Premarket: Apple is green, and rolling right past $500

apple premarket green 8-24From wsj.com’s “Global Stocks Rally on Potential Coronavirus Treatment” posted early Monday:

Global stocks and U.S. equity futures advanced Monday, putting the S&P 500 index on track to hit an all-time high, as investors’ optimism about a potential treatment for the coronavirus buoyed markets.

Futures tied to the S&P 500 rose 0.6%, suggesting that the U.S. stocks benchmark may open higher after closing at a record on Friday. Overseas, the pan-continental Stoxx Europe 600 climbed 1.4%, while most major Asian markets closed higher.

The Food and Drug Administration on Sunday said it authorized use of convalescent plasma, the antibody-rich blood component taken from recovered Covid-19 patients, for the treatment of serious coronavirus cases. The emergency-use authorization falls short of a full approval, FDA Commissioner Stephen Hahn said, adding that the agency will evaluate more evidence.

“Any news that’s positive on the virus is going to drive markets higher,” said Seema Shah, chief strategist at Principal Global Investors. “However, any news on a vaccine or treatment has to be treated with skepticism, given the process it has to go through before it’s used by the general population.”

My take: A little too good to be true.

See also: Knock, knock, knockin’ on $500’s door

8 Comments

  1. Bart Yee said:
    Agree, there is only anecdotal evidence that this works consistently and much more study needs to be done. Antibody levels can vary widely per convalesced patient, and the ability of the body to make more after plasma donation(s). Also, its likely that slightly different strains of COVID could engender different types of antibody responses so unclear if treatments would be consistently or usefully successful.

    Having said all that, the only way we are going to find out is to use what plasma becomes available, try to secure it, isolate the antibodies, standardize the amounts in some fashion for packaging and treatment protocols, and then use them on seriously ill patients, along with other potentially life-extending, or life-saving treatments. Its all rather complicated to sort out true cause and effect, but when someone’s life is in mortal danger, you pull out all the stops you can.

    I’m hoping these efforts will yield important data as well as hopefully a number of success stories. Asymptomatic infections or carriers may also yield a source of antibodies, not clear yet whether you need a full blown illness to create enough antibodies.

    Sentiment will affect AAPL pricing and Apple’s business prospects, although we have not yet talked about positive COVID news directly affects Apple in the long run. That would be a good speculation topic for the future.

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    August 24, 2020
  2. Jonny Tilney said:
    I believe there is (finally) recognition that advertising models don’t have quite such bright prospects… inversely improving prospects for Apple’s privacy model. P/E 40 is my guess for where the rerating adjustment stops.

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    August 24, 2020
    • Bart Yee said:
      Following up my premarket posts of the previous thread, at 8:00am EST, AAPL now at $513.60, +16.12. Looks like it will be a fairly volatile day if the premarket is any indicator.

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      August 24, 2020
    • Jacob Feenstra said:
      I’m not sure whether P/E at 40 will mean much to the current investment climate around AAPL. For various reasons—already listed by this Apple 3.0 community—people currently keep flocking to the stock. People are buying more than selling—that’s the sentiment. And unless people really ‘feel let’s get out’, the P/E will simply keep going up. (It won’t go as high as current TSLA though: 1050 P/E 😉 ) People are moving into Apple for the long-shot… what a number of us already did many years. Although to be fair, I predicted Apple would decline 5 years after Jobs death, and consequently had my finger on the sell trigger at that time. Cook has totally surprised me.

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      August 24, 2020
  3. Romeo A Esparrago Jr said:
    This is the Indy 500 for AAPL, the formula one race for success.

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    August 24, 2020
  4. Bart Yee said:
    Now at 8:45am, 45 minutes before the open, AAPL at $513.75, up $16.26 +/- 0.50.

    Looks to be a very strong open.

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    August 24, 2020
  5. Bart Yee said:
    Apparently during the premarket, at 8:03-8:04, someone sold a bunch of shares at the last close price of $497, similar happened to NFLX. Wonder if got mixed up or screwed up their order? Or related?

    A very short lived down spike.

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    August 24, 2020
  6. Paul Brindze said:
    And I happily sink beneath the waves on my $125 prediction for the 31st.

    Thank god for Scuba (and being all long).

    🙂

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    August 24, 2020

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