Apple (NASDAQ:AAPL) is an old tech company, sure, but it’s still willing to tweak its business model. Finding new ways to keep the customers happy should result in more revenues and, hopefully, higher prices in AAPL stock.
The fact is, millennials and Generation Z want their products delivered fast. They grew up with one-day shipping being the norm.
Investors shouldn’t judge this as being good or bad. It’s best to just respond to what you see and adjust your investing strategy accordingly.
Without a doubt, Apple’s management is well aware of this trend. The onset of the novel coronavirus has made fast delivery even more important in 2020. Fortunately, the company is responding to the strong demand for prompt shipment, and AAPL stock traders should be aware of this.
Adjustments like these are part of what make it one of those stocks that seemingly always manages to grow no matter how big it gets — the kind I like to focus on with Growth Investor.
AAPL Stock at a Glance
As you may be aware, there was a forward share split in AAPL stock this year. This made the stock more appealing to people with smaller accounts.
Therefore, AAPL stock isn’t as expensive from that standpoint. However, the question remains as to whether AAPL is expensive in terms of valuation. In other words, is it overpriced on a relative basis?
The stock certainly has forward momentum, but that doesn’t necessarily make it expensive. From March 23, the peak of the coronavirus crisis, until Oct. 9, AAPL has marched upwards in a fairly orderly manner.
There was a time in late August when AAPL stock got ahead of itself. However, that bubble was popped quickly in September. Thus, things are back to normal in October and the bulls are in control but not too euphoric. That’s the type of bull run that’s sustainable over the long term.
Leveraging the Network
Apple’s network of retail stores is quite extensive in the United States. That’s an advantage because customers don’t have to drive very far to get to an Apple store.
However, the rise of e-commerce over the past decade has permanently altered the landscape of the retail sector. Many customers enjoy the convenience of having products shipped directly to their homes or workplaces nowadays.
The coronavirus only accelerated this trend. Consequently, Apple’s broad network of physical retail stores isn’t really such a big advantage. Or is it?
Actually, Apple has managed to adapt those retail locations to customers’ preference for e-commerce. Reportedly, the company intends to use some of its stores as distribution centers for the purpose of shipping its products to consumers. In that regard, despite its tech titan status, Apple has managed to stay relevant and it will continue to do so for many years ahead. But if you’re looking for “the next Apple,” then you need to seek investments like my “AI Master Key.”
How This Is Different
Apple began to test this strategy with a small number of stores in June and July. Now, the company is expanding this program out to more (though not all) of its retail locations in the U.S. and Canada.
Typically, Apple would ship a product to a customer from a warehouse located across that customer’s region. Or, Apple might just ship the product directly from China.
The problem with that delivery model is that some customers don’t live close to an Apple distribution center. Since there are so many retail locations, it makes perfect sense to turn them into mini distribution hubs.
Obviously, this new plan should allow for faster delivery times in many cases. This should appeal to generations of shoppers who prefer shorter wait times.
The timing is ideal for the company to roll out this program as Apple will be launching a number of new products in the near future. These include four new 5G-enabled iPhones, over-ear headphones as well as a new iPad Air.
It is true that AAPL stock has posted consistent gains over time. That’s not necessarily an indication that the stock is overpriced, however.
As long as the company continues to adapt to consumer preferences, there’s no reason for AAPL stock’s momentum to stall.
If you’re looking for a newer company with Apple-like potential, it’s vital that you find one with a strong foundation in future-moving themes. With that said, there’s an AI play with “Apple-like” potential that far too many investors are overlooking right now. Their oversight is your path to significant wealth.
The “AI Master Key” is a lesser known machine learning leader that will revolutionize countless industries. From healthcare to agriculture, finance to cybersecurity, this company will be at the head of it all. It’s the key to unlocking the most significant technological revolution in human history and all the great profits that come with it.
But that’s just the tip of the iceberg for Growth Investor subscribers. Backed by the strongest research team on the market and my innovative approach to investing, Growth Investor has outperformed the S&P by a factor of 3-to-1. It’s where you can find groundbreaking growth plays like my AI Master Key long before they become household names.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.