11:55 AM New York City, New York – Apple, Microsoft, Bank of America, Goldman Sachs, Citigrop and other global corporations announce plans to repatriate foreign income and take advantage of new tax laws. Uber sells 15% stake to Softbank worth $9 billion.
Tollbooth Index slumped 25.96 or 0.2% to 13,806.13.
) gained 39 cents to $175.64 and the biotechnology products maker forecasted to incur tax expenses of $6 billion to $6.5 billion as the company plans to repatriate its foreign income over a period of time.
Bank of America Corp
) fell 11 cents to $29.68 after the bank said net income in the quarter ending in December 2017 to reduce by $3 billion as the global bank repatriates foreign income and incurs one-time expense.
Goldman Sachs Group Inc
) declined 1% or $2.66 to $253.84 after the investment banking and brokerage services provider estimated fourth-quarter profit to drop by about $5 billion after the U.S.
About 65% of the fourth-quarter profit decline is linked to the one-time tax of foreign profit repatriation to take advantage of the latest reform in the U.S. tax laws.
According to the revised laws, foreign cash repatriated profit will incur tax of 15.5% and not the prevalent 35% tax and non-cash profit will incur tax of only 8%.
Tesla, Inc., formerly Tesla Motors, Inc
) dropped $2.20 to $313.16 after the electric vehicles maker estimated that a range of 29,000 to 30,000 deliveries and plan to produce about 10% fewer Model S and Model X in fourth-quarter compared to the third-quarter after reallocation of some of the manufacturing workforce.
Uber Technologies Inc
, the global taxi services provider’s shareholders agreed to sell 15% stake worth about $9 billion at a 30% discount to consortium lead by Japanese conglomerate SoftBank Group Corp and Dragoneer Investment Group.
The latest values the companies at $48 billion, 30% lower than its peak value just about a year ago. Despite the latest valuation cut, the global taxi services company is still the most valued start up ever.
The troubled taxi services provider plans to launch initial public offering in fiscal 2019.