|Bid||52.50 x 1400|
|Ask||70.00 x 3100|
|Day's Range||56.72 - 57.40|
|52 Week Range||50.45 - 76.72|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.39|
|Expense Ratio (net)||0.59%|
Apple Updates: Verizon Deal, HomePod in China, and More(Continued from Prior Part)Apple launches three iPhone models Apple (AAPL) is reportedly releasing three iPhones this year. According to the Wall Street Journal, Apple’s three new models will
Apple Updates: Verizon Deal, HomePod in China, and More(Continued from Prior Part)Apple freezes its hiring plan Apple (AAPL) has recently announced that it is cutting back on its hiring plan amid weakness in iPhone sales, as was pointed out by CEO
The People’s Bank of China injected a record 560 billion yuan ($83 billion) in the country’s financial system, initially soothing investors but at the same time stoking fears about the slowing of the world’s growth engine.
After shrugging off higher U.S. tariffs and surging for most of 2018, Chinese exports took an unexpected turn in December, declining 4.4% from a year earlier, according to data released Monday. Combined with (AAPL)’s recent warning about softer sales in China, the data triggered fresh concerns over a slowdown of the Chinese economy and its impact on the global market. “That would indicate an end to the pre-tariff purchasing rush by U.S. buyers,” according to Panjiva, a trade-data provider S&P Global bought last year.
Why Autohome Is Down 13% TodayAutohome Chinese online automobile content provider Autohome’s (ATHM) stock is known to be highly volatile. In December, the stock fell 5% after surging 13.8% in the previous month. Nonetheless, it managed to end 2018 with solid 24.7% gains. Investors’ high expectations for the company’s growth potential due
On Jan 4, People's Bank of China (PBOC), cut the reserve requirement ratio (RRR) by 100 bps or 1 percentage point to reignite growth in the world's second-largest economy.
Losses for U.S. stocks and economic weakness in China make a trade deal more attractive. Chinese stocks could gain if an agreement is reached, or if the government unveils more stimulus to soften the blow, should a deal fall through.
The Latest from Amazon: Market Cap, Amazon Go Stores, and More ## Amazon beats Microsoft in market cap Online e-commerce giant Amazon (AMZN) exceeded Microsoft’s (MSFT) market capitalization on Monday and became the most valuable public company in the world. Amazon stock rose 3.44% on January 7 to close at $1,629.51, thus reaching a market cap of $796.78 billion. Microsoft’s market cap, which stands at $783.6 billion as of January 7, had surpassed Apple’s market cap last month. Apple’s stock price has been declining significantly due to a significant sell-off amid sluggish iPhone sales and a cut in the company’s sales guidance. Apple is now worth $701.9 billion, lagging behind Alphabet (GOOGL), which has a market cap of $745.4 billion. ## Amazon’s top spot amid market turmoil Amazon has reached the top position for the first time with a market cap of $796.8 billion amid a volatile market. Though the company’s market cap had declined nearly 21% since September 4 when the company touched $1 trillion, Amazon’s investors are still bullish on the stock, as the company is focusing on higher-margin businesses such as advertising, cloud computing, and subscription services. Amazon was the second company after Apple to hit a trillion dollar market cap. Recently, tech stocks including Amazon, Microsoft, and Apple have lost value due to a significant sell-off in the market amid global concerns related to the US (SPY)-China (MCHI) trade war, Fed rate hikes, and a slowing economy. Apple is expected to suffer the most due to the ongoing US-China tensions, as it imports parts for its products from China. Further, China is the second-largest market for Apple iPhones after the United States and is the world’s largest smartphone market. Apple stock has lost nearly $400 billion of its market value since early October. Last week, Apple also slashed its revenue guidance for the upcoming quarter and warned investors about its sluggish demand for iPhones, especially in China. Continue to Next Part Browse this series on Market Realist: * Part 2 - Why Amazon Is Facing Troubles in New York City * Part 3 - Can Kroger’s Partnership with Microsoft Threaten Amazon? * Part 4 - Why Analysts Have a Positive View on Amazon Stock
Why Tencent Music Tanked Over 4% Today ## Tencent Music Chinese music streaming services provider Tencent Music Entertainment Group’s (TME) performance has remained mixed since its IPO in December. Through its IPO, the company managed to raise about $1.1 billion, translating to a value of $21.3 billion. Tencent Music’s ADRs (American depositary receipts) started trading on NYSE at $13.00, and as of January 4, it had gone up 1.5%. ## Recent weakness Today at 2:50 ET, Tencent Music ADR posted a day low of $12.64, down about 4.2% from its previous session’s closing price. There was no significant news from Tencent music. However, last week, its home-market competitor NetEase Cloud Music, owned by NetEase Inc. (NTES), announced a partnership with South Korean entertainment company CUBE Entertainment. Under this partnership, “NetEase Cloud Music has been granted access to CUBE Entertainment’s complete music catalog, including sought-after albums and tracks from popular performers such as BTOB, CLC, PENTAGON, Yoo Seon-Ho and (G)I-DLE,” it said in a press release. Investors’ concerns about increasing competition for Tencent Music due to NetEase Cloud Music’s expanding music library in China could be taking a toll on TME. Note that Tencent Music was formed after its parent company, Tencent Holdings (TCEHY), acquired China Music Corporation in 2016 while NetEase Cloud Music launched in 2013. In the fourth quarter of 2018, Tencent Holdings fell 3.4% while other Chinese companies (FXI)(MCHI) Alibaba (BABA), NIO (NIO), Baidu (BIDU), and IQIYI (IQ) lost 16.8%, 8.7%, 30.6%, and 45.1%, respectively. In comparison, US tech companies Apple (AAPL), Amazon (AMZN), and Netflix (NFLX) fell 30.1%, 25.0%, and 28.5%, respectively, last quarter.
