Tesla Earnings, Apple in China, TikTok's Bill | Bloomberg Technology

Tesla Earnings, Apple in China, TikTok's Bill | Bloomberg Technology


  • Apple reported a 19% decline in sales in China during the first quarter, its worst start since the COVID-19 pandemic.
  • Apple's iPhone sales in China are reportedly down by 15% according to Counterpoint Research, while domestic handset makers are gaining market share.
  • Apple is preparing to launch a significant revamp of the iPad, including new versions of the iPad Air, with a video event scheduled for May 7th.
  • Apple's global shipments are down about 10%, which is already reflected in the current stock price.
  • Analysts expect a 5% decrease in overall revenues for the current quarter but a 2% growth in the next quarter.

Technology Sector Challenges

  • The technology sector, particularly the "Magnificent Seven" companies including Tesla and Apple, is facing challenges such as China weakness, competition from China, and concerns about product updates.
  • Valuations for these companies may be higher than what investors are willing to pay given their lower growth prospects.
  • If the mega-cap companies fail to meet expectations, there could be a sell-off in the market, similar to what was seen after the recent inflation report.
  • Investors are looking for both valuation and future growth potential in these companies, with a focus on traditional fundamentals such as earnings growth and free cash flow.

Artificial Intelligence

  • Artificial intelligence (AI) continues to be a tailwind, but investors want to see tangible results and revenue growth from AI investments.
  • Adobe is introducing more generative AI tools to Photoshop, enabling users to create content more efficiently and quickly.
  • Adobe plans to integrate text-to-video generation capabilities into its creative applications, similar to platforms like SORA, and expects to launch its model later this year.
  • Perplexity AI has raised $62.3 million in funding, valuing the company at over $1 billion. Their AI chatbot summarizes search results, cites sources, and refines queries for better responses.


  • Spotify reported strong earnings growth and subscriber growth in the first quarter, driven by cost management and increased prices.
  • Investors are optimistic about Spotify's ability to generate revenue and earnings growth while managing costs.
  • Spotify is focusing on audio content, including audiobooks, and has seen positive adoption of its audiobook offering.


  • SAP reported record growth in its backlog as it migrates customers from legacy software to the cloud and offers AI services.

Elon Musk's Ventures

  • Elon Musk's social network, X, has been ordered by an Australian court to remove footage of a recent terrorist attack until a second hearing to determine the validity of a removal notice.
  • Elon Musk's social platform, X, is launching a TV app that will be available on most smart TVs soon.
  • Tesla's earnings call is highly anticipated, and a "Tesla Earnings Bingo" game is being played to guess the keywords that Elon Musk might mention during the call.
  • Elon Musk is leaning into Robotaxi as a potential game-changer to separate Tesla from other electric cars.


  • The US government is considering a $95 billion aid package that could lead to a nationwide ban on TikTok.
  • TikTok faces a potential ban in the US if its Chinese owner, ByteDance, does not divest its stake within a year, according to a bill being considered by the US Senate.
  • TikTok is under regulatory focus in the EU, with the E.U. issuing a 24-hour deadline for a risk assessment of their new app.
  • TikTok faces potential fines of up to 1% of its total annual income for violating the new content law.

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