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12125.0 | 2023-12-12 00:00:00 UTC | 1 Fintech Stock to Buy at a Bargain in December | AAPL | https://www.nasdaq.com/articles/1-fintech-stock-to-buy-at-a-bargain-in-december | Sometimes being a contrarian can pay off. While it can be a challenge, doing your own homework and not following the crowd are attributes that distinguish some of the best investors.
When it comes to investing in a growth industry, it can be easy to get bogged down by the sheer number of players in the sector looking to capitalize on the same themes. Many investors flock to -- or shun -- the same stocks without really understanding the fundamentals of each underlying business. As a result, some solid companies fall out of favor and are seen as poor opportunities.
For fintech in particular, online payments company PayPal (NASDAQ: PYPL) seems to fit into the category of a negatively perceived stock. As PayPal shares trade near all-time lows, a thorough analysis of the business suggests that now is a lucrative time to scoop up some shares on the dip.
Is PayPal's business broken?
PayPal is an online transactions platform that helps both buyers and sellers, offering a number of merchant solutions within its ecosystem and playing an integral role in the world of digital payments. However, a cursory look at PayPal's financial results might suggest its best days are behind it. The table below illustrates some important metrics for PayPal over the past year.
CATEGORY Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023
Total payment volume (TPV) $336.9 billion $357.4 billion $354.5 billion $376.5 billion $387.7 billion
Net revenue $6.8 billion $7.4 billion $7.0 billion $7.2 billion $7.4 billion
Operating margin 16.3% 16.8% 14.2% 15.5% 15.7%
Data source: PayPal Investor Relations.
Two takeaways from the figures above are that PayPal's revenue growth is lumpy and operating margin is falling. PayPal faces intense competition, and it's not just from traditional financial institutions. The advent of payment services from tech behemoths like Apple and Alphabet has given investors some trepidation over PayPal's market position. On the surface, the results above might give credence to the notion that PayPal is losing market share.
However, a contrarian might think that as online shopping and digital payments become more common, PayPal's addressable market is actually expanding -- thereby providing a low barrier to entry for new competition.
According to research from the International Trade Association (ITA), the global business-to-business and business-to-consumer e-commerce markets are projected to grow at compound annual rates of 14.5% and 14.4%, respectively, through 2026 and 2027. In total, the ITA forecasts more than $40 trillion in e-commerce sales by 2027, with Asia being one of the biggest contributing markets.
Image source: Getty Images.
Does PayPal have any catalysts?
According to the company's third-quarter earnings, while total payment volume (TPV) increased 15% year over year, international TPV grew 19% "driven by strength in Europe as well as improvements in Asia." The tailwinds in Asia could be a subtle growth driver as platforms that support PayPal, including shopping app Temu operated by PDD Holdings, continue to gain traction over the likes of Alibaba.
A more near-term catalyst for PayPal stems from activity surrounding holiday shopping.
Our prelim PayPal #s from Thanksgiving-Cyber Monday show the impact we have with customers:
🟢Processed approx. 400M transactions
🟢Put ~$8M back in customers' hands with cash back + savings
🟢Cyber Mon was largest shopping day of the year with approx. $5.8B in TPV and 87M txns
-- Alex Chriss (@acce) November 28, 2023 | PayPal is an online transactions platform that helps both buyers and sellers, offering a number of merchant solutions within its ecosystem and playing an integral role in the world of digital payments. According to research from the International Trade Association (ITA), the global business-to-business and business-to-consumer e-commerce markets are projected to grow at compound annual rates of 14.5% and 14.4%, respectively, through 2026 and 2027. The tailwinds in Asia could be a subtle growth driver as platforms that support PayPal, including shopping app Temu operated by PDD Holdings, continue to gain traction over the likes of Alibaba. | For fintech in particular, online payments company PayPal (NASDAQ: PYPL) seems to fit into the category of a negatively perceived stock. Total payment volume (TPV) $336.9 billion $357.4 billion $354.5 billion $376.5 billion $387.7 billion Net revenue $6.8 billion $7.4 billion $7.0 billion $7.2 billion $7.4 billion Operating margin 16.3% 16.8% 14.2% 15.5% 15.7% Data source: PayPal Investor Relations. According to the company's third-quarter earnings, while total payment volume (TPV) increased 15% year over year, international TPV grew 19% "driven by strength in Europe as well as improvements in Asia." | Total payment volume (TPV) $336.9 billion $357.4 billion $354.5 billion $376.5 billion $387.7 billion Net revenue $6.8 billion $7.4 billion $7.0 billion $7.2 billion $7.4 billion Operating margin 16.3% 16.8% 14.2% 15.5% 15.7% Data source: PayPal Investor Relations. The advent of payment services from tech behemoths like Apple and Alphabet has given investors some trepidation over PayPal's market position. However, a contrarian might think that as online shopping and digital payments become more common, PayPal's addressable market is actually expanding -- thereby providing a low barrier to entry for new competition. | However, a cursory look at PayPal's financial results might suggest its best days are behind it. However, a contrarian might think that as online shopping and digital payments become more common, PayPal's addressable market is actually expanding -- thereby providing a low barrier to entry for new competition. According to the company's third-quarter earnings, while total payment volume (TPV) increased 15% year over year, international TPV grew 19% "driven by strength in Europe as well as improvements in Asia." |
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12126.0 | 2023-12-12 00:00:00 UTC | 3 Stocking Stuffer Stocks to Buy for Your Loved Ones This Holiday | AAPL | https://www.nasdaq.com/articles/3-stocking-stuffer-stocks-to-buy-for-your-loved-ones-this-holiday | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As the holiday season approaches, investors seeking gift-worthy stocks.
Many turn to the portfolio of renowned investor Warren Buffett, CEO of Berkshire Hathaway (NYSE:BRK-B). After all, the focus is on gifts that keep on giving. Therefore, investments can appreciate and generate dividends over time, providing long-term returns and retirement options.
Buffett serves as a role model for long-term investors, offering insights into smart money moves in the market. His successful tech exposure and picks in sectors within his expertise make them noteworthy additions to the watchlist. So, his top picks are essentially guarantee buys. Investors would do well to keep a close watch on his market decisions, strategies, and moves.
Let’s explore these three stocks for a thoughtful and lasting holiday stocking stuffer.
Restaurant Brands (QSR)
Source: Savvapanf Photo / Shutterstock.com
In the midst of the pandemic and high inflation, consumers sought affordable fast food options over dining out. As sentiment improves, Restaurant Brands (NYSE:QSR) stands to benefit.
Priced at $69, QSR stock is undervalued with significant growth potential. And, it’s up 7% year to date (YTD) but below its 2019 peak of $78. Further, JP Morgan Chase raised the price target to $74, indicating a buy rating.
On Thursday, Restaurant Brands achieved a significant technical milestone as its Relative Strength (RS) Rating improved to 82, up from 79 the previous day. The RS Rating, ranging from 1 to 99, assesses a stock’s price performance over the past 52 weeks compared to other stocks. Thus, it provides valuable insights for investors seeking strong performers.
Apple (AAPL)
Source: Moab Republic / Shutterstock
After an autumn decline, Apple (NASDAQ:AAPL) reclaimed its status.
As the world’s most valuable publicly-traded company, it surpassed a $3 trillion market capitalization on December 5. Up 55% in 2023, Apple’s stock reached this milestone for the first time since August. This resurgence reflects investor confidence in Apple’s stability, strong cash flow, and robust shareholder returns. Hence, it’s positioned as a safe haven asset amid economic uncertainties.
Additionally, holiday sales provided an immediate boost to Apple’s profits. But its sustained success in Asian markets is a key driver of long-term stability. Despite a minor dip in 2023, Apple consistently expanded its market share in Asia. By holding only 16% of the total addressable market, this suggests significant growth potential.
Despite the high stock price, analysts express optimism, with 74% recommending a buy. With a consensus fair value around $200 per share, Apple still has room to extend its growth trajectory.
Berkshire Hathaway (BRK-B)
Source: sdx15 / Shutterstock.com
Warren Buffett’s conglomerate, Berkshire Hathaway, reported a resilient Q3. With a 40% year-over-year (YOY) surge in operating profit, it topped $10.8 billion.
Established in 1889, the company operates over 90 subsidiaries in diverse sectors. Notable entities like GEICO and General Re contributed. With a historic cash reserve of $157.2 billion representing 20% of its market cap, Berkshire Hathaway displays financial strength.
Buffett’s success stemmed from cashing in on higher short rates, securing over 5% on cash. With strategic bond yield moves, Buffett purchased short-term Treasury bills. Additionally, $1.1 billion went into share buybacks in the quarter, reaching $7 billion for the year. This solidifies BRK-B as a robust stock to retain.
Buffett’s firm strategically shed holdings, boosting cash reserves for economic resilience and future investments. Omaha-based Berkshire Hathaway faced a notable event with Vice Chairman Charlie Munger’s recent passing. Consider Berkshire as a lasting legacy beyond the Buffett-Munger era.
On the date of publication, Chris MacDonald has a LONG position in QSR, AAPL, BRK-B. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The post 3 Stocking Stuffer Stocks to Buy for Your Loved Ones This Holiday appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) Source: Moab Republic / Shutterstock After an autumn decline, Apple (NASDAQ:AAPL) reclaimed its status. On the date of publication, Chris MacDonald has a LONG position in QSR, AAPL, BRK-B. Restaurant Brands (QSR) Source: Savvapanf Photo / Shutterstock.com In the midst of the pandemic and high inflation, consumers sought affordable fast food options over dining out. | Apple (AAPL) Source: Moab Republic / Shutterstock After an autumn decline, Apple (NASDAQ:AAPL) reclaimed its status. On the date of publication, Chris MacDonald has a LONG position in QSR, AAPL, BRK-B. Many turn to the portfolio of renowned investor Warren Buffett, CEO of Berkshire Hathaway (NYSE:BRK-B). | Apple (AAPL) Source: Moab Republic / Shutterstock After an autumn decline, Apple (NASDAQ:AAPL) reclaimed its status. On the date of publication, Chris MacDonald has a LONG position in QSR, AAPL, BRK-B. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As the holiday season approaches, investors seeking gift-worthy stocks. | On the date of publication, Chris MacDonald has a LONG position in QSR, AAPL, BRK-B. Apple (AAPL) Source: Moab Republic / Shutterstock After an autumn decline, Apple (NASDAQ:AAPL) reclaimed its status. Priced at $69, QSR stock is undervalued with significant growth potential. |
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12127.0 | 2023-12-12 00:00:00 UTC | Can Equal-Weighted ETFs Outperform the S&P 500 in 2024? | AAPL | https://www.nasdaq.com/articles/can-equal-weighted-etfs-outperform-the-sp-500-in-2024 | The biggest market story of the year is the outsized role of the Magnificent Seven stocks in the market rally. Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Amazon AMZN, NVIDIA NVDA, Meta Platforms META and Tesla TSLA now account for almost 29% of the S&P 500.
The tech-heavy Nasdaq 100 index had to undergo a special rebalancing earlier this year when the weight of these seven stocks went over 55% of the index.
The weight of the top 10 stocks in the broad index has now increased to 32%, versus the average of 20% over the last 35 years. During the dot-com bubble, the total weight of the top 10 stocks topped out at 25%, according to Goldman Sachs.
Unlike during the tech bubble, these companies are highly profitable, and their valuations, though elevated, are comparable to those seen in recent history.
They have stable cash flows and low leverage and could continue to do well if the economy slows down while interest rates stay at elevated levels for an extended period.
We have seen a broadening of the rally lately. Since bottoming in late October, all sectors except Energy are up. Areas like Real Estate, Financials, and Consumer Discretionary have significantly outperformed the Technology sector over the past month.
The Invesco S&P 500 Equal Weight ETF RSP has outperformed the market-cap-weighted index since its inception in 2003. Investors who are worried about a handful of stocks dominating funds tracking market-cap-weighted indexes have poured $9.5 billion into this ETF year-to-date.
To learn about RSP, First Trust NASDAQ-100 Equal Weighted ETFQQEW, Direxion NASDAQ-100 Equal Weighted Index Shares QQQE and iShares MSCI USA Equal Weighted ETF: EUSA, please watch the short video above.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Amazon AMZN, NVIDIA NVDA, Meta Platforms META and Tesla TSLA now account for almost 29% of the S&P 500. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports First Trust NASDAQ-100 Equal Weighted ETF (QQEW): ETF Research Reports Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports iShares MSCI USA Equal Weighted ETF (EUSA): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. They have stable cash flows and low leverage and could continue to do well if the economy slows down while interest rates stay at elevated levels for an extended period. | Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Amazon AMZN, NVIDIA NVDA, Meta Platforms META and Tesla TSLA now account for almost 29% of the S&P 500. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports First Trust NASDAQ-100 Equal Weighted ETF (QQEW): ETF Research Reports Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports iShares MSCI USA Equal Weighted ETF (EUSA): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. To learn about RSP, First Trust NASDAQ-100 Equal Weighted ETFQQEW, Direxion NASDAQ-100 Equal Weighted Index Shares QQQE and iShares MSCI USA Equal Weighted ETF: EUSA, please watch the short video above. | Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports First Trust NASDAQ-100 Equal Weighted ETF (QQEW): ETF Research Reports Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports iShares MSCI USA Equal Weighted ETF (EUSA): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Amazon AMZN, NVIDIA NVDA, Meta Platforms META and Tesla TSLA now account for almost 29% of the S&P 500. They have stable cash flows and low leverage and could continue to do well if the economy slows down while interest rates stay at elevated levels for an extended period. | Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports First Trust NASDAQ-100 Equal Weighted ETF (QQEW): ETF Research Reports Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports iShares MSCI USA Equal Weighted ETF (EUSA): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Amazon AMZN, NVIDIA NVDA, Meta Platforms META and Tesla TSLA now account for almost 29% of the S&P 500. The Invesco S&P 500 Equal Weight ETF RSP has outperformed the market-cap-weighted index since its inception in 2003. |
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12128.0 | 2023-12-12 00:00:00 UTC | The 7 Best Dow Stocks to Buy as America’s GDP Growth Soars | AAPL | https://www.nasdaq.com/articles/the-7-best-dow-stocks-to-buy-as-americas-gdp-growth-soars | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There are many reasons for optimism as the U.S. economy continues improving. America’s GDP growth continued to move in the right direction and soared by 5.2% in the third quarter. That strongly suggests that the Dow, composed of 30 of the best U.S. stocks, is worth investing in at the moment.
Generally speaking, investing in the Dow currently makes a lot of sense. It appears that not only will America avoid a recession but also that there’s growth to be had. So, the Dow Jones index is a strong place to be for investors seeking U.S. equity exposure.
McDonald’s (MCD)
Source: Vytautas Kielaitis / Shutterstock
Simply put, McDonald’s (NYSE:MCD) continues to grow incredibly despite its dominant position and size. As mentioned, U.S. GDP grew by 5.2% during the 3rd quarter. Growth at McDonald’s was even higher.
McDonald’s is, of course, a very large firm with a vast footprint. Therefore, it’s necessary to divide its growth along several comparable metrics. Fortunately, they all point to the same conclusion: McDonald’s is thriving. Global sales increased by 8.8% during the Third quarter. In the US, sales increased by 8.1%. Global systemwide sales, which measures McDonald’s owned and operated restaurants and franchisee restaurants, grew by 11.1%. Those metrics should lead investors to the same conclusion: McDonald’s is growing even faster than the rebounding US economy.
The company and its stock tend to thrive across all business cycle periods. It’s safe, continues to grow rapidly, and provides an ultra-dependable dividend for income investors in particular.
Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
The news that Apple (NASDAQ:AAPL) stock is again flirting with a $3 trillion market capitalization should serve to give investors confidence.
Investor confidence is an area in which Apple currently lacks. According to a recent article by Barron’s, confidence in its shares is quite low based on analyst ratings. 61% of those analysts currently rate Apple as a buy. That is the lowest percentage since August of 2020.
The thrust of that article was that Apple shares can rise above their current market cap because of artificial intelligence. The company has been relatively quiet in relation to its plans related to AI. You can bet that the company is putting together a strategy for when it will announce those plans. When it does so, expect the markets to react positively.
The company has been maligned because of declining sales of late. However, Apple continues investing in growth while returning capital to shareholders. It is not the company to bet against.
Visa (V)
Source: Kikinunchi / Shutterstock.com
Visa (NYSE:V) and other credit card stocks have continuously defied throughout 2023. Cash-strapped American consumers have continued to rack up credit card debt nonetheless. If inflation and recession fears made the lives of Americans more difficult, you wouldn’t have known based on the results of companies like Visa.
Visa cardholders will continue to spend, especially in terms of cross-border payments. In 2023, cross-border volume increased by 20% overall. American consumers continue to satisfy their travel appetite. Beyond that, consumers continue to simply use credit cards more. Visa’s revenues increased by 11% in the most recent quarter, reaching $8.6 billion. As a result, net income increased as well. That translated to Strong per-share earnings growth in 2023 and in the most recent quarter. EPS grew by 21% and 17% during those periods, respectively.
American credit card debt has moved past $1 trillion. That’s a big threat to individual consumers but, in aggregate, will serve credit card companies well moving forward.
Salesforce (CRM)
Source: Sundry Photography / Shutterstock.com
Salesforce (NYSE:CRM) Is currently in a strong position due to multiple factors that are coming together in its favor. Most everyone knows that Salesforce is the largest customer relationship management firm and stock.
That’s particularly important at this moment in the business cycle. Investors expect the Federal Reserve to cut rates as early as March. That will drastically boost overall investment, particularly at the enterprise level. Businesses of all sizes will spend more on growth because lending will cheapen. Those enterprises will heavily invest in customer relationship management to foster growth. Salesforce is the largest CRM and, thus, is in a perfect position at the moment.
In fact, Salesforce is already doing very well. The company recently released its third-quarter results, which also suggests the reason for optimism. Revenues increased by 11% to $8.72 billion. Increasing economic confidence allowed the company to narrow its guidance for full-year growth to 11% as well.
Caterpillar (CAT)
Source: aapsky / Shutterstock.com
When Caterpillar (NYSE:CAT) released earnings at the end of October, the markets did not receive the results well. It certainly wasn’t Caterpillar’s fault. In fact, the company did extraordinarily well, particularly regarding earnings per share. The company’s EPS of $5.52 was far above what Wall Street was expecting.
However, as mentioned, its shares didn’t improve in price by much. The reason was fairly simple: Investor clarity about the economy’s future was much more muddled then. It has since been clarified, and optimism is high. It looks very much like we have avoided a recession.
The Fed is going to cut rates in 2024, likely multiple times. That will catalyze spending and investment across multiple sectors, especially construction. In other words, Caterpillar is looking better and better.
The company has continued to do well despite the high interest environment. Demand for its vehicles has remained high. Despite higher prices, the company has realized higher volumes as well.
IBM (IBM)
Source: JHVEPhoto / Shutterstock.com
IBM (NYSE:IBM) offers income and is well exposed to growth sectors overall. That’s a potent combination. IBM is entrenched in the artificial intelligence sector as well as the quantum computing industry. Investors are highly interested in both. Beyond that, IBM continues to offer a dividend that yields more than 4%.
All of those factors add up to create a stock that is very much worth investing in. Let’s start with the dividend. IBM last reduced its dividends in 1994 and continues to look secure. That dividend yields 4%, which is within the healthy range but also relatively high at the same time. Overall, IBM remains a stock to consider for investors seeking strong income sources.
At the same time, IBM is exposed to important growth sectors, including AI and quantum computing. That means equity offers investors a chance at real growth and provides a more stable income. IBM is well known for its Watson AI and is doing many things in that regard. The company is also entrenched in quantum computing, which promises to improve AI overall.
Cisco Systems (CSCO)
Source: Valeriya Zankovych / Shutterstock.com
Cisco Systems (NASDAQ:CSCO) offers investors steady, reliable income and exposure to continued technology sector growth.
The company sells Internet Protocol networking equipment and services. That means it basically grows along with the overall increase in Internet connectivity. Based on current projections, the company’s top-line growth isn’t expected to be particularly impressive and doesn’t stick out. However, Cisco Systems is amongst the leaders in its business. The company will continue to grow with the secular increases in technology. For example, many firms invest heavily To improve their positions in data centers and AI.
That is reflected at Cisco Systems, which recently announced its strongest fiscal year Q1 results ever. The company’s revenues and profitability reached their highest levels ever.
Meanwhile, investors who purchase CSCO shares also receive a dividend that yields approximately 3.2%. That’s a nice incentive for a company that is very stable and serves to push returns much higher overall for investors.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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The post The 7 Best Dow Stocks to Buy as America’s GDP Growth Soars appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com The news that Apple (NASDAQ:AAPL) stock is again flirting with a $3 trillion market capitalization should serve to give investors confidence. If inflation and recession fears made the lives of Americans more difficult, you wouldn’t have known based on the results of companies like Visa. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing. | Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com The news that Apple (NASDAQ:AAPL) stock is again flirting with a $3 trillion market capitalization should serve to give investors confidence. McDonald’s (MCD) Source: Vytautas Kielaitis / Shutterstock Simply put, McDonald’s (NYSE:MCD) continues to grow incredibly despite its dominant position and size. Cisco Systems (CSCO) Source: Valeriya Zankovych / Shutterstock.com Cisco Systems (NASDAQ:CSCO) offers investors steady, reliable income and exposure to continued technology sector growth. | Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com The news that Apple (NASDAQ:AAPL) stock is again flirting with a $3 trillion market capitalization should serve to give investors confidence. Cisco Systems (CSCO) Source: Valeriya Zankovych / Shutterstock.com Cisco Systems (NASDAQ:CSCO) offers investors steady, reliable income and exposure to continued technology sector growth. The #1 AI Investment Might Be This Company You’ve Never Heard Of The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post The 7 Best Dow Stocks to Buy as America’s GDP Growth Soars appeared first on InvestorPlace. | Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com The news that Apple (NASDAQ:AAPL) stock is again flirting with a $3 trillion market capitalization should serve to give investors confidence. That strongly suggests that the Dow, composed of 30 of the best U.S. stocks, is worth investing in at the moment. Growth at McDonald’s was even higher. |
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12129.0 | 2023-12-12 00:00:00 UTC | Is Apple Stock a Buy Now? | AAPL | https://www.nasdaq.com/articles/is-apple-stock-a-buy-now-5 | Apple (NASDAQ: AAPL) made headlines this week by surpassing a market capitalization of $3 trillion, a level it hadn't seen since August. The company's shares are up 50% year to date, despite repeated declines in its product segments that sent revenue dipping 3% year over year in its fiscal 2023.
Macroeconomic headwinds caught up with Apple over the past 12 months, curbing consumer spending and creating weakness in foreign currencies relative to the U.S. dollar. Yet, its stock and business have remained resilient as loyal investors have continued to believe in its long-term prospects, and its heaps of cash have kept the company expanding.
