Tech stocks are not exactly doing well lately. Apple has taken a plunge. Netflix is down somewhat. Other stocks are disappointing those who thought they could make a nice return in short order. Tech stocks had been delivering huge earnings in 2017 so assumptions tech would keep doing well were not exactly off the mark. The massive growth of Amazon revealed that tech stocks were good bets. Early June 2017, however, shows the tech world is not the proverbial hottest ticket in town anymore.
The industry does present bright spots along with stocks doing fairly well. Nvidia stock performed excellently despite the overall downtrend of the market. While Apple lost 3% of its worth, Nvidia’s price climbed quite high. In less than a year the stock went from below $50 a share to over $149. That is one massive return.
The word “bubble” is being used a lot these days. Specifically, analysts great and small keep talking about a “tech bubble.” The concept of a stock bubble centers on the notion the bubble expands in the form of increasing value and then bursts. The bursts reflects and immediate and massive decline in stock value price.
Bubbles can and do occur. A cursory glance of the past 100 years of financial history reveals instances of bubbles and their subsequent crashes. Assumptions that a tech bubble is possible make sense, but so does the notion these assessments are overstated. Apple, for example, is a multi-billion dollar company that has been around for decades. Apple generates untold billions of dollars in revenue each and every year. The idea that Apple — or Google or Amazon — will experience a major crash and never bounce back is possible. Is it probable, though?
Technology stocks in the US are on the plunge since Friday last week. Among the companies that have been affected most is Apple whose shares fell by 4 percent today. This happens to be the second day running as Apple had recorded a stock fall of 3 percent on Friday. This means that the technology giant has recorded a 7 percent decline in the last two business days. However, experts say that the Monday decline was as a result of the action carried out by Mizuho. Mizuho decided to downgrade their stocks to neutral which resulted in Apple’s shares dropping from $160 to $150. However, the managing director of Mizuho said that they believed that things are about to change and the stocks will pick in the coming days.
On Friday morning at around 10: 40 am, Apple stocks had dropped by 2.9 percent and they were worth $144.65. Correctively, the stocks fell by a margin of 2.9 percent on Friday. Apple stocks finished the day on Thursday at a high of $154.99. However, experts say that Apple gains in the coming weeks will be limited by the expectation that iPhone 8 will be bought by many customers across the globe. Since consumers are expecting the release of iPhone 8, they will not buy any iPhone in the coming months until the new model is released. Customers are also hopeful that the new iPhone will incorporate the new OLED display technology. However, customers do not expect to incur any extra cost on this feature.
Experts also say that Apple expansion in China will remain weak. At the same time, sales in India are expected to remain low as many people in the country cannot afford Apple devices. However, the company will experience growth in revenue in the coming two years. At the moment, Apple is estimated to have overseas cash holdings of $170 billion. The hard economic times facing the company is a sign that the market is currently characterized by volatility.
Apple is always on the move and always innovating. Maybe that is why the stock price seems to do so well so consistently. Debuting new products absolutely helps Apple succeed in the tech marketplace. The recent arrival of the new Business Chat continues the legacy of Apple’s ability to give the tech-craving public something else it wants or needs.
Business Chat is a rather generic name, but the name does get across what the new program does. The goal is to help facilitate business and customer service communications. The broader goal is more pronounced. Apple wants to use Business Chat to massively compete with Facebook Messenger. Business Chat is to take over the popular iMessage platform to the next level.
Expanded functions with Business Chat take the program to the proverbial next level and better increase chances for success.
New apps and programs find the road to public acceptance and popularity difficult. People like new things. They like new and improved things even more. What they do not like is uncertainty. Programs and apps bearing a name of a company they never heard of concerns them. With Apple, none of these problems arise. Apple is the quintessential tech company. Millions of loyal customers around the world faithfully purchase new releases. Customers who purchased Apple products for personal or business use in the past are sure to be enthusiastic about Business Chat.
Why did it take Apple so long to release a competitor to Facebook Messenger?
The Apple Watch puts forth an answer. The Apple Watch was bug-riddled and an embarrassment. The branding of the Apple Watch was ruined. Even fixing the watch brings forth no real solution. The name has been harmed in the public’s eye. As a whole, Apple is forgiven but the individual product is ruined. Management doubtfully wants to see the same thing occur with Business Chat.
Choosing to wait until business chat is near perfect makes sense. Apple’s brain trust knows what it’s doing.
Apple has announced an agreement with the company First Solar to create a solar farm to provide electricity to its headquarters, its 52 shops and other facilities of the company in California.
It’s the largest commercial investment ever made for the use of renewable energy.
Once completed, the facility will be capable of generating 130 megawatts of energy for the state, which will operate the new Apple headquarters in Cupertino, California, several data centers, 52 Apple Stores in California and 60,000 residential homes.
According to Tim Cook, Apple’s CEO, much of the motivation behind the project has to do with climate change worldwide.
People at CipherCloud have found that the new solar power plant is the second major commitment Cook has made in renewable energy this year.