Apple’s keynote at today’s WWDC covered a vast array of updates. From the new macOS to the fresh watchOS to the new iOS, better privacy controls, FaceTime updates, and even iCloud+, the laundry list of new codes had something for everyone.
Apple’s main takeaway was what happens when big tech companies get bigger; They have so many projects that they can’t describe just a few items. They have to shoot down their entire parade of platforms, dropping packets of news belonging to each.
But despite clear indications that Apple has been hard at work on the critical software side of its business, particularly its service-side (more here), Wall Street gave a firm, loud shrug.
This is standard but always a bit confusing.
Investors care about future cash flows, at least theoretically. Those future cash flows come from anticipated revenue, which is generated from product updates, fueling growth in sales of services, software, and hardware. Which, other than the hardware part of the equation, is exactly what Apple detailed today.
And look, Wall Street looked at the drivers of its future earnings projections, and said “Lol, who really cares.”
Apple shares were down a fraction for most of the day, not thanks to the company’s news dump as time went on, but because the Nasdaq got closer to trading in a big way.
Here’s the Apple chart via YCharts:
And here’s the Nasdaq:
Assuming you are not Chartmaster™, this may not mean much to you. dont worry. Charts say very little all around so you are missing very little. Apple was down slightly, and Nasdaq was up a bit. Then the Nasdaq went up, and Apple’s stock generally followed. Which is good to be clear, but somewhat immaterial.
So after another major Apple event that will help determine the health and popularity of every Apple platform – the key drivers of lucrative hardware sales! – Marketers are betting that all their prior work assessing the true and correct value of Apple was dead and there is no need for any kind of up-and-down change.
That, or Apple is so big now that investors are simply betting it will grow in GDP terms. Which would be a fun diss. Even if you’re more behind the Apple event here.