The Apple Event Curse: Why Does Apple's Stock Drop After New Product Launches?

listen up folks hello everyone welcome to the US Stock Market Channel today is Tuesday September 10th 2024 today we are going to talk about revealing the curse of Apple's new product launch why do stock prices always fall let's take a look at the closing of the US Stock Market Today and the current market situation US Stocks closed mixed on Tuesday with the S&P 500 Index closing higher for the second consecutive trading day the US Stock Market has entered a critical juncture the important August CPI inflation index will be released on Wednesday and the Federal Reserve will hold its September monetary policy meeting next week International crude oil prices plummeted with Brent crude oil hitting a new low since December 2021 the Dow fell 92.6 3 points or 0.23% to 4,736 n6 points the NASDAQ Rose 141 1.28 points or 0.84% to 17,25 point88 points the S&P 500 Rose 24.4 to7 points or 0.45% to 5,495 52 points the current sentiment in the US Stock Market is cautious investors are keeping a close eye on us recession fears and the possibility of a soft Landing with the labor market cooling many Market participants are concerned that the fed's actions may have lagged behind what is actually needed historically September is a weak month for stocks investors remain cautious about the impact of seasonal factors on stocks and uncertainty surrounding the upcoming US presidential election on November 5th this week Traders are watching two key economic reports that could be the next Catalyst for stocks the August Consumer Price Index CPI report will be released on Wednesday followed by the producer price price index PPI on Thursday later on Tuesday former US president Trump will debate US vice president Harris Grace Peters Global head of investment strategy at JP Morgan private bank said we need to see what happens in reality to see if it affects the market we will pay attention to debate topics such as import taxes trade policy and taxes according to data from Goldman sax group hedge funds are closing positions to prepare for Market volatility before the November 5th election before the debate between Harris and Trump the CBOE volatility index vix a measure of Market Panic hovered around 20 compared to the 2024 average of 14.8 this suggests an increased demand for protection against stock volatility according to Bank of America data the vix typically Rises by about 25% between July and November in election years as investors pay more attention to the impact of candidates policy proposals on the market let's get back to the topic of the curse of Apple's new product launch we're diving into the world of apple and a curious phenomenon known as the Apple event curse you know the drill Apple announces a shiny new iPhone The Crowd Goes Wild and then the stock takes a dip is this just bad luck or is there something else at play buckle up because we're about to break down this wall Street head scratcher we'll look at the history the psychology and the cold hard data by the time we're done you'll have a whole new perspective on Apple and the Market's reaction to its iconic product launches this isn't just about Apple though this is about understanding how Market expectations work it's about separating the hype from the fundamentals and most importantly it's about making smart investment decisions in a world a wash in information and sometimes misinformation so grab your thinking caps because things are about to get interesting let's rewind the tape and look at some history time and time again we've seen Apple's stock price take a hit following a major product launch remember the iPhone 5S Sleek design but the market yawned and the stock dipped the iPhone t a technological leap but investors hit the sell button now I'm not saying every single launch leads to a downturn that's just not true but there's a clear pattern here a trend that's hard to ignore and to understand it we need to dig deeper into the psychology of the market [Music] hold on a second Kramer before you write off apple as cursed let's look at the bigger picture sure there might be these short-term dips after product launches but zoom out people look at Apple's yearly performance more often than not they're in the green apple is a long-term growth story they've got brand loyalty a loyal customer base and a knack for Innovation so yes the stock might wobble a bit after a new iPhone is announced but over the Long Haul Apple has consistently delivered for investors don't let the short-term noise distract you from the bigger picture here's a Wall Street saying As Old As Time buy the rumor sell the news it's a classic Market pattern and it plays out again and again especially with companies like apple think about it months before a new iPhone comes out the rumor mill is churning leaks speculation everyone's buzzing with anticipation this excitement often gets baked into the stock price investors Buy in hoping to capitalize on the hype then the big day arrives the news drops and investors start taking profits the hype bubble bursts and the stock dips it's a classic case of buy the rumor sell the news section five the art of managing expectations Apple's Balancing Act Apple's a master at building hype they know how to create create a buzz how to make their events mustsee spectacles but this creates a double-edged sword the higher the expectations the harder it is to impress Wall Street Apple's walking a tight RPP they need to generate excitement for their products but they also need to manage expectations it's a delicate Balancing Act and sometimes no matter how groundbreaking the product it's just not enough to satisfy the Market's insatiable appetite SE six sales figures the proof is in the pudding look all the hype in the world doesn't matter if the product doesn't sell the real test comes when Apple releases its quarterly earnings report that's when we see the cold hard sales data did they move enough units did they meet Revenue projections if the numbers are good the stock usually rebounds but if sales disappoint Watch Out Below that's when the Apple event curse can really rear its ugly head remember investors are a Fickle Bunch they want to see results section seven the macro lens economic winds and Apple's sales here's the thing about the stock market it's not just about individual companies it's about the broader economic landscape Apple might be a Titan but even Titans are affected by global headwinds think about it a trade war with China a global recession even a pandemic these things can all impact consumer spending and in turn Apple's bottom line sometimes the Apple event curse has nothing to do with apple itself it's just a symptom of a larger economic [Music] malaise section eight short-term Jitters long-term gains understanding the pattern so what have we learned the Apple event curse is a real phenomenon but it's not some Mystical Force It's a combination of factors Market psychology hype Cycles sales data and the everchanging global economy the key takeaway is this don't get caught up in the short-term noise yes Apple stock might dip after a product launch but if you believe in the company's long-term prospects those dips can be buying opportunities section nine don't sweat the small stuff a message for long-term investors here's my advice to all you investors out there tune out the noise ignore the hype focus on the fundamentals does Apple make great products yes do they have a loyal customer base absolutely are they a leader in Innovation you bet as long as those things hold true Apple will continue to be a Powerhouse so don't sweat the small stuff don't panic when the stock dips after an Apple event remember you're not in it for the quick Buck you're in it for the long haul and in the long run Quality Companies like apple tend to reward patient investors thank you for watching if you find these analyses helpful don't forget to like subscribe and click the notification Bell to get more 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