Investing $1,000 in Apple's stock five years back would net you this amount today

Investing $1,000 in Apple stock 5 years back would net you this amount today

In the world of technology, Apple has long been a trailblazer, a company that consistently pushes boundaries and redefines the norm. However, the past five years have seen a slight deviation from this trend when it comes to stock performance.

If $1,000 was invested in Apple five years ago, it would be worth approximately $1,870 today, considering dividends. While this may seem impressive, the same amount invested in the S&P 500 over the same period would be worth approximately $2,015, demonstrating a slight underperformance by Apple compared to the broader market.

Apple's position as a growth stock was once unquestioned, but the market remains skeptical about its AI plans, a sector where competitors like Nvidia, Microsoft, Alphabet, and Amazon have demonstrated tangible capabilities and applications. Apple's relative slowness to adopt AI is not entirely surprising given its cautious approach.

The "Magnificent Seven" stocks, including Apple, have significantly contributed to the growth of the S&P 500. Despite this, Apple has fallen behind its peers in AI developments over the past five years. Delays in launching first-party AI features and a focus on hardware rather than advanced AI software integration have slowed Apple's upgrade process and raised concerns about competitiveness.

However, Apple is not resting on its laurels. The tech giant plans to increase investments in AI to catch up with the rapid pace of AI developments. As of Aug. 27, Apple's stock is down 5.5%. Whether these investments will translate into improved stock performance remains to be seen.

It's important to remember that Apple has historically been one of the best investments in the stock market. Its innovative spirit and commitment to excellence have led to groundbreaking products and services that have transformed industries. If Apple can return to its innovative roots, the next five years could be better than the previous ones in terms of stock performance.

Data for this article is provided by YCharts.