Besides underperforming this year, mega-cap giants Apple (AAPL) and Tesla (TSLA) are getting negative media attention. Fortunately, the news is noise that does not fundamentally change their prospects.
Epic Games, which made the game title Fortnight, reported that Apple banned (terminated) its developer account. This stops Fortnight’s plans from releasing its third-party app store on Apple’s iOS in the European Union. Epic said that the action violates the Digital Markets Act (“DMA”).
Epic lost nine out of 10 counts in its suit against Apple. Its decision not to pay Apple the fees will likely permanently damage Epic Games’ future.
In Germany, arson at Tesla’s Gigafactory plant will halt EV production. The plant produces 1,000 Tesla vehicles and employs around 12,000 people. A closure of at least five days would result in at least $100 million in revenue losses.
In the retail sector, Nordstrom (JWN) is the stock to avoid. The company posted a weak quarter. Similarly, avoid Foot Locker (FL) stock. The company pushed back its 8.5% to 9% operating margin target by an unacceptable two years, to 2028. Abercrombie & Fitch (ANF) is, however, the stock to watch. The firm posted a non-GAAP Q4 EPS of $2.97. Revenue grew by an impressive 21.0% to $1.5 billion as comparable sales rose by 16%.
Although ANF stock dipped on profit-taking yesterday, it will move higher through this quarter.
