AAPL

Tim Cook grew Apple (NASDAQ: AAPL) from a $350 billion company to a $5 trillion company over his 15 years as CEO, and the stock returned 2,740% to shareholders over that time. Apple stock hit the $5 trillion mark as Cook gave his last earnings call as CEO, a fitting tribute to a leader who skillfully filled the big shoes of founder Steve Jobs. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » The question on everyone's mind is whether new CEO John Ternus, who took over as of Sept. 1, can continue that streak. Apple stock has since pulled back slightly after management warned of skyrocketing memory prices and decelerating growth. Here's what investors should be watching as Ternus takes over. Prior to its rise earlier this year, the market had viewed Apple negatively for its lack of artificial intelligence (AI) advances. All of the other mega-cap tech stocks, like Microsoft, Amazon, and Alphabet, have been spending on AI development like it's going out of style, which it most definitely is not, and that's the problem. Apple has been touting its own Apple Intelligence, but it hasn't released a large language model (LLM) or any groundbreaking AI platform. Recently, Apple announced an upgraded Siri, its voice assistant, based on a customized LLM developed in partnership with Alphabet, and so far, management says it's getting great feedback. Apple is about consumer devices, which is why it can get away with outsourcing some of its tech to partners. However, how it integrates AI into its product line will be a critical factor in its success over the next few years. That leads to Apple's advantage. According to Cook, "What sets Apple apart is the unique combination of massive unified memory bandwidth, industry-leading power-efficient performance, and deep on-device intelligence, all built around the customer experience from the ground up." Apple's continued performance depends on delivering the best user experience to its loyal customers. That's what has generated 22% to 23% sales increases for its premier product, the iPhone, over the past three quarters. Management said that supply is constrained by the memory component and that iPhone sales growth will be lower in the fourth quarter as a result. The market was disappointed by the lower guidance for sales and gross margin, which is expected to narrow due to rising costs. However, the main factor to watch is how the iPhone user experience continues to evolve. Apple is raising some prices to cover higher costs, and there might be some short-term margin pressure. If the iPhone continues to deliver the experience its users expect, it won't matter in the long run for Apple stock. In fact, if the stock falls on lower margins, it could be an opportunity to buy. Apple stock isn't cheap today, trading at 36 times trailing 12-month earnings. That's a sign of long-term confidence, and investors might want to wait for a more attractive entry point. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $435,803!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,577!* Now, it’s worth noting Stock Advisor’s total average return is 966% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of September 2, 2026. Jennifer Saibil has positions in Apple. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, and Microsoft. The Motley Fool has a disclosure policy. Tim Cook's Final Earnings Call as Apple CEO Came the Same Week Apple Hit a $5 Trillion Market Cap. Here's What Investors Should Watch Under His Successor. was originally published by The Motley Fool

Since succeeding Warren Buffett as CEO of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) last January, Greg Abel has made some major changes to Berkshire's stock portfolio. In the two quarters since taking the helm of the Oracle of Omaha's holding company, Abel has both increased stock holdings and jettisoned many positions, including a few held for many decades. However, Abel hasn't materially decreased Berkshire's positions in Apple, American Express, Alphabet, Bank of America, and Coca-Cola. During Q2 2026, Berkshire trimmed its BofA stake by 5.9%, while increasing its Alphabet position by 45.2%. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » These five blue chip stocks now account for around 60% of its investments in U.S.