- GRIT
- Posts
- Barclays Downgrades Top Stock
Barclays Downgrades Top Stock
ASML, Apple, Oil
Good Morning!
Happy New Year! It is the first market day of 2024!
👉 ASML pauses China deliveries
👉 Barclays downgrades Apple
👉 Oil rises on Middle East tensions
ASML: Pauses China Deliveries
In a significant development, the Dutch semiconductor equipment manufacturer ASML has halted several of its deliveries to China, complying with a request from President Biden. This action precedes the implementation of new Dutch export restrictions set for January. ASML, known for its advanced deep ultraviolet lithography machines, was initially licensed to supply three such machines to Chinese companies. This move comes at a time when China represents a substantial portion of ASML's business, accounting for almost 50% of its sales in the third quarter. This marks a sharp increase from 24% in the preceding quarter and 8% in the quarter ending in March.
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/9eb77194-64fb-4cb0-802d-b94093d24cc9/ALLICCCEYVK65HGPRYFTFBG6DQ.jpg?t=1704201943)
Source: NBC
Notably, last year, Huawei, a major Chinese technology firm, successfully created a smartphone that competes with Apple's iPhone. This achievement was partly due to the utilization of chips made in China with the aid of ASML's technology, a development that raised concerns in the United States.
🎯GRIT TAKE: As a shareholder of ASML, you obviously…upgrade to VIP to read the full GRIT Take.
Barclays: Downgrades Apple
In today's early trading session, Apple's stock experienced a downturn following a notable downgrade from analysts at Barclays. The downgrade was driven by concerns over diminishing iPhone demand, potentially leading to a sustained period of underwhelming results for the world's highest-valued corporation.
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/21874569-f176-41b0-a287-154944e554c3/17-facts-about-barclays-1690086981.jpg?t=1704202329)
Source: Facts.net
Barclays analyst Tim Long, in a client note released Tuesday, highlighted that the underwhelming performance of the upcoming iPhone 15, coupled with a lackluster recovery in demand for Macs and iPads, could negatively impact Apple's sales during the holiday season and its revenue in 2024. Long also pointed to possible declines in both iPhone and wearables sales in the first quarter of the year. Furthermore, he mentioned that Apple's overall revenue could suffer due to a deceleration in the growth of Apple Store sales.
OIL: Rises on Middle East Tensions
Oil prices witnessed an uptick on Tuesday, spurred by heightened tensions in the Red Sea following Iran's deployment of a warship to this crucial waterway. The Red Sea is a vital artery for global shipping and has been a hotspot for incidents, including recent attacks by Yemen’s Houthi rebels on maritime vessels.
Iran's state media reported on Monday that the Alborz destroyer was sent through the strategically significant Bab al-Mandeb Strait. While the mission's specifics were not detailed, such deployments are reportedly regular to maintain the security of the shipping routes in the Red Sea.
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/5cabe77a-0329-4b0a-8fc5-b9e3fe82e2f7/107262923-1687829616485-gettyimages-1247400242-AA_23022023_1078815.jpeg?t=1704200972)
Source: CNBC
This development follows a recent confrontation where the U.S. Navy neutralized three vessels operated by Iran-backed Houthi rebels, leading to the deaths of 10 militants. This action was a response to a distress call from the Singapore-flagged Maersk Hangzhou, which came under fire from the Houthis, as confirmed by a statement from the U.S. Central Command and an Associated Press report.
Headlines You Need To Know: 🎙
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/1a73a463-7534-411e-9994-df9e0567fbf9/Screenshot_2023-10-04_at_11.14.52_AM.png)
David Tepper’s Prized Vacation Home
This guy was fired from his job at Goldman Sachs, started his own hedge fund, and then destroyed his old boss’s vacation home.
You might know David Tepper as the billionaire owner of the Carolina Panthers. But David Tepper is one of the greatest stock traders ever to live.
In the 1980s, Tepper led Goldman Sachs through times of economic hardship. He was their best trader and focused on distressed debt, specifically bankruptcies. He made Goldman Sachs an absolute killing.
Tepper was expecting to get a promotion, but his boss gave it to someone else, and Tepper was essentially fired from his job because of his arrogance.
He started his own hedge fund and became a billionaire in less than ten years.
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/868df0f0-d68f-4ccd-a9a1-4784b7bba319/download__10_.jpg?t=1704200286)
Source: NBC
But this is where things get interesting:
Tepper’s old boss got divorced and lost his prized position Hampton’s vacation home to his ex-wife.
Tepper knew how much his old boss loved this house, so out of revenge, he bought the house, bulldozed it down, and then built a house twice the size of the same lot.
Chart of the Day
📊 Millennials vs. Baby Boomers
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/4f1c457d-935d-4719-b68a-6de7c6ec0d67/Image-1__28_.png?t=1704199972)
Source: Federal Reserve
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/1a73a463-7534-411e-9994-df9e0567fbf9/Screenshot_2023-10-04_at_11.14.52_AM.png)
GRIT Meme of the Day 😂
Tag GRIT Capital on social media for a chance to be featured in our meme or Tweet of the day in our GRIT daily newsletter! 👇
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/a45aba8a-edf9-4b5e-95a1-8e32a77e2583/IMG_3348.jpg?t=1704200012)
Source: @wallstreetoasis
Have feedback to share? Click HERE. Good or bad, we are always eager to improve our newsletter.
Interested in being featured in our GRIT Newsletters? Click below!
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/1a73a463-7534-411e-9994-df9e0567fbf9/Screenshot_2023-10-04_at_11.14.52_AM.png)
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions
Grit is a publisher of financial information, not an investment advisor. Grit does not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient. Grit does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.
THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN. INVESTORS SHOULD OBTAIN INDIVIDUAL INVESTMENT ADVICE BASED ON THEIR OWN CIRCUMSTANCES BEFORE MAKING AN INVESTMENT DECISION
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and Grit undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.
Grit does not accept any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.
By using the Site or any related social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.
Please read: Terms of Use, Privacy Policy, Disclosure Policy, State Disclosure Policy, and Disclaimer Policy
If you have any questions please contact us at [email protected]
Reply