Archives

bookmark_borderApple’s Innovation Struggles in AI, AR, and VR

Posted on by mikejsiegel

I’ve written about this before (Snapple: Apple should buy Snap), and the case has only grown stronger.

Apple’s recent struggles with AI and AR/VR reveal a deeper issue: a lack of visionary leadership. Tim Cook, now 63, is a master operator, but Apple no longer leads the innovation curve like it once did under Steve Jobs. Siri has stagnated, the Vision Pro is a technical marvel that few people want to wear, and Apple’s AI strategy has largely been catch-up rather than forward-thinking.

In summary, Apple’s recent struggles include:

  • Siri’s stagnation: Little improvement in over a decade, falling behind smarter AI assistants.
  • Generative AI hesitation: No clear AI strategy articulated, drawing industry criticism for lack of vision.
  • AR product delays: Postponed AR glasses as lighter alternatives to Vision Pro, while competitors move faster.
  • Incremental updates: Few groundbreaking changes to flagship products (e.g. iPhone) in recent years.

Meanwhile, Snap is quietly eating Apple’s AR lunch. Over 250 million people use Snapchat’s AR Lenses every day. Their fifth generation Spectacles are already in the hands of developers, enabling real-time voice and gesture control. Evan Spiegel, who founded Snap at 21, isn’t just building fun filters—he’s building the foundation of the augmented future. Snap is now investing $1.5B annually in AI and has already launched a GPT-powered assistant in Snapchat. And they’re not just investing—they’re shipping.

Some concrete highlights of Snap’s innovation under Spiegel include:

  • Mass AR adoption: Over 250 million people use Snapchat’s AR Lenses daily, showcasing Snap’s success in making AR mainstream.
  • AR Glasses development: Snap has released five generations of Spectacles AR glasses, pioneering wearable AR in a consumer context (years ahead of Apple or Meta in offering such devices to developers).
  • Integrated AI features: Snapchat was among the first social apps to launch a GPT-powered chatbot (My AI) for users, and it continues to add AI-driven creative tools (like AI filters and voice changers).
  • Patent portfolio: Snap has secured patents for core AR technologies (e.g. optical systems for AR eyewear) and novel AI applications, underlining its R&D commitment.
  • Culture of new ideas: Even facing copycat competition from much larger companies, Snap’s leadership has consistently introduced unique features (Stories, Bitmoji avatars, Snap Map, etc.), reinforcing its reputation as an innovator rather than a follower.

This is a leadership problem. Apple’s current executives may understand balance sheets and supply chains, but they don’t seem to understand what it takes to win the next platform shift. Innovation in AI, AR, and VR is being driven by younger founders with bold ideas and a bias for action. Apple needs to inject that energy into its DNA.

Buying Snap would give Apple the product vision it desperately needs. It would give them a youth-focused brand, a powerful AR platform, and a social graph that could finally make their hardware truly social. Most importantly, it would give them Evan Spiegel—a product visionary with a proven track record and a long runway ahead of him.

Snapchat may look like a camera app to some, but it’s really a wedge into the future. Apple should pay attention—before Meta or someone else does.

bookmark_borderOvercoming Adversity: How Coinbase and Airbnb Continue to Thrive

Posted on by mikejsiegel

Coinbase and Airbnb recently announced their latest earnings, and while neither company has been on a neat, upward-only trajectory, both have demonstrated remarkable resilience and an ability to navigate unpredictable waters. These successes are a testament to the tenacity and vision of their founders, who have consistently shown the courage to delay immediate gratification for the sake of long-term growth.

Coinbase, led by Brian Armstrong, has weathered significant volatility in the cryptocurrency space, especially over the past couple of years. Regulatory uncertainty and market downturns put pressure on the platform’s revenue. Yet, its earnings release revealed that Coinbase has managed to maintain strong user engagement, streamline costs, and diversify its offerings. By staying laser-focused on building a secure, user-friendly exchange and trusting that crypto adoption would trend upward over time, Armstrong demonstrated the very essence of delayed gratification. Instead of chasing short-term profits, he invested in compliance, innovation, and customer trust.

Airbnb, co-founded by Brian Chesky, Joe Gebbia, and Nathan Blecharczyk, showcases a similarly resilient spirit. Though early pandemic restrictions and fluctuating travel trends once threatened the company’s core business, Airbnb’s most recent earnings highlight not just a return to pre-pandemic performance levels, but an emergence stronger than ever. By investing in new features such as long-term stays and flexible date searches, Airbnb addressed the changing preferences of travelers. The founders’ conviction in reimagining travel—rather than pivoting wildly in response to short-term headwinds—has paid off.

