3 Reasons to Buy Apple Stock
Since falling from the $700-plus heights of September 2012, Apple (NASDAQ:AAPL) stock has gained a reputation for volatility. The last several months have not helped Apple’s reputation in this regard, since the stock dipped below $400 in April before its $100 billion shareholder capital return plan and dividend increase briefly propelled the stock above $450.
Despite the anticipated “June bounce” from the Worldwide Developers Conference last week, Apple stock finished the week down 3.31 percent at $430.05. With so many naysayers doubting Apple’s viability, it’s a good time to reiterate three of the Cupertino-based company’s fundamental strengths.
1. The Apple Brand
Last year Interbrand ranked Apple as one of the most valuable brands in the world, second only to Coca-Cola (NYSE:KO). Interbrand notes: “Apple is the archetypal emotional brand. It’s not just intimate with its customers, it is beloved. For many people, it embodies the very essence of imagination, design, and innovation. Apple has a story and a meaning; it lives that story and meaning, and lives it well.”
Much of this brand loyalty can be directly attributed to Apple co-founder and CEO Steve Jobs. Perhaps Jobs expressed Apple’s future potential the best in his 2011 resignation letter, when he wrote, “I believe Apple’s brightest and most innovative days are ahead of it.”