Le billet of Monocle

Apple : Enemy N°1

25 March 2021

Meeting on Clubhouse (the new social network), Mark Zuckerberg (Facebook - worth $830 billion), Daniel Ek (Spotify, the world's leading music site - worth $51 billion) and Tobi Lutke (Shopify, the e-commerce player - worth $143 billion) announced that they have a common enemy: Apple.

Apple is using its dominant market share to impose a 30% tax on all these players, which is more than what Facebook takes from its business customers or what Spotify takes from its artists.

In 1984, Steve Jobs launched the Mac as an instrument of freedom against the IBM monopoly in a very Orwellian ad (here). 27 years later, Apple has gone to the dark side.

Illustration by the story of Peeble, a smartwatch company: Peeble had launched without any problem on Android. But, when it wanted to move to IPhone, Apple continuously put obstacles in its way... Until the release of the Apple Watch. Peeble closed its doors a year later. This abusive behavior will eventually make the American or European authorities react (and this will not help Apple's development, which is necessary to justify a 33% EP).

Apart from that, Gamestop published its results at the end of January on Tuesday evening. This is its most important quarter of the year, representing in previous years 2/3 of its annual result. This year, the pre-tax result is $10M. Unfortunately, it is not possible with this to justify the valuation of $13 billion at last night's closing price ($182). Given these results, the $20 price I mentioned a few weeks ago seems too generous. I'm going down to $15.

Have a great week,
Charles

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This presentation is a promotional document. The content of this document is communicated by and is the property of Monocle Asset Management. Monocle Asset Management is a portfolio management company approved by the Autorité des Marchés Financiers under number GP-20000040 and registered with the ORIAS as an insurance broker under number 10058146. No information contained in this document should be construed as having any contractual value. This document is produced for information purposes only. The prospects mentioned are subject to change and do not constitute a commitment or a guarantee. Access to the products and services presented here may be subject to restrictions for certain persons or countries. Tax treatment depends on individual circumstances. The fund mentioned in this document (Monocle Fund SICAV) is authorized for marketing in France and possibly in other countries where the law permits. Before making any investment, it is advisable to check whether the investor is legally entitled to subscribe to the fund. The risks, costs and recommended investment period of the funds presented are described in the KIDD (key investor information documents) and the prospectus, available free of charge from Monocle Asset Management and on the website. The KIDD must be given to the subscribers before the subscription. Past performances are not a reliable indicator of future performances. Monocle Asset Management cannot be held responsible for any decision taken or not taken on the basis of information contained in this document, nor for the use that could be made by a third party. The investor may lose all or part of the amount of capital invested, as the funds are not capital guaranteed.

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