Press review – A few updates

Recent economic news have provided further substance to some of the topics we covered earlier this year. Selected examples include:

  • Apple revealed earlier this week declining yoy iPhone sales. The decline was however in the higher end of analysts’ expectations and resulted in a share price appreciation. Furthermore the company unveiled a strong increase in R&D spending (now reaching 6% of turnover), highlighting the hunt for the ‘next big thing’ to alleviate the still heavy reliance on iPhone which represents 2/3 of revenues.
  • Twitter’s results, on the other hand, disappointed investors which let the share price drop by 11% after the announcement. User base seems to have reached a plateau and the company has not found a way to profitability yet.
  • ‘Active’ investing is still haemorrhaging money while investors favour low-cost passive strategies.