Warren Buffett skeptical of Apple Inc. (NASDAQ:AAPL) recent push into streaming video content

Warren Buffett skeptical of Apple Inc. (NASDAQ:AAPL)  recent push into streaming video content

Warren Buffett skeptical of Apple Inc. (NASDAQ:AAPL) recent push into streaming video content

Berkshire Hathaway Chairman Warren Buffett sounded skeptical of Apple’s recent push into the streaming TV business during a talk Thursday at The Gatehouse’s Hands Up for Success luncheon.

“I’d love to see them succeed, but that’s a company that can afford a mistake or two,” Buffett said when asked about Apple’s recent entertainment announcement. “You don’t want to buy stock in the company that has to do everything right.”

He continued, “Apple should do some things that don’t work.”

Apple is Berkshire’s largest investment, though it reduced its stake in the company late last year. Buffett said Berkshire owns 5.5 percent of Apple.

Buffett’s skepticism around Apple’s TV business is because the number of hours that viewers spend on content is limited by the number of hours of the day, he said. Plus, there are several large tech and media companies already investing heavily in the space.

“You’ve got some very big players who are going to fight over those eyeballs,” Buffett said.

“You have very smart people with lots of resources trying to figure out how to grab another half-hour of your time,” Buffett continued. “I would not want to play in that game myself.”

On Monday, Apple announced new streaming services including a platform for users to subscribe to “channels” like HBO or Showtime, as well as its own service called Apple TV+ featuring Apple-produced content.

Apple’s services, which do not launch until later his year, enter a crowded field including competing products from Netflix, Hulu, Amazon and Disney.

“Ten years from now, when we look at entertainment delivery, it will be what people want. It will be in the form they want,” Buffett said. “It’s going to be a very, very big, hotly contested game, and the one thing I can guarantee is that the public will be the winner.”

Last year, Apple became the first public U.S. company to reach $1 trillion in market value. Buffett has previously said that his interest in Apple shares is not because of the company’s short-term finances, but because he believes it has a strong brand and ecosystem.

On Monday, Apple also announced an Apple-branded credit card in conjunction with Goldman Sachs and Mastercard.

“Everybody in the world wants to control payments,” Buffett said, noting that Berkshire owns about 18 percent of American Express.

Buffett also showed off his cellphone in the interview. It was not an iPhone. Instead, it was an older flip phone.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 179.55.

The projected upper bound is: 197.25.

The projected lower bound is: 181.62.

The projected closing price is: 189.43.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 26.0361. This is not an overbought or oversold reading. The last signal was a sell 4 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 63.43. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 3 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 39. This is not a topping or bottoming area. The last signal was a sell 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 0 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 0.250 at 188.720. Volume was 43% below average (neutral) and Bollinger Bands were 8% narrower than normal.

Open High Low Close Volume___
188.950 189.559 187.530 188.720 20,780,364

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 188.77 173.00 190.57
Volatility: 30 29 39
Volume: 36,566,084 29,524,856 33,601,412

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

APPLE INC is currently 1.0% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 43 periods.

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