Sep 11, 2019
Apple Event Boosts The Tech Giant’s Stock Price
The much anticipated Apple event yesterday in California was a big success and as a result, the company’s stock price rose by 1.18% to close at $216.70. This mark’s Apple’s highest stock level since the end of July 2019.
The success of the event can be contributed to the fact that the tech giant used this opportunity to release a wide range of different products and services at lower prices. One of the attractive offers that Apple presented was that if a consumer purchases a new Apple device, such as the new iPhone, they will receive a one-year free subscription to Apple TV+. Without a purchase though, the Apple TV streaming service will be available at an affordable cost of only $4.99 a month.
As a result of the Apple event, Netflix saw a decline in its stock price and it traded 2.16% lower. Disney also saw a decline and its stock traded 2.19% lower. It is evident that Apple’s new service streaming service will be in direct competition to Disney+ streaming. Global traders and investors took advantage of the negative correlation trade between Netflix, Disney and Apple and traded accordingly.
In November this year, Apple and Disney will both launch their new streaming services; Apple will do this on the 1st of November, while Disney will launch on the 12th of the month. In the growing ‘streaming war,’ Apple clearly has two main advantages: (1) The company has over 900 million active iPhone users and even a small percentage of these users, will be sufficient to beat any competitor. (2) Currently, the Apple TV streaming service is cheaper than those offered by Netflix and Disney.