Apple is home to some of the world's most coveted products, including the iPhone, Air Pods, the iPad, and its Mac lineup, to name a few. The high demand for its tech offerings drove the company to report revenue and operating income growth in its latest quarter despite significant declines in consumer spending throughout the industry.
In Q4 2022, the iPhone manufacturer posted revenue of $90.15 billion, an 8.1% year-over-year rise and $1.38 billion more than previous analysts' forecasts. Operating income increased 4.6% to $24.89 billion.
Moreover, Apple has proven its position as one of the best growth stocks out there, with its shares rising 249% in the last five years despite a 19% dip in 2022. In fact, stock market star Warren Buffett has put 39.2% of Berkshire Hathaway's portfolio into Apple stock, giving Berkshire a 5.8% stake in the company worth $135.3 billion.
In the coming year, reports say Apple will enter the $25 billion augmented reality/virtual reality (AR/VR) market with a new AR/VR headset, fill out its Mac lineup with a larger iMac and beefier Mac Mini, and further grow its services revenue from recent price hikes. With its long-term plans to venture into even newer areas, such as folding phones and electric vehicles, Apple will likely continue to see significant gains for years to come.
With $111 billion in free cash flow as of Sept. 30, a price-to-earnings ratio of 24, and some exciting developments in 2023, Apple is a screaming buy this December in the run-up to the new year.
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