Apple Ramps Up Wearables for AI Era | Bloomberg Businessweek Daily 2/17/2026
Watch on YouTube ↗  |  February 17, 2026 at 21:22 UTC  |  57:56  |  Bloomberg Markets
Speakers
**Carol Massar** — Anchor, Bloomberg Businessweek
**Tim Stenovec** — Anchor, Bloomberg Businessweek
**Mark Gurman** — Chief Correspondent, Bloomberg News (Apple/Tech)
**Katrina Manson** — Tech & National Security Reporter, Bloomberg
**David Limp** — CEO, Blue Origin
**Dana Telsey** — CEO, Telsey Advisory Group (Retail Analyst)
**Norah Mulinda** — Market Reporter, Bloomberg

Summary

  • Market Context (2026): Markets are volatile with "AI Anxiety" regarding capex spend versus returns. Yields are rising (10-year ~4.1%).
  • Apple's Pivot: Apple is accelerating a shift to AI-hardware (Smart Glasses, Pendants) to reduce reliance on the iPhone, targeting a 2027 release, but success hinges entirely on a revamped Siri/Gemini integration.
  • Defense AI: Silicon Valley (Anthropic, Palantir) is increasingly integrating with the Pentagon. The "Safe AI" narrative is being tested against the DoD's need for surveillance and autonomous weaponry.
  • Retail Bifurcation: The consumer is resilient but selective. Value players (Walmart, TJX) and successfully reinvented legacy brands (Gap, Ralph Lauren) are winning. Laggards (Target, Lululemon) are struggling with product identity.
  • Space Race: Blue Origin is pivoting resources to "Lunar Permanence" (Moon base) to compete with SpaceX, framing space as the "new high ground" for national defense and resource extraction.
Trade Ideas
Ticker Direction Speaker Thesis Time
LONG Norah Mulinda
Bloomberg Market Reporter
Activist investor Elliott Management has built a >10% stake in Norwegian Cruise Line and sent a letter urging changes to unlock "150% upside." Activist involvement of this magnitude typically forces management to cut costs, buy back shares, or seek a sale, creating an immediate catalyst for price appreciation. LONG (Event-Driven). Management successfully fights off the activist; consumer travel spending rolls over.
WMT /TJX /GPS /RL /FIGS
LONG Dana Telsey
CEO and Chief Research Officer, Telsey Advisory Group
* WMT: Described as "the best out there," seeing sales growth and expected margin upticks in 2026. * TJX: Aggressively opening stores (100/year) with strong marketing; off-price model fits the current consumer. * GPS: "The Gap is back." New creative direction has successfully blended product and marketing; stores are being updated. * RL/FIGS: Ralph Lauren raising unit prices successfully; FIGS gaining brand awareness via Team USA/Olympics partnership. In a "K-shaped" economy, capital flows to two places: massive scale/value (WMT, TJX) and brands with high heat/momentum (GPS, RL). These companies have proven execution in the current macro environment. LONG (Quality/Momentum). General consumer spending slowdown; supply chain disruptions from tariffs. 1:34
WATCH Dana Telsey
CEO and Chief Research Officer, Telsey Advisory Group
* TGT: Struggling to win in discretionary categories; historically 60% discretionary, now reversed. Needs to prove it can win back "treasure hunt" shoppers. * LULU: Facing product quality issues (see-through leggings) and needs a "reinvention" cycle. * NKE: In the "middle innings" of a turnaround; needs to put actual wins on the board before being a buy. These former darlings are currently "show-me" stories. Until they demonstrate consistent product wins or margin stabilization, they are value traps compared to the winners (WMT/GPS). WATCH (Wait for earnings confirmation). Turnarounds happen faster than expected; oversold bounce. 49:49
WATCH Mark Gurman
Chief Correspondent, Bloomberg News
Apple is developing AI wearables (Smart Glasses, Pendant) for 2027 but canceled previous projects (Watch with camera). The entire strategy hinges on "Siri working" and the Gemini partnership. Apple is playing catch-up to Meta in the glasses form factor. While the hardware ambition is clear, the execution risk lies in the software (Siri/AI), which has historically been Apple's weak point. This is not an immediate revenue driver. WATCH (Execution risk high). Siri update fails to impress; product delays push launch beyond 2027. 4:17
LONG Katrina Manson
Editor, Financial Times
Anthropic is extending contracts with the Pentagon, but they are integrating into systems like the "Maven Smart System" which is "produced by Palantir." While new AI startups (Anthropic) are entering the defense space, they are plugging into infrastructure *already built* by Palantir. PLTR remains the operating system of choice for the DoD, benefiting from increased AI defense spending. LONG (Incumbent advantage). "Safe AI" pushback limits deployment; government budget cuts. 13:34
WATCH Norah Mulinda
Bloomberg Market Reporter
Warner Bros. Discovery (WBD) agreed to reopen negotiations with Paramount (PARA) regarding a merger/acquisition. Renewed M&A talks suggest consolidation is inevitable in the media sector to compete with Netflix. This puts a floor under the stock prices due to deal speculation. WATCH (M&A Arbitrage). Regulatory antitrust blocking; deal falls through again. 3:26
LUV
LONG Norah Mulinda
Bloomberg Market Reporter
Southwest Airlines (LUV) rising on a UBS upgrade. The upgrade cites specific initiatives: extra legroom and assigned seating. These structural changes align LUV with industry standards, potentially unlocking higher-margin revenue tiers. LONG. Execution of new seating model alienates core customer base. 3:53