Apple Stock Is Rising Wednesday: Here's Why
Apple Inc. shares rose 3.43% to $237.60 after a U.S. judge ruled that Google can continue payments to Apple for preloading its products. The ruling allows Google to maintain its default search engine status on Apple devices, which is crucial for driving search engagement. Additionally, Apple announced the opening of its first store in Pune, India. Investors should consider Apple's average annual revenue growth of 4.28% and a forward P/E ratio of 28.9 when evaluating the stock's potential.
Apple Inc AAPL shares are trading higher Wednesday after a U.S. judge ruled that Google will not be required to cease payments to the company for preloading Google products.
What To Know: U.S. District Judge Amit Mehta on Tuesday issued a ruling in the Google online search monopoly case that calls on the company to share data with competitors to expand competition in online search.
Mehta also ruled that Google will not be required to divest Google Chrome or halt payments to Apple to be the default search engine on the Safari browser on Apple devices.
“Google will not be barred from making payments or offering other consideration to distribution partners for preloading or placement of Google Search, Chrome, or its GenAI products,” Mehta wrote in the decision.
Google pays billions of dollars per year to be the default search engine on various browsers. The company’s deal with Apple allows it to drive search engagement with the iPhone user base.
Apple announced on Wednesday that it will open a new Apple Store in Pune called Apple Koregaon Park on Thursday. The store will be the company’s first in Pune and fourth in India.
Is AAPL A Good Stock To Buy?
When deciding whether to buy a stock, there are some key fundamentals investors may want to consider. One of these factors is revenue growth. Buying a stock is essentially a bet that the business will continue to grow and generate profits in the future. Apple has reported average annual revenue growth of 4.28% over the past five years.
It's also important to pay attention to valuation when deciding whether to buy a stock. Apple has a forward P/E ratio of 28.9. This means investors are paying $28.9 for each dollar of expected earnings in the future. The average forward of Apple's peers is 87.11.
Other important metrics to look at include a company's profitability, balance sheet, performance relative to a benchmark index.
AAPL Price Action: Apple shares were up 3.43% at $237.60 at the time of publication Wednesday.
