Apple (NASDAQ: AAPL) The company’s stock has struggled many times since its IPO in 1980. After its board fired Steve Jobs in 1985, the company spent years in the wilderness. It suspended dividend payments in 1996 and was close to bankruptcy when it brought Jobs back in 1997.
Shortly after, Apple Stock has embarked on a run that has made it one of the best-performing stocks in history, illustrating how innovation can dramatically improve a company’s fortunes.
Apple’s Stock Growth Since Jobs Return
If someone had bought $1,000 worth of Apple stock when Jobs returned in February 1997 and held on to that position today, that position would be worth about $1.8 million. That figure assumes that this hypothetical investor had reinvested his or her dividend income, which Apple reinstated in 2012.
Jobs’ first big decision after his return was to integrate the Mac ecosystem into the broader tech world, convincing Microsoft to invest $150 million in Apple and develop and support a Mac-compatible version of its popular Office software.
He also set out to create an Apple ecosystem, revamping the Macintosh, launching the iMac in 1998, and releasing a new MacOS in 2001. The company gained popularity by launching the iPod music player in 2001 and opening Apple Stores and iTunes Stores shortly after.
But the innovation that truly transformed Apple was the iPhone, launched in 2007. It paved the way for the modern smartphone industry and removed the need for many people to own a PC. The iPhone has been so successful that it now accounts for the majority of Apple’s revenue.
Apple’s pace of innovation slowed with Jobs’ death in 2011. Now it’s competing more directly with devices and apps that use AlphabetThe Android operating system and with most of its megatech competitors in the artificial intelligence field.
Nevertheless, its continuous innovations have allowed it to repeatedly become the world’s largest company by market capitalization and to position itself among the top three today. Thanks to products such as the iPhone and its vast ecosystem, Apple’s stock price is expected to continue to grow.
Should You Invest $1,000 in Apple Right Now?
Before you buy Apple stock, consider this:
THE Motley Fool, securities advisor The team of analysts has just identified what they believe to be the 10 best stocks for investors to buy now…and Apple wasn’t one of them. The 10 stocks selected could produce monster returns in the years to come.
Consider when Nvidia made this list on April 15, 2005…if you had invested $1,000 at the time of our recommendation, you would have $759,759!*
Securities Advisor provides investors with an easy-to-follow blueprint for success, including portfolio building advice, regular analyst updates and two new stock picks each month. Stock Advisor the service has more than quadrupled the return of the S&P 500 since 2002*.
*Stock Advisor returns as of June 24, 2024
Suzanne Frey, an executive at Alphabet, is a member of the board of directors of The Motley Fool. Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a position in the stocks mentioned. disclosure policy.
If You Invested $1,000 in Apple Stock 27 Years Ago, Here’s How Much You’d Have Today was originally published by The Motley Fool
