Every year, without fail, the hype builds up around Apple’s iPhone launch — usually in September, when COVID-19 isn’t causing havoc.
This year is no exception, but there are a few things investors should be aware of.
Is Apple still a good investment?
One of the first things that investors need to know about businesses like Apple is this:
The big stuff is already factored in!
Basically, everyone already knows that Apple is going to host a big product ‘reveal’ in the fall, and it’s likely going to include the iPhone 13. Great, its share price is going to soar because this phone is going to be amazing, right?
Wrong. The vast majority of the time, Apple’s stock price has remained flat, if not down a little bit, immediately following its big day in Cupertino. This makes a lot of sense, as Apple events are typically front-run by hype and rumors so there’s rarely much surprise when the event finally arrives.
And this year, already lauded as ‘its biggest product launch yet’, is not any different. There will be a new iPhone, a new Watch, maybe Airpods and a Macbook Pro, or more. We know they’re coming, we know they’ll take over Apple’s current product sales cycle, and that’ll be that.
So if you think that you can load up on a load of Apple stock now, a month away from said event, then hit the big bucks when it reveals these goodies, selling for massive profit, then think again. That’s not how Wall Street works.
What you can do, if Apple is a stock you like (or maybe it’s another company), is simply buy shares, no matter what. If you think it’s a worthy long-term investment, then short-term news cycle events like this are unimportant.
Buy the idea, not the hype.
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Content Manager at MyWallSt
Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.