Do risk outweigh possible reward of holding equity long term

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Apple Inc.: A Short SWOT Analysis

Much to the delight and relief of investors, Apple (AAPL) shares are finally regaining their luster, and are currently trading near their 52-week high just north of $100. (The stock had a 7-for-1 split in early June.) This marks a big change from a year ago, when Wall Street appeared to sour on the tech giant amid heightened competition and a short-lived bottom-line retreat. And we see the momentum persisting through fiscal 2014 (ends September 27th) and into next year, as the company benefits from a powerful upgrade cycle, including the likely launch of a next-generation smartphone, the iPhone 6, sometime this fall. Indeed, double-digit earnings advances look to be back in the cards for this behemoth, which should keep the mega-cap stock heading in the right direction. With this in mind, is now a good time for investors to initiate or add to their positions? Or do the risks outweigh the possible rewards of holding the equity long term? In this brief article, we will attempt to address these questions by taking a look at Apple's business and performing an easy-to-follow SWOT analysis of the company, evaluating its Strengths, Weaknesses, Opportunities, and Threats.

Reference no: EM131352984

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