Apple Becomes Most Shorted Stock on Wall Street

Discussion in 'HardForum Tech News' started by AlphaAtlas, Sep 11, 2018.

  1. AlphaAtlas

    AlphaAtlas [H]ard|Gawd Staff Member

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    Ahead of tomorrow's product launches, AFR reports that Apple has become the most shorted stock in the US. Investors already have about $10 billion USD hedged against the company's future, surpassing recent bets against Tesla and Amazon. The shorts come amid a public complaint that tariffs against China could significantly increase Apple's supply costs.

    On Wednesday, Apple is set to unveil three new iPhone models, as well as a new version of its Apple Watch. Shares in the company have risen this year amid hopes that the new line could revitalise sales of the iPhone, which have been flat in recent years. However, doubts over its Chinese manufacturing operations have hung over the company.
     
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  2. Uvaman2

    Uvaman2 2[H]4U

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  3. Mohonri

    Mohonri [H]ardness Supreme

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    So either they're expecting more import tariffs, or they're expecting Apple's new iPhones to bomb?
     
  4. nutzo

    nutzo [H]ardness Supreme

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    Looks like their chickens are finally coming home to roost.
     
  5. Mr. Bluntman

    Mr. Bluntman [H]ardness Supreme

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    Why not have the good fortune of both?
     
  6. TangledThornz

    TangledThornz Gawd

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    I don't have much sympathy for a company that profits from Chinese slave labor.
     
  7. Armenius

    Armenius I Drive Myself to the [H]ospital

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    I hope this doesn't violate the "no politics" rule...



    upload_2018-9-11_13-43-42.png
     
    Last edited: Sep 11, 2018
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  8. kju1

    kju1 2[H]4U

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    I wouldnt count on it...
     
  9. sfsuphysics

    sfsuphysics I don't get it

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  10. Lakados

    Lakados [H]ard|Gawd

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    Every year when Apple releases their new stuff their stock goes down by a few percent, they always get called out for their new stuff being iterative and not innovative enough then sales go nuts and they recover in a few days. Shorting the stock this time of year is a safe bet.
     
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  11. Armenius

    Armenius I Drive Myself to the [H]ospital

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  12. Kdawg

    Kdawg Gawd

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    remember all the haters of the iphone X? said it would bomb at $1000?

    well i hope the sheep keep buying whatever the fuck apple keeps putting out.

    $1000 is the new $1 dollar store item.

    hey, it's not my money. I do own the stock though.
     
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  13. Iching

    Iching [H]ard|Gawd

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    I really like Apple stuff. Great deals to be had on ebay. Used or new. I never buy the latest and greatest.
     
  14. Twisted Kidney

    Twisted Kidney 2[H]4U

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    The tariffs go in two directions, less than 30% of Apple's business is in the USA.

    If they want to reduce those charges they aren't moving more capacity to the US, they're moving it to countries that aren't in 20-some trade wars.

    Let's be honest, though, Apple will raise prices because they can. Tariffs don't hit their absurd profits all that hard.
     
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  15. raz-0

    raz-0 [H]ardness Supreme

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    I think in general, there is evidence growth will be slim.

    However, if growth is flat and they get tariffs bumped, profit will drop. Short the stock.

    If growth is small and costs increase too much, profit will drop. Short the stock.

    If the iphone Xs is boring as shit and has a drop like the 8 did after being the same phone multiple years in a row, sales will drop. etc. Short the stock.

    With a rumored price drop on the xs, and the rumored tariff bumps, there are a lot more ways for apple to become less attracive to investors. Which will initiate a sell off if even just briefly.
     
  16. PantherBlitz

    PantherBlitz Limp Gawd

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    Agreed. Nobody would notice If absorbing the costs of the tariffs means a 10% lower profit for them. The effects won't even be exactly proportional since tariffs have a 0% effect on app store profits.
     
  17. sfsuphysics

    sfsuphysics I don't get it

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    Remember when all us 'Mericans used to laugh at Europe and England with their V.A.T. added to pretty much everything? Now coming to a product near you!

    End result as mentioned above the US accounts for 30% of business, so 70% of the business isn't imposing ridiculous ass "buy 'merican" taxes, net result they still make their phones in China, people in the US pay more, but like always most of the customers will have the actual cost hidden in whatever cell plan they agree to for the next 2 years.
     
  18. psyclist

    psyclist Gawd

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    Man that dummy living at 1600 Pennsylvania Ave. cant see what all these trade wars hes started, are doing to America...in one word Isolate...The world will look elsewhere to do business, he probably shouldnt have picked a fight with every other country on the planet. Huge backfire inbound, its gonna get rough for the 'muricans. I feel bad for everyone there, prices jumping on everything
     
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  19. wizzi01

    wizzi01 2[H]4U

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    Please
     
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  20. Brahmzy

    Brahmzy [H]ardness Supreme

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    ^^ Clueless
     
    Last edited: Sep 12, 2018
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  21. filip

    filip [H]ard|Gawd

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    "trade wars" lol. fight lol. It's only tariffs, the EU is the tariff king why cant America get a piece of that pie?

    Edit: Dam just read an article, you know who is the saddest over these tariffs? Big companies like apple, they can no longer make huge profit margins on phones and other goods, OH NO! we need to stop the tariffs the big companies are not happy. /s
     
    Last edited: Sep 11, 2018
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  22. Uvaman2

    Uvaman2 2[H]4U

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    Should have been income taxes on all income (US and international).. not tariffs.
    I have yet to find a list of all these crazy tarffis imposed on the US.. do you have some reputable links?
    Stuff i've found in quora was very low numbers... But i don't know what the hell is quora so I ain't counting that as reputable.
     
