Breakfast News: Apple Eyes The Future
October 2, 2025
| Wednesday's Markets |
|---|
| S&P 500 6,711 (+0.34%) |
| Nasdaq 22,755 (+0.42%) |
| Dow 46,441(+0.09%) |
| Bitcoin $117,423 (+2.70%) |
1. Apple Shifts Focus to AI Smart Glasses
Bloomberg reports Apple (AAPL +1.25%) has stopped development on the Vision Pro headset to redirect resources to producing smart glasses, in a move aimed to take market share away from Meta's (META +0.64%) popular Ray-Ban AI glasses.
- Two codenamed variations due for release in 2027: According to staff with knowledge of the matter, one design will pair with an iPhone and lack its own display, while the other will have a display, with an initial unveiling potentially next year.
- "Buy it or build it? That's the question Apple is facing regarding its AI strategy": Fool analyst Jason Moser recently spoke of "the ongoing issues with Apple's internal AI efforts" and whether it'll focus on building out the broader AI offering or making acquisitions. In yesterday's Breakfast News, we asked members to rank-order the Mag7 for best 5-10 year results – and Apple frequently languished toward the bottom of Fools' lists. Could the AI smart glasses be a game-changer?
2. AI Energy Push Fuels Fermi IPO Pop
Fermi (FRMI +18.65%) closed almost 55% higher on its first full day of trading, with the data center REIT going from a concept just ten months ago to listing publicly, as investors cash in on the rush for electricity to power AI.
- "It's not a unicorn. It's a multi-unicorn": CEO Toby Neugebauer talked through the aim to build the largest data center campus in the world, hooking up everything from natural gas plants to nuclear reactors.
- Campus could generate twice as much electricity as the plants serving New York by 2038: The funds raised from the IPO will go toward buying equipment for infrastructure to fuel the ambitious company goals, although some concern exists as the main assets of the REIT have not yet been built.
3. Job Losses Grow As Shutdown Hits Data Releases
Private sector employment lost 32,000 jobs in September according to the ADP report, adding more weight for investors' decision making given the government shutdown means the September jobs report won't be released tomorrow.
- August data revised lower, but wage gains remain steady: The August employment figure was lowered from 54,000 to -3,000, in a further sign of labor market weakness, although year-over-year pay growth for job-stayers hit 4.5%.
- Fed officials limited on employment data ahead of the October meeting: The length of the shutdown could make it difficult for Fed members to get a clear economic picture ahead of the October 28-29 FOMC meeting, with some people already skeptical on ADP reliability given large historical revisions.
4. Your Take
One facet of Rule Breaker investing is to buy 'misunderstood growers' crushed by dark clouds we can see through. Put another way, Fools look for opportunities where we can see the light of optimism through the pessimism of conventional wisdom – and aim to profit by investing in tomorrow's success stories.
Share with friends and family the name of a stock that has 'dark clouds that you can see through' hanging over it, and ask for one in return, or become a member to hear what your fellow Fools are saying!