This week’s Apple trading strategies (9/24-9/28)

A place for Apple 3.0 subscribers to share their ideas.

For a change of pace, let’s get things rolling with highlights from Amazon’s special event last Thursday (<10 min.). Compare and contrast with Apple’s the week before.

CNBC the next day ran this item: Amazon vs Apple

According to CNBC calculations, a $1,000 investment in Amazon in September 2008 would be worth more than $23,890 as of Friday morning, or more than 22 times as much, including price appreciation and dividends reinvested.

If you put $1,000 in Apple at the same time, your investment would be worth $12,299 now, or more than 11 times as much. While impressive, that’s $11,591 less than Amazon.

Disclaimer: Since I’ve never owned Apple and have never been much of a trader, I have nothing to add. Don’t blame me if you drain your IRA doing something you read about here.

10 Comments

  1. Fred Stein said:

    Friday’s decline finally provides a trading opportunity, mainly to buy long term out-of-the-money calls. The high volume must have included Apple. That’s a strong long-term positive.

    Note: Going long because it may take a while for the press, analysts and the market to gauge the customer enthusiasm for the XS, Max, and Watch 4.

    2
    September 23, 2018
  2. Gregg Thurman said:

    Great stuff Robert.

    Getting back to PED’s intro about Amazon v Apple appreciation.

    Oracle just introduced a new service that I think is going to seriously undermine Amazon’s AWS revenue (where all oh Amazon’s profits come from). It’s called Autonomous Database Cloud.

    Search YouTube for Oracle Announcement: Introducing Oracle Autonomous Database Cloud

    It’s long, about an hour, but the first 20 minutes tells you enearly verything. By the was, during the presentation Ellison talks about Amazon selling its AWS product while Amazon itself uses Oracle’s storage and transactional databases. Same thing with SAP and Microsoft.

    AMZN may not be worth as much a year from now.

    0
    September 24, 2018
    • Robert Paul Leitao said:

      Gregg:

      Oracle needs a growth driver and the cloud-based platform market is getting crowded. The company has invested heavily in the sector through acquisitions and it may be time for it all to come together in an effective and coherent platform and services plan. There are definitely opportunities to compete head-on with AWS.

      Ratings are currently mixed on Oracle due in part to questions about the company’s growth trajectory. I’ll save everyone my views of Amazon at this time. But I wouldn’t discount Oracle’s vast resources and ability to compete in what is already a highly competitive market.

      I don’t see Apple and Amazon as anything more than enterprises with slightly overlapping markets. I see Amazon with increasingly savvy and efficient competitors at just about every turn.

      1
      September 24, 2018
      • Gregg Thurman said:

        I see Oracle’s Autonomous Database Cloud as that driver.

        It costs half as much due to reductions in human support, has no learning curve and is multiple orders of magnitude faster. On top of that it’s AI automatically scales the service both up and down in real time without need to take it off line. Then to me, it’s two most important features are that it can detect attacks and automatically fix security holes, again in real time without taking it offline and, it can automatically and universally (on all installations) implement OS updates, again in real time without taking it offline. There is no need to schedule installing patches or updates. Down time is stated to be less than 2 minutes per month. Human intervention has been virtually eliminated, in the process eliminating human errors and need for scheduling downtime.

        No other Enterprise Cloud service can do these things.

        As Ellison said Oracle’s best references are it’s competitors, including Amazon, IBM and SAP, as they use Oracle’s Cloud for their own storage and transactional needs.

        I think this new capability is going to be huge. It’s up to 100X faster, it’s more secure, and costs half as much to implement.

        0
        September 24, 2018

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