…Until the WWDC keynote started. Then it began to drop. And it took a nosedive at the precise time that the starting price of the new Vision Pro Headset was announced: $3499. Plus I’m sure the fact that it won’t even be available until “early 2024” didn’t help matters. I too am disappointed at that price, but, perhaps, like the iPhone, the price will be cut in half once Apple gets a sense for how popular this new thing might be? The technology truly does look ground breaking to me, and the tie-in with Disney also seems like a really promising development.
A drop of less than 1% isn’t a nosedive.
Of more importance is the long term market development of the FAMILY of Apple headsets and only the first one has been revealed. For investors, this announcement is the start. Not a conclusion.
He is no fool who gives what he cannot keep to gain what he cannot lose.
True, but I wonder what the market was expecting leading up to the keynote, but then became disappointed in when it started. Perhaps just standard “rise on rumors, drop on (any) news” behavior.
A lot to absorb, but we have a few months… Some awesome tech tucked in there…
“Buy on rumor, sell on news” is a longstanding behavior of the market with respect to many companies and stocks, and it’s particularly true of AAPL, given how rumors fly for Apple. Buy when the rumors and speculation remain open-ended and even fanciful, sell when the rumors and speculation get locked into reality.
I don’t always interpret any sell-on-news decline as market disappointment with an announcement. Rather, once speculation on new products has ended and specifications and features have been locked in, rise in stock price due to speculation – which is easy – has to give way to rise in stock price due to increased value due to future sales of the product – which is hard. So, buy on rumor, sell on news is a short term strategy only, and those who have a long-term interest in the new product can look for reentry points some time after the sell-on-news decline.
Given the next-year release of the AVP, investors have a long, long time to evaluate the future up-side, if any, due to the new product.