Select a publicly traded company that trades on the New York Stock Exchange (NYSE) or on the
NASDAQ to analyze. Please note that it is usually easier to find more recent information on larger or
wellknown companies. The analysis in your essay should answer the following questions:
- Why did you choose to analyze this company?
- What were the opinions of some of your referenced articles on this stock as an investment?
Please note that it is best if there is at least some disagreement on this question.
- Is an investment in the stock a higher or lower risk investment than an investment in other stocks
as a whole? Why or why not?
- How large is the company in relation to its competitors?
- How fast is the company growing?
- How profitable is the company?
- What is the company’s price-to-earnings ratio? What does this tell you about the company?
- Does it have a dividend? If so, what is the dividend yield?
- Does the future of the company appear to be promising?
- On which exchange does the company trade, and what is its ticker symbol?
- Key Point: Do you recommend or not recommend this company’s stock as an investment for
investors that are considering stock investments? Why?
Full Answer Section
Company Overview
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell personal computers. The company's first product, the Apple I, was a limited success. However, the introduction of the Apple II in 1977 established Apple as a major player in the personal computer industry.
In the 1980s, Apple continued to innovate with the introduction of the Macintosh computer, which featured a graphical user interface (GUI) that was revolutionary at the time. The Macintosh was initially successful, but it eventually lost market share to Microsoft's Windows operating system.
In the 1990s, Apple struggled to keep up with the competition from Microsoft and other PC makers. The company also suffered from internal turmoil, including the ouster of Jobs in 1985. However, Jobs returned to Apple in 1997 and began a turnaround that would make the company one of the most successful businesses in the world.
Under Jobs's leadership, Apple introduced a series of successful products, including the iMac computer, the iPod portable media player, the iPhone smartphone, and the iPad tablet computer. These products helped to revitalize the company and make it the most valuable company in the world in 2012.
Jobs died in 2011, but Apple has continued to be successful under the leadership of Tim Cook. The company has continued to introduce innovative products, such as the Apple Watch smartwatch, the AirPods wireless earbuds, and the Apple Pay mobile payment system. Apple has also expanded into new markets, such as streaming services and wearable technology.
Financial Analysis
Apple is a financially strong company. It has a large cash hoard, a strong balance sheet, and a healthy profit margin. The company is also a leader in innovation, and it is well-positioned for future growth.
Apple's stock has been a strong performer in recent years. The company's stock price has increased by over 1,000% since 2009. Apple's stock is considered to be a relatively safe investment, and it is a popular choice for investors of all types.
SWOT Analysis
Strengths
- Strong brand recognition
- Innovative products
- Healthy balance sheet
- Large cash hoard
- Strong leadership
Weaknesses
- Reliance on a few key products
- High product prices
- Limited exposure to emerging markets
Opportunities
- Growing market for wearable technology
- Expansion into new markets, such as streaming services and home automation
- Continued innovation
Threats
- Increased competition from other technology companies
- Economic downturn
- Regulatory challenges
Conclusion
Apple is a strong company with a bright future. The company is well-positioned to continue to innovate and grow in the years to come. Apple's stock is a relatively safe investment, and it is a popular choice for investors of all types.
I hope this analysis is helpful. Please let me know if you have any other questions.
Sample Answer
I will select Apple Inc. (AAPL) as the publicly traded company to analyze. Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five technology companies in the U.S. information technology industry, along with Amazon, Google, Meta (Facebook), and Microsoft.