Stock News

Is Apple losing its edge?

Our Risk Signals chart shows that AAPL stock entered a long-term risk trend that cost investors big. Our warnings saved participating investors over $280!

Our Risk Signals chart shows that AAPL stock entered a long-term risk trend that cost investors big. Our warnings saved participating investors over $280!

Though still undeniably a tech heavyweight, Apple seems to have lost its luster – both among consumers and in the investment world. Earlier this month, TechCrunch reported that Android had made considerable headway in the realm of smartphones, accounting for 52 percent of the U.S. marketshare based on figures released by Kantar Worldpanel on July 1. Though the new report concedes that Apple's recent partnership with T-mobile will likely help the iconic brand maintain a healthy standing in this arena, it's clear that the company that could seemingly do no wrong is starting to slip.

So, what does this mean for investors? Simply that Apple is no longer the sure thing it once was. Forbes contributor and investment analyst Bert Dohmen has chronicled the organization's faltering market standing since its stock prices reached an impressive peak of $705 in September 2012, and – in contrasting the figures from the current fiscal year and the last – the analyst does not paint a compelling picture for anyone considering further investment in the widely beloved brand.

"Apple is still a good company with good products. But during the great growth period it had virtual monopolies on its products such as the iPod, iPhone and iPad. Profit margins were sky high. Now there are many competitors for these products," writes Dohmen. 

Citing a 10 percent decline in profit margins over the course of a year and a quickly diminishing growth rate, Dohmen argues that there are few objective reasons remaining to back the brand.

Even brands that appear untouchable may prove to be a riskier investment than you'd expect. But, with portfolio risk management tools like SmartStops, you can limit losses and protect profits by remaining abreast of market fluctuations that can presage damaging drops in value. Since 2012, we have saved investors over $280 thanks to our Risk State analysis. As you can see in the attached photo, our Risk Signals accurately showed that AAPL stocks were entering a downward progression that caused many investors to lose big money – but not ours. This example demonstrates the real-world effectiveness of our system.

Click here to learn more about how SmartStops can empower investors who value the role of technology in risk assessment and management.

Categories: Stock News

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