Apple shares drop on Watch and iPhone 8 concerns
Apple’s (AAPL) stock is under pressure on reports that the tech giant is having some issues with its LTE Watch and demand for the iPhone 8. China’s government has reportedly cut LTE access to the Apple Watch Series 3 over government security concerns. According to the Wall Street Journal, the cellular service was available exclusively to qualified China Unicom customers when the watch went on sale September 22, but new subscriptions after September 28 were cut off without explanation. In a separate report, Reuters, citing Taiwan’s Economic Times, warns the tech giant is cutting production of its iPhone 8. Apple shares were last trading down 2.4% at 155.92 a share.
PayPal earnings: What to watch
PayPal (PYPL) is scheduled to report earnings after the bell this afternoon, and Wall Street’s expecting a strong quarter from the mobile payments company. Analysts are looking for earnings per share of 43 cents on revenue of $3.18 billion and will be listening on the 3Q earnings call for any comments on its Pay with Venmo rollout. PayPal shares have jumped about 69% so far this year.
Nike drops on downgrade by Goldman Sachs
Goldman Sachs cut its rating on Nike (NKE) to hold from buy while reaffirming its $54 price target. Analyst Lindsay Drucker Mann is concerned about “persistent excess inventory sitting at Nike’s brick-and-mortar retail partners” and weakening demand in Asia. Nike shares are down 9.4% over the past three months.
eBay disappoints investors with current-quarter guidance
eBay (EBAY) reported adjusted earnings of 48 cents per share for its latest quarter, in line with expectations, on revenue of $2.41 billion. But investors are concerned about the e-commerce giant’s current quarter. eBay disappointed Wall Street after issuing current-quarter adjusted profit forecast below analysts’ estimates, as it spends more on marketing and revamping its website. eBay shares were last trading down 2.7% at $36.93 a share.