What happened
Companies that make glucose monitoring devices were under strain in the stock market Wednesday. While this isn't a monster part of Abbott Laboratories' (ABT -0.93%) business, the company did suffer from guilt by association. A tech giant, it seems, might be coming for its market share. And as a result, Abbott's share price sagged by nearly 1% today.
So what
This morning, citing unnamed "people familiar with the matter," Bloomberg reported that Apple (AAPL 0.29%) is developing noninvasive glucose monitoring. Apparently the aim is to incorporate such a function into the Apple Watch.
Regular glucose monitoring is essential for people who suffer from diabetes -- a widespread disorder, particularly in the U.S. Classic glucose monitoring involves pricking the skin for a small blood sample.
Abbott and other companies make skin patches that essentially perform this work, but they must be replaced roughly every two weeks and are therefore a somewhat clunky solution.
Apple's glucose monitoring project, code-named E5 according to Bloomberg's reporting, is centered on advanced microchip technology known as silicon photonics. Essentially, the company hopes to use lasers to emit certain wavelengths of light below the skin in order to take measurements. Hundreds of Apple engineers are working on the project, the article's sources said.
Now what
This is certainly good news for those with diabetes, and if realized, it would represent a true advancement in diabetes care. At the moment, though, it's only a media report, and no investor should sell out of Abbott or load up on Apple simply because of it.
Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Abbott Laboratories and Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
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February 23, 2023 at 06:07AM
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Why Abbott Laboratories Stock Sank Today - The Motley Fool
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