Displaying items by tag: Apple

Friday, 07 September 2018 09:57

Apple’s Got a Big New Plan

(San Francisco)

Apple is reported to be set unveil some big changes in the coming weeks. In what many see as Apple’s third phase, the company is set to release brand new iPads and watches. If personal computing was phase one, and iPhones were phase two, then phase 3 will be wearables, say analysts. The company has seen sales in those divisions soar recently, and they have slowly stolen wallet share from the iPad’s sales. Accordingly, Apple is putting more resources into wearables, but also debuting a new iPad and trying to redefine its purpose for customers.


FINSUM: The iPad has slowly been shrinking from the limelight at the same time as the Apple Watch and Beats have steadily grown. It is hard for us to imagine that either category will be Apple’s main sales driver in the future.

Published in Eq: Large Cap
Tuesday, 21 August 2018 09:18

Big Risks Lurk in Apple’s Stock

(San Francisco)

Apple just crossed the trillion Dollar threshold. Shares have been rising, up over 27% this year, on strong sales figures. Everything seems good, right? Think again, says Barron’s, as it believes the stock could be in for a “clobbering”. The reason why is that Apple’s recent success with the iPhone X may have weakened its prospects for 2019. Because there is a longer and longer timeline between phones that have the dazzle to get customers to actually trade up, currently good iPhone X sales may be sapping demand for 2019, meaning the next few quarter’s earnings might be quite disappointing.


FINSUM: This makes sense to us. Customers only have so much wallet share for smart phones, and the iPhone X took a lot of that this year, which means the next several quarters could be lean.

Published in Eq: Large Cap
Thursday, 16 August 2018 08:51

Ditch Tech Stocks and Buy Retail

(New York)

One of the most famous hedge fund managers just made what seems a bold and countercyclical move. That manager is David Einhorn, and the move is to ditch all tech stocks and buy retail instead. In its most recent quarterly filings, Einhorn’s Greenlight Capital bought shares of Gap, Best Buy, Dollar General, TJX Companies, and Dollar Tree, all while significantly pairing holdings of Apple and Micron Technology.


FINSUM: Retail has had a good run over the last year, but the industry is still facing some major headwinds. We think buying retail now seems like a macro bet that the US economy will stay strong.

Published in Eq: Large Cap
Monday, 06 August 2018 09:03

The Lingering FAANG Bull Case

(San Francisco)

Tech stocks have been through a rough patch, FAANGs especially. Facebook has been absolutely obliterated, while Netflix has had some steep falls. But is there still a bull case for the FAANGs? Barron’s says yes. Given Apple’s great numbers recently, the FAANGs have a little bit of momentum back. The core of the argument is dead simple—FANG stocks (leaving out Apple) are still growing at 35x the rate of the broader market, so it is hard not to see them rising. The article argues that the group is a generational trade that captures the growth of the internet.


FINSUM: When you get right down to it, the business models of the FANGs (lets leave Apple aside for a moment because it is a very different business) are very solid. We think investors will come around to that sooner rather than later.

Published in Eq: Large Cap
Tuesday, 31 July 2018 08:56

The Whole Market Hinges on Apple

(San Francisco)

Apple’s earnings are always a big deal, but it is hard to remember a time where they were more important than right now. The tech sector, include the FAANGS, of which Apple is a member, have been getting routed. The Nasdaq has fallen strongly as a result of this, but the Dow, of which Apple is the only FAANG member, has held up reasonably well. The market is getting increasingly anxious about how tech stocks might affect the whole market, and how the sector performs seems like it is being taken as a bellwether for the economy. Thus, all now hinges on Apple.


FINSUM: If Apple puts in good earnings, then the market might stay strong and consider tech’s issues isolated. If Apple’s earnings are poor, it could lead to a broad selloff.

Published in Eq: Large Cap
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