Apple, famous for its predictable stock performance surrounding iPhone releases, has seen an unexpected deviation in recent months. Traditionally, stocks dipped upon the device’s unveiling, only to rebound in the subsequent weeks, offering investors a buying opportunity. However, this trend has been disrupted leading up to the September launch of the tech giant’s latest model, presenting a unique prospect for savvy investors.
Historically, Apple shares experienced an upswing in anticipation of the launch event. This year, however, discontent has marked the summer months, with a dip in August following a disappointing earnings report. Further exacerbating investor unease were government restrictions on iPhones in Asia, Apple’s largest international market, contributing to a staggering loss of nearly $300 billion in market value since July 31.
October traditionally bodes well for trading Apple shares, with an average gain of 3.8% since 2015. This momentum is bolstered by the debut of highly anticipated consumer tech, such as the forthcoming iPhone 15 line. The event is also poised to unveil the next-generation watches and AirPods, adding to the allure for potential investors.
Amidst what has been termed the “Apocalypse of Innovation,” a summer slowdown among tech giants like Netflix, Amazon, Microsoft, Nvidia, and Tesla has impacted the Nasdaq 100 Stock Index, which has experienced a 2% decline since July 18. Despite this, Apple shares have maintained a 38% increase year-to-date. Investors are particularly optimistic about the firm’s anticipated price hike on its premium models.
Jason Benowitz, senior portfolio manager at CI Roosevelt Private Wealth, emphasized the vital role Apple plays in both U.S. and Chinese economies, asserting, “The U.S. and China both need Apple to create employment and wealth for their respective nations. These fundamental facts are unchanged by the recent media reports, and we expect Apple to successfully operate in China for many years to come.”
Sir Gene Munster, Managing Partner and Co-founder of Deepwater Asset Management, advises long-term investors to view Apple’s dips as buying opportunities. This strategy seems to be bearing fruit, as an estimated 2.9% annual revenue rebound is anticipated in 2024, following a downturn this year.
As the market navigates Apple’s September exam, the question of whether the stock will stage a comeback by year-end remains uncertain. Presently, Apple investors appear cautiously optimistic about the company’s impending release. Ken Mahoney, CEO of Mahoney Asset Management, voiced his confidence, stating, “I think we have to get through September, which obviously has been very choppy so far. I’m an Apple bull, let’s put it out there, with the horns and everything.”
While the ultimate outcome for the tech titan remains to be seen, Apple has thus far defied expectations by holding off its customary pre-iPhone slump, giving investors ample reason for excitement in its stock performance.
Source: Bloomberg
