50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

If You Invested $1,000 In Apple Stock When Apple Card Was Launched 4 Years Ago, Here's How Much You'd Have Now

Published 23/08/2023, 08:33
© Reuters If You Invested $1,000 In Apple Stock When Apple Card Was Launched 4 Years Ago, Here's How Much You'd Have Now
GS
-
QQQ
-
AAPL
-

Benzinga - by Shanthi Rexaline, Benzinga Editor. Apple, Inc. (NASDAQ:AAPL) firmed up its foothold in the financial services arena with the launch of the Apple Card four years ago. The company had previously marked a foray into the sector with Apple Wallet and Apple Pay, launched in 2012 and 2014, respectively.

Apple Card, a credit card issued by Goldman Sachs Group, Inc. (NYSE:GS), debuted in the U.S. on Aug. 20, 2019, exclusively for U.S. consumers.

Linked to Apple Pay, it offers features like no fees, lower interest rates, and cash back on purchases. Integrated into the Wallet app and optimized for iPhone and iPad, users can set it as their default card for convenient in-store and online Apple product purchases via Apple Pay. While it functions like a traditional card, the titanium physical version covers non-Apple Pay transactions.

In April, Apple introduced a high-yield savings account tied to the Apple Card, amassing over $10 billion in deposits by August.

The Apple Card contributes to Apple’s Services business, a pivotal revenue generator. The Services segment achieved record revenue in the recent June quarter results, boosting profitability with its higher margins. However, Goldman Sachs’ “Platform Solutions,” including Apple Card, saw a net loss of $667 million in the same quarter, largely due to increased credit loss provisions and operational expenses.

Rumors of Goldman exiting the partnership due to its unattractive returns began doing the rounds earlier this year, although nothing has been confirmed officially yet.

Apple’s push deeper into the financial services industry is apparently due to its desire to capitalize on the rapidly evolving banking industry, which is bolstered by the integration of technology for improving user experience.

Hypothetical Returns From Investing In Apple: If an investor had put in $1,000 in Apple on Aug. 20, 2019, when the Apple Card was launched, he would have 19.6 shares. The stock ended the day at a split-adjusted price of $51.15.

The same 19.6 shares would be worth $3,465 (based on Tuesday's closing price of $177.23). The investment would have fetched a return of roughly 247% over a four-year period.

In comparison, the broader S&P 500 Index generated a return of 51.3% and the Invesco QQQ Trust (NASDAQ:QQQ), which tracks the Nasdaq 100 Index, added 99.3%.

Apple ended Tuesday's session at $177.23, up 0.79%, according to Benzinga Pro data. The stock is up about 37% year-to-date.

Read Next: Apple Card, Next Stop: India! iPhone-Maker Discusses Plans With RBI, HDFC Bank

Photo by Primakov on Shutterstock

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.