Apple delivered on what Wall Street was expecting: a complete artificial intelligence overhaul — leveraging Google’s Gemini in a new conversational Siri and updating the company’s in-house AI efforts. Just before the Siri news was announced at the company’s Worldwide Developers Conference (WWDC) on Monday afternoon, Apple shares were up more than 3%. We know that a single day’s stock move is not the whole story — but by the end of the event, the stock was down more than 1%. Buy the rumor, sell the news? Perhaps. The stock has been ripping higher going into WWDC — and at Monday’s session highs, it set another all-time, intraday high. No matter the reason, we have seen this type of trading pattern before around big Apple events. What matters is what Apple announced, not how a fickle market trades the shares. AAPL 1D mountain Apple 1 day Siri has been rebuilt. With AI at its core, the personal assistant is more capable and conversational than ever. In fact, given what we saw on stage, it now finally strikes us as an actual personal assistant, not the simple, one-answer chatbot we’ve come to know and disregard. This revamped, more personalized Siri also extends to AirPods and CarPlay. Models can run both on device and on private cloud servers, which offer enhanced privacy as the data is either on your device or encrypted on cloud servers to the point that even Apple cannot access it. We would expect nothing less from Apple, whose reputation is as much about innovation as it is user privacy. On-screen awareness allows Siri to better understand your request in context and provide a more personal answer. Users can now ask a question about what they’re looking at on their screen. Systemwide integration means that Siri can do things like search all user content based on a request, or open apps and input information. For example, you can request that Siri find an image without opening the Photos app or ask about a recent text message conversation. Whatever the ask, a new data indexing methodology allows Siri to better track, access, and provide the information. Another example: if you were to ask for directions to a given location, Siri will open the Maps app and instantly route out your trip. Siri will also see third-party app integration, though time will tell how developers look to leverage the new capabilities. There is now a dedicated Siri app as well. In addition to providing query history, the app means that you can now start on one device and pick up your conversation on another one. This is perhaps the most notable upgrade as it will allow for deeper levels of research thanks to the ability to continue past conversations, with all the context needed to avoid starting from scratch. While it’s still early days, and more features are sure to come our way over time, WWDC likely met investor expectations, with Apple providing new AI-enhanced ways for users to navigate their devices. Whereas past keynotes were about demonstrators showing us how to use the operating system and navigate within it, this one was all about showing how you can now ask Siri for the information you need and let the AI do the tedious work of searching files and folders for you. With the foundation for Apple Intelligence now firmly established, we think the company is in a much stronger position to not only drive AI adoption but also financially benefit. To be sure, there was a lot of excitement when Apple Intelligence was unveiled at WWDC 2024, with a lot of open-ended “more to come” type chatter. While there has been incremental progress on AI features over the past two years, there have also been lots of stumbles, mostly notably failing to upgrade Siri in a meaningful way until now. This time, however, Apple has leaned on its old search pal Google, whose Gemini AI has emerged as among the industry’s best. Apple will continue to work on its own AI models — and in fact, unveiled a second version of its Apple Foundation Models. It’s the best of both worlds. Apple doesn’t need to worry about having the best models in the world; it can let Alphabet, which is currently near the front of the AI large language models (LLM) pack, concern itself with that. Rather, the company can focus on its own ecosystem and the user experience, something it does better than anyone. The company can also avoid spending billions of dollars in the LLM arms race. By leveraging its massive installed user base of devices, Apple can continue to push more and more people into its high-margin services business. Given what we saw on Monday, we think the AI experience on Apple devices only gets better from here. We are, therefore, left once again reiterating that Apple stock should be owned long-term, not traded. (Jim Cramer’s Charitable Trust is long AAPL, GOOGL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Apple shares reverse lower after big Siri news. Why were not bothered