Apple Just Got Crushed… Again
Joe Hill|May 11, 2024
Like a piano set beneath a hydraulic press, Apple (AAPL) stock got crushed on Friday.
Don’t get the reference? That’s ok…
The CliffsNotes version is that Apple released a commercial for its new ultra-thin iPad Pro on Tuesday, in which it crushes instruments, sculptures, paint cans and other icons of human creativity beneath a giant hydraulic press.
Here’s a screenshot taken from YouTube:
Once the press has thoroughly flattened (well, destroyed) all those archaic tools of expression, it lifts to reveal Apple’s latest and most advanced iPad.
The thing is really thin. Get it?
Unfortunately, critics were none-too-impressed with Apple’s apparent distaste for the analog arts. With a growing number of folks – from artists to white collar workers – worried that Big Tech is going to eliminate their jobs, Apple’s message struck a sour note.
The backlash became so loud that the company was forced to issue an apology just two days later. “We missed the mark with this video,” said Apple’s VP of marketing communications, “and we’re sorry.”
It’s just the latest in a string of unfortunate events for Apple. (Though, on the bright side, it did serve as a topical anecdote to kick off this week’s Town Hall with Manward Executives.)
The narrative surrounding the company has turned quite negative. Before it reported better-than-expected earnings on May 2, shares were down more than 10% for the year.
Things were just starting to look up. And then… Friday’s drop.
That’s the power of narrative.
As Shah wrote in yesterday’s Total Wealth:
Narratives are powerful drivers of market behavior, capable of influencing short-term trading and creating significant volatility. While they can provide opportunities for traders to make quick gains, they also pose risks. Especially when the narrative diverges significantly from economic realities.
That’s why it’s so important that you understand what’s happening behind those big swings.
If you haven’t already read Shah’s piece, check it out here.
And keep scrolling for links to everything else we published this week.