The stock might be slightly overpriced today, trading at 31 times its earnings, but here's why Apple is still a buy.
A powerful position in tech that is unlikely to dissipate soon
Apple has built brand loyalty that is almost unmatched in tech. Its interconnected ecosystem of products simultaneously deters people from using competing devices and encourages users to gradually branch out into Apple's other offerings.
The popularity of Apple's products has seen it attain leading market shares in multiple industries, holding a 55% share of the U.S. smartphone market.
The company's significant user base came in handy in 2023 as spikes in inflation made people less likely to upgrade their devices. Product revenue faltered, but Apple continued to profit from the sales of past devices through its services.
The tech giant's services business includes income from the App Store and subscription-based platforms like Apple TV+, Music, and iCloud. The digital division has become the fastest-growing part of Apple's business, with revenue rising 9% year over year in fiscal 2023 and outpacing the iPhone for two consecutive years.
Consistent growth from services is positive for Apple's long-term prospects, with profit margins regularly hitting about 70%. By comparison, its products' profit margins hover around 36%.
Apple's potent brand has seen it achieve dominating roles in nearly every new market it has entered. In 2024, the company will launch its first virtual/augmented reality (VR/AR) headset and will likely continue expanding into artificial intelligence (AI). With billions of users worldwide and a free cash flow that hit nearly $100 billion this year, I wouldn't count it out as becoming a top performer in either of those high-growth sectors.
Has Apple earned its premium price tag?
Apple's substantial stock rise this year has made it slightly overpriced. Its forward price-to-earnings ratio (P/E) of 30 and price-to-free cash flow multiple of 31 are high, considering that anything below 10 to 20 for both metrics is generally regarded as a good value.
However, this is Apple, the world's most valuable company that has delivered stock growth of 345% over the last five years. Even if its shares rose half that over the next five years, it would still outperform Alphabet's and Amazon's stock gains since 2018. So, the question remains: Is Apple worth its high valuation?
Data by YCharts
The charts above compare the forward P/E and price-to-free cash flows of some of the biggest names in tech. The figures indicate that shares in Apple are trading at a better value than Amazon, Nvidia, and Microsoft, with only Alphabet potentially a better bargain.
Apple's reputation for reliable gains, loyal user base, and substantial cash reserves make the company a no-brainer for investing in tech. It's one of the cheapest options in the industry and has delivered more five-year growth than most of these companies. Even if it can't replicate the same growth over the next half-decade, the company's share price is still likely to rise significantly with its lucrative services business and expansions into other areas of tech.
The company has earned its high valuation and remains a buy right now.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) made headlines this week by surpassing a market capitalization of $3 trillion, a level it hadn't seen since August. Macroeconomic headwinds caught up with Apple over the past 12 months, curbing consumer spending and creating weakness in foreign currencies relative to the U.S. dollar. Apple's reputation for reliable gains, loyal user base, and substantial cash reserves make the company a no-brainer for investing in tech. | Apple (NASDAQ: AAPL) made headlines this week by surpassing a market capitalization of $3 trillion, a level it hadn't seen since August. Consistent growth from services is positive for Apple's long-term prospects, with profit margins regularly hitting about 70%. Apple's substantial stock rise this year has made it slightly overpriced. | Apple (NASDAQ: AAPL) made headlines this week by surpassing a market capitalization of $3 trillion, a level it hadn't seen since August. The digital division has become the fastest-growing part of Apple's business, with revenue rising 9% year over year in fiscal 2023 and outpacing the iPhone for two consecutive years. Apple's substantial stock rise this year has made it slightly overpriced. | Apple (NASDAQ: AAPL) made headlines this week by surpassing a market capitalization of $3 trillion, a level it hadn't seen since August. Yet, its stock and business have remained resilient as loyal investors have continued to believe in its long-term prospects, and its heaps of cash have kept the company expanding. The company has earned its high valuation and remains a buy right now. |
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12130.0 | 2023-12-12 00:00:00 UTC | Did the Santa Claus Rally Start Early? | AAPL | https://www.nasdaq.com/articles/did-the-santa-claus-rally-start-early | In this podcast, Motley Fool host Dylan Lewis and analysts Jason Moser and Matt Argersinger discuss:
The market's incredible November and why we may not be out of the woods yet on rate hikes.
Why Apple and Goldman Sachs are breaking up their credit card partnership.
Thoughts on Tesla's Cybertruck and the new details we have after this week's showcase.
Two stocks worth watching: Docusign and EPR Properties.
Vivek Pandya, manager of Adobe Digital Insights, talks through the trends he's seeing so far in holiday spending and whether it makes sense to buy now or wait for some of the items on your list.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
Should you invest $1,000 in Apple right now?
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This video was recorded on Dec. 01, 2023.
Dylan Lewis: November was one heck of a month for the market. But we may not be out of the woods yet. Motley Fool Money starts. Everybody needs money. That's why they call it money. From Cool Global headquarters, this is Motley Fool Money. It's the Motley Fool Money radio show. I'm Dylan Lewis joining me in the studio. Motley Fool Senior Analysts Jason Moser and Matt Argersinger. Gentlemen, great to have you both here. We've got a tribute to one of the greatest investors of all time, an early look at the holiday shopping trends and of course, stocks on our radar. But we're going to kick off today reflecting on November. Matt, it's a month of thanks and I think a lot of investors very thankful for the month that was.
Matt Argersinger: Very thankful, Dylan. What a month it was indeed. The S&P 500 up more than 9%, Nasdaq 100 which has already been on a super tear this year, was up another 11% in November. Russell 2000 by the way. Small caps which have really not participated finally had a good month up 9% and one of my favorite parts of the market, Real Estate Investment Trust which you have had a horrible year up 12% in November. This is probably the kicker for me guys. This is according to a report from Bank of America, the classic 60, 40 portfolio, 60% stocks, 40% bonds. The much belign 60, 40 portfolio, is least recently that was up 9.6% in November. That was the best month for that strategy in more than 32 years going back to December 1991, the month the USSR dissolved, by the way. That is quite a historic record right there. How about that? It seems like everything did well in November.
Dylan Lewis: Nice to see stocks not alone in the rally bonds in on the action as well. Jason, we typically see a little bit of a Santa rally in December. This one's coming in a little bit earlier for us. What do you see as you look at the past month?
Jason Moser: Well, I think what we saw, we saw a relatively decent earning season. I mean, we saw a lot of companies that there was continued language in regard to scrutinize spending, I heard a couple of elongated sales cycles in there. Still companies are doing a very good job of focusing on the money that's going out. I mean, it's not just about growing that revenue anymore, but a lot of companies are really focused on the money that's going out and they're really doing a good job of pairing that back, making the businesses a little bit more efficient. We're seeing margins expanding in some cases. It's not across the board. There are some pockets of weakness there and some questions. I think it's going to be an interesting holiday season from a retail perspective. But generally speaking, I think particularly considering tech, because that's really been most under the microscope, we are seeing that these companies are taking a look at this and saying, let's focus a little bit more on actually making some money and it's amazing what just shifting that narrative a little bit can really do to investor sentiment.
Dylan Lewis: That was November, and we are here taping on December 1 and as we were heading into production, Fed Chair Jerome Powell turned the lights on at the party and said, hey, we may not be totally done here yet, Matt. [LAUGHTER].
Matt Argersinger: That's right. He gave a speech on a Friday morning and it's something Powell has done a few times, I think over the past, say, year and a half, where he's come on and said, hey everyone, like you said, turn on the lights of the party. Isn't that the worst the music goes out, lights go on, it's awful.
Dylan Lewis: We're here to hang out for a while.
Matt Argersinger: I know, but no, he said hold on. Way too early to say that we're done actually raising rates, which I think is surprising. He says not until we have the full confidence, the Fed has the full confidence that inflation is heading back to our target of 2%. Basically, he said this without saying it. But he said the Fed is not even thinking about lowering rates, which is very in contrast to what we're seeing. Because if you look at, for example, the CME's Fed Watch Tool, looking at the March Fed meeting, they're looking at a 53% chance of a cut. If Pals come out and said we're not even thinking about thinking about cutting, there is a little bit of a conflict here. Now, I would say for all the things Jason said about corporate earnings, I think corporations have done a magnificent job managing their margins, especially during this. But I think one of the reasons the market rallied so much is because there's a sense that, even if the Fed is it might not be lowering, at least they're probably done hiking. We can sort of have a little more confidence in the level of interest rates and we can manage our balance sheets and our credit needs accordingly, that's a big thing. But now, if you're telling me that investors are actually thinking of a Fed cut is coming early in the year, that makes me a little more nervous.
Dylan Lewis: Matt, I'm just impressed that you got through thinking about twice. [LAUGHTER]. Well, cleanly, I struggled through it. Just trying to get out of that once from the big macro, we are going to check in on two big brands. Jason, Apple will be exiting its credit card relationship with Goldman Sachs. The tech firm reportedly submitted a proposal that would end the relationship in the next year. A bit of a change in strategy for both these businesses. This was the culmination of two initiatives for each of them and a new brand of business or a new type of business for both of them. What do you make of this partnership dissolving?
Jason Moser: It feels like it's probably the best solution for both parties involved. This is an interesting story because it brings a lot of companies into play here. You've got Apple and Goldman Sachs of course, but then you've got other companies that are interested in perhaps taking over that Apple business like American Express, or even synchrony. A lot of parties in play here. I think Apple's card aspirations on the one hand it can be seen as an acquisition tool. It's a way for them to give consumers access to more Apple devices. It's an easier way for consumers to be able to finance those devices, give it to you interest free over time, whatever it may be. And for Goldman at the time, it seemed like a reasonable bet in their consumer aspirations. You're saddling up with Apple, one of the biggest networks out there with billions upon billions of users, it feels like. But it just, it hasn't worked out that well and I think it's probably something that was a little bit, both parties were at fault here. I think when you saddle up with Apple, the idea is that you're saddling up with one of the biggest, most important companies in the world. Now, the other side of that coin is that Apple, because of their size, they can really command a lot out of that relationship as well. That typically means lower pricing. Granted, there's higher volume there. But I think also with Apple, this was a way for them to continue increasing engagement. Give people who want to be a part of that Apple universe a reason to stay in that Apple universe. You have your finances with them that means that you're going to find more value in the devices with Apple that you're using, it all makes sense when you look at how this relationship was born and the concessions that Apple demanded from Goldman. They were calling for essentially all applicants to be approved. They want to essentially 100% approval rate, and they went with an atypical billing cycle that essentially was the beginning of the month, whereas all other card companies do it on a rolling basis. That helps smooth out those finances, and so I think Goldman maybe felt like, you know what, this is far more trouble than it's worth. Apple looked at it and saying, well, if it's not going to be Goldman, I'm sure we can find another partner and I think that's ultimately what happens. I think Apple probably continues to try to make this work just with another partner. I would say that other partner better take a look at this example here and maybe push back on some of those demands that Apple's thrown out there.
Dylan Lewis: We've heard for years exactly how difficult it is to be a supplier of Apple. Usually we're talking about small chip companies going into business with them and how those contracts are incredibly demanding. Wind up straining some of the financials of those businesses because Apple can get such favorable terms. Funny to see a company like Goldman Sachs wind up in that same spot.
Jason Moser: Again, I think this is something that for Apple, it's not really a needle mover on the business. It's another service that they can offer and this is clearly becoming more and more of a services business as they work to diversify that revenue away. I don't think Apple card users really care what bank is behind all of this. Most of the time they're not really worried about the issuer of the bank as long as they are still affiliated with that Apple brand, that Apple card. I don't think Apple's going to have any problem finding another partner. But I think it'll be noteworthy how that new relationship is actually structured. Switching gears. It was a busy week for Elon Musk and we're going to maybe sidestep some of the deal book comments and discussion because we did see our first look at some of the details on Tesla's cyber truck. Matt, this was something that was first unveiled as an idea back in 2019. It is now 2023. We have a sense of what this product looks like, some of the costs, some of the specs. What did you think of the announcement?
Matt Argersinger: Well, first of all, I have to say the last few days, it feels like such a perfect representation of Elon Musk's personality. He goes from, like you said, this, let's be fair, bizarre, confusing, maybe even uncomfortable at times interview at Deal Books Summit in New York to the very next day giving this exciting almost Steve Jobs-esque unveiling of the cyber truck in Austin, Texas, or as he put it, the biggest product launch of anything by far on Earth this year. He might be right cause whatever you want to say, I think about Elon Musk the person and I have a lot of things to say, but Elon Musk, the engineer, the product designer, the salesman, is truly something entirely different and I do think the demand for the cyber truck is going to be huge. We can get into the specs, but it has more than one million reservations. It's a product that I think a lot of people four years ago certainly thought there was no chance in heck that this thing was going to roll off the production line anytime soon yet they are really rolling it off beginning this year. I have to say it's such a unique design, you have such a big Elon musk fan base and I really do believe him when he says, "The future looks like the future with this thing". I find myself intrigued and I do feel like it's going to be a success as is often the case with Musk. Some of the details they announced in 2019. A little bit different when they come to real reality here in 2023. I believe the base model will cost around $61,000. The upscale cyber base model, 100K. One of the things that I think is interesting here, Jason, is we saw this announced in 2019. It is now being revealed in 2023 and we'll probably see people really drive them on the roads in 2024 and 2025. The market for EVs and in particular truck EVs has changed pretty dramatically in that time.
Jason Moser: It has, and EVs are going through their own little moment right now where there are some questions as to the value proposition and there's consumer reports data out there showing that people are having more problems with EVs than ICs or even other vehicles.
Jason Moser: Whether that's the case or not, I think with Tesla, when you look at these trucks, it's very difficult to understand exactly what kind of driver wants this cybertruck. I think the cybertruck is a niche product that will probably do OK. I don't know how the company is ultimately defining success. For me, success is this is a contributor to the business. It sounds like for the immediate future, for the near future, at least for the foreseeable future, it's going to be something that loses money until they actually figure this whole thing out, because just making the truck on its own is a really difficult and arduous process. For most people that are driving these big trucks, the trucks are a tool of their trade. It's something that matters, that needs to be reliable. They need to know that it's going to work and how to fuel it up and use and whatnot. I don't know that they're necessarily going to be the ones making the leap to a cybertruck in the near term. Now, I think that as this iterates, as it evolves, there will be more opportunities to open that market opportunity up to more of those types of truck owners. For now, I think you probably see a few on the road, and we'll see how this develops.
Dylan Lewis: Coming up after the break, we've got a tribute and some of our favorite Mungerisms. Stay right here. This is Motley Fool Money.
Welcome back to Motley Fool Money. I'm Dylan Lewis, joined again in studio by Matt Argersinger and Jason Moser. This week, Charlie Munger, Vice Chairman of Berkshire Hathaway and Warren Buffett's right-hand man passed away at the age of 99. He is easily on the Mount Rushmore of the greatest investors of all time. I think it's probably worth spending a little time reflecting on just how remarkable his track record and success with Buffett and Berkshire was, Matt.
Matt Argersinger: Remarkable. It is Mount Rushmore, for sure. If you're talking about, as the young people say, goat, greatest of all time, Warren Buffett is the goat when it comes to investing. But I'm not sure he's quite the goat without Charlie Munger. If you look at Berkshire Hathaway's market value per share, 57 years ago, when he took over the textile mill in Massachusetts and turned this into one of the most successful businesses and companies of all time, he and Munger compound market value per share for Berkshire just under 20% a year for 57 years. Almost six decades. More than double the annual compound return of the S&P 500. Just to put that in dollar terms, if you had invested $100 in Berkshire Hathaway the moment after Buffett took over, that $100 would have turned into $2.96 million today.
Dylan Lewis: Matt, to your point about the duo, I think of Buffett and Munger as Brady and Belichick. They're both individually great, but what they've done together, just absolutely incredible, and I don't know that we're going to see it again.
Matt Argersinger: No, I don't think so. If I could tell a quick story, J. Mo was involved in this too, is early 2015, Jason and I took over a million-dollar portfolio, which is the service we had here at the Motley Fool. As we were thinking about how to run this service, the first thing that came to mind was a quote by Charlie Munger. It goes something like this: If you buy something because it's undervalued, then you have to think about selling it when it approaches your calculation of its intrinsic value. That's hard. But if you buy just a few great companies, then you can sit on your butt. That's a good thing. Now, Charlie used a little bit more colorful language than I just did. But that to me was such more than any quote from Charlie Munger has told me. It really isn't about trying to always constantly massage your portfolio. Deciding what to buy, when to buy, what to sell, when to sell. Find great companies, buy them, hold them. I think that was the lesson he also gave to Buffett six decades ago as well.
Jason Moser: Well, I was going to say you're right because Buffett was the cigar-butt guy.
Matt Argersinger: Absolutely.
Jason Moser: He is the Graham cigar-butt guy. Munger was the guy that came in today. What about just buying good businesses at fair prices?
Matt Argersinger: Yes.
Jason Moser: Buy good businesses at reasonable prices and then Matt says, sit on our butts and just go about this. Now, I think one interesting thing, and the returns numbers you quoted there are phenomenal, it's fascinating to think, and Munger is on record as saying this, he said, you know what? We could have doubled the size of Berkshire, had we done just one thing; used the leverage. It's something we talk about leverage a lot here because leverage can be a very dangerous tool. It can be a helpful tool for certain investors if you know what you're doing, but it raises the degree of difficulty when it comes to investing. He said, we could have used leverage and Berkshire would have been worth twice as much. He said the reason why they didn't do it, was because they didn't want to disappoint the people that had been with them for so long. They generated a lot of wealth. He's like if we lose three quarter of our money, we're still rich. But a lot of these people that have made all this money along the way with us, they're just individual investors. We would have let them down in a big way in understanding the nature of leverage in the fickle nature of markets. Using leverage boils down to market timing in some senses. They made that conscious decision; no, we're not going to do that, we've got our process in place. I think that's a great lesson for investors is, know what you don't know, get your process in place, and trust the process. What? Bell check, right?
Dylan Lewis: As a testament to the process and really just by keeping it simple, how easy they were able to make things for themselves, one of the top 10 largest companies in the United States, even without the benefit of using leverage, so even doing things the right way, doing things simply, and not exposing themselves to too much risk, I think they did just OK. [laughs]
Matt Argersinger: I think they did more than OK. I would say, and beyond also just buying wonderful businesses. One of the hardest things we do as investors is holding great businesses. It's one thing to identify a wonderful business, buy a wonderful business at a fair, reasonable price. Most of us just don't hold those businesses long enough. If you look at their holdings in Coca-Cola, American Express, even Apple, which is more recent purchase they've held that for almost a decade now, a lot of us just have a hard time doing that. As an individual investors, we see a stock we own go up 50%, we're like, hey, should I think about selling? Is the market at the top? What if I don't sell and the dry stock drops 20%? That is also part of the genius, it's part of the goating, which was not just buying wonderful businesses, but holding them, which is such a hard thing to do if you're an individual investor.
Dylan Lewis: I think, Matt, modeling that behavior, talking about that, and being very open about it as such great investors probably helped investor outcomes on the retail side, almost more than anybody else. I think it's probably Jack Bogle, Warren Buffett, and Charlie Munger, in terms of like good investing behavior and lessons.
Matt Argersinger: Exactly. Lessons that any investor could follow. These were the lessons. What's amazing to me is, I think it was Jeff Bassos who asked Buffett once, why aren't there more investors like you? Why don't they just copy you and do what you do? The whole refrain was, well, because people, they want to be rich fast, they don't want to get rich slowly, and that's what we did, and they did it better than anyone else.
Dylan Lewis: J. Mo, Matt mentioned a Mungerism that he particularly enjoys. Anything jump out to you?
Jason Moser: Yeah. The one that I noted earlier this week and the impact I think that Munger has had on my life from reading and the listening to him speak overall is just patience. It goes back to what you were saying. One of my favorite quotes, the big money is not in the buying and selling, but in the waiting. That really is what it boils down to. A lot of people don't want to hear that because like Matty said, they want to get rich quick. That's not the way it works. You determine your process, you do what works best for you. But I think over time, what we found is that Munger and Buffett came up with something pretty special there. It's not a bad idea to try to mirror that patience. It's not easy all the time, but it matters.
Dylan Lewis: Gentlemen, we're going to see you a little bit later in the show. Up next, we've got to check in on holiday spend and places we're seeing deflation in pricing. Stay right here. You're listening to Motley Fool Money.
Vera Lynn: We'll meet again. Don't know where, don't know when. But I know we'll meet again some sunny day. Keep smiling through just like you always do 'til the blue sky drive the dark clouds.
Dylan Lewis: Welcome back to Motley Fool Monday. I'm Dylan Lewis. The holiday season is in full swing and we've got an early read on results from Cyber Monday and Black Friday, thanks to Adobe. The firm is the source for online holiday spend data. We caught up with the Vivek Pandya, their lead insights analyst to get a sense of the trends he's seeing in the numbers this winter and whether it makes sense to buy now or wait for some of the items on your list. Let's dive right in. Your firm reported a record $9.8 billion in Black Friday online sales and over 12 billion in Cyber Monday sales. How do you think online retailers and shoppers are looking so far this holiday season?
Vivek Pandya: It's been, I think, something that they've been anticipating in terms of where they would land for these major days. Buyer propensity is the strongest on Thanksgiving to Cyber Monday. I think they're probably feeling pretty good about the momentum that they've experienced through these five days. I think what we're going to have to keep a closer eye on is how the demand continues to persist from where we are post Cyber Monday through the rest of the season. I also think they'll have to think a little bit more about how they approach early seasonal discounts, which they did in late October all the way into early November. In the past, that has done well for them. But this season, with the consumers priority around price and discount magnitudes, they really return back to Black Friday and Cyber Monday for their shopping. That's something the retailers are going to have to continue to think about in 2024.
Dylan Lewis: If I'm not mistaken, I think Black Friday spend was up somewhere around 7% year over year. We saw, I think, Cyber Monday results up nearly 10% over 2022. There are a lot of different reasons why those numbers could be going up. I think inflation is probably top of mind for a lot of people. Do you feel like we're seeing a mix of inflation and increases in demand and volume a little bit more, one or the other?
Vivek Pandya: It's a great question because with online retail prices, those have actually been coming down year on year for the past couple of years because we did see prior to the pandemic, we would continue to see online deflation. The reason for that is you'd have more and more online retail merchants enter the space. That gives the consumer much more choice and there's more competition, and that puts a downward pressure on prices. We also saw with categories like electronics, you have the newer products coming out and that pushes prices down on the older versions. That deflation was pretty apparent pre-pandemic. Then we had these supply chain issues that really put consumers in a position where they were seeing much higher prices across the board. Even for online goods, the demand was so high. But then as we got to 2022, the summer where gas prices started going up and durable and goods demand started coming down, that put online prices back on this deflationary trajectory. A lot of the growth that we're seeing is purely because people are buying more goods and buying more items. I think online retailers can really take a lot away from that. I will say that especially in certain categories like electronics, apparel prices and discounts are in the range of 20%-30% That puts a lot of impact in terms of good demand because of just people buying more goods.
