Tuesday, November 19, 2024

Apple, Tesla, and Caterpillar stocks fall. The problem is China’s slowing growth.

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Caterpillar and Caterpillar, both of which derive significant sales from China, fell after disappointing economic data.

China’s gross domestic product (GDP) expanded by 5.2% in the fourth quarter and in 2023 as a whole, according to figures released by the National Bureau of Statistics early Wednesday. Although this was higher than the Chinese government’s official growth target of around 5%, it was still one of the lowest levels in decades. Barons report.

Shares of Tesla, Apple, and Caterpillar fell 2.9%, 1.2%, and 2.3%, respectively, in recent trading. The three leading companies each have significant sales in China, according to securities filings, suggesting weak economic data could actually drive down their stock prices.

In 2022, Tesla recorded total revenue of $81.46 billion, of which $18.15 billion, or about 22%, came from China.

Apple’s net sales in 2023 were reported to be approximately $383 billion, with Greater China, including mainland China, Hong Kong, and Taiwan, contributing $72.56 billion, or approximately 19% of total sales.

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And finally, in 2022, Caterpillar’s total sales will be $59.43 billion, with $11.89 billion, or about 20% of sales, in the Asia-Pacific region, which includes Australia, New Zealand, China, Japan, Southeast Asia, and India. % sold. sale.

These were not the only stocks affected. Chinese stocks also fell, with American depositary receipts of internet company Alibaba Group Holding Ltd. falling 1.8%, and ADRs of Pinduoduo and Tianmu parent companies Jingtocom and PDD Holdings Ltd. falling 5% and 2.8%, respectively.

Email Emily Dattilo at emily.dattilo@dowjones.com.



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