Today is Wednesday, October 13, 2021
Apple Slashes iPhone Targets Due to Chip Shortage, Report Says
Shares of Apple (Nasdaq: AAPL) dropped 1.28% in after-hours trading on Tuesday due to a Bloomberg report that suggested the tech giant will likely slash its iPhone 13 targets for 2021 by 10 million due to the global semiconductor chip shortage.
Details: The report stated that Broadcom (Nasdaq: AVGO) and Texas Instruments (Nasdaq: TXN), two iPhone parts suppliers, were struggling to deliver enough components.
Big Picture: Supply chain issues stemming from the pandemic have resulted in a global chip shortage where demand outweighs supply.
Aspirational: Apple is still hoping to meet its initial goal of 90 million new iPhones shipped for the holidays, but it remains to be seen if this will happen.
Wide Nosedive: Broadcom, Texas Instruments and other suppliers also saw their share prices dip during after-hours trading Tuesday.
Near Future: Also, Apple is hosting an event next week where it is rumored to present new Macs.
Final Thoughts: Tuesday’s dip could present an opportunity to buy into Apple, which has seen its stock price fall over 5% in the past month.
Notable Earnings Today: JP Morgan Chase (NYSE: JPM), Delta Air Lines (NYSE: DAL), BlackRock (NYSE: BLK), First Republic Bank (NYSE: FRC), Infosys (NYSE: INFY).
Notable IPOs Today: Healthcare Triangle (Nasdaq: HCTI), Catalyst Bancorp (Nasdaq: CLST), AvidXchange Holdings (Nasdaq: AVDX), Bone Biologics Corp Common Stock (Nasdaq: BBLG), XORTX Therapeutics Inc. Common Stock (Nasdaq: XRTX), The Very Good Food Company Inc. Common Shares (Nasdaq: VGFC).
Notable Equity Crowdfunding Campaigns Ending Today: Son of a Barista (StartEngine), Dine.Direct (Wefunder), Called Higher Studioes (StartEngine), Octivity Fitness Collective (StartEngine).
Notable Economic Events Today: Consumer price index (8:30 a.m. ET), Core CPI (8:30 a.m. ET), FOMC Minutes (2:00 p.m.).
Chevron is at a Crossroads
Although the stock has performed well as of late, investors should consider recent events before deciding to back Chevron (NYSE: CVX).
Numbers: Shares of Chevron are up over 26% in 2021. In the past month, the stock is up 9%. Simply put, it's been a reliably strong stock in the past few weeks.
Green vs. Green: Chevron CEO Mike Wirth recently said that the company would rather pay more dividends back to shareholders than invest in green energy projects. That's good for investors but bad for the environment.
Acquisition: Last week, Chevon purchased the base oils business from a Finnish biofuel producer. This could help the company as it makes more inroads in the lubricants business.
Final Thoughts: Chevron, which recently announced pricing terms for its note tender offers, is at a crossroads. Can the stock survive the global push for green energy?
IMF Addresses Cryptocurrency Opportunities, Challenges
The cryptocurrency ecosystem offers a new world of opportunities and challenges, according to a Global Financial Stability Report by the International Monetary Fund (IMF) on Tuesday.
Risks: The report pointed out several challenges stemming from cryptocurrencies, including the lack of operational or cyber resilience with crypto asset providers, limited global standards that have created data gaps for regulators, and an increase in cryptos in emerging markets that might accelerate dollarization risks.
Regulations: There are also several actional policy recommendations from the report so that regulators can protect investors from potential crypto scams.
Beyond Crypto: The report also pointed to economic challenges such as the pandemic and climate change.
Forecast: On Tuesday, the IMF also reduced its 2021 U.S. growth forecast from 7% to 6%.
Final Thoughts: The fact that the IMF did not call to ban crypto is a positive sign.
Trends to Watch
Next Logical Step: Coinbase is launching a marketplace for NFTs (CNBC)
Surprise Growth: China Sept export growth unexpectedly picks up, imports slow (Reuters)
Welcome Back, Jack: Billionaire Alibaba founder Jack Ma reappears in Hong Kong (Reuters)
New Team: Stripe Is Hiring a Crypto Team 3 Years After Ending Bitcoin Support (CoinDesk)
Thank you for reading! Please share this with a friend.