You can have Apple, the star of the day on the stock market, as the main client and end up at the bottom of the Cac 40 table

You can have Apple, the star of the day on the stock market, as the main client and end up at the bottom of the Cac 40 table

Even today, the stock market crash of a “tech” giant came to play killjoy. Amazon, in the Top 5 of global capitalizations, plummets more than 10% on Wall Street after the publication of quarterly accounts that show that its “e-commerce” division is losing money again, where its cloud service continues being greatly benefited. Amazon’s results at the end of September were well below consensus expectations. But, what most surprises investors, “This is estimated holiday revenue of around $140-148 billion, versus a forecast of around $155 billion” anticipated by the Stock Exchange, explains Ipek Ozkardeskaya, market analyst at Swissquote. Due to inflation, Amazon Vice President and CFO Brian Olsavsky said during the conference call with the financial community that“During the third quarter, we saw slower sales growth in many of our businesses, as well as higher currency headwinds, and we expect these impacts to persist throughout the fourth quarter. »

the bedroom 40 ends at 0.46%, at 6,273.05 points, while the idea of ​​a central bank “pivot” gains ground, reinforced yesterday by ECB statements interpreted as a “dove”, a US GDP figure seen as recessive and before the Fed Monetary Policy Decision on Wednesday. Without the collapse of Amazon, the rise of the Parisian index would have been more marked. It was still up 4% for the week, especially thanks to a 2% gain on Tuesday, following the release of figures showing US house prices fell for a month, the signal, the stock market hopes, that the US Federal Reserve’s monetary tightening is beginning to pay off and perhaps the central bank would not be forced to go much higher by raising interest rates. It should also be noted today, in the same spirit, that the promises of sale in the United States, according to the latest statistics published by the National Association of Realtors, fell by 10% in September, penalizing the rise in interest rates in the sector. The index is at its lowest level since June 2010 if we exclude the April 2020 outlier.

“A relatively safe port in the middle of a storm”

Of the five Gafam (Google, Apple, Facebook, Amazon and Microsoft) that released their figures at the end of September, only Apple did not collapse on the stock market. While Alphabet fell 9% after its publication, Microsoft fell 8%, Meta sank 25%, and Amazon is today well below the $1 billion capitalization threshold (after failing to become the third company in 2021 to cross the 2,000 billion dollar mark), shares of the Apple brand gained 7% (+5% during the week). This insolent outperformance allows US indices – Apple is the only US stock that is present in the Dow Jones, S&P 500 and Nasdaq Composite – to rise by around 1.5%.

However, the iPhone manufacturer (which has published the annual results of its staggered fiscal year) is not exempt from the economic difficulties of the moment: inflation that eats away at purchasing power, production complicated by the political zero of Covid in China and above all – Much was said about this during the management conference with financial analysts: the rise in the dollar that increases the price of iPhones (more than 50% of Apple’s sales) in Europe and in emerging countries.

Apple’s growth is slowing (+8% after +31% on the previous year) despite the fact that its profits and its 2021-2022 turnover have reached record levels (almost 100,000 million dollars in profits for a business turnover of almost 400,000 million). iPhone sales increased (+10% almost year-on-year) but at a slower pace than analysts’ expectations, who also expected something better for the services division in which Apple TV and the App Store are housed in particular. However, compared to other Gafam, Apple “looks like a relatively safe port in the middle of a storm”, reacts, in a note, Shannon Cross, financial analyst at Credit Suisse. Already, unlike Google, Facebook or even Snap, the Cupertino giant, the world’s largest listed company with a capitalization of more than $2,000, is not dependent on an ad market that has become wary of the prospects of a global recession. .

Apple, 20% of STMicroelectronics sales

In mid-October, just two weeks after the launch of the iPhone 14 Plus, reports in the specialized press indicated that Apple had reduced the production of its new premium smartphone. In fact, the low demand is for lower-end models, David Wong, head of technology research at Nomura, said in a note today. The bank’s supply chain monitoring team observes a “significant reduction” production in October. “Given global inflation, rising interest rates and continued macroeconomic uncertaintyDavid Wong writes, we are not surprised to see the weakening of the demand in the diffusion of technology”which will materialize, according to him, by a stock market low point for the securities of the sector “In the coming months.”

On the Paris Stock Exchange, the chipmaker STMicroelectronics, which has Apple as its biggest customer (just over 20% of its revenue in 2021, up from 24% in 2020, according to FactSet), is still nearly 7% short of the Cac 40 today, having thrown so many Yesterday . On Thursday morning, publishing its quarterly accounts, the Franco-Italian company warned of expecting a slowdown in sales growth in the fourth quarter. Consumers, forced to arbitrate their expenses, privilege essential products to the detriment of electronics. STMicroelectronics stock price shows an 84% correlation with Apple over the past three months, according to FactSet data.

Among the best performances of the Cac 40 today, danone gained almost 3%. The agribusiness giant raised its financial targets for the current year after posting a sharp rise in sales in the third quarter, fueled by price increases.

Sanofi It ends with a rise of 3.2%, after the pharmaceutical group has revised its net profit forecasts for 2022 slightly upwards, after sales in the third quarter supported in particular by flu vaccines.

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