The Apple car has been something of a phantom as of late. For nearly a year now, many experts have been talking about the idea that Apple is building a self driving car. The rumors aren't without merit. The reality is that Apple's largest competitor, Google is building a car that drives itself and has even done many manned tests. Not to mention, Apple has applied to be able to put its logo on automobiles. Now, news is coming out that the Apple car rumor really isn't a rumor. In fact, it may be further along in production than anyone thought.
Apple Is Building A Self Driving Car
According to The Guardian, the Apple car rumor isn't a rumor at all. As a matter of fact, the online publication recently published an article proclaiming that the Apple car is actually in production and further along than we thought. According to the article, engineers from Apple's secretive self driving car project had a meeting with officials from the GoMentum Station in an effort to use the station to test a vehicle. GoMentum Station is a 2,100 acre facility near San Francisco that was used in the past as a naval base. Today, it has been turned into a testing ground for autonomous vehicles that's heavily guarded by the US military. According to the Guardian, Apple engineer Frank Fearon wrote the following in correspondence obtained under a public records act request…
“We would… like to get an understanding of timing and availability for the space, and how we would need to coordinate around other parties who would be using [it].”
So, peering into public records, it becomes clear that Apple indeed wants to use the GoMentum Station for some kind of testing. Considering the space itself and current Apple products, the only thing that would make sense for testing would be an Apple car. Not to mention, if Apple is in the testing phase, they are far beyond the level at which anyone thought they were with regard to the self-driving car!
What This Means For The Stock
Apple has been struggling as of late; declining month over month for the last 3 months. However, this could be just the news that causes investor excitement. After all, if Apple did release a self-driving car, it's almost a guarantee that the car would drive profits for the company. As a matter of fact, although the stock has been plummeting recently, we saw gains on AAPL today. Currently the stock is trading at $117.16 per share after a gain of 1.03%. Although, some would say that this isn't attributed to the news of the Apple car, I'd have to argue against that assumption. The reality is that Apples iPhone sales have struggled; causing a black cloud to appear over the stock. Faithful investors simply needed positive news to start sending it back on the uptrend; and that positive news came today.
What We Can Expect To See Moving Forward
Apple has become an incredibly volatile stock as of late; and I don't think that's going to change any time soon. However, I do think that the news that Apple is in the development process with regard to creating a self-driving car is enough to give the bulls some ammunition in the fight. With that said, I am expecting to see a continuation of volatility overall; however, I think the overall trend will start to move in the upward direction.
Take Advantage Of Volatility For Profits
When it comes to Apple, we can expect to see strong movements in both directions. With that said, binary options traders should take advantage of this momentum; making profits both ways. When the stock reaches support, purchase calls to ride it up to resistance. When it reaches resistance, purchase puts to ride the wave down. Both trades will likely prove to be profitable.
What Do You Think?
Where do you think Apple is headed and why? Let us know in the comments below!