Dylan Lewis: Let's talk a little bit about what people are buying. You mentioned a couple of different categories there, where are you seeing a lot of interest and are there any particular products that you're seeing really spike this holiday season?
Vivek Pandya: Well, the good news is we've seen strong boosts in categories across the board. Even categories like apparel that had softer, flat to negative growth in the off season and the rest of the time in 2023, had a bit of a boost through the Cyber Five. With apparel, you really have products that have gone viral on TikTok, things like that. The Birkenstocks, the UGG Tasman slippers, and then we have cosmetic products that have done well because the gift sets and all that are really popular this season. Electronics are massive this time of the year. With the supply chain issues easing, it's a lot easier for people to get a hold of PS5s and Xbox Series X and things like that this season than previous seasons. That's helping. We've also had the iPhone 15 release, which had an initial launch and that picked up some demand. But usually the consumer continues to want some of these goods into Christmas. It has the momentum through the gift giving season. Then obviously, toys are pretty massive this time of the year. You end up seeing the perennial favorites like the Lego and the Barbie products, but you end up seeing variations. I think about Tamagotchis, which have been around for decades, but now you have the Tamagotchi Nano, Harry Potter version, which is a much more advanced version than probably we grew up with as kids. These types of items continue to be popular and we see an uptick, especially this time of year.
Dylan Lewis: Everything old is new again, right?
Vivek Pandya: Exactly.
Dylan Lewis: Exactly. You mentioned the Cyber Five earlier and I think Black Friday and Cyber Monday continue to be the main events and they get a lot of the headlines. But it does seem like, at least anecdotally, the individual days are being blurred a little bit more. Those big days are still important, but is that what you guys are seeing in the data where it's more of a season of shopping rather than these big tent pole days?
Vivek Pandya: Well, in previous years it definitely became the early season, blurring into Thanksgiving. But this season, it's been very much the discount magnitude strengthened within the 5%-10% range to the 20-35% range as we got into Thanksgiving week. You had Thanksgiving all the way up to Cyber Monday, have really strong discounts and those ones were blurring into each other. The Black Friday deals were transforming into early Cyber Monday deals. You saw that transition. But what was interesting was something like Thanksgiving, where consumers are used to going out to the shops. Five, 10 years ago, they'd go out to the shops after Thanksgiving meal and get another deal on a TV or something like that. But then with the pandemic, those stores closed on Thanksgiving and they remain closed, but the buyer propensity and that buy mode that they're in continues to persist. That's when they just turn to their smartphones after eating or while they're talking to family and then start doing their shopping. That's where we saw a lot of spending velocity kick up and that's where we saw $5.5 billion. That really set the tone for what we would see from Black Friday to Cyber Monday.
Dylan Lewis: Earlier you mentioned people looking at their phones and doing some shopping. By my count, I think for e-commerce desktop is still king. But it seems like it's barely still king. What are we seeing in terms of mobile and desktop shopping this year?
Vivek Pandya: It's exactly right, because we're crossing this threshold where mobile devices will make up about 51% share for the season and become technically the majority way that people buy online goods. However, when we think about certain days like Thanksgiving and Cyber Monday, it's already surging beyond that 51%. We almost hit 60% on Thanksgiving because as I said, there's just so much of a shift to smartphones. Well, when you're around with family, you don't want to pull out your laptop and then start shopping. But you might pull out your smartphone and be comfortable doing some shopping there. It's been really important for retailers to ensure that their mobile experiences are state of the art and are seamless and frictionless so that when the consumer does that impulse buying, they can support that demand. Because what we still see is online conversion rates and buyer rates being stronger on online desktop. We really need to see that level of strength in mobile device conversion because that's where all the momentum is going.
Dylan Lewis: Are there any retailers that are doing anything particularly interesting or novel with mobile to try to boost those conversion rates?
Vivek Pandya: Well, we think about a lot of these online retailers across the board leveraging these initiatives to get consumers to download the mobile apps, provide additional value and discounts if they download the mobile app because that strengthens the relationship, it becomes less cost prohibitive to engage them once they've downloaded the mobile app and the conversion is stronger. We see constant encouragement to download mobile apps to leverage certain types of deals, to scan QR codes. All these types of things are designed to have consumers who are very mobile first continue to think about e-commerce from a mobile first lens too. You see it also with social media apps. TikTok has been quite the social media story these past couple of years. There's been a lot of investment into these social media advertising platforms so that they can extract the value and have the consumer who's maybe going to these apps just to browse videos and things like that to quickly be shifted into the buy mode too.
Dylan Lewis: I think one thing a lot of consumers have gotten used to over the last couple of years is seeing the option to buy now pay later as they are checking out. I look at the consumer, and we've talked about this a lot on our show. It feels like we have stretched consumers between inflation, interest rates rising, student loan payments going up. It seems like there is probably going to be a decent number of people who are looking for either holiday spend to go on credit card spend or buy now pay later options. What are you seeing over there?
Vivek Pandya: The buy now pay later growth has been quite something even prior to getting into the holiday season. We're expecting about 17% growth for the season in terms of buy now pay later utilization. That will mean out of the $222 billion spent this holiday season, about $17 billion will be processed specifically through buy now pay later. We're already hitting that growth momentum right now. We've seen over eight billion dollar spent. It's definitely something consumers are leaning on. I would say multiple consumers and different audiences are leveraging it for different reasons. Some of them are maybe social savvy, younger consumers and they're going through the payment checkout process and they see, I thought I was going to spend $200. They're saying, I can just do $50 and just break it up into payments. It entices them to just jump on that bandwagon very quickly. Other consumers are in more of a financially strained position and they're having to lean on buy now pay later in order to support their gift giving budget. Really that's one of the things where we're going to have to just continue to see how that moves in the context of larger online growth. What I will say is you have that utilization. You've seen growth in integrations with buy now pay later. It's been a growth factor, but I think we'll have to see in the off season, so coming into 2024, how those growth rates continue to persist.
Dylan Lewis: One of the other consumer stories we've been seeing as a result of some of those pressures is this idea of consumers trading down a little bit and looking for lower priced items or maybe moving from one retailer to more of a discount retailer. Do you see any of that in the data that you're looking at?
Vivek Pandya: Well, it's something that we've kept a close eye on, I had mentioned earlier that since we started to see online inflation turn to online deflation.
Vivek Pandya: That really started kicking off as we look at how the prices shifted from 2021 into to mid 2023. What we're finding is, yes, people have absolutely downshifted to the cheaper goods. We've seen people go from organic products to non organic to save money there. We've seen people go from the higher end luxury version of a cosmetic item or apparel to the cheaper version. The exception a little bit is you see consumers being a little less price sensitive to that during the holiday season. Because A, discounts are helping bring down prices overall, and B, they're usually giving gifts to other people. They're very conscientious of how, the gifts will appear, that they got the person, the premium gift they were looking for versus a cheaper substitute. That's where we see a little bit more of a return to the premium luxury. But in the off season and when we're not in the holiday season, Bonanza, that's when we see people downshifting a lot to the cheaper versions. Cheaper, is sometimes they go for a completely different alternative altogether to make the most of their budget within these categories.
Jason Moser: You mentioned the discounting there, and my last question for you, Vivek is really, in service of our listeners, we saw the huge discounting happen as we would expect during the Cyber 5, and ahead of the Cyber 5. Based on what you're seeing, is this where we're going to see discounts bottom out, or should people wait a little bit on some of these purchases for the holidays?
Vivek Pandya: I would say for the most part, they have bottomed out. Especially in the key categories like apparel electronics. We do expect to see a bit more stronger discounting on December 4th for sporting goods. That's just how that particular category has. We've seen the pricing trends over the years. A bit in early December, maybe a bit more of a deal on sporting goods, but outside of that we're starting to see the discounts we can dissipate across a lot of the products. That's, again, almost seasonally how it's worked in previous years. Credit to retailers, they've had to train consumers that this is the moment and then that's why we also see a lot of spend velocity in the six to 11:00 PM. PST time on Cyber Monday, we see about over $4 billion spent that way because everyone's trying to get the discounts and get their shopping out of the way.
Dylan Lewis: Listeners, we'll put a link to Adobe's holiday shopping tracker in our show notes Coming up after the break, Jason Moser and Matt Argersinger return with a couple stocks on their radar. Stay right here, you're listening to motley money.
As always, people in the program may have interests in the stocks they talk about in the motley fool. May have formal recommendations for or against, start, buy, sell, anything based solely on what you hear. I'm Dylan Lewis joined again by Jason Moser and Matt Argersinger. We tend to focus on stocks here at the motley fool, but this week we are profiling a different investment. NBA owner and Shark Cubin is selling his majority stake in the Dallas Mavericks to Miriam Adelson, the largest shareholder in Las Vegas Sands. Matt, Cuban will remain in charge of basketball operations and he'll keep a small stake in the business. But this seems like an interesting choice in an interesting moment.
Matt Argersinger: Yes, it was a surprise to me and that's because, I think of Mark Cuban as a pretty successful businessman and investor. Well a highly successful businessman and investor, but at the same time he's this, highly passionate sports fan and team owner. Him selling his majority stake in what I thought was his passion makes me think he's calling a little bit of a medium term top in the market, in terms of professional sports team valuations, especially for non NFL franchise. I think if you look at the Jason and we were talking about this earlier in the week, NBA Major League Baseball, anything not in the NFL. I feel like we might be a little bit of a top and I think Mark Cuban actually might be calling that Cuban.
Dylan Lewis: Cuban timed it pretty well when it came to the.comboom. I think he may be able to time this one and we'll see.
Matt Argersinger: I think so.
Dylan Lewis: Let's get over to stocks on our radar. Our man behind the glass, Dan Boyd, is going to hit you with a question. Jason, you're up first. What are you looking at this week?
Jason Moser: Yeah. Keep an eye on Docusign. Ticker is DOCU. Earnings come out Wednesday after the market closes. They've got new Ish CEO Alan Tiger said he's been there about a year now, a little over a year. We should continue to hear more and more about CLM. Contract life cycle management. That's really the key to the long term strategy here, is taking that core specialty and E signature and just, expanding it out to that full life cycle management. They're adding features and capabilities that are working out. Last quarter reported a total customer base of 1.44 million. That was up 12% from a year. They also saw 6% year over year increase in customers with annualized contract value exceeding $300,000. A total of 1047 customers there. Those are metrics to keep an eye on. They tell us that not only are they landing new customers, but they're expanding the relationships with those customers, even in a time of scrutinized spending and elongated sales cycles. But listen, this is a company, they're going through a tough time, but they've grown revenue at a compound annual rate of 45% over the last five years. Good balance sheet, you want to see that stock based compensation continue to come down, but I think they're doing a good job of keeping the hyperbole to a minimum getting out of this pandemic, stay at home stock mentality and just getting back down to brass tacks. I'll be interested to see what one day brings.
Dylan Lewis: Dan a question about Docusign?
Dan Boyd: So the Docusign stock price is flat. If you don't count the pandemic, it's like the pandemic never happened. It's back to pre pandemic levels. Does this company have enough of a Mote?
Jason Moser: Man, I tell you, I think Mote is a very overused term. I don't know that they necessarily have a mode. There's competition out there, primarily in the form of Adobe. But again, I think this boils down to contract life cycle management. The more they can build out capabilities beyond a signature, the more of a competitive advantage they can build through.
Dylan Lewis: Matt, what is on your radar this week?
Matt Argersinger: Epr Properties. Dylan ticker, EPR. This is a real estate investment trust. You know, I love my reads. For all intents and purposes, this company was dead man walking after the pandemic, their biggest real estate holding movie theaters. Tough business. Well, and especially after one of their largest tenants, Regal Entertainment, filed for bankruptcy last year. Business is far from dead though, thriving this year, revenue in the third quarter is up 17%. Most of the theaters that were closed as part of the Regal bankruptcy have reopened with two operators portfolio was 99% lease at the end of the quarter, great balance sheet, eight times earnings and a 7% dividend yield. I can't turn away from this one. I'm looking to actually add to my position.Dan, a question about EPR properties.
Dylan Lewis: Matt, you go into movie theaters because I haven't been to one since 1919.
Matt Argersinger: I have it, but that's mainly because I have a four year old son at home, but I plan to get back there pretty soon. All right. Dan, which one are you putting on your watch list?
Dan Boyd: I got to tell you, I feel like docusign is becoming a verb like Xerox and Kleenex out there. It's like someone's going to send me a Docusign because.
Matt Argersinger: I'm going to go Docusign.
Dylan Lewis: That's usually a sign of brand strength. I'm right there with you, Dan. Dan, Thanks for weighing in on this week's Radar Stocks, Matt and Jason. Thank you guys for bringing them to us.
Matt Argersinger: Thank you.
Dylan Lewis: That's going to do it for this week's Motley Fool Money Radio show. The show is mixed by Dan Boyd. I'm Dylan Lewis. Thanks for listening. We'll see you next time.
Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Jason Moser has positions in Adobe, Apple, and DocuSign. Matthew Argersinger has positions in Coca-Cola, DocuSign, EPR Properties, and Tesla and has the following options: short January 2024 $57.50 puts on Coca-Cola. The Motley Fool has positions in and recommends Adobe, Apple, Bank of America, Berkshire Hathaway, DocuSign, Goldman Sachs Group, and Tesla. The Motley Fool recommends EPR Properties and recommends the following options: long January 2024 $420 calls on Adobe, long January 2024 $47.50 calls on Coca-Cola, long January 2024 $60 calls on DocuSign, and short January 2024 $430 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | He goes from, like you said, this, let's be fair, bizarre, confusing, maybe even uncomfortable at times interview at Deal Books Summit in New York to the very next day giving this exciting almost Steve Jobs-esque unveiling of the cyber truck in Austin, Texas, or as he put it, the biggest product launch of anything by far on Earth this year. Dylan Lewis: Listeners, we'll put a link to Adobe's holiday shopping tracker in our show notes Coming up after the break, Jason Moser and Matt Argersinger return with a couple stocks on their radar. Most of the theaters that were closed as part of the Regal bankruptcy have reopened with two operators portfolio was 99% lease at the end of the quarter, great balance sheet, eight times earnings and a 7% dividend yield. | In this podcast, Motley Fool host Dylan Lewis and analysts Jason Moser and Matt Argersinger discuss: The market's incredible November and why we may not be out of the woods yet on rate hikes. Dylan Lewis: Listeners, we'll put a link to Adobe's holiday shopping tracker in our show notes Coming up after the break, Jason Moser and Matt Argersinger return with a couple stocks on their radar. The Motley Fool recommends EPR Properties and recommends the following options: long January 2024 $420 calls on Adobe, long January 2024 $47.50 calls on Coca-Cola, long January 2024 $60 calls on DocuSign, and short January 2024 $430 calls on Adobe. | Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Apple wasn't one of them. Vivek Pandya: It's a great question because with online retail prices, those have actually been coming down year on year for the past couple of years because we did see prior to the pandemic, we would continue to see online deflation. Dylan Lewis: Listeners, we'll put a link to Adobe's holiday shopping tracker in our show notes Coming up after the break, Jason Moser and Matt Argersinger return with a couple stocks on their radar. | In this podcast, Motley Fool host Dylan Lewis and analysts Jason Moser and Matt Argersinger discuss: The market's incredible November and why we may not be out of the woods yet on rate hikes. Vivek Pandya: It's a great question because with online retail prices, those have actually been coming down year on year for the past couple of years because we did see prior to the pandemic, we would continue to see online deflation. Dylan Lewis: Let's talk a little bit about what people are buying. |
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12131.0 | 2023-12-12 00:00:00 UTC | Apple Inc. (AAPL) Is a Trending Stock: Facts to Know Before Betting on It | AAPL | https://www.nasdaq.com/articles/apple-inc.-aapl-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-8 | Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this maker of iPhones, iPads and other products have returned +4.5% over the past month versus the Zacks S&P 500 composite's +4.9% change. The Zacks Computer - Mini computers industry, to which Apple belongs, has gained 3.8% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Apple is expected to post earnings of $2.08 per share for the current quarter, representing a year-over-year change of +10.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.5%.
The consensus earnings estimate of $6.56 for the current fiscal year indicates a year-over-year change of +7%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $7.10 indicates a change of +8.2% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -0.2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Apple is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Apple, the consensus sales estimate for the current quarter of $117.31 billion indicates a year-over-year change of +0.1%. For the current and next fiscal years, $393.42 billion and $418.55 billion estimates indicate +2.7% and +6.4% changes, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $89.5 billion in the last reported quarter, representing a year-over-year change of -0.7%. EPS of $1.46 for the same period compares with $1.29 a year ago.
Compared to the Zacks Consensus Estimate of $88.99 billion, the reported revenues represent a surprise of +0.57%. The EPS surprise was +5.04%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. | Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Last Reported Results and Surprise History Apple reported revenues of $89.5 billion in the last reported quarter, representing a year-over-year change of -0.7%. | Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. | Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. When earnings estimates for a company go up, the fair value for its stock goes up as well. |
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12132.0 | 2023-12-12 00:00:00 UTC | Long Straddle Screener Results For December 12th | AAPL | https://www.nasdaq.com/articles/long-straddle-screener-results-for-december-12th | Volatility is back down at very low levels, with the VIX Index closing at 12.63 yesterday. When volatility is low, options become cheaper, so today we’re taking a look at the Long Straddle Screener.
A long straddle is an advanced options strategy used when a trader is seeking to profit from a big move in either direction and / or an increase in implied volatility.
To execute the strategy, a trader would buy a call and a put with the following conditions:
Both options must use the same underlying stock
Both options must have the same expiration
Both options must have the same strike price
Since it involves having to buy both a call and a put, the trader must pay two premiums up-front, which also happens to be the maximum possible loss.
The potential profit is theoretically unlimited, although the trade will lose money each day through time decay if a big move does not occur.
The position means you will start with a net debit and only profit when the underlying stock rises above the upper break-even point or falls below the lower break-even point.
Profits can be made with a smaller price move if the move happens early in the trade.
Let’s take a look at Barchart’s Long Straddle Screener for December 12th. I have added a filer for Market Cap above 40b and total call volume above 2,000.
The screener shows some interesting long straddle trades on popular stocks such as CVX, XOM, AAPL, CSCO, PFE, MSFT, OXY and BAC. Let’s walk through a couple of examples.
CVX Long Straddle Example
Let’s take a look at the first line item – a long straddle on CVX.
Using the January 19th expiry, the trade would involve buying the $145-strike call and the $145-strike put. The premium paid for the trade would be $800, which is also the maximum loss. The maximum profit is theoretically unlimited. The lower breakeven price is $137 and the upper breakeven price is $153.
The premium paid is equal to 5.54% of the stock price and the probability of success is estimated at 44.1%.
The Barchart Technical Opinion rating is an 88% Sell with an Average short term outlook on maintaining the current direction.
Long term indicators fully support a continuation of the trend.
Implied volatility is currently 21.48% compared to a twelve-month low of 17.34% and a high of 35.64%.
AAPL Long Straddle Example
Let’s take a look at the third line item – a long straddle on AAPL.
Using the January 19th expiry, the trade would involve buying the $195 strike call and the $195 strike put. The premium paid for the trade would be $845, which is also the maximum loss. The maximum profit is theoretically unlimited. The lower breakeven price is $186.55 and the upper breakeven price is $203.45.
The premium paid is equal to 4.37% of the stock price and the probability of success is estimated at 43.9%.
The Barchart Technical Opinion rating is an 88% Buy with an Average short term outlook on maintaining the current direction.
Long term indicators fully support a continuation of the trend.
Implied volatility is currently 16.93% compared to a twelve-month low of 15.80% and a high of 42.79%.
CSCO Long Straddle Example
Let’s take a look at one final straddle, a long straddle on CSCO.
Using the March 15th expiry, the trade would involve buying the $50 strike call and the $50 strike put. The premium paid for the trade would be $417, which is also the maximum loss. The maximum profit is theoretically unlimited. The lower breakeven price is $45.83 and the upper breakeven price is $54.17.
The premium paid is equal to 8.44% of the stock price and the probability of success is estimated at 43.8%.
The Barchart Technical Opinion rating is a 56% Sell with a Weakening short term outlook on maintaining the current direction.
Implied volatility is currently 16.15% compared to a twelve-month low of 13.70% and a high of 34.15%.
Mitigating Risk
Long straddles can lose money fairly quickly if the stock stay flat, and / or if implied volatility drops.
Position sizing is important so that a large loss does not cause more than a 1-2% loss in total portfolio value. Another good rule of thumb is a 20-30% stop loss.
Please remember that options are risky, and investors can lose 100% of their investment. This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.
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On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The screener shows some interesting long straddle trades on popular stocks such as CVX, XOM, AAPL, CSCO, PFE, MSFT, OXY and BAC. AAPL Long Straddle Example Let’s take a look at the third line item – a long straddle on AAPL. A long straddle is an advanced options strategy used when a trader is seeking to profit from a big move in either direction and / or an increase in implied volatility. | The screener shows some interesting long straddle trades on popular stocks such as CVX, XOM, AAPL, CSCO, PFE, MSFT, OXY and BAC. AAPL Long Straddle Example Let’s take a look at the third line item – a long straddle on AAPL. The Barchart Technical Opinion rating is an 88% Sell with an Average short term outlook on maintaining the current direction. | The screener shows some interesting long straddle trades on popular stocks such as CVX, XOM, AAPL, CSCO, PFE, MSFT, OXY and BAC. AAPL Long Straddle Example Let’s take a look at the third line item – a long straddle on AAPL. To execute the strategy, a trader would buy a call and a put with the following conditions: Both options must use the same underlying stock Both options must have the same expiration Both options must have the same strike price Since it involves having to buy both a call and a put, the trader must pay two premiums up-front, which also happens to be the maximum possible loss. | The screener shows some interesting long straddle trades on popular stocks such as CVX, XOM, AAPL, CSCO, PFE, MSFT, OXY and BAC. AAPL Long Straddle Example Let’s take a look at the third line item – a long straddle on AAPL. When volatility is low, options become cheaper, so today we’re taking a look at the Long Straddle Screener. |
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12133.0 | 2023-12-12 00:00:00 UTC | AAPL Quantitative Stock Analysis | AAPL | https://www.nasdaq.com/articles/aapl-quantitative-stock-analysis-9 | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. |
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12134.0 | 2023-12-12 00:00:00 UTC | After Hours Most Active for Dec 13, 2023 : RIVN, T, TLT, PM, CIM, NRDY, F, AMZN, MO, AAPL, MRTX, QQQ | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-dec-13-2023-%3A-rivn-t-tlt-pm-cim-nrdy-f-amzn-mo-aapl-mrtx-qqq | The NASDAQ 100 After Hours Indicator is down -23.78 to 16,538.59. The total After hours volume is currently 119,937,281 shares traded.
