President Trump has urged tech giant Apple (AAPL) to ditch its diversity, equity and inclusion (DEI) programs and policies – only 24 hours after shareholders gave them their backing.
Trump Calls DEI a “Hoax”
Trump, who since his first day back in office in January, has derided DEI for being both “illegal and immoral,” took to social media to lament Apple’s decision. In capital letters he boomed that Apple should “get rid of DEI rules, not just make adjustments.” This referred to comments made by Apple boss Tim Cook that although the company remained committed to a culture of belonging DEI changes could be made as laws evolved.
Far from sitting on the fence on this subject, Trump continued to thunder in his post: “DEI was a hoax that has been very bad for our country. DEI is gone!”
Many blue-chip corporations have already followed his lead such as retailer Target (TGT), Meta Platforms (META) and Walmart (WMT). But at its shareholder meeting yesterday Apple faced down a motion from the National Center for Public Policy Research against its DEI policies. It targeted Apple’s “Supplier Diversity Program,” its general promotion and hiring practices, employment of a vice-president of inclusion and diversity, and donations to organisations supporting DEI.
Apple and Trump Relationship
It warned that Apple could see an increase in discrimination cases if they continued such policies. However, Apple said it had an “active oversight effort” to avoid legal risks, and that the motion would inappropriately restrict management decision making.
Apple and Cook, who attended Trump’s inauguration, are like other tech groups attempting to curry favor with the new administration. They appear to see an American first, business- friendly Trump leadership as being potentially pivotal in helping them drive growth in areas such as artificial intelligence and potentially fend off competition from Chinese rivals. But there are obvious room for clashes when it comes to some political, social and economic issues.
Is AAPL a Good Stock to Buy Now?
On TipRanks, AAPL has a Moderate Buy consensus based on 18 Buy, 11 Hold and 4 Sell ratings. Its highest price target is $325. AAPL stock’s consensus price target is $250.95 implying an 1.58% upside.
