It's a big week for tech earnings. Apple, Amazon and Alphabet report on Thursday after the bell. Angelo Zino, Senior Equity Analyst at CFRA and John Petrides, Managing Director & Portfolio Manager at Point View Wealth Management join The Long and The Short to discuss.
According to the Wall Street Journal, Apple will cut production of the iPhone X after weak demand. Zino says its safe to say that it could impact next quarter's earnings report. Apple's production cuts are usually 30%-50%, but it seems a bit extreme this year. He's warning investors to brace for a top-line miss on its next earnings report. However, Apple won't lower its prices anytime soon. Zino says it will always lean towards selling at a higher price because of the quality it produces.
Plus, the Dow Jones slid triple digits on Tuesday. Petrides says some pullback is healthy, especially when the market is having one of the best starts of the year to date. One of the reasons we're seeing this drop is that Apple is 4% of the S&P 500. When it isn't performing at its highest it will have a trickle-down impact on the rest of the index.
The Biden administration announced the first of many coming federal investments in computer chip production, saying Monday that it would provide $35 million for BAE Systems to increase production at a New Hampshire factory making chips for military aircraft, including F-15 and F-35 jets.
English Wikipedia raked in more than 84 billion views this year, according to numbers released Tuesday by the Wikimedia Foundation, the non-profit behind the free, publicly edited online encyclopedia. And the most popular article was about ChatGPT (yes, the AI chatbot that’s seemingly everywhere today).