The following are the most active stocks for the after hours session:
Rivian Automotive, Inc. (RIVN) is -0.0611 at $19.62, with 7,754,282 shares traded. As reported by Zacks, the current mean recommendation for RIVN is in the "buy range".
AT&T Inc. (T) is -0.03 at $16.42, with 5,008,281 shares traded. T's current last sale is 82.1% of the target price of $20.
iShares 20+ Year Treasury Bond ETF (TLT) is -0.06 at $96.78, with 4,871,418 shares traded. This represents a 17.42% increase from its 52 Week Low.
Philip Morris International Inc (PM) is unchanged at $94.40, with 3,812,466 shares traded. As reported by Zacks, the current mean recommendation for PM is in the "buy range".
Chimera Investment Corporation (CIM) is unchanged at $5.11, with 3,547,970 shares traded. CIM's current last sale is 92.91% of the target price of $5.5.
Nerdy Inc. (NRDY) is unchanged at $2.96, with 2,872,061 shares traded. As reported by Zacks, the current mean recommendation for NRDY is in the "buy range".
Ford Motor Company (F) is -0.03 at $11.21, with 2,705,413 shares traded. F's current last sale is 80.07% of the target price of $14.
Amazon.com, Inc. (AMZN) is unchanged at $148.84, with 2,678,604 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Altria Group (MO) is -0.0497 at $41.97, with 2,565,977 shares traded. MO's current last sale is 91.24% of the target price of $46.
Apple Inc. (AAPL) is -0.035 at $197.93, with 2,558,603 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Mirati Therapeutics, Inc. (MRTX) is unchanged at $57.37, with 2,497,888 shares traded. MRTX's current last sale is 98.07% of the target price of $58.5.
Invesco QQQ Trust, Series 1 (QQQ) is -0.12 at $403.62, with 2,379,550 shares traded., following a 52-week high recorded in today's regular session.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Inc. (AAPL) is -0.035 at $197.93, with 2,558,603 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". iShares 20+ Year Treasury Bond ETF (TLT) is -0.06 at $96.78, with 4,871,418 shares traded. | Apple Inc. (AAPL) is -0.035 at $197.93, with 2,558,603 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for RIVN is in the "buy range". | Apple Inc. (AAPL) is -0.035 at $197.93, with 2,558,603 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 119,937,281 shares traded. | Apple Inc. (AAPL) is -0.035 at $197.93, with 2,558,603 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -23.78 to 16,538.59. |
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12135.0 | 2023-12-12 00:00:00 UTC | EXCLUSIVE-Apple offers to let rivals access tap-and-go tech in EU antitrust case, sources say | AAPL | https://www.nasdaq.com/articles/exclusive-apple-offers-to-let-rivals-access-tap-and-go-tech-in-eu-antitrust-case-sources | By Foo Yun Chee
BRUSSELS, Dec 12 (Reuters) - Apple AAPL.O has offered to let rivals access its tap-and-go mobile payments systems used for mobile wallets, three people familiar with the matter said, a move that could settle EU antitrust charges and stave off a possible hefty fine.
The EU competition enforcer last year charged Apple with curbing rivals' access to its tap-and-go technology, Near-Field Communication (NFC), making it difficult for them to develop rival services on Apple devices.
It said this benefited Apple Pay, Apple's own mobile wallet solution on iPhones and iPads, and pointed to the company's significant market power in the market for smart mobile devices and dominance in mobile wallet markets.
The European Commission is likely to seek feedback next month from rivals and customers before deciding whether to accept Apple's offer, the people said.
They said the timing of the market test and whether it will go ahead could still change.
The EU watchdog declined to comment. Apple was not immediately available for comment before U.S. working hours.
Apple Pay is used by more than 2,500 banks in Europe and over 250 fintechs and challenger banks. The NFC chip enables tap-and-go payments on iPhones and iPads.
Apple faces a second charge of preventing Spotify SPOT.N and other music streaming companies from informing users of other buying options outside its App Store in a case dating from 2020.
The Commission is expected to issue a decision next year that could include a fine and an order to stop this practice.
Companies risk fines up to 10% of their global annual turnover if found guilty of breaching EU antitrust rules.
(Reporting by Foo Yun Chee; Editing by Kirsten Donovan and Louise Heavens)
(([email protected]; +32 2 585 2866; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Foo Yun Chee BRUSSELS, Dec 12 (Reuters) - Apple AAPL.O has offered to let rivals access its tap-and-go mobile payments systems used for mobile wallets, three people familiar with the matter said, a move that could settle EU antitrust charges and stave off a possible hefty fine. The European Commission is likely to seek feedback next month from rivals and customers before deciding whether to accept Apple's offer, the people said. Apple faces a second charge of preventing Spotify SPOT.N and other music streaming companies from informing users of other buying options outside its App Store in a case dating from 2020. | By Foo Yun Chee BRUSSELS, Dec 12 (Reuters) - Apple AAPL.O has offered to let rivals access its tap-and-go mobile payments systems used for mobile wallets, three people familiar with the matter said, a move that could settle EU antitrust charges and stave off a possible hefty fine. The EU competition enforcer last year charged Apple with curbing rivals' access to its tap-and-go technology, Near-Field Communication (NFC), making it difficult for them to develop rival services on Apple devices. It said this benefited Apple Pay, Apple's own mobile wallet solution on iPhones and iPads, and pointed to the company's significant market power in the market for smart mobile devices and dominance in mobile wallet markets. | By Foo Yun Chee BRUSSELS, Dec 12 (Reuters) - Apple AAPL.O has offered to let rivals access its tap-and-go mobile payments systems used for mobile wallets, three people familiar with the matter said, a move that could settle EU antitrust charges and stave off a possible hefty fine. The EU competition enforcer last year charged Apple with curbing rivals' access to its tap-and-go technology, Near-Field Communication (NFC), making it difficult for them to develop rival services on Apple devices. It said this benefited Apple Pay, Apple's own mobile wallet solution on iPhones and iPads, and pointed to the company's significant market power in the market for smart mobile devices and dominance in mobile wallet markets. | By Foo Yun Chee BRUSSELS, Dec 12 (Reuters) - Apple AAPL.O has offered to let rivals access its tap-and-go mobile payments systems used for mobile wallets, three people familiar with the matter said, a move that could settle EU antitrust charges and stave off a possible hefty fine. It said this benefited Apple Pay, Apple's own mobile wallet solution on iPhones and iPads, and pointed to the company's significant market power in the market for smart mobile devices and dominance in mobile wallet markets. The EU watchdog declined to comment. |
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12136.0 | 2023-12-12 00:00:00 UTC | Should You Invest in the iShares Expanded Tech Sector ETF (IGM)? | AAPL | https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-expanded-tech-sector-etf-igm-10 | The iShares Expanded Tech Sector ETF (IGM) was launched on 03/13/2001, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $3.62 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. IGM seeks to match the performance of the S&P North American Technology Sector Index before fees and expenses.
The S&P North American Expanded Technology Sector Index comprises of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.41%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.38%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 80.50% of the portfolio, followed by Telecom.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
The top 10 holdings account for about 52.57% of total assets under management.
Performance and Risk
The ETF has added about 54.16% so far this year and is up roughly 47.67% in the last one year (as of 12/12/2023). In that past 52-week period, it has traded between $272.77 and $430.71.
The ETF has a beta of 1.16 and standard deviation of 26.11% for the trailing three-year period, making it a medium risk choice in the space. With about 285 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Expanded Tech Sector ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IGM is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $56.83 billion in assets, Vanguard Information Technology ETF has $57.19 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares Expanded Tech Sector ETF (IGM): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
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Technology Select Sector SPDR ETF (XLK): ETF Research Reports
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $3.62 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. | Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). The S&P North American Expanded Technology Sector Index comprises of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors. | Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. The iShares Expanded Tech Sector ETF (IGM) was launched on 03/13/2001, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market. |
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12137.0 | 2023-12-12 00:00:00 UTC | 1 Unstoppable Stock Set to Join Apple, Microsoft, Amazon, Alphabet, and Nvidia in the $1 Trillion Club in 2024 | AAPL | https://www.nasdaq.com/articles/1-unstoppable-stock-set-to-join-apple-microsoft-amazon-alphabet-and-nvidia-in-the-%241 | Warren Buffett was born in 1930 at the outset of the Great Depression. He purchased his first stock at age 11, and by 1965, he was operating his own investment company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). He still runs the company today.
Berkshire holds an incredible portfolio of public and private companies, and it has successfully navigated every post-Depression crisis to significantly outperform the benchmark S&P 500 over the last 58 years.
Berkshire's largest holding today is Apple, which became the world's first $1 trillion company in 2018. Since then, Microsoft, Amazon, Alphabet (parent company of Google), and Nvidia have all amassed trillion-dollar valuations of their own.
Thanks to Buffett's leadership, Berkshire is now valued at $772 billion, and its stellar track record suggests it could soon become the first non-technology company in the U.S. to join the $1 trillion club. Here's why it could become a $1 trillion company as soon as 2024.
Image source: The Motley Fool.
Buffett's recipe for success
Buffett is a value investor. He looks for profitable companies with consistent growth and strong management teams, and he especially likes those returning money to shareholders through dividends and stock buybacks.
He waits patiently to grab those opportunities at a reasonable price. You won't find him chasing the latest stock market trends; in fact, he's often deploying billions of dollars when most other investors are selling.
However, Buffett's most powerful weapon is time. He buys stocks with the intention of holding for decades, which allows the effects of compounding to build his wealth for him. The companies he owns grow larger over time, and so do the dividends.
For example, Berkshire invested $1.3 billion in Coca-Cola between 1988 and 1994, acquiring 400 million shares, which it still owns today. Coca-Cola paid Berkshire a dividend of $75 million in 1994 -- in 2022, that dividend payment had swelled to $704 million! Not to mention the incredible capital growth; Berkshire's 400 million Coca-Cola shares are now worth $23.6 billion.
From the brink of failure to a financial juggernaut
Berkshire Hathaway was founded as a textiles company in 1929, and Buffett acquired a controlling stake in 1965 when it was going through a rough patch. He quickly realized Berkshire's core business was no longer viable, so he turned it into a holding company for his various investments.
Today, it owns 51 different publicly traded stocks and securities worth a combined $365 billion, and Coca-Cola is just one of many success stories. The following are equally noteworthy:
American Express: Berkshire owns a 20% stake in the credit card giant, valued at $25.5 billion. But it all started with a $1.3 billion investment in the lead up to 1995, and today, the firm collects $304 million in dividends (and growing) every year.
Apple: Berkshire has invested around $35 billion in Apple stock since 2016 -- its largest ever bet. It has paid off handsomely because the stake is currently valued at more than $179 billion, accounting for almost half of the investment company's public portfolio.
Plus, Berkshire wholly owns several successful private businesses like Dairy Queen, Duracell, and GEICO.
Berkshire has a long track record of crushing the market
Buffett has presided over substantial returns for investors. Between the time he acquired a controlling stake in Berkshire in 1965 and the end of 2022, the company's stock had delivered a mind-blowing gain of 3,787,464%.
That translates to a compound annual return of 19.8%, which is twice the return of the benchmark S&P 500 index. That would've been enough to turn a perfectly timed investment of just $100 into more than $3.7 million. The incredible gain comes on the back of a stellar operating performance by Buffett and his team.
Berkshire generated just $49 million in revenue in 1965, and by 2022, that had grown to a whopping $302 billion. Over $157 billion came from sales and services across its various businesses, with an additional $74 billion coming from insurance premiums and $52 billion coming from its railroad, utilities, and energy interests. The company is on track to increase that figure by 19% in 2023, to $360 billion.
Berkshire has delivered positive growth and strong stock returns during 11 different presidencies without straying from Buffett's fundamental strategy. With a presidential election coming up in 2024, that's a great reminder for everyday investors to stay the course, no matter which candidate wins.
Berkshire could join the $1 trillion club in 2024
As I mentioned earlier, Berkshire Hathaway is valued at $772 billion. Therefore, its stock needs to gain about 30% to propel the company into the $1 trillion club. Based on its average annual return of 19.8% since 1965, it doesn't appear likely to get there in 2024.
However, there's a good possibility Berkshire could outperform next year. History suggests 2024 will almost certainly bring more positive returns for the S&P 500, and Apple stock (Berkshire's largest holding) is entering the year near its best-ever level. Plus, some of Berkshire's top income producing stocks like Apple, Coca-Cola, American Express, and Bank of America are currently paying record dividends.
The broader macroeconomic environment will likely be more favorable in 2024, too. According to CME Group's FedWatch tool, the U.S. Federal Reserve is expected to cut interest rates five times throughout the year. That will be great for Berkshire's consumer-focused businesses, and also its transport and logistics segments as lower rates should drive more economic growth.
Finally, as my Motley Fool colleague Sean Williams points out, Berkshire is buying back its own stock hand over fist. It has completed a whopping $72 billion worth of share repurchases during the past five years, so Buffett himself is clearly very bullish on its prospects.
Nevertheless, even if Berkshire doesn't make it into the $1 trillion club in 2024, it's only a matter of time.
Should you invest $1,000 in Berkshire Hathaway right now?
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. American Express is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Bank of America, Berkshire Hathaway, Microsoft, and Nvidia. The Motley Fool recommends CME Group and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Berkshire holds an incredible portfolio of public and private companies, and it has successfully navigated every post-Depression crisis to significantly outperform the benchmark S&P 500 over the last 58 years. From the brink of failure to a financial juggernaut Berkshire Hathaway was founded as a textiles company in 1929, and Buffett acquired a controlling stake in 1965 when it was going through a rough patch. Plus, some of Berkshire's top income producing stocks like Apple, Coca-Cola, American Express, and Bank of America are currently paying record dividends. | He purchased his first stock at age 11, and by 1965, he was operating his own investment company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Berkshire Hathaway wasn't one of them. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Bank of America, Berkshire Hathaway, Microsoft, and Nvidia. | Berkshire could join the $1 trillion club in 2024 As I mentioned earlier, Berkshire Hathaway is valued at $772 billion. Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Berkshire Hathaway wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company. | For example, Berkshire invested $1.3 billion in Coca-Cola between 1988 and 1994, acquiring 400 million shares, which it still owns today. Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Berkshire Hathaway wasn't one of them. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Bank of America, Berkshire Hathaway, Microsoft, and Nvidia. |
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12138.0 | 2023-12-12 00:00:00 UTC | Up 149% YTD, How High Can Roku (NASDAQ:ROKU) Stock Go in 2024? | AAPL | https://www.nasdaq.com/articles/up-149-ytd-how-high-can-roku-nasdaq%3Aroku-stock-go-in-2024 | Media streaming company Roku’s (NASDAQ:ROKU) impressive third-quarter performance has fueled its stock price, driving it up by 149% year-to-date, outperforming the S&P 500’s (SPX) gain of 22%. Roku's revenue growth has begun to pick up again. Furthermore, the advertising market's recovery could be beneficial to Roku in the short term. However, I believe it could take a few more years for Roku to be profitable, which is why I'm currently bearish on ROKU stock.
Roku’s Q3 Performance Fueled Its Stock Price Performance
Roku is a television streaming platform whose affordability, ease of use, and vast content library have made it a household name. In its recent third quarter, active accounts grew to 75.8 million globally compared to 65.4 million in the prior-year quarter. Plus, global streaming hours on the platform increased by 22% year-over-year in Q3.
What sets Roku apart is its ecosystem, which includes both hardware and software elements. Roku's hardware includes a range of streaming devices that fall under its Devices segment. Thanks to its new Roku-branded televisions, Devices revenue jumped 33% year-over-year to $125.2 million in Q3.
Meanwhile, the Platform segment revenue, generated from content distribution and video advertising, also increased by 18% to $786.8 million from the prior-year quarter.
Roku’s stock price performance this year can be attributed to its strong revenue growth, which came in at 20% year-over-year, reaching $912 million, surpassing the consensus estimate of $857 million.
Profitability is Still a Long Shot
While revenue growth has been impressive, it has not been sufficient to propel the company to profitability. However, Roku is making progress, reporting a positive adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $43.4 million for the first time in the quarter.
In an 8-K filing in September, Roku announced that it was undertaking some drastic cost-cutting strategies this year. The goal is to bring down its “year-over-year operating expense growth rate by consolidating its office space utilization, performing a strategic review of its content portfolio, reducing outside services expenses, and slowing its year-over-year headcount expense growth rate through a workforce reduction and limiting new hires, among other measures.”
Strong revenue growth and cost reductions contributed to a positive EBITDA in the third quarter, according to the company. Furthermore, Roku expects the rebound in video ads to continue in Q4, predicting $955 million in revenue for the quarter. Management also stated, “We will continue to operate our business with discipline to defend margins, with a focus on driving positive free cash flow over time.”
Meanwhile, analysts foresee Q4 revenue to be around $966 million, and Roku’s full-year 2023 revenue is expected to increase by 9.8% year-over-year to $3.43 billion.
The competition in the streaming space is heating up. Roku's ability to be profitable in the coming years will be determined by how well it maintains and grows its user base while effectively reducing costs and monetizing its platform.
Is ROKU Stock a Buy, According to Analysts?
Overall, ROKU stock has earned a Moderate Buy consensus rating on TipRanks based on analyst ratings. Recently, Wedbush analyst Alicia Reese raised ROKU stock's price target, citing the possibility that the company's initiatives will result in higher revenue growth and consistent earnings in the long run. The analyst has a Buy rating on the stock.
Meanwhile, Citi analyst Jason Bazinet maintained his Hold rating on the stock, stating that while Roku's financial metrics may improve, the company's long-term outlook remains uncertain.
Out of the 23 analysts covering the stock, eight rate it a Buy, 13 rate it a Hold, and two rate the stock a Sell. ROKU has soared following its third-quarter results, surpassing its average price target of $87.84.
ROKU's high target price of $120, on the other hand, indicates upside potential of 18% in the next 12 months.
Since Roku is not profitable, it can be valued only based on its sales. Based on its estimated revenue growth of 11.8% to $3.84 billion in 2024, Roku is priced at a reasonable forward price-to-sales (P/S) ratio of 3.8, lower than its historical average of 10.8. Roku is also valued cheaper than its bigger competitors in the industry, Netflix (NASDAQ:NFLX) and Apple (NASADAQ:AAPL), which have forward P/S ratios of 5.2 and 7.1, respectively.
The Bottom Line on Roku
Despite the ongoing increase in streaming demand, it has notably declined from the peak levels experienced during the pandemic, as people are spending less time at home. While Roku is reasonably valued for a growth stock, it may be a few years before the company sees green in its bottom line. Until it is profitable, I will be steering clear of Roku.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Roku is also valued cheaper than its bigger competitors in the industry, Netflix (NASDAQ:NFLX) and Apple (NASADAQ:AAPL), which have forward P/S ratios of 5.2 and 7.1, respectively. Recently, Wedbush analyst Alicia Reese raised ROKU stock's price target, citing the possibility that the company's initiatives will result in higher revenue growth and consistent earnings in the long run. Meanwhile, Citi analyst Jason Bazinet maintained his Hold rating on the stock, stating that while Roku's financial metrics may improve, the company's long-term outlook remains uncertain. | Roku is also valued cheaper than its bigger competitors in the industry, Netflix (NASDAQ:NFLX) and Apple (NASADAQ:AAPL), which have forward P/S ratios of 5.2 and 7.1, respectively. Media streaming company Roku’s (NASDAQ:ROKU) impressive third-quarter performance has fueled its stock price, driving it up by 149% year-to-date, outperforming the S&P 500’s (SPX) gain of 22%. Roku’s Q3 Performance Fueled Its Stock Price Performance Roku is a television streaming platform whose affordability, ease of use, and vast content library have made it a household name. | Roku is also valued cheaper than its bigger competitors in the industry, Netflix (NASDAQ:NFLX) and Apple (NASADAQ:AAPL), which have forward P/S ratios of 5.2 and 7.1, respectively. Media streaming company Roku’s (NASDAQ:ROKU) impressive third-quarter performance has fueled its stock price, driving it up by 149% year-to-date, outperforming the S&P 500’s (SPX) gain of 22%. Roku’s Q3 Performance Fueled Its Stock Price Performance Roku is a television streaming platform whose affordability, ease of use, and vast content library have made it a household name. | Roku is also valued cheaper than its bigger competitors in the industry, Netflix (NASDAQ:NFLX) and Apple (NASADAQ:AAPL), which have forward P/S ratios of 5.2 and 7.1, respectively. However, I believe it could take a few more years for Roku to be profitable, which is why I'm currently bearish on ROKU stock. Roku’s stock price performance this year can be attributed to its strong revenue growth, which came in at 20% year-over-year, reaching $912 million, surpassing the consensus estimate of $857 million. |
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12139.0 | 2023-12-11 00:00:00 UTC | Here’s What to Expect From Apple Stock in 2024 | AAPL | https://www.nasdaq.com/articles/heres-what-to-expect-from-apple-stock-in-2024 | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As a member of the “Magnificent Seven,” Apple (NASDAQ:AAPL) earned the market’s favor throughout 2023. However, this doesn’t guarantee similar results for Apple’s investors in 2024. Overall, the outlook for AAPL stock is good and we’re assigning it a “B” grade, but there’s no urgency to buy it now if you don’t want to.
It’s amazing to consider how quickly Apple’s market capitalization swelled from $2 trillion to $3 trillion. Getting Apple’s market cap to $4 trillion might not be so quick or easy. Ultimately, Apple’s shareholders should expect decent returns over the long run, but also need to acknowledge Apple’s challenges in the coming year.
Apple’s Shift Away From China
Relations between the U.S. and China were strained in 2023, and the situation might not get any better next year. This is relevant, as China has banned government officials from using Apple’s iPhones at work. Plus, the U.S. government has limited the exports of certain technology components to China.
Amid this tense backdrop, Apple is taking actions to shift its operations away from China. In particular, the company has its eye on India as a major source of components. According to The Wall Street Journal, Apple “and its suppliers aim to build over 50 million iPhones in India annually within the next two to three years,” followed by an “additional tens of millions of units after that.”
Furthermore, Apple is in the process of moving its iPad product-development operations from China to Vietnam. This may be a savvy move for Apple, especially if Sino-U.S. relations deteriorate during the coming quarters. Going forward, investors should keep tabs on Apple’s production costs to see if the company’s operational shifts have a positive long-term impact on Apple’s financials.
