Consumer electronics giant Apple will kick off its annual Worldwide Developers Conference on Monday with a host of software announcements during a keynote presentation. News from the Apple WWDC keynote could be the next catalyst for Apple stock.
Apple will showcase the latest innovations in its device operating systems: iOS, iPadOS, macOS, watchOS and tvOS.
The Cupertino, Calif.-based company might use the event to introduce its recently trademarked RealityOS operating system for future headset computers for augmented reality and virtual reality.
Apple typically doesn't announce hardware products at WWDC but it's possible it could show off the prototype headset it reportedly demonstrated to the company's board of directors recently.
Apple Headset Speculation
But respected Apple stock analyst Ming-Chi Kuo with TF International Securities doesn't think Apple will show the mixed-reality headset at WWDC. Since Apple is not likely to launch the product until 2023, it won't want to tip its hand to competitors, Kuo said on Twitter.
Wedbush Securities analyst Daniel Ives said Apple will lay the foundation at WWDC for the eventual release of smart glasses.
"AR/VR technology will be a key broadening out of the Apple ecosystem as the company aggressively goes after the metaverse opportunity with Apple Glass," Ives said in a note to clients. He rates Apple stock as outperform with a 12-month price target of 200.
Apple Stock Drops
On the stock market today, Apple stock fell 3.9% to close at 145.38.
The enhancements to Apple's operating systems will provide clues to the capabilities of upcoming products. Those products include the iPhone 14 and Apple Watch Series 8, both due out this fall.
Apple is holding its Worldwide Developers Conference as an online event for the third straight year. It went virtual in 2020 with the start of the Covid-19 pandemic. This year's Apple WWDC runs five days starting Monday.
Apple also could use the WWDC event to announce the completion of its two-year transition to Apple-designed chips from Intel chips for its Mac computers.
NFL Programming For Apple TV?
Plus, Apple could announce more sports programming for its Apple TV business.
Media reports speculate that Apple could reveal a deal to carry NFL football games. That could include the NFL Sunday Ticket package for out-of-market games. It also may include the upcoming NFL Plus streaming service for mobile devices.
At its March 8 product launch event, Apple announced a deal with Major League Baseball to offer two games on Friday nights during the regular season on its Apple TV+ service. The weekly doubleheader includes live pregame and postgame shows.
Apple stock has an IBD Composite Rating of 78 out of 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
