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And they said it couldn’t be done.
At the time, Wall Street and Big Media thought the idea was crazy.
So, of course, when that came true just a little more than two years ago to the day, I did a victory lap in these pages.
Well, here I go again…
Turns out, my forecast was way too conservative.
Apple is on the verge of marking another milestone for the history books. It is quickly closing in on a $2-trillion market value.
Just think about that for a moment…
If you’re anything like me, then you’ve lost count of the times over the last couple of years that the so-called “experts” said Apple was “overpriced” and set to go into the tank.
With that in mind, let me show you an upcoming catalyst that will push Apple well beyond a $2-trillion market cap…
Courting New Investors
Now then, Apple is really lowering the entry price for retail investors.
On August 24, the company will give each current stockholder three shares for every one share they own. Dividing the stock price by four, this will bring the AAPL stock down to about a $100 price.
Meanwhile, any new investors looking to get in on the action on August 24, can buy four shares for the (current) price of one.
The upcoming split leaves room for many new players to get into the game without having to spend an arm and a leg.
It’s a great opportunity for a “broader base of investors” to get some skin in the game. That’s especially true for young people who are just getting started in investing and love the company.
And who wouldn’t want to… on the heels of such strong third-quarter earnings?
Keep in mind, many thought that COVID was king for the months of April, May, and June. And for the most part, the global economy was shut down during that season.
The story from Big Media is that nobody had any incentive to snag a new iPhone, iPad, Mac, or Apple Watch.
We were supposed to be too busy boarded up in our homes scared of COVID.
But Apple bucked the market, with a 2% quarterly rise in iPhone revenue, a 22% hike for the Mac and a 31% jump for the iPad.
But as I’ve told you many times, technology is the real hero in the COVID era. It’s kept us “connected” to the outside world.
And more importantly, it’s allowed employees to work efficiently while on the couch in their pajamas.
So, Apple has been nothing short of a tech powerhouse, even in a Covid 2020.
But these strong third-quarter numbers and its soon-to-come split aren’t the only reasons why I’m singing its praises…
The Contactless Payments Revolution
There’s another major reason Apple seems to keep on winning over the years: fintech. In 2014, the company took a dive into the fintech market with its Apple Pay service.
In 2019, it partnered with Goldman Sachs to launch the Apple Card, which currently has a 3.1 million userbase in the U.S.
And now, the company just recently dropped a cool $100 million to buy Mobeewave. A smart move on Apple’s part.
The freshly purchased start-up provides near-field communications (NFC) tech that turns your smartphone into a payment terminal… (Its ability is similar to the hard drive of Jack Dorsey’s Square, which now has a $55 billion market value.)
So what does all this mean for Apple?
The coolest thing for investors and consumers alike is that Mobeewave allows users to tap credit cards on the back of a smartphone to process payments.
Even better, the Mobeewave app also allows users to make payments by tapping their smartphone against another. No external hardware is needed!
It’s an example of the growth ahead for what is known as contactless payments. MarketsandMarkets says this part of fintech will grow nearly 80% through 2025 when it will be worth $18 billion.
While Apple is making a lot of strong moves in the short term… It’s primed to carry this momentum into 2021 – and beyond.
And if you’ve been following along with Strategic Tech Investor for some time, you’ll know that I keep my eye on the prize — the long haul.
A 5G iPhone
And Apple’s upcoming move only reaffirms my initial sentiments on the stock.
The Silicon Valley legend is expected to launch its 5G iPhone in time for the crucial Christmas shopping season.
Let me explain the domino effect I see here.
I’m expecting consumers to go for the 5G iPhone, and for this iconic product to be a catalysts for this next-gen wireless broadband format.
Combine the pent-up consumer demand with the potential of a broadly administered COVID-19 vaccine in 2021 and you have the making for a nice run in the stock.
It’s what I’d call a “perfect storm.”
My stance on Apple has remained consistent from the very beginning…buy, buy, buy.
Like I said, hitting a $2 trillion market cap is a great milestone. But there’s plenty of upside ahead after that.
I’m saying Apple is a safe bet for the long haul… especially now that investors can jump in later this month at a fraction of its normal stock price.
Cheers and good investing,
Michael A. Robinson