Good news for Apple (NASDAQ: AAPL) investors! Investment bank Wedbush reported this morning that despite chip shortages and supply chain hurdles, the tech giant is set to sell 10 million iPhones this Black Friday weekend.
So … why did Apple stock fall 3% at 11:25 a.m. ET today?
As The Fly reported this morning, Wedbush analyst Daniel Ives “sees shortages at many Apple stores” – which sounds like bad news, but is actually further evidence that Apple’s iPhones are selling as proverbial buns. In fact, according to the analyst, “10 million iPhones” might just be the start of good news; until Christmas, Ives thinks Apple could move up to 40 million units. Suffice it to say, Wedbush believes this is further bullish news for Apple stock and will help the stock meet the bank’s $ 185 price target.
It’s also not the only good news that Apple investors are feasting on that day after Thanksgiving. In a separate report, TFI Asset Management predicts that Apple will start selling an augmented reality (AR) headset in the fourth quarter of next year, not in time for this Christmas, but well before next Christmas.
This is, in fact, even more important news than it seems at first glance. As TFI advises, Apple builds “PC-level computing power” into its headset, so that an Apple-branded AR system can operate independently of a smartphone (unlike Samsung‘s Gear, for example, or Meta-platforms‘Oculus). Indeed, TFI assumes that Apple’s long-term plan is to phase out the iPhone and replace it with augmented reality devices in about 10 years.
Or, in other words: Apple wants to build and dominate the Metaverse.
Of course, this always doesn’t tell us why Apple stock is down today. Logically, news of the kind described above should increase Apple’s stock, not torpedo it. Sadly, however, it looks like investors are upset enough by today’s news of a new variant of the coronavirus that has emerged in South Africa that they are selling stocks, no matter how good news they have to report ( that’s why the S&P 500 is already down 2.2%).
Once the panic has passed, investors may realize that today was a great day for investing in Apple stocks.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.