Services are what pay the bills these days. We have all seen the ads for making money online with what you already know. I teach Infinite Banking to agents and consumers and charge a nominal $9.97 a month fee for over 25 hours of useable, actionable content.
This is the way of the new economy and every major company needs some sort of recurring revenue from low cost digital services. Apple is no different and they are gaining ground on their fellow FAANG sisters.
In my opinion, Apple may be suffering from FOMO as compared to $NFLX $AMZN and their in music and innovative services competitors like $SPOT, $P, Alexa. Their “services” is up 17% this quarter but I have no idea what guidance was for this sector. Analysts want to see money being made by more than just another iPhone, iPad or Mac that someone needs to buy. Its more than just the hard goods from this company going forward. Although they are innovating in the home and business to enable services with Siri to take on Alexa platforms.
Apple is no longer just a beautiful designed tactile tech company. Although they just reported the best quarter for iPhones in the last couple years. Replacement iPhones are the best in the last two generations. Don’t forget they have cloud, wearables with more service fees attached, commercial accounts and schools bringing their coding to the future computer engineers. They have new beta versions being tested for their next generation operating systems – iOS, MacOS. TViOS.
PLUS THERE IS AN OPRAH CONTENT DEAL! Tim Cook would not reveal exactly what this is but he is excited and Oprah is going to be a big part of their new content platform. Could be a toe dip into more social aspects with an intrinsic digital platform that they can control unlinke Facebook’s issues of data breaches and privacy concerns.
My take on $AAPL and its ability to become the first $1,000,000,000,000 (1 trillion dollar value) company will be before year end but it’s not happening this week with this quarter’s earnings. $205+ will get us there but I don’t see the ticker gaining much tomorrow after the opening bell. There will be some profit taking with this after hours run up.
RIght now we have bumped up to 197.73 and right now as I’m writing we’re at 197.38 during the conference call. I broke one of my rules and bought the weekly 192.50 call at $3.65. At the close I was down 12 cents but I expect with this run up that I have a significant pop on this play to help pay for our trip to PGA West in August. Of course I will post my play and see what I got – escargot or Spam!
I’ve been watching Cramer these days to glean some insight into the next phase of the markets. I also watch CNBC all day long. The traders call $AAPL the stock everyone should own because its the “best consumer company in the world”. They all say Apple is too cheap, especially Cramer. The issue is that its a little cultish and does not hold the biggest consumer market which is baby boomers. I’m sorry but tech is lost on that group of consumers, investors and especially traders.
Tonight Cramer is still pumping Facebook $FB $173.45 at this typing. I am in 172.50 weekly calls being up significantly today but didn’t harvest the cash probably like I should have but I had Apple earnings on the horizon after hours and knew that Facebook would get a pop as well with Apple earnings if they beat and they did and I CAN’T WAIT TIL TOMOROROW’S OPENING BELL!!!
And there’s $197.85++ for Apple!
Check out my technicals on the hourly for $AAPL:
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