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Everything You Need to Know About Apple (AAPL) Stock in Five Charts

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Apple (AAPL - Free Report) has seen its stock price tumble 19% over the last month as part of the larger tech-driven selloff. Apple itself has been a significant catalyst for the overall market downturn as investors assess what’s next for one of the world’s most valuable companies.

With that said, it is hard to imagine that Apple won't turn things around at some point. So, let’s look at the bigger picture through a series of charts.

Quick Overview

Apple’s total Q4 revenues jumped 20% to reach $62.9 billion, which came in well above our Zacks Consensus Estimate that called for $61.49 billion. Meanwhile, the company’s adjusted quarterly earnings soared 41%. Plus, iPhone revenues, which is still Apple’s most important unit, surged 29% to reach $37.185 billion.

However, the large jump in iPhone revenues was once again driven by higher selling prices. Overall, iPhone unit sales were roughly flat year over year. Apple’s iPhone segment has been trending in this direction for some time. Still, it didn’t prepare investors for the fact that Apple announced that it would stop breaking down iPhone unit sales.

Stock Price Movement

The first chart shows us how quickly shares of AAPL have plummeted since the start of October. More specifically, Apple stock has dropped roughly 20% since it reported its fiscal Q4 financial results on November 1.

 

 

 

Clearly, investors have reason to be concerned about Apple stock at the moment. We should also remember that the rest of the FAANG stocks—Facebook (FB - Free Report) , Amazon (AMZN - Free Report) , Netflix (NFLX - Free Report) and Google-parent Alphabet (GOOGL - Free Report) —have all fallen recently.

With that said, the chart below, which shows AAPL’s price movement over the last 25 years, paints a much different picture. Apple stock has gone on an insane climb following the dot-com bust. If we look a little closer, we can see that shares of Apple have dropped at certain points. But the recent downturn seems as though it could end up being nothing more than a blip on the radar.

 

Revenue Growth

Apple introduced the iPhone in January of 2007. The tech power went on to sell 1.39 million iPhone units during fiscal 2007 to help the company pull in $24 billion in full-year revenues. Three years later, in 2010, Apple posted fourth quarter revenues of $20.34 billion on the back of 14.1 million iPhones sold in Q4 alone.

The revenue growth chart below helps us see just how quickly Apple’s overall revenue growth soared.

 

 

Net Income

We can also see that along with Apple’s revenue growth came huge profits, which aren’t likely to fall anytime soon.

 

 

Valuation

The last chart we will take a look at shows us Apple’s current valuation picture. AAPL stock is currently trading at 13.1X forward 12-month Zacks Consensus EPS estimates, which represents a discount compared to the S&P 500’s 15.8X. Plus, when we jump back over the last 10 years, we can see that Apple’s valuation picture is hardly stretched at the moment—driven, in part, by Apple’s recent selloff.

 

 

Bottom Line

The charts we have just looked at help us see that Apple has been an amazing company and stock despite its November downturn. Yet, the firm’s decline could continue with our current Zacks Consensus Estimate calling for Apple’s fiscal 2019 revenues to climb by just 4.95% to reach $278.75 billion.  

We need, however, to remember that the law of large numbers makes it harder to post massive year-over-year growth. Nonetheless, Apple looks as though it could be headed into a new chapter in its storied history as it leans more heavily on its services business to challenge the likes of Spotify (SPOT - Free Report) and PayPal (PYPL - Free Report) .

Plus, let’s not forget that Apple is expected to launch its stand-alone streaming TV service in 2019 to take on Netflix and soon enough Disney (DIS - Free Report) and AT&T (T - Free Report) .

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