GBH's Daniel Ives sees "minimal financial impact" on Apple and the FANG.
From a note to clients that landed in my inbox Saturday:
In the near-term this launches a “worrywart” period for the Street around what the retaliation and actions from China will look like and ultimately how this could negatively impact US tech names in particular.
To this point, we strongly believe this ultimately will have minimal financial impact to Apple, FANG, and other tech names (Intel) despite retaliation worries in our opinion.
For Cook & Co given the tightly woven integration between Apple and Foxconn in China, we believe there is minimal risk to this relationship, cost increases, and backlash to Apple selling its iPhone devices within China (domestic competition remains a lingering worry), which is a key market opportunity for Apple over the coming years.
We continue to strongly believe that given the primarily services nature of traditional FANG names and very internationally distributed from a revenue perspective, that Facebook, Amazon, Netflix, and Google/Alphabet are “primarily insulated” from tariff worries and a potential retaliatory trade war with China.
My take: Color me a worrywart. (With kudos to Ives for spelling worrywart correctly. I had to look it up.)