During Black Friday week, Apple stock moved 1% lower. Here are some highlights of the Apple Maven’s coverage over the past four trading days.
What moved Apple's stock 3% lower on Monday
On Monday, November 23, Apple shares had their worst day of the past three weeks. A shift away from large-cap growth stocks and some tough love from Wall Street may help to explain the decline in share price.
- Commission waiver: Apple extended its App Store commission discount to providers of digital classes and events from December 2020 to June 2021.
- A bad apple: Apple chief security officer was accused of offering to donate 200 iPads to the Santa Clara Sheriff's Office in exchange for four concealed carry permits.
- A bit of tough love from one Wall Street expert. Credit Suisse’s Matthew Cabral, who has a “hold” rating on the stock, released a research note on Monday.
What to expect of Apple stock through the end of 2020
There is only one month left in 2020, a year in which Apple shares sparkled before losing steam in September. As I have mentioned recently, Apple has largely run out of headline-grabbing catalysts for the remainder of the year. But this is not to say that the stock might not move in the last month of 2020.
- Broad market movement: In my opinion, Apple stock will more likely be “pushed around” by broad market forces, rather than driven by company-specific ones. At one point, I expect Apple to recover some lost ground relative to cyclical stocks. I do not believe, however, that the next leg up will happen in 2020, maybe not even in the first couple of months of 2021.
Holiday season: The other potential driver of share price upside (or downside) is the 2020 holiday season. Apple enters it with a wide range of new devices, from the iPhone 12 to the ARM-based Mac and quite a bit in between.
Best Black Friday deals for Apple investors and enthusiasts
Apple kicks off its four-day shopping special on Friday. The company is providing gift cards worth up to $150, with the highest reward offered with the purchase of a 16-inch MacBook Pro or 21.5 inch iMac. Many other Apple products qualify for a gift card worth either $25 or $50.
But other retailers, just as Amazon, will be offering great deals on Black Friday weekend as well.
Optimism for Apple's holiday season
Generally speaking, I am cautiously optimistic about Apple’s end-of-year sales for the following reasons:
- The company enters the Black Friday weekend with perhaps the most robust lineup of products and services. Apple has recently refreshed most of its flagship devices, from the iPhone to the Apple Watch to the Mac and beyond. The company has also started to offer services as a bundle for a discounted price.
- This year’s shopping season may be quite unique due to the global pandemic. Spending habits are likely to shift away from travel and entertainment, as COVID-19 cases continue to spike, and towards goods and services that can be used at home. This dynamic could favor companies like Apple.
- Apple’s four-day shopping special around Black Friday could help to boost demand. The company is offering gift cards worth up to $150 in certain global markets. The promotion is not a new initiative, as Apple offered up to $200 in incentives this time last year.
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(Disclaimers: the author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting The Apple Maven)