Apple is the world's largest company by market capitalization and arguably, one of the best stocks for investors and traders alike to focus on these days; and today, even more focus has been placed on the stock. In an early morning announcement on Twitter, Billionaire Carl Icahn stated that he had sold the rest of his shares of Netflix because Apple presented a better opportunity. Today, we'll talk about how Icahn's decision to sell Netflix for Apple affected movement in the market today, what is so valuable about Apple, and what we can expect to see moving forward. So, let's get right to it…
How The Market Reacted To The News
As we expect to see any time a billionaire moves, the market tends to follow. So, after billionaire Carl Icahn said, “Sold last of our $NFLX today. Believe $AAPL currently represents same opportunity we stated NFLX offered several years ago.” Netflix stock plummeted; giving up all the gains it saw yesterday. However, Apple got a nice boost off of the news. After a steep morning rise, Apple fell back to $128.11 per share with a net gain for the day of 0.85%.
Why There's So Much Value In Apple
When you think of Apple, the first thing that comes to mind is most likely the iPhone. However, there are far more reasons than just the iPhone for investors to expect growth in Apple stock. Here are just a few…
Constant Innovation – Apple is a company that's known for being on the cutting edge of technology thanks to constant innovation in the field. This has led to a wide range of products and technologies that far surpass the abilities of those provided by the vast majority of their competitors. With the company's constant focus on improving the capabilities of the products it provides, and increasing the amount of products offered, it's hard to imagine that Apple would decline in value any time soon.
Apple's Ecosystem – Another important factor to consider when it comes to Apple's stock is that when we talk about Apple, we're not just talking about a company that offers quite a few products. Instead, we're talking about a company that has created an entire ecosystem around its products. For example, the iPhone can be the remote control for Apple TV; and without the iPhone, consumers can't unlock the full potential of the Apple watch. The bottom line is that Apple hasn't simply created a line of incredible products, they've created products that communicate with and feed off of each other for a better user experience.
Ability To Dominate – Finally, Apple has an impeccable ability to dominate some of the most competitive markets. Just look at the iPhone. It is literally the best selling smartphone in the world! So, Apple isn't just good at creating great products, they're great at marketing these products to generate sales and revenue!
How To Benefit From Apple's Future Trends
Keeping the three factors above in mind, and following big money tells us that Apple has far more upside potential than downside risk moving forward. So, when trading Apple, traders will want to wait for the value of the stock to reach support. From there, it is likely to climb in a big way; so purchasing calls will generally prove to be incredibly profitable.
What Do You Think?
Where is Apple headed and why? Let us know in the comments below!