Apple’s secret sauce

Stop me if you've heard this one before: Apple took an incremental change that most of its competitors had already introduced and then made a very big show about revealing it as a huge launch that will fundamentally change its business, the industry, and doggone it, the American way of life as a whole.

(Julia Demaree Nikhinson/Getty Images) Presented by Hey Snackers, Who is Michael Elias, and why was he the most-viewed person on the Bloomberg terminal yesterday morning, ahead of JRR Tolkien? Well, he's an analyst from TD Cowen who wrote that Microsoft might already have too many data centers, which caused aftershocks across Wall Street and all the way over in Europe.  Stocks dropped again as tech tumbled, with the S&P 500 falling 0.5%, closing below its 50-day moving average to mark the benchmark gauge's first three-session losing streak of the year. The Nasdaq 100 gave back 1.2% while the Russell 2000 declined 0.8%. Tech was far and away the worst-performing S&P 500 sector ETF, off 1.4% on the day; healthcare, a more defensively oriented part of the market, did the best. APPLE'S SECRET SAUCE Apple's half-trillion-dollar strategy Stop me if you've heard this one before: Apple took an incremental change that most of its competitors had already introduced and then made a very big show about revealing it as a huge launch that will fundamentally change its business, the industry, and doggone it, the American way of life as a whole.  Sure, this kind of shuffle is a core strategy of Apple's going back to the days of Steve and Woz, where a feature — however iterative its underlying tech might actually be — is seamlessly spun as the next big thing. Maybe it's the camera in a smartphone getting a little nicer, maybe it's the skills of a voice assistant getting a smidge better, or maybe it's the computing power hewing to Moore's Law but still getting pitched to the public as a moon shot in computing. Apple's got its schtick, and it works.  What's interesting is when it's able to ply that trade in a different part of its business — say, government relations. Look no further than yesterday's blockbuster announcement of a half-trillion-dollar capital investment in the United States of America, with plans to build server factories in the US and hire 20,000 workers in the years to come. This is exactly the kind of thing that a Trump administration poised to crack down on China wants to hear, and $500 billion is real money. But then, let's run the numbers here. If you look at existing capex plans, estimates of future operating expenses, and all the built-in expected spend and then run it out to four years, well, it sure looks like it adds up to about $500 billion, give or take. THE TAKEAWAY This strategy has also worked for Cook before. During Trump's first administration, Apple committed $350 billion to the US economy and was largely exempted from Trump's tariffs on China. Apple did the same during the Biden administration. Importantly, the latest commitment is its biggest ever. The move seems to be working again. On Monday, Trump took credit for Apple's move on Truth Social, saying, "Thank you Tim Cook and Apple!!!" Read more Presented by MyRadar  🔥The Future of Weather Intel, Trusted by 15M Users With 15M+ users, MyRadar will be taking AI to space with a planned 100+ satellite constellation… and major government and enterprise contracts already secured. What sets MyRadar apart? 🛰️ Next-Gen Satellite Network in Development– real-time wildfire detection & global hazard tracking. 🌪️Patented AI Forecasting – improved predictions of fire & smoke spread before disaster strikes. 🌎 Real-World Impact – positioned in a $317B+ expanding SaaS market (expected to hit $1.2T by 2032). 🏛️Government & Enterprise Backing – U.S. Air Force & Naval Research contracts, plus a major insurance carrier partnership. 📢 Innovation Recognized — MyRadar recently joined Android's Early Access Program, meaning it can be used in cars with built-in Google technology. Now, there's an opportunity to become a MyRadar shareholder and be part of its mission to revolutionize climate intelligence. The future of weather tech starts here — invest now.1 Presented by MyRadar  🔥The Future of Weather Intel, Trusted by 15M Users With 15M+ users, MyRadar will be taking AI to space with a planned 100+ satellite constellation… and major government and enterprise contracts already secured. What sets MyRadar apart? 🛰️ Next-Gen Satellite Network in Development– real-time wildfire detection & global hazard tracking. 🌪️Patented AI Forecasting – improved predictions of fire & smoke spread before disaster strikes. 🌎 Real-World Impact – positioned in a $317B+ expanding SaaS market (expected to hit $1.2T by 2032). 🏛️Government & Enterprise Backing – U.S. Air Force & Naval Research contracts, plus a major insurance carrier partnership. 