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Technology Stocks : Investing in Exponential Growth

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From: Paul H. Christiansen12/8/2018 10:19:09 AM
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The Promising Business That Could Pull Apple Out of its Tailspin

Shares of Apple are down 27% since hitting an all-time high in October.

Most of the pain has come since Nov. 1, when Apple said it would no longer be reporting unit sales for its iPhone, iPad, and Mac devices.

The announcement rattled investors, who have long focused on iPhone sales, often to the exclusion of everything else. A wave of Wall Street downgrades has hit Apple stock in recent weeks.

“Apple’s iconic hardware unit growth is broadly over for now,” HSBC analyst Erwan Rambourg wrote last week in downgrading Apple shares to Hold from Buy.

Apple fed the narrative by pulling back on its unit sales disclosures. “The company is, for some reason, trying to shift the investor mind-set to revenues,” says Barry Gill, head of active equities at UBS .

One likely reason: Apple customers are holding on to their iPhones longer than ever.

Investors, with Apple’s help, need to find a better way to value the installed base. Enter subscriptions.

Read More $ Barron’s

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