Apple is the only tech stock that’s up on Tuesday as it closed up 3.1% as other stocks tumbled on concerns of the Omicron COVID-19 variant, showing investors see the company as a safe haven during market uncertainty.
Other large-cap tech stocks like Google, Amazon, Meta (formerly Facebook) and Microsoft closed down for the day amid a broader market selloff. The Dow Jones Industrial Average dropped 651 points, the tech-heavy Nasdaq composite fell 1.6% and the S&P 500 was down about 1.9% on Tuesday after Federal Reserve Chairman Jerome Powell said the Fed will discuss speeding up the bond-buying taper during its December meeting.
Needham analyst Laura Martin told CNBC that investors turned to Apple on Tuesday because the company has prodigious cash flow, allowing it to endure any slowdowns in the economy and take advantage of falling prices.
“There’s a flight to quality with companies that you know will weather the storm, not go bankrupt, not have financial distress,” Martin said, noting that other large-cap tech stocks aren’t down as much as smaller firms.
Martin added Apple is positioned to introduce new products to power new growth, including a headset.
MacDailyNews Take: Every cloud has a silver lining – for AAPL shareholders, that is.
Never pass up an opportunity to profit from irrational panic. — MacDailyNews, November 26, 2021
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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
Fred Mertz is a natural treasure. Hertz might have been No. 2 but Fred is No.1
What kind of morons vote down Fred Mertz? Android ijits…
I was kind of enjoying seeing Apple’s market cap putting even more distance beyond Microsoft’s market cap. I didn’t see any news reports over the last couple of weeks announcing when Apple retook the market cap lead. There must have been some disappointment when Apple regained the crown. I’m sure Apple will be the first company to have a $3T market cap in 2022. It will take a share price of $187 or so to do it. That’s really amazing.