The iDip, The opportunity Pro Max
Apple 🍎 Research, and some bonus highlights
For some of you, it’s okay to look at your portfolio again, as the $1.9 trillion stimulus package I wrote about a few ago has been announced; prompting some recovery in the beaten up growth & tech stocks.
For those that have been following my last few posts, you will notice some of the researched stocks are already making some strong gains, with CVS (+5.9%) and Phillips 66 (+7.1%) up since time of writing.
Now this doesn’t mean we’re out of the woods yet, US 10 year treasury bonds go on auction this week, low demand for them (due to worries about inflation rising) could mean further pain on equities, as the future earnings on tech stocks takes a bigger hit.
That being said, I am still a strong believer that the market will recover, and tech stocks will see some solid returns given the life changing solutions some companies are coming up with, after all, they are the future, what we are likely to see is a cull of companies who have unhealthy finances or management.
For those thinking about taking advantage of the current dip in stocks, I will provide some research on on a prominent stock, and highlight 3 more, for you to do your own research on.
As always, this is not financial advice, only research for stocks I find interesting. please do your own research before investing in anything, do not approach this as a get rich scheme.
APPLE Inc. 🍎 (AAPL) +38% in mentions
Market Cap: $1.95 Trillion
I will save the introduction into this company as i’m sure all of you are aware of who Apple are.
Instead, I will cover why this is a good time to look at apple stock and what their future holds.
At the start of this year, Apple stock was at $145 a share. It is currently down ~20% from that price, mostly due to the tech slump of the last few weeks.
It’s worth noting that Apple isn’t a company with a crazy valuation due to projected future earnings, it’s already an absolute cash cow with solid current earnings, which makes this a safer investment than some of the more speculative tech plays.
Furthermore, this all time high price is one I feel will be surpassed in the future, given the future plans I will discuss below.
Apple has been a pioneer in the way humans interact and work with computers. While not always at the forefront of the innovation curve, The company has been able to revolutionise and disrupt sectors with their products.
The reason this has been so tremendously successful for Apple, for so long, is the seamless integration between their products, the ‘ecosystem’, which means that in a world of continuously more sophisticated technology, Apple’s devices work and integrate seamlessly with each other, creating a highly rewarding customer experience.
This allows Apple to enter, or even create new markets (think iPad or AirPods) with a higher-than-usual success rate, while also being able to charge a higher premium for the Apple experience.
This higher success rate, along with big technology developments in the personal device space is the reason why I think Apple will sustain their position as a leading technology company.
Next up for Apple? mixed and augmented reality (MR and AR).
Augmented reality is the idea of overlaying projected imagery, graphics or instructions onto the real-world. Instagram face filters are an entertaining example of that, Mercedes’ current Sat Nav systems are a more useful use-case.
Apple are heavily investing into AR technology, with rumours of them releasing AR focussed glasses between later this year and 2022, future plans also suggest a 3 stage release of AR technology, starting with AR helmets and going all the way to contact lenses by 2030 (this technology is closer than you think, look at this company who have working examples https://www.mojo.vision/).
Slightly less sci-fi than AR, Apple has been working on a car since 2014, looking to release an autonomous driving model at around 2024.
I won’t go into too much detail here on this as there is already tons of content online to read through, but a successful car launch can provide another massive revenue stream for Apple to grow even further.
Strong future outlook, solid established earnings, a loyal consumer and a reduced current price make buying the world’s most popular stock a very interesting prospect.
While to some, the idea of AR glasses or an Apple car could sound like a gimmick, or yet another product that has cool technology but no uptake (3D TVs anyone?), try to think back to what you first thought of the iPad announcement, or the Apple watch. Both to me were products that seemed to have little use, but I was clearly proven wrong!
Other stocks to assess 🔍
ContextLogic Inc (WISH) you will most likely know this company as wish.com, the e-commerce platform. Has seen a large increase in social media chatter (+60%) and heavy discount in stock price.
Etsy.com (ETSY) heavy market conviction around this one, Etsy stock gained 300% in 2020 alone. Etsy has captured a unique slice of the e-commerce market, which is only growing further with the rising concerns of fast fashion.
Pinterest (PINS) large discounts again from their all-time high price. Lots of chatter around how their advertisement conversion ratio is so much higher than other sites like google or Facebook. My worry is, if google block or lower the ranking of their images in searches, it could cause tremendous damage to their website traffic.
Let me know what you think of the picks above by leaving a comment!
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