Fundamental Analysis: MSFT - AAPL - DELL
Discover the financials and businesses context for these Information Technology Giants - Second installment for Trading based on Stages
While technical analysis, including chart patterns and indicators, provides valuable insights into short-term price movements, understanding the fundamentals of a company is crucial for long-term investment success.
Here's why it's important to study the fundamentals:
1. Long-Term Perspective: Fundamental analysis helps you assess a company's intrinsic value, which is often a better predictor of long-term performance than short-term price fluctuations. By understanding a company's business model, competitive advantage, and financial health, you can make informed decisions about its long-term potential.
2. Identifying Potential Risks and Opportunities: Fundamental analysis can help you identify potential risks, such as increased competition, regulatory hurdles, or economic downturns. It can also highlight opportunities, such as new product launches, acquisitions, or strategic partnerships.
3. Making Informed Investment Decisions: By combining technical and fundamental analysis, you can make more informed investment decisions. For example, if a company's fundamentals are strong but the stock price is undervalued, it may be a good buying opportunity. Conversely, if a company's fundamentals are deteriorating, even if the technical indicators are bullish, it may be time to sell.
AAPL and MSFT are stocks analyzed every week in the Weekly Compass and in the Support and Resistance Levels; both are showing technical weaknesses, is that consistent with their fundamentals? This edition analyzes their businesses, the latest earnings report, the evolution of financial figures and ratios; and also the competitive context. DELL is also included in the analysis, it has been a popular stock lately, and many people don’t have references of how its revenue and ratios have evolved.
At the end of this edition you will find more elements to consider for the Stages approach for trading; and for definitions of financial indicators, you can access the educational content and read the conclusions below the tables for each company in this same document.
Let’s begin:
Apple Inc. (AAPL) is a multinational technology company that specializes in consumer electronics, software, and online services. Apple is recognized for its innovative product design and user-friendly interfaces. Its product portfolio includes the iPhone, Mac computers, iPad tablets, Apple Watch wearables, and Apple TV digital media players. The company also develops and maintains its own operating systems, namely iOS, macOS, tvOS, and watchOS, which power its devices and contribute to a seamless ecosystem.
Business Context: