CFA

Over the past 5 years, Apple stock has made an overall 58% increase in value. Continually developing technology, new and improved products, and extreme popularity have been carrying the Apple stock through the roof in ROI and value. CFAs, however, warn against the possible poison it may hold. Although it may seem a sound investment, doubling in value over the past year, it may hold a growing tendency to no longer be as wise.

Apple may seem sweet and shiny to investors, with growing popularity of products and astronimical short-run returns, however CFAs apply logic to solving the mystery of Apple stock. Currently, the value of the company is ranked 10th in America, coming in at $135 billion. Logically speaking, Apple stock would have to continue to grow at the same rate in order to continue to be an attractice stock to CFAs. Logically spraking, if return begins to decrease, investors will not look to the stock as the money making machine it is today. However, applying basic laws of mathematic, it quickly beomes clear to investors and CFAs alike that the ROI of Apple stock looks grip.

If in fact, Apple stock continues to grow at the same rate, the effects could be potentially astronomical. If this does happen, the projected value of the company exceeds gas giant Exxon Mobil and soft goods Johnson & Johnson. That seems absurd, CFAs argue, for how could a technological company take the place a historically sound company like ExxonMobil? Answer is, it most likely won’t. It seems that Apple stock does not have much room to grow, for it is not powerful enough to have a value higher than gas giants or historical names.

Apple delivers the latest technology in both music players, phones, and computers. CFAs also acknowledge that the technological competition on the market is heating up. The touch screen interface of the popular iPhone that attarcted CFA investment is slowy being outweighed by Blackberry and Nokia products. In fact, steady sales and updated technologies have been keeping Apple stock on a steady rise. However, closer examination done by CFAs on specific sectors of the company show that sales in certain regions of the word are down, especially on the once extremely popular iPod whicharguably have Apple the name it has today. The stock as a whole will eventually catch up to the fading Apple demand and show disappointing results in the coming decade.

Logically speaking, Apple has apparently maxed out on growth in the past few years. Numerically, it seems that Apple stock growth has hit a plateau and doesn’t have much room to expand. CFAs see this as a concern for investors, for while it may be decieving with steady returns in historical short run, it will most likely not provide the same gratifying rewards in the future. The poison of time and numbers has penetrated the once-invincible Apple stock, and will slowly trickle into investor’s pockets. Julst like for Snow White, Apples can be deceiving.