-listed equities. Yet while this indeed represents high concentration, is that in itself a major risk? Not necessarily. It's unfair to call Berkshire Hathaway's stock portfolio concentrated under Greg Abel's watch. After all, it was Warren Buffett's penchant for long-term, high-conviction investments that led to such high concentration in the first place. Namely, that's the case with American Express and Coca-Cola, two of the longest-held Warren Buffett investments. Berkshire has held these stocks for over 30 years. Buying them at far lower prices than they trade for today, Berkshire's high concentration in them is due to long-term compounding. In his initial letter to shareholders, Greg Abel indicated that Berkshire's portfolio will stay largely concentrated in these names. That said, Abel did leave the door open for Berkshire to "significantly adjust a holding if we see fundamental changes in its long-term economic prospects." That may be the story with BofA, which, as mentioned, is a position Berkshire continued to pare down. Abel's letter also said nothing about increasing a position, as has occurred with Alphabet. Last quarter, the company increased its position by around $17 billion. Although attributed to Abel, don't discount Buffett's role in the increased allocation to Google's parent company. According to published reports, Buffett, who still serves as Berkshire's chairman, is the one who pushed for the increased stake. Berkshire may have much of its stock portfolio in just five investments, but this overstates the extent to which these risks affect Berkshire Hathaway as a whole. However, even if the largest equity position, Apple, worth around $70.5 billion, were to experience a severe drawdown, the net impact would be relatively modest. Here's how: If Apple fell 50%, the value of Berkshire's position would fall by $35.25 billion. That's a steep loss in absolute terms, but compare it to the company's $1 trillion market cap and $750 billion in shareholders' equity. Also, in terms of liquidity, between its $365.5 billion cash position and its operating businesses, which generate around $45 billion annually, it's not as if Berkshire will be "forced" to sell in a cash crunch. Still, there is a larger risk to keep in mind, if not concentration risk: performance risk. Irrespective of whether upping the ante on Alphabet is Buffett's or Abel's idea, Abel will own the outcome. Abel will also be "on the hook" for future investment choices, which, in the long run, will need to measure up to Buffett's track record. Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,308!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,286,826!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 27, 2026. Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, American Express, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy. Greg Abel Has Kept 60% of Berkshire's $359 Billion Stock Portfolio in Just 5 Companies, Even After Eliminating 16 Other Positions in His First Quarter. Is That Concentration a Risk for Shareholders? was originally published by The Motley Fool

HP (NYSE:HPQ), a personal computers and printing hardware provider, closed at $29.62, down 2.93%. Investors focused on weak PC shipment trends and margin pressure from higher memory and commodity costs, while watching component costs and PC demand. Trading volume reached 38.4M shares, coming in about 118% above its three-month average of 17.6M shares. S&P 500 (SNPINDEX:^GSPC) closed at 7,730, up 0.71%, and the Nasdaq Composite (NASDAQINDEX:^IXIC) closed at 26,541, up 1.57%. Among personal computers, printers, and related technology hardware names, Dell Technologies (NYSE:DELL) closed at $471.80, up 1.72%, while Apple (NASDAQ:AAPL) closed at $314.58, up 0.36%, highlighting a firmer tone for sector rivals despite HP's decline. HP reported sales and adjusted EPS growth of 13% and 11% in Q3, easily surpassing Wall Street estimates, but the stock dipped 3% today regardless. Even accounting for a tariff benefit, HP still beat expectations for the quarter. However, despite raising guidance to generate roughly $3.1 billion in free cash flow this year, HPQ stock slid as PC shipments declined 16% and margins contracted. Most of HP's sales growth came from price increases implemented to offset soaring input costs. That said, I'd argue Q3's growth shows a decent bit of pricing power, even if shipments dropped, but it's not a long-term solution. Furthermore, HP's AI PC unit posted double-digit sales growth and now accounts for 46% of its PC business. Management believes this figure will exceed 70% by 2028, providing the company with a few years of promising replacement-cycle opportunities. Trading at 10 times forward earnings and guiding to earning $3.1 billion in FCF versus an enterprise value of $33 billion, HPQ stock remains quite cheap, but operates in a brutally competitive industry. Before you buy stock in HP, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and HP wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,308!