Oil crash frees up consumer cash just as Apple hikes prices — buy the AAPL dip
Oil prices are falling fast now that Middle East tensions are easing, which is great news for consumers and companies that use a lot of energy. At the same time, Apple just raised prices on its computers and tablets, and investors sold the stock hard — but cheaper fuel costs could actually help cushion Apple's profit margins right when they need it most.
Idea
Oil prices are plunging as the Strait of Hormuz stabilizes and Saudi Arabia readies price cuts, which acts like a massive tax cut for manufacturers and shipping companies. Meanwhile, Apple stock just got slammed because it announced price hikes on Macs and iPads to offset rising memory chip costs. But the rapidly falling cost of oil should provide a counter-balance — cheaper energy means lower manufacturing and shipping overhead for Apple's physical supply chain, which could easily cushion the very margin pressure investors are panicking about today. The selloff looks overdone relative to the new oil dividend.
What happened since
| Symbol | Dir | T+1 | T+5 | T+20 |
|---|---|---|---|---|
| AAPL | LONG | +0.00% ✗ | +9.54% ✓ | — |
Price change since publication · updated Jul 11