Safe haven: Apple stock is a ‘place to hide’ amid volatile markets – analyst

Amid a rocky start to the year for technology stocks, Apple shares represent a safe haven as the company could continue to see strong iPhone demand throughout 2022, according to Piper Sandler analyst Harsh Kumar.

Apple logo

Emily Bary for MarketWatch:

Given the company’s prospects for the year ahead and the volatile tech backdrop, he recommended Friday that technology investors “look at Apple as a ‘place to hide’ in the current environment.”

When it comes to Apple’s story, “nothing matters like the iPhone,” he wrote, adding that this part of the business seems well positioned for 2022. In the U.S., carriers continue to build out their 5G networks and offer subsidies on new phones, which could help drive demand. China represents a further source of strength, and India has the potential play an increasing role in the years to come.

Looking more broadly at Apple’s narrative, Kumar sees opportunity for the company to eventually notch a $4 trillion valuation by becoming a bigger player in the worlds of healthcare and automobiles. “In healthcare, we see the Apple Watch continuing to add more and more features, with the goal of eventually offering a blood sugar monitoring system,” he wrote.

MacDailyNews Take: Apple remains significantly undervalued. As for Apple Watch and blood glucose monitoring, Apple is known to be working on Non-invasive Blood Glucose Monitoring for Apple Watch Series 8 which would supercharge already world-beating sales:

Initially envisioned by the late Apple co-founder Steve Jobs, Apple engineers were tasked with developing sensors that can non-invasively and continuously monitor blood sugar levels to better treat diabetes. Before his death, Jobs envisioned wearable devices, like smartwatches, being used to monitor important vitals, such as oxygen levels, heart rate and blood glucose, as Christina Farr reported for CNBC back in 2017.

If achieved, Apple Watch would become the essential device for hundreds of millions of people with diabetes. Non-invasive continuous glucose monitoring would indeed be the holy grail for treating diabetes.MacDailyNews, April 12, 2017

Back in 2013, EDN covered non-invasive blood glucose monitoring using near-infrared spectroscopy here.

Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!

Shop The Apple Store at Amazon.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

4 Comments

  1. Apple is as close to safe haven for an equity(stock) as is possible — which is to say there is no safe haven on equities. But Apple has nearly every tick box checked. Titanic financial strength, currently unmatched vertical integration control of products, gold standard brandname and customer retention, huge consumer and marketplace power. You have to go back through corporate history to find a company in such an all around powerful position.
    But that comes with the caveat that short term always has the possibility of stock price drops. Short term is in significant part controlled by trading machines(algos), the derivative market, institutional rebalancing, news catalysts.

  2. I suppose AAPL is now too big to be victim to simple stock manipulation and greedy volatility by Big Money, like 10 years ago. It’s now a significant percentage of the entire market. So it’s safer, as long as the market doesn’t crash.

    1. Its BIG and it is more difficult Ken but unfortunately nothing, not even Apple, is above manipulation. Because so much of the market is computers from institution and boutique trading houses that execute buys/sells at huge numbers in a fraction of a second, and most of these computers (Algos) are designed to buy/sell on split second trading imbalances, just a fraction of volume imbalance can trigger a stock price to fluctuate hugely. There is no fundamental reason for the price swing other than the Algos executing so quickly and on the minor imbalance. Check out the mini crashes that have happened over the years (one happened about 2 years ago). Almost the entire S&P dropped a couple percent in a minute then came right back in a minute. Why? An institution trader accidentally added a zero onto the number of S&P future contracts to sell. The computers interpreted that as a major imbalance and essentially sold off the market quicker than it would take me or you to log into our trading platform.
      That’s not even speaking to market makers that press shares/massive liquidiity into the market because, for example, they are covering huge derivative expirations. Watch the Gamestop video breakdown sometime. It answers the question: LOL, what happens when retail traders overwhelm a stock. It causes the market makers heads to explode (and the Algos, in effect, just turn off going ‘whoa! Don;t know what’s happening with this imbalance, we’re out!).

  3. Oddly this used to go on long ago with Apple stock as well. Something would send stock holders scurrying like rats and suddenly AAPL would uptick. While it wasn’t considered the greatest stock in the world, it was used as a safe haven by some as it just didn’t seem to be that volatile.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.