Apple Stock News: Large Impact After Apple is Downgraded

In last week’s Apple stock news, there was a large focus on Apple designer Jony Ive leaving. He set out to set up his own company LoveFrom with Apple as a client. Jony Ive was a long term employee with Apple and had a large impact on all of their products from IPod, IPhone to Mac. There was also a positive outlook on Apple because of the relaxed regulations with China. The agreement from President Xi Jinping and Trump increased the stock of 3.12%.

This week there is a switch in perspective on Apples stock outlook. From July 8 to July 9 the stock dropped from $208 to $198. This is likely due to a downgrade by Rosenblatt to ‘sell’. Rosenblatt securities has made statements saying that they believe Apple will face fundamental deterioration over the next 6-12 months. However, they are still maintaining the 12-month $150 price target. This is in part due to Jony Ive leaving the company, and the new IPhone sales are expected to slow in the second half of 2019.

Recently, it seems Apple has been working to ensure their customers feel safe and have privacy. The walkie-talkie feature on the watch created a vulnerability to people because a bug was found that allowed people to listen to conversations. Apple quickly disabled this feature in order to fix it, and this proves the dedication and intent to stay loyal and a allow privacy.

Source: CNBC.com

Apple also announced this week that executives will be attending the Sun Valley conference in Idaho with large corporate leaders. This networking session is where many large deals have taken place including Disney’s $19 billion ABC/Capital Cities buyout The conference is an opportunity to communicate and may be an opportunity for growth. Apple intends to focus on their new services of Apple Arcade and Apple TV+. The new service will set them apart from competitors and we will see this week if any large deals take place.

Source: Roger Fingas Appleinsider.com

All of these news releases have a large impact on the S&P because of the size of Apple. Apple has a trillion-dollar market cap and has a major influence of leading indexes and ETFs. Apple is 3.37% of the S&P 500 and substantial amount of decisions are made based on their success. Apple determined the technology sector as noted “The S&P 500 Technology sector has never outperformed the S&P 500 when AAPL has plummeted more than 30%.” — Bank of America Merrill Lynch.

Apple Stock News: Apple regarded as the big winner for trade war truce

In last week’s apple stock news, we mainly focused on Apple’s dive into the self-driving space, its partnership with Shopify to expand its iMessage Business Chat, and Apple’s broadening presence in the budding tech hub of Seattle.

In the past week Apple’s stock price (Nasdaq: AAPL) saw a sudden increase of 3.12% at the beginning of July 1st induced by the agreement U.S. President Donald Trump and Chinese President Xi Jinping reached at the G20 meeting in Osaka Japan over the weekend. The price decreased slightly later on that day and remained stable in the following days. 

This week we focus on the latest update of Trump-Xi trade war, famed designer Jony Ive’s leave from Apple and Apple Music’s announcement to hold Up Next Live this summer.

Famed Apple Designer Jony Ive is leaving Apple, collaboration will continue

Jony Ive announced that he is leaving Apple and is about to set up his new company in creative business named LoveForm, with Apple as the first client. Jony Ive has worked as Apple’s chief design officer for nearly 30 years, his impact on the company can be seen from classical individual device such as iPod, iPhone and Mac to the “Spaceship” Apple Park. 

Apple’ stock price fell 1.17% on 28 June, after the news was released on previous day.

(Source: NOAH BERGER via Getty Images)

An article was published on June 30 in the Wall Street Journal, implying the reason why Jony Ive is leaving Apple is that he was disappointed by Tim Cook’s lack of interest in design. Tim Cook fired back at the article, calling it “absurd” and “distorts relationships, decisions and events”.

U.S. and China agreed to make concessions on both sides of the trade war

During the G20 meetings, Trump relaxed his ban on US companies doing business with Chinese high-tech giant Huawei, the leading company in the emerging 5G market. Besides, Trump also agreed not to add new tariffs on Chinese exports, but the earlier 25 percent duty will remain. Correspondingly, Xi promised that China would import more agricultural goods from the U.S..

(Source: WorldFinance.com)

Induced by the news, Apple’s stock price saw an apparent increase on July 1st after the weekend. According to Wedbush analyst Daniel Ives, Apple is the big winner of the trade war truce since it has become the poster child of American companies faced with the trade war. He also thought Apple would set aside its plan to move its production out of China as long as the trade negotiations are on track.

Apple Music brings Up Next Live to global cities this summer

On July 1st, Apple announced to hold Up Next Live this summer, inviting Apple Music Up Next artists including “Bad Bunny, Daniel Caesar, Khalid, Ashley McBryde, King Princess, Lewis Capaldi and Jessie Reyez”. These 7 artists will perform after-hour concerts at 7 different Apple Store locations all over the world.

(Source: Apple Newsroom)