Apple Impacted by US/China Tensions

Market Overview
Read time 1.2 minutes

Year To Date Performances:

1. Amid a brewing tech storm between China and the U.S., Apple's stock has tumbled, casting shadows over its upcoming iPhone 15 release. Within just two days, Apple's stock transitioned from cruising above its 50-day moving average to dipping below its 100-day mark. This decline can be traced back to China's new policy to ban iPhones for its government officials, a decision that might soon encapsulate government-backed agencies and state-run corporations. This move from China is in sync with its broader objective to minimize reliance on U.S. technology, a sentiment mirrored by its recent launch of the Huawei phone. Concurrently, the U.S. is tightening its reins on chip exports to the Asian giant. For Apple, the stakes are high. China is more than just a market; it contributes to 19% of Apple's revenue and has witnessed a threefold increase in revenues over the last decade. Furthermore, China's significance is amplified as millions of its workers are involved in iPhone manufacturing. However, for Apple enthusiasts, the anticipation builds with the iPhone 15 lineup set to debut next week.

2. GameStop posted a stellar quarter with revenues of $1.16B, surpassing the anticipated $1.14B. Remarkably, they reported an earnings per share (EPS) loss of just 1¢, which stands in sharp contrast to the expected 14¢ loss. A rigorous cost-cutting strategy has proven fruitful as the net loss dramatically reduced to -$2.8M, a significant improvement from last year's -$108M. It seems GameStop is levelling up!

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4. Headlines

   1. Roku is laying off 10% of its staff.

   2. WeWork has announced that it will be renegotiating its leases due to financial difficulties.

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