Displaying items by tag: Apple

Thursday, 04 February 2021 16:57

Why Apple is About to Go on a Huge Run

(New York)

A few weeks ago we ran a story about Apple planning for its own-branded car. At the time, most analysts thought Apple would wait until self-driving cars became a mainstream reality before doing so—which made it seem like it would be 5 years or so. Well, in what comes as a major announcement, Apple is close to finalizing a deal with Kia to produce a branded Apple car for them in the US. Morgan Stanley analyst Katie Huberty explained why this is so exciting in just four short sentences: “Smartphones are a $500bn annual TAM. Apple has about one-third of this market. The mobility market is $10 trillion. So Apple would only need a 2% share of this market to be the size of their iPhone business”.


FINSUM: Apple is not only the world’s biggest player in smart phones, but it has a fiercely loyal follower base. It is hard to imagine the company would not get to 2% market share in mobility within 3 years at the most. This is the kind of announcement that could propel Apple on a big run for the next few years.

Published in Eq: Tech

(Silicon Valley)

The Apple Car (capital C!) has been hyped all over the internet over the last year, and investors seem to be frothing over the idea. See the full story here on our partner Magnifi's site.

Published in Eq: Tech

(San Francisco)

The anti-trust probe into Google elicited little more than a shrug from markets. Investors seem to think this just Washington saber-rattling. However, what is not well understood is that the probe is not just a risk for Google, but a major one for Apple. Apple is intimately connected to the case the DOJ is trying to form. In particular, Google pays Apple billions of Dollars a year to be the default search engine on iPhone, a fact which the DOJ has centered its case on. That money flows into Apple’s services unit, which has been its biggest growth driver in recent years. According to an analyst from Bernstein “There’s a risk, if you play it out, that there actually could be more financial impact to Apple than there is for Google”.


FINSUM: The market seems to have fundamentally misunderstood the risk here. Google got the headlines, but Apple potentially has even bigger risk.

Published in Eq: Tech
Monday, 26 October 2020 12:44

Weighing Large Cap Value vs Big Tech Stocks

(San Francisco)

There are rising fears about the potential over-valuation of big tech megacaps. While they have risen very strongly this year, their P/E ratios are not the only worry. Regulations are also weighing on investors’ minds, especially after the announcement of the anti-trust probe by the DOJ into Google. That has not stopped the stocks from rallying, however. Most investors are betting that the government’s numerous overtures about anti-trust moves (which have come from both sides of the aisle) are merely saber-rattling.


FINSUM: As it concerns large cap value versus big tech stocks, the answer is simple—it seems like time to buy both. Big tech may keep rising, but there is enough fear to keep other large cap stocks rising as we enter a prolonged recovery, as they have been for several weeks.

Published in Eq: Tech
Monday, 12 October 2020 09:37

Apple’s Huge Test Looms

(San Francisco)

Apple has a big moment of truth waiting for it this autumn. The company has seen a recent drop in value after a very strong rise. Part of the reason is uncertainty about the company’s next big phase: 5G. Tomorrow, Apple will unveil its first ever 5G phones. At stake is whether this change will begin another upgrade super cycle, the likes of which have powered the company to the meteoric heights upon which it now sits. Whether or not a super cycle happens seems to come down to whether 5G really creates a transformative experience for phone users. There is a lot of hype around 5G’s superfast speeds and how they will change the nature of smartphones, but as yet little is tangible. One prominent analyst, Dan Ives, from Wedbush, is all-in on Apple, saying “I believe it translates into a once-in-a-decade-type upgrade opportunity for Apple”.


FINSUM: For the last several years (since at least 2015), Apple’s new models have felt a lot less groundbreaking. If this years’ can break the trend, there will be another big sustained jump in the stock.

Published in Eq: Tech
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