Apple Is the Largest Company in the World. Here's Why Investors Should Be Wary of the Stock in 2025.

Core Viewpoint - Apple is a leading global company with significant revenue and net income, but investment decisions require careful consideration of its valuation and future growth potential [1][2]. Financial Performance - In the last fiscal year, Apple generated $391 billion in revenue and achieved a net income of over $90 billion, representing a 24% profit margin [1]. - Apple's market value is currently $3.68 trillion, making it the largest company in the world, surpassing Nvidia, Microsoft, Alphabet, and Amazon [2]. Investment Considerations - Reasons to invest in Apple include its strong financial performance, consistent dividend growth, and potential in artificial intelligence [5]. - The company has seen significant stock gains in recent years, with notable annual increases such as 80.8% in 2020 and 48.2% in 2023, although it also experienced a loss of 26.8% in 2022 [4]. - Concerns about investing in Apple stem from its high valuation and the absence of revolutionary new products in recent years, which may affect future growth [3][4]. Dividend and Share Buyback - Apple has a dividend yield of 0.41%, with an average annual growth rate of about 6%, increasing from $0.51 per share in 2015 to $0.99 per share currently [5]. - The total yield to shareholders, including dividends and share buybacks, is approximately 3% [5]. Future Outlook - The company's ability to introduce new products and maintain growth is uncertain, especially given its current market capitalization [6]. - Investors may consider starting with a small position or incrementally increasing their investment in Apple, depending on their risk tolerance and market conditions [7].