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Zacks Investment Ideas feature highlights: Apple and New York Community Bank
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For Immediate Release
Chicago, IL – March 22, 2024 – Today, Zacks Investment Ideas feature highlights The Apple (AAPL - Free Report) and New York Community Bank (NYCB - Free Report) .
DoJ Takes a Bite Out of Apple, Buffett Sours on the Stock
Apple: One of America’s Great Companies
Zacks Rank #3 (Hold) stock Apple stands out as one of the great American companies due to its relentless innovation, iconic design, and unwavering brand loyalty. Apple has consistently set industry standards and reshaped technology landscapes from groundbreaking products like the iPhone to its sleekly designed laptops. Its financial success, with a market capitalization exceeding $2 trillion, underscores its influence and prowess in global markets.
Chinks in the Armor?
Today, the U.S. Department of Justice (DOJ) announced that it sued Apple in an antitrust case over its landmark iPhone product. The DOJ alleges that Apple has a monopoly over the phone market that has harmed consumers, developers, and rival companies. Though I am normally a “free market” person, I believe the DOJ has a good case. Apple can indiscriminately ban apps on its Appstore, and with its overwhelming stranglehold on the smartphone market, it can kill businesses and innovation.
Relative Weakness
Weakness tends to beget weakness in the stock market. For example, while the S&P 500 Index was putting in an intermediate bottom in October 2023, New York Community Bank was underperforming – a subtle clue of the damage to come.
Currently, AAPL shares have been stuck in the mud for months and are flashing the same kind of clue.
Bear Flag Pattern
AAPL shares are breaking down out of a daily bear flag pattern on heavy volume – a bearish sign.
Lack of Innovation
Apple became a powerhouse stock due to its innovation and growth. However, without iconic CEO Steve Jobs at the helm, innovation has come to a standstill. The company killed its multi-year attempt to build an electric car, is behind in the AI race, and has been unimpressive in delivering the “wow” factor in new iPhone releases.
Buffett Souring on AAPL Shares?
Berkshire Hathaway’s 13F disclosure saw Buffett decreasing his massive AAPL position for the first time in years. Furthermore, AAPL was only mentioned once in Berkshire’s annual letter to shareholders, a hint that Buffett may be selling more stock soon.
Bottom Line
Flat iPhone revenue, regulatory scrutiny, and a lack of innovation are convincing reasons to avoid AAPL and look elsewhere in the market for growth.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Apple and New York Community Bank
For Immediate Release
Chicago, IL – March 22, 2024 – Today, Zacks Investment Ideas feature highlights The Apple (AAPL - Free Report) and New York Community Bank (NYCB - Free Report) .
DoJ Takes a Bite Out of Apple, Buffett Sours on the Stock
Apple: One of America’s Great Companies
Zacks Rank #3 (Hold) stock Apple stands out as one of the great American companies due to its relentless innovation, iconic design, and unwavering brand loyalty. Apple has consistently set industry standards and reshaped technology landscapes from groundbreaking products like the iPhone to its sleekly designed laptops. Its financial success, with a market capitalization exceeding $2 trillion, underscores its influence and prowess in global markets.
Chinks in the Armor?
Today, the U.S. Department of Justice (DOJ) announced that it sued Apple in an antitrust case over its landmark iPhone product. The DOJ alleges that Apple has a monopoly over the phone market that has harmed consumers, developers, and rival companies. Though I am normally a “free market” person, I believe the DOJ has a good case. Apple can indiscriminately ban apps on its Appstore, and with its overwhelming stranglehold on the smartphone market, it can kill businesses and innovation.
Relative Weakness
Weakness tends to beget weakness in the stock market. For example, while the S&P 500 Index was putting in an intermediate bottom in October 2023, New York Community Bank was underperforming – a subtle clue of the damage to come.
Currently, AAPL shares have been stuck in the mud for months and are flashing the same kind of clue.
Bear Flag Pattern
AAPL shares are breaking down out of a daily bear flag pattern on heavy volume – a bearish sign.
Lack of Innovation
Apple became a powerhouse stock due to its innovation and growth. However, without iconic CEO Steve Jobs at the helm, innovation has come to a standstill. The company killed its multi-year attempt to build an electric car, is behind in the AI race, and has been unimpressive in delivering the “wow” factor in new iPhone releases.
Buffett Souring on AAPL Shares?
Berkshire Hathaway’s 13F disclosure saw Buffett decreasing his massive AAPL position for the first time in years. Furthermore, AAPL was only mentioned once in Berkshire’s annual letter to shareholders, a hint that Buffett may be selling more stock soon.
Bottom Line
Flat iPhone revenue, regulatory scrutiny, and a lack of innovation are convincing reasons to avoid AAPL and look elsewhere in the market for growth.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.