Thursday: Stock markets around the world retreated Thursday as fears over a second wave of coronavirus infections and a gloomy economic outlook from the U.S. Federal Reserve rattled investors…
Markets have reacted negatively to a dour economic outlook from the Fed on Wednesday. The U.S. central bank forecast a 6.5% contraction in U.S. gross domestic product for 2020, with a 5% rebound in 2021 and 3.5% growth in 2022.
The Fed also ruled out any hikes of its federal funds target rate, which currently sits at an historic low of 0-0.25%, through 2022.
The Fed’s outlook has exacerbated skepticism surrounding the much-hoped for “v-shaped” recovery for the global economy as it emerges from the coronavirus pandemic.
My take: Apple was ready for a breather.
Everyone play nice today and let’s try to make some (more) money.
It’s all about customer loyalty—says the co-founder of Tech.pinions—that, and a monopoly on its iOS, MacOs, silicon and core components. From a note ($) to subscribers that landed on my desktop Wednesday:
When we started Tech.pinions in 2010, we wrote numerous articles a week on the topic of trying to counter terrible articles written about Apple every week. During that moment in time, writing about Apple drove page views, and being cynical or negative drove even more page views…
During the same time, I was even more active with sell-side analysts and big hedge funds than I am now on their investment strategy for Apple. I was always shocked and often wrote about how Apple confounded most of its investors. There we active short sellers all around Apple, and their thesis was built on flawed assumptions and templates for companies or business models that worked for other companies but would not work for Apple. The worst part was most of them did not understand why their template would not work.
Fast forward to 2020, and Apple’s stock just hit all-time highs. In a moment in time where there is chaos in America, Apple’s biggest market. In a year where COVID-19 will dramatically impact hardware sales, Apple will not be immune, and we have at least a year-long recession. Despite every sign that Apple’s stock should decline, it has reached an all-time high. The market as a whole is acting irrationally, but that is a different topic.
As I continue to read sell-side analyst notes on Apple, I get the sense most investors have either come to grips with what they don’t understand about Apple and just know they can trust the reliability of the stock performance, or investors have actually finally come around and understand.
My take: Yes, some analysts have come around. Meanwhile, writing about Apple still drives page views.
I think that the tech media will treat AAPL in any way it desires as long as they can control investors actions and make money for themselves. Up or down, blue sky or gray, the sheep will follow. But, making money is what it’s all about.
As the overall market rebounds, shares of Apple (NASDAQ:AAPL) have not only bounced back but have also roared to a new all-time high above $350. Investors have cheered the company's ongoing transformation to a business model that is less dependent on product sales and more so on higher-margin services offerings.
With the tech company's stock up an incredible 85% over the past 12 months, many investors are likely wondering if the stock is still a good buy.
Overall, I think it’s a good read. And it has a big picture of Tim Cook waving!
I just updated my Apple TV. I have the latest generation. Paired my AirPod Pros to it. Now when I remove them, the TV auto switches back to the previous audio output device. And back to the AirPods if you still have them paired. Maybe this worked before the latest software, but just another little example of the benefit of being in the Apple ecosystem. So slick.
Last Edit: Jun 11, 2020 10:44:40 GMT -5 by Lstream
Thanks for the pointer. Hadn't gotten to Gruber for a few days, and this was one not to miss.
That was good. Similar to my thoughts, but with more thought and research put into it.
Interesting on the memory. I bought my 27" iMac because the memory can be updated from the stock 8 gigs. Right before reading this, I just happened to be looking at 16 or 32 gig kits on Amazon. It really bugs me that so many Macs can't have their memory upgraded these days, something that should be fairly easy.
On the touchscreen Macs, it may happen. It shouldn't, IMO, after using touchscreen slot machines. Just entering a few IPs to set up the network tires out your arms. In looking for a cheap PC laptop, I'd prefer to not have a touchscreen, getting a slightly better screen or extra memory or something instead.
But yea, this is a lot like the PPC to Intel transition, except that Apple is much better off now.
OTOH, the article does make me rethink buying a copy of Excel right now, as they point out that the non-subscription based one doesn't get updates.
The quick fall, in AAPL and all stocks, resets the RSI to below the 70 level. It will be interesting to see if this is just a quick 2-3 day step back, or if it changes the market mindset in a longer term way.
We have the choice to build this board up, or tear it down. Make the right choice, or don't post here.
To All: Please remember to keep non-Apple SPECIFIC political stuff out of the daily thread. Post it over in the Dungeon, if you really want to discuss it with others on the AAPL Finance Board.
mercel: It's been a long strange trip - good to see you're still around (and in AAPL -my assumption).
May 10, 2019 12:48:32 GMT -5
Zeke: Long time no see. Nice to see familiar names still here.
Mar 25, 2019 14:42:52 GMT -5
sponge: Regarding the future of VR, I think it will be huge. I was a gamer when I was in college. But as an adult I lost interest. Last fall I flew up to visit my son at college and check out his new Vive set up. After playing with it for the weekend, I was
Apr 29, 2018 15:25:17 GMT -5
galleybob: thanks for your answer. I will copy and send to her
Nov 7, 2017 15:32:18 GMT -5
rickag: So since Jan 28th 2015 AAPL is up from 117.27 to 157.21
Aug 21, 2017 20:09:43 GMT -5
artman1033: VXAPL = 29.21 AAPL = $117.27 AFTER EARNINGS
Jan 28, 2015 14:54:46 GMT -5
artman1033: VXAPL = 44.94 AAPL = $110.39 BEFORE EARNINGS
Jan 27, 2015 11:12:53 GMT -5