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,286,826!* Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 27, 2026. Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and HP. The Motley Fool has a disclosure policy. Stock Market Today, Aug. 27: HP Slips 3% on Weak PC Shipments Despite Fiscal Q3 Beat was originally published by The Motley Fool

(Bloomberg) -- Wall Street is eagerly anticipating Nvidia Corp.'s (NVDA) earnings on Wednesday afternoon, not so much for what the numbers will say about the chip giant, but for what they mean to artificial intelligence investors and the market itself. Most Read from Bloomberg Lutnick's Intervention in Canada Talks Draws Praise, Blame Apple Gears Up to Launch Its First New Mac Mini in Two Years Xi Signals Defiance as US Threatens Sanctions Over Iran Help US Weighs More Trade Measures Against Canada After Retaliation Bessent's Mentor Druckenmiller Calls Bond Buying a Mistake "Nvidia is the best barometer for AI spending," said Rob Conzo, chief executive officer of the Wealth Alliance, which owns Nvidia shares in several portfolios. "It will help determine if hyperscalers are still accelerating, from an infrastructure perspective, or if they're becoming more disciplined." The company's shares have been on a wild ride this year, sinking through the winter, then soaring through the spring, and bouncing around all summer. They're coming off a seven-day losing streak, matching the longest since 2019, in which they lost 7.5%. And that follows a 19% leap from late July through mid-August. All told, Nvidia is up 14% in 2026, a decent showing but still a far cry from its past performance. At this time last year, the stock had gained 34%, and in 2024 it was soaring more than 150%. The reason is hardly a secret, with investors increasingly cautious about the durability of the AI trade with inflation remaining high, interest rates rising and geopolitical risks all over the place, whether it's the US's military and economic war with Iran or its trade war with Canada. The tech-heavy Nasdaq 100 Index suffered its worst month in more than a year in July, falling 6.6% as investors dumped the shares of companies exposed to the AI buildout amid concerns about how much longer the heavy spending would last. But since its July 29 trough, the index has regained much of that lost ground, led by memory and storage companies like Sandisk Corp. and chipmakers such as Marvell Technology Inc. Wall Street expects Nvidia to deliver stellar results for the fiscal second quarter, which ended July 31. Analysts project that revenue nearly doubled from a year ago, which would be the fastest pace in two years, as did net income, according to data compiled by Bloomberg. That, however, isn't what the market is focused on. Rather, investors want to hear what Chief Executive Officer Jensen Huang has to say about capital spending by its biggest customers, future demand and a spate of new financing deals that involve Nvidia. Price increases will also be top of mind after some of the company's customers were told that the cost of servers with its AI chips will rise more than 15% in some cases, due to surging memory costs. "This will be a very interesting report, but it isn't so much about the numbers," Conzo said. "The forward guidance discussions will be far more in view." Earlier this month, Nvidia said it's partnering with Wall Street firms including Goldman Sachs Group Inc., BlackRock Inc. and Apollo Global Management Inc. to provide $500 billion in financing for AI infrastructure. Nvidia also agreed to spend as much as $105 billion to back a data center campus in Ohio that will be leased by OpenAI. "They're going to need to discuss those two big partnerships or agreements in good detail and sort of calm the market's