“With all eyes on them, Apple and the FANG largest tech stocks [Facebook, Amazon, Netflix, Google] staged a mild rally early Tuesday, each of them rising at least nearly 1%,” Michael Krey reports for Investor’s Business Daily.
“The big techs had all fallen since the surprise election of Donald Trump as the next president. Trump has championed coal, U.S. manufacturing, a get-tough policy on immigration and other issues that don’t favor Silicon Valley, a region that heavily favored his opponent, Hillary Clinton,” Krey reports. “Trump also has specifically criticized Apple and FANG company Amazon.com.”
“At the same time, the banking, drug, defense and materials sectors had all seen a lift from the Trump win, but those sectors in general were down Tuesday,” Krey reports. “Trade limits that Trump might impost could hurt tech companies, and any cutback on the H-1B visa program also would hurt, Daniel Morgan, an analyst with Synovus Trust, said in an email to clients late Monday. Major tech companies rely on the H1-B program to hire skilled workers whom they say they can’t find in the U.S., and have long sought to expand that program. In 2016, the U.S. received 236,000 applications for H1-B visas that now are capped at 65,000. Morgan, however, pointed out that some Trump campaign promises, including lower tax rates and lower taxes on cash repatriated from overseas would benefit tech companies.”
“Also, while Apple and the FANG gang have fallen since the election, all were in a downtrend at least a week before the election, when most polls said Clinton would win,” Krey reports. “(IBD’s own poll had Trump slightly ahead.)”
Read more in the full article here.
MacDailyNews Take: It’s nice to see AAPL in the green!
the trump crash hasn’t even started
One of Apple’s strengths is the diversity of people and ideas that it brings under its umbrella. The products do not suffer from the monoculture that Samsung operates under and I believe that diversity is one of the powerhouses of not only Apple but the US of A. I also think that banning immigration is just a way of promoting the WASP male culture and will ultimately weaken the US.
The RepubliCONs have been wanting the Tax Holiday for corporations evading taxes and Trump may well give them their wish. If so, these companies have a huge pile of cash they want to bring home.
Even at a lower rate the amount of taxes collected would be a windfall and might be a source of funding for the Infrastructure spending Trump has claimed he wants.
Of all the major tech stocks, which stock went up the least? Apple, of course. Investors poured into Amazon like there was no tomorrow. Amazon makes Apple seems so overpriced it’s almost unbelievable. I’m willing to bet Apple will again disappoint shareholders the most now that Trump is heading for presidential office. All the news articles point to Apple being the biggest loser of them all. That’s really not something a long-term Apple shareholder or potential Apple investor wants to hear.
Apple is always so vulnerable to all sorts of headwinds and I blame Tim Cook for putting Apple in that precarious position. Apple seems to be the only major tech company unable to figure out how to boost revenue from side businesses. All of its core product sales are declining and Apple has no cloud services business to pull it up like other tech companies have.
Even though Trump and Bezos have been at odds in the past, now even Amazon looks like it will fare better than Apple and that’s really fortunate for Amazon shareholders. It’s bad enough Apple backed the losing presidential candidate and Apple shareholders will now have to pay for that poor decision as Trump gets his revenge on Apple.
” … each of them rising at least nearly 1%”
That’s a strange turn of phrase in itself, but according to that article, Netfilx only went up by 0.19% yesterday, so it’s a bit of a stretch to refer to that gain as nearly 1%.