The Rundown - Apple iPhone Event Recap, Google Returns to Court for Antitrust Battle

Episode Date: September 10, 2024

Stock market update for September 10, 2024.

Public.com presents the rundown, your daily market update in five minutes. My name is Zaid Admani, and today is Tuesday, September 10th. In today's episode, we recap yesterday's Apple event and tell you how the markets reacted. We also tell you why Google was headed back to court and a shakeup happening at Southwest Airlines. Then stick around to the end of the show to find out how many iPhones Apple has sold since the original launch back in 2007. And how much their stock price has gone up as well. All right. Let's go.

Well, it looks like investors started the week off by buying the dip. Following the worst week of the year last week, the markets saw a ton of green on Monday. The S&P and NASDAQ were both up more than 1%, which was nice to see because that was the first gain for the S&P 500 in five trading days. So it's great to see the week get off to a good start. But remember, we have the CPI report coming tomorrow morning. If the CPI report shows that inflation continues to cool and is headed in the right direction like it has been over the last few months, then I think, yeah, we could see the markets continue to rally and, you know, it could calm some jitters.

On the flip side, if inflation comes in hotter than expected, well, then the markets could get a little bumping. We'll let you know what happens in tomorrow's episode. We'll recap the CPI report and tell you the market's reactions. So make sure you guys are subscribed to the podcast to stay in the loop. Let's run through some headlines. And we got to start with the Apple event. Every September, we get a new iPhone event from Apple.

And I feel like every time we walk away disappointed. Not just Apple fanboys like me, but also Apple investors. And I feel like that's the same for this year. This year's event was called Glow Time, and the event was long, okay, almost 100 minutes. But to be fair, they did show off a ton of new products and features. Along with the new iPhones, Apple Watch Series 10 and some new AirPods. The Apple Watch Series 10 has a bigger screen and is thinner compared to previous watch generations. And the new AirPods, I think, fit better in your ear.

And it has the new H2 chip. So it's going to sound better. The best part is that AirPods 4 are going to be $129. Seems like a pretty good deal. What stood out to me is that Apple is really doubling down on health. Like the new Apple Watch will have a feature that can detect sleep apnea, which I think is pretty cool. And the AirPods Pro 2 can act as clinically grade hearing aids. That is really awesome and it should help a lot of people.

So don't be surprised to see more health-related tech from Apple moving forward. All that's really cool, but the main product yesterday was the new iPhone. the iPhone 16 and the iPhone 16 Pro. As usual, we're getting an upgraded camera and a faster chip designed for AI. Along with that, now all the new iPhones will have an action button, not just the pro models. But on a side note, does anybody actually use the action button? It was a hype feature last year, but I feel like nobody actually uses it. And all the new iPhones are also getting a dedicated camera button on the side that gives instant

access to the camera and allows you to adjust some camera settings. But it wasn't just the hardware upgrade for the new iPhones. Apple also showed off Apple Intelligence. Apple's AI features that's going to be baked into the iPhone. They've been talking about these features for a couple months now, and they showed them off again at the event. But, you know, they were kind of vague on when some of these features would come out. Like, not all these AI features are going to be available

when the new phone launches in a couple weeks. And they didn't give exact dates on when some of these features are going to come out. I think they're still working on them. So because of that, I'm not going to get too hyped about Apple Intelligence right now until I try it myself. I mean, this is the same company that's kept Siri completely, useless for over a decade. So I think we have to temper our expectations here on how good Apple intelligence will be whenever it launches in the next couple months. I think the biggest good surprise

from the event was that Apple won't be hiking prices. I mentioned on yesterday's show that there was rumors that Apple might raise prices of their new phones by $100 or so because the components for these new phones are more expensive due to the demands for AI. But no, Apple's keeping the prices the same. The base model iPhones will start at $800 like it has in the past and the pro models will start at $1,000. Unfortunately, the base storage is 128 gigabytes, which is extremely frustrating in 2024. But, you know, Apple wants you to subscribe to their iCloud, which I am, so they got me. I was watching Apple's stock price during the event, and the stock dropped around 1.5% during the event, which I feel like happens every year because the event doesn't live up to the hype

that market expects. But then Apple stock did rally in the last hour of the day to finish the day flat. And I think that perfectly describes how I feel about the event. Like, yeah, you know, it was fine. And I'm probably going to upgrade to the iPhone 16 and maybe even the Apple Watch. All the new products come out on September 20th, 10 days before Q3 ends. And I think Apple is hoping for a big initial boost in sales to have some nice results for their Q3 earnings. Let's shift gears and talk about another big tech company. Google is getting ready to go to court again to fight their second antitrust case.

But this time it's to defend their advertising business. Google already lost the cases here saying that their search business is a monopoly. The sentencing for that case is next summer. And now this new case is claiming that Google's ad platform is causing inflated advertising fees, which is causing a negative impact on businesses that use Google's advertising platform. So now Google has to spend more time in court to defend that business. I mean, their lawyer fees must be crazy right now. We'll see if Google ends up taking another L in court this year.

I mean, that would be a pretty tough look if they lost two antitrust cases in a single year. And finally, Southwest Airlines is making some changes. The airline announced that their chairman, Gary Kelly, will be stepping down from its position next year. It looks like all the pressure from activist investors is starting to impact Southwest Airlines. We've talked about this in the past, but activist investing firm Elliott Management bought more than 10% stake in the company, and they've called for a completely new management for Southwest Airlines because Southwest has struggled with profitability and dealing with challenges,

and they've fallen behind their competitors. So they got the chairman that stepped down. We'll see if the CEO or any other executive step up. down. Southwest stock has lost nearly half its value in the past five years. Let's talk about some stocks making moves today. Oracle stock is a big winner this morning. Shares are jumping after the OG tech company beat earnings reporting a 45% boost in cloud infrastructure sales. On top of that, beat Oracle recently announced that they'll be partnering with Amazon Web Services to provide database offerings. Investors were loving in Oracle shares are up more than 8% on this news.

On the flip side, Apple stock is a loser this morning, not because of their iPhone event, but because the EU decided in court that Apple has to pay $1.3 billion in back taxes. This is because the EU is getting mad at Ireland for tax benefits. It gave to Apple for like the past 20 years. So now Apple has to pay over a billion dollars in taxes. The stock is down around 1% on this news. Let's wrap the show with a fun fact. We've talked a lot about Apple on this show, so we have to have an Apple-related fun fact, right?

Well, since the iPhone came out back in 2007, Apple has sold more than 1.5 billion units worldwide. The most they ever sold in a quarter was back in Q4 of 2020 when they sold over 90 million units. And they've made trillions of dollars from the iPhone since its launch. Apple stock price has more than 50x since the first iPhone launched back in 2007, going from like $4 a share to over $200 a share today. Well, all right, guys, that's the rundown for today. Hope you guys enjoyed today's episode. don't forget to hit us with a five-star rating on Apple and Spotify. That engagement really does help us out.

Remember, tomorrow's episode we'll talk about the CPI report, so make sure you guys are subscribed to the podcast. Thank you guys so much for listening. Shout out to Connor and Mike for all the help behind the scenes. And we'll see you guys back here tomorrow. This is the rundown, your real-time resource for news events and trends in the markets. All views presented in the show reflect the opinions of the guests. You should not take any mention of a publicly traded security as recommendation to buy, sell, or hold that security.

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