Taiwan Semiconductor Manufacturing Co. (TSM - Get Report) , a key supplier to tech giant Apple, posted weaker-than-expected second quarter earnings Thursday and softer third quarter guidance amid signs that smartphone chip demand could be slowing.
TSMC said net profit for the three months ending in June fell 8.6% from the same period last year to T$66.27 billion, missing the Thomson Reuters estimate of T$68.44 billion. Revenue for the quarter fell 3.6% to T$213.86 billion, the company said, although on a U.S. dollar basis that figure rises 3.2% from the same period last year to just over $7 billion.
Watch TheStreet's daily 'Five Before the Bell' Facebook Live show with London bureau chief Martin Baccardax that will talk all things Apple, European markets, American Airlines (AAL) , Donald Trump and Emmanuel Macron's meeting in Paris, and previews the opening of trading on Wall Street.
What's Hot On TheStreet
"At some point it has to fall to gravity," he said told TheStreet's Scott Gamm in an interview. "It's been trading on a different planet for years and now it has to trade on Earth." Amen.
Relax Apple stock bulls: For now, reports suggest a moderate delay in the Apple (AAPL - Get Report) iPhone 8 ramp, rather than something more severe points out TheStreet's Eric Jhonsa. So far, the market has shrugged off concerns on a possible delayed iPhone 8 release (as in it misses the holiday launch window). But it's worthwhile to keep something in mind: Apple shares have lagged the S&P 500 over the past month, so some doubt may be trickling into the bull camp.
This beverage executive just went off the rails: Hat tip to TheStreet's Lindsay Rittenhouse for an insightful interview with SodaStream's (SODA) CEO Daniel Birnbaum, who pulled no punches in his views on PepsiCo (PEP - Get Report) and Coca-Cola (KO - Get Report) .
Said Birnbaum on why his company's stock has surged this year:
The company is addressing mega trends - health and wellness, convenience, consumer choice and good, important values. We have the right product at the right time. Our competition is prehistoric and that might explain the success we've seen around the world, particularly in Japan, New Zealand, Canada, Germany, Norway, all over the world. This is not a local phenomenon. This is a global mega trend. We're looking to embrace a sustainable world for our children to live in.
Birnbaum didn't shut the door on making acquisitions, either.
Visit here for the latest business headlines.