Apple stock sells off as Tim Cook projects $900 million tariff bite

By: bitcoin ethereum news|2025/05/02 17:45:02
0
Share
copy
Apple stock gives way as $900 million tariff cost poses a concern. CEO Tim Cook said he could not project tariff effects beyond the June quarter. Nonfarm Payrolls for April arrive above consensus, sending indices higher. The next support level for AAPL stock comes at $196. Apple (AAPL) stock is the worst-performing Magnificent 7 mega-caps coming out of earnings so far. Barring Nvidia (NVDA), which doesn’t post earnings until the end of May, Apple is the only one of the bunch to demonstrate a clear downside move in the first regular trading session post-earnings. Amazon (AMZN) initially sold off post-earnings on Thursday but has moved back toward even in Friday’s session. Apple’s second fiscal quarter results, released after market close on Thursday, showed a successful beat on the top and bottom lines, but the market focused on the tariff issue to the disadvantage of other positive details. Apple stock opened about 5% lower on Friday but has recovered somewhat to trade 3.5% lower near lunchtime. The broader market is in an upswing after US Nonfarm Payrolls (NFP) for April came in above the forecast. Though March NFP figures saw a major revision to the downside, all three indices gained 1% or more. Apple stock news The major discontent from Thursday’s earnings release was displeasure over the extent of the pain caused by the Trump administration’s tariffs. “Assuming the current global tariff rates, policies, and applications do not change for the balance of the quarter, and no new tariffs are added, we estimate the impact to add $900 million to our costs,” CEO Tim Cook told analysts on the earnings call. One issue with this announcement is that it does not take into account any downturn in the macroeconomic picture. Multiple large banks, such as JPMorgan, have already predicted that a recession will occur due to the tariffs causing a slowdown in growth. Another drawback of Cook’s admission is that he claimed not to have any insight into the effect of tariffs after the current quarter ending in June. While Apple was able to direct more iPhone production from China to India to circumvent those much higher tariffs in the current quarter, investors are realizing that they have little insights into the second half of the year. Another drawback of the Q2 result is that Apple’s consensus beat was narrow. The company reported GAAP earnings per share (EPS) of $1.65, just 3 cents ahead of the forecast. Revenue of $95.4 billion was $840 million ahead of the consensus. The real highlight of the quarter was the services division. Revenue in this segment climbed 12% YoY, double the overall level. While wearables, home and accessories revenue fell 5%, iPad revenue also climbed 15% YoY. Apple stock forecast Apple stock has lost part of its recent rally, which advanced for eight straight sessions. Currently trading near $205 on Friday, the next support comes at $196, a point of resistance during 2024. The next layer of support comes at $180, which is just above the 61.8% Fibonacci level near $178. The year-to-date lows surrounding $170 are undergirded by the 78.6% Fibonacci at $168.60. If Apple stock was to break out of its 2025 downtrend, the first necessary move would be to overcome the descending 50-day Simple Moving Average (SMA) near $215.50 before putting in a new range high above the late March resistance at $225. AAPL daily stock chart Source: https://www.fxstreet.com/news/apple-stock-sells-off-as-tim-cook-projects-900-million-tariff-bite-202505021601

You may also like

Morning News | SK Hynix officially launches the marketing promotion process for its U.S. stock listing; the Central Cyberspace Administration announces the results of the first phase of rectifying AI application chaos, with over 14,000 non-compliant pr...

July 6 Market Important Events Overview

Can Open USD support Stripe's ambitions?

Stripe collaborates with multiple parties to launch OUSD, not only challenging the dominance of USDC but also exposing its trillion-dollar ambition to transition from a "payment interface" to a "next-generation funds settlement network."

Blockchain Capital Partner: AI is rewriting the fundamental unit of labor

The rise of AI is rewriting the basic unit of labor from "positions" and "companies" to "tasks." When programmable labor meets programmable currency, a production line without companies, salary systems, or HR becomes possible for the first time.

The cryptocurrency industry has become a traditional industry

For entrepreneurs and retail investors still in this industry, they should either embrace the current changes or explore the next unpredictable field in cryptocurrency.

Chip frenzy cooling down? Morgan Stanley's Wilson: Funds are shifting towards AI supercomputing giants like Microsoft and Amazon

Morgan Stanley's chief equity strategist Wilson pointed out that the momentum in the semiconductor sector is waning, with the Philadelphia Semiconductor Index having dropped nearly 14% from its peak. Funds are shifting towards AI supercomputing giants like Microsoft, Amazon, and Meta, as well as sec...

Morning Report | Vitalik outlines Ethereum's long-term roadmap, Lean Ethereum will become the third major iteration; SK Hynix seeks to attract more AI investors by listing in the U.S

July 5 Market Important Events Overview

Popular coins

Latest Crypto News

Read more
iconiconiconiconiconiconicon
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com