Apple (NASDAQ:AAPL) stock is on the rise today despite reports the tech giant plans to tighten up its hiring and spending next year. Tech stocks across the board are up today on the news about AAPL stock.
The iPhone maker is reportedly bracing for a wider economic slowdown next year. With inflation and interest rates continuing to rise, a number of major tech operators have begun to prepare for a potential recession. Companies like Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Microsoft (NADSAQ:MSFT) have stated they would limit hiring ahead of growing recession rumors.
Apple may be acting in response to International Business Machines’ (NYSE:IBM) recent earnings call. The tech company lowered its free cash flow outlook this year to reflect suspending operations in Russia. Otherwise, IBM had a relatively successful quarter, benchmarked by strong sales growth. CEO Arvind Krishna told Barron’s IBM maintains its long-term outlook of $35 billion in free cash flow through 2024.
Despite the contractionary news, Apple and friends are doing pretty well today. AAPL stock is up almost a percent heading into the afternoon, as the S&P 500 and tech-centric Nasdaq eye 1.5% and 2.5% jumps, respectively. Meanwhile, Meta and Alphabet stocks are up more than 2% so far today.
What else is going on with Apple lately?
AAPL Stock Climbs on Hiring Slowdown, Keyboard Settlement
Adding to the slate of Apple news, the tech giant recently agreed to pay $50 million to settle a class-action lawsuit from disgruntled customers. The lawsuit claims Apple knowingly concealed the fact that its MacBook laptop keyboards were prone to error, costing its customers millions in repair fees. Apple filed the preliminary settlement Monday night in San Jose, California and denied any wrongdoing. The filing is still pending a judge’s approval.
As per the suit, Apple MacBooks sold between 2015 and 2019 in seven U.S. states suffer from sometimes debilitating keyboard failures. The keyboards frequently become difficult to operate with just small amounts of dust or debris. This results in sticky or otherwise unresponsive keys for many customers.
As per the settlement, customers who fall under the suit are entitled to payouts between roughly $50 and $395, depending on how many times they replaced keyboards or keycaps.
Despite the string of bad press, Apple is enjoying a strong day in the market following Monday’s 2.1% loss.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
