Bloomberg Tech Markets Whipsaw on Tariff Uncertainty, Apple Might Hike Prices
Apr 7, 2025
Angelo Zeno, VP and Senior Equity Analyst at CFRA Research, dives into the tumultuous waters of the tech market shaped by tariff uncertainties. He discusses how leading tech firms like Apple and Tesla navigate these challenges and their potential pricing strategies. The conversation sheds light on the semiconductor market's volatility and its impact on investor confidence. Additionally, the implications of the ongoing U.S.-China trade tensions, particularly for companies like TikTok, reveal the complex landscape for IPOs and market stability.
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Market Turmoil from Tariffs
- US stocks are whipsawing due to President Trump's tariffs, causing uncertainty among investors.
- Tech stocks, especially the 'Magnificent Seven', are heavily affected due to their international revenue exposure.
Apple's Tariff Challenges
- Apple faces significant tariff-related risks due to its overseas manufacturing, especially in China and Vietnam.
- Uncertainty surrounds Apple's earnings potential, pricing strategies, and demand in this environment.
Apple's Toughest Test
- Apple faces its toughest test in two decades due to tariffs and iPhone production in China.
- They might adjust their business model, possibly by raising iPhone prices or right-sizing their model.