Apple releases torrent of updates, and Wall Street yawns
Today’s WWDC keynote from Apple covered a huge range of updates. From a new macOS to a refreshed watchOS to a new iOS, better privacy controls, FaceTime updates, and even iCloud+, there was something for everyone in the laundry list of new code.
Apple’s keynote was essentially what happens when the big tech companies get huge; they have so many projects that they can’t just detail a few items. They have to run down their entire parade of platforms, dropping packets of news concerning each.
But despite the obvious indication that Apple has been hard at work on the critical software side of its business, especially its services-side (more here), Wall Street gave a firm, emphatic shrug.
This is standard but always slightly confusing.
Investors care about future cash flows, at least in theory. Those future cash flows come from anticipated revenues, which are born from product updates, driving growth in sales of services, software, and hardware. Which, apart from the hardware portion of the equation, is precisely what Apple detailed today.
And lo, Wall Street looked upon the drivers of its future earnings estimates, and did sayeth “lol, who really cares.”
Shares of Apple were down a fraction for most of the day, picking up as time passed not thanks to the company’s news dump, but because the Nasdaq largely rose as trading raced to a close.
Here’s the Apple chart, via YCharts:
And here’s the Nasdaq:
Presuming that you are not a ChartMaster™, those might not mean much to you. Don’t worry. The charts say very little all-around so you are missing little. Apple was down a bit, and the Nasdaq up a bit. Then the Nasdaq went up more, and Apple’s stock generally followed. Which is good to be clear, but somewhat immaterial.
So after yet another major Apple event that will help determine the health and popularity of every Apple platform — key drivers of lucrative hardware sales! — the markets are betting that all their prior work estimating the True and Correct value of Apple was dead-on and that there is no need for any sort of up-or-down change.
That, or Apple is so big now that investors are simply betting it will grow in keeping with GDP. Which would be a funny diss. Regardless, more from the Apple event here in case you are behind.