Premarket Stocks: Apple’s Warp-Speed ​​Journey to $3 Trillion

The moment underscores both the enduring strength of Apple’s business, as it continues to sell tens of millions of iPhones per year, and investors’ deep commitment to a stock that is now a staple in portfolios around the world.

Quick rewind: When Apple went public in 1980, it sold its shares for $22 apiece — or 10 cents each, if you take into account the stock splits the company has announced to keep shares affordable and easy to trade .

But despite a band of loyal customers loyal to its Macintosh personal computer, the company struggled. In 1997, it was flirting with bankruptcy before rival Microsoft announced a surprise $150 million investment.

The real turning point came in 2007, however, when co-founder and then-CEO Steve Jobs unveiled the first iPhone, which he called “a revolutionary and magical product that is literally five years ahead of any other mobile phone.”

“We are all born with the ultimate pointing device – our fingers – and the iPhone uses them to create the most revolutionary user interface since the mouse,” he said at the time.

A touch-screen phone may no longer seem like a big deal. Yet it is a testament to Apple’s success. It sold its billionth iPhone in 2016.

When Apple crossed the $1 trillion mark in 2018, it faced tough questions about what would happen next. Many analysts thought it needed a major new product to keep up with sales and profits.

And yet: CEO Tim Cook has shown that Apple can keep customers coming back to upgrade their devices. During its most recent quarter, Apple generated $38.9 billion from iPhone sales, up 47% from the previous year, despite supply chain problems. The product accounted for about half of the total revenue.

The company has also built formidable businesses selling services like Apple TV+ and cloud space, growing out of its reliance on hardware. It also charges hefty fees from its app store, though its model has come under scrutiny.

Bottom line: The ongoing power of Apple’s iPhone business, combined with its differentiation into other services, has made the company a giant that now accounts for about 7% of the entire S&P 500. It’s huge – but it also has benefits.

And Wall Street is confident that the company can move forward. According to Refinitiv, 37 out of 43 analysts covering Apple believe their customers should buy the stock. The other six recommend retaining the existing stake.

“I think it could be a $250 stock,” said Munster, who predicts that Apple will unveil wearables later this year to capitalize on efforts to build the metaverse. “That would equate to a market cap of $3.8 trillion.”

Elizabeth Holmes pleaded guilty to four of 11 federal charges

Elizabeth Holmes, the former CEO and founder of failed blood-testing startup Theranos, was found guilty on Monday of four charges of defrauding investors, orchestrating the surprise collapse of a former tech icon.

Description, Description: The charges on which Holmes pleaded guilty included one count of conspiracy to defraud investors, as well as three wire fraud counts involving specific investors. Holmes faces up to 20 years in prison as well as a $250,000 fine for each count.

Elizabeth Holmes pleaded guilty to four of 11 federal charges

Holmes left the courthouse hand-in-hand with his partner, Billy Evans, his mother, and his father. As my CNN business colleague Sarah Ashley O’Brien reports, she was met by cameras and reporters, but did not comment on questions from reporters.

US Attorney Stephanie Hinds hailed the decision in a statement.

“In this 15-week trial, jurors navigate a complex case amid a pandemic and scheduling constraints,” she said. “The guilty verdicts in this case reflect Ms. Holmes’ culpability in this massive investor fraud, and she will now face punishment for her crimes.”

A jury of eight men and four women found Holmes not guilty of any counts involving defrauding patients. The jury deliberated for more than 50 hours before returning a verdict on eight of the 11 charges. It was unable to reach an agreement on the three charges.

A Step Back: The financial press has stuck to Holmes’ test because of what it uncovers about the startup ecosystem.

Holmes raised hundreds of millions of dollars from high-profile individuals including media mogul Rupert Murdoch, Oracle founder Larry Ellison, Walmart’s Walton family and former education secretary Betsy DeVos. Theranos was valued at $9 billion at its peak. She graced magazine covers as the richest self-made woman and has been called “the next Steve Jobs”.

That image was shattered in the wake of a 2015 investigation by reporter John Carrerou for the Wall Street Journal. In recent years, Holmes has been portrayed as a con artist who played to Silicon Valley’s worst impulses.

That said: The Theranos saga has done little to dampen enthusiasm in the startup ecosystem, where firms with unproven businesses have no trouble raising millions of dollars from venture capitalists and other wealthy investors hoping to win big. are. According to Pitchbook, venture capital firms invested nearly $239 billion in the first nine months of 2021, easily an all-time high.

When America’s Largest Car Maker Isn’t American

For nearly a century, the largest car manufacturer in the United States has been General Motors ,GM,, dominates the industry from its home base in Detroit, Michigan. But it’s about to lose that title – not a domestic rival like Wade ,F,,
Toyota ,tm, As my CNN business associate Chris Isidore reports, US auto sales are set to become a leader when it reports year-end figures on Tuesday.

GM’s sales lag behind Toyota in the first nine months of 2021. Its fourth quarter results are expected to lag even behind Toyota.

This is a sign that American companies are losing their dominance at the domestic level. As recently as 2005, Toyota was number 4 in US sales. Now, GM, Ford and Stelantis — the European automaker that owns Chrysler — control only 38% of the US market.

But this is not necessarily related to trade-offs in industry jobs. Toyota manufactures 70% of the cars and trucks sold in the United States at five plants in the country. In fact, its factory in Kentucky — which can produce 550,000 vehicles per year — is Toyota’s largest plant in the world.

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Posts the ISM Manufacturing Index for December at 10 a.m. ET, as well as the latest data on U.S. job openings.

Coming up tomorrow: CES, the massive consumer electronics trade show, will begin in Las Vegas. The event is being held in person for the first time since the pandemic hit.

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