Serious Concerns for AAPL Stock Investors
There’s no denying that AAPL stock ran fast in 2023. Do Apple’s fundamentals justify the share-price move, though? It’s a question that one particular analysts wants investors to consider.
Barclays Senior Analyst Tim Long said that he struggles with Apple’s “multiple and valuation.” Not long ago, Apple’s trailing 12-month price-to-earnings ratio was above 31x, versus Apple’s five-year average P/E ratio of 26.42x.
Long observed that Apple’s near-term forecasts aren’t highly optimistic. “They’ve basically lowered guidance maybe four quarters in a row. They don’t give official guidance, but numbers have come down for four quarters in a row,” Long stated.
Along with that, Long sees soft demand for Apple’s products, and especially the iPhone, in China. Notably, Apple’s revenue from China fell 2.5% year over year in the company’s most recently reported quarter.
Be Cautiously Optimistic With AAPL Stock
You might or might not agree with Long, who concluded that Apple’s “fundamentals are not good.” Still, it’s reasonable to be concerned that Apple may be somewhat overvalued after this year’s powerful share-price rally.
Apple has its share of challenges to overcome, but the company will probably continue to grow its market cap in the long term. Therefore, AAPL stock earns a “B” grade. Investors may choose to hold their Apple shares and possibly add to their positions, but there’s no need to over-invest in Apple right now.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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The post Here’s What to Expect From Apple Stock in 2024 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips As a member of the “Magnificent Seven,” Apple (NASDAQ:AAPL) earned the market’s favor throughout 2023. Overall, the outlook for AAPL stock is good and we’re assigning it a “B” grade, but there’s no urgency to buy it now if you don’t want to. Serious Concerns for AAPL Stock Investors There’s no denying that AAPL stock ran fast in 2023. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips As a member of the “Magnificent Seven,” Apple (NASDAQ:AAPL) earned the market’s favor throughout 2023. Serious Concerns for AAPL Stock Investors There’s no denying that AAPL stock ran fast in 2023. Overall, the outlook for AAPL stock is good and we’re assigning it a “B” grade, but there’s no urgency to buy it now if you don’t want to. | Be Cautiously Optimistic With AAPL Stock You might or might not agree with Long, who concluded that Apple’s “fundamentals are not good.” Still, it’s reasonable to be concerned that Apple may be somewhat overvalued after this year’s powerful share-price rally. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As a member of the “Magnificent Seven,” Apple (NASDAQ:AAPL) earned the market’s favor throughout 2023. Overall, the outlook for AAPL stock is good and we’re assigning it a “B” grade, but there’s no urgency to buy it now if you don’t want to. | Be Cautiously Optimistic With AAPL Stock You might or might not agree with Long, who concluded that Apple’s “fundamentals are not good.” Still, it’s reasonable to be concerned that Apple may be somewhat overvalued after this year’s powerful share-price rally. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As a member of the “Magnificent Seven,” Apple (NASDAQ:AAPL) earned the market’s favor throughout 2023. Overall, the outlook for AAPL stock is good and we’re assigning it a “B” grade, but there’s no urgency to buy it now if you don’t want to. |
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12140.0 | 2023-12-11 00:00:00 UTC | Goldman (GS) to Expand Private Credit, Reshuffles Executives | AAPL | https://www.nasdaq.com/articles/goldman-gs-to-expand-private-credit-reshuffles-executives | The Goldman Sachs Group, Inc. GS intends to capitalize on the significant growth of the private credit industry. It aims to double the size of its business with assets worth $110 billion under management over the medium term.
Per Bloomberg, Marc Nachmann stated, “We think it’s the biggest opportunity set across the alternative space.”
According to an internal memo circulated by the company, GS has been making changes in its senior executives’ positions. It appointed Greg Olafson as its global head of private credit. Also, it appointed James Reynolds as the global head of direct lending and Kevin Sterling as the global head of investment-grade private credit and asset finance.
The private credit market has shown impressive growth over the years. Per Morgan Stanley’s private credit outlook that cited Bloomberg's January 2023 data, the size of the private credit market in the United States at the beginning of 2023 was approximately $1.4 trillion, up from $875 billion in 2020. Further, it is projected to reach $2.3 trillion by 2027.
The expansion into the private credit space will drive Goldman’s revenue growth efforts to scale back its consumer banking footprint and focus on its core strengths of investment banking, trading and asset management.
Accordingly, in October 2023, the company entered into an agreement with a consortium led by investment firm Sixth Street Partners to divest its consumer lending platform, GreenSky, and associated loans. In August 2023, it also entered into an agreement to divest its Personal Financial Management unit to the leading registered investment advisor, Creative Planning.
Last month, Goldman received a proposal from Apple Inc. AAPL to end the credit card partnership in the next 12-15 months. Per a Reuters article, the proposal included retreating from the entire consumer partnership with Goldman. This included both credit card and savings account facilities.
Goldman’s shares have risen 2.7% over the past six months compared with the industry’s 4.5% growth.
Image Source: Zacks Investment Research
GS presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the current scenario, Goldman is not the only one expanding into the direct lending space. Given the opportunities in this market, major banks like Citigroup Inc. C and JPMorgan Chase & Co. JPM have also been looking for prospective partners to expand their offerings in the private lending business.
C intends to enter the direct lending space by early January next year. This was reported by Bloomberg. According to a source familiar with the matter, “The initiative would complement the bank’s existing broadly syndicated leveraged finance business”. Citigroup is expected to associate with one or more partners as it would aid in providing the necessary capital for giving loans.
JPM is also on the lookout for a potential partner to enhance its operations in the private credit space. This was first reported by Bloomberg in early November. Per people familiar with the matter, the discussions were at an early stage with various sovereign wealth funds, endowments and alternate asset managers.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Last month, Goldman received a proposal from Apple Inc. AAPL to end the credit card partnership in the next 12-15 months. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Citigroup Inc. (C) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Per Bloomberg, Marc Nachmann stated, “We think it’s the biggest opportunity set across the alternative space.” According to an internal memo circulated by the company, GS has been making changes in its senior executives’ positions. | Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Citigroup Inc. (C) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Last month, Goldman received a proposal from Apple Inc. AAPL to end the credit card partnership in the next 12-15 months. The Goldman Sachs Group, Inc. GS intends to capitalize on the significant growth of the private credit industry. | Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Citigroup Inc. (C) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Last month, Goldman received a proposal from Apple Inc. AAPL to end the credit card partnership in the next 12-15 months. Per Morgan Stanley’s private credit outlook that cited Bloomberg's January 2023 data, the size of the private credit market in the United States at the beginning of 2023 was approximately $1.4 trillion, up from $875 billion in 2020. | Last month, Goldman received a proposal from Apple Inc. AAPL to end the credit card partnership in the next 12-15 months. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Citigroup Inc. (C) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Per Morgan Stanley’s private credit outlook that cited Bloomberg's January 2023 data, the size of the private credit market in the United States at the beginning of 2023 was approximately $1.4 trillion, up from $875 billion in 2020. |
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12141.0 | 2023-12-11 00:00:00 UTC | HYG, QGRW: Big ETF Inflows | AAPL | https://www.nasdaq.com/articles/hyg-qgrw%3A-big-etf-inflows | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares iBoxx $ High Yield Corporate Bond ETF, which added 12,500,000 units, or a 5.5% increase week over week.
And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree U.S. Quality Growth Fund, which added 825,000 units, for a 35.5% increase in outstanding units. Among the largest underlying components of QGRW, in morning trading today Apple is up about 0.9%, and Microsoft is higher by about 0.2%.
VIDEO: HYG, QGRW: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares iBoxx $ High Yield Corporate Bond ETF, which added 12,500,000 units, or a 5.5% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree U.S. Quality Growth Fund, which added 825,000 units, for a 35.5% increase in outstanding units. Among the largest underlying components of QGRW, in morning trading today Apple is up about 0.9%, and Microsoft is higher by about 0.2%. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares iBoxx $ High Yield Corporate Bond ETF, which added 12,500,000 units, or a 5.5% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree U.S. Quality Growth Fund, which added 825,000 units, for a 35.5% increase in outstanding units. VIDEO: HYG, QGRW: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares iBoxx $ High Yield Corporate Bond ETF, which added 12,500,000 units, or a 5.5% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree U.S. Quality Growth Fund, which added 825,000 units, for a 35.5% increase in outstanding units. VIDEO: HYG, QGRW: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares iBoxx $ High Yield Corporate Bond ETF, which added 12,500,000 units, or a 5.5% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree U.S. Quality Growth Fund, which added 825,000 units, for a 35.5% increase in outstanding units. Among the largest underlying components of QGRW, in morning trading today Apple is up about 0.9%, and Microsoft is higher by about 0.2%. |
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12142.0 | 2023-12-11 00:00:00 UTC | The "Magnificent Seven" Stocks Crushed Wall Street in 2023, but This Stock Could Continue the Party in 2024 | AAPL | https://www.nasdaq.com/articles/the-magnificent-seven-stocks-crushed-wall-street-in-2023-but-this-stock-could-continue-the | The "Magnificent Seven," a select group of the world's largest technology companies, has been the story of Wall Street this year. These stocks have seen gains of between 50% and 219% since in 2023.
Such gains aren't typical for stocks, especially those that are already among the largest market cap companies on the planet. It's fair to wonder whether the party will end in 2024.
Unfortunately, these types of gains probably won't go on forever. However, there could be one exception, one of the "Magnificent Seven" that's just getting started.
A year for the ages
If you're unfamiliar with the Magnificent Seven, they are Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA). They are not only leaders in their fields but have massive revenue and profits, are trusted brands, and have the attention of investors and consumers.
It's been a great year if you've been holding these stocks. The most popular stocks don't always perform well, but 2023 was an extraordinary year.
AAPL data by YCharts.
Investors must always put things in context, and this is no exception. While these stocks have gone to the metaphorical moon, their valuations have mostly followed. Their forward price-to-earnings ratios have risen by as much as 160%, except for one.
AAPL PE Ratio (Forward) data by YCharts.
Chip company Nvidia's forward earnings valuation actually fell despite its massive share price growth this year. That's because Nvidia is at the front of a generational growth opportunity, similar to what the internet or cloud technology did for the modern economy.
A $2 trillion industry in the making
Nvidia emerged as a force in artificial intelligence (AI). AI models require a ton of computing power to process immense amounts of data quickly. The hardware that provides that power is what allows users to type complex questions into large language models like ChatGPT and get detailed answers in seconds. Nvidia specializes in chips designed for these high-compute workloads.
Analysts estimate that it has a market share of between 70% and 95% in that slice of the chip market, dominating an industry with billions of dollars of investment pouring in. That shows up in Nvidia's financials, too, where its revenue growth has taken off in 2023.
NVDA Revenue (Quarterly YoY Growth) data by YCharts.
This could only be the beginning. Lisa Su, CEO of rival Advanced Micro Devices, has predicted the AI chip market will balloon to over $400 billion in the coming years. Researchers at Statista believe the global AI market opportunity will be worth as much as $2 trillion by 2030.
Even if AMD and other competitors chip away at Nvidia's market share, the growth of the pie could offset a lot of what they take from it. Remember, Nvidia's companywide revenue is at $45 billion today. A $400 billion chip market that Nvidia dominates should translate to years of revenue growth.
Somehow, Nvidia stock is still affordable
If these predictions are remotely accurate, you can make the case that Nvidia is still cheap today. Analysts believe Nvidia's earnings per share will come in at around $12.29 for the year. That gives it a price-to-earnings ratio of 38.
Growth expectations rocketed higher as Nvidia's growth accelerated and showed the impact AI could have on its business.
NVDA EPS LT Growth Estimates data by YCharts.
For a business growing earnings at 39%, a price-to-earnings ratio of 38 is a fine valuation. There are risks, in that Nvidia must live up to these high expectations. The stock has also risen by more than 200% since January, and any stock on that kind of a tear can cool off, so investors should expect some volatility.
But when all is said and done, AI would have to be a complete fluke for the long-term trend to point anywhere but up. Nvidia controls most of the market's AI chips, the building blocks of this new technology. That's a great driver's seat for the company and an opportunity for investors to ride Nvidia higher.
Should you invest $1,000 in Nvidia right now?
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A year for the ages If you're unfamiliar with the Magnificent Seven, they are Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA). AAPL data by YCharts. AAPL PE Ratio (Forward) data by YCharts. | A year for the ages If you're unfamiliar with the Magnificent Seven, they are Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA). AAPL data by YCharts. AAPL PE Ratio (Forward) data by YCharts. | A year for the ages If you're unfamiliar with the Magnificent Seven, they are Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA). AAPL data by YCharts. AAPL PE Ratio (Forward) data by YCharts. | A year for the ages If you're unfamiliar with the Magnificent Seven, they are Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA). AAPL data by YCharts. AAPL PE Ratio (Forward) data by YCharts. |
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12143.0 | 2023-12-11 00:00:00 UTC | Is Lumentum a Top Stock to Buy in 2024? | AAPL | https://www.nasdaq.com/articles/is-lumentum-a-top-stock-to-buy-in-2024 | Lumentum's (NASDAQ: LITE) stock price has declined nearly 50% over the past three years. The maker of optical chips and lasers lost its luster as its revenue growth cooled off, its margins shrank, and it faced fresh competitive threats.
Since investing often involves looking toward the potential for future growth, should investors consider buying Lumentum as a turnaround play for 2024? Let's look at its previous challenges, its plans for growth, and its valuation to find out.
Image source: Getty Images.
What happened to Lumentum over the past five years?
In fiscal 2023 (which ended this July), Lumentum generated 88% of its revenue from its optical communications segment. This business produces optical chips for service providers, as well as 3D-sensing VCSEL (vertical-cavity surface-emitting laser) chips for mobile devices, cars, 3D printers, and other industrial machines. The remaining 12% of its revenue came from commercial manufacturing lasers. Here's how those two core businesses fared over the past five years.
METRIC
FY 2019
FY 2020
FY 2021
FY 2022
FY 2023
Optical communications revenue growth
29%
11%
7%
(6%)
3%
Lasers revenue growth
4%
(16%)
(25%)
59%
8%
Total revenue growth
26%
7%
4%
(2%)
3%
Data source: Lumentum.
The growth of its optical communications segment accelerated in fiscal 2019 as Apple (NASDAQ: AAPL) started installing its VCSEL chips in its iPhones. Other smartphone makers followed Apple's lead and started buying its VCSEL chips.
But over the following three years, the smartphone market cooled off. Apple also split Lumentum's VCSEL orders with Coherent (NYSE: COHR) and Sony (NYSE: SONY). As a result, the Mac maker's contribution to Lumentum's top line dropped from 30% in fiscal 2021 to 12% in fiscal 2023. At the same time, Apple reportedly increased Sony's share of its total VCSEL orders for the iPhone 15 because its chips were faster and more power efficient.
The U.S. trade restrictions against China also forced Lumentum to stop selling chips to Huawei, which had accounted for 11% of its revenue in fiscal 2021. That percentage dropped to zero over the following two years. Finally, macro headwinds over the past two years throttled its sales of optical chips to service providers, industrial customers, and telecom equipment giants like Ciena and Nokia, which together accounted for 26% of its revenue in fiscal 2023.
That gradual recovery of its commercial laser business, which suffered major disruptions during the pandemic, couldn't offset the sluggish growth of its optical communications segment. That slowdown drove it to buy NeoPhotonics and Cloud Light -- which both serve the higher-growth cloud and data center markets -- over the past two years to diversify its customer base.
Can Lumentum impress the bulls again?
For fiscal 2024, analysts expect Lumentum's revenue to decline 17% to $1.47 billion, even as it adds Cloud Light to its newly formed "cloud and networking" unit (formerly known as its optical communications unit). Lumentum also racked up a net loss of $132 million in fiscal 2023, and analysts project an even wider net loss of $189 million in fiscal 2024.
The company's slowing revenue growth, recent acquisitions, rising mix of lower-margin products, and underutilization of its factories all crushed its gross and operating margins in fiscal 2023. Analysts expect that pressure to persist and reduce its adjusted operating margin from 19.2% in fiscal 2023 to just 4.9% in fiscal 2024.
Those bleak forecasts indicate that Lumentum hasn't reached the trough of its cyclical downturn yet. It's preparing for a future without Apple as it expands its portfolio of higher-speed optical devices for cloud and data center customers, but those new businesses simply aren't generating enough revenue to offset its other weaknesses yet.
Its valuation isn't compelling yet
With an enterprise value of $4.5 billion, Lumentum might seem reasonably valued at 3 times this year's sales and 28 times its forward-adjusted earnings. But it isn't cheap yet, and it's easy to find other tech stocks that have more growth potential or are trading at lower valuations. It also lacks clear competitive advantages against Sony and Coherent in the VCSEL market. Simply put, I believe Lumentum's decline over the past three years was justified, and I don't see any compelling reasons to buy its stock as a turnaround play for 2024.
Should you invest $1,000 in Lumentum right now?
Before you buy stock in Lumentum, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Lumentum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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*Stock Advisor returns as of December 11, 2023
Leo Sun has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Coherent and Lumentum. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The growth of its optical communications segment accelerated in fiscal 2019 as Apple (NASDAQ: AAPL) started installing its VCSEL chips in its iPhones. Finally, macro headwinds over the past two years throttled its sales of optical chips to service providers, industrial customers, and telecom equipment giants like Ciena and Nokia, which together accounted for 26% of its revenue in fiscal 2023. The company's slowing revenue growth, recent acquisitions, rising mix of lower-margin products, and underutilization of its factories all crushed its gross and operating margins in fiscal 2023. | The growth of its optical communications segment accelerated in fiscal 2019 as Apple (NASDAQ: AAPL) started installing its VCSEL chips in its iPhones. Optical communications revenue growth 29% 11% 7% (6%) 3% Lasers revenue growth 4% (16%) (25%) 59% 8% Total revenue growth 26% 7% 4% (2%) 3% Data source: Lumentum. Apple also split Lumentum's VCSEL orders with Coherent (NYSE: COHR) and Sony (NYSE: SONY). | The growth of its optical communications segment accelerated in fiscal 2019 as Apple (NASDAQ: AAPL) started installing its VCSEL chips in its iPhones. Optical communications revenue growth 29% 11% 7% (6%) 3% Lasers revenue growth 4% (16%) (25%) 59% 8% Total revenue growth 26% 7% 4% (2%) 3% Data source: Lumentum. For fiscal 2024, analysts expect Lumentum's revenue to decline 17% to $1.47 billion, even as it adds Cloud Light to its newly formed "cloud and networking" unit (formerly known as its optical communications unit). | The growth of its optical communications segment accelerated in fiscal 2019 as Apple (NASDAQ: AAPL) started installing its VCSEL chips in its iPhones. What happened to Lumentum over the past five years? Optical communications revenue growth 29% 11% 7% (6%) 3% Lasers revenue growth 4% (16%) (25%) 59% 8% Total revenue growth 26% 7% 4% (2%) 3% Data source: Lumentum. |
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12144.0 | 2023-12-11 00:00:00 UTC | DGRW Has Hallmarks of a Great Dividend ETF | AAPL | https://www.nasdaq.com/articles/dgrw-has-hallmarks-of-a-great-dividend-etf | There are scores of dividend exchange traded funds for advisors and investors to consider, and few are alike. However, there are some primary weighting methodologies found among such ETFs.
Those are weighting by yield, an emphasis on payout growth or a blend of the two. The WisdomTree US Quality Dividend Growth Fund (DGRW) fits in the second category, and that’s a positive for investors. For the three years ending December 11, the $10.8 billion ETF outperformed the S&P 500, the largest U.S.-listed dividend ETF and the Morningstar Dividend Yield Focus Index, confirming the WisdomTree ETF is a viable alternative basic core equity strategies fund.
DGRW has also shined bright relative to other such funds in the current environment of high interest rates. Since the start of 2022, the Federal Reserve hiked rates 11 times. While that hasn’t been a death knell for such ETFs over the past 24 months, DGRW topped the Morningstar Dividend Yield Focus Index during that period.
Why Dividend ETF DGRW Matters
DGRW breaks from the payout growth ETF pack by not focusing on dividend increase, but rather on companies’ return on assets and return on equity. These metrics can be harbingers of future dividend growth while steering investors away from payout cuts and suspensions.
“They are willing to accept lower current yields in exchange for higher future payouts and typically favor stocks with durable competitive advantages, long histories of dividend growth, and strong profitability,” according to Morningstar. “The stocks they invest in tend to trade at higher price multiples than those with higher dividend yields, reflecting their better outlooks but also raising the hurdle for future returns.”
By eschewing an emphasis on yield, DGRW can check some important boxes for investors. These include the potential for reduced volatility, the possibility of greater capital appreciation, and higher levels of diversification. After all, many of the highest-yielding stocks hail from a small number of slow growth, interest-rate-sensitive sectors. Those include real estate and utilities, groups that combine for just 1.49% of DGRW's roster.
Plus, the ETF's 31% weight to tech stocks, including a more than 15% combined allocation to Microsoft (MSFT) and Apple (AAPL), can help the fund keep pace with tech-led rallies. That's something many dividend ETFs don’t do.
“They don’t always keep pace with the broader market during rallies. Dividend growth funds typically underperform the market during periods of exceptionally strong growth, when expensive stocks that pay little, if any, dividends fuel the market’s rise,” concluded Morningstar.
