Bay Area Stocks Hit Hard by Trump's Tariffs
Information Technology
AI summaryDisplay highlights
- Bay Area companies see stock values drop by nearly 14% post-Trump's tariffs
- Apple's stocks fall by 23%, losing top spot to Microsoft
- Tech companies, including Tesla, hit hard by market slides and tariffs
- Analysts draw parallels to past economic shocks amid $5.8 trillion market losses
- Trump maintains tariffs despite warnings of consumer impact and recession risk
360 summary
- Apple's stock drop of 23% was the most significant among S&P 100 companies, leading to Microsoft overtaking as the world's most valuable public company.
- Tech companies in Silicon Valley have been particularly vulnerable to market slides due to the threat and realization of tariffs against China, where many electronics are produced.
- Elon Musk's Tesla experienced a share price decrease of over 20% in the past week, impacting his personal wealth as the company's largest shareholder.
sfchronicle.com
- Experts suggest that Apple's shift of production to the U.S. would be a lengthy and costly process, potentially taking years and costing billions.
- Bank of America Securities analyst Wamsi Mohan believes that while Apple could assemble iPhones in the U.S., most sub-assemblies would still be manufactured elsewhere and imported to the U.S., due to the complexity and cost of moving the entire supply chain.
- Despite the challenges posed by tariffs, Mohan remains optimistic about Apple's future performance, citing stable cash flows, earnings resiliency, and the positive impact of AI on edge devices.
Business Insider- Apple's stock has a Moderate Buy consensus rating on Wall Street, with analysts predicting a 22.4% upside potential despite the recent stock drop due to tariffs.
- Amazon's stock has declined by about 16% this year, primarily attributed to concerns over the impact of tariffs on the e-commerce giant's operations, especially with many sellers sourcing goods from China.
- Analysts remain optimistic about Amazon's long-term growth potential, citing its strong network, e-commerce leadership, AI-driven advancements in AWS, and the expanding advertising business, despite the short-term challenges posed by tariffs.
Business Insider- Sebastian believes Amazon's diversified business and higher-margin revenue streams from AWS, 3P Marketplace, advertising, and Prime subscriptions can protect revenue and margins.
- Revenue growth expectations for online stores, AWS, and advertising are 5.6%, 16.9%, and 15.9% respectively, contributing to revenue protection.
- The Strong Buy consensus rating for Amazon stock, with an average price target implying about 42% upside potential, reflects investor confidence in the company's revenue protection strategies.
Business Insider- Partners view Microsoft as the best-equipped vendor to withstand the current macro environment, given its business lines like productivity and security.
- Performance in the March quarter was strong, with partners meeting or surpassing expectations due to accelerating Azure growth driven by AI.
- Wall Street has a Strong Buy consensus rating on MSFT stock, with an average price target implying about 30% upside potential.
Business Insider
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