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Tariffs or Not, I'm Avoiding These 2 Tumbling Stocks
AAPLApple(AAPL) The Motley Fool·2025-04-08 08:55

Group 1: Apple Inc. - The Trump administration's global tariffs are negatively impacting Apple, which relies heavily on Chinese manufacturers for its devices [1][2] - Tariffs may force Apple to increase prices, potentially reducing demand for its products, particularly iPhones [3] - Apple is struggling to find new revenue streams post-iPhone, with iPhone sales flatlining and revenue down in the last quarter of 2024 [4] - The company is facing challenges in integrating useful AI features, delaying improvements to its Siri assistant, which could hinder iPhone sales [5] - A significant 20billionannualpaymentfromGoogletoAppleformakingitssearchenginethedefaultonAppledevicesmaybeatriskduetoanantitrustlawsuitagainstGoogle,threateningApplesservicesrevenue[6]Group2:WayfairInc.Wayfairsbusinessmodelreliesonsellinginexpensiveforeignmadefurnitureandhouseholditems,primarilyfromChinesesuppliers,whichareaffectedbytariffs[7]Thestockhasalreadyseenasignificantdeclinepriortothetariffannouncement,andthecompanyhasbeenstrugglingwithdecreasingsales[8]Wayfairssalesdropped10.920 billion annual payment from Google to Apple for making its search engine the default on Apple devices may be at risk due to an antitrust lawsuit against Google, threatening Apple's services revenue [6] Group 2: Wayfair Inc. - Wayfair's business model relies on selling inexpensive foreign-made furniture and household items, primarily from Chinese suppliers, which are affected by tariffs [7] - The stock has already seen a significant decline prior to the tariff announcement, and the company has been struggling with decreasing sales [8] - Wayfair's sales dropped 10.9% in 2022, 1.8% in 2023, and 1.3% in 2024, although there was slight growth in Q4 2024 [9] - The company reported a net loss of 128 million on $3.1 billion in revenue in Q4 2024, indicating ongoing financial challenges [9] - Tariffs could hinder any progress made by Wayfair, as higher prices may reduce demand, and the number of active customers has already dropped by 4.5% [10] - Wayfair has sufficient cash reserves to endure short-term challenges, but prolonged tariffs could lead to a dire situation [10][11]