24/7 Wall Street
16 Oct 2026, 16:45 UTC · 1h ago
Apple and Alphabet Are Especially Scared of a Blue Wave
Impact · against what's priced in
The political risk of a 'Blue Wave' serves as a catalyst for downward pressure on both names, specifically by threatening the high-margin Services revenue and default search payments that the current valuations assume will remain stable. While Alphabet's lower multiple provides a buffer, the potential for legislation to break up search distribution directly undermines the funding model for its AI expansion.
- AAPL−0.50
Challenges what's priced in
- The price assumes
Stable iPhone and Services revenue at current growth rates
The market is already paying a premium (45x earnings) for stable growth, but a Democratic Congress could pass app-store legislation targeting the 75.6% margin Services business and kill the payments Apple receives from Google.
What AAPL's price assumes · Aug 31
