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- 📈 $AAPL - Up 16%, will it continue?
📈 $AAPL - Up 16%, will it continue?
Apple's AI ambitions and strong financials fuel investor optimism, despite temporary iPhone sales slump. 📈
Top of the top lads!
Featured Stock of the Week
A note that neither Underwriter nor this newsletter provides investing or trading advice. Please consult with a financial professional before making investment decisions. By reading, you agree to not take this as financial advice and assume all risk.
AAPL: AAPL $189.87
This week, we're putting the spotlight on Apple.
Despite facing challenges in early 2024, including a drop in iPhone sales and a decline in valuation, Apple is showing signs of recovery.
The company's shares experienced a notable increase in April, indicating renewed investor confidence.
Apple's AI Ambitions
Apple is on the verge of announcing a groundbreaking partnership with OpenAI, the creators of ChatGPT, to integrate cutting-edge generative AI capabilities into the iPhone and Siri. This move comes as Apple reorganizes the company around a once-in-a-decade "tent pole" AI initiative. Expect a smarter, more conversational Siri and iPhones with enhanced memory and processing power to support these new AI features. By seamlessly integrating AI into its hardware and software ecosystem, Apple aims to create an unrivaled iPhone experience. Additional Reading |  |
Unique AI Strategy
While competitors focus on standalone AI chatbots, Apple is taking a different approach by processing AI requests directly on iPhones rather than in the cloud. This strategy not only saves on data center costs but also positions Apple as a privacy-first alternative to rivals. With its massive installed base of over 2 billion devices worldwide and loyal customer base, Apple is well-positioned to bring AI to the masses through the iPhone, potentially sparking a significant upgrade cycle. Additional Reading |  |
Tech Sales to Skyrocket
Apple reported a 10% drop in iPhone sales, but surprisingly, the company's stock jumped 6%. This increase in shares left investors optimistic, even amid the sales decline. Although the sales slump was significant, Apple remains strong. The company increased its quarterly dividend by 4% and dedicated an impressive $110 billion to buy back its own stock, demonstrating confidence in its future. The combination of rising dividends and stock repurchases led to a 7% increase in Apple's shares. This growth suggests that Apple is still thriving, despite the temporary sales setback. Analysts predict that Apple's revenue will reach $359.67 billion, a remarkable 12% increase from the previous year. Additional Reading |  |
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Major Market News
Source:Canva
Tuesday, May 21 – A Discussion with Fed Presidents Loretta Mester, Raphael Bostic, and Susan Collins
What: A panel meeting with Cleveland Fed President Loretta Mester, Boston Fed President Susan Collins, and Atlanta Fed President Raphael Bostic
Impact: The Federal Presidents of Cleveland, Boston, and Atlanta are scheduled for a live Financial Markets Conference on Tuesday, May 21, at 7 P.M. (ET). The discussion will revolve around the central banking in a post-pandemic financial system.
Sources: Atlanta Fed
Wednesday, May 22 –The Existing Home Sales of Residential Buildings
What: Measures the annualized number of existing single-family buildings, co-ops, and condominiums.
Impact: The existing home sales data published monthly showcases the seasonally adjusted annual rate for residential buildings. In March 2024, sales rose in the Northeast but across the Midwest, South, and West. The decrease in home sales may signal a weakening economy.
Source: Mortgage News Daily
Thursday, May 23 – A Conversation with Atlanta Fed President Raphael Bostic
What: A discussion with Atlanta Fed president and chief executive officer Raphael Bostic
Impact: Keep your eyes peeled for the live conversation with Shan Cooper on Monday, May 23, at 3 P.M. (ET). The Federal President will make comments on the economic outlook and inflation rates.
Sources: Atlanta Fed
A note that Underwriter and this newsletter is not investing or trading advice. These are stocks and information we find interesting. Please consult with a financial professional. By reading, you agree to not take this as financial advice and assume all risk. Futures, stocks, bonds trading of any kind involves a lot of risk. No guarantee of profit is made. In fact, you may lose your entire investment. We guarantee no profit whatsoever, You assume the entire cost and risk of any trading or investing activities you choose to undertake. You are solely responsible for making your own investment decisions. Owners/authors of this newsletter, its representatives, its principals, its moderators and its members, are NOT registered as securities broker-dealers or investment advisors either with the U.S. Securities and Exchange Commission, CFTC or with any other securities/regulatory authority. Consult with a registered investment advisor, broker-dealer, and/or financial advisor. Reading and using this newsletter or any of my publications, you are agreeing to these terms. Any screenshots used here are the courtesy of Underwriter. The data, quotes and information used in this blog is from publicly available sources and could be outdated or outright wrong - I do not guarantee accuracy of this information.