fears around the circularity of financing," said Shaon Baqui, a senior equity analyst at Janus Henderson, which holds a substantial position in Nvidia. The big questions from investors are how much of Nvidia's revenue is being driven by its own financing and if it's creating or bringing forward demand. Huang's comments alone likely won't be enough to resolve some of the issues the market is having with AI investments at the moment, according to Daniel Pilling, portfolio manager at Sands Capital Management, which owns the stock. "It's going to be a really important quarter for them, not because of what they're doing on the balance sheet, but what they're doing off the balance sheet," said Brian Mulberry, chief market strategist at Zacks Investment Management, which holds Nvidia shares. "It effectively makes Jensen Huang kind of like the pope of AI. He gets to bless any of these deals." Even with a market capitalization of more than $5 trillion, the biggest in the world, Nvidia's equity valuation has been steadily eroding this year. At roughly 19 times earnings expected over the next 12 months, the stock is close to the cheapest it has been since late 2018, before AI exploded and when the chipmaker's market value was less than $100 billion. "Nvidia isn't the most exciting part of the market, or even the AI trade, anymore," said Randy Hare director of equity research at Huntington National Bank, which owns the stock. "Right now the tightness is in the memory space, the optical area, energy. Momentum is shifting from semis to other parts of infrastructure, and from there it could shift to hyperscalers again." In terms of trading into the earnings, Nvidia shares haven't performed well after its results over the last few quarters, falling the day after five of its last six reports, according to data compiled by Bloomberg. The options market is pricing in a roughly 5% swing in either direction. Of course, the shares could get a boost from a strong report and forecasts that calm investors' nerves, potentially reinvigorating the broader AI trade. Wall Street will be listening for updates on Nvidia's Vera Rubin and Blackwell chip sales as well as its outlook for gross margins. "Their stock in my view is at a bit of a nexus, like a bit of a turning point," said Melissa Otto, head of technology, media and telecommunications research at Visible Alpha. "We're going to get a lot more visibility, hopefully, and commentary around Rubin and the performance of Blackwell." Tech Chart of the Day Top Tech Stories Meta Platforms Inc. and state attorneys general have discussed a possible mid-trial settlement of a blockbuster case accusing the company of deliberately designing Facebook and Instagram to addict teens, people familiar with the matter said. OpenAI said that its new Jalapeno chips performed better than Nvidia's current lineup during testing, underscoring the company's progress developing AI processors in-house. SoftBank Group Corp. is talking with investment banks about a potential $10 billion to $20 billion bond offering to help refinance a loan for its investment in US tech giant OpenAI, according to people familiar with the matter. Apple announced upgraded Mac mini and Mac Studio desktop computers, giving the in-demand machines major processor upgrades. Earnings Due Earnings Postmarket: --With assistance from Subrat Patnaik and David Watkins. Most Read from Bloomberg Businessweek The Diamond Industry's Old Guard Wants You to Buy 'Natural' Plus-Size Clothes Are Disappearing at Retailers in GLP-1 Era Drones, Balloons and Sound Waves: New Ways to Fight the World's Fires Moldy Peanuts Can Be Deadly. The Solution Is More Mold New York's Israeli Restaurants Are Doing Better Than You Might Think ©2026 Bloomberg L.P.

