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Apple stock soars After Friday Sink About news from the Department of Justice Extensive antitrust litigation To the company.
Apple stock is It was the biggest decline since August.down more than 4%; Wipes out $113 billion of the tech giant’s value. As of Friday’s market close, the company had recouped a small but significant (by Apple standards) $15 billion.
No wonder investors were spooked by the Justice Department lawsuit.
meanwhile Apple faces antitrust investigation Previously, they were limited to the App Store.new lawsuit It focuses on “nearly every part of Apple’s business”. DA Davidson Managing Director Gil Luria said in an interview with Yahoo Finance on Thursday.
The Justice Department cited not only Apple’s iPhone and Apple Watch businesses, but also the company’s advantages beyond those services, including advertising, news subscriptions, and FaceTime. “Maybe this is considerable drag ” William Kovačić, a law professor at George Washington University, told Bloomberg on Friday.
It’s no surprise that those fears have lessened — at least a little, for now.
Apple is not the only tech company to be investigated by regulators for antitrust violations. Google continues to fight Currently negotiating with the Ministry of Justice regarding subsequent antitrust laws Lost legal battle with Epic Games During December. meta and Amazon It has an ongoing dispute with the Federal Trade Commission over similar concerns. Still, Meta, Amazon, and Google continue to rise in the stock market.
Needless to say, Apple’s legal battles are long-running, so the impact this lawsuit will have on the company’s business won’t be felt right away. Wedbush analysts told Business Insider that the lawsuit could be: Settled within the next 12-18 monthsothers put that timeline in 3 to 5 years. So investors need to shake off the immediate shock from the lawsuit headlines and continue playing the “wait and see” game as the lawsuit continues.
Doug Clinton, managing partner at Deepwater Asset Management, told investors on Yahoo Finance.will eventually ignore this“None of the issues in the lawsuit are likely to result in significant changes that would erode Apple’s dominance in the smartphone market.”
Tesla was out of luck
Members of Apple’s Magnificent Seven Tesla, which shared Thursday’s woes, suffered a different fate on Friday. Tesla stock continued to fall following the news. Production cuts in China. Tesla shares fell another 1.2% on Friday, after falling 1.6% the previous day. Tesla stock falls more than 30% Year to Date — Another sign that the Magnificent Seven may not be all that great, or at the very least, they should probably remove some of their members from the All-Star team.
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