If You Invested $1,000 In Apple Stock One Year Ago, Here’s How Much You’d Have Now
Investors who have owned stocks in the last year have generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return over the last 12 months is 61.9%. But there is no question some big-name stocks performed better than others along the way.
Apple’s Big Run: One company that has been a good investment in the last year has been iPhone maker Apple Inc (NASDAQ: AAPL).
Apple recently unveiled its family of iPhone 12 models, which are the first to be compatible with 5G mobile networks.
Analysts are expecting 5G iPhones to trigger yet another massive global upgrade cycle among existing iPhone users.
When iPhone sales growth began to slow in recent years, Apple made a massive pivot to a recurring services model, a transition that is ongoing to this day.
As of the fiscal first quarter of 2021, Apple said it now has a massive installed user base of more than 1.65 billion active devices. Apple’s Services segment is all about further monetizing that user base, and services revenue generates an impressive gross profit margin of about 68%.
Fortunately for Apple investors, the COVID-19 pandemic in 2020 didn’t negatively impact its business much at all.
In fact, the iPhone 12 helped generate 5.5% revenue growth for Apple in fiscal 2020. Net profit was also up 3.9% to $57.4 billion on the year.
At the beginning of 2020, Apple shares were trading at around $296. By the beginning of March, the stock was down to $282 after news of the coronavirus spreading in China prompting concerns about a U.S. pandemic.
Apple ultimately bottomed at $212.61 during the pandemic-driven March sell-off. Fortunately for Apple investors, the dip did not last long.
By June, Apple shares were back at new all-time highs above $330 and was as high as $514.14 in August prior to a four-to-one stock split.
Apple In 2021, Beyond: The stock eventually made it back up to new split-adjusted highs of $145.09 in January 2021.
In recent days, the stock has pulled back from its highs, settling back down to $120.
Still, Apple investors who bought one year ago and held on have generated a big return on their investment. In fact, $1,000 in Apple stock bought on March 26, 2020, would be worth about $1,968 today, assuming reinvested dividends.
Looking ahead, analysts are expecting even more upside for Apple in the next 12 months. The average price target among the 37 analysts covering the stock is $155, suggesting a 28.5% upside from current levels.