Apple Stock Falls Flat After Raft Of Product Announcements

An announcement by Apple (AAPL), the world’s largest listed company by market cap, which flagged several product developments, failed to excite investors overnight.

The company, which is worth more than $2trn despite its recent retreat from record highs, revealed a new iPad Air, generation 6 Apple Watch and pricing for new subscriptions bundles that wrap together services such as Apple TV, iCloud and Apple Music. The products were met with a muted response from investors, with Apple stock closing the day close to flat having started the day almost 3% higher versus Monday’s closing price.

In other headlines, more details of Oracle’s deal with TikTok emerged. In an effort to meet the demands of the White House, TikTok’s US business will become a new US-headquartered company. Oracle (ORCL) will be a minority shareholder, with ByteDance still retaining control, the Financial Times reported, citing people briefed on a plan presented to US officials. Oracle stock has jumped 10.2% over the past five trading days as the deal has progressed.

Meanwhile in Asia, Japan’s new prime minister Yoshihide Suga was duly elected by politicians, replacing his predecessor Shinzo Abe. Japanese markets were flat in reaction, the Nikkei up just 6 points at 23,461, although it remains only marginally off its recent peak.

Cloud firm Snowflake set for biggest IPO of 2020 so far

The Nasdaq Composite continued its rebound on Tuesday, closing 1.2% higher, while the S&P 500 gained 0.5% and the Dow Jones Industrial Average was flat. Financials stocks suffered a rough day, while consumer, communication and technology names led the way. Tesla (TSLA) enjoyed another bumper day, adding 7.2%, taking its five-day gain to 36.2% and its one-month return to 19.2%. Netflix (NFLX) also helped take the index higher, closing 4.1% up, after a new overweight rating from KeyBanc and Apple’s new subscription bundle pricing reveal.

In company news, cloud storage and software firm Snowflake completed the biggest IPO of 2020. The firm priced its offering at $120 a share, which values the company at north of $33bn. Per The WSJ, a mass of companies are racing to go public this year, looking to tap growth hungry investors starved of opportunities by the ultra-low interest rate environment.

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Barry Glassman 4 days ago Member's comment

Surprised people aren't more excited about these new Apple announcements. $AAPL