If you missed our announcement last week, you’re in for a treat today.
Every Friday, we’re ditching the long-winded analysis in exchange for several carefully selected charts to sum up the week’s most important market-moving events.
After all, a picture is supposed to be worth a thousand words, right?
This week, all three charts underscore why it pays to be a contrarian. Take heed!
Apple Resurrects the Dead
For months, we endured an endless drumbeat of death pronouncements for the most iconic consumer electronic device in history — the iPhone.
During this period, I told True Alpha readers to buck the dire warnings and scoop up long-dated options in Apple Inc. (AAPL). And now they’re glad they did, as the reports of the iPhone’s death proved wildly exaggerated.
On Tuesday, the company revealed it sold 78.3 million iPhones in the holiday quarter. That topped analysts’ expectations for 76 million and the company’s record of 74.8 million.
I was fortunate enough to join CNBC’s Closing Bell to provide instant reactions to the results. Or you can follow me on Twitter for ongoing updates.
The main takeaway? It’s all about the iPhone… and iPhone sales growth has been resurrected. Hallelujah!
Of course, the better-than-expected results led 10 analysts to raise their price targets, which in turn reinvigorated bulls, who promptly bid up shares to a new 52-week high.
And now True Alpha readers are sitting on a 43% gain in their options. Proof positive that being a contrarian pays. (Go here for details on becoming a True Alpha member.)
Another One-Hit Wonder Bites the Dust
While Apple’s riding high, another tech company’s hitting fresh lows — Fitbit (FIT).
Why? Because no one really needs a(nother) Fitbit. Or more specifically, holiday sales came up short of expectations, which forced the company to slash guidance and its workforce by 6%.
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