skip to page content

What's Up With Apple?

Adam Hewison - MarketClub

Loading the player...

Since April, Apple Inc. (NASDAQ:AAPL) has lost over $113 billion in share value and is now only up about 3 or 4% for the year.  

What is going on in the world's most heavily-held stock?

There are some things in life that cannot be explained. People trying to explain the fall in Apple will present logical reasons why, but the reality is, the market's expectations and perceptions often trump common sense. 

Reality check: Apple is still a huge company and still making boat loads of money with over $200 billion in cash sitting offshore. Apple is not going to go out of business anytime soon.

Apple's cash cow is the iPhone. Sales growth, while good, is slowing down as the market becomes saturated. The last big market Apple has to conquer is China and that market is getting to be very competitive.

In the world of tech, it is extremely difficult to stay on top forever - one only has to look at history. Think International Business Machines Corporation (NYSE:IBM), Hewlett-Packard Co. (NYSE:HPQ) and even Microsoft Corporation (NASDAQ:MSFT) to see what happens to leaders in this field after a while. So while Apple is a great stock, it may not be a growth stock anymore.

What Apple has going for it is an ecosystem and a huge customer base that will stay true to Apple. What Apple has to do, in my mind, is create more recurring revenue streams from its established customer base. The Apple watch, while it is a beautifully manufactured product, really didn't offer anything new and exciting in the world of smart wear. I believe it was a disappointment to Apple as they did not break out sales of the Apple watch in their last reporting period.  

While Apple continues to be the most valuable company in the world, investors may, if they haven't done so already, start looking at the likes of Google Inc. (NASDAQ:GOOG) up 26% and Facebook Inc. (NASDAQ:FB) which is up 21% for growth. 

In today's video, I will be analyzing how far Apple can move to the downside and why this is not a stock to be in for the next eight or nine months.

I will also be covering all the major indices, gold, crude oil and the euro.

Back to videos

Get Started With Your 30-Day MarketClub Trial Right Now

Get Started

© Copyright MarketClub™ All rights reserved | User Agreement | Do Not Sell My Personal Information

MarketClub/INO, a division of TIFIN Group LLC, is affiliated with Magnifi via common ownership. Affiliates of Magnifi will receive cash compensation for referrals of clients who open accounts with Magnifi. Due to this compensation, a conflict of interest exists since MarketClub/INO has an incentive to recommend Magnifi LLC.

Magnifi LLC does not charge advisory fees or transaction fees for non-managed accounts. Clients who elect to have Magnifi LLC manage all or a portion of their account will be charged an advisory fee. Please see Magnifi’s Form ADV for additional information about fees and charges that may apply. Magnifi LLC receives compensation from product sponsors related to recommendations. Other fees and charges may apply.

Magnifi, normally $14 per month, will be available at no additional cost to MarketClub members. Account holders must be 18 years of age and have an approved Magnifi account. Magnifi will determine qualifying account holders at its own discretion.

U.S. Government Required Disclaimer—Commodity Futures Trading Commission
Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

CFTC RULE 4.41—HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

All trades, patterns, charts, systems, etc., discussed in this advertisement and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author and do not necessarily reflect those of the publisher or INO.com. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representation or implication is being made that using the MarketClub™ methodology or system will generate profits or ensure freedom from losses. The testimonials and examples used herein are exceptional results, which do not apply to the average member, and are not intended to represent or guarantee that anyone will achieve the same or similar results. Each individual's success depends on his or her background, dedication, desire, and motivation.

×

It’s not goodbye, it’s hello Magnifi!

You are now leaving a Magnifi Communities’ website and are going to a website that is not operated by Magnifi Communities. This website is operated by Magnifi LLC, an SEC registered investment adviser affiliated with Magnifi Communities.

Magnifi Communities does not endorse this website, its sponsor, or any of the policies, activities, products, or services offered on the site. We are not responsible for the content or availability of linked site.

Take Me To Magnifi