Today’s WWDC main note from Apple covered a large selection of updates. From a new macOS to an updated watchOS to a new iOS, better privacy controls, FaceTime updates and even iCloud +, there was something for everyone in the laundry room with new code.
Apple’s main theme was really what happens when the big technology companies become huge; they have so many projects that they can not just detail a few things. They have to run down the whole parade of platforms and release news with each one.
But despite the obvious indication that Apple has worked hard on the critical software side of the business, especially the service side (more here), Wall Street gave a solid, emphatic shrug.
This is standard, but always a bit confusing.
Investors care about future cash flows, at least in theory. These future cash flows come from expected revenue, which comes from product updates, which provide growth in sales of services, software and hardware. Which, apart from the hardware part of the equation, is exactly what Apple detailed today.
And look, Wall Street looked at the drivers of future earnings estimates, and said “lol, who really cares. ”
Shares of Apple declined a fraction most of the day, increasing over time, not because of the company̵
Here is the Apple chart, via YCharts:
And here’s the Nasdaq:
Assuming you are not a ChartMaster ™, it may not mean much to you. Do not worry. The maps say very little around, so you are missing little. Apple was down a bit, and Nasdaq up a bit. Then Nasdaq increased more, and Apple shares generally followed. Something that is good to be clear, but something insignificant.
So after another big Apple event that will help determine the health and popularity of every Apple platform – important drivers for lucrative hardware sales! – the markets are betting that all their previous work to estimate the true and correct value of Apple was dead, and that there is no need for any kind of up-or-down change.
That, or Apple is so big now that investors are simply betting that it will grow in line with GDP. Which would be a funny diss. Anyway, more from the Apple event here if you’re behind it.