Both Coinbase and Airbnb remind us that progress often comes in waves rather than straight lines. Through calculated patience and courageous leadership, their founders refrained from taking shortcuts or compromising their visions. Instead, they boldly leaned into adversity, setting their companies on a path to enduring success while inspiring a new generation of entrepreneurs to do the same.

bookmark_borderSnap’s Niche but Growing Role

Posted on by mikejsiegel

Snap isn’t hogging headlines like Meta or Apple, but it continues to innovate around augmented reality and youth-centric features. Their latest lens-based shopping experiences are bridging the gap between fun and function—letting users virtually try on clothes or accessories before purchasing.

A recent Adweek piece highlighted how Gen Z shoppers are turning to Snap for product discovery. That’s exactly the demographic many brands crave, and Snap’s ad platform makes it easier for them to reach that audience. It doesn’t command the scale of Instagram or TikTok, but Snap’s laser focus on AR sets it apart.

Financially, Snap’s been choppy, primarily due to inconsistent ad revenue growth and fierce competition. Still, the company’s daily active users keep ticking upward. For me, that’s a sign they’ve carved out a unique space in the social media landscape—something ephemeral, playful, and visually engaging that resonates with younger users.

I don’t expect Snap to become the next Meta. But I do think it’s poised to remain a strong niche player. If management continues refining its AR and e-commerce tools, Snap could see steadier revenue gains over the next few years. I’m holding on to my shares, viewing Snap as a smaller, riskier bet in my broader tech portfolio—one that could pay off nicely if AR commerce hits mainstream adoption.

bookmark_borderApple’s Steady as She Goes

Posted on by mikejsiegel

Year after year, Apple manages to post consistent earnings, even when the broader market wobbles. One reason is the company’s methodical approach to refining its hardware lineup—incremental improvements that keep users upgrading. The other is Apple’s booming services segment, which has become a steady revenue anchor through subscriptions like Apple Music, Apple TV+, iCloud, and more.

9to5Mac showed an interesting breakdown: iPhone sales still lead, but wearables and services continue to creep up. This diversification is key. If iPhone sales dip one quarter, Apple can still rely on services and accessories to bolster the bottom line. It’s the power of a well-rounded ecosystem.

Moreover, Apple’s push into financial services (like the Apple Card and Apple Pay) hints at another growth vector. While regulatory hurdles exist, it’s a logical extension of Apple’s brand. People trust their iPhones with everything from health data to payments, so a deeper financial integration might just make sense—and money.

As an investor, I’m not expecting any moonshot breakthroughs every quarter. Apple’s become a reliable, almost “blue-chip” tech stock. The real excitement might come from rumored AR/VR devices, but even without that, Apple’s proven track record and fanatically loyal user base suggest it’ll stay a cornerstone of my portfolio.

bookmark_borderAtlassian in the AI Era

Posted on by mikejsiegel

AI is making its way into every corner of tech, and Atlassian is no exception. They’ve begun rolling out features that harness machine learning to improve project management—suggesting task assignments, automating ticket creation, and forecasting project timelines. It’s all about letting teams work smarter, not harder.

A Forbes article recently spotlighted Atlassian’s AI-driven improvements. By analyzing historical data from Jira and Confluence, the system can identify patterns—like which tasks typically lead to delays or which team members excel in certain areas. For businesses, that level of insight can streamline collaboration on a massive scale.

What I appreciate is Atlassian’s cautious approach. They aren’t tossing in AI features just to impress investors; they’re focusing on practical additions that genuinely enhance the user experience. That’s important, because forced AI features can lead to user frustration and questionable ROI.

From an investment perspective, the question is whether Atlassian can keep pace with giants like Microsoft, which is integrating AI through GitHub Copilot and Azure. However, Atlassian’s dedicated focus on collaboration and project management gives it a strong niche. If they continue integrating AI thoughtfully, they could reinforce their competitive moat. Personally, I’m confident enough to keep holding and occasionally topping up my position.

bookmark_borderMeta’s Slow and Steady Metaverse Progress

Posted on by mikejsiegel

Remember when “metaverse” was the buzzword everyone was either hyping or mocking? Meta’s still plugging away at it, refining VR headsets and virtual platforms. While user adoption hasn’t skyrocketed overnight, I’m noticing more signs of real-world use cases—particularly in education, remote collaboration, and training simulations.

Axios recently ran a piece on several Fortune 500 companies trialing VR for onboarding and employee training. If Meta can capture that enterprise market, it could offset weaker consumer adoption. Selling a few thousand headsets to a corporate client can be more lucrative than trying to woo individual gamers one by one.

Financially, Meta’s ad business is still the cash cow, though it’s faced headwinds from Apple’s privacy changes and growing competition. But the company’s pivot to short-form video (Reels) and new ad formats seems to be stabilizing revenue. It might not be the rocket growth we saw in Facebook’s early days, but it’s enough to keep the lights on while they invest in the metaverse.

