BofAML: Apple’s earnings hit from new tariffs is ‘manageable’ so buy the dip

Jesse Pound for CNBC:

Apple’s earnings face a “manageable” hit from the newly proposed tariffs, and Thursday’s sell-off makes the stock an even more attractive buy for investors, Bank of America Merrill Lynch said in a note Friday.

Bank of America estimated that the impact of the tariffs will shake out to a drop of 50 cents to 75 cents per share in annualized earnings for Apple.

“In the broader context of the tailwinds that AAPL has we view this as a relatively small amount over the next several quarters and would use the pullback as an especially attractive opportunity to buy shares of Apple,” the firm said.

MacDailyNews Take: The tariffs are temporary, not permanent; a means to an end.


  1. If you like Apple stock for the long-term, then buy on the dip. Of course, as soon as the tariffs were announced, all the big investors started selling. They hate owning stock in companies that don’t give short-term gains. Why would the average retail investor be dumping Apple stock every time some negative news is mentioned? I’m just annoyed that it’s always Apple getting dishonorable mention when it’s likely a lot of tech companies will be affected by these tariffs. Well, it’s good if Apple is buying back stock on this negative news.

    I just knew Apple’s recent price surge would turn sour, as usual. Such lousy timing. It’s just one thing after another. Now there’s the FTC looking to slap an anti-trust suit on Apple. I’m sure Amazon will come out smelling like a rose while Apple gets whacked. Whatever Apple tries to do comes back and bites them in one way or another. Maybe Apple needs a smarter legal department to steer them clear of these undertakings.

  2. Taqriffs on Apple will be disastrous and Trump, the asshole is responsible.

    In what world does a trade war and attack by the fat ass fascist in the white house3 benefit you or Apple?

    You people are fucked up.

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