Apple pauses US watch sales, VF Corp data breach: Top Stocks
Apple (AAPL) has paused the US sales of its Apple Watch Series 9 and Ultra 2 products over a patent dispute with med-tech firm Masimo (MASI). VF Corp. (VFC) — the parent company of brands like Vans and North Face — shares tumble following an announcement that a recent cyber attack could harm the holiday sales.
Yahoo Finance’s Julie Hyman and Josh Lipton break down these headlines.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Video Transcript
JOSH LIPTON: Now, let's get to some trending tickers. Shares of Apple trading just slightly lower. That's today after announcing the company will halt US sales of the Apple Watch Series 9 and Ultra 2, the stoppage due to an ongoing patent dispute.
So this, Julie, is the issue here is The International Trade Commission, the ITC ruling that Apple violates Masimo patents and would need to halt device-- halt sales of the devices. And specifically, this is all about patents related to the watch app that's calculating blood oxygen saturation.
I was chatting today with Gene Munster over at Deepwater Asset Management. Gene is a well-known, well-respected Apple analyst. Here's why you care about this. He said because by his math, the Series 9 and the Ultra 2 generate, at this point, the vast majority of the company's watch sales right now.
Remember, Apple doesn't break out the watch segment. Gene thinks it accounts for about 5% of total company revenue. Now, bottom line, is it a big deal or no deal? Munster take is this, ugly headline that gets fixed in the next two months. Either Apple wins, he says, on appeal, or Apple pays up. And if they pay up, Munster argues it's a nonevent. We'll see.
JULIE HYMAN: Well, and the question is if you were going to buy an Apple Watch for yourself or for your loved one for the holidays, do you rush out now and get one? So are those sales eliminated or just--
JOSH LIPTON: They'll leave it that.
JULIE HYMAN: --deferred or even brought forward, right? It looks like people, according to 9to5Mac, which I believe first reported this, it looks like people will be able to buy, what? Until 3:00 PM Eastern on Thursday. And that, after that's online, and that they have until December 24 to get the inventory that's in store, so they-- they still have a little bit of time.
JOSH LIPTON: Yeah.
JULIE HYMAN: We'll see what happens with the flow of the orders based upon that.
JOSH LIPTON: We'll watch it.
JULIE HYMAN: Yes. Let's talk about V.F. Corp as well. Those shares have been tumbling today after the company announced a recent cyber attack may affect its holiday sales. Now, remember, we have been telling you about this new SEC cyber attack rule that just went into effect today. And it basically says that companies that determine that a cyber attack is going to have a material effect that is cost them money, have to report that finding within four days, not the cyber attack within four days, but the realization or the finding that it's going to be material.
So it looks like V.F. is the first that technically falls in this window. There have been certainly companies that have been doing this in anticipation of this rule going into effect. But V.F. says it doesn't know yet how much it's going to cost it. But it is having an effect on its ability to fulfill orders at this time.
JOSH LIPTON: Yeah, it's a rough time for this to happen too, right? I mean, remember, they pulled their fiscal 24 guidance when they reported back in late October. CEO Bracken Darrell is pretty new on the job. He was just appointed to that role over the summer. They do have this plan in place, Julie, trying to address some of these challenges, improve North America, turn around the Vans brand, reduce, you know, fixed costs and leverage. But this headline-- and its ripple effects right now during the holidays is just-- it's brutal.
JULIE HYMAN: And remember, there's an activist at work here, Engaged Capital, has a stake in the company and has been pushing for changes, as well just to add to another thing going on.
