[Charts] Hate the Player, Not All the FAANG Stocks
Dear Wall Street Daily Reader,
It’s Friday in the Trend Trader Daily Nation.
For the regulars here, you know that means it’s time for me to zip my lips, and let the pretty pictures do the talking instead.
This week, I’m dishing on the persistence of Apple Inc. (AAPL) haters, as well as a different FAANG stock that isn’t performing so well.
So grab a fresh cup of Joe, sit back, and prepare to be visually informed!
Cupertino, We Have a Problem…
Or do we?
In a fresh media criticism, Axios’ Sara Fischer and Ashley Gold report that Apple, the world’s largest company, is suddenly becoming vulnerable.
They say it’s been too successful (not a typo!) in turning its installed base of devices into a recurring revenue machine.
As you can see in the below chart, the Services segment now generates almost $17 billion per quarter, up from less than $5 billion per quarter six years ago.
Mind you, before Apple’s Services segment really ramped up, there were critics, too.
Not me, as I predicted years in advance that Apple would become the world’s first trillion-dollar company, largely because of the division.
But who’s keeping track? Me… and Tim Cook, hopefully.
Ever since he took over for the iconic Steve Jobs, he’s faced haters. But as I said long ago, the haters need to step off, because the end-results speak for themselves.
Shares of Apple are up 811.53% since Cook took the helm on August 24, 2011.
Stand up, point at the scoreboard, and sit back down, Timmy-boy.
Anyone betting against you doesn’t know what they’re doing.
But What About Bezos?
If we can’t hate Cook and his company’s stock, should we focus instead on another icon of tech, Jeff Bezos?
After all, shares of Amazon have been trading sideways ever since the pandemic started to subside. And that’s after doubling when it started because, well, Amazon became the only way to get anything.
In short, in the words of Ice Cube, I’d “Chickity-check yo self before you wreck yo self” here, too.
Sure, the stock’s currently trading in a range of less than 25% for 200 trading days and counting and seems stuck in the mud.
But as Bespoke Investment Group’s analysis notes, all four times the stock traded in this tight of a range, shares eventually broke out. In a big way. By an average of 68% over the next year, to be exact.
Take a look:
If I were you, I wouldn’t bet against either of these Big Tech stocks. Ever. But it’s a free country, so feel free to do otherwise.
Enjoy the weekend, and we’ll be back at it on the flip side.
Ahead of the tape,
Editor and Founder, Trend Trader Daily