The world renowned World Wide Developers Conference has come and gone. Although it was not one of the most highly anticipated Apple news summit, it still commanded substantial news coverage. Every pundit and investment/tech news outlet pumped out the same stories about how Apple Watch for getting less than fantastic reviews, how Apple did not adequately address the Spotify threat, and how Apple is still rocking the planet with new innovations. Even a few stories about Apple coming dipping into the auto industry rolled out.
Aside from less-than-perfect Apple Watch sales and the Taylor Swift debacle, Apple is still getting perfectly good coverage on the web. So why is Apple stock receding?
It might not be as surprising as one might think. Firstly, Apple stock almost always dips in the weeks following the WWDC. Additionally, Grexit fears bumped equities across the globe lower, and Apple took a hefty 1.75% hit on trading day June 29th. But it might be a little more than a reoccurring trend; Apple news has been quite flat since about a month before the WWDC and beyond. the news has been the same because rumours about the company and its new developments, which are usually only reported in small time op-eds, were substantiated by leaks from the company, which flooded the basement with news. As a result, the same news has been pumped out ad nauseam; the same pundits had to report on the leak, the WWDC, and a follow up story.
Investor fatigue is a real thing, but can it last? It can in some circumstances, but not for Apple’s, because Apple is a company at the forefront of innovation and growth. News of iPad and Siri updates, Apple Music results, and added Apple Watch apps and features have already started rolling out. Although these are not revenue machines on their own, they are the reason why individuals make new Apple hardware purchases- the features and the updates. This means that this news is the intermediate step towards higher revenue growth which is driven by hardware sales. Although this spell of negativity for Apple’s stock price will be tough for investors to swallow, they know that Apple is still trading within the $10 band between $123 and $133 that it has been caught in for the last 3 months, and also that it is going to take a lot more than investor fatigue to keep the mighty Apple stock down for long.
