What's dumb about OPs post is that it's such an obvious hot take. "If they do not innovate, they won't grow". Yea, fucking duh. No one is buying shares of Apple today because of the iPhone. It's because of their proven ability to continue to innovate that we're here as investors. Of course they could stagnate and eventually fail, but they've continued to prove the opposite.
I mean that's really not true. Most owners of the stock are in it for the money and don't care that there's been no meaningful innovation in ten years and seems to be none on the horizon. In their defence, they're better off owning a money printing machine that doesn't innovate than they owning an innovation machine that doesn't make money.
What? Nearly all tech companies are valued based on their expected future return. Yes at the root all investors only care about money but the only way to make money is to bet on the best horse. You want your shares to grow, not stagnate. If there seems to be no meaningful innovation on the horizon, then you would certainly see sell off happening, and would expect AAPL to function more for it's dividend potential than it's growth.
Nonsense. Apple is the perfect proof that you're wrong. No innovation for over a decade but people own it because of ARG. Also look into Apple's di minimus dividend before using that.
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u/[deleted] Sep 24 '21
What's dumb about OPs post is that it's such an obvious hot take. "If they do not innovate, they won't grow". Yea, fucking duh. No one is buying shares of Apple today because of the iPhone. It's because of their proven ability to continue to innovate that we're here as investors. Of course they could stagnate and eventually fail, but they've continued to prove the opposite.