Profit Pregame

Make This Rebound Play While Investors Buy the Rumor

A New Frontier for a Tech Giant

Reports indicate Apple may be developing its own electric vehicle.

What’s happening?

After becoming one of the biggest names in mobile communications with its revolutionary iPhone, Apple Inc. (AAPL) may be setting its sights on a new market.

There’s been a ton of speculation lately that Apple is looking to develop its own electric vehicle to compete with the likes of Tesla, Nissan, Volkswagen, and others in the space.

While Apple has so far declined to comment, reports indicate that its entry into the automotive industry would include the use of a breakthrough battery design that boasts faster charge times and longer life than anything currently available.

And the news has made for some big movements in the market.

Where’s the money?

Given their history of innovation and success, it’s hard to bet against Apple if they are in fact pursuing a move into the electric vehicle industry.

But I think the recent action we’ve been seeing in the market is an overreaction from Apple’s zealous fanbase.

Most estimates peg Apple’s potential “iCar” rollout sometime in 2024 at earliest. That’s a long time to wait for those that are jumping into AAPL stock now on this news.

In the meantime, the best potential trades from these headlines are most likely in Apple’s newfound competitors.

How do I get some?

While Tesla (TSLA) may be a great candidate for a bounce back trade – as its stock price tumbled 6.5% after the news of Apple’s incursion into their space broke and has continued to fall early this week – I’ve got my eye on another electric automaker that could give us an even bigger profit opportunity.

XPeng, Inc. (XPEV is a Chinese electric vehicle manufacturer that markets its SUVs and sedans in China, Europe, and the U.S. XPeng has seen some really impressive growth in both sales and distribution since it sold its first electric vehicle in 2018.

XPEV stock is currently down 8.35% off its high from Friday when reports of the Apple iCar first surfaced.

There is no such thing as a one-day event in the market, so I’m giving XPEV a couple days and if the lows look in then I will get long and look to boost my profits through call options.

I Can’t Wait to See What’s Next

Apple’s success in every industry into which they’ve endeavored makes me all the more excited to see what eventually happens with the iCar.

If the iCar is anything like the iPod or the iPhone, the profit potential could be off the charts.

And when you combine that with my newest Super Options trading method, I think the results could be even better than this past month…

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In the Spotlight: Peloton continues to dominate…

Peloton is expanding once again, and its latest decision sent the share to record prices. Yesterday, the company announced plans to buy exercise equipment manufacturer Precor in a $420 million deal. The deal is predicted to possibly raise Peloton’s annual sales by $480 million to $500 million – giving the home workout equipment company a significant boost.

As far as the terms, the deal is expected to close early next year. Once the papers are signed, Precor will operate as a business unit within Peloton and continue to make its own branded products, the companies said. On top of this, the deal will also allow Peloton to speed up its production process and shorten lead times.

Peloton has had quite the year, with demand surging due to the pandemic and the lockdown measures that swept the country. This demand put a strain on the supply chain – slowing down delivery times and frustrating customers. To help alleviate this issue, Peloton will acquire more than 625,000 square feet of manufacturing space and 100 new employees.

This new deal and acquisition of space and employees will surely help Peloton improve its delivery times and supply chain issues. And this positive outlook has analysts raising their price target on shares from $145 to $180.

So, I’m sure it goes without saying, but I’ll be keeping a close eye on this name, and I’ll be keeping you updated as the deal continues to move forward.

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