For more news, information, and analysis, visit the Modern Alpha Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Plus, the ETF's 31% weight to tech stocks, including a more than 15% combined allocation to Microsoft (MSFT) and Apple (AAPL), can help the fund keep pace with tech-led rallies. While that hasn’t been a death knell for such ETFs over the past 24 months, DGRW topped the Morningstar Dividend Yield Focus Index during that period. “They are willing to accept lower current yields in exchange for higher future payouts and typically favor stocks with durable competitive advantages, long histories of dividend growth, and strong profitability,” according to Morningstar. | Plus, the ETF's 31% weight to tech stocks, including a more than 15% combined allocation to Microsoft (MSFT) and Apple (AAPL), can help the fund keep pace with tech-led rallies. For the three years ending December 11, the $10.8 billion ETF outperformed the S&P 500, the largest U.S.-listed dividend ETF and the Morningstar Dividend Yield Focus Index, confirming the WisdomTree ETF is a viable alternative basic core equity strategies fund. “They are willing to accept lower current yields in exchange for higher future payouts and typically favor stocks with durable competitive advantages, long histories of dividend growth, and strong profitability,” according to Morningstar. | Plus, the ETF's 31% weight to tech stocks, including a more than 15% combined allocation to Microsoft (MSFT) and Apple (AAPL), can help the fund keep pace with tech-led rallies. For the three years ending December 11, the $10.8 billion ETF outperformed the S&P 500, the largest U.S.-listed dividend ETF and the Morningstar Dividend Yield Focus Index, confirming the WisdomTree ETF is a viable alternative basic core equity strategies fund. Why Dividend ETF DGRW Matters DGRW breaks from the payout growth ETF pack by not focusing on dividend increase, but rather on companies’ return on assets and return on equity. | Plus, the ETF's 31% weight to tech stocks, including a more than 15% combined allocation to Microsoft (MSFT) and Apple (AAPL), can help the fund keep pace with tech-led rallies. Those are weighting by yield, an emphasis on payout growth or a blend of the two. That's something many dividend ETFs don’t do. |
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12145.0 | 2023-12-11 00:00:00 UTC | AAPL Factor-Based Stock Analysis | AAPL | https://www.nasdaq.com/articles/aapl-factor-based-stock-analysis-12 | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. |
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12146.0 | 2023-12-11 00:00:00 UTC | 1 Stunning Stock Market Statistic That Will Have You Racing for the "Buy" Button | AAPL | https://www.nasdaq.com/articles/1-stunning-stock-market-statistic-that-will-have-you-racing-for-the-buy-button | The S&P stock market index included just 90 companies in 1926. It was expanded to include 500 companies in 1957, and subsequently became the S&P 500 (SNPINDEX: ^GSPC). Since then, it has served as the benchmark used by investors to measure the performance of the broader market.
There is a mountain of evidence that proves a diversified portfolio of stocks can generate incredible wealth over the long term. For example, if you invested $1,000 in an S&P 500 index fund in 1957 (with dividends reinvested), it would be worth over $671,000 today.
That represents a compound annual return of 10.2% over the last 67 years! But there's an even more impressive statistic beneath the surface of that number that might have you racing to invest in the stock market for the long term.
Image source: Getty Images.
Index funds are great, but some individual stocks have performed even better
It's a great honor to be accepted into the S&P 500 because constituents have to meet strict criteria. A company must be worth at least $14.5 billion, it must be profitable in the most recent 12-month period, and at least 50% of its shares must be available for public trading. That's a just sample of the requirements, but even after ticking all the boxes, the company still has to be selected by the U.S. Index Committee.
It's a surefire way to guarantee only the highest-quality companies make the cut. After all, they will be joining stocks like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), which are the two most important components of the S&P 500. They have a combined market value of $5.8 trillion, and as a result, they account for 15.5% of the index's weight.
But investors who bought those two stocks individually have significantly outperformed the index over the long term:
Apple stock came public in 1980 at a split-adjusted price of about $0.10 per share. It now trades above $190 per share, for a return of over 190,000%.
Microsoft stock came public in 1986 at a split-adjusted price of about $0.0729 per share. At a recent price above $370, its shares have produced gains of well over 500,000%.
That means $1,000 invested in Apple at its IPO would be worth $1.9 million today. The same amount invested in Microsoft at its IPO would be worth almost $5.1 million. It further proves there is no one way to invest in the stock market; investors of all experience levels, and with differing appetites for risk, can all build fortunes over the long term.
Here's the statistic that will make you race to buy stocks
Since 1957, the S&P 500 has posted an annual loss 15 times, and it has delivered a positive annual return 52 times. That means you are more than 3 times as likely to make money investing in stocks during a given year than you are to lose money. But it gets better.
The index has delivered an annual return of at least 10% on 41 occasions. That means you're more than twice as likely to reap a double-digit gain than you are to incur a loss (of any size) in a given year.
But here's my favorite statistic, and the one that might convince you to invest in the stock market for the long term. The S&P 500 has delivered an annual return of 20% (or more) on 24 occasions since 1957. That means you are more likely to earn a return that is twice the long-term average (10%) than you are to suffer a loss of any kind!
If you've missed out on the stock market's incredible run of success so far, don't worry. It's never too late to invest, because the best years might still be to come.
Should you invest $1,000 in S&P 500 Index-Price Return (USD) right now?
Before you buy stock in S&P 500 Index-Price Return (USD), consider this:
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Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | After all, they will be joining stocks like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), which are the two most important components of the S&P 500. There is a mountain of evidence that proves a diversified portfolio of stocks can generate incredible wealth over the long term. But there's an even more impressive statistic beneath the surface of that number that might have you racing to invest in the stock market for the long term. | After all, they will be joining stocks like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), which are the two most important components of the S&P 500. But investors who bought those two stocks individually have significantly outperformed the index over the long term: Apple stock came public in 1980 at a split-adjusted price of about $0.10 per share. Here's the statistic that will make you race to buy stocks Since 1957, the S&P 500 has posted an annual loss 15 times, and it has delivered a positive annual return 52 times. | After all, they will be joining stocks like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), which are the two most important components of the S&P 500. But investors who bought those two stocks individually have significantly outperformed the index over the long term: Apple stock came public in 1980 at a split-adjusted price of about $0.10 per share. Before you buy stock in S&P 500 Index-Price Return (USD), consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and S&P 500 Index-Price Return (USD) wasn't one of them. | After all, they will be joining stocks like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), which are the two most important components of the S&P 500. The S&P stock market index included just 90 companies in 1926. But investors who bought those two stocks individually have significantly outperformed the index over the long term: Apple stock came public in 1980 at a split-adjusted price of about $0.10 per share. |
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12147.0 | 2023-12-11 00:00:00 UTC | Google's court loss to Epic Games may cost billions but final outcome years away | AAPL | https://www.nasdaq.com/articles/googles-court-loss-to-epic-games-may-cost-billions-but-final-outcome-years-away | By Jaspreet Singh and Harshita Mary Varghese
Dec 12 (Reuters) - Google's stunning defeat in a legal battle with "Fortnite" maker Epic Games may clear the way for rival app stores on its Android mobile system but a lengthy appeals process will likely prevent any changes for years, according to analysts and legal experts.
A jury in California found on Monday that the Alphabet-owned company's GOOGL.O Play app store operated as an illegal monopoly, quashing competition and charging app developers unduly high fees of up to 30%.
Epic Games will now have a chance to submit a court filing on how it wants Google's Play Store to be fixed -- potentially putting at risk what Wells Fargo estimates is $10 billion in annual revenue from app sales and in-app purchases for the tech giant.
"This is a big win for Epic," said Pinar Akman, professor of competition law at the University of Leeds.
"The usual remedy in such case ... would mean Google may be required to allow developers to use payment systems other than Google's. If such a remedy is adopted, then that will have an impact on the entire ecosystem and business model."
Google takes a cut on each digital purchase through Play Store on Android, the mobile system it develops. While revenue from such transactions is a fraction of the total sales, it's a high-margin business for the company, according to analysts.
The remedies could force it to allow rival app stores or lower the fees it charges on app sales and in-app purchases.
Alphabet shares were down nearly 1% on Tuesday.
The unanimous ruling by the jury will intensify pressure on Google at a time it is caught in a legal battle with the U.S. Justice Department (DoJ), which has accused the online search leader of breaking antitrust law to stay on top.
"It's worth noting the ad tech case is also a jury trial. Ad tech is more complicated than app stores, but DOJ still must be feeling encouraged by last night's jury ruling," analysts at TD Cowen said.
The decision is also expected to deepen questions over Apple's AAPL.O market dominance. The company won a similar fight against Epic but both the companies have approached the Supreme Court to review their dispute.
While it may not directly impact the case, the Google ruling will amplify questions about the influence Apple exerts through its App Store, said Eleanor Fox, professor emerita at the New York University School of Law.
"Apple might be and should be more concerned that it will be found to be a monopoly," Fox said.
LENGTHY APPEALS PROCESS
Google has said it will appeal the verdict, and the case will head to the San Francisco-based 9th U.S. Circuit Court of Appeals. That is the same court that heard Epic's arguments last year to revive its antitrust claims against Apple.
In January, U.S. District Judge James Donato in San Francisco will weigh Epic's request for an injunction. Epic and Google will face off for a second time in court — before the judge only.
Google would likely argue that the proposed injunction is too broad and needs to be more tailored.
"It's not so much will there be an injunction but the strength and scope of that remedy," said antitrust legal scholar Christine Bartholomew of the University at Buffalo School of Law in New York.
Still, analysts expect Google to appeal any remedy orders from Judge Donato, delaying any potential changes.
"Using the timeline in Epic v. Apple as a guide, the 9th Circuit would likely rule around Q2 2025," TD Cowen said.
(Reporting by Jaspreet Singh, Harshita Varghese and Aditya Soni in Bengaluru and Mike Scarcella; Editing by Shinjini Ganguli)
(([email protected]; +91 80 6210 0555;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The decision is also expected to deepen questions over Apple's AAPL.O market dominance. Epic Games will now have a chance to submit a court filing on how it wants Google's Play Store to be fixed -- potentially putting at risk what Wells Fargo estimates is $10 billion in annual revenue from app sales and in-app purchases for the tech giant. The unanimous ruling by the jury will intensify pressure on Google at a time it is caught in a legal battle with the U.S. Justice Department (DoJ), which has accused the online search leader of breaking antitrust law to stay on top. | The decision is also expected to deepen questions over Apple's AAPL.O market dominance. By Jaspreet Singh and Harshita Mary Varghese Dec 12 (Reuters) - Google's stunning defeat in a legal battle with "Fortnite" maker Epic Games may clear the way for rival app stores on its Android mobile system but a lengthy appeals process will likely prevent any changes for years, according to analysts and legal experts. The remedies could force it to allow rival app stores or lower the fees it charges on app sales and in-app purchases. | The decision is also expected to deepen questions over Apple's AAPL.O market dominance. By Jaspreet Singh and Harshita Mary Varghese Dec 12 (Reuters) - Google's stunning defeat in a legal battle with "Fortnite" maker Epic Games may clear the way for rival app stores on its Android mobile system but a lengthy appeals process will likely prevent any changes for years, according to analysts and legal experts. Epic Games will now have a chance to submit a court filing on how it wants Google's Play Store to be fixed -- potentially putting at risk what Wells Fargo estimates is $10 billion in annual revenue from app sales and in-app purchases for the tech giant. | The decision is also expected to deepen questions over Apple's AAPL.O market dominance. While revenue from such transactions is a fraction of the total sales, it's a high-margin business for the company, according to analysts. Ad tech is more complicated than app stores, but DOJ still must be feeling encouraged by last night's jury ruling," analysts at TD Cowen said. |
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12148.0 | 2023-12-11 00:00:00 UTC | Apple to be hit by EU antitrust order in fight with Spotify - Bloomberg News | AAPL | https://www.nasdaq.com/articles/apple-to-be-hit-by-eu-antitrust-order-in-fight-with-spotify-bloomberg-news | Adds details from the report and background
Dec 13 (Reuters) - Apple AAPL.O is expected to be hit by a ban on its App Store rules that govern some music-streaming services and a potential hefty fine from European Union regulators, Bloomberg News reported on Wednesday.
EU authorities are putting the finishing touches to a decision that would prohibit Apple's practice of blocking music services from pushing their users away from App Store to alternative subscription options, the report said, citing people familiar with the investigation.
The decision is slated for early next year and Apple could face a fine of as much as 10% of its annual sales, Bloomberg reported.
The probe was sparked by a complaint nearly four years ago from Sweden's Spotify Technology SPOT.N, which claimed it was forced to ramp up the price of its monthly subscriptions to cover costs associated with Apple's App Store rules.
The European Commission filed a chargesheet against Apple earlier this year, saying the conditions are unnecessary and mean customers may end up paying more.
Apple and representatives from the European Commission did not immediately respond to Reuters requests for comment.
Apple shares were marginally up in afternoon trading.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Arun Koyyur)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details from the report and background Dec 13 (Reuters) - Apple AAPL.O is expected to be hit by a ban on its App Store rules that govern some music-streaming services and a potential hefty fine from European Union regulators, Bloomberg News reported on Wednesday. EU authorities are putting the finishing touches to a decision that would prohibit Apple's practice of blocking music services from pushing their users away from App Store to alternative subscription options, the report said, citing people familiar with the investigation. The probe was sparked by a complaint nearly four years ago from Sweden's Spotify Technology SPOT.N, which claimed it was forced to ramp up the price of its monthly subscriptions to cover costs associated with Apple's App Store rules. | Adds details from the report and background Dec 13 (Reuters) - Apple AAPL.O is expected to be hit by a ban on its App Store rules that govern some music-streaming services and a potential hefty fine from European Union regulators, Bloomberg News reported on Wednesday. EU authorities are putting the finishing touches to a decision that would prohibit Apple's practice of blocking music services from pushing their users away from App Store to alternative subscription options, the report said, citing people familiar with the investigation. The probe was sparked by a complaint nearly four years ago from Sweden's Spotify Technology SPOT.N, which claimed it was forced to ramp up the price of its monthly subscriptions to cover costs associated with Apple's App Store rules. | Adds details from the report and background Dec 13 (Reuters) - Apple AAPL.O is expected to be hit by a ban on its App Store rules that govern some music-streaming services and a potential hefty fine from European Union regulators, Bloomberg News reported on Wednesday. EU authorities are putting the finishing touches to a decision that would prohibit Apple's practice of blocking music services from pushing their users away from App Store to alternative subscription options, the report said, citing people familiar with the investigation. The probe was sparked by a complaint nearly four years ago from Sweden's Spotify Technology SPOT.N, which claimed it was forced to ramp up the price of its monthly subscriptions to cover costs associated with Apple's App Store rules. | Adds details from the report and background Dec 13 (Reuters) - Apple AAPL.O is expected to be hit by a ban on its App Store rules that govern some music-streaming services and a potential hefty fine from European Union regulators, Bloomberg News reported on Wednesday. EU authorities are putting the finishing touches to a decision that would prohibit Apple's practice of blocking music services from pushing their users away from App Store to alternative subscription options, the report said, citing people familiar with the investigation. The decision is slated for early next year and Apple could face a fine of as much as 10% of its annual sales, Bloomberg reported. |
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12149.0 | 2023-12-11 00:00:00 UTC | Can Shiba Inu Reach $0.01? | AAPL | https://www.nasdaq.com/articles/can-shiba-inu-reach-%240.01-4 | Even though Shiba Inu (CRYPTO: SHIB) has likely been one of the most volatile cryptocurrencies out there, it has still been a big winner for those daring speculators who put their money behind it. Although the token is 89% below its peak price, it has crushed the stock market since its launch back in 2020.
Some fervent Shiba Inu bulls probably have their sights set on a much higher price target, though.
Can this dog-inspired cryptocurrency one day reach $0.01? This would translate to a monster gain of more than 1,000-fold from today's price. Let's dive in and find out if this is a possibility.
Overview of Shiba Inu
Shiba Inu was created to be more functional than its dog-themed rival, Dogecoin, which is its own blockchain. Shiba Inu, by contrast, was built on top of the Ethereum network. Because of this design decision, Shiba Inu works with smart contracts and decentralized applications.
People can use Shiba Inu's token to send or receive payments to others. And perhaps more meaningful, the token can be used to pay for things at select merchants. But according to cryptwerk.com, only 792 businesses accept payment with Shiba Inu, so it has barely made any headway in this area.
Developers recently launched Shibarium, which is a Layer-2 scaling solution that is meant to improve transaction speeds and lower fees for users. There has been heightened excitement around this update. And it could propel Shiba Inu's adoption in terms of non-fungible tokens or the metaverse. At least that's the hope of the network's supporters.
Despite the aims to raise the utility of Shiba Inu, it's worth mentioning that this token has really only been used as a tool for financial speculation. This is the case with all cryptocurrencies out there, including Bitcoin and Ethereum.
Missing the rally
It's disheartening for Shiba Inu believers to see that the token hasn't performed that well in 2023, rising just 20% (as of Dec. 12). The overall crypto market, on the other hand, has been a huge winner, going from $800 billion at the start of the year to almost $1.6 trillion today.
Moreover, both Bitcoin and Ethereum, as well as some of the largest tech stocks, have had wonderful runs this year.
Amid a resurgence in investor optimism and a risk-seeking attitude, it makes you wonder why Shiba Inu hasn't participated more in the stock and crypto rallies in 2023. If the token can't rise in this environment, what will it take for Shiba Inu to grow?
Avoid this token
Now that readers have a better understanding of Shiba Inu and its recent price performance, it's time to think critically about the possibility of the token soaring more than 1,000-fold and reaching $0.01.
To be clear, I don't think this is a possibility. And I wouldn't bet any money on this outcome happening.
Based on Shiba Inu's current token supply of 589 trillion, at a price of $0.01 per token, the total market cap would be roughly $5.9 trillion. It's wild to believe that a token with virtually no real-world utility can command this type of valuation.
Based on that gargantuan figure, Shiba Inu would be worth more than Apple, maybe the most successful business of all time based on its market valuation of about $3 trillion. This tech giant is a cultural icon with a powerful brand that sells incredibly popular hardware and software products. There's no rational way to believe that Shiba Inu is worth double that of an enterprise like this.
It's best not to get sucked into the hype and the allure of financial speculation. Investors should avoid this crypto like the plague.
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Neil Patel and his clients have positions in Bitcoin. The Motley Fool has positions in and recommends Apple, Bitcoin, and Ethereum. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Even though Shiba Inu (CRYPTO: SHIB) has likely been one of the most volatile cryptocurrencies out there, it has still been a big winner for those daring speculators who put their money behind it. Developers recently launched Shibarium, which is a Layer-2 scaling solution that is meant to improve transaction speeds and lower fees for users. Amid a resurgence in investor optimism and a risk-seeking attitude, it makes you wonder why Shiba Inu hasn't participated more in the stock and crypto rallies in 2023. | Overview of Shiba Inu Shiba Inu was created to be more functional than its dog-themed rival, Dogecoin, which is its own blockchain. Avoid this token Now that readers have a better understanding of Shiba Inu and its recent price performance, it's time to think critically about the possibility of the token soaring more than 1,000-fold and reaching $0.01. Based on Shiba Inu's current token supply of 589 trillion, at a price of $0.01 per token, the total market cap would be roughly $5.9 trillion. | Overview of Shiba Inu Shiba Inu was created to be more functional than its dog-themed rival, Dogecoin, which is its own blockchain. Avoid this token Now that readers have a better understanding of Shiba Inu and its recent price performance, it's time to think critically about the possibility of the token soaring more than 1,000-fold and reaching $0.01. Based on Shiba Inu's current token supply of 589 trillion, at a price of $0.01 per token, the total market cap would be roughly $5.9 trillion. | Despite the aims to raise the utility of Shiba Inu, it's worth mentioning that this token has really only been used as a tool for financial speculation. Avoid this token Now that readers have a better understanding of Shiba Inu and its recent price performance, it's time to think critically about the possibility of the token soaring more than 1,000-fold and reaching $0.01. To be clear, I don't think this is a possibility. |
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12150.0 | 2023-12-11 00:00:00 UTC | Warren Buffett Is Raking In Nearly $3.5 Billion in Annual Dividend Income From Just 4 Stocks | AAPL | https://www.nasdaq.com/articles/warren-buffett-is-raking-in-nearly-%243.5-billion-in-annual-dividend-income-from-just-4 | It's safe to say that Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett knows a thing or two about investing. In his 58 years at the helm, he's overseen a greater than 4,300,000% aggregate gain in Berkshire's Class A shares (BRK.A), as well as doubled up the annualized total return, including dividends, of the widely followed S&P 500.
Lengthy books have been written on the core philosophies the Oracle of Omaha lives by, which includes thinking long-term and buying into great businesses with sustained catalysts at a fair price.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
But what doesn't receive nearly enough credit for Buffett's nearly six decades of investment success is his penchant for buying dividend stocks. Companies that pay a regular dividend to their shareholders are usually profitable and time-tested. What's more, income stocks have a history of running circles around public companies that don't offer a payout in the return department.
A majority of the stocks currently held by Berkshire Hathaway pay a dividend, with Buffett's company set to collect close to $6 billion in income over the coming 12 months.
But what's truly surprising is how much of this income will derive from a small number of holdings. Warren Buffett and his team are set to rake in nearly $3.5 billion in annual dividend income from just four stocks over the next year.
Bank of America: $991,537,926 in annual dividend income
Berkshire Hathaway's No. 2 holding by market value, Bank of America (NYSE: BAC), will be doing the heaviest lifting of all when it comes to providing dividend income. The more than 1.03 billion shares Buffett's company owns of BofA will translate into almost $992 million in dividend income over the next 12 months.
The lure of bank stocks for Buffett has always been their cyclical ties and the recurring need for financial services. Though banks are cyclical, and will therefore contend with higher delinquency rates and loan losses during recessions, periods of economic expansion last considerably longer than downturns. Rather than foolishly trying to time when these downturns will occur, Buffett has wisely positioned Berkshire Hathaway in high-quality financial stocks, like BofA, to take advantage of long-winded expansions.
But there's more to Berkshire's No. 2 holding than just macroeconomic factors. Bank of America is also the most interest rate-sensitive of America's largest banks by assets. When interest rates change, no bank is more impacted than BofA.
Since March 2022, the nation's central bank has increased the federal funds rate by 525 basis points, which is the fastest pace of rate hikes in more than four decades. Every rate hike is leading to billions of dollars in added net interest income each quarter.
As I've previously pointed out, BofA has done an admirable job of digitizing its platform. Online and mobile-based transactions are considerably cheaper than in-person interactions. As more of its customers utilize digital transactions, Bank of America will be able to consolidate some of its physical branches and lower its expenses.
Apple: $878,937,967 in annual dividend income
Perhaps it comes as no surprise that tech stock Apple (NASDAQ: AAPL) plays a key role in Berkshire Hathaway's dividend income collection. Apple accounted for 49% of the company's nearly $366 billion of invested assets as of the closing bell on Dec. 8, 2023, making it the biggest holding by a considerable amount in Buffett's portfolio.
The $15 billion Apple is doling out in dividends annually is a reflection of its top-notch branding, as well as its cutting-edge innovation.
According to Kantar's 2023 BrandZ Rankings, Apple is the world's most valuable brand. It has an exceptionally loyal customer base, along with phenomenal pricing power. Meanwhile, Interbrand has listed Apple as the world's "best brand" for 11 consecutive years.
Beyond brand value, Apple is riding high thanks to its innovation. It's been a leading provider of smartphones for more than a decade, and it's led the way with tablets via the iPad. Moreover, CEO Tim Cook is overseeing the steady transition of Apple into a platforms-focused company. A subscription-driven model will further enhance customer loyalty and meaningfully improve the company's operating margin over the long term.
I'd be remiss if I didn't also mention Apple's unsurpassed capital-return program. In addition to its massive nominal-dollar dividend, Apple has repurchased in excess of $600 billion worth of its common stock since the start of 2013. Buffett has always appreciated a rock-solid share-buyback program.
