The iPhone maker’s shares rose in pre-market trading following reports that it will end its “buy now, pay later” service just over a year after it was launched.
The service, called “Apple Pay Later,” allows customers to split purchases between $50 and $1,000 into four payments over six weeks, with no interest or fees.
According to Apple’s website, the company “will no longer offer new loans” for Apple Pay Later, but existing loans will not be affected.
The iPhone maker took the step after announcing that third-party services such as Affirm Holdings and Citigroup would be integrated into the upcoming iOS 18 software.
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“Starting later this year, users around the world will be able to use their credit and debit cards, as well as installment loans offered through lenders, when they make purchases with Apple Pay,” the company said in a statement. “With the introduction of this new global installment loan service, Apple Pay Later will no longer be available in the US.”
Palantir Technologies (PLTR)
The software company’s shares were the most bought stock before the U.S. stock market opened, and analysts at Argus Research initiated coverage of the data analytics software company with a “buy” rating.
Analysts at Argus Research see Palantir benefiting from increased sales to commercial customers, with a $29 price target, and are eyeing artificial intelligence as a potential catalyst for continued growth.
“Software will continue to transform warfare in this century,” Palantir Technologies CEO Alex Karp said in a letter to shareholders in May.
“There is a lot of concern about the application of artificial intelligence in the military, particularly the potential for it to enable more autonomous and self-directed weapons systems,” he added.
But Karp said the company’s software has “become just as essential for eliminating adversaries as it is for protecting innocent people from harm.”
The EV maker’s shares rose in premarket trading after rival Fisker (FSRN) filed for bankruptcy after failing to secure investment due to fading consumer demand.
The Tesla challenger, launched by James Bond car designer Henrik Fisker, has struggled with financial difficulties and seen its shares plummet 99%.
Meanwhile, electric car maker Tesla Inc. CEO Elon Musk told employees on Monday that the company is working on introducing a stock-based compensation plan for its top employees, according to Reuters.
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The plan was announced just days after Musk received shareholder approval for a $56 billion compensation plan that includes stock options and two months after he announced job cuts affecting more than 10% of Tesla’s global workforce in the face of slowing demand for EVs and intensifying price wars with Chinese rivals.
Whitbread (WTB.L)
Premier Inn owner Whitbread said it was confident about the year ahead after increasing sales and cutting costs amid falling inflation.
Whitbread shares rose 4.6% as investors welcomed news that UK trading had strengthened last quarter.
The Bedfordshire-headquartered group saw total sales rise 1% year-on-year to £739 million in the 13 weeks to 30 May 2024. Sales were “driven by improving trading in the UK and continued growth in Germany”.
The company’s Premier Inn business in Germany reported a 15% increase in total sales.
Hospitality Group chief executive Dominic Paul said: “While our usual booking patterns provide limited visibility into the future, we remain confident in our outlook for the full year as future bookings remain strong.”
“This reflects a more encouraging trading performance in the UK, our strong commercial programme and improved cost efficiencies, as well as good progress in Germany.”
Mr Paul added that Whitbread was on track with plans to restructure its food and drink business announced earlier this year, which will see it close or convert more than 200 restaurants and cut around 1,500 jobs.
He said the 150 million pound share buyback was progressing well, with 3.2 million shares purchased so far for 96 million pounds.
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