In today’s top stories, Apple cuts its iPhone 14 production, Tesla aims to end the quarter with record deliveries and ARK launches a new fund aimed at small investors. Meanwhile, Goldman Sachs forecasts the Stoxx 600 to fall 8% before the end of 2022 and Compound Capital Advisors’ Charlie Bilello highlights long-term stock picks.
Apple’s chip suppliers down
Weaker demand for cheaper models of the iPhone 14 has forced Apple [AAPL] to abandon plans to increase production. According to Bloomberg sources, the Cupertino tech giant has reportedly asked suppliers not to assemble 6 million units that had previously been planned for production. Chipmakers and Apple suppliers like Qualcomm [QCOM], STMIcroelectronics [STM] and Taiwan Semiconductor Manufacturing Company [TSM] were all down pre-market Wednesday following the announcement.
ARK makes VC investing accessible
ARK Invest has doubled down on innovation by launching the Ark Venture Fund, which is opening up venture capital investment opportunities to small investors, who can already access the product through the trading platform Titan. Investing requires a minimum of $500 to start and a flat management fee of 2.75%. “Ark is moving from social media and social marketing into social distribution, direct to consumer,” CEO Cathie Wood told CNBC’s Squawk Box.
Tesla’s end-of-quarter sales push
Tesla [TSLA] is once again pulling its employees from services to assist its sales division and ensure that as many vehicles as possible are sold and delivered before the end of September. Analysts are anticipating the push will help set a record number of deliveries for the quarter. Despite CEO Elon Musk’s hope to move away from a model that leans on an end-of-quarter rush for deliveries, the company hasn’t managed to break the habit.
Long-term growth plays
Growth stocks may be taking a beating right now, but Amazon [AMZN], Netflix [NFLX] and Nvidia [NVDA] have performed stronger than any over the course of three decades, according to a list put together by Charlie Bilello, the founder of Compound Capital Advisors. Apple [AAPL] and Monster Beverage [MNST] were also named. Berkshire Hathway [BRK-B] propped up the list, which emphasises the value of a long-term earnings focus.
Focus on resilient EPS in Europe
There could be light at the end of the tunnel for European markets. Goldman Sachs has said that while it expects the Stoxx 600 to fall another 8% before the end of the year, share prices of large companies on the continent should return to their current level within six months. According to CNBC, the bank recommends sheltering in stocks “where EPS is likely to remain resilient” and defensive sectors such as healthcare and telecoms.
Schroders sees first-half net outflows of £2.9bn
Amid a gloomy economic outlook, market conditions contributed to Schroders [SDR.L] reporting net outflows from its mutual funds of £2.9bn in the first half the year. The UK asset manager blamed this on a “risk-off environment”. Though a worsening economic climate and fears of an emergency BoE rate hike could curtail retail investor demand, analysts are generally optimistic on Schroders share price and prospects.
ITM Power CEO steps down then increases stake
Graham Cooley has announced his departure as CEO of ITM Power [ITM.L]. Despite the board change and significantly wider reported annual loss, the company said that it expects good sales momentum going forward. In what many perceive to be a vote of confidence, Cooley himself purchased 133 shares of the company’s stock on 14 September, the day his departure was announced, and a further 22,526 shares last week.
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