20 Billion Reasons Why Apple Stock Could Be Headed For a Crash
Apple (NASDAQ: AAPL) is one of the world's most profitable companies. It earns most of its profits from sales of various devices and services, but one profit source is more lucrative than any other: The money that Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) paid Apple to ensure that its search engine is the default choice for iPhones.Alphabet paid Apple $20 billion in 2022 for this commitment, but there is no public information about that payment in the following years. However, it's significant enough that Apple's vice president of services, Eddy Cue, recently said in a testimony to federal court that he "loses sleep" over the thought of losing that revenue. Because this revenue doesn't cost Apple anything, there's a high probability that this $20 billion or so payment goes directly toward Apple's bottom line. Apple's stock could be primed for a crash if this profit source disappeared.Continue reading
Apple (NASDAQ: AAPL) is one of the world's most profitable companies. It earns most of its profits from sales of various devices and services, but one profit source is more lucrative than any other: The money that Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) paid Apple to ensure that its search engine is the default choice for iPhones.
Alphabet paid Apple $20 billion in 2022 for this commitment, but there is no public information about that payment in the following years. However, it's significant enough that Apple's vice president of services, Eddy Cue, recently said in a testimony to federal court that he "loses sleep" over the thought of losing that revenue.
Because this revenue doesn't cost Apple anything, there's a high probability that this $20 billion or so payment goes directly toward Apple's bottom line. Apple's stock could be primed for a crash if this profit source disappeared.
