Apple stock is struggling to break through the $200 psychological barrier as it contends with potential bad news surrounding its Apple Watch in the U.S. and iPhone in China, but analysts are confident that both issues will be relatively short-lived.
Apple is preparing to comply with a U.S. import ban over the devices and said Monday that it would pre-emptively pause sales of its Apple Watch Series 9 and Apple Watch Ultra 2 to customers in the U.S.
If Apple fails to win a stay on the import ban and a potential software update to avoid using the contentious technology does not work, it will probably settle with Masimo and pay it a per-unit royalty, according to independent analyst Richard Windsor, who publishes Radio Free Mobile.
Meanwhile… Bloomberg reported recently that more Chinese agencies and government-backed firms have ordered staff to stop bringing iPhones and other foreign devices to work, citing people familiar with the matter. That represents an extension of the first such restrictions in September.
However, the extent to which such government restrictions will affect consumer behavior is still unclear.
“While there are lingering worries around iPhone shadow government bans in China for now this issue is very containable and has not dented demand for Cupertino in this key region based on our recent checks,” wrote Wedbush analyst Daniel Ives in a research note Monday.
MacDailyNews Take: Even without the U.S. Apple Watch and China iPhone issues, the stock would be pausing around the $200 barrier as round numbers tend to spook investors regardless of the lack of rationality. Perhaps with more dispassionate automated investing, such barriers will be easier to overcome.
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“Perhaps with more dispassionate automated investing, such barriers will be easier to overcome.” Humans included.
How come all of the little social media logos at the top of the page roughly spell out Xfinity? 🙂
Only WS has the powers for AAPL overcomes this bummer. For regular investors just can only hope and pray for it to happening.
No. Apple stock is Not struggling to break a psychological barrier.
Stock Market 101: Wall Street doesn’t control, decide or “set” the price of a stock. Nor does it “reflect” the state of the economy, let alone the state of any company represented.
For example, the success of Apple (or lack thereof) has no direct effect on the price of Apple’s stock. Rather, when traders are (in general) more interested in selling it than buying it, the price of a stock declines. The opposite is also true.
If you “Play” the stock market (trade) you quickly discover the only way to make money on a rising stock is to be among the first to buy it (when it is still low). And the only way to avoid losing money on a declining stock is to be among the first to sell it (when it is still high). The net result, folks, is traders don’t watch the company behind the stock. They are watching each other. If a few start selling a stock, the rest rush to sell it, too. If they hear some news (or some analyst’s comments) that they think will cause other traders to react, they will try to be among the first to so react. Thus they become a self-fulfilling prophecy.
Investors, on the other hand, are interested in the company. They buy and hold for the long term. For them, it’s a savings account with (hopefully) a better return. But because of this, Investors don’t influence price changes in any way — until and unless they sell.
Wall Street is not smart, stupid or clueless. People who cry, “They just don’t understand Apple,” don’t understand the market. It’s a mob-mentality, pure & simple. They don’t care about you, me or Apple. They only care about each other and any “skill” they may have is nothing more than the ability to predict what other traders might do before they do it.
In other words, “traders” are like sheep… If a few suddenly start to run, they all run and in the same direction. Only afterward will “analysts” attempt to figure out why.
What’s the solution for Apple? Minimize their reliance/exposure to traders. So, you begin share buy-backs and bond issues – with an eye toward reducing your risk (from traders) or perhaps one day eliminating it! (Get out of the stock market and go private. All they’d really need is lots of money to fund themselves! Hmmm.)
I’ll get off my soap-box, now.
The pause on Apple Watch will have no noticeable effect on Apple’s Christmas results because 99.9 % have ordered or bought the watch already to put it under the Christmas tree.
I believe unless the item has shipped, a sale has not been completed, so those that have ordered may be out of luck and will just get a refund if their watch is on backorder.
The order is not yet actually in effect. Apple is taking steps ahead of time, but they can still fill orders until that happens.
Yes, I agree. Sorry to be unclear that my statement would be true from when the court order is put in effect.