Site icon MacDailyNews

Apple shares soar on news of U.S. tariff reprieve

Shares of Apple Inc. soared on Tuesday after the U.S. delayed a 10% tariff on certain Chinese imports, including smartphones and notebook computers.

Ryan Vlastelica for Bloomberg:

The stock jumped as much as 5.2%, its biggest one-day percentage gain since July.

According to data compiled by Bloomberg, nearly 20% of Apple’s 2018 revenue was derived from China, with cell phones a dominant part of its overall business.

The 10% tariff had been seen as a major potential headwind. According to Wedbush analyst Daniel Ives, the tariffs would have lowered Apple’s 2020 earnings by 50 to 55 cents a share had they gone into effect. (The consensus is for earnings of $12.76 a share in 2020, per Bloomberg data.)

MacDailyNews Take:

♫ Happy days are here again
The skies above are clear again
So let’s sing a song of cheer again
Happy days are here again ♫

Exit mobile version