Wednesday's Headlines: Apple Drops Below $2 Trillion
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Baozun (BZUN) +6.4%
Calavo Growers (CVGW) +6.0%
PayPal (PYPL) +4.7%
Zillow (Z) +4.6%
Wynn Resorts (WYNN) +3.8%
Moving Down ⬇️
Tesla, Inc. (TSLA) -12.3%
StoneCo (STNE) -10.2%
Farfetch (FTCH) -6.8%
Pinterest (PINS) -5.8%
Snowflake Inc. (SNOW) -5.6%
Apple Drops Below $2 Trillion 🍎
Shares in Apple dropped more than 3% on Tuesday causing the iPhone maker’s market capitalization to fall under $2 trillion for the first time since May.
Apple first achieved a $2 trillion valuation in August 2020 as the pandemic fueled hardware sales. It also briefly reached a $3 trillion valuation in January 2022.
Apple faced some short-term headwinds during the holiday season when COVID-19 restrictions in China slowed the production of the iPhone 14 Pro. There have also been rumors Apple told suppliers to make fewer components for many of its most popular products including AirPods, the Apple Watch, and MacBook laptops. Understandably, this has left investors nervous — not to mention rising interest rates that may curb discretionary spending.
While Apple and Microsoft were the stronger of the Big Tech players during 2022, the two still gave up more than the S&P 500 index. Apple and Microsoft fell more than 27% in 2022 while the S&P declined by 18%.
Shopify Launches New Product for Big Retailers 🛍️
Shopify is making a move for big retailers, with the Canadian e-commerce platform launching a new service entitled Commerce Components. The launch will allow large merchants who already operate their own e-commerce store to pick and choose tools and services from Shopify’s arsenal to integrate into their own platforms.
The company has already signed up toy-maker Mattel to the new service, with eyes on onboarding its other large clients like Coty, Glossier, and Staples. It will allow them to customize the service specifically to their needs, essentially outsourcing back-end services like checkout or inventory management to Shopify.
Shopify President Harley Finkelstein stated:
"Commerce Components is fundamentally for a new segment of the market that has historically been underserved... we think this give us a new market to go into… If you have to build it yourself, which a lot of big retailers had to, you end up running your own tech company as opposed to making the product”.
Shares of Shopify were up 3% yesterday to kick off the year and are in the green pre-market this morning.
Rivian Barely Misses Production Targets for Year ⚡
Rivian has announced that it just missed its projected production target for 2022. The electric vehicle (EV) maker said it produced 24,337 vehicles at its Illinois plant last year and delivered more than 20,000.
In the summer, the company halved its original production forecast of 50,000, citing supply chain distribution issues that have hampered other EV makers. Tesla announced on Monday that it too had missed its targets, sending shares down 12% on Tuesday and dragging down other automakers.
Last month, Rivian announced that it was pulling out of a joint venture with Mercedes-Benz to produce electric vans in order to focus on becoming cash flow positive. The company has also been forced to push back production on its R2 vehicle until 2026.
Rivian’s stock has collapsed since its much-hyped IPO in November 2021. A potentially lucrative contract with Amazon to provide delivery vans had suggested that Rivian would be a safer play in the burgeoning electric vehicle space. However, a series of setbacks and challenging macroeconomic conditions have seen the value of the company plummet from over $100 billion to just $15 billion.
Shares of Rivian are slightly up in pre-market trading after falling more than 6% on Tuesday — likely driven by Tesla’s weak numbers.