From 24/7 Wall St. · Alex Sirois · · 1m
Apple and Alphabet Scared by Blue Wave Election
Election outcome could gut profit streams for Apple and Alphabet.
In brief
Election outcome could gut profit streams for Apple and Alphabet. Apple and Alphabet face profit risks if Democrats gain House control, threatening their services and cloud growth. Originally reported by 24/7 Wall St..
Record Quarters for Apple and Alphabet
Apple and Alphabet posted record summer quarters with strong growth in iPhone sales and cloud services.
“It’s a demand forecast issue, to be candid.”
Apple's iPhone 17 Cycle
Apple's Q3 revenue reached $109.42B, up 16.4%, with iPhone sales driving growth.
“It’s a demand forecast issue, to be candid.”
Alphabet's Cloud Growth
Alphabet's Q2 revenue rose 24.2% to $119.80B, with Google Cloud driving 82% growth.
“nearly 90% of the Fortune 100 use Gemini Enterprise.”
Political Risk for Apple
Apple's services gross margin is 75.6%, but EU rules and U.S. court rulings threaten app store fees.
Alphabet's Funding Risk
Alphabet's free cash flow fell to -$5.86B, with long-term debt rising to $98.2B.
Senate Control Impact
Democratic Senate control at 0.645 could lead to new legislation affecting Apple and Alphabet.
Election Outcome Consequence
A Democratic House could bring app store legislation, threatening Apple's services and cloud growth.
The one thing
Apple and Alphabet face profit risks if Democrats gain House control, threatening their services and cloud growth.