📢 Innovation Recognized — MyRadar recently joined Android's Early Access Program, meaning it can be used in cars with built-in Google technology. Now, there's an opportunity to become a MyRadar shareholder and be part of its mission to revolutionize climate intelligence. The future of weather tech starts here — invest now.1 ALL GAS NO BRAKES We got a mighty crypto convoy Earlier this month, current head of the SEC's Crypto Task Force, Hester Peirce, wrote about the "crypto road trip" the agency has embarked on. She followed it on February 21 with a post likening the past regulatory environment to an escape room, writing that it was now "time to help open the door." That same day, Coinbase reported that the SEC was dropping its case against the crypto exchange, unlocking the company from a long-standing battle. The crypto road trip picked up speed yesterday as Robinhood* announced the SEC had dropped its investigation into Robinhood Crypto and does not intend to "move forward with an enforcement action."  The crypto convoy is growing: even long-standing crypto skeptic Ken Griffin has made a U-turn, going from steering clear of crypto altogether to planning a new route to add crypto market-making to Citadel Securities' behemoth operations, Bloomberg reports. Altcoin and meme coin ETF listings are growing at mind-blowing speed, with dozens filed for coins from solana to $TRUMP. Here's where they all stand.  THE TAKEAWAY While the regulatory environment for crypto is definitely becoming more friendly, there's still a long road to the ultimate destination that exchanges, financial institutions, and customers want to reach: a clear legal framework for crypto to operate and thrive safely under. In a post on X, Coinbase CEO Brian Armstrong noted the need for getting "crypto legislation passed in the US to finally clarify the rules, and really kick off this next phase of building."  The news comes amid major crypto exchange Bybit getting hit with a $1.4 billion hack on Friday, the largest theft in crypto history, spooking customers who also need regulatory certainty so they can invest in the digital asset space safely — just like we want to be able to drive where we want, when we want, but can still appreciate that there's a good reason for licenses, speed limits, and traffic lights.  Read more *Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company.  THE BEST THING WE READ TODAY YouTube wants to look a little more like Netflix... Netflix feels the same YouTube has made billions from ads, but it's exploring ways for users to pay to see fewer of them. Meanwhile, Netflix wants a piece of its ad game. Read more Sponsored by FinanceBuzz Should You Cancel Your Car Insurance? You could be wasting hundreds every year on overpriced insurance. Check out this new tool from FinanceBuzz to see if you're overpaying in just a few clicks! Some drivers are reporting saving up to hundreds per year! Answer a few easy questions to see how much you could be saving. Sponsored by FinanceBuzz Should You Cancel Your Car Insurance? You could be wasting hundreds every year on overpriced insurance. Check out this new tool from FinanceBuzz to see if you're overpaying in just a few clicks! Some drivers are reporting saving up to hundreds per year! Answer a few easy questions to see how much you could be saving. MOVES Yesterday's Big Daily Movers Super Micro tumbled as today's file-or-be-delisted deadline looms. Worries that the dog ate the company's homework sent the stock tumbling 8%. The announcement of Apple's $500 billion AI investment plan may have made Alibaba's paltry $53 billion AI plan look poor to investors, as the stock dove over 10%.  Canada Goose flew to a two-month high, rising close to 12% on no news of note or even a flurry of fashion influencer posts.  What else we're Snackin' The world's fourth-richest man is finding out that farming is hard, even with AI to help If you thought promoted search results were bad, get ready for the age of ad-supported AI Stellar view: here's how to watch a rare "planet parade" of all our solar system's planets on February 28 We'll be keeping a close eye today on Apple's shareholder meeting Snack Fact of the Day As of the end of 2024, there were 1,807 cinema locations with IMAX systems around the world. Tuesday February Consumer Confidence  Earnings expected from AMC, Keurig Dr Pepper, Planet Fitness, Home Depot, Cava, Instacart, Lemonade, and Intuit Advertiser's disclosures: 1 This is a paid advertisement for ACME AtronOmatic, Inc.'s Regulation A+ Offering. You should read the Offering Circular and Risks related to this offering before investing. This Reg A+ offering is made available through StartEngine Primary, LLC, member FINRA/SIPC.  In addition, as described in the Offering Circular, the Company retains the right to continue the offering beyond the Termination Date, in its sole discretion. This was a paid for ad. Sherwood Media has been compensated for this ad by the AcmeAtronomatic Reg A+ Campaign hosted on StartEngine. Investing in private company securities is not suitable for all investors because it is highly speculative and involves a high degree of risk. It should only be considered a long-term investment. You must be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid, and there is no guarantee that a market will develop for such securities.   Was this email forwarded to you? Don't miss out on future stories — subscribe to Snacks and get your daily dose of financial news straight to your inbox.  Craving more insights in your inbox? Subscribe to Chartr and The Wrap for quality reads. Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... See more Sherwood Terms and Conditions Our Editorial Standards Contact Us Advertise With Us Unsubscribe Privacy Policy