Every time Apple gathers tech press for an event, TechCrunch takes the time to track the impact of the company’s announcements. on the cost of equity. The result is usually nothing at all; investors simply don’t trade Apple based on the products or services it announces.
If this surprises you, welcome to the club. You might think that the gist of what Apple announces matters to people buying and selling its stock on any given day, but most of the time it doesn’t.
Today’s chart clearly shows this lack of connection. Here is stock market data at approximately 3:00 pm ET today comparing Apple stock to Nasdaq composite trading over the same time period, including during a pre-recorded video presentation:
The Apple event kicked off around 1pm ET, and after that, the two queues stayed together – just like before. To be honest, it’s hard to see any real divergence at all, even though I made detailed notes of the smallest price movements during the presentation.
But that doesn’t mean the Apple event had No impact on the stock market. So it was, in the form of a blow to the cost of Affirm. Affirm is a publicly traded buy now, pay later (BNPL) service that competes with Klarna, Sezzle and other similar services from fintech giants. Apple also entering the gamethe company announced today, with a service called Apple Pay Later.
The news resulted in a temporary drop in Affirm shares. The pink arrow indicates when the Apple Pay Later news broke:
So, we have seen the impact of the Apple events. a stock, just not the one we expected; investors are paying attention, at least a little.
Unfortunately, not every company that was mentioned directly or indirectly saw a move towards Apple’s words. Bird, the e-scooter company that took SPAC to the public markets, is trading at $0.71 a share today, down 5.4%. Apple briefly mentioned their hardware in their keynote. The action did not move.
Apple’s event did nothing for its own stock, hurt Affirm, and didn’t save Bird. Here is the reality distortion effect.
If you’re more interested in what Apple was talking about, go here for all our coverage.
Credit: techcrunch.com /