Apple's Cloud Move Doesn't Impress Investors
Tuesday, June 07, 2021 12:00 PM

Apple pointed the way to the clouds and investors yawned. Many of Apple's competitors and peers did nothing and investors applauded.

The tech giant unveiled iCloud, its cloud-computing service, yesterday with a speech by CEO Steve Jobs, an appearance preceded by days of hype about how iCloud was going to change the entire cloud computing game and put Apple well ahead of rivals such as Google and Amazon.

Although most technology analysts were impressed by the iCloud announcement at the opening of the Worldwide Developers Conference and by the concurrent announcement of a new operating system, it seems investors weren't swayed by all the talk of this being one of Apple's most-important strategic moves in the past decade. Investors, it seems, wanted something tangible to get excited about, something like a new iPhone.

In mid-day trading today, Apple (Nasdaq: AAPL) was trading down $3.98, or 1.18 percent, to $333.30. Now, it's not as if Apple is in free-fall or its lost favor on Wall Street. The vast majority of analysts who follow the stock rate it a Buy and have a price target of $450 per share.

But it was apparent as soon as Jobs left the stage that many investors weren't really all that excited about a cloud that was presented as a better way to manage music files across multiple Apple device platforms. Message board comments indicated that investors were hoping for something a big more groundbreaking than just a better way to access music files.

Although it's relatively easy to speculate on why Apple slumped, it's harder to understand the boost other tech, or tech-oriented, stocks received. It's not as if any groundbreaking announcements were made by the likes of Google, Yahoo, Microsoft or Amazon, which seems to occupy a middle-ground between retail and tech stock.

Nonetheless, those company's are all up today. Google Inc. (Nasdaq:GOOG) and Inc. (Nasdaq: AMZN) both have cloud computing initiatives of their own, initiatives that the tech-elite said would be blown away by Apple's iCloud. Investors, however, either didn't get the message or didn't care. Google was up $1.68, or 0.32 percent, to $521.45, and Amazon was up $4.08, or 2.19 percent, to $189.77. Yahoo Inc. (Nasdaq:YHOO) was up $0.06, or 0.39 percent, to $15.51. Microsoft Corp. (Nasdaq: MSFT), long the object of derision from the Apple faithful, was up $0.02, or 0.08 percent, to $24.03.