Yahoo Finanza Apple Accused of Anti-Competitive Behavior
Dow component Apple Inc. (AAPL) was named as an “anti-competitive threat” by the House Sub-Committee on Antitrust on Tuesday, with the Democratically-controlled venue taking the first step toward a big tech break-up. Wall Street analysts and tech aficionados shook off the news, skeptical that Congress will follow through on legislation. However, this is no longer a partisan issue, with both sides noting similarities to the railroad and Ma Bell monopolies.
Biden Administration Could Break Up Big Tech
Democrats could take more forceful action next year than Republicans, who have been primarily focused on alleged anti-conservative bias by Facebook Inc. (FB) and Twitter Inc. (TWTR). The Left’s broader argument is more persuasive, with Apple now boasting a market cap of over $2 trillion. As the House report notes, corporate bullying and crushing competition in the name of innovation have become routine practices at these institutions, all in the quest for higher profits.
Needham analyst Laura Martin chimed-in on the controversy on Wednesday, defending Apple by noting the House committee did not recognize the company’s “value to consumers or life-improving innovations”. She ends on a cynical note, insisting that “because AAPL’s core asset is access to nearly 1 billion of the wealthiest consumers, we do not expect this report to materially impact valuation”, implying that rich folks will use their vast influence to stop Congress.
Wall Street And Technical Outlook
Wall Street’s long-term outlook on Apple has grown more cautious since the second quarter, with a ‘Moderate Buy’ rating based upon 24 ‘Buy’ and 8 ‘Hold’ recommendations. Three analysts now recommend that shareholders sell their positions and move to the sidelines. Price targets currently range from a low of $67 to a street-high $150 while the stock is now trading about $7 below the median $122 target.
The stock posted an all-time high at 137.98 in early September, two sessions after the company issued a 4-for-1 stock split. It then fell to the 50-day moving average and has now been testing that support level for the last 6 weeks. Accumulation readings have flatlined during this period while monthly relative strength indicators have crossed into sell cycles. In turn, this predicts more sideways action or continued downside that fills the July gap between 96 and 100.
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This article was originally posted on FX Empire
