Monday’s Headlines: Apple Seeks to Rescue Production
Here were the biggest movers in the MyWallSt shortlist on Friday:
Moving Up ⬆️
BlackLine (BL) +9.2%
Core & Main (CNM) +7.6%
American Tower (AMT) +4.7%
Nautilus (NLS) +4.7%
CrowdStrike (CRWD) +4.3%
Moving Down ⬇️
Upstart Holdings (UPST) -13.3%
Farfetch (FTCH) -9.6%
Shopify (SHOP) -7.0%
Pure Storage (PSTG) -6.9%
Tesla Motors (TSLA) -6.4%
1. Apple (AAPL) is reportedly looking to reduce its reliance on its Chinese production line with the country’s strict stance on COVID-19 currently proving extremely costly for the Cupertino-based firm. It’s estimated that over 90% of Apple’s products are currently manufactured in China, so production slowdowns as seen in recent months could have a devastating impact on inventory. Apple already warned in April that a resurgence of lockdowns could result in as much as an $8 billion sales hit for the current quarter. With this in mind, countries such as India and Vietnam — nations already producing small amounts of Apple products — are being considered for heavy investment with a view to decentralizing production away from China. You can find out more about this story by clicking here.
2. Following on from the news that dating app creator Match Group (MTCH) had commenced legal action against Google (GOOG) earlier this month, it has been revealed that the Big Tech firm will temporarily allow Match to continue offering its users a choice in payment systems. Google had threatened to block downloads of many of Match’s apps starting June 1 unless they operated solely using Google’s proprietary payment system and sharing revenue accordingly. Match claims that its users prefer its own native payment system, citing its installment plans and bank transfers as extremely popular — two features that Google’s system doesn’t currently provide. As part of the temporary agreement between the two firms, Match will place up to $40 million in an escrow account instead of paying Google directly for transactions occurring outside of its payment system. The trial between the two is expected to commence in April 2023. Read more here.
3. Netflix (NFLX) has settled on a $59 million payment to the Italian government following a longstanding tax dispute. The streaming company had been under investigation by authorities for potential tax evasion between the years of 2015 and 2019 in the European country. Prosecutors believed that Netflix should have been paying taxes in the country due to the fact that it relied on digital infrastructure there to stream content to its over two million Italian customers. In conjunction with the payment settlement, Netflix has also opened a physical office in Rome and hired more than 40 employees. A spokesperson for the company stated that “we have maintained constant dialogue and cooperation with the Italian authorities and continue to believe that we have acted in full compliance with Italian and international rules.” Find out more on the story here.
Get this week’s full earnings calendar here.