VNormally, stock markets cheer companies that lay off staff. Meta Platforms (META) and Alphabet (GOOG) are examples of firms that slashed staff and then watched their stocks rise.
Ericsson (ERIC) is an exception. The 5G networking gear supplier will cut 1,200 staff in Sweden. The firm faces a slowdown in 5G equipment sales in 2024. Investors who bought Nokia (NOK) or ERIC stock in the last decade realize that 5G did not grow as expected. Both stocks have downside from selling pressure ahead.
Among the Magnificent 7, Apple (AAPL) is becoming a losing stock holding. After the Department of Justice claimed that Apple violated U.S. antitrust law by limiting competition for messaging apps and digital wallets, consumers are suing the firm, too.
Apple faces at least three class action suits. Concurrently, the firm will double down on its efforts to re-establish its supply chain and consumer market growth in China. The firm is reportedly launching the Vision Pro in the country this year.
CEO visited China last week. He was among one of several notable business leaders meeting with China’s President, Xi Jinping.
AAPL stock may continue its downtrend for a while longer.
Last year, the Chinese government banned Apple iPhone use in its offices. The country also reportedly issued new guidelines that block Intel (INTC) and AMD chips in government computers.
Both INTC and AMD stock are attractive chip holdings. Intel is building manufacturing plants in the U.S. AMD is competing aggressively against Nvidia (NVDA) to capture the growing AI server markets.
