Apple’s $430 Billion Sugar Rush May Hit The Wall Soon

Since last July, Apple’s stocks have soared adding a staggering $430 billion in the company’s market value. What looked like a huge win, has started to feel like a pressure cooker on the brink of explosion. 

With investors asking tough questions, as in, was the hype fabricated? Apple has to prove that the income stream is sustainable and completely organic. 

External Forces At Play

Investors’ skepticism is legit, because Apple’s recent boom didn’t come about from a new Iphone or a breakthrough gadget. It was facilitated by some outside forces that lined up in its favour. 

President Trump’s tariff relief provided breathing space for the company, while a favourable Anti Trust ruling, protected Apple’s $20 billion deal with Google for being its default search engine. Together, these factors, wiped away the regulatory clouds that weighed heavy on Apple stocks, bringing the surge in stocks value even without any new product launch or upgrade 

The Gap of Innovation

In recent numbers, Apple has just shown a 10% growth, which is their best in the last three years. But this good news is not as good as analysts have already intimated about the expected slow down in the growth. 

Such an unsustainable sail should be attributed to Apple’s lack of AI innovation in this age and time. It’s been long that Apple’s gap of innovation is broadening, which is a dangerous thing for a tech giant in this technological climate. 

While rivals like Google, Samsung, and Microsoft are cutting all hell loose with AI innovation, Apple is lagging behind. AI is the actual battleground now for the next decade of tech. If Apple couldn’t catch up with its competitors, it might lose its position as innovation leader. 

Convince The Wallstreet

The company’s stock is right now killing it at a 31 times projected earning, a stage that is labeled a near perfect performance. But Wall Street is still not convinced. Less than 60% analysts rate the Apple stock a BUY, while Microsoft commands a 97%  BUY rating. This gap is a display of Wall Street’s growing skepticism in Apple’s ability to deliver. 

Investors’ behavior shows that they’re stressing on the question of whether Apple can keep this momentum going without an actual innovation. Since long Apple has been priced as a company leading the future, but market sentiment is doubtful that it still is. 

The Launch Pattern

History corroborates that Apple’s stock takes a dip when a new product is launched and it lacks any significant innovation. The same threat hangs this year again, as Apple has once again resorted to price tweaks and bigger storage options instead of any jaw dropping innovation. 

In this way Apple’s forthcoming product launch is important in case it appears routine rather than revolutionary, it may cement investors’ fear that Apple is out of any ideas and the stock may have to suffer again.