Apple Faces $14.4B EU Tax Bill in 2025; Google Hit with $2.7B Fine – Key Market Updates

Market Highlights for September 10, 2024

The European Court of Justice has delivered significant rulings impacting major tech giants. Apple (AAPL) is mandated to pay a staggering 13 billion euros ($14.4 billion) in back taxes to Ireland after losing its final appeal regarding alleged illegal tax benefits. Additionally, the court confirmed a 2.4-billion-euro ($2.7 billion) antitrust fine against Alphabet's (GOOGL) Google for abusing its market dominance. Meanwhile, Oracle (ORCL) surged following impressive fiscal Q1 results and a strategic partnership with Amazon's (AMZN) cloud division. GameStop (GME) is set to report a wider quarterly loss post-market, and AstraZeneca's (AZN) lung cancer drug trial results disappointed investors. U.S. stock futures remain largely steady. Here's what investors should watch today.

1. Apple Ordered to Pay $14.4 Billion in EU Tax Back Payments

The European Court of Justice ruled decisively against Apple, confirming the company benefited from unfair tax arrangements with Ireland over two decades. This ruling overturns a previous decision that had nullified the 13 billion euro tax recovery order. Apple’s shares dipped 1% in premarket trading despite unveiling its AI-powered iPhone 16 earlier this week.

2. Google’s $2.7 Billion Antitrust Fine Upheld by EU Court

Alphabet’s appeal was rejected as the court upheld the 2017 European Commission ruling that fined Google for favoring its own shopping services unfairly. The $2.7 billion penalty remains in place, reflecting ongoing regulatory scrutiny. Alphabet’s stock showed little movement before the market opened.

3. Oracle Shares Climb 8% on Strong Earnings and Amazon Collaboration

Oracle’s stock jumped 8% in premarket trading after surpassing fiscal Q1 expectations and announcing a new partnership with Amazon Web Services. This collaboration boosts Oracle’s cloud services, especially in AI, contributing to a 30% stock gain year-to-date.

4. GameStop Anticipated to Report Larger Quarterly Loss

GameStop, known for its meme-stock surge in 2021, is expected to disclose a decline in revenue and a wider net loss for Q2, with comparable store sales falling 23% year-over-year. Shares remained steady before the earnings release.

5. AstraZeneca Shares Fall After Lung Cancer Drug Trial Misses Targets

AstraZeneca’s shares dipped after Phase 3 trial results for its lung cancer treatment failed to show a statistically significant improvement in overall survival rates, disappointing investors and raising concerns about the drug’s future prospects.

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