Besides automotive, technology and investment are two of our chief interests. As Silicon Valley companies like Google, Apple, and Tesla take a closer look at cars, our favorite subjects converge in a mix that we figure is worth talking about.
The point of this article is to talk about one notable technology company from an investment perspective. Of course, as a car dealership we are not dispensing investment advice or counsel. Think of this as conversation about a mutually interesting topic.
Company of the week: Apple
Who doesn’t enjoy speculating about the merits of Apple? It recently found itself in the headlines when Alphabet (Google’s parent company) surpassed it in overall market value. The two are neck and neck around $525 billion in market capitalization, though Alphabet has the lead at the moment.
Many people are worried about Apple because of middling iPhone sales, vague Apple Watch adoption rates, the rumored Apple Car project, slowing demand from China, and the massive headquarters project in California.
Still, all that uncertainty is great news for bullish investors. With new iPhones and a probable new version of the Apple Watch in the works for September, this could be a good time to buy if you’re an optimist.
But does that make it a good investment decision?
There is a difference between how a company is doing in the real world and how it does on the market. While it’s tempting to see new products on the horizon and think it’s a great time to buy, we would recommend looking into options instead.
Options are for people who aren’t terribly confident about anything. They allow you to make a small bet on what you think might happen. If you’re right, they pay off handsomely. If you’re wrong, they’re worthless. But because they (probably) didn’t cost that much in the first place, you’re not in the hole too much.
As Apple nears its big event in March, where it might launch a new version of the iPad, a smaller version of the iPhone, and some type of update about the Watch, it might be nice to have a few options in hand.
Conclusion: Who knows
There’s your daily speculation. As we said before, we’re not financial advisors, so talk to someone more learned before you do anything. If it works out well for you, however, let us know on Facebook! It’ll give us something to talk about when you come in for a test drive.