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Goldman Sachs Eyes Early Apple Card Exit — What It Means for Investors and Apple's Ecosystem – Yahoo Canada Finance


Goldman Sachs (NYSE:GS) is eyeing an early exit from its Apple Card partnership, originally set to run through 2030, signaling a potential shake-up for both companies. CEO David Solomon dropped the news on a recent earnings call, pointing to mounting financial losses and regulatory headaches. Since its 2019 launch, the Apple Card has been a fan favorite for its seamless iOS integration, but it’s been a financial drag for Goldman, hammering its Platform Solutions unit with an $859 million net loss in 2024. Toss in a $90 million fine from the Consumer Financial Protection Bureau last year, and it’s no wonder Goldman is rethinking its commitment.

Despite the Apple Card’s struggles, Goldman’s core businesses are thriving. The firm flexed its muscles in Global Banking & Markets, reporting a jaw-dropping 33% revenue surge in 2024, with strong gains in equity and debt underwriting. CEO David Solomon didn’t hold back his optimism, forecasting better returns for Platform Solutions by 2025 or 2026 as the bank trims its focus and dials in on what it does best. Rumor has it that JPMorgan Chase is in the mix as a potential replacement for Apple’s next card partner, though no deals are locked in yet.

As for Apple (NASDAQ:AAPL), this shake-up could rattle its Apple Card and Savings products, both of which lean heavily on Goldman for backend support. A partner swap might disrupt features like Daily Cash rewards or account management, and interest rate changes could leave users grumbling. But let’s not count Apple outits knack for user-first innovation means they’ll likely pull off a smooth pivot, keeping customers and their ecosystem intact. Investors should keep an eye on how this plays out, as it could reshape the financial trajectory for both giants.

This article first appeared on GuruFocus.



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