Duo Delivers: Apple's iPhone Breaks Launch Stock Market Norm

Apple's stock has been performing well this year, up about 24% compared to a roughly 12% gain for the S&P 500 Index. The company's latest product launch, the iPhone Duo, was met with a relatively muted response from investors.

The Duo is Apple's first foldable smartphone, priced at $1,999 for a base model, its most expensive smartphone to date. Despite initial skepticism, the stock price jumped 3.6% the day after the announcement, outperforming the S&P 500 Index by nearly 4.2%.

This reaction is unusual, as many investors tend to 'buy the rumor and sell the news.' However, Sean Michael Cummings, an analyst at Stansberry Research, notes that Apple's past product launches have often been followed by a decline in stock price the next day.

But three notable exceptions stand out: the original iPhone, iPod, and Apple Watch. These category-killing products saw significant gains in stock price following their announcements. The iPhone Duo is now included in this group, marking Apple's third most bullish product launch in 26 years.