Weekly Roundup: Apple Tariff Fears, CVS Snubs Lily, Spotify Tumbles
On this episode of Stock Movers:- Apple (APPL) shares fell this week after its quarterly earnings report failed to soothe investor concerns about its biggest challenges, including escalating tariff costs and a slowdown in China. The company’s shares declined 3.7% in New York on Friday after second-quarter results included worse-than-expected sales in China. The iPhone maker also warned that tariffs will increase costs this quarter, a sign that geopolitical tensions are taking a growing toll on the business. Apple expects $900 million in higher costs from tariffs in the current period, Chief Executive Officer Tim Cook said Thursday during a conference call. Revenue will increase by a percentage in the low- to mid-single digits in the quarter, compared with a 5% average analyst estimate. The company didn’t offer any guidance on the impact of tariffs beyond the current period.- Eli Lilly (LLY) shares took a hit on word that CVS choose to make rival Novo Nordisk's popular weight-loss drug Wegovy more widely available to its customers. Eli Lilly's Zepbound was moved off of CVS' list of preferred drugs. Novo and Lilly have been locked in a fierce competition to dominate the obesity market, which is expected to reach $130 billion by the end of the decade. CVS Caremark’s decision to place Wegovy over Zepbound could give Novo an edge as the companies fight to convince insurance companies to pay for their treatments, which cost more than $1,000 a month before rebates.- Spotify (SPOT) shares tumbled on Tuesday after the streaming company gave a muted outlook for profit and subscriber growth in the current quarter. The Stockholm-based company forecast gross profit margins of 31.5% in the second quarter, missing analysts’ average estimate for 31.6% according to data compiled by Bloomberg. Spotify sees monthly active users rising to 689 million, less than the 694.4 million analysts expected. The US-traded stock slipped as much as 9.6% in New York to $540.10. It had risen 22% this year through the end of March and had more than doubled in the last 12 months. Chief Executive Officer Daniel Ek tried to reassure investors that Spotify’s business is strong, despite economic turbulence roiling other industries.See omnystudio.com/listener for privacy information.
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5:19
Apple Down on Trade Fears, Block Plunges, Duolingo Jumps
On this episode of Stock Movers:- Apple (APPL) shares are still lower as investors continue to digest an earnings report that failed to soothe investor concerns about its biggest challenges, including escalating tariff costs and a slowdown in China. The company’s shares declined as much as 5.2% after markets opened in New York on Friday. Apple had released second-quarter results that included worse-than-expected sales in China. The iPhone maker also warned in the Thursday statement that tariffs will increase costs this quarter, a sign that geopolitical tensions are taking a growing toll on the world’s most valuable business.- Block (XYZ) shares sunk as much as 24%, the most since March 2020 after the financial services and digital payments company cut its gross profit guidance for the full year. The Cash App parent company reported results that suggest weakness in the company’s efforts to convert millions of active users into full-fledged banking customers.- Duolingo (DUOL) shares are still up after the language-learning software firm reported results that beat expectations. Sales will be $987 million to $996 million this year, the company said in a letter to shareholders, up from its previous view of at most $978.5 million and ahead of analysts’ projections for $973.2 million. Subscriptions for its highest-price tier — Duolingo Max — continued to grow in part due to the appeal of its AI-powered video call feature. Daily active users across all tiers jumped 49% to 46.6 million in the period, while the company now counts 10.3 million paying subscribers, slightly ahead of expectations.See omnystudio.com/listener for privacy information.
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5:53
Amazon Falls, Wendy's Drop, Duolingo Rises as AI Drives Subscriptions
On this episode of Stock Movers:- Amazon (AMZN) shares fall after the company said it’s bracing for a tougher business climate in the coming months, echoing concerns from a range of companies that tariffs and related economic turmoil could crimp consumer spending.- Wendy's (WEN) shares drop after the company lowered its sales outlook for this year, the latest restaurant chain to take a hit from consumer unease about shaky economic conditions in the US. Global systemwide sales are set to decline as much as 2%, while the company had forecast in March an increase as large as 3%.- Duolingo (DUOL) shares rise after the company raised its full-year sales and profit outlook as artificial intelligence offerings drive users to its higher-priced subscriptions. ales will be $987 million to $996 million this year, the company said in a letter to shareholders, up from its previous view of at most $978.5 million and ahead of analysts’ projections for $973.2 million.See omnystudio.com/listener for privacy information.
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4:03
Take-Two Drops, Apple Falls, Five Below Jumps on Positive Forecasts
On this episode of Stock Movers:- Take-Two Interactive Software (TTWO) shares fall after the company delayed the release of Grand Theft Auto VI to next year, giving the team more time to finish the game. The game was expected to be one of the most lucrative video games ever and would have been the biggest release of 2025, but will now be released on May 26, 2026.- Apple (AAPL) shares drop after the company received downgrades from Jefferies and Rosenblatt Securities after quarterly results raised concerns about tariffs and growth potential. The company's results showed weaker-than-expected sales in China and expected $900 million in higher costs from tariffs, with revenue growth expected in the "low- to mid-single digit" percentage range this year.- Five Below (FIVE) shares jump after the discount retailer increased its first-quarter forecasts for sales and profit. The company also said director Mike Devine is expected to be appointed non-executive chair of the board following the 2025 annual meeting.See omnystudio.com/listener for privacy information.
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4:13
Apple and Amazon Earnings; Oil Prices Hit Chevron and Exxon; Take Two's Miss
On this episode of Stock Movers:- Apple (APPL) shares are lower this morning after the iPhone maker reported service revenue for the fiscal second quarter that trailed the average analyst estimate. The company expects $900 million in higher costs from tariffs this quarter and warned that revenue will increase by a percentage in the low- to mid-single digits, below analyst estimates.- Chevron (CVX) share are also down despite beating its earnings estimates. Wall Street is punishing the oil giant after it announced it will reduce share buybacks this quarter to about $2.75 billion, 30% less than in the first quarter, due to tumbling oil prices.- Exxon (XOM) shares are higher after it said it will stick to its plan to buy back about $5 billion in shares per quarter, while Shell has the financial ability to keep repurchasing upwards of $3 billion of shares each quarter.- Take-Two (TTWO) shares are lower after delaying the release of Grand Theft Auto VI to next year, giving the development team more time to complete the game. The delay is seen as a significant setback for Take-Two, as the Grand Theft Auto franchise is a major contributor to the company's revenue.See omnystudio.com/listener for privacy information.
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