Business venture

Apple Stock Returns to Headlines on Business Venture Updates

The company revealed details about Apple Business Essentials

Apple Inc. (NASDAQ:AAPL) is the world’s largest company by market company, with a valuation of $2.8 trillion. the massive tech name specializes in consumer electronics, software and online services. AAPL is also one of America’s Big Five information technology companies, alongside Alphabet, Amazon, Meta and Microsoft. At last glance, AAPL is trading up 2.2% at $178.17.

Apple launched its latest new service, Apple Business Essentials, on March 31, which is now available to small businesses in the United States. The service combines device management, 24/7 Apple Support, and iCloud storage into subscription plans. AAPL also unveiled new AppleCare+ options for Business Essentials that can be added to any plan. Additionally, the tech name revealed that a two-month free trial will be available to all current customers, including those using Apple Business Essentials in beta.

Apple stock is up about 44% year over year and is up 46% since hitting a 52-week low of $122.25 last May. However, shares of AAPL have been at breakeven year-to-date and are down 2% since hitting a yearly high of $182.94 earlier this year. Additionally, Apple offers a dividend yield of 0.50% with a forward dividend of $0.88.

Apple stock is currently fundamentally overvalued based on its growth rate. Although AAPL has released extraordinary numbers for fiscal year 2021, increasing its revenue by 33%, the tech company is expected to see that rate slow significantly in the coming years.

AAPL is currently trading at a high forward price-to-earnings ratio of 29.94 and an inflated price-to-sell ratio of 7.91. Nonetheless, the tech name should continue to grow its long-term business, making it a viable and relatively safe option for long-term investors despite the short-term valuation.

Finally, short-term options traders have been much more biased lately. This is Apple Schaeffer stock’s put/call open interest ratio (SOIR) of 1.05, which is above 94% of last year’s readings.

Analysts, however, are extremely optimistic. Heading into Monday’s trading, 20 of the 21 hedging brokerages are sporting a “buy” or “strong buy” rating.