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Apple Roundup: Berkshire, $2 Trillion, Teen Hacks, FaceTime
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Last week, Berkshire stocked up on Apple (AAPL - Free Report) shares, a long-time analyst talked about the next trillion dollars in its valuation, an Aussie teen hacked in to its computer and more.
Berkshire Gets More Apple
Warren Buffett’s Berkshire Hathaway added to its steadily growing position in Apple, as the consumer-focused technology company continues to move from strength to strength, making relatively fewer mistakes than many of its peers. Berkshire’s Apple holdings grew by 12 million shares and now constitute 24% of its holdings, giving him an ownership stake of 5% in Apple.
The fund’s policy is to keep holdings in any company at under 10% to avoid regulatory compulsions, so there’s scope to add much more. Between the time that he first invested in Apple in 2016 to today, Apple stock has gone from $93 to $210, so investors would be pleased.
Quite the opposite is the case with Einhorn’s Greenlight Capital, which has been taking losses of late and seeing investors cash out. Einhorn recently cut its stake in Apple and some other stocks, possibly to raise capital to offset losses resulting from his bet on Bayer, which fell 10% following jury findings that its Monsanto unit failed to warn that its weed killers pose cancer risks.
Berkshire’s move speaks of the confidence in Apple shares, especially given escalating trade tensions with China, which remains a very important market for Apple, and to a much lesser extent, Turkish present Erdogan’s bombast about boycotting American electronics (especially from Apple) in response to President Donald Trump’s attempt to meddle in its internal affairs.
Analyst Looks to $2 Trillion Valuation
Long-time Apple analyst, Ming-Chi Kuo, now at Hong Kong-based TF International Securities, has put out a note naming the next two genres that will take Apple to a $2 trillion valuation. In his words, "Services, AR and Apple Car will create Apple's next trillion-dollar market cap."
As far as AR is concerned, the company has been dropping tantalizing hints of its progress, along with promises that its entire product line will someday have AR, introducing a new file format called USDZ to facilitate rendering for AR developers and launching ARKit 2. AR glasses including their own small displays and processors are also in the works for a tentative launch some time in 2020 if media rumors are to be believed.
A couple of years after that will come Apple’s own electric car. This is news because there have been an equal number of reports saying that Apple will just sell the technology for other people’s cars the way Alphabet’s (GOOGL - Free Report) Waymo is doing, or at least that it was undecided on the issue. The return of high profile engineer Doug Field from Tesla (TSLA - Free Report) , where he was in charge of vehicle engineering, is significant in this context.
Aussie Teen Hacks
A 16-year old Aussie fan of Apple, hacked the company’s mainframe from his suburban home and accessed 90GB of data over the course of a year that he stored in a file called “hacky hack hack” and then boasted about it on WhatsApp.
Apple said that its security personnel “discovered the unauthorised access, contained it, and reported the incident to law enforcement” and said of its customers that “at no point during this incident was their personal data compromised."
Apple contacted the U.S. FBI, which referred the case to the Australian Federal Police (AFP) and the above details were uncovered in court. So Apple’s assurance that personal data wasn’t compromised doesn’t make sense.
The teen’s identity is not being disclosed because of his age, but a sentence is due on September 20. Pity because his “dream” was to work at Apple.
Delays Group FaceTime
"Group FaceTime has been removed from the initial release of iOS 12 and will ship in a future software update later this fall," Apple said in its latest developer release of the software
There it is. Like it or not, and question it or not since it has been in testing for a while, this major feature upgrade that allows up to 32 people to video chat at the same time and supports Apple's Animoji, won’t make it to iOS 12 when it launches with the new line of iPhones and iPads next month.
Pulls China Apps
Apple has reportedly removed 25,000 apps from its China App Store that the Chinese government didn’t approve of. But since this is just 1.4% of the total apps available according to CCTV, it may not be such a big deal. Wagering apps are illegal in China, so a large number of these apps were removed.
