Apple
Apple (AAPL) did it again!
The company kicked off their WWDC this afternoon with the traditional keynote presentation. That presentation is historically Apple’s unveiling moment for new technologies and products when the company showcases “one more thing.”
Investors almost appear confused by this afternoon’s keynote opening of the WWDC.
As per usual, Apple’s management walked viewers through a list of upgrades on Apple products far and wide.
The presentation focused on improvements to the iPhone, including an upgraded iOS that incorporates ChatGPT into Siri along with other AI functionality.
The long list of improvements, while somewhat impressive, felt like it failed to pack the punch necessary to get consumers and investors hyped for a strong upgrade cycle of Apple products.
For example, the crowd at Apple’s headquarters gave one of the largest cheers of the keynote when it was introduced that the iPad would now have its own built-in calculator. Up to now, users have had to rely on third-party calculator applications on the iPad.
That’s not a good sign.
Apple’s stock ran 20% higher from its recent lows after the company squeaked out an earnings report that didn’t send investors into a selling frenzy.
The stock beat earnings expectations by $0.02 but showed revenue growth of -4.3% compared to last year.
Shares closed almost 2% lower today at $193.12 and are preparing to challenge their 20-day moving average with a slight move lower. A break below that 20-day trendline and the $190 price would send the stock to $182 in short order where the technical analysis suggests short-term support.
CrowdStrike
CrowdStrike (CRWD) shares jumped 10% higher out of the gate this morning after Friday’s late announcement that the software security company would be added to the S&P 500.
Shares closed at $374.57 for the day (+7.3%) marking a new all-time high for CRWD shares.
Just last week, CrowdStrike announced better-than-expected earnings results for their latest quarter.
The company earned $0.93 per share, a beat of $0.04, while growing year-over-year revenue by more than 33%. The earnings news reversed a short-term selling spree that had taken CRWD shares below their 50-day moving average. The reversal higher followed by Friday’s news that the company would be joining the S&P 500 sets the stock back in a positive momentum trend.
Investors should expect to see a small “normalization” of the stock price as it consolidates from its recent volatility higher with support at the $350 price level.
Inclusion into the large-cap S&P 500 will happen before trading on Monday, June 24.
Nvidia
Nvidia (NVDA) stock closed higher by 0.75% today on its first day of post-stock split trading.
Shares opened this morning at $120.45, near one-tenth of Friday’s closing price because of the recently announced 10-for-1 stock split. 307,962,569 shares of Nvidia stock traded today compared to the second heaviest traded company in the Nasdaq 100, Apple, which traded 95,303,990 shares.
To put that into perspective, the value of Nvidia shares traded today was $37.5 billion, while Apple’s value of shares traded was $18.4 billion. Stock splits do not generate value.
Instead, they make a stock appear to be a better value. It’s easier to buy a $100 stock over a $10,000 stock, and a $5 stock over a $100 stock. You get the idea.
As pointed out in today’s “Morning Buzz,” Nvidia’s history with stock splits has generated relatively flat returns over the 30 days following the split.
That said, Nvidia and Apple are the two biggest “sell the news” trade candidates at the same exact time, something that investors should maintain a vigilant eye on.
For now, it will be natural to see Nvidia stock make a short-term “correction” to $110 – a 9.8% drop from today’s close.
About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.