Hello everyone, in this week's 【Opportunity Dispatch】, let's take a look at Apple Inc. (AAPL), one of the seven giants of the US stock market.

From June 10 to 14 Pacific Time, Apple Inc. held the 2024 WWDC (Worldwide Developers Conference).

During this period, Apple's stock price broke through the $200 barrier, reaching a historic high.

So what impact does the WWDC have on Apple's stock price? What recent developments are worth tracking? How is the technical trend?

This article will help answer these questions.

What impact have past WWDC events had on Apple's stock price?

At WWDC, Apple showcases the latest software and technology to developers.

Investors may be curious about what impact the WWDC will have on Apple's stock price. In fact, we can look for clues from Apple's stock price performance during past WWDCs.

Barron's has compiled statistics on the performance of Apple Stocks during the WWDC conference since 2013 for 10 times.

Apple's stock price rose five times and fell five times during WWDC, with an average decline of 0.3%. In the week following the conference, Apple's stock price averaged a decline of 1.06%.

However, if the stock price trend is analyzed one month after the WWDC conference and thereafter, the situation is different.

One month after the WWDC conference, Apple's stock price increased by an average of 3%, and within three months of the conference starting, it rose by 12.3%. The average increase in the three months after the conference was even higher, with Barron's explaining that Apple usually releases the iPhone in September.

How did Apple's recent Earnings Reports perform?

For the second quarter of fiscal year 2024 (calendar year Q1 2024), Apple's total revenue was $90.753 billion, a year-on-year decline of 4.3%, and the net profit was $23.636 billion, a year-on-year decline of 2.2%.

Although the business performance is ordinary, Apple has done well in returning value to Shareholders, announcing a $110 billion Stock buyback plan, the largest buyback amount in the company's history.

At this stage, Apple resembles a value stock, as the company's performance shows almost no growth.

Recently, there are two things worth investors' attention:

1. Buffett's Shareholding Reduction

However, it is noteworthy that in Q1, the stock wizard Buffett reduced his holdings of Apple shares by 12.83%. Although it remains the largest holding, the proportion has decreased from 50% to about 40%.

Buffett explained at the shareholders' meeting that reducing his Apple shares was to avoid taxes. Whether it is truly for tax avoidance or a negative outlook, perhaps only the stock wizard knows.

2. Abandoning the Electric Vehicle Project, Investing in AI Projects

Apple will cancel the electric vehicle project and shift its focus to AI projects.

In the wave of AI, Apple does not have any revolutionary products to showcase, and the company lacks growth points. Therefore, the market expects AI to bring new growth to Apple's Business.

The latest development is that Apple will collaborate with OpenAI to integrate ChatGPT into the iPhone.

Technical Analysis

Since 2024, Apple's stock price has been relatively volatile. At the beginning of the year, due to concerns over weak iPhone sales, Apple experienced a pullback in its stock price. However, after the Q2 Earnings Reports for fiscal year 2024, fueled by a $100 billion share buyback, the stock price returned to an upward trajectory.

Trend analysis:

MA250 is generally referred to as the bull-bear boundary line, and investors can use MA250 to observe potential long-term trends. From the daily K-chart, Apple's stock price briefly fell below MA250 at the beginning of the year, indicating signs of turning bearish, but after the Earnings Reports, it regained an upward trend and held above MA250.

Channel Analysis:

Using the line drawing feature of Futubull's 【Parallel Lines】 function to connect Apple's recent high and low prices, it can be seen that previously, Apple's stock price was oscillating within a horizontal channel area, ranging from $165 to $200. Apple's previous two attempts to break through the upper boundary of the channel were unsuccessful, indicating that $200 is a key resistance level.

During the WWDC conference, Apple's stock price finally broke through the $200 barrier, accompanied by a significant increase in Volume. Generally speaking, when the stock price breaks through a channel, it is possible for the market to further develop in the direction of the breakthrough.

Focus direction:

In the short term, the market may issue false breakout signals. One potential method to confirm whether it is a false breakout is to wait for the market to retrace and see if it can stabilize at the upper edge of the channel.

In the long term, investors should still pay attention to the progress of Apple's AI products, as this will determine whether Apple has new growth points in the future.

Risk Disclosure: This content does not constitute a research report, is for reference only, and should not be used as the basis for any investment decision. The information contained herein is not a comprehensive description of the securities, markets, or developments mentioned. Although the sources of information are considered reliable, the accuracy or completeness of the above content is not guaranteed. Furthermore, there is no guarantee regarding the accuracy of any statements, viewpoints, or forecasts provided in this article.

This content discusses technical analysis; other methods, including Fundamental Analysis, may provide different perspectives. The examples provided are for illustrative purposes only and do not reflect expected results.