Garmin stock clobbered with a 15% drop amid tariff chaos
Garmin’s stock took a nasty 15% tumble today, sliding from around $218 to roughly $186, a far cry from its peak of $241 in February. It’s a rough day all around, with President Trump’s new tariff plan—10% on everyone, plus extra for the “bad actors”—sending Wall Street into a tizzy. But Garmin is getting hit harder than most!
The broader market’s not exactly throwing a party either. The Dow’s down 3.3%, shedding over 1,400 points, while the S&P 500’s off 4.2% and the Nasdaq’s taken a 5.3% dive. Apple, for comparison, saw its shares dip 9.3%, which isn’t great but looks almost gentle next to Garmin’s plunge.
So what’s got Garmin in such a twist? Well, it’s not just the market’s bad mood—there’s some real meat to this story.
Tariffs and the supply chain squeeze
Garmin’s the kind of company that lives and breathes global supply chains. They’re making GPS gadgets, which include sports watches, car navigation systems and more.
The thing is, lots of those parts are sourced from places like China and Taiwan. Trump’s tariffs, set to kick in April 5 with a baseline 10% and higher rates for certain countries starting April 9, could jack up costs in a hurry.
Investors are clearly spooked that those extra expenses might eat into Garmin’s profits. Apple’s got its own China headaches, sure, but its size and premium pricing give it a bit more wiggle room than Garmin, which plays in more budget-conscious corners of the tech world.
A high flyer comes back to earth
Here’s the thing—Garmin’s been on a tear lately. Up 63% in 2024, it hit that all-time high in February after a killer Q4 earnings report. They pulled in $1.82 billion in revenue, topping the $1.7 billion Wall Street expected, and earnings per share clocked in at $2.41 against a $2.05 forecast.
New toys like the fēnix 8 series had folks feeling pretty good about the stock. The there’s the recently announced subscription push with Garmin Connect+. Of course that had some folks reeling, and there was quite a backlash at the news of the premium tier on social media.
Today’s tariff news feels like a reality check. Maybe a bit of profit-taking too, as jittery shareholders cash out.
Where’s this all heading?
Looking ahead, Garmin’s still got some solid cards to play. They’re projecting $6.8 billion in revenue for 2025, up 8%, and earnings per share of $7.80, a 6% bump—both a hair above what analysts figured. But those numbers came before this tariff mess hit the fan. So we are yet to se if the extra costs dent that outlook.
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The auto OEM business, already wobbly in places like China, could take a bigger hit if carmakers cut back even more. On the flip side, the fitness and outdoor gear—like those fancy new watches—might hold up better if people keep splurging on personal tech.
Wall Street’s keeping a “Hold” stance on Garmin, with an average price target of $220.75. Still, that’s assuming the tariff storm doesn’t blow harder than expected. For now, Garmin’s caught in the same rough seas. It will be interesting to see if the company can steady itself—or if this is just the start of a bumpier ride.
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