This week’s Apple trading strategies (10/12-10/16)

A place for Apple traders and investors to share their best ideas.

To get things rolling, here’s Needham’s Laura Martin telling CNBC’s Power Lunch what she would do to undermine the App Store if she were a regulator bent on curbing an Apple monopoly…

Below: Apple vs. the S&P 500 (normalized)…

Apple trading strategies 10-12

Disclosure: Although I am now an Apple shareholder (see Why I bought a share of Apple, my first), I am in no position to give trading advice. Don’t blame me if you drain your IRA doing something you read about here.

See also last week’s trading strategies.


  1. Fred Stein said:
    Needham gets it.

    It’s not possible to write laws to regulate the App Store without writing laws that explicitly call out App Store and Google Play (And, I guess ignore, Galaxy App Store which has not had to testify.)

    And customers, i.e. voters, love both Apple and Amazon because they both deliver great UX.

    October 11, 2020
  2. Jerry Doyle said:
    Never underestimate the power of the government, especially its career lifetime civil servants who basically believe “they” run government. These individuals understand fully that anti-trust legislation vengefully designed to punished the mere acquisition of wealth would be destructive, but ignoring the worse or denying the existences of abuses cries for remedies.

    Career politicians and career civil servants are sensitive not to stifle enterprise, but do feel compelled in the government’s right to protect the public from monopolies and vulgar forms of social advertisements. They regard the judicial system as an ineffective arena for controlling big tech.

    For the DOJ simultaneously to litigate more than a limited number of major suits is not feasible and protracted delays oftentimes mean that even a favorable decree may be little more than an empty victory. Regulation, by far, is more a prudent remedy.

    Unlike anti-trust proceedings, federal regulations require the approval in both Congressional chambers. The country, if moved more toward socialism, uses the functions of federal government in a much less limited venue. Then, all regulations which affect closely the lives of the people are shifted into the hands of government. Socialism extends the power of the government to an unlimited degree.

    October 11, 2020
  3. John Konopka said:
    It’s unfortunate that they are treating Apple and the others as one issue as they are all quite different.

    In the case of Apple they really don’t seem to understand the issue. It is not that there are a handful of aggrieved developers. The App Store basically works fine. What they could do is push for better transparency, a normalized appeal path, maybe better fairness in discovery. It is true that there are millions of developers. With so many careers in the balance it would be good if they had some protections against capricious implementation of policy. I’ve heard that the Apple reviewers provide different responses on Monday morning vs later in the week, for example. Not surprising that Apple would have some blind spots about the App Store, we all do. The question is how to fix it.

    I’m not sure how they would get there. Laws and regulations tend to be more like a sledge hammer when something more nuanced is needed. Maybe the developers need a professional society with some sort of bargaining power. That might tilt the playing field a bit instead of having individual developers in conflict with Apple.

    It is not my area but maybe something like the IEEE could help them organize?

    October 11, 2020
    • David Emery said:
      Ugh! I have a lot of experience with IEEE, and I would not recommend that.

      Either you’d get people with their own private agenda, or you’d get a committee that doesn’t understand the issue.

      Or both.

      October 11, 2020
  4. David Drinkwater said:
    OMG, did you just say “union”? (light tone intended)

    I am not pro or con unions. I do think that collective bargaining can help at times. But in this case, we are not talking about dock workers. We are talking about workers to *aspire* to jump on the gravy train.

    If the people want *on* the gravy train by choice, it seems difficult to me for anyone to cry “monopoly”.

    October 11, 2020

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