Market Rallied Friday after Upbeat Jobs Report and Fed Comments (Continued from Prior Part) ## Apple stock recovers Apple (AAPL) stock rose 4.27% on Friday and closed at $148.26. Friday’s gain of more than 4% follows the significant decline of around 10% on January 3 after the company announced waning iPhone sales in China (MCHI) (FXI) and slashed its revenue and gross margin guidance for the first quarter of fiscal 2019, which ended in December. According to IHS analyst Samuel Pierson, Apple’s stock price rebounded due to panic-buying as investors with short positions in the stock wanted to make profits from Thursday’s decline. Apple’s stock gain was driven by the overall market rally on Friday after encouraging employment reports and the Fed’s patience related to rate hikes. ## Apple guidance slashed On Wednesday, Apple’s CEO reduced its guidance and stated that it now expects sales of approximately $84 billion for the holiday quarter, lower than the Wall Street consensus of $91.3 billion. On November 1, Apple gave a sales outlook in the range of $89 billion to $93 billion for the December quarter. The iPhone maker has also trimmed its forecast for the gross margin and operating expenses for the first quarter. The company now expects margins to be ~38%, which is on the low end of the previous guidance range of 38% to 38.5%. Similarly, operating expenses are projected to be approximately $8.7 billion, which is at the lower end of the earlier guided range of $8.7 billion to $8.8 billion for the quarter ending in December. Apple has been struggling for the past few months amid weakening demand for iPhones, which is the primary driver of the company’s revenues. Also, US (SPY)-China trade war concerns, the $29 iPhone battery replacement program, and fewer iPhone upgrades than anticipated have also dented iPhone sales. Apple also expects foreign exchange costs and weakness in emerging markets to hurt the sales in the holiday quarter. In the fourth quarter of fiscal 2018, iPhone sales grew 29% YoY to $37.2 billion. Continue to Next Part Browse this series on Market Realist: * Part 1 - What Is Goldman Sachs’s Take on These Internet Stocks? * Part 3 - Why Netflix Stock Was Up More than 9% on Friday * Part 4 - Square Stock Soared ~11% on Friday after Getting New CFO
Apple Stock Fell ~10% Yesterday after Its CEO Warned about Sales (Continued from Prior Part) ## Apple’s iPhone sales in China Apple (AAPL) has been witnessing sluggish demand for its iPhones in China (MCHI) (FXI), the world’s largest smartphone market. China is also the second-largest market for Apple iPhones after the United States (SPY). Apple has been growing in the double-digits in the Greater China region for the past five quarters after seven consecutive quarters of falls. However, this growth has been declining for the past two straight quarters. The Greater China region includes revenues from China, Hong Kong, and Taiwan. In the fourth quarter of fiscal 2018, Apple’s revenue from Greater China rose 16% YoY (year-over-year) to $11.4 billion, while it rose 19% YoY in the third quarter and 21% YoY in the second quarter. ## Weakening economy in China Apple expects headwinds in China to be one of the major drivers of its revenue guidance cut for the first quarter of fiscal 2019. Apple now expects its fiscal 2019 first-quarter revenue to be as much as $9 billion, lower than its earlier forecast. The trade war between the United States and China has weakened the demand for iPhones among Chinese consumers. Currently, Apple’s products, including iPhones, are exempted from the tariffs. Other Apple products, such as its smartwatch, wireless headphones, and speakers, are also exempted from the tariffs. However, in November, President Donald Trump suggested that he might place a 10% tariff on iPhones, MacBooks, and iPads imported from China, making them more expensive. In the fourth quarter of fiscal 2018, overall iPhone sales rose 29% YoY to $37.2 billion. Continue to Next Part Browse this series on Market Realist: * Part 1 - Apple Stock Fell ~10% Yesterday after Its CEO Warned about Sales * Part 2 - Apple Blames Slowdown in China for Its Guidance Cut * Part 4 - Where Is Apple Placed in the Global Smartphone Market?
