• Chris Simpson

Apple’s New Harvest - Market Update Oct 16, 2020

Apple had their widely anticipated new product unveiling event on Wednesday and announced several new products. In case you’ve lost count, we’re up to the iPhone 12. The four main products from the release were:

1. iPhone 12 Pro Max - $1099

2. iPhone 12 Pro - $999

3. iPhone 12 - $799

4. iPhone 12 mini - 699

The biggest new additions to the iPhone are related to the screen size (biggest ever), 5G compatibility, and better drop performance. This new 5G service has been much anticipated and Apple’s hoping it boosts sales of iPhone (which have been steadily declining).

Let’s take a look at some of the biggest business updates from this week.

An unexpected IPO: The Boston Red Sox

Sports teams are generally very closeted with their financial information, which gives them better leverage when it comes time to negotiate contracts with players. However, this week the Fenway Sports Group, who owns the Boston Red Sox and Liverpool F.C., announced that they’re selling a minority stake in the Sox to Redball Acquisition.

This minority stake would then become public on the New York Stock Exchange. If this deal goes through, it could lead to other sports teams going public and creating more transparency around how much huge sports teams are actually earning.

AMC could run out of cash by 2020

It’s no secret that certain industries have been struggling to stay afloat during the pandemic. Stay at home orders have absolutely crushed airlines, cruise ships, and movie theaters. Now, AMC (the world’s largest movie theater chain) is saying that they could be out of cash by the end of the year.

Even though theaters have been opened at limited capacity, AMC is still not generating the revenue it needs. Overall, attendance is down 85% from this time last year. In order to not go under AMC either needs to:

1. Find new ways to get people to visit movie theaters.

2. Find a new way to borrow money.

Twilio announces a $3.2 billion acquisition

Twilio has been quietly growing behind the scenes for quite some time. Even if you’ve never heard of them, you’ve almost definitely used their service before. Twilio helps other companies communicate with their users (via text, email, or calls) but hides personal contact info. For example:

1. When you get a text that your Uber is 5 minutes away.

2. When you get emails about your DoorDash delivery.

3. When a Lyft driver calls you to tell you you left something in their car.

Now, Twilio stock is soaring off the news that they’re acquiring Segment, a customer data infrastructure company. This deal is expected to go through for $3.2 billion dollars.

A few other updates:

➢ JPMorgan Chase surprises with a 4% profit increase.

➢ JPMorgan Chase also pledges $30 billion to fight the racial wealth gap.

➢ Disney reorganizes to prioritize their streaming service.

➢ Dollar General’s newest store update is aimed at wealthier shoppers.

➢ 109-year-old IBM to split into 2 companies to focus on cloud growth.

That’s it for this week -- Join us next week for another market update.

Securities and investment advisory services offered through NEXT Financial Group Inc. Member FINRA/SIPC. Sierra Ridge Wealth Management is not an affiliate of NEXT Financial Group Inc.

This material is not intended as an offer or solicitation for the purchase or sale of a security or any other financial instrument. Past performance does not guarantee future performance.

All the views expressed are those of Chris Simpson and not those of Sierra Ridge Wealth Management or NEXT Financial Group Inc.

The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks.

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