Investors were pretty interested by Apple’s recent announcement that they are currently developing their first electric car, with plans to release by 2020. The information about the car is pretty staggering, if they are able to deliver on promises.
During the conference, Apple stated that the planned car would be able to drive up to 200 miles on a single charge. But what’s more, the car would also be priced around the $40,000 level, making it a surprisingly affordable option for many consumers.
That will also play into the investor mindset, as this definitely provides greater potential for Apple to continue to be a dominating global brand. We all know that currently, Apple is the most profitable company in the world. But if they can also start to get in on that oil money, they’re really going to be able to start dominating every world market.
But what remains to be seen is just how realistic this plan is going to be. Yes, the original phone was cool, but it was also plagued with issues, that really weren’t addressed for a few generations.
Shares of Facebook (FB) saw a massive leap on Thursday, after Cowen Group analysts valued Instagram at $33 billion. Cowen attributed the value to predictions that the photo sharing giant will double in the number of users over the next few years. Also, that the highly engaged user base is a dream market for advertisers.
The Cowen Group also feels that Facebook will be capable of turning a $5.8 billion profit as soon as 2020.
Whether these claims actually hold true remains to be seen, but Facebook’s journey certainly is an instant one. Although sites like MySpace came and went in the blink of an eye, Facebook has become such a staple in many people’s lives that investors believe this could be a long term opportunity.
But then again, there are other giants like Twitter that have floundered in recent years, after experiencing a ridiculous amount of growth.
After a few less than stellar days, the S&P 500 and Dow Jones Industrial Average saw a fantastic resurgence on Friday. The final numbers tells us that S&P 500 was up 0.64%, the Dow added 0.66%, and the Nasdaq gained 1.3%, pretty impressive if you consider how the week had gone up until now.
The experts are crediting the late announcement on Friday that Eurozone leaders and the Greek government agreed to an extension of the country’s bailout plan. A move that a lot were questionable about.
However, it faced stiff resistance from Germany, as the country wanted Greece to agree to previous austerity measures, in a bid to control the country’s out of control spending.