Five people in San Francisco have filed a class-action lawsuit against Apple Inc. (NASDAQ: AAPL), alleging that all Apple Watches through Series 6 were sold with a defect that could cause injury to the wearer.
According to the complaint, filed Thursday in the federal district court for northern California, the watches were manufactured without leaving enough space inside the case for the lithium-ion battery to expand without detaching, shattering or cracking the face, “exposing its razor-sharp edges and leading to operational failure of the Watch and/or personal injuries resulting from unintended bodily contact with the detached, shattered, or cracked screen.”
Reuters reported that a similar case filed in 2018 in the same court was dismissed because the plaintiff “failed to identify a specific defect.” Another lawsuit, in 2019 in New Jersey, did identify a defect due to swelling batteries, but the plaintiff dropped the case in 2020.
Over the past month, Apple stock has risen by 18%, and the company’s market cap is closing in on $3 trillion (the stock closed down about 0.1% on Thursday at $174.56 after setting a new all-time high of $176.75 early in the day). While no stock can rise forever, Apple’s stock may still have a bit more room to run.
Long-time Apple analyst Dan Ives at Wedbush put a $200 price target on Apple stock a week ago. That’s just over 14% above the stock’s most recent closing price.
Over at Barron’s, Ben Levisohn presents a brief technical analysis showing that when Apple stock trades more than 15% above its 50-day moving average, the share price more often than not will rise 2% in the next week and another 3% over the course of the next month. Levisohn also inserts a note of caution:
That doesn’t mean Apple stock can just keep running in perpetuity. While the 15% threshold didn’t result in losses, a 20% threshold did. When that happened, Apple stock has dropped an average of 3% over the two weeks following the instance, and 2.9% [in the] month after.
Apple stock can get too strong, after all. It’s just not there yet.
Briefly noted:
U.K.-based Paddle.com has been forced to delay the planned December 7 launch of an alternative payment method for app and in-app purchases made through the App Store due to the Ninth Circuit ruling handed down on Thursday.
The Verge has an interesting story about how Apple and Microsoft were negotiating last year to bring Microsoft’s Xbox-exclusive games to the iPhone. The report is based on emails revealed after the Epic Games v. Apple lawsuit was decided.
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