Burry called LULU "screaming cheap," doubling his stake to 17.4% of his portfolio while shorting NVDA at a $5.2 trillion valuation. Burry's short book extends to QQQ and SOXX, but he refuses to short AAPL, calling it "permacostly" despite its rich valuation. With 29 of 34 analysts rating LULU a Hold, Burry's contrarian bet on its forward P/E of 11 stands nearly alone on Wall Street. Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now. Michael Burry is heading into the most important earnings report of the AI cycle positioned against it. NVIDIA (NASDAQ:NVDA) reports fiscal Q2 2027 results on Wednesday, Aug. 26, 2026, after the market close, and the Scion Asset Management founder spent the weekend on his Substack, Cassandra Unchained, defending a very different kind of stock. His comments were reported by Stocktwits reporter Prabhjote Gill on Monday, Aug. 24, 2026. These were self-disclosures in a paid Substack chat, made in the days leading up to the single biggest quarterly release on the calendar for the AI trade. Riding a mania is one thing and planning the exit is another, which is exactly what we walked through in a free bubble survivor's handbook. Burry has publicly discussed short positions involving Nvidia, Micron Technology, Oracle, Nebius, the iShares Semiconductor ETF and the Invesco QQQ Trust. That spans the AI capex complex, from the GPU designer to the memory supplier, the hyperscale software partner, the neocloud, and the two index vehicles most exposed to the theme. Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now. Nvidia enters the report richly valued and richly expected. The stock closed Friday at $214.72, giving the company a market capitalization of roughly $5.2 trillion at a trailing P/E of 33. Last quarter, Nvidia posted revenue of $81.61 billion, up 85.23% year over year, with Data Center revenue of $75.25 billion and non-GAAP gross margin of 75.0%. Management guided Q2 to $91.0 billion, plus or minus 2%, a number that excludes any Data Center compute revenue from China. The full Q1 FY27 release is on file with the SEC. The centerpiece of his long book is Lululemon (NASDAQ:LULU). Burry wrote on Substack, "I believe LULU is screaming cheap here." A reader in the Substack chat observed that he appeared to have nearly doubled his LULU position, and that it now accounts for 17.4% of his holdings versus 9% for Molina Healthcare, after adding to both. Tracking of his Substack disclosures also suggests larger long positions in Zoetis, MercadoLibre, JD.com and Adobe. Burry has said he moved his Alibaba position entirely into JD.com and would need Alibaba to fall by half before reconsidering. Lululemon closed Friday at $121.07. As of that Aug. 21 close, the stock was down 41.74% year to date, down 38.91% over one year, and down 69.57% over five years. It was up 6.79% over the prior month and up 4.65% in the Friday session itself. That Friday gain settled before Burry's weekend comments surfaced. The reasons for the drawdown are in the company's own numbers. Per Stocktwits reporting on Q1 2026, revenue rose 4% to $2.5 billion, Americas revenue fell 3%, and comparable sales in the Americas declined 5%. International revenue increased 22%. The company also cut its full-year 2026 outlook to revenue of $11 billion to $11.15 billion, from a previous $11.35 billion to $11.5 billion, and cut EPS guidance to $10.95 to $11.15 from $12.10 to $12.30. Per Koyfin data cited by Stocktwits, 29 of the 34 analysts covering Lululemon rate it a Hold, with one at Buy, and the average price target is $127.92. That aligns with the Alpha Vantage consensus target of $127.92 and a forward P/E of 11. Burry is nearly alone on this call. Burry has previously argued that investors became too pessimistic on Lululemon, pointing to tangible book value per share, which he said doubled from roughly $20 to $40 over three years. He compared the market's treatment of the stock to GameStop in 2019, and argued that Lululemon's relative value was more compelling than some large technology stocks including Microsoft. Burry was asked when he might short Apple (NASDAQ:AAPL) and declined. His comment: "It is like Costco. Once in a blue moon I take my chances. It's just permacostly." For Apple, Burry treats valuation as a reason to stay out of the stock while also keeping it off his short book. Apple closed Friday at $309.35, up 38.06% over one year and up 14.10% year to date, and last reported nine consecutive EPS beats, with Q3 FY26 EPS of $2.02 on revenue of $109.42 billion. Burry is short the biggest name in AI hardware and long a beaten-down apparel retailer that most of Wall Street will not touch above Hold. Nvidia's put/call ratio across the full options chain sits at 0.60, and the December 2026 expiration is above 1.29, indicating heavier put positioning further out. Wednesday's release will land into that setup. Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now. Contact [email protected] for any questions or corrections.

