Apple: The World’s No. 1 Company – Short Selling the Stock (NASDAQ: AAPL)

Japan, Tokyo, Ginza, Apple Store,

fazon1/iStock Editorial via Getty Images

On April 1, 1976, Steve Jobs, Steve Wozniak and Ronald Wayne founded Apple Inc. (NASDAQ:AAPL), who changed the world. In Steve Wozniak’s biography, he wrote that Apple was a better name than alternatives. “We (Jobs and Wozniak) both tried to find tech-sounding names that were better, but couldn’t find any good ones.. “Apple is the name because the pair couldn’t come up with anything better. In 1976, Wozniak and Jobs worked together in Steve Job’s garage. They funded their vision by selling Steve Job’s Volkswagen minibus and Steve Job’s programmable calculator. Steve Woznyak.

AAPL’s first product, Apple-1, marked the beginning of the personal computer industry. Apple-1 was a working circuit board, but at Job’s insistence, it was in a self-contained machine in a custom-molded plastic case, not the steel box that housed the early machines. The Apple-II also offered a color display which made Wozniak’s first microcomputer attractive to ordinary people.

With more than a few speed bumps along the way, AAPL continued to grow. Many analysts believed that the death of Steve Jobs in 2011 caused the company to lose its heart, soul and marketing edge. Over the past eleven years, his hand-picked successor, Tim Cook, took the company to the next level, making AAPL the most successful company in the United States with the largest market capitalization.

AAPL is an amazing company, but APS ran out of stock on March 11.

Apple’s long-term trend is simply amazing

In September 1984, AAPL shares traded at 11 cents adjusted for the allocation.

Long-term bullish trend in AAPL stocks

Long Term AAPL Chart (Histogram)

After breaking above the $1 level in 1999 and 2000, the stock fell below until 2004. From 2009, AAPL shares took off higher, reaching a high of $182.94 in January 2022 .

AAPL has an impressive market cap and is a core holding for many portfolios

The AAPL is the first US stock with the largest market capitalization. At the $154.73 level on March 11, Apple Inc’s market capitalization was $2.525 trillion. AAPL is a staple holding for many portfolios and the leading tech-heavy NASDAQ stock.

AAPL expertly navigates the analyst community in under-promising and over-promising quarterly results.

Apple - Uptrend in earnings and outperformance over the past four quarters

Quarterly EPS – AAPL (Yahoo Finance)

The chart shows that AAPL has exceeded analysts’ consensus EPS forecasts in three of the last four quarters and met estimates in the third quarter of 2021. AAPL will report its first quarter 2022 results on April 6, with the market expecting until the company earns $1.43 per share, below the $2.10 level in Q4 2021.

Apple - Uptrend in revenue and earnings since 2018

AAPL revenue and results since 2018 (Yahoo Finance)

The graph shows that revenue and profit have increased over the past few years because AAPL is a technological beast.

The stock fell after the all-time high in January 2022

Bull markets rarely move in a straight line. AAPL shares lost momentum when they hit a new all-time high on Jan. 4 at $182.94 per share.

Bearish trend in AAPL shares since January 4, 2022

Short-term downtrend for AAPL stocks in 2022 (Barchart)

The chart shows the trend of lower highs and lower lows since early January that took the AAPL to a low of $152 on February 24 when Russia invaded Ukraine.

Like many US and European companies, AAPL has put Russia in the penalty box, halting product sales and restricting access to Russian news apps. While AAPL leads the way with a 17% share of the Russian market, Russia is a small market for the company, accounting for less than 1% of global revenue.

Meanwhile, Russia’s alliance with China poses a far greater threat to the company. At the end of 2021, AAPL CEO Tim Cook struck a $275 billion deal with the Chinese government. If China follows Russia and decides to force a reunification with Taiwan, it would have a much bigger impact on revenues and profits.

AAPL Beta – Underperforming During Downtrends

Beta is a way of measuring a stock’s volatility with the overall variance of stock market prices. The entire stock market has a beta of 1.0. Stocks with a value above 1.0 are more volatile than the market, which means they rise more than the stock market during bulls and fall more when bearish trends emerge. AAPL’s 60-month beta is at Level 1.19which is slightly more volatile than the overall stock market.

AAPL is the best performing company in the United States and globally, but its beta means that a bear market in equities would cause stocks to underperform overall.

As of the end of last week, the most representative stock market index, the S&P 500, fell 11.79% in 2022. Over the same period, AAPL shares fell 12.86%.

APS is short AAPL, for now

As of March 11, 2022, the trend for AAPL shares was down. The APS has been short of AAPL stock for the past few weeks as the trend is always your best friend in any market. APS owns ten highly liquid, option-based stocks and ETF products. The AAPL is a component because it meets the requirements of the strategy.

Following trends via an algorithmic system requires strict adherence to the rules. We do not try to pick highs or lows in any market and we are generally short lows and long highs. Removing the largest percentage from trends requires removing the emotional impulses from trading and investing. We ignore the fundamentals, the news and all the daily noise. Our signals are never intraday; they can only change at the end of a session. Our system is not caught up in the daily frenetic trading activity. News and noise are at a frenetic level with the war in Ukraine.

The price of any asset is always the correct price because it is the level where buyers and sellers meet in a transparent environment, the market. Trend-determining crowd behavior may be the optimal market approach for all asset classes. As of March 11, the wisdom of the crowd indicates a downtrend in the AAPL. When the trend changes, the APS will issue a buy signal for the world’s top company.