Four Reasons Why Apple Could Be Rotten For Your Portfolio
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, 09-14-2014 at 04:27 PM (1600 Views)
Apple is Nearly Everywhere. With more than $625 billion in market capitalization, Apple is one of the most popular stocks in the world. If you own a mutual fund or ETF that owns the largest companies in the world, chances are good you already have a piece of it.
Apple is Still A Tech Company. Whenever there’s a new product — no matter how big the introductory splash — it’s bound to falter. Consumers may not embrace it. The competition may be better. It may have annoying bugs or security issues.
Apple’s Stock Price is Volatile. The company’s share price has seen some ups and downs in recent years. In late 2009, the stock traded at under $30 a share. It doubled by the end of 2011 and soared to over $80 the following year. This is all good news — if you’re a long-term investor in Apple.
Apple May Not Crush the Competition. Everyone wants to eat Apple’s lunch. Competitors have a full line of smartphones, “phablets,” tablets, watches and computers ready to snatch the company’s market share. There are seven other smartphone watches on the market now.
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