The relationship between value creation and technology adoption is becoming increasingly critical as technology innovation cycles are accelerating. For institutional equity investors this is best captured by how “value” stocks have been substantially underperforming “growth” stocks, a phenomenon historically associated with technology innovation booms and how a concentrated number of enterprises have captured the benefits from innovation. When the technology innovation cycle becomes more diffuse and non-tech companies are able to exploit the innovations is a point where “value” can potentially outperform “growth.” As an emerging technology consultancy, BTblock is focused on working with enterprise clients to assess and implement technologies with a view to capturing value ahead of competitors.
Also, Apple is holding the launch event for the latest version of its iPhone tomorrow along with other product suite updates. However, the most important catalyst for Apple, and given its S&P weighting in US large caps as a whole, remains US-China trade negotiations. This is due to Apple no longer being a new hardware story. Services will take time to grow. What’s left is a hope that upcoming trade talks will prove productive rather than further disrupt Apple’s China business and its global supply chain.
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