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Market Update 6/6/2023 - AAPL price drop, US fines Microsoft $20M.

In Brief: Apple’s Stock hit an all-time high before fell, Microsoft to pay $20M to settle US charges for violating children’s privacy.

NASDAQ Composite Index slipped 0.09% to 13,229.43 and Dow Jones Industrial Average fell 0.59% to 33,562.86 in an overall dismal trading session.

The Vision Pro announcement hurt Apple's stock price

 

Stocks of Apple rose early Monday ahead of the debut of its mixed reality Vision Pro headset but fell after the tech giant revealed a higher-than-expected price tag for the product.



The AAPL stock gained as much as 2.2% in the morning and early afternoon trading, hitting as high as $184.95, shattering its prior all-time high of $182.94 achieved last January. Later, the stock fell 0.76% to $179.58. The stock’s fall ended a two-day winning streak.

 

This slide came immediately after Apple CEO Tim Cook announced that the company’s highly anticipated headset would retail for $3,499. This is nearly 20% higher than the $3,000 price tag most experts anticipated for the device ahead of its unveiling at Apple’s Worldwide Developers Conference, which happened on June 5, 2023.

 

 

 

 

Despite the Monday decline, shares of Apple Inc are still up 46.78% year-to-date in 2023, rising 22.88% compared to last year. Currently, Apple – the Silicon Valley giant’s market capitalization sits at $2.82T, compared with Microsoft’s $2.497T, Google’s $1.603T, and Amazon’s $ 1.285 T.

 

 

 

Microsoft is to pay $20 million in settlement of US charges for violating children's privacy.

Monday, Microsoft Corp. gained 0.16% to $335.94 after its competitor Apple’s price dropped. The company’s management reported that 2,500 business customers had already signed up to use OpenAI on its Azure cloud platform. This was in its recent earnings call. In just three months, this was a 1,000% increase.

The MSFT’s share price hit $338.38 in the morning session. The highest it reach in 2023.

 

Later on late Monday – Microsoft will pay $20 million to settle U.S Federal Trade Commission (FTC) charges that the tech company illegally collected personal information from children without the consent of their parents, the FTC announced on Monday.

The company did not immediately respond to a request for comment late on Monday.

“Our proposed order makes it easier for parents to protect their children’s privacy on Xbox, and limits what information Microsoft can collect and retain about kids,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection.

Online services and websites direct to children under 13 are required to notify parents and obtain verified parental consent before collecting or using children’s personal information. In order to comply with the order, Microsoft must take steps to improve privacy protections for children who use Xbox systems. It will also extend COPPA protections to third-party gaming publishers with whom Microsoft shares children’s data.

“This action should also make it abundantly clear that kids’ avatars, biometric data, and health information are not exempt from COPPA,” added Samuel Levine, director of the FTC’s Bureau of Consumer Protection.

According to the complaint, Microsoft retained child data collected during the account creation process from 2015 to 2020, even if parents didn’t complete the process.

 

Following the news, MSFT’s share pre-market price of June 6, dropped 0.071%.

 

 

 

Is Google Bard catching up to Bing AI?

 

The conversational AI platform Google Bard, developed by Alphabet Inc., may introduce features such as chat history and customizable responses in order to compete with Microsoft Corp’s Bing AI.

 

 

 

 

 

According to the most recent update for Bard, the app now asks for access to your exact location, which allows it to be more accurate. According to Google, this will enable the service to give you better results when you search for restaurants and other points of interest nearby when you use its service. In the current version of Bard, Bard is currently using the location details taken from your residences and workplaces (or your IP addresses). More than 180 countries and territories have access to Google’s artificial intelligence tool, which is available in English, Japanese, and Korean.

 

 

 

 

 

Shares of Alphabet Inc. Cl A (GOOGL:NYSE) rose 1.07% to $126.01 Monday. It was the stock’s third consecutive day of gains. Alphabet Inc. closed $0.42 shy of its 52-week high ($126.43), which it reached on May 22nd. The current price had risen up to 41.39% in 2023.

 

 

 

Bottom Line

 

Analysts have given buy ratings to all three companies mentioned.

 

AAPL has a consensus buy price target of $184.89, an upside of 2.96% from the last price of $179.58. MSFT’s consensus is a strong buy, mainly due to the continuous hype surrounding ChatGPT. The stock has a price target of $342.31 with an upside of 1.90% from the last price of $335.94 and GOOGL also has a consensus of strong buy with an average price target of $131.24, an upside of 4.15% from the last price of $126.01.

The key takeaways/market update is a series by AxeHedge, which serves as an initiative to bring compact and informative In/Visible Talks recaps/takeaways on leading brands and investment events happening around the globe.

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