Apple, Having a Bad Day?

Hey besties,

Happy New Year! It feels so good to be back after a long break. How was your holiday? Hope you have a good time with your family.

Alright, I know you missed me. Oh yeah! I’m sure about that.

Anyway, your fav is back to give you the hottest stock gist. So, grab your popcorn and sit tight.

Walgreens in a Tough Spot

As the new year begins, companies usually look ahead to the future and make big decisions about how to move forward.

And you know what! Walgreens just made a tough choice to keep its head above waters.

I guess, the pressure was so much… But, I mean! you’ve got to do what you gotta do to keep your head held high.

Right?

Walgreens Boots Alliance has decided to cut its next dividend by 48%, to 25 cents a share. The company’s stock dropped after the company made this big decision – It was the second-biggest drag on the blue-chip Dow Jones Index, and the decline was set to wipe off more than $2 billion in Walgreens’ market capitalization.

In a press release, the new CEO Tim Wentworth stated that the dividend cut was a “difficult decision.” Obviously! (A company that has been known for generous dividends and has paid them for more than 90 years). Cutting dividends by a whopping 48% is definitely a tough decision to make for any organization.

According to him, the reduction was needed to “strengthen our long-term balance sheet and cash position.” Wentworth also added that the move will increase the company’s cash flow and free up additional capital to “invest in sustainable growth initiatives in our pharmacy and healthcare businesses, which we believe will ultimately improve shareholder value.”

Walgreens has been struggling with low demand for COVID-19 vaccines and testing and the decreased spending on personal care and beauty products by inflation-weary consumers. On Thursday, Walgreens said the hit from lower consumer spending had become worse than it previously expected, and forecasted a low-single-digit decline in same-store sales at its U.S. retail business.

At this point, a dividend cut was just the only option as Walgreens simply didn’t have a better alternative.

Wentworth has hinted that there will be more changes to come. So, let’s chill and see what Walgreens is cooking up next.

Apple, Having a Bad Day

It’s no secret that Apple has been a “rock star” in the stock market, but sometimes even the best performers have a “bad day.”

Okay! Okay! I know you are eager to hear what’s up with Apple but a deep breath because I will spill it all…

Apple’s stocks seem to be having some bumps on the road this new year. The company’s share dropped after an analyst downgraded its stocks – Shares fell 3.6% on Tuesday, (their biggest one-day percentage drop since September), and the decline erased more than $107 billion in market value.

Yeah!

Last year, the company’s shares rose around 50% and saw its market value hit $3 trillion as investors bet that its flagship device will withstand a sluggish economy.

But! (plot twist)

With the recent development, the street doubts if the stock will be able to repeat such hefty gains given rising competition from the likes of Huawei Technologies Co. and a Chinese government crackdown on foreign-made devices.

Analysts led by Tim Long aren’t super optimistic about Apple’s stock. They’re predicting a decline price. The analysts wrote in a note on Tuesday. “Our checks remain negative on volumes and mix for iPhone 15, and we see no features or upgrades that are likely to make the iPhone 16 more compelling.”
Investors shouldn’t give up on Apple just yet! After all, they’re still one of the most innovative companies in the world.

Let’s take a break while you digest the stories and share them with your friends. Don’t forget to inform them to download the trove app – to enjoy a journey to wealth just like you.

Costco Hitting It High Highs

Bruuuh… It seems most stocks had a decline this week but heh! Costco changed the story.

So bestie, let’s skip to the good part..

Costco came out swinging in December 2023! Their holiday sales were on fire, and their stock shot up like a rocket. I’d say they’re having a pretty merry Christmas. The company’s shares climbed 1.25% after it reported net sales for the retail month of December, an increase of 9.9% from last year.

In fiscal 2023, Costco’s total product sales reached $237.7 billion. But here’s the catch, a huge chunk of their profits actually came from something other than product sales.

That’s right! The company’s membership fees brought in $4.58 billion in revenue, which is an astonishing 73% of their total profits.

So, when customers shop at Costco, They’re not just buying products – they’re paying for the privilege of being a member. Sounds like paying to belong to a club! 🤣🤣