Apple releases a flurry of updates and Wall Street yawns
Today’s Apple WWDC keynote included a variety of updates. From a new macOS to an updated watchOS to a new iOS, better privacy controls, FaceTime updates and even iCloud +, there was something on the laundry list with new code for everyone.
Apple’s keynote was essentially what happens when the big tech companies get huge; You have so many projects that you can’t just describe a few things in detail. They have to go through their whole parade of platforms, dropping packages of messages on each one.
But despite the obvious hint that Apple was working hard on the critical software side of its business, especially the service side (more here), Wall Street shrugged its shoulders resolutely.
This is standard, but always a bit confusing.
Investors care about future cash flows, at least in theory. These future cash flows come from expected revenue generated from product updates that drive growth in sales of services, software, and hardware. Which, aside from the hardware part of the equation, is exactly what Apple described today.
Lo and behold, Wall Street looked at the drivers of its future earnings estimates and said, “lol, who really cares.”
Apple stocks were down a fraction for most of the day, rising over time, not because of the company’s news dump, but because the Nasdaq rose for the most part as trading ended.
Here is the Apple chart over YCharts:
And here is the Nasdaq:
Provided you’re not a ChartMaster ™, these may not mean much to you. Do not worry. The diagrams say very little all around, so you won’t miss a lot. Apple was a bit in the red and the Nasdaq was a bit in the black. Then the Nasdaq rose further, and Apple’s stocks generally followed. Which is good to be clear, but a little negligible.
So after another big Apple event that will help determine the health and popularity of each Apple platform – key factors in lucrative hardware sales! – The markets are betting that all of their previous work on estimating Apple’s True and Correct value has been completely successful and that no change up or down is required.
That, or Apple, is so big now that investors are simply betting that it will grow with GDP. Which would be a fun diss. Regardless, here’s more of the Apple event in case you’re behind.