Something’s cooking in Cupertino. I’m referring, of course, to Apple (AAPL 1.27%), which is based in Cupertino, California.
Apple CEO Tim Cook all but told investors to circle their calendars for Wednesday, Feb. 19, 2025 in a recent social media post. The world’s largest company by market cap is expected to make a big announcement on that date. Should you buy Apple stock hand over fist before Feb. 19?
Adding to the Apple family
Last week, Cook posted on X (formerly Twitter) that a key product launch was imminent. Unsurprisingly, he was cryptic about what the new product would be.
Get ready to meet the newest member of the family.
Wednesday, February 19. #AppleLaunch pic.twitter.com/0ML0NfMedu
— Tim Cook (@tim_cook) February 13, 2025
What is the most likely candidate for Apple’s “newest member of the family?” Probably the best bet is an updated version of the iPhone SE. It’s the cheapest iPhone — and the only one that still features a physical “home” button, and it’s overdue for a refresh.
There are other possibilities, though. Apple could be preparing to introduce a new MacBook Air. Additional alternatives include the next generation of AirTags, a new Apple-TV box, or a redesigned iPad Air Magic Keyboard.
Maybe Apple will have multiple new product launches. However, Cook’s tweet used the singular “member,” so it seems likely that the company will focus on only one product.
Will the launch provide a big catalyst?
New-product launches have sometimes caused Apple’s share price to surge in the past, although the stock moves didn’t always happen on the day of the announcement. For example, the company introduced the larger-screen iPhone 6 and iPhone 6 Plus and the Apple Watch in September 2014. While Apple’s share price didn’t jump immediately, the stock rose by a double-digit percentage over the next two months.
Will the new product announcement this week provide a big catalyst for Apple? There’s no way to know for sure — but probably not.
For one thing, Apple appears to be only issuing a press release about this new product. If the company was rolling out a game changer, it would almost certainly hold a major event to build the excitement.
If the new member of the Apple family is indeed an updated version of iPhone SE, investors’ reactions will likely be a yawn. The entry-level smartphone doesn’t rank among the top sellers in the iPhone lineup.
Should you scramble to buy Apple stock?
Back to our original question: Should you scramble to buy Apple stock before Feb. 19? The answer is an easy one: No. There’s no reason, at this point, to think that Apple’s new product launch this week will move the needle much for the company or the stock.
However, whether or not you should buy Apple stock in the near term (but not necessarily before Wednesday’s news) is a different question, and I don’t think this question is easy to answer. There are three main knocks against investing in Apple.
First, the company’s growth has slowed considerably. In the first quarter of fiscal 2025, Apple’s revenue increased by only 4% year over year and its earnings per share jumped 10%. That’s a respectable level of growth, but not impressive by any stretch.
Second, Apple’s recent new product launches have been disappointing. The Vision Pro mixed-reality device, while highly innovative, is arguably the company’s biggest dud from a commercialization standpoint in a long time. The generative AI capabilities released so far in Apple Intelligence have also been underwhelming to many users.
Third, Apple’s shares trade at a forward price-to-earnings ratio of over 33. This premium doesn’t seem to be justified by the company’s growth.
On the other hand, Apple’s iPhone-centered ecosystem remains strong, and its customer base is loyal. The company could have tremendous growth potential if and when it rolls out rumored new products such as a folding iPhone and smart glasses.
I don’t think Apple is a no-brainer stock to buy hand over fist right now. However, I wouldn’t sell it, either. My view is that Apple is a great stock to keep on a watch list. Although I don’t expect this week’s new-product announcement to be a big deal, I predict the company will sooner or later announce a new product that is.
