Samsung will take $5.3 billion hit from Note 7 recall


Galaxy Note 7 water wet
The Note 7 is all washed up.
Photo: Killian Bell/Cult of Mac

Issuing a global recall for the Galaxy Note 7 is going to cost Samsung even more money than it expected.

Samsung released a statement to investors today revealing that its fiery phablet will hurt overall profits for the next two fiscal quarters, costing the company a total of $5.3 billion.

Apple invests $1 billion in Chinese Uber rival

Apple just made a big investment in China.
Photo: Cult of Mac

Apple has invested $1 billion in Chinese Uber rival Didi Chuxing in a move that continues Apple’s push into China and confirms the company’s interest in shaking up the automotive industry.

According to Tim Cook, the deal “reflects our excitement about their growing business … and also our continued confidence in the long term in China’s economy.” Perhaps more importantly, it could give Apple strategic insights and competitive advantages when it comes to Apple Pay and a possible Apple Car.

Now is a great time to bet on Apple, says Goldman Sachs


Apple store istanbul
Step right up and place your AAPL bets.
Photo: Apple

Stocks have been getting crushed all year, but according to Goldman Sachs, now is the perfect time to starting betting on Apple options.

Goldman Sachs’ options team has pointed out that Apple options prices are especially low right now compared to the the S&P 500, making it a great target for purchasing a ‘straddle’, which could score investors a big payday if Apple shares move higher or lower than currently expected.

Straddle options work by allowing investors to purchase a bullish and bearish option on a stock so that they make money off the volatility of shares. It’s an advanced investment for most traders to make and it’s not cheap, but Susquehanna’s Stacey Gilbert explains that it’s cheap relative to volatility expectations for the overall market.

Apple is ‘biggest destroyer of wealth this year’


Apple stock
Apple stock is leading the way for losing investors money.
Screenshot: Evan Killham/Cult of Mac

We can add another award to Apple’s long list, although the company might not be too happy to accept it: The iPhone maker’s stock lost the most value of any tech company this year.

The news comes out of a study from USA Today that reports a shocking average 14 percent decline in value from 462 tech companies. That drop resulted in total losses of $529 billion, but Cupertino is the lead horseman in this year’s stockpocalypse.