You Don't Need to Buy Apple Stock. Here's Why

2 weeks ago 10

Dan Caplinger, The Motley Fool

Mon, February 23, 2026 astatine 3:22 AM CST 5 min read

Apple (NASDAQ: AAPL) has been a game-changing concern for semipermanent shareholders. Despite having held the rubric of the largest institution successful the satellite by marketplace capitalization for rather a while, the iPhone shaper managed to much than treble its stock terms implicit the past 5 years, posting an mean annualized maturation complaint of 16% on the way. That determination added astir $2 trillion to the tech giant's marketplace cap.

Yet adjacent with the stock's past success, there's a bully statement wherefore you astir apt don't request to bargain Apple stock. It's not due to the fact that of the company's deficiency of aboriginal maturation prospects. Rather, it's due to the fact that of a overmuch simpler crushed that affects a wide scope of investors.

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You mightiness deliberation that the champion statement not to bargain Apple banal is that it doesn't person the maturation prospects that it erstwhile did. Admittedly, a institution valued astatine $3.88 trillion mightiness not look to person overmuch country to ascent higher. But see conscionable however overmuch of a colossus Apple is from a fiscal perspective:

Apple has posted gross of $435 cardinal implicit the past 12 months. If you compared Apple's income to the gross home merchandise of countries astir the world, the tech elephantine would people successful the apical 40.
Apple had nett income of astir $118 cardinal during the aforesaid timeframe. The concern has benefited not conscionable from rising income but besides from greater interior efficiency, which has helped the institution boost its borderline show implicit time. Net borderline exceeded 27% according to its astir caller figures, up from little than 21% 5 years ago.
Apple's concern has produced escaped currency travel of implicit $123 cardinal successful the past 12 months. Nearly $92 cardinal of that has gone toward repurchasing Apple shares. The institution has made akin moves for years, and the effect has been a 25% driblet successful outstanding stock counts betwixt 2018 and today.
Even with those generous returns of superior to shareholders, Apple has astir $67 cardinal successful currency and short-term investments connected its equilibrium sheet.

Moreover, Apple has ambitious maturation plans. As CEO Tim Cook noted connected the astir caller quarterly league call, Apple continues to spot all-time records for its iPhone franchise arsenic good arsenic its services. Cook is arrogant of however the motorboat of the company's Apple Intelligence is going, with caller features coming retired astatine a dependable pace. Streaming video, the Apple Pay physics outgo platform, and the company's landmark App Store proceed to propulsion their value and lend to Apple's wide success. As the CEO enactment it, "Ï person each assurance that our champion enactment is yet to come."

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