Apple New USB-C Charger Rules
Plus, SGH’s macro uncertainties.
Today is Wednesday, October 5, 2022.
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Apple New USB-C Charger Rules
A new regulation passed on Tuesday in the European Union could have a major impact on Apple (Nasdaq: AAPL) and other mobile technology stocks.
Details: By the fall of 2024, all mobile products in Europe must be equipped to use the USB-C connectors used by Android devices. It’s the first time a government body has endorsed a new standard for mobile chargers.
What It Means: Apple’s chargers are different than Android, which means that Apple will have to make big changes to its chargers. Apple did not release a statement about the news.
Stock Price: Apple’s price on Tuesday wasn’t impacted by the news and went up 2% on Tuesday, but the stock is down 20% this year.
Final Thoughts: When Apple reports earnings in a few weeks, we’ll hear how the company is going to address such a monumental change.
Notable Earnings Today: RPM (NYSE: RPM), Resources Connection (Nasdaq: RGP), Byrna Technologies (Nasdaq: BYRN), Richardson Electronics (Nasdaq: RELL), Helen of Troy (Nasdaq: HELE), Lamb Weston Holdings (NYSE: LW).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: VK Brewing Co. & Eatery (Mainvest).
Notable Economic Events Today: ADP Nonfarm Employment Change (8:15 a.m. ET), Trade Balance / Imports / Exports (8:30 a.m. ET), S&P Global Composite PMI (9:45 a.m. ET), Services PMI (9:45 a.m. ET), ISM Non-Manufacturing PMI / Employment (10:00 a.m. ET), Crude Oil Inventories (10:30 a.m. ET).
SGH’s Macroeconomic Uncertainties
Shares of SMART Global Holdings (Nasdaq: SGH) dropped 3.29% in after-hours trading on Tuesday after the technology company posted mixed financial earnings.
Financials: SMART Global Holdings reported earnings of 80 cents per share, which was better than expected. Its revenue of $438 million was below estimates.
Growth and No Growth: For the full-year, net sales increased by 21%. But in the quarter, net sales dropped 6%.
Quote: "As we enter fiscal 2023, we remain focused on execution as we manage through macroeconomic uncertainties." - CEO Mark Adams.
Final Thoughts: With its stock down 53% this year, SMART Global Holdings hopes that its recent acquisition of Stratus Technologies helps with growth.
Equity Crowdfunding Spotlight: Zeen by Exokinetics
Briefly describe your business. Exokinetics was formed by Hall-of-Fame Inventor Garrett Brown and partners to manufacture a revolutionary new mobility invention for those battling disability and age. Zeen®, ‘The Chair that Gets Up and Goes,’ has just liberated its 100th owner.
What are the terms of the investment for your campaign? The round size is $4M and the round name is Series B. The security is preferred equity and the investment minimum is $1,000. The valuation is $25M. See SeedInvest for details.
What makes your startup special? We believe the Zeen will succeed worldwide: For 17 million souls in just the U.S/ with serious mobility issues, the Zeen is uniquely and irreplaceably valuable, has five issued and pending patents, and is being described by owners as ‘Life Changing.’
Trends to Watch
Chasing Course, Again: Twitter shares surge 22% after Elon Musk revives deal to buy company at original price (CNBC)
Changing of the Guard: Bridgewater Founder Ray Dalio Hands Over Control of Firm (The Wall Street Journal)
Bullish: Barclays Remains Positive on Bitcoin, Sees Miner Core Scientific as ‘Best-In-Class Leverage Play’ (CoinDesk)
Everyone is Going E-Commerce: Iconic Goodwill gets serious with a national online shop for thrifters (NPR)
Major Problems: Credit Suisse Is In Deep Trouble. Contagion Risk Is Low. (Barron’s)
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