Investors Suffering Cognitive Dissonance, Insane Demand For Nvidia Chips, Anxiety Builds About Israel And Iran
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 03 2024
0mins
Should l Buy AAPL?
Source: Benzinga
Cognitive Dissonance in Investing: Investors are experiencing cognitive dissonance by buying stocks under the belief that there will be no recession while simultaneously purchasing bonds, anticipating a recession. This behavior is compounded by high leverage in bond trading, leading to significant losses as bond yields rise.
Market Insights and Recommendations: The Arora Report suggests that investors should diversify their analysis methods beyond traditional technical analysis and consider a protection band strategy for investments, emphasizing the importance of cash reserves and tactical positions in bonds rather than long-duration strategic allocations.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise
32 Analyst Rating
19 Buy
11 Hold
2 Sell
Moderate Buy
Current: 275.500
Low
230.00
Averages
299.69
High
350.00
Current: 275.500
Low
230.00
Averages
299.69
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- 50th Anniversary Plans: Apple Inc. is set to celebrate its 50th anniversary in 2026, with CEO Tim Cook indicating that the company is reflecting on its past and planning celebrations, which could attract more attention and enhance brand image.
- Historical Reflection and Future Focus: Cook mentioned that Apple is reviewing old photographs and products to commemorate its impact over the past 50 years, and while the company typically focuses on the future, this reflection may inspire new innovations.
- Stock Performance Analysis: Apple stock rose 11.5% in 2025 but underperformed against the S&P 500's 16.6%, with a year-to-date increase of 1.7% in 2026; despite reporting record quarterly results, investors are hoping for a more positive market reaction.
- New Product Expectations: As the 50th anniversary approaches, Apple may introduce new foldable smartphones, and combined with the celebrations, this could attract more consumer attention, further driving sales growth and solidifying market position.
See More
U.S. Stocks Plunge as Tech Sector Weighs Down Market
- Tech Sector Retreat: U.S. stocks experienced a significant decline on Thursday, with the S&P 500 down 1.57%, the Dow Jones down 1.34%, and the Nasdaq 100 down 2.04%, primarily driven by a sell-off in the Magnificent Seven tech stocks, indicating concerns over the profitability outlook in the tech sector.
- Cisco Systems Warning: Cisco Systems saw its stock plummet over 12% after forecasting that rising memory chip prices would erode profitability, raising investor concerns about future performance and potentially diminishing market confidence.
- Weak Economic Data: Initial jobless claims in the U.S. fell by 5,000 to 227,000, below the expected 223,000, while January existing home sales dropped 8.4% month-over-month to 3.91 million, marking a 16-month low, which reflects signs of economic slowdown that could impact market sentiment.
- Positive Earnings Season: Despite the overall market downturn, over 76% of S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings projected to grow by 8.4%, indicating strong corporate profitability that may provide support for the market.
See More
Apple Acquires 'Severance' to Boost Streaming Prospects
- Acquisition of 'Severance': Apple has acquired the rights and intellectual property of 'Severance' for approximately $70 million, aiming to make it the flagship of its original content, which is expected to enhance its competitive position in the streaming market.
- Viewer Growth Potential: The show's viewership doubled from season one to season two, and if costs remain unchanged, it is projected to become profitable in season three, thereby positively impacting Apple's streaming business financially.
- Content Strategy Shift: Apple plans to reduce external content acquisitions and focus on producing high-quality in-house content, leveraging its own studio to increase content output in response to competitive pressures in the streaming market.
- Market Valuation Upside: With the launch of 'Severance' and other new content, the potential value of Apple's streaming segment may be undervalued, with prospects for attracting more users through a rich content library and live sports events.
See More
Apple Shares Drop 5% Amid Siri Delays and FTC Scrutiny
- Stock Price Decline: Apple shares fell 5% on Thursday, marking the worst performance in months, primarily due to delays in the Siri update and scrutiny from the Federal Trade Commission, indicating market concerns about the company's short-term outlook.
- Siri Update Delay: The long-anticipated AI update for Siri, initially expected to launch within weeks, has been internally postponed to May or later, raising investor doubts about Apple's competitiveness in the AI space and potentially impacting future market share.
- Increased Regulatory Pressure: FTC Chair Andrew Ferguson has urged CEO Tim Cook to review the terms of service and curation policies of Apple News, citing allegations of promoting left-leaning news while suppressing conservative content, which could lead to stricter regulations and a crisis of public trust for the company.
- Long-Term Plans Unchanged: Despite facing short-term challenges, Apple maintains its plan to launch new features in 2026, reflecting the company's confidence in future growth; however, the negative news may affect investor sentiment in the interim.
See More
S&P 500 Overvaluation: Time to Consider International ETFs
- U.S. Market Struggles: The S&P 500 has had a shaky start this year, yet it remains up 75% over the past five years, with a current P/E ratio of 30, indicating a historically high valuation that may deter new investors.
- Tech Stocks Dominate: The recent rally has been primarily driven by a handful of mega-cap tech stocks, such as Nvidia, Microsoft, and Apple, leading to concerns about market overheating due to the lack of broader stock participation.
- International ETF Opportunity: The Vanguard Total International Stock ETF (VXUS) emerges as an ideal investment choice, featuring a low expense ratio of 0.05% and holding 8,646 stocks, providing extensive exposure to overseas markets, particularly in emerging markets and Europe.
- VXUS Strong Performance: VXUS has rallied 9% year-to-date while the S&P 500 has remained flat, indicating a shift among investors towards diversifying their portfolios away from the overheated U.S. market, which could further propel VXUS's growth.
See More
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- Tech Stocks Plummet: Fears of potential disruptions from artificial intelligence led to a significant decline in tech stocks, with the Nasdaq Composite dropping over 2% and Apple shares falling around 5%, indicating market anxiety about the future of the tech sector.
- Dow Jones Decline: The Dow Jones Industrial Average fell approximately 1.3%, or over 650 points, breaking a three-day winning streak, reflecting investor caution ahead of upcoming inflation data that could influence Federal Reserve rate decisions.
- Gold and Bitcoin Drop: Gold futures sank 3%, while Bitcoin prices also declined to around $65,000, as investors adopted a risk-off stance, highlighting concerns about the future economic outlook.
- Employment Data Impacting Policy Expectations: Despite January's job additions being double the expected amount, the strong labor market has dampened expectations for near-term interest rate cuts by the Fed, increasing uncertainty in the stock market.
See More
