Apple's Profit Outlook Clouded by Tariffs, Two Software Stocks Offer Safe Haven

Apple Faces EPS Hit from Tariffs, While DoubleVerify and Viant Stay Shielded with Virtual Revenue Models: Analyst

A recent report suggests that Apple's earnings per share (EPS) could take a hit due to the ongoing trade tensions and tariffs imposed on Chinese goods. According to a top analyst, the tech giant's profit margins could be significantly impacted, leading to a decline in EPS.

The analyst, who has a strong track record of accurately predicting market trends, believes that Apple's supply chain and manufacturing costs will increase due to the tariffs. This, in turn, will lead to a decrease in the company's profit margins, resulting in a lower EPS.

On the other hand, DoubleVerify and Viant, two companies that rely heavily on digital advertising, are expected to stay shielded from the impact of tariffs. This is because they have implemented virtual revenue models that are less dependent on physical goods and more focused on intangible services.

DoubleVerify, a leading provider of digital verification and measurement solutions, has seen its revenue grow steadily over the past few years. The company's virtual revenue model, which is based on the number of impressions and clicks it verifies, is less susceptible to changes in tariffs and trade policies.

Viant, another digital advertising company, has also seen its revenue grow significantly in recent years. The company's virtual revenue model, which is based on the number of impressions and clicks it delivers, is also less dependent on physical goods and more focused on intangible services.

The analyst believes that Apple's EPS could decline by as much as 10% to 15% in the next quarter due to the tariffs. However, DoubleVerify and Viant are expected to stay shielded from the impact of tariffs and continue to grow their revenue at a steady pace.

Overall, the report suggests that Apple's EPS could take a hit due to the tariffs, while DoubleVerify and Viant are expected to stay shielded from the impact. The report also highlights the importance of having a virtual revenue model in today's digital age, as it provides a level of protection against changes in tariffs and trade policies.