In the worst month for big technology since the global financial crisis, a huge redemption may not be enough for Apple Inc. investors. The product’s response to Alphabet Inc.’s acquisition of assets. indicates that it will also need big rewards. Apple, which is seen as a safe haven within the FAANG group, is looking forward to announcing its $ 90 billion purchase plan when it releases its quarterly results after closing on Thursday.
But that alone may not be enough to buy the product. Shares in Google parent company fell in premarket trading on Wednesday, even after the company announced a $ 70 billion redemption of Class A and Class C. Investors focused instead of quarterly earnings for share loss slow in Europe and weak performance for YouTube.
For Apple, return purchases have become a central part of the investment case, and are particularly important during turbulent times for technology stocks. Investors love redemption plans as they reduce a company’s shareholding and therefore provide promotion to assets.
“Apple’s free payment and redemptions have certainly supported the company to a greater potential than its peers,” said Bob Shea, an investment firm at Trim Tabs Asset Management. “Everything is coming under pressure right now, and investors are looking for names with high quality and sustainable free gaming. Apple is at the top of that list. ”
But with hopes for a bigger redemption purchase that may already have been selected in, Bernstein analyst Toni Sacconaghi says investors could focus more on the iPhone maker’s view. Apple is facing a number of emerging trends, including locks in China affecting its suppliers, the withdrawal of the company from Russia, appreciation of the dollar and squeezing on customers in Europe, he said.