  23. Maxx

    Maxx [H]ard|Gawd

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    Trade war. Trade war never changes.
     
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  24. filip

    filip [H]ard|Gawd

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    Here is a link to the list of high tariffs that EU imposes on USA. I mean 25% is pretty high, maybe it is to low and they should go off our tax system 37% max tariffs. /s
    IDK though I don't own a company that exports or imports.

    my whole point was high (25%) tariffs are in, and that the only people that don't want them are big companies. These very companies are trying to sway public opinion for their own profits, I would not trust a big company with my well being or in the matter that they are actually choosing something that helps the public over their profit margins.
     
  25. singe_101

    singe_101 2[H]4U

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    Berkshire Hathaway bought 12.4 million Apple shares in the second quarter after 75 million earlier this year. I'll trust their judgment.
     
  26. Dillirium

    Dillirium Limp Gawd

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    I see what you did there :)
     
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  27. sfsuphysics

    sfsuphysics I don't get it

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    Well I wouldn't say the ONLY people, I'm sure there are plenty of people who'd rather not pay more for goods.. .on everything imported. We as a country have gone down this road where our manufacturing is almost exclusively done overseas, and it has kept the prices on these goods reduced as a result (seriously buy a tshirt that is 100% made in the US and compare that to one made overseas), now you absolutely can argue that those jobs are more beneficial here... and perhaps you'd be right on some account, but how is it going to feel when those jobs are STILL not over here, and things are more expensive? That's getting double fucked over. Plus to take the EU bit a little further, what if what you want ONLY has an imported version of it? Welp you have to pay a premium because you want that "quality" widget from the US.
     
  28. filip

    filip [H]ard|Gawd

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    Your right man, but i already get fucked over so much ( taxes, social security, medicare, property tax etc...) whats one more?
    The jobs are coming to the US though, that new fox-con plant coming Wisconsin is nice, there are several other examples (yeah its a few but if it follows more will come here) Time will tell.
     
  29. psyclist

    psyclist Gawd

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    Hey, great argument fellas! Watch and see as businesses looks elsewhere for financial stability and calmer leaders. Big business takes a long time to maneuver, so it prefers to root itself in stable countries with calm and thoughtful leaders. 45 also made the fatal flaw of picking too many fights at once. The rest of the world can now just let him sit on his tariff war platform, while its chips away at everyone's economy , it'll bring no benefit to the global market, sand in the gears of the global economy. He is going to bring everyone down...but maybe that was the plan all along, burn it to the ground...Hopefully America will see sooner, rather than later the damage hes done, November hopefully is that turning point.
     
  30. wizzi01

    wizzi01 2[H]4U

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    Lol your first line was "Man that dummy living at 1600 Pennsylvania Ave" talk about a good argument. Like I said before, please.
     
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  31. BB Gun

    BB Gun [H]ard|Gawd

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    who here fighting tariffs due to their impact on big business was also FOR the tax cut on corporate rates?

    Apple benefitted from one and is being "hurt" (LOL!) by the other. I'm betting the tariffs have a much smaller effect than the reduction in corp rate.

    The shorting is (IMO) due to the lackluster buzz and low expectations of their product line.

    BB
     
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  32. N4CR

    N4CR 2[H]4U

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    Good point but it doesn't help them because they do their taxes offshore like any other smart business. So if they did it by the book, yes it would.
     
  33. Uvaman2

    Uvaman2 2[H]4U

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    I take it ours are a copy of these against them? If it is, they why do other countries feel the need to escalate more? Something weird going on, and the truth is not what comes out of the White House .. that i know. This war, is one we will lose.. when my shopping cart is filled with made in China and fruits from everywhere else but here... We can sustain our selves? Really? .. There is an international air of confidence that we are screwed.. its difficult to glean of so much propaganda, but i think its there... I think other countries just don't want the wounded beast to bite too much while being put down.
    In typical US corporate bullshit, tariff's are just a mantra to raise prices, so there is that... I don't know its just weirdness.. im not sure the thruth is anywere to be seen.. even a shadow.
     
  34. Mohonri

    Mohonri [H]ardness Supreme

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    The US's high corporate income tax rates have historically been a reason why companies like Apple have left tens (or hundreds!) of billions of dollars offshore. When the tax reform bill was passed and the corporate tax rate dropped to 21%, a lot of companies, Apple included, announced that they would repatriate hundreds of billions of dollars of profit that had just been sitting elsewhere. Apple alone announced $350 Billion, which comes out to a tax bill in the neighborhood of $75 Billion. That's a lot better (for the US gov't) than the $0 they were getting before.
     
  35. Uvaman2

    Uvaman2 2[H]4U

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    Effective tax rate for great many companies is not anywhere near 37%.
     
  36. psyclist

    psyclist Gawd

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    Sorry I meant asshole, dummy wasnt the right word. Thanks for pointing that out!
     
  37. Mohonri

    Mohonri [H]ardness Supreme

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    Care to elaborate?
     
  38. Brahmzy

    Brahmzy [H]ardness Supreme

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    Did you just call yourself an asshole?
    Cool, we were all thinking it, you saved us a all warning.. :)
    Save your politics for your DU profile.
     
  39. singe_101

    singe_101 2[H]4U

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    Does +1.74% hurt those who shorted or if they have puts?
     
  40. KamelRed

    KamelRed [H]ard|Gawd

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