Apple pops in premarket trading

Who knew traders had so much riding on the Apple car? Or is it Steve Mnuchin?

From Reuters: Apple Inc on Tuesday confirmed that it has acquired self-driving shuttle firm Drive.ai.

From The Street: Apple Shares Jump on US-China Trade Hopes, Micron Chip Sector Outlook

A bullish assessment on U.S.-China trade talks from Treasury Secretary Steve Mnuchin could remove some of the recent tariff-related risks that have clouded the tech giant for the past two months.

See also: Stirrings of life at Apple’s Project Titan — updated

6 Comments

  1. Gregg Thurman said:

    Doesn’t matter what happened yesterday, $2+ move is a “pop”.

    If the “pop” holds I’ll probably Close my $200/$202.50 Put Spread. Thankfully I opened that position the the right time and I’ll still make a profit, albeit smaller than I imagined (an important benefit of buying in the money).

    0
    June 26, 2019
  2. Fred Stein said:

    Excellent move.

    Self-driving shuttles eliminate the need for two cars in the suburbs, reduce congestion and competition for parking for everyone, give its riders freedom to use their time for recreation or work, and take advantage of the HOV lanes. The economic and environmental cost per commute mile drops by over 50%.

    Apple can afford to own and operate the fleets. Car makers will have excess manufacturing capacity. Apple is the master of leveraging suppliers’s massive investments in capacity. Maybe Apple’s suppliers will manufacture in the US.

    1
    June 26, 2019
  3. David Emery said:

    Apple is bucking the downward trend in Tech stocks. At 10:30, it’s up 2.3%, NASDAQ is down 1.5%.

    1
    June 26, 2019
  4. Fred Stein said:

    One more advantage for Apple. They can subsidize car pool shuttles that require a human at the wheel for several years as part of the learning and product development.

    Apple could justify this expense solely as an employment perk in Silicon Valley and other areas with bad traffic.

    1
    June 26, 2019

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