Finding out what company has the highest stock price per share can be an informative, illuminating endeavor. Many investors make a hobby of tracking the large companies in the market; this helps them to learn which sector is performing best, how market leadership is changing, and where they may want to invest their own money. It is often a misconception that a high stock price is synonymous with a successful business, as excessive investor speculation can also drive up the price of a security. However, for this article, we will look at the underlying fundamentals of the company driving the highest stock price per share.
Apple Inc. currently has the highest stock price per share in the S&P 500 at $145.01. Its upward trajectory has been ongoing since 2014 and the company’s stock has risen more than 110% since then. This is partially due to the splash that Apple makes in new product development and the loyal fan base it has earned through its rigorous customer service. In the past five years, Apple has been revolutionizing itself, from its design to its products, providing ever-better consumer experience and customer service.
It is well known that Apple has the financial wherewithal to spend resources developing and marketing these new products. It has a cash balance of $121 billion and continues to make record profits year after year. It is an impressive feat that the company has managed to invest such resources in improving their products and services while also allowing their stock to rise. Thus, Apple’s balancesheet of healthy financials and stock prices has earned them their position as the highest stock price per share.
In addition to their financials, Apple’s leadership strategy has also been a driving force in the company’s accomplishment. CEO Tim Cook took over the company in 2014 and since then he has been credited with transforming the company’s culture by recognizing and responding to customer demands. This shift has been seen as hugely profitable: Apple’s customer satisfaction score, according to a survey, is rated as the highest in the industry.
Apple is well positioned to remain the highest stock price per share for the near future. With their financial muscle, customer service focus, and dynamic leadership, Apple is expected to continue dominating the market and remains a great stock option for investors.
Impact of COVID-19
In light of the Covid-19 pandemic, Apple’s stock prices have remained strong and despite the initial drop in March 2020, the company’s stock prices have been rebounding and continuing to show strength. This is largely because the crisis has forced customers and businesses to stay indoors and rely more heavily on technology, leading people to purchase more Apple devices such as iPhones and Macs. This surge in demand has enabled Apple’s share prices to remain unscathed despite the global crisis.
Furthermore, Apple’s services sector continues to grow during the pandemic, with subscriptions across all services exceeding 640 million. This is due to Apples confidence in its services- by introducing new services such as Apple TV+, Apple Music, and Apple Arcade and continuing to support other popular services like iCloud, Apple Watch, and Apple Pay. The growth in online services has been pushing Apple’s stock price since mid-May and is expected to continue doing so for the near future.
Risk Factors to Consider
Despite Apple’s impressive stock performance, investors should be aware of certain risks before investing in the company, namely the threat of competition. With the emergence of other technology giants and an ever-shifting marketplace, Apple’s monopoly on technology tends to be short-lived. Samsung has recently emerged as a competitor to Apple, launching its new explosiveNote20 series that is comparable-if not better-than Apple’s iPhone. Additionally, the increasing popularity of Huawei has been a point of concern for Apple. Firms like Google and Microsoft have also made significant gains in the industry, gaining a larger market share, driving down Apple’s prices.
Investment Opportunities
The high stock price of Apple allows investors to benefit from stock splits. The higher the price, the more potential a company has to issue a stock split and multiple investors chances to make money. This opportunity is also available to Apple, which recently split its stock 4:1 in August 2020. This move was seen as hugely successful by investors, allowing them to make more money on their Apple stock holdings due to the increased availability of shares.
In addition to stock splits, Apple’s dividend payments further present a great opportunity for investors. Investors who own Apple stocks receive a dividend payment four times a year which averages around $3. This has continued throughout the pandemic, showing the company’s commitment to its shareholders. The current dividend yield for Apple is 1.5%, making it one of the highest paying dividends from a large-cap stock.
Market Leadership
As of June 2020, Apple is the world’s most valuable company with a market capitalization of $1.8 trillion, making it the world’s first $2 trillion company. Furthermore, Apple represents 18.37% of the market value of the entire S&P 500 which further solidifies its position as a leader in the technology sector. It has been able to maintain its position for several years, emerging as one of the top performers in the market.
It is important to note that the rank of the world’s most valuable corporations shift often which opens the door for competition. However, Apple has managed to remain ahead of the competition due to its strong financials, innovative products, and world-renowned customer service.
Political and Economic Factors
Investors should be mindful of potential political risks that may affect Apple’s stock prices. A U.S.-China trade war and tensions between the two countries could impact Apple’s growth and stock prices due to their reliance on the Chinese market. This could result in an increase in tariffs on Chinese imports, making Apple’s products more expensive and putting a strain the company’s margins.
Furthermore, the economic crisis caused by the Covid-19 pandemic has forced governments to impose lockdowns, causing a fall in consumer demand and spending. This has forced many companies to layoff workers and close stores. Apple is not immune to this and its ability to recover from the economic downturn and maintain its stock price will be of great value to investors.
Final Thoughts
Today, Apple is the company with the highest stock price and shows no sign of slowing down. It’s ability to innovate and revolutionize technology, combined with its world-class customer service, has positioned the company as the leader in the industry. Despite potential risks of competition and political turmoil, Apple’s stock remains strong and offers investors a great opportunity to make money.