As a shareholder, I’m willing to endure the growing pains. The future might be a fully fleshed-out metaverse or something simpler, but the underlying technology—VR, AR, immersive social—isn’t going anywhere. If Meta can stay focused on delivering value (and not just hype), the next few years could validate this bold pivot.

bookmark_borderAmazon’s AI Ambitions

Posted on by mikejsiegel

Amazon’s not just about e-commerce and cloud storage anymore; they’re delving deep into artificial intelligence. AWS has been rolling out new machine learning offerings at a steady clip, competing head-to-head with Microsoft Azure and Google Cloud in the AI services arena. Their pitch is simple: integrate AI solutions with the same platform you already use for everything else.

A TechCrunch article I found last week highlighted how Amazon is deploying generative AI to improve product recommendations. The idea is to make e-commerce more intuitive, predictive, and personalized—ensuring you see exactly what you need before you even know you need it. That’s a revenue driver if there ever was one.

Meanwhile, Alexa continues to evolve, though it hasn’t become the massive revenue stream some predicted. Still, voice assistants remain a key entry point for AI in the home, and Amazon has a large installed base to leverage. If they can harness generative AI to make Alexa truly indispensable, it might reignite interest in smart home devices.

For investors, the biggest question is how much Amazon will spend to develop these AI capabilities—and how quickly it’ll pay off. Historically, Amazon’s willingness to invest heavily in innovation has paid dividends in the long run. So while AI might cause short-term bumps in operating expenses, it’s hard not to be optimistic about the potential returns. I’m staying long on AMZN, confident that AI will be a big piece of its future narrative.

bookmark_borderApple and the Future of Wearables

Posted on by mikejsiegel

The wearables market has matured fast, and Apple’s at the forefront with the Apple Watch and AirPods lines. Recent rumors from Mark Gurman at Bloomberg suggest more robust health monitoring features might be on the horizon. From blood glucose tracking to advanced heart health metrics, Apple seems keen to transform the Watch into a must-have health companion.

As an investor, I see huge potential here. Healthcare is a trillion-dollar industry, and consumer tech companies are only beginning to tap it. Apple’s brand trust and established customer base could position them to dominate wearable healthcare. That’s not just hardware sales—it’s an entire ecosystem of apps, subscription services, and partnerships with medical providers.

Skeptics argue about privacy concerns and regulatory hurdles. But Apple has generally been proactive with user data protection. If they manage to keep user trust high, these new features could solidify Apple’s moat. And once you’re using an Apple Watch to monitor chronic conditions, you’re unlikely to leave the Apple ecosystem for a competitor.

Sure, global supply chain issues and inflation may affect short-term results. But Apple’s consistent revenue streams from services and accessories give it resilience. I remain bullish on Apple’s long-term prospects, especially as it blurs the line between consumer tech and digital healthcare.

bookmark_borderAtlassian’s Strategic Acquisitions

Posted on by mikejsiegel

Atlassian’s been on a buying spree again, snapping up smaller startups to bolster its ecosystem of collaboration and workflow tools. I’ve always admired how Atlassian takes a measured approach to acquisitions—integrating them in ways that augment Jira, Confluence, and Trello without bloating the product suite.

I saw a piece in VentureBeat detailing Atlassian’s latest purchase: a company specializing in AI-driven analytics. If they can bake advanced analytics and predictive capabilities directly into Jira workflows, that’s a potential game-changer for project management. Teams could spot bottlenecks before they happen, measure productivity more accurately, and drive better decision-making.

This move also keeps Atlassian competitive in a space where AI features are becoming table stakes. Microsoft, Google, and other big players are incorporating machine learning into their software solutions, so it’s smart for Atlassian to build or buy that expertise.

From an investment perspective, the company has shown prudent growth strategies. They rarely overspend, and their acquisitions are often made with a long-term integration plan. That synergy, plus Atlassian’s core focus on collaboration, means they’re likely to keep their edge in agile development and workplace productivity. I’m doubling down on my position, anticipating that these strategic plays will pay off as more companies embrace the hybrid-remote work model.

bookmark_borderMeta’s Tough Year and Future Prospects

Posted on by mikejsiegel

It’s been a rollercoaster year for Meta stock, no question. The metaverse vision is still burning cash, and user growth on Facebook has plateaued in certain markets. But I’m not throwing in the towel. As someone who’s watched this company adapt time and time again, I believe there’s another act waiting in the wings.

I found an interesting The Information article that dives into Meta’s Reality Labs spending. Yes, they’re hemorrhaging money, but the progress in VR/AR tech is notable. The Quest headsets are popular with early adopters, and enterprise solutions might unlock new revenue streams. Think remote training, VR workspaces, and immersive marketing experiences.

Regulatory hurdles remain. Meta’s approach to privacy and data handling has often drawn fire. But as they retool and pivot, there’s a chance they’ll address those concerns in a more fundamental way. The success of Reels on Instagram also shows they can still innovate and keep up with trends. Meanwhile, their advertising engine remains strong enough to fund these bets on the future.

I’m continuing to hold, albeit with eyes wide open. The stock might stay volatile for a while. But if you have the stomach for it, Meta could look like a bargain a few years down the road—especially if the metaverse concept starts showing real-world returns.