Image source: Getty Images.
Occidental Petroleum: $843,396,739 in annual dividend income (including preferred stock dividends)
Buffett and his team will be raking in a boatload of dividend income from energy stock Occidental Petroleum (NYSE: OXY) over the next 12 months, with this income coming from two separate channels.
Berkshire Hathaway is expected to receive $164.2 million in dividend income from the nearly 228.1 million shares of Occidental common stock it owns. Every single share of common stock has been purchased since the start of 2022.
Buffett's company also holds $8.49 billion of preferred stock in Occidental yielding 8% that'll generate around $679.2 million in annual income. Berkshire originally held $10 billion in preferred stock tied to a 2019 deal that helped Occidental acquire Anadarko. However, Occidental has redeemed $1.51 billion of this preferred position, through Nov. 7.
What makes Occidental such an attractive investment to Buffett and his team is the expectation that the spot price of crude oil will remain above its historic average. Supporting this thesis is Russia's war with Ukraine, along with three years of capital underinvestment by energy companies caused by the COVID-19 pandemic. As long as crude oil supply remains tight, there's a good likelihood that the spot price of crude oil will stay elevated.
A higher spot price for crude oil is especially important for Occidental Petroleum. Although it's an integrated energy company, it generates the lion's share of its revenue from its drilling operations. This is to say that if the spot price of crude oil increases, Occidental's operating cash flow will benefit more than most other integrated oil and gas operators. Just keep in mind that the reciprocal would also be true -- a declining spot price for crude oil will disproportionately hurt Occidental's operating cash flow.
Coca-Cola: $736,000,000 in annual dividend income
The fourth stock that, collectively with Bank of America, Apple, and Occidental Petroleum, allows Buffett to rake in nearly $3.5 billion in annual dividend income is beverage stock Coca-Cola (NYSE: KO). Coca-Cola has raised its base annual payout for 61 consecutive years, and it's Berkshire's longest continuous holding (since 1988).
One reason Coke is such a phenomenal income producer is that it's a consumer staples stock. Regardless of how well or poorly the U.S. and global economy perform, consumers are going to need food and beverages. This creates a predictable demand floor for Coca-Cola each year.
Branding is another catalyst for Coca-Cola and its rock-solid payout. Coca-Cola has topped the annually released "Brand Footprint" report from Kantar as the most chosen brand for 10 years running, as of 2022. Coke has a well-recognized logo and its top-notch marketing efforts have helped it connect with young and mature audiences alike for decades.
Equally important, Coca-Cola brings virtually unmatched geographic diversity to the table. With the exception of North Korea, Cuba, and Russia (the latter of which is due to its aforementioned ongoing war with Ukraine), Coke is operating in every other country around the globe. It has 26 brands generating at least $1 billion in annual sales, and it's able to rely on emerging markets for a proverbial shot in the arm of organic growth.
Berkshire Hathaway's cost basis for its Coca-Cola shares is just $3.2475. Based on its $1.84-per-share annual payout, Buffett's company is netting almost a 57% yield on cost. Put another way, Coca-Cola's dividend income alone is more than doubling Berkshire's initial investment in the company every two years.
Should you invest $1,000 in Bank of America right now?
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Occidental Petroleum and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple: $878,937,967 in annual dividend income Perhaps it comes as no surprise that tech stock Apple (NASDAQ: AAPL) plays a key role in Berkshire Hathaway's dividend income collection. In his 58 years at the helm, he's overseen a greater than 4,300,000% aggregate gain in Berkshire's Class A shares (BRK.A), as well as doubled up the annualized total return, including dividends, of the widely followed S&P 500. Lengthy books have been written on the core philosophies the Oracle of Omaha lives by, which includes thinking long-term and buying into great businesses with sustained catalysts at a fair price. | Apple: $878,937,967 in annual dividend income Perhaps it comes as no surprise that tech stock Apple (NASDAQ: AAPL) plays a key role in Berkshire Hathaway's dividend income collection. A majority of the stocks currently held by Berkshire Hathaway pay a dividend, with Buffett's company set to collect close to $6 billion in income over the coming 12 months. Occidental Petroleum: $843,396,739 in annual dividend income (including preferred stock dividends) Buffett and his team will be raking in a boatload of dividend income from energy stock Occidental Petroleum (NYSE: OXY) over the next 12 months, with this income coming from two separate channels. | Apple: $878,937,967 in annual dividend income Perhaps it comes as no surprise that tech stock Apple (NASDAQ: AAPL) plays a key role in Berkshire Hathaway's dividend income collection. Occidental Petroleum: $843,396,739 in annual dividend income (including preferred stock dividends) Buffett and his team will be raking in a boatload of dividend income from energy stock Occidental Petroleum (NYSE: OXY) over the next 12 months, with this income coming from two separate channels. Coca-Cola: $736,000,000 in annual dividend income The fourth stock that, collectively with Bank of America, Apple, and Occidental Petroleum, allows Buffett to rake in nearly $3.5 billion in annual dividend income is beverage stock Coca-Cola (NYSE: KO). | Apple: $878,937,967 in annual dividend income Perhaps it comes as no surprise that tech stock Apple (NASDAQ: AAPL) plays a key role in Berkshire Hathaway's dividend income collection. Bank of America: $991,537,926 in annual dividend income Berkshire Hathaway's No. Buffett's company also holds $8.49 billion of preferred stock in Occidental yielding 8% that'll generate around $679.2 million in annual income. |
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12151.0 | 2023-12-11 00:00:00 UTC | iPhone supplier Murata targets China budget smartphone makers | AAPL | https://www.nasdaq.com/articles/iphone-supplier-murata-targets-china-budget-smartphone-makers | By Sam Nussey and Miho Uranaka
TOKYO, Dec 13 (Reuters) - Japanese smartphone component supplier Murata Manufacturing 6981.T aims to grow sales to Chinese makers of lower-end handsets destined for emerging markets as it looks beyond saturated strongholds.
Murata, a leading supplier of ceramic capacitors, sees the smartphone market growing 5% in the year ending March 2025, aided by demand for mid- and low-end handsets in places such as India, Africa and Southeast Asia.
"Exports by Chinese makers to areas with growing populations are really increasing," Murata President Norio Nakajima said in an interview.
Murata, a supplier to Apple AAPL.O and Samsung Electronics 005930.KS, is among industry players grappling with depressed smartphone demand as consumers hold on to handsets for longer.
In October, smartphone sales grew 5% year-on-year after more than two years of decline, boosted by emerging-market demand, showed data from research firm Counterpoint.
Within China itself, excess inventory is normalising, Nakajima said.
Last month, Apple said demand for its iPhone in China remains strong, with analysts also pointing to strong sales of smartphones from local champion Huawei Technologies HWT.UL.
(Reporting by Sam Nussey and Miho Uranaka; Editing by Christopher Cushing)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Murata, a supplier to Apple AAPL.O and Samsung Electronics 005930.KS, is among industry players grappling with depressed smartphone demand as consumers hold on to handsets for longer. By Sam Nussey and Miho Uranaka TOKYO, Dec 13 (Reuters) - Japanese smartphone component supplier Murata Manufacturing 6981.T aims to grow sales to Chinese makers of lower-end handsets destined for emerging markets as it looks beyond saturated strongholds. Murata, a leading supplier of ceramic capacitors, sees the smartphone market growing 5% in the year ending March 2025, aided by demand for mid- and low-end handsets in places such as India, Africa and Southeast Asia. | Murata, a supplier to Apple AAPL.O and Samsung Electronics 005930.KS, is among industry players grappling with depressed smartphone demand as consumers hold on to handsets for longer. By Sam Nussey and Miho Uranaka TOKYO, Dec 13 (Reuters) - Japanese smartphone component supplier Murata Manufacturing 6981.T aims to grow sales to Chinese makers of lower-end handsets destined for emerging markets as it looks beyond saturated strongholds. Murata, a leading supplier of ceramic capacitors, sees the smartphone market growing 5% in the year ending March 2025, aided by demand for mid- and low-end handsets in places such as India, Africa and Southeast Asia. | Murata, a supplier to Apple AAPL.O and Samsung Electronics 005930.KS, is among industry players grappling with depressed smartphone demand as consumers hold on to handsets for longer. By Sam Nussey and Miho Uranaka TOKYO, Dec 13 (Reuters) - Japanese smartphone component supplier Murata Manufacturing 6981.T aims to grow sales to Chinese makers of lower-end handsets destined for emerging markets as it looks beyond saturated strongholds. Murata, a leading supplier of ceramic capacitors, sees the smartphone market growing 5% in the year ending March 2025, aided by demand for mid- and low-end handsets in places such as India, Africa and Southeast Asia. | Murata, a supplier to Apple AAPL.O and Samsung Electronics 005930.KS, is among industry players grappling with depressed smartphone demand as consumers hold on to handsets for longer. By Sam Nussey and Miho Uranaka TOKYO, Dec 13 (Reuters) - Japanese smartphone component supplier Murata Manufacturing 6981.T aims to grow sales to Chinese makers of lower-end handsets destined for emerging markets as it looks beyond saturated strongholds. Murata, a leading supplier of ceramic capacitors, sees the smartphone market growing 5% in the year ending March 2025, aided by demand for mid- and low-end handsets in places such as India, Africa and Southeast Asia. |
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12152.0 | 2023-12-11 00:00:00 UTC | After Hours Most Active for Dec 12, 2023 : AAPL, HST, CRH, COTY, MSFT, CCCC, BMY, QQQ, BAC, COMP, CMCSA, F | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-dec-12-2023-%3A-aapl-hst-crh-coty-msft-cccc-bmy-qqq-bac-comp | The NASDAQ 100 After Hours Indicator is up 7.82 to 16,362.07. The total After hours volume is currently 94,543,373 shares traded.
The following are the most active stocks for the after hours session:
Apple Inc. (AAPL) is +0.03 at $194.74, with 4,650,705 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Host Hotels & Resorts, Inc. (HST) is unchanged at $18.61, with 3,764,737 shares traded. As reported in the last short interest update the days to cover for HST is 8.579568; this calculation is based on the average trading volume of the stock.
CRH PLC (CRH) is unchanged at $65.63, with 3,126,439 shares traded. As reported by Zacks, the current mean recommendation for CRH is in the "buy range".
Coty Inc. (COTY) is -0.01 at $11.90, with 2,565,817 shares traded. COTY's current last sale is 99.17% of the target price of $12.
Microsoft Corporation (MSFT) is +0.33 at $374.71, with 2,550,001 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
C4 Therapeutics, Inc. (CCCC) is +0.16 at $2.50, with 2,548,117 shares traded. As reported in the last short interest update the days to cover for CCCC is 8.628582; this calculation is based on the average trading volume of the stock.
Bristol-Myers Squibb Company (BMY) is unchanged at $50.51, with 2,537,442 shares traded. BMY's current last sale is 84.18% of the target price of $60.
Invesco QQQ Trust, Series 1 (QQQ) is +0.53 at $399.20, with 2,526,748 shares traded., following a 52-week high recorded in today's regular session.
Bank of America Corporation (BAC) is +0.02 at $30.76, with 2,472,337 shares traded. BAC's current last sale is 91.82% of the target price of $33.5.
Compass, Inc. (COMP) is +0.03 at $2.72, with 2,439,574 shares traded. COMP's current last sale is 95.44% of the target price of $2.85.
Comcast Corporation (CMCSA) is unchanged at $42.67, with 2,201,272 shares traded. As reported by Zacks, the current mean recommendation for CMCSA is in the "buy range".
Ford Motor Company (F) is +0.01 at $11.17, with 1,891,448 shares traded. F's current last sale is 79.79% of the target price of $14.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Inc. (AAPL) is +0.03 at $194.74, with 4,650,705 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported in the last short interest update the days to cover for HST is 8.579568; this calculation is based on the average trading volume of the stock. | Apple Inc. (AAPL) is +0.03 at $194.74, with 4,650,705 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 94,543,373 shares traded. | Apple Inc. (AAPL) is +0.03 at $194.74, with 4,650,705 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 94,543,373 shares traded. | Apple Inc. (AAPL) is +0.03 at $194.74, with 4,650,705 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The following are the most active stocks for the after hours session: |
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12153.0 | 2023-12-11 00:00:00 UTC | Technology Sector Update for 12/12/2023: AAPL, ORCL, GOOG, NVEE | AAPL | https://www.nasdaq.com/articles/technology-sector-update-for-12-12-2023%3A-aapl-orcl-goog-nvee | Tech stocks were mixed in late Tuesday afternoon trading, with the Technology Select Sector SPDR Fund (XLK) rising 0.6% and the SPDR S&P Semiconductor ETF (XSD) down 0.3%.
The Philadelphia Semiconductor index added 0.7%.
In corporate news, Apple (AAPL) is offering to allow competitors access to its tap-and-go mobile payment systems, which are used in mobile wallets, Reuters reported Tuesday. The move may resolve EU antitrust charges and avert a possible large fine, the report said. Apple shares rose 0.6%.
Oracle (ORCL) shares tumbled 12%. Analysts cut their price targets for the company after its fiscal Q2 results late Monday showed revenue missed estimates.
Alphabet's (GOOG) Google lost an antitrust trial to Epic Games after a US court ruled Monday that the search giant was running an illegal monopoly with its app store and payment system. Alphabet shares fell 0.8%.
NV5 Global (NVEE) shares rose 1% after the company won a one-year $9 million contract from a Northern California utility to provide vegetation management services.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In corporate news, Apple (AAPL) is offering to allow competitors access to its tap-and-go mobile payment systems, which are used in mobile wallets, Reuters reported Tuesday. Analysts cut their price targets for the company after its fiscal Q2 results late Monday showed revenue missed estimates. Alphabet's (GOOG) Google lost an antitrust trial to Epic Games after a US court ruled Monday that the search giant was running an illegal monopoly with its app store and payment system. | In corporate news, Apple (AAPL) is offering to allow competitors access to its tap-and-go mobile payment systems, which are used in mobile wallets, Reuters reported Tuesday. Tech stocks were mixed in late Tuesday afternoon trading, with the Technology Select Sector SPDR Fund (XLK) rising 0.6% and the SPDR S&P Semiconductor ETF (XSD) down 0.3%. Apple shares rose 0.6%. | In corporate news, Apple (AAPL) is offering to allow competitors access to its tap-and-go mobile payment systems, which are used in mobile wallets, Reuters reported Tuesday. Tech stocks were mixed in late Tuesday afternoon trading, with the Technology Select Sector SPDR Fund (XLK) rising 0.6% and the SPDR S&P Semiconductor ETF (XSD) down 0.3%. Alphabet's (GOOG) Google lost an antitrust trial to Epic Games after a US court ruled Monday that the search giant was running an illegal monopoly with its app store and payment system. | In corporate news, Apple (AAPL) is offering to allow competitors access to its tap-and-go mobile payment systems, which are used in mobile wallets, Reuters reported Tuesday. Tech stocks were mixed in late Tuesday afternoon trading, with the Technology Select Sector SPDR Fund (XLK) rising 0.6% and the SPDR S&P Semiconductor ETF (XSD) down 0.3%. Apple shares rose 0.6%. |
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12154.0 | 2023-12-11 00:00:00 UTC | Apple now requires a judge's consent to hand over push notification data | AAPL | https://www.nasdaq.com/articles/apple-now-requires-a-judges-consent-to-hand-over-push-notification-data | By Raphael Satter
WASHINGTON, Dec 12 (Reuters) - Apple AAPL.O has said it now requires a judge's order to hand over information about its customers' push notification to law enforcement, putting the iPhone maker's policy in line with rival Google and raising the hurdle officials must clear to get app data about users.
The new policy was not formally announced but appeared sometime over the past few days on Apple's publicly available law enforcement guidelines. It follows the revelation from Oregon Senator Ron Wyden that officials were requesting such data from Apple as well as from Google, the unit of Alphabet GOOGL.O that makes the operating system for Android phones.
Apps of all kinds rely on push notifications to alert smartphone users to incoming messages, breaking news, and other updates. These are the audible "dings" or visual indicators users get when they receive an email or their sports team wins a game. What users often do not realize is that almost all such notifications travel over Google and Apple's servers.
In a letter first disclosed by Reuters last week, Wyden said the practice gave the two companies unique insight into traffic flowing from those apps to users, putting them "in a unique position to facilitate government surveillance of how users are using particular apps."
Apple and Google both acknowledged receiving such requests. Apple added a passage to its guidelines saying such data was available "with a subpoena or greater legal process." The passage has now been updated to refer to more stringent warrant requirements.
Apple did not offer an official statement. Google did not immediately respond to a request seeking comment.
Wyden said in a statement that Apple was "doing the right thing by matching Google and requiring a court order to hand over push notification related data."
(Reporting by Raphael Satter; Editing by David Gregorio)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Raphael Satter WASHINGTON, Dec 12 (Reuters) - Apple AAPL.O has said it now requires a judge's order to hand over information about its customers' push notification to law enforcement, putting the iPhone maker's policy in line with rival Google and raising the hurdle officials must clear to get app data about users. It follows the revelation from Oregon Senator Ron Wyden that officials were requesting such data from Apple as well as from Google, the unit of Alphabet GOOGL.O that makes the operating system for Android phones. Wyden said in a statement that Apple was "doing the right thing by matching Google and requiring a court order to hand over push notification related data." | By Raphael Satter WASHINGTON, Dec 12 (Reuters) - Apple AAPL.O has said it now requires a judge's order to hand over information about its customers' push notification to law enforcement, putting the iPhone maker's policy in line with rival Google and raising the hurdle officials must clear to get app data about users. It follows the revelation from Oregon Senator Ron Wyden that officials were requesting such data from Apple as well as from Google, the unit of Alphabet GOOGL.O that makes the operating system for Android phones. Wyden said in a statement that Apple was "doing the right thing by matching Google and requiring a court order to hand over push notification related data." | By Raphael Satter WASHINGTON, Dec 12 (Reuters) - Apple AAPL.O has said it now requires a judge's order to hand over information about its customers' push notification to law enforcement, putting the iPhone maker's policy in line with rival Google and raising the hurdle officials must clear to get app data about users. It follows the revelation from Oregon Senator Ron Wyden that officials were requesting such data from Apple as well as from Google, the unit of Alphabet GOOGL.O that makes the operating system for Android phones. Wyden said in a statement that Apple was "doing the right thing by matching Google and requiring a court order to hand over push notification related data." | By Raphael Satter WASHINGTON, Dec 12 (Reuters) - Apple AAPL.O has said it now requires a judge's order to hand over information about its customers' push notification to law enforcement, putting the iPhone maker's policy in line with rival Google and raising the hurdle officials must clear to get app data about users. Apple and Google both acknowledged receiving such requests. Wyden said in a statement that Apple was "doing the right thing by matching Google and requiring a court order to hand over push notification related data." |
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12155.0 | 2023-12-11 00:00:00 UTC | 2 Hypergrowth Tech Stocks to Buy in 2023 and Beyond | AAPL | https://www.nasdaq.com/articles/2-hypergrowth-tech-stocks-to-buy-in-2023-and-beyond-7 | The tech market is booming, with the Nasdaq-100 Technology sector up about 58% year to date. Advances in high-growth markets like artificial intelligence (AI) and cloud computing have made Wall Street particularly bullish, and excitement is unlikely to dissipate in 2024.
With the new year right around the corner, now is an excellent time to consider investing in companies likely to flourish over the next 12 months. Tech stocks are an attractive option, as they're known for delivering significant gains over the long term. And there's no telling how high they could rise alongside developments in AI and other markets.
So here are two hypergrowth tech stocks to buy in 2023 and beyond.
1. Alphabet
As the world's third-most-valuable tech company with a market cap of $1.7 trillion, it's hard to go wrong with Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). The company is home to some of the most recognizable brands, with Google, YouTube, and Android attracting billions of users daily. Alphabet's potent products have made it nearly impossible for most consumers to go a single day without using one of its services.
The tech giant's vast user base has seen it become an advertising powerhouse, using the popularity of its platforms to gain a 25% market share in the $680 billion digital ad market. Macroeconomic headwinds burdened the industry in 2022 as spikes in inflation caused businesses to cut ad spending. However, solid growth in Alphabet's third quarter of 2023 has likely signaled an end to market declines.
The quarter saw Alphabet post revenue gains of 11% year over year, beating analysts' expectations by $980 million. The growth was mainly thanks to boosted advertising income, with Google Search and YouTube ads reporting revenue rises of 11% and 12%, respectively.
In addition to advertising, Alphabet has a lucrative position in the cloud market with Google Cloud. The company revealed in August that 70% of AI start-ups worth more than $1 billion are Google Cloud customers. Meanwhile, the company is gearing up to launch Gemini in 2024, a large language model likely to allow Alphabet to expand its AI cloud offerings.
Data by YCharts
Despite Alphabet's success and brand recognition, it's one of the cheapest tech stocks right now. The charts above compare the price-to-earnings ratios and price-to-free cash flows of some of the biggest tech companies. These valuations are helpful when determining if a stock is trading at the right price, with the figures indicating Alphabet is a bargain compared to its peers. The company is an excellent investment option in 2023 and ahead of the new year.
2. Apple
Apple (NASDAQ: AAPL) has been a favorite on Wall Street for years, with shares that have soared more than 360% over the last five years and significantly outperformed the S&P 500's growth of 75%.
A P/E and price-to-free cash flow of 31 don't scream bargain, as the chart shows in the previous section, but that's in comparison to Alphabet, which is one of the cheapest ways to invest in tech. Meanwhile, the company has the cash and brand loyalty to flourish over the long term.
Data by YCharts
Apple hasn't had the easiest year, with an economic downturn causing repeated declines in its product sales and revenue dipping 3% year over year in its fiscal 2023. Yet it still ended the year with more than $162 billion in cash, cash equivalents, and marketable securities. And as illustrated by the table above, Apple achieved more free cash flow than many of the most prominent tech companies.
The company may have stumbled over the last 12 months, but it has the funds to overcome market challenges and heavily invest in its business.
Moreover, it wasn't all bad news for Apple this year. Its services division remained the fastest-growing part of its business, with the segment posting revenue growth of 9% year over year. Services includes income from the App Store and subscriptions like Apple TV+, Music, and iCloud. The digital business is a particularly lucrative area for Apple, proving less vulnerable to economic fluctuations and delivering profit margins of around 71%. For reference, products' profit margins come in at 36%.
