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27%

Back in 2021, a federal judge in Epic Games v. Apple decided that the iPhone maker would have to allow app makers to point consumers beyond Apple’s closed App Store to make payments. The idea was that app makers would no longer exclusively have to pay the 30% cut of purchases made within their apps simply for being included in the App Store.

In response, Apple let developers point users to their own websites for purchases, but still collected a commission of 27% on those purchases.

Yesterday, that same judge, Yvonne Gonzalez Rogers, told Apple it had disregarded her court’s ruling and said Apple could no longer collect commissions on off-app purchases, nor could it decide how developers direct people to their sites in the first place.

“Apple sought to maintain a revenue stream worth billions in direct defiance of this Court’s Injunction,” she wrote in the ruling. The judge also referred the matter to a US attorney to investigate whether there should be criminal proceedings as well.

“This is an injunction, not a negotiation,” Gonzalez Rogers added. “There are no do-overs once a party willfully disregards a court order. Time is of the essence. The Court will not tolerate further delays.”

The stock is down 1.5% premarket.

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Apple reports Q4 earnings and revenue slightly above Wall Street estimates

The iPhone maker reported its FY 25 fourth-quarter earnings Thursday.

#10

Tesla just recalled its beleaguered Cybertruck for the 10th time since the vehicle was introduced two years ago. This time the company recalled about 6,000 of the “apocalypse-proof” vehicles due to what the National Highway Traffic Safety Administration says is an improperly installed “optional off-road light bar accessory” that could become disconnected from the windshield while driving, and could “create a road hazard for following motorists and increase their risk of a collision.”

CEO Elon Musk once said he could sell up to 500,000 of the stainless steel behemoths a year. In the first three quarters of this year, the company has sold only about 16,000.

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Analysts lower Meta price targets after social media giant says AI capex will keep climbing

Meta may have posted record revenue Wednesday but the stock is deeply in the red in the wake of its third-quarter earnings report, after the social media company said that its capital expenditure on AI would continue to rise.

The earnings prompted a number of analysts to lower their price targets or downgrade the stock.

RBC Capital lowered its price target to $810 from $840. Bank of America Securities lowered its price target to $810 from $900. Barclays, JPMorgan, Deutsche Bank, and Wells Fargo also lowered their price targets on the company.

Earlier today, Benchmark downgraded its rating to a “hold” from a “buy.” Oppenheimer downgraded the company to “perform” from “outperform,” saying the “significant investment in Superintelligence despite unknown revenue opportunity mirrors 2021/2022 Metaverse spending.” Ouch.

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