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Apple Roundup: Berkshire, $2 Trillion, Teen Hacks, FaceTime
Last week, Berkshire stocked up on Apple (AAPL - Free Report) shares, a long-time analyst talked about the next trillion dollars in its valuation, an Aussie teen hacked in to its computer and more.
Berkshire Gets More Apple
Warren Buffett’s Berkshire Hathaway added to its steadily growing position in Apple, as the consumer-focused technology company continues to move from strength to strength, making relatively fewer mistakes than many of its peers. Berkshire’s Apple holdings grew by 12 million shares and now constitute 24% of its holdings, giving him an ownership stake of 5% in Apple.
The fund’s policy is to keep holdings in any company at under 10% to avoid regulatory compulsions, so there’s scope to add much more. Between the time that he first invested in Apple in 2016 to today, Apple stock has gone from $93 to $210, so investors would be pleased.
Quite the opposite is the case with Einhorn’s Greenlight Capital, which has been taking losses of late and seeing investors cash out. Einhorn recently cut its stake in Apple and some other stocks, possibly to raise capital to offset losses resulting from his bet on Bayer, which fell 10% following jury findings that its Monsanto unit failed to warn that its weed killers pose cancer risks.
Berkshire’s move speaks of the confidence in Apple shares, especially given escalating trade tensions with China, which remains a very important market for Apple, and to a much lesser extent, Turkish present Erdogan’s bombast about boycotting American electronics (especially from Apple) in response to President Donald Trump’s attempt to meddle in its internal affairs.
Analyst Looks to $2 Trillion Valuation
Long-time Apple analyst, Ming-Chi Kuo, now at Hong Kong-based TF International Securities, has put out a note naming the next two genres that will take Apple to a $2 trillion valuation. In his words, "Services, AR and Apple Car will create Apple's next trillion-dollar market cap."
As far as AR is concerned, the company has been dropping tantalizing hints of its progress, along with promises that its entire product line will someday have AR, introducing a new file format called USDZ to facilitate rendering for AR developers and launching ARKit 2. AR glasses including their own small displays and processors are also in the works for a tentative launch some time in 2020 if media rumors are to be believed.
A couple of years after that will come Apple’s own electric car. This is news because there have been an equal number of reports saying that Apple will just sell the technology for other people’s cars the way Alphabet’s (GOOGL - Free Report) Waymo is doing, or at least that it was undecided on the issue. The return of high profile engineer Doug Field from Tesla (TSLA - Free Report) , where he was in charge of vehicle engineering, is significant in this context.
Aussie Teen Hacks
A 16-year old Aussie fan of Apple, hacked the company’s mainframe from his suburban home and accessed 90GB of data over the course of a year that he stored in a file called “hacky hack hack” and then boasted about it on WhatsApp.
Apple said that its security personnel “discovered the unauthorised access, contained it, and reported the incident to law enforcement” and said of its customers that “at no point during this incident was their personal data compromised."
Apple contacted the U.S. FBI, which referred the case to the Australian Federal Police (AFP) and the above details were uncovered in court. So Apple’s assurance that personal data wasn’t compromised doesn’t make sense.
The teen’s identity is not being disclosed because of his age, but a sentence is due on September 20. Pity because his “dream” was to work at Apple.
Delays Group FaceTime
"Group FaceTime has been removed from the initial release of iOS 12 and will ship in a future software update later this fall," Apple said in its latest developer release of the software
There it is. Like it or not, and question it or not since it has been in testing for a while, this major feature upgrade that allows up to 32 people to video chat at the same time and supports Apple's Animoji, won’t make it to iOS 12 when it launches with the new line of iPhones and iPads next month.
Pulls China Apps
Apple has reportedly removed 25,000 apps from its China App Store that the Chinese government didn’t approve of. But since this is just 1.4% of the total apps available according to CCTV, it may not be such a big deal. Wagering apps are illegal in China, so a large number of these apps were removed.
Recommendation
Apple shares carry a zacks Rank #2 (Buy). For better options, consider Cypress Semiconductor , Xilinx or NetApp (NTAP - Free Report) , or see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>