Tech shares: Foxconn Q2 profits slip, downgraded outlook

[KoketsoIG]

Foxconn, the world’s biggest contract electronics maker, has added to the souring consumption outlook from the tech sector.

Shares Foxconn Baidu Alibaba Group JD.com iPhone

 

 Angeline Ong | Financial Analyst, Presenter and Content Editor, London | Publication date: Monday 14 August 2023 11:45

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.