Apple Stock Fell ~10% Yesterday after Its CEO Warned about Sales (Continued from Prior Part) ## Apple disappoints investors Apple (AAPL) stock tumbled as much as 10% on January 3 due to waning iPhone demand in China (MCHI) (FXI), which led to a cut in its revenue guidance for the first quarter of fiscal 2019. Apple’s weak sales in the holiday quarter hurt the global market sentiment, pulling major market indexes, chip stocks, and Apple suppliers down. Soft iPhone demand in one of the world’s fastest-growing economies has made cautious investors jittery. ## Guidance cut Apple’s CEO, Tim Cook, disclosed in a letter to investors that the company could miss its sales guidance for the first quarter of fiscal 2019. Apple expects to miss the low end of its guidance by $5 billion and the high end by $9 billion, meaning that the iPhone maker now expects to report sales of $84 billion for the quarter. Apple’s revenue was $88.3 billion in the first quarter of fiscal 2018. During its fiscal 2018 fourth-quarter results, the company guided for fiscal 2019 first-quarter revenue in the range of $89 billion–$93 billion. It also predicted that foreign exchange costs, demand-supply issues, and weakness in emerging markets would hurt its sales in the holiday quarter. Apple’s weakening iPhone demand is one of the reasons for its weak first-quarter guidance, as iPhones contribute a significant portion of its total revenue. The $29 iPhone battery replacement program also significantly dented iPhone sales during the quarter, and there were fewer iPhone upgrades than anticipated, which was detrimental to sales. The tariff war between the United States (SPY) and China could also increase the cost of its products, including Apple iPhones, Apple Watches, AirPods, Apple Pencils, HomePods, Mac Minis, and adapters and chargers. ## Weak forecast for expenses and margins Other than a soft sales view, the company expects a gross margin of ~38% and operating expenses of ~$8.7 billion for the first quarter compared to its previous outlook, which it announced in November. The company had predicted a gross margin in the range of 38%–38.5% and had guided for operating expenses in the range of $8.7 billion–$8.8 billion for the quarter. Continue to Next Part Browse this series on Market Realist: * Part 1 - Apple Stock Fell ~10% Yesterday after Its CEO Warned about Sales * Part 3 - Why Is Apple Underperforming in China? * Part 4 - Where Is Apple Placed in the Global Smartphone Market?
The market-wide sell-off that has been a nightmare for US investors since October intensified today once more. On Wednesday, the S&P 500 Index (SPY), NASDAQ Composite Index (QQQ)(VTI), and Dow Jones Industrial Average (DIA) rose 5.0%, 5.8%, and 5.0%, respectively. In contrast, on Thursday at 3:10 PM ET, these indexes were trading with 1.7%, 2.1%, and 1.7% daily losses, respectively. Let’s take a quick look at some key facts and see if the US market has really bottomed out or if yesterday’s rally was just a trap for investors.
Cleveland-Cliffs (CLF) exited its direct seaborne iron ore exposure through the sale of its Asia-Pacific iron ore assets to Mineral Resources on August 28. CLF is mainly a US-based (DIA)(IVV) iron ore pellet producer and should be valued as such. China consumes more than 70% of seaborne-traded iron ore, so, it’s the largest factor affecting seaborne iron ore prices.
Micron (MU) has witnessed significant growth in its non-GAAP gross and operating margin for more than a year despite a consistent rise in operating expenses. The operating margin has also increased from 46.4% in the first quarter of fiscal 2018 to 49.1% in the first quarter of fiscal 2019.
In the BAML (Bank of America Merrill Lynch) December 2018 survey, trade war concerns were again named as the top concern among global fund managers. The trade war was cited as the top risk for a seventh consecutive month. About 37% of fund managers surveyed cited it as their top tail risk, which is higher than last month’s 35%.
A much anticipated speech from Chinese President Xi Jinping on Tuesday left investors struggling with what to make of it.
“Black Monday” refers to the stock market crash on Monday, October 19, 1987. The crash was pre-empted by investors’ fears that the broader market (VTI) was entering a bear market cycle and concerns about slowing economic growth. Other negative global factors also played a role in the crash. On Black Monday, the S&P 500 saw (SPY)(QQQ) about 20.5% value erosion in a single day.
China consumes more than 70% of seaborne-traded iron ore, so it’s important for iron ore investors to track the country’s demand and outlook to gauge the overall outlook for iron ore. China imported 86.25 million tons of iron ore in November, implying declines of 8.8% YoY (year-over-year) and 2.4% sequentially—and marking its second straight month of decline. This weakness has been weighing on the demand for imported iron ore.
On December 1, US (SPY) President Trump and Chinese (MCHI) (FXI) President Jinping discussed some issues during the G20 summit in Argentina. They discussed China’s trade practices, which have led to massive tariffs on $200 billion worth of imported goods from China. President Trump stated that he temporarily won’t increase the tariff on imported Chinese goods worth $200 billion. Previously, he decided to increase the tariff to 25% from 10% starting on January 1.
China’s trade surplus with the US (SPY) has been hitting one record after another. In November, China’s (MCHI) trade surplus rose to $35.6 billion, which is a new record. While China’s exports to the US rose 9.8% YoY (year-over-year), the imports fell 25% YoY.