This Dow Jones Industrial Average (Degendix: 3DJI) The index rebounded on Monday after the worst week of the index since the epidemic began in March. Instability may be the norm going forward as epidemics continue to grow in the United States. The Dow rose nearly 1.35% at 12:45 p.m.
Intel (Nasdaq: INTC) The stock rose on Monday, though not as much as the Dow, although analysts say there are already risks that the company will face after upgrading the stock on the assumption. In the meantime, Apple (Nasdaq: AAPL) One of the rare grounds for losing ground was the Dow. Late Friday, the company acknowledged that changes to its App Store commission policy could seriously hurt its results.
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Analysts think Intel’s problems are already worth it
A few years ago, chip giant Intel faced no real competition in its key markets. Rival Advanced micro devices (Nasdaq: AMD) Was struggling to compete with second-rate products, and Intel had a monopoly on the lucrative market for server chips.
Intel is still dominant in terms of market share, while its dominance has waned due to renewed AMD and chronic manufacturing delays. Intel’s 10nm manufacturing process is years behind schedule, and the company recently pushed back its 7nm process as well. AMD’s PC and server chips have improved rapidly over the past few years, and its latest Ryson PC chips look like a home run.
As AMD is making a comeback, the graphics chip company NVIDIA ARM Holdings is making a play on the data center with its 40 40 billion acquisition. ARM chips are not common in servers, but NVIDIA will try to replace them.
Intel’s stock has been burned this year as these headwinds have gone iled. The shares are down 25% in 2020, and are currently trading for single digit multiple earnings. While some pessimism is certainly guaranteed, Northland analyst Gus Richard thinks the price of the risks facing Intel is already in stock. Intland’s breakup value is lower than the enterprise value, based on the assumption that Landland on Monday upgraded Intel’s stock from “underperform” to “market performance”.
Shares of Intel were up nearly 0.7% in the broader market on Monday afternoon. It seems that investors are not as sure as Northland that Intel’s problems are already in the share price.
The Apple App Store warns of the impact of the changes
Apple is coming under fire because of its policies regarding the App Store. Apple Plus charges app developers up to 30% of app revenue from app and app content, and requires its own payment system to use. There is no alternative to the App Store on the iPhone and iPad, so most app developers have less choice but to pay Apple Pal tax.
Some big developers are trying to fight back. Epic Games, Creator Fornite, Managed to ban game pal from popular game after Apple moved to the side of payment systems. The move led to lawsuits that could jeopardize Apple’s lucrative App Store setup.
Anti-trust regulators pose another threat. Ally tech giant Alphabet U.S. Anti-trust lawsuits are coming from the Department of Justice, and Apple Paul could sue soon. The European Union is also investigating whether Apple’s App Store and Apple Pay Pay policies hurt competition.
Apple Play acknowledged the risks in its annual 10-K filing with the Securities and Exchange Commission (SEC) on Friday. The company said its operating results would be “physically counterproductive” if it were forced to reduce, eliminate or otherwise reduce the scope of the commission it maintains on sales through the store. That warning did not appear in Apple Pal’s previous annual filing.
Apple Pal stock was down about 0.9% as of Monday afternoon, trailing the broader market by a wide margin. Shares of Tech Giant are still up about 47% to date, but they are down about 20% from their 52-week highs.
