Investment Advice: Three Compelling Arguments for Immediate Purchase of Apple Shares
In the dynamic world of tech, Apple (AAPL) continues to hold its ground as one of the most iconic and beloved brands on the planet. With a strong cash flow and a booming services business, the company is poised for growth in the long term.
Apple's services business, including Apple TV+, Apple Wallet, and subscription services, has surpassed $1 billion in subscriptions, strengthening its revenue base beyond hardware sales. This segment, which accounted for a record high of $26.6 billion in Q2 2025, has a gross margin of nearly 76%, double that of hardware.
The company's innovation pipeline, especially in wearables like the Vision Pro and Apple Watch, and AI-enhanced services, is expected to drive future growth. Analysts project Apple's earnings per share (EPS) to rise exponentially through 2030, with a potential stock price reaching around $356.75 in the long term, implying a 67.1% gain assuming a P/E ratio of 20.
The consensus among 46 Wall Street analysts is to buy Apple shares, with some strong buy ratings and a 12-month price target around $230, reflecting about a 7% increase from current levels, signaling moderate upside potential in the near term.
However, near-term risks should not be overlooked. Apple's stock performance in 2025 has lagged behind other tech giants, with an 18% decline year-to-date and trading below key moving averages. Sluggish iPhone sales, ongoing legal pressure, and underperformance relative to peers suggest caution.
Regulatory and legal risks remain, with the U.S. Department of Justice’s antitrust lawsuit against Apple proceeding, which could pose challenges to its business model and profitability. Apple is also working to define its artificial intelligence strategy, which may delay some anticipated growth from AI-driven products and services.
In the face of these challenges, Apple has shown resilience. The company was the first publicly traded stock to reach $1 trillion, $2 trillion, and $3 trillion in market capitalization. Since fiscal 2012, Apple has returned nearly $1 trillion to shareholders through stock buybacks and dividends.
In Q2 2025, Apple's board rubber-stamped another $100 billion in stock buybacks, and the company reported $95.4 billion in revenue, an 8% increase in diluted earnings per share to $1.65.
Investors bullish on Apple's long-term innovation and services growth might consider buying shares now to capture upside over the next several years. Those more risk-averse may wait for clearer signs of a near-term breakout or resolution of regulatory issues.
Thus, it can be a good time to buy Apple shares in 2025 for investors with a medium to long-term horizon, acknowledging some volatility and challenges in the short term. Apple's valuation seems fair for a company with unparalleled brand loyalty, prolific cash flow, and a growing ecosystem of high-margin services.
- Investors who believe in Apple's long-term growth, driven by its services business and innovative pipeline, might consider buying shares now to capture potential upside over the next few years.
- Apple's services segment, which includes offerings like Apple TV+, Apple Wallet, and subscription services, has demonstrated significant growth, surpassing $1 billion in subscriptions, and boasts a gross margin nearly double that of hardware.
- Analysts predict Apple's earnings per share (EPS) to rise exponentially through 2030, with a potential stock price reaching around $356.75 in the long term, implying a 67.1% gain, indicating positive returns for investors who invest in the stock market, especially in technology companies like Apple.
