Amazon "Who"? Apple Gets Caught With It's Pants Down...

Happy Monday folks!

Today is a day of revelation. Will the markets bounce back after last week's correction scare?

Or will it continue its downward slope like Daenerys' approval rating after the final season of Game of Thrones?

Source: Express Tribune

Only time will tell…

But in the meantime, in today’s issue we got a juicy opportunity that’s making Amazon look like the flip phone of e-commerce…

And the real reason why Apple just got caught with its pants down! 

As always, we have a lot to dive into…

So let’s get to it! 

This Overlooked Stock is Making Amazon Look Like Yesterday’s News…

When it comes to the top stock that gets investors drooling over it’s long term performance, the #1 contender is almost always Amazon. But recently, one stock has been quietly making waves  that could be a killer addition to any savvy investors portfolio: Etsy (NASDAQ:ETSY). Which is why in this piece we’ll be pulling back the curtains to find out why Etsy is like the garage band that’s drawing bigger crowds than the latest mainstream popstar. Intrigued? 

Let's start with some numbers shall we? Over the past month, Etsy’s stock has inched up by 4.6%. Not mind-blowing, but not bad either, especially when you consider that the industry it’s in (Internet - Services) actually lost 3% in the same period. Meanwhile, the S&P 500 has been on a bit of a winning streak with a 4.7% increase. So, Etsy’s holding its own in a tough competing crowd.

Now, if you’re the type who checks your horoscope for stock tips, let's talk about something a bit more reliable: earnings estimates. Etsy is scheduled to release its next earnings on July 31at, and analysts are expecting Etsy to post earnings of $0.41 per share for the current quarter, which is down 19.6% from last year’s numbers. 

Of course, that’s not exactly a reason to pop the champagne, but here’s where it gets interesting. For the next fiscal year, the consensus estimate is a 23.1% increase in earnings. That’s like discovering your favorite dive bar now has $1 shots every night—exciting and promising.

Source: Zacks 

However, while earnings are great, let's not forget about revenue. For the current quarter, analysts expect Etsy to pull in $620.98 million, a 6.1% increase from the same quarter last year. For the full year, they’re looking at $2.76 billion, up 7.7%. Next year? A cool $3.08 billion, which would be an 11.4% increase. So, while Etsy isn’t exactly printing money, it’s definitely a grower not a shower. 

Source: Giphy 

Plus, when it comes to Etsy's price-to-earnings (P/E) ratio it’s currently sitting at a ratio of 12.5, which is a 43% discount to the S&P 500. Which is why it’s easy to say that despite some struggles, Etsy could be a pretty attractive bargain.

On the other hand, we can’t talk about e-commerce without mentioning Amazon. The behemoth is valued at nearly $2 trillion and dominates almost 40% of all online spending in the U.S. Their logistics are top-notch, their prices are low, and their selection is unbeatable. 

Source: We Make Websites

But that’s precisely why Etsy stands out. While Amazon is the Walmart of the internet, Etsy is the cool boutique where you find unique, handcrafted items that you can’t get anywhere else.

It’s no secret Etsy has carved out a niche selling handcrafted and vintage goods. A survey found that 83% of buyers find items on Etsy that they can’t find anywhere else. 

Source: Giphy 

Think of it as the hipster cousin of Amazon, with a two-sided ecosystem of 96.4 million buyers and 9.1 million active sellers. Unlike Amazon, Etsy doesn’t need to worry about inventory or warehouses, making it a lean operation that consistently turns a profit.

But wait… there’s more (in Billy May’s timeless voice)... 

Source: Quickmeme 

Institutional investors are starting to take notice of Etsy. Which is always a nice cherry on top benefit, because when the big boys start buying, it’s usually a good sign. 

Source: Yahoo Finance

After all, they have teams of analysts and more data than a NASA space mission. So if they’re bullish on Etsy, maybe you should be too.Especially as Etsy’s earnings report is just around the corner, and analysts are feeling immensely optimistic. 

So what’s the take away from all of this? 

Well while Amazon continues to be the Goliath of e-commerce, Etsy is quietly positioning itself as a strong contender. With solid revenue growth, a unique market niche, and increasing interest from institutional investors, Etsy might just be the best-kept secret in your investment portfolio. So, don't sleep on Etsy—this underdog might just surprise you.

As always, it’s important to remember that investing in stocks is like picking a date on Tinder: you’ve got to swipe right on the ones with potential, not just the ones with flashy profiles. And Etsy? It's got the potential to be a real keeper.

Apple Gets Caught with Its Hand in the Cookie Jar

Welp it’s Monday, and Apple just got caught with its metaphorical pants down. That’s right, the tech giant that’s seemingly untouchable just got slapped by the European Union for playing a little too close to the sun with its App Store rules. 

Source: InvestorPlace

So, what in the actual heck happened? Well European Union regulators are accusing Apple of breaching the Digital Markets Act (DMA). 

Source: CNBC

Essentially, Apple’s been a bit too restrictive about letting app developers steer customers towards alternative purchasing options outside the App Store. Imagine trying to tell your friend about a cheaper concert ticket but Apple’s like, “Nah, you can only use our overpriced vendor.” Yeah, not cool.

The EU’s executive arm, the European Commission, dropped some preliminary findings that Apple’s rules “prevent app developers from freely steering consumers to alternative channels for offers and content.” 

In plain English, Apple’s been gatekeeping harder than that one bouncer who won’t let you into the club even though you’re totally on the list.

However, the gatekeeping isn’t the only “Karen” action Apple has been accused of. According to reports, they are rigging the fee game as well. You see, Apple charges developers a hefty fee for acquiring new customers through the App Store. 

The EU says these fees “go beyond what is strictly necessary.” Which is almost like your landlord charging you extra for breathing air in your own apartment. Yet, even though Apple argues that 99% of developers would pay the same or less under their new terms, the EU isn’t buying it. 

As if that wasn’t enough, the EU has also opened a new investigation into Apple’s practices. This time, they’re looking at Apple’s new contract terms with developers and whether they comply with the DMA. 

Source: The Guardian 

In fact, one juicy detail from this new probe is the “core technology fee” Apple charges. For every app installed outside the App Store, Apple still wants its cut—50 euro cents to be exact. The EU’s like, “Wait a minute, this might not fly under the DMA.” It’s like Apple’s trying to charge you for a drink at the bar even if you brought your own booze. 

If found in breach of the DMA, Apple could face fines up to 10% of its global revenue. But of course, Apple is confident that its new business terms comply with the DMA. 

They’ve made some changes to allow apps to be downloaded from websites and third-party stores. But, the EU isn’t entirely convinced and wants to make sure these new practices aren’t just smoke and mirrors.

In conclusion, Apple’s situation is like watching a straight-A student get caught cheating on a test—it’s surprising but oddly satisfying. The tech giant has been dominating for so long, it’s almost refreshing to see them get a reality check. 

For now, Apple has 12 months to get its act together or face some hefty fines. Meanwhile, tech enthusiasts and regulators alike will be watching closely to see if Apple can clean up its act.

So, while Apple tries to navigate these regulatory hurdles, we’ll be here with our popcorn, watching to see if they can truly comply or if they’ll keep trying to find loopholes to keep their strategic “edge”. Only time will tell… 

Stocks.News holds positions in Apple and Amazon as mentioned in the article.