🚘Apple, Microsoft and Omicron🎙

🍎Apple: Demand is slowing⛽️

In a piece of unexpected news, the iPhones maker is informing its suppliers that demand for its smartphone is likely to be lower ahead of the holiday season. In addition, it was reported that given the inflation situation and Omicron variant concern, consumers are paring back the purchase of their “want” items.

Despite this expectation, analyst generally believes Apple will have a record year as revenue is expected to jump by 6% in the last quarter compared to a year ago. In addition, some expect the company to ship out a whopping 40 million phones during this season.
Pika World maintains Apple as a value play in an uncertain see-saw volatile market.

💻Microsoft: Here I come📱

The software giant released the latest version of its Teams corporate communication suite, targeted towards SMEs. It allows users to attend a meeting without installing teams and allows integration into Microsoft Outlook.

It is seen as an alternative to Zoom and meets the small business requirements. In addition, Pika World maintains exposure to the company.

⏰Omicron Fears set to Hit stocks💸

The S&P 500 has been hit hard from its all-time high in late November. The news that current vaccines may not be as effective in tackling the new variant tone down the risk-on sentiments. It is worth noting that a correction of 10% has been elusive thus far despite it being part and parcel of a bully cycle.

There is an indicator that the odds of a correction seemed to be brewing. The US equity capitalization is about 215% of the GDP, the highest level ever reported. In 2000, we saw the figure hitting 150% before a bear market appeared and sent a correction of 20%.

However, stock valuation alone isn’t the best tool for investors to be an indicator of buying or selling since elevated valuation can remain high for a considerable time. Heightened volatility and possible market drops could be on the card in the coming week as the variant result impacts investors’ minds.

On the flip side, if vaccines appear to be of decent effectiveness, they might save the bull.

We hope you enjoy this read, and stay tuned for our next update on the move.

Cheers,
Pika Nat