My Top 10 Things to See on Friday May 23rd
1. Today, President Trump mentioned on social media that Apple needs to pay a 25% tariff on iPhones produced outside the US. Most iPhones are manufactured in China, although Apple has been shifting more production to India. The iPhone 16 Pro starts at about $1,000, and analysts predict that a model made in the US would be quite pricey. To be honest, Apple is the stock I’m most concerned about right now.
2. Interestingly, Apple has also increased the trade-in value for iPhones in China, which helps customers get more for their old devices. This is happening as Apple faces stiffer competition from Huawei and other local brands, resulting in spikes in demand in the world’s second-largest economy.
3. Wall Street seems poised for a rough opening, influenced by Trump’s comments about Apple and his suggestion of a 50% tariff on the European Union. He indicated that trade discussions with the EU are stalled. On a more positive note, the US and China are reopening trade communication after previously halting high tariffs on each other’s imports this month.
4. Ross Stores saw its stock tumble 13% today after it withdrew its yearly guidance, citing “macroeconomic and geopolitical uncertainties.” While Ross provided reasonable estimates for first-quarter revenue, they also pointed out that consumers are feeling the pressure. In contrast, the rival TJX Companies, known for TJ Maxx, managed to maintain its full-year outlook after a solid first quarter.
5. Deckers Outdoor, the company known for UGG and Hoka, saw its stock drop over 19% this morning despite reporting positive quarterly revenue. They’ve opted not to release full-year guidance due to uncertainty. Their current quarterly outlook also came in below expectations. Analysts are recommending caution with this stock.
6. In a brighter spot, Intuit’s stock jumped nearly 7% this morning after surpassing expectations for quarterly revenue. The company, famous for TurboTax and QuickBooks, posted strong numbers in Credit Karma Business, earning praise from various analysts.
7. Barclays has raised its price target for Ralph Lauren from $260 to $321 per share, recognizing the impressive numbers and the brand’s iconic status. However, the market response was lukewarm, as investors sold off, resulting in a 2.5% drop in stock price.
8. Analysts at Wedbush are optimistic about Tesla, stating that its “dark chapter” appears to be over, increasing their price target from $350 to $500 per share. Many share this sentiment, believing that Elon Musk is back on track with his focus on electric vehicles and robotics.
9. Citi adjusted its neutrality on Salesforce, decreasing its price target from $335 to $310 per share. Analysts are noticing a slowdown in business activity. I mentioned to a club member during our monthly meeting that Salesforce is one stock I worry about. It’s worth noting that ServiceNow is challenging Salesforce by enhancing its customer relationship management platform.
10. Finally, OKTA remains a solid player on Wall Street, with strong demand for its identity protection software. Zscaler also enjoys analyst favor. I have to say, I’m a fan of Cloud Strike as well.
