Eq: Tech

(San Francisco)

Even the most die-hard Apple investor must be feeling a little woozy right now. The company’s market cap just surpassed $2 tn. And guess what—half of that came in the last five months. Yes, the company doubled in value since the start of the pandemic and is now worth $2 tn! A couple months ago many were saying Apple was a bargain, now it seems to have a very significant premium. So the big question for investors—is it time to cash out because things feel very toppy, or do you stick with it? The company’s earnings have been phenomenal. So good in fact that Goldman made a blunt comment about flubbing its forecasts, saying “It turns out that we and consensus weren't even in the ballpark in terms of what was possible.”


FINSUM: $2 tn is a scary number, but it feels like it would be wise to stick with Apple right now. Momentum is good and there does not seem to be a big headwind that would wound the stock.

(San Francisco)

Large cap tech has been doing great and getting tons of media attention. Within the big rise, though, Apple has seen relatively less attention. The reality is that it may be time to buy. Historical studies have shown that the best time to buy Apple stock is in advance of new iPhone releases, and it is now confirmed that a new iPhone is coming soon. And it is not just any iPhone, it is Apple’s first 5G iPhone, which the company said on a recent earnings call would start shipping in October.


FINSUM: Research has shown that the 90-day period preceding the launch of a new phone is an ideal time to buy. Seems like a good opportunity to consider Apple.

(New York)

Cloud computing is a red hot area of tech. Amazon’s AWS division gets most of the attention, but the whole sector has grown greatly in total revenue over the last couple of years. Heavy growth is forecast to continue through the early 2020s, but there is an x-factor that may give a big boost to cloud stocks which the market is not pricing. That x-factor is the fact that work-from-home is sending the demand for cloud services much higher than baseline forecasts. With distributed workforces, the need for cloud-based computing is higher than if workers were in offices. For example, Audi’s cloud spend grew 12% in just a month between March and April.


FINSUM: So WFH is a great tailwind for cloud computing. The only challenge is that the costs for companies have been soaring so much that they are trying to renegotiate them back down. Overall, seems a big net positive.

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