Apple (NASDAQ:AAPL) stock is on many investors’ radars this week for several reasons. Specifically, investors will be monitoring Apple stock due to the coronavirus outbreak in China, a potentially costly patent raw, and important hires for the company.
Investors watch Apple stock
Early this month, Apple moved to shut its China stores that sell iPhones and other products. The company wanted to control the spread of the deadly coronavirus. The stores closed and could impact iPhone sales in China. Apple looked to China for 15% of its total revenue in the last holiday quarter.
Foxconn, a company that manufactures iPhones, closed its Chinese factories due to the coronavirus. The Foxconn factory shutdowns could cause an iPhone supply shortage, which could impact sales. Notably, the iPhone is Apple’s main revenue source.
However, Reuters reported on Wednesday that Foxconn plans to resume some production this month.
The hiccups in China haven’t impacted investors’ appetite for Apple stock. The stock has gained about 5.0% since Apple closed its China stores on February 1.
Blow in the high stakes patent row
Apple suffered a setback in its long-running patent dispute with VirnetX Holding. A federal appeals court refused to grant Apple’s wish to reopen a previous case in the dispute. The court decision leaves the company exposed to potential fines that could be in the hundreds of millions of dollars.
Key hires in the services business
Apple’s hiccups in China and the VirnetX patent row haven’t deterred the company from expanding its teams. Recently, Apple made important hires in its services division. This week, the company added Warner Music Group veteran Jeff Bronikowski to its subscription music team. The company also hired former Netflix engineer Ruslan Meshenberg for its Apple TV+ team. Apple depends on the services business to drive its future growth.
Apple stock has gained 8.84% YTD (year-to-date) as of Tuesday. However, the company is still near the bottom of the FAANG group. Facebook (NASDAQ:FB) stock has only risen 0.95% YTD. Amazon (NASDAQ:AMZN) tops the FAANG group chart with gains of 16.4% YTD. Netflix (NASDAQ:NFLX) and Alphabet (NASDAQ:GOOGL) stocks have gained 15% and 13% YTD, respectively.