Tech shares: Foxconn Q2 profits slip, downgraded outlook
Foxconn, the world’s biggest contract electronics maker, has added to the souring consumption outlook from the tech sector.
IGTV financial analyst @AngelineOng investigates what the recent guidance from the Taiwanese manufacturer, Apple, Alibaba, JD.com, and NVIDIA tell us about the global economy in the second half.
(Video Transcript)
Foxconn Q2 profits
Just keeping an eye on Apple, which is an old session stock on IG. This is after mega Apple supplier Foxconn said Q2 profits slipped 1% and downgraded its annual sales outlook.
Apple stock
Now, just taking a look at Apple's stock because it has risen, as you can see there. But that pattern is really kid has dropped off and that is also due in part to Apple's results and outlook which indicated soft demand for its latest iPhone and weakness in the global economy.
Foxconn
However, this number from Foxconn is terribly important because the Taiwanese company is the world's biggest contract electronics maker. And when it makes that sort of comment, the world of investing lessons. Now, the group or the unit in Foxconn, which includes smartphones and makes up about half of Foxconn's total revenue while this division is expected to report sales that slightly will fall year on year in the third quarter.
Baidu and JD
All this, of course, feeds into this slow down picture, just showing you a picture of Baidu and JD in a moment. As you can see that these stocks have also tipped slightly lower. So, you are there a similar picture and it has come down.
Both JD and Baidu's shares fell after Beijing's recent economic support measures failed to lift stocks like Alibaba and Baidu and JD Chip stocks across the board also fell. Japan in Japan's chip makers and chip related stocks fell early in the session.
So where is the salad dressing now? If we don't see more support measures come through to boost demand, especially in China, we could see a continuation of weak consumption for tech goods makers going into the second half.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize your opportunity
Deal on the world’s stock indices today.
- Trade on rising or falling markets
- Get one-point spreads on the FTSE 100
- Unrivalled 24-hour pricing
See opportunity on an index?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on an index?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from one point on the FTSE 100
- Trade more 24-hour indices than any other provider
- Analyse and deal seamlessly on smart, fast charts
See opportunity on an index?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