The 2026 Q2 earnings cycle continues to wind down, with the reporting docket starting to get quiet. The period has been another one of positivity so far, with several companies, including Apple AAPL, EMCOR Group EME, and Johnson & Johnson JNJ, all reporting record-breaking results in one way or another. Apple’s results reflected its strongest June-quarter period ever, with quarterly revenue of $109.4 billion growing 16% year-over-year. Adjusted EPS came in at $2.02, growing an even stronger 29% from the year-ago period. It also reported double-digit revenue growth across iPhone, Mac, and Services, with similar gains in every geographic segment. Its installed base of active devices reached an all-time high across its major product categories, with its overall gross margin seeing a benefit from tariff refunds. As usual, the iPhone accounted for the mega-cap tech giant’s largest revenue source, with sales coming in at $54.3 billion and growing 21.6% year-over-year. Image Source: Zacks Investment Research Though iPhone reflects the greatest portion of sales, the Services category has quickly grown to be another big top line contributor over recent years, with quarterly sales of $30.7 billion reflecting a 12% YoY increase. Apple’s cash-generating abilities have always been a critical part of investor sentiment surrounding the stock, with it also reporting record operating cash flow for its June-quarter period. The strong cash-generating abilities have allowed shares to trade at a premium, with its dividend payouts pleasing investors looking to obtain top-tier tech exposure paired with paydays. EMCOR similarly posted a double-beat relative to our consensus expectations, with revenues of $5.2 billion reflecting a record and growing nearly 20% YoY. Adjusted EPS of $9.06 reflected a second-quarter-specific record, up 35% from the same period last year. The company didn’t just post records across headline figures, though, with remaining performance obligations (RPO) of $17.1 billion similarly reflecting an all-time high and surging 44% YoY. The favorable results were capped off with increased sales and earnings guidance, with the stock sporting a favorable Zacks Rank #1 (Strong Buy). Revenue has shown huge growth over recent years, with the record-high RPO in the release helping keep the overall trajectory bright. Image Source: Zacks Investment Research Johnson & Johnson shares have quietly delivered a huge gain in 2026 so far, up nearly 30%. The gain over the last month has similarly shown nice outperformance relative to the S&P 500, with the recent results leading to positive momentum post-earnings. Sales of $25.3 billion reflected a new quarterly record for the company, growing by a solid 6.6% year-over-year. It also increased both its current fiscal year sales and adjusted EPS guidance, with JNJ now on track to meet its 2026 target of more than $100 billion in annual revenue for the first time in its history. Image Source: Zacks Investment Research Bottom Line The 2026 Q2 earnings season continues to roll along, and results have been positive for many companies, including Apple AAPL, EMCOR Group EME, and Johnson & Johnson JNJ. Not all companies have seen great post-earnings reactions, but the overall earnings landscape remains one of strength. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report EMCOR Group, Inc. (EME) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Apple Inc. (NASDAQ:AAPL) announced on August 18, 2026, that alternative app stores in the European Union will be charged a 5% commission on in-app purchases. It is part of a new fee structure the company says will "resolve" its disagreements with EU regulators over the Digital Markets Act. Apple has fought regulators over its App Store model for years, and this overhaul comes right as the App Store itself is showing real cracks. Is this a genuine concession that ends Apple Inc. (NASDAQ:AAPL)'s European legal fights, or a calculated move that keeps most of Apple's fee revenue intact while looking like compliance? Apple Inc. (NASDAQ:AAPL)'s new tiered system charges 26% for purchases made through Apple's own payment system, 20% for apps using their own payment processing, and 15% for apps linking to an external website. It charges just 5%, what Apple calls a Core Technology Commission, for apps distributed through third-party stores or the web, with some fees cuttable in half through Apple's programs. Apple said the new structure resolves its dispute with the European Commission and that it worked with regulators to add child-safety measures like parental purchase restrictions. For the first time since 2023, Apple Inc. (NASDAQ:AAPL) didn't highlight the App Store as a top driver of services growth in its most recent quarter, according to a Morgan Stanley note. CFO Kevan Parekh noted slower mobile gaming and business-model changes in certain countries as factors. Only a handful of regions, including Europe, Japan, and Brazil, require Apple to allow third-party app stores. Apple is separately fighting to restrict web payment links in the US as part of the ongoing Epic Games litigation, showing the European resolution doesn't end Apple's broader regulatory fight. Apple Inc. (NASDAQ:AAPL) was held by 170 hedge funds as of Q1 2026, up from 169. Apple is settling its European fight on its own terms, keeping a meaningful cut of App Store revenue even in its most regulated market, right as the App Store's US growth engine shows real signs of slowing. While we acknowledge the potential of AAPL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: BP p.l.c. (BP) vs. Shell plc (SHEL): Two Oil Majors Cash In on the Iran War, But Tell Different Stories and ArcelorMittal (MT) vs. Microsoft Corporation (MSFT): A Steel Giant Bets Its Future on Azure. Disclosure: None. This article is originally published at Insider Monkey.