"In their latest podcast, Doug McIntyre and Lee Jackson discussed Apple (AAPL) and why its stock has been unusually flat as of late. Making it even more bizarre is that this comes during one of the biggest tech rallies in years. As Doug explains, "If you said to me that Apple was gonna be flat during one of the biggest tech rallies in recent memory, I'd say that's impossible.""
"Doug and Lee argue that the company's failure to capitalize on the current AI wave is largely responsible and that Apple is virtually the only major tech firm not engaged in the "circular trades" or partnerships driving AI investment. Doug criticizes Apple CEO Tim Cook for not putting Apple in the AI "sandbox" alongside Nvidia, AMD, and IBM, saying Cook has done a disservice to its shareholders."
"Lee agrees, saying the excitement around new iPhones has worn off because the updates are incremental and no longer feel innovative. "I don't care if the camera's better," Lee explains. "I look at the new one and I go, 'It's 1200 bucks and I don't need one.'" He and McIntyre reflect that under Steve Jobs, Apple consistently introduced groundbreaking products, whereas now it seems to simply repackage the same devices each year."
Apple's stock has remained unusually flat despite a major tech rally. The company has not capitalized on the current AI wave and appears to be one of the few major tech firms not participating in AI partnership "circular trades" that drive investment. Leadership choices have left Apple out of the AI "sandbox" with Nvidia, AMD, and IBM, harming shareholder value. iPhone updates feel incremental and no longer excite buyers. Apple failed to monetize its cloud infrastructure like AWS. Government relationships have become mostly negative. Apple has lost its innovative spark and faces vulnerability in an AI-driven landscape.
Read at 24/7 Wall St.
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