Apple shares bounce on buy now, pay later app

In today’s top stories, technology stocks were in focus with Tim Cook (pictured), CEO of Apple, revealing a buy now, pay later product at the Worldwide Developers Conference. Amazon shares were up after its stock split, while Twitter’s stock fell on news that Elon Musk was looking to back out of the takeover deal. Meanwhile, solar stocks were soaring and BofA named its top software picks. 

Apple moves into BNPL

Buy now, pay later may be a controversial form of credit, but demand for it has surged since the pandemic. Apple [AAPL] has announced it’s moving into the space with Apple Pay Later. No details were given as to the interest users would be charged, but investors will be paying close attention to whether it undercuts Affirm’s [AFRM] maximum charge of 30%. Affirm's share price closed 5.5% lower on Monday follow the news of a new competitor.

Musk’s takeover threat

The Twitter [TWTR] takeover saga has taken another twist. Elon Musk has threatened to walk away from the $44bn deal because of the social media platform’s refusal to provide information on fake accounts and bots. Musk described it as “a clear material breach” of the deal obligations. The Twitter share price dropped 5% on Monday morning before recovering slightly.

BofA’s technology picks

The rout on technology stock has muddied valuations and made it difficult to find a diamond in the rough. But they are there, say BofA analysts led by Jill Carey Hall, who have issued more upgrades than downgrades for the sector in recent weeks, according to CNBC. GitLab [GTLB] is their top pick in the enterprise software space. On Semiconductor [ON] is another recommendation, while DoorDash [DASH] should outperform in a risk-on environment.

Amazon’s stock finally splits

The Amazon [AMZN] share price rose 2% after its 20-for-1 stock split took effect on Monday. While the stock has been pulled down by the broader sell-off since announcing plans for the split in March, it’s currently 23% above its 52-week low recorded on 24 May. As Mark Lehmann, CEO of JMP Securities told Bloomberg: “Stock splits are usually a sign of optimism.”

Solar stocks glow

Things are looking sunnier for solar stocks. President Joe Biden has declared a 24-month suspension of solar tariff for products imported from southeast Asian countries. The residential solar industry will “likely benefit from the removal of punitive tariff risks that eases panel procurement challenges,” wrote Evercore ISI’s Sean Morgan in a note to clients seen by MarketWatch. Shoals Technologies [SHLS] was the biggest gainer on Monday, closing 21% higher.

Hydrogen to power the future

The urgency for sources of reliable, low-carbon electricity has been accelerated by the war in Ukraine highlighting the overreliance on Russian oil. Hydrogen is expected to be part of the future energy mix, along with solar and nuclear. However, the likes of Bloom Energy [BE] and Plug Power [PLUG] have struggled for momentum since the start of the year. Analysts remain optimistic on the long-term prospects of the hydrogen sector.

Is Docusign a write-off?

With workers returning to the office, the need to sign documents electronically is diminishing. This hasn’t been good for DocuSign [DOCU], whose shares have fallen 42% year-to-date to pre-pandemic levels. While the company’s financials look relatively healthy, Wedbush’s Dan Ives believes there could be “darker days ahead”. Investors will be hoping Q1 earnings can lift the share price from the gloom.