Apple recently announced its second quarter result for the fiscal year 2025. The company reported quarterly revenue of $95.4 Billion, an increase of 5% from the previous year. Apple’s share price, despite revealing satisfactory quarterly financial results failed to gain investor confidence and maintained a downward trend of 3.9% from the month of may after quarterly financial result announcement.
Short-term decline in Apple share price
Apple’s decision to repurchase its shares despite an impressive earnings report is cited as the reason for the drop in the price of the stock this month. The report states that the company has repurchased 100 billion dollars in stock, down from an estimated $110 billion this year. Apple’s stock price fell slightly as a result.
Stock repurchases usually reduce the number outstanding of shares and increase the EPS, but this did not occur as expected. Apple’s stock price may drop slightly in the short-term, but it will soon resume its upward trend.
Should I purchase Apple shares?
Apple has been a global leader in manufacturing and computing software since 1976. Apple’s portfolio includes smartphones, watches and tablets.
* Short term entry
Apple’s price drop after quarterly financial results may be a good reason to buy shares at this time. It is an attractive option for buyers. It is currently trading at $201.36, and has a high of $260.10, and a low of $169.21. At this price, the stock is attractive and could provide a good return.
* Long term entry
Apple shares have had an outstanding performance over the last five years. The stock has returned 159.82%. Apple has one of largest market shares worth more than $3 trillion. Apple’s share price rose steadily until December 2024, when it was $249. However, the price fell sharply afterward due to geopolitical and economic factors such as Donald Trump’s Rose Garden Tariff Declaration. Apple’s share price will grow in the future if the company does not make any significant changes or if other economic factors do not change.
Apple’s stock price fell slightly after its announcement of second-quarter results, due to investors’ increased expectations on the stock repurchase authority. The slight drop in share price is only temporary and is expected due to the strong financials of Apple and its historical performance over the past five years to see it regain growth on the long term.
Frequently asked questions
What was the performance of Apple’s shares over the past five years?
Apple’s share prices have returned a positive 159.82% over the past five years. They also maintained a balanced asset-liability balance in 2024 and 2025.
What are the advantages of purchasing Apple shares?
Apple’s diverse product portfolios have a strong growth potential and a huge market capitalization.
What are some of the cons to buying Apple stock?
Apple shares are also susceptible to market risks, global economic factors and future company decisions.
