recession? It resembles Apple inc. (NASDAQ: AAPL) did not get the message.
While many other companies like that Meta Platforms Inc. (NASDAQ: META) are down as much as 70%, Apple has barely entered bear market territory from its all-time highs.
Do not miss it: Never lose your stuff again – the startup pouring gas on the Apple AirTag
On the other hand, even powerhouses like Google are older Alphabet Inc. (NASDAQ: GOOGL), and Amazon.com Inc. (NASDAQ: AMZN) have since fallen significantly and are on a declining trend. For example, Google is down about 37% and Amazon is down even further to a whopping 50%. Combined, Apple is now worth more than some of the largest companies in the world. This includes being worth more than Google, Amazon, Tesla Inc. (NASDAQ: TSLA), and Walmart Inc. (NYSE: WMT) combined.
So, what does Apple do differently? Apple doesn’t post huge profits, but it meets expectations or only makes minor mistakes. Google’s profits plummeted 27% in the third quarter and Amazon had a weak outlook and a year-over-year drop in net profit.
But perhaps even more important is the massive share buyback program. Apple bought back nearly $90 billion of its own stock in fiscal 2022. Apple has spent more than $550 billion on share buybacks since the program began in fiscal 2013. This compares to Amazon’s $0 spent on buybacks and only about $15 billion for Google.
But maybe the tides are shifting. Google recently announced a nearly $70 billion share buyback program for 2023 after seeing the success of Apple’s program. Meanwhile, some estimate that Apple’s buybacks will slow as dividends continue to rise, stock buybacks become increasingly expensive and earnings may fall as a result of the recession.
This could mean Apple’s winning streak is slowing, while Google could be a valuable play. But this theory doesn’t explain the drop in profitability and net income for those stocks.
The game may not be fully public stock, as increased volatility and mediocre returns may well be the stock market for the foreseeable future. One option is to diversify into startups. For example, MaxTracker is a startup that is currently fundraising and looking to bolster the Apple AirTag. Instead of Apple’s inconsistent Bluetooth approach, MaxTracker adds GPS capabilities, alarms, and longer battery life to the mix.
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Now is the time to evaluate the market and look for value as investors weigh the potential for a recovery against anticipation of further declines in the near term.
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