karen Haslam | June 3, 2013
Everything you need to know about buying AAPL shares, and whether you should.

Some might suggest that as it nears $900 Google might be more risky than Apple was when it hit $700. Others suggest that Google is heading to $1,000 (last April they said the same of Apple).

Incidentally, market cap is determined by multiplying the stock price of a company by the number of shares it has issued. Apple's market cap is currently $417.65 billion. Google's is $288.08 billion.

According to AAPL trading information there are 938.65 million Apple shares outstanding, and 64.10% are held by institutions. In the case of Google these figures are 331.77 million shares outstanding and 85.60% held by institutions.

So, should I buy Apple shares?
There are a few reasons why you might want to consider buying some AAPL shares.

Apple's PE ratio is only x9 which means it's really cheap right now compared to the rest of the S&P 500 (which have an average PE ratio of x15) trades at a 9.1 price-to-earnings multiple well below the 17 of Google and the 14 average for all tech rivals, JPMorgan noted.Most analysts give Apple a Strong Buy or Buy rating.The company has $137billion in reserves - this is a good buffer in a tough economic climateWhile smartphone ownership in the West is said to be reaching saturation, the emerging markets of China and India are said to be ripe, if Apple can produce a phone at the price these consumers (and the carriers there) are able to afford. This is why everyone keeps going on about budget iPhones.

Should I steer clear of AAPL?
Many consider that Apple's golden days as the leader in the smartphone and tablet market is overApple's profit margins are now lower than they used to be, sparking fears that the company's earnings will start to shrink Apple's had a few run ins with the 'law' recently. The company has been questioned over its tax practices and the Department of Justice is accusing it of price fixing its eBooks. Either of these issues could bite Apple. And then there's the raging battle with Samsung which played out in courts around the world last year and will continue this year.

As we said earlier, we're not investment experts but if you wish to invest in Apple, good luck!


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