Apple's business is gradually prioritizing digital offerings, making its stock an attractive long-term option. Alongside substantial cash reserves and recent expansions into AI and virtual reality, Apple is a hypergrowth stock too good to pass up.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Apple (NASDAQ: AAPL) has been a favorite on Wall Street for years, with shares that have soared more than 360% over the last five years and significantly outperformed the S&P 500's growth of 75%. Advances in high-growth markets like artificial intelligence (AI) and cloud computing have made Wall Street particularly bullish, and excitement is unlikely to dissipate in 2024. A P/E and price-to-free cash flow of 31 don't scream bargain, as the chart shows in the previous section, but that's in comparison to Alphabet, which is one of the cheapest ways to invest in tech. | Apple Apple (NASDAQ: AAPL) has been a favorite on Wall Street for years, with shares that have soared more than 360% over the last five years and significantly outperformed the S&P 500's growth of 75%. The quarter saw Alphabet post revenue gains of 11% year over year, beating analysts' expectations by $980 million. Data by YCharts Apple hasn't had the easiest year, with an economic downturn causing repeated declines in its product sales and revenue dipping 3% year over year in its fiscal 2023. | Apple Apple (NASDAQ: AAPL) has been a favorite on Wall Street for years, with shares that have soared more than 360% over the last five years and significantly outperformed the S&P 500's growth of 75%. Alphabet As the world's third-most-valuable tech company with a market cap of $1.7 trillion, it's hard to go wrong with Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). Data by YCharts Apple hasn't had the easiest year, with an economic downturn causing repeated declines in its product sales and revenue dipping 3% year over year in its fiscal 2023. | Apple Apple (NASDAQ: AAPL) has been a favorite on Wall Street for years, with shares that have soared more than 360% over the last five years and significantly outperformed the S&P 500's growth of 75%. In addition to advertising, Alphabet has a lucrative position in the cloud market with Google Cloud. Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Alphabet wasn't one of them. |
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12156.0 | 2023-12-11 00:00:00 UTC | Alphabet (GOOGL) Adds Loyalty Cards to Wallet App for Wear OS | AAPL | https://www.nasdaq.com/articles/alphabet-googl-adds-loyalty-cards-to-wallet-app-for-wear-os | Alphabet’s GOOGL Google announced an update to its Wallet app for Wear OS, enabling users to access their loyalty cards.
With the addition of the latest update, Google Wallet on Wear OS now supports all loyalty cards stored on phones or Google Accounts, appearing after payment methods.
Additionally, users can tap on a QR or barcode to view details, scroll down for more information and use shortcuts like “Open on phone” or “Delete pass” on their smartwatches.
Alphabet is expected to gain solid traction across smartwatch users on the back of its latest move. This, in turn, will position the company well to create a strong foothold in the global smartwatch market.
Per a Vantage Market Research report, the global smartwatch market is expected to be valued at $130.06 billion by 2030, exhibiting a CAGR of 18.6% between 2023 and 2030.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Expanding Google Wallet Features
Google is set to introduce a new Wallet notifications feature in Version 23.46.x of Google Wallet on Android, enabling users to send payment notifications directly from the app.
Further, Google announced Wallet updates to support open-loop payment systems, providing a dedicated page for recent activity and ride history, showing saved fare caps, connected payment methods, and network-specific offerings.
Additionally, Google updated its Wallet app with a link-based pass-sharing feature for airline boarding and events. Users can open a pass below the carousel of credit and debit cards and a share button appears. However, undoing the sharing is not possible.
We believe that all the above-mentioned endeavors will likely aid Alphabet in strengthening its footprint in the global digital wallet market.
Per an MMR report, the digital wallet market is expected to reach $3.61 billion by 2029, witnessing a CAGR of 14.8% between 2023 and 2029.
We believe the company’s solid prospects in the promising digital wallet market are expected to instill investor optimism in the stock.
Alphabet has gained 50.2% on a year-to-date basis compared with the industry’s rise of 52.2%.
Moreover, the aforementioned endeavors will aid Alphabet to compete well with some notable industry players like Microsoft MSFT and Apple AAPL, which have positioned themselves well in the digital wallet space.
Microsoft is enjoying the growing momentum of its Edge Wallet with new feature updates.
Microsoft’s recent Wallet app update includes the integration of a cryptocurrency wallet, providing real-time updates on cryptocurrency value fluctuations and logging transactions. The "explore" tab updates users on cryptocurrency news, while the "assets" tab displays NFTs.
Meanwhile, Apple is riding on the success of its Wallet app on iPhone or Apple Watch, which securely stores various cards, IDs and other items, allowing users to carry more while minimizing their device's size.
To Conclude
We believe that strengthening Wallet features will, in turn, aid Alphabet to solidify its Google Services segment’s performance, which constitutes the majority of total revenues.
In third-quarter 2023, Google Services’ revenues increased 10.8% year over year to $67.99 billion, accounting for 88.6% of total revenues.
Our model projects fourth-quarter 2023 Google Services revenues at $72.79 billion, indicating growth of 7.3% from 2022.
Strength in the underlined segment will likely aid its overall financial performance in the upcoming period.
Our model estimate for fourth-quarter 2023 total revenues is pegged at $81.95 billion, indicating year-over-year growth of 7.8%.
Zacks Rank & A Key Pick
Currently, Alphabet carries a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is Badger Meter BMI, sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Badger Meter have gained 39.2% in the year-to-date period. BMI’s long-term earnings growth rate is currently projected at 20.39%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Moreover, the aforementioned endeavors will aid Alphabet to compete well with some notable industry players like Microsoft MSFT and Apple AAPL, which have positioned themselves well in the digital wallet space. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Additionally, users can tap on a QR or barcode to view details, scroll down for more information and use shortcuts like “Open on phone” or “Delete pass” on their smartwatches. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, the aforementioned endeavors will aid Alphabet to compete well with some notable industry players like Microsoft MSFT and Apple AAPL, which have positioned themselves well in the digital wallet space. With the addition of the latest update, Google Wallet on Wear OS now supports all loyalty cards stored on phones or Google Accounts, appearing after payment methods. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, the aforementioned endeavors will aid Alphabet to compete well with some notable industry players like Microsoft MSFT and Apple AAPL, which have positioned themselves well in the digital wallet space. Alphabet’s GOOGL Google announced an update to its Wallet app for Wear OS, enabling users to access their loyalty cards. | Moreover, the aforementioned endeavors will aid Alphabet to compete well with some notable industry players like Microsoft MSFT and Apple AAPL, which have positioned themselves well in the digital wallet space. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Alphabet’s GOOGL Google announced an update to its Wallet app for Wear OS, enabling users to access their loyalty cards. |
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12157.0 | 2023-12-11 00:00:00 UTC | This Warren Buffett Favorite Soared Nearly 50% This Year. Is It Too Late to Buy? | AAPL | https://www.nasdaq.com/articles/this-warren-buffett-favorite-soared-nearly-50-this-year.-is-it-too-late-to-buy | Warren Buffett is known for picking the right stocks, and his choices have produced billions of dollars in returns and double-digit percentage gains over time. As chairman of Berkshire Hathaway, Buffett has delivered compound annual growth of more than 19% over 57 years. That's compared to 9.9% for the S&P 500. So, it's clear investors are right to pay close attention to the stocks he buys.
But Berkshire Hathaway actually doesn't own tons of stocks. There are only 45 names in the portfolio now -- and most of its value comes from just a few favorites. One of them is tech giant Apple (NASDAQ: AAPL), which accounts for almost half of the portfolio.
And right now, Buffett has reason to be happy about this investment since Apple has climbed by almost 50% this year. But for investors who haven't yet bought Apple and would like to follow in Buffett's footsteps, is it too late? After such a gain, should you still buy this top stock?
Apple as a long-term investment
A look into the past shows us that Apple has proven its ability to be a great long-term investment. The company has increased earnings over time and has grown key financial metrics. High levels of free cash flow show us the company can afford to keep paying its dividends -- making Apple a player you can count on for passive income as well as share price growth.
AAPL Return on Invested Capital data by YCharts.
And its gains in return on invested capital show the company has been benefiting from its investments, indicating that Apple has deployed its cash wisely.
All of this is thanks to a stellar collection of products -- from the iPhone to the Apple Watch -- that have helped the company build a rock-solid brand -- one that consumers prefer and won't abandon for a rival. This brand strength is Apple's moat, and it's the reason it has been able to grow product revenue over the years and why growth is continuing today.
In its fiscal Q4 2023 (which ended Sept. 30), Apple's total installed base of devices reached an all-time high across products and geographic areas. And iPhone sales set a fiscal Q4 record. The company also set fiscal Q4 records in several countries across the globe.
Apple demonstrated in the quarter that its gains in revenue aren't just due to its established customers, but also to growth in new customers. About half of Mac and iPad buyers in the quarter were new to those products.
Apple's services business
So, the mix of brand strength, returning customers, and new customers should keep Apple's earnings climbing -- but something else may actually be its biggest growth driver. I'm talking about Apple's services business, which depends on those who use Apple devices and subscribe for access to digital content, cloud storage, and more.
Apple this year reached a level of more than 1 billion paid subscriptions. And this could be the element that will kick off a whole new era of growth at Apple, an era you probably won't want to miss. Services revenue reached a record high in the most recent quarter, and gains aren't likely to stop there. Apple has a huge subscriber base right now, and as it launches new services or boosts old ones, it can grow its revenue just with today's subscriber base -- but it's likely its subscriber base will expand too.
Finally, what's great about subscription revenue is it's recurrent. You may not buy a new iPhone often, but once you own one, you'll likely sign up for services that ensure Apple a regular stream of revenue.
Is Apple cheap?
All of this sounds great, but is Apple, after this year's gain, still worth the investment? Here, it's time to look at valuation. Apple trades for about 29 times forward earnings estimates, a lower ratio than many other growth stocks, and the shares look reasonable considering the company's track record and prospects.
AAPL PE Ratio (Forward) data by YCharts.
Yes, Apple shares have advanced quite a bit this year, and they probably won't continue upward at this pace without interruption. But they have what it takes to climb higher over time as consumers flock to Apple products, and their subscriptions progressively drive even more growth for the company year after year.
So, it isn't too late for you to follow billionaire investor Warren Buffett and pick up shares of this top-performing stock. Apple shares have plenty of room to run, and like Buffett, if you buy it and hold on, you may reap the rewards.
Should you invest $1,000 in Apple right now?
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon and Tesla. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | One of them is tech giant Apple (NASDAQ: AAPL), which accounts for almost half of the portfolio. AAPL Return on Invested Capital data by YCharts. AAPL PE Ratio (Forward) data by YCharts. | One of them is tech giant Apple (NASDAQ: AAPL), which accounts for almost half of the portfolio. AAPL Return on Invested Capital data by YCharts. AAPL PE Ratio (Forward) data by YCharts. | One of them is tech giant Apple (NASDAQ: AAPL), which accounts for almost half of the portfolio. AAPL Return on Invested Capital data by YCharts. AAPL PE Ratio (Forward) data by YCharts. | One of them is tech giant Apple (NASDAQ: AAPL), which accounts for almost half of the portfolio. AAPL Return on Invested Capital data by YCharts. AAPL PE Ratio (Forward) data by YCharts. |
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12158.0 | 2023-12-11 00:00:00 UTC | Australia's central bank aims at broad reform for payments systems | AAPL | https://www.nasdaq.com/articles/australias-central-bank-aims-at-broad-reform-for-payments-systems | SYDNEY, Dec 12 (Reuters) - Australia's central bank is considering a slate of new regulations for the payments system to open up the use of mobile wallets, make costs more transparent and allow retailers to put surcharges on buy-now-pay-later services.
In a speech on Friday, Reserve Bank of Australia (RBA) Governor Michele Bullock also outlined efforts to support the struggling business of moving cash around the country and plans to modernise the direct entry system used for salaries and welfare payments which will involve much investment by banks.
The Australian government is greatly expanding the RBA's regulatory power over the payments system, particularly for mobile wallet services offered by the likes of Apple AAPL.O and Google GOOG.O.
Bullock said the powers should be in place sometime next year, allowing the RBA to launch a broad review of the retail payments system.
"Usage of mobile wallets has grown rapidly, but the costs associated with these services remain opaque and payment service providers can face barriers to access," she added. "We will need to consider whether regulatory action is needed in this area."
It will also consider formal regulation to allow retailers to place surcharges on BNPL services, much as they do on credit cards.
Regulation might also be needed to ensure retailers have access to least-cost routing, which financial institutions have been slow to roll out, Bullock said.
The RBA will continue its work on a central bank digital currency (CBDC) and is planning a project to examine how different forms of digital money and infrastructure could support the development of tokenised asset markets in Australia.
It will also support the transition from the venerable Bulk Electronic Clearing System (BECS) to the New Payments Platform (NPP), while expanding the NPP's use for cross-border transactions.
Bullock noted that financial institutions would need to connect to the NPP all relevant accounts that currently send and receive payments via BECS, which processes around three-quarters of non-cash payments by value and is heavily relied on by many businesses and government agencies.
"Completing this will take considerable investment and time," Bullock said. "It is important that work begins now to ensure that end users are not disrupted when BECS is retire."
(Reporting by Wayne Cole; Editing by Richard Chang)
(([email protected]; 612 9171 7144; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Australian government is greatly expanding the RBA's regulatory power over the payments system, particularly for mobile wallet services offered by the likes of Apple AAPL.O and Google GOOG.O. SYDNEY, Dec 12 (Reuters) - Australia's central bank is considering a slate of new regulations for the payments system to open up the use of mobile wallets, make costs more transparent and allow retailers to put surcharges on buy-now-pay-later services. Bullock said the powers should be in place sometime next year, allowing the RBA to launch a broad review of the retail payments system. | The Australian government is greatly expanding the RBA's regulatory power over the payments system, particularly for mobile wallet services offered by the likes of Apple AAPL.O and Google GOOG.O. SYDNEY, Dec 12 (Reuters) - Australia's central bank is considering a slate of new regulations for the payments system to open up the use of mobile wallets, make costs more transparent and allow retailers to put surcharges on buy-now-pay-later services. Bullock said the powers should be in place sometime next year, allowing the RBA to launch a broad review of the retail payments system. | The Australian government is greatly expanding the RBA's regulatory power over the payments system, particularly for mobile wallet services offered by the likes of Apple AAPL.O and Google GOOG.O. SYDNEY, Dec 12 (Reuters) - Australia's central bank is considering a slate of new regulations for the payments system to open up the use of mobile wallets, make costs more transparent and allow retailers to put surcharges on buy-now-pay-later services. In a speech on Friday, Reserve Bank of Australia (RBA) Governor Michele Bullock also outlined efforts to support the struggling business of moving cash around the country and plans to modernise the direct entry system used for salaries and welfare payments which will involve much investment by banks. | The Australian government is greatly expanding the RBA's regulatory power over the payments system, particularly for mobile wallet services offered by the likes of Apple AAPL.O and Google GOOG.O. SYDNEY, Dec 12 (Reuters) - Australia's central bank is considering a slate of new regulations for the payments system to open up the use of mobile wallets, make costs more transparent and allow retailers to put surcharges on buy-now-pay-later services. Bullock noted that financial institutions would need to connect to the NPP all relevant accounts that currently send and receive payments via BECS, which processes around three-quarters of non-cash payments by value and is heavily relied on by many businesses and government agencies. |
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12159.0 | 2023-12-11 00:00:00 UTC | Alphabet (GOOGL) Adds Generative AI Features to NotebookLM | AAPL | https://www.nasdaq.com/articles/alphabet-googl-adds-generative-ai-features-to-notebooklm | Alphabet’s GOOGL Google is bolstering its AI-powered note-taking app, NotebookLM, by adding an array of new features before making it available to all adult users in the United States.
Notably, NotebookLM uses Google's Gemini Pro language model to aid in document understanding and reasoning. It generates summaries and suggests follow-up questions, focusing on the content of the documents.
Further, it introduced new tools for organizing curated notes into structured writing projects, allowing users to create scripts, email newsletters or marketing plans from their notes.
Additionally, NotebookLM now offers actions based on current tasks, such as summarizing selected passages or refining prose in writing and suggesting related ideas from sources based on what's been written so far.
Also, Google has made minor improvements to NotebookLM, including creating separate notes for notes and allowing users to access original quotes in chat responses or saved notes.
These useful attributes are expected to bolster the adoption rate of NotebookLM in the days ahead.
We note that the latest move has added strength to the company’s Google Services segment, which constitutes the majority of total revenues.
In third-quarter 2023, Google Services’ revenues increased 10.8% year over year to $67.99 billion, accounting for 88.6% of total revenues.
Our model projects fourth-quarter 2023 Google Services revenues at $72.79 billion, indicating growth of 7.3% from 2022.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Stiff Competition
We believe that the new features added to Google’s note-taking app is a strategic move to compete with industry peers like Microsoft MSFT and Apple AAPL, which are making concerted efforts to bolster their note-taking apps with generative AI.
Microsoft’s integration of its newly introduced in-house AI system, Copilot, into its note-taking app - Microsoft OneNote, remains noteworthy.
This new update enhances the appearance of digital notebooks, enables content organization, adjusts formatting, generates summaries and highlights key points using your own words, offering an edge to the company’s note-taking app.
Similarly, Apple is set to launch the Journal app, which uses AI to gather evidence from daily activities and mindset.
Further, Apple's Journal app allows users to write entries and insert content, with local storage on iPhones and iCloud backups. It not only provides data suggestions but also prompts users to write about their love for doing something and why it brings joy.
Growing Focus on Generative AI
The latest move is in sync with Alpahbet’s deepening focus on integrating its generative AI capabilities into its products and services.
Notably, Google is set to add an AI feature called "Help me create a list" to its Keep Notes app for Android, assisting users in generating lists for various tasks, including planning, packing, grocery shopping and task completion.
Further, Google recently introduced its new, advanced, powerful, large language model, namely Gemini. It is available in three different sizes: Gemini Ultra, which is its largest and most capable one, Gemini Pro, which is designed to offer scalability across various applications, and Gemini Nano, which is designed for specific tasks and mobile devices.
We believe that all the above-mentioned endeavors will likely strengthen Alphabet’s presence in the booming generative AI space.
Per an Allied Market Research report, the global generative AI market is expected to reach $191.8 billion by 2032, witnessing a CAGR of 34.1% between 2023 and 2032.
Strength in the promising generative AI market will likely aid this Zacks Rank #3 (Hold) company in instilling investors’ optimism in the stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alphabet has gained 54.2% on a year-to-date basis compared with the industry’s growth of 53.8%.
Moreover, growing generative AI capabilities position Alphabet well to compete with some industry leaders in the generative AI space, like Adobe ADBE, which is gaining solid momentum on the back of its family of creative generative AI models, Firefly.
Notably, Adobe introduced new Firefly Models, including Image 2 and Vector, to improve imaging creative control and quality, enabling instant template design in Adobe Express.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Stiff Competition We believe that the new features added to Google’s note-taking app is a strategic move to compete with industry peers like Microsoft MSFT and Apple AAPL, which are making concerted efforts to bolster their note-taking apps with generative AI. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. This new update enhances the appearance of digital notebooks, enables content organization, adjusts formatting, generates summaries and highlights key points using your own words, offering an edge to the company’s note-taking app. | Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Stiff Competition We believe that the new features added to Google’s note-taking app is a strategic move to compete with industry peers like Microsoft MSFT and Apple AAPL, which are making concerted efforts to bolster their note-taking apps with generative AI. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, growing generative AI capabilities position Alphabet well to compete with some industry leaders in the generative AI space, like Adobe ADBE, which is gaining solid momentum on the back of its family of creative generative AI models, Firefly. | Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Stiff Competition We believe that the new features added to Google’s note-taking app is a strategic move to compete with industry peers like Microsoft MSFT and Apple AAPL, which are making concerted efforts to bolster their note-taking apps with generative AI. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, growing generative AI capabilities position Alphabet well to compete with some industry leaders in the generative AI space, like Adobe ADBE, which is gaining solid momentum on the back of its family of creative generative AI models, Firefly. | Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Stiff Competition We believe that the new features added to Google’s note-taking app is a strategic move to compete with industry peers like Microsoft MSFT and Apple AAPL, which are making concerted efforts to bolster their note-taking apps with generative AI. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, growing generative AI capabilities position Alphabet well to compete with some industry leaders in the generative AI space, like Adobe ADBE, which is gaining solid momentum on the back of its family of creative generative AI models, Firefly. |
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12160.0 | 2023-12-11 00:00:00 UTC | Wall Street Says the S&P 500 Is Headed Higher in 2024: 2 No-Brainer Growth Stocks to Buy Now With $200 and Hold Long Term | AAPL | https://www.nasdaq.com/articles/wall-street-says-the-sp-500-is-headed-higher-in-2024%3A-2-no-brainer-growth-stocks-to-buy | Wall Street analysts have thousands of active price targets on companies across the S&P 500 (SNPINDEX: ^GSPC), but those estimates can be aggregated into a single number. That bottom-up methodology gives the index a 12-month target level of 5,059, implying 10% upside from its current level.
In short, Wall Street says the S&P 500 is headed higher in 2024. But even if those gains fail to materialize, patient investors who buy good stocks at reasonable prices have historically been well rewarded. Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) and Paycom Software (NYSE: PAYC) satisfy those conditions.
Both companies have clearly defined growth opportunities that make their current valuations look reasonable. And at less than $200 per share, the stocks are also relatively affordable. That makes Alphabet and Paycom no-brainer buys.
1. Alphabet
Alphabet provides ad tech solutions and cloud computing services. The company had a solid third quarter for the most part, beating estimates on the top and bottom lines. Sales increased 11% to $76.7 billion and GAAP net income climbed 42% to $19.7 billion. The only problem was slowing growth in Google Cloud, but that was likely a product of the challenging macroeconomic climate.
The investment thesis for Alphabet remains unchanged. Its strong presence in digital advertising and cloud computing -- two markets projected to grow at 14% annually through 2030 -- creates a path to low-double-digit revenue growth for the foreseeable future, with possible upside as the company leans into artificial intelligence (AI).
Alphabet accounted for nearly 30% of global digital ad revenue last year. That success stems from its somewhat unique ability to engage consumers and source data through its many popular platforms. The best known are Google Search, YouTube, and Android, but the company actually has six products that exceed 2 billion users.
Google Cloud accounted for 11% of cloud infrastructure and platform services spending in the third quarter. Alphabet's cloud subsidiary is still a distant third behind Amazon Web Services (32%) and Microsoft Azure (23%), but its market share has increased 4 percentage points in the last three years. That success is due, in part, to prowess in AI.
Alphabet is a major player in the cloud AI developer services market, and Forrester Research has recognized its leadership in AI infrastructure services. That puts the company in a good spot. AI spending is forecasted to increase at 37% annually through 2030, and Alphabet should be a major beneficiary. Indeed, Needham analyst Laura Martin believes Alphabet will surpass Apple in market capitalization as the AI boom unfolds.
Here’s the bottom line: Alphabet has a good shot at low-double-digit sales growth for years to come given its strong presence in digital advertising and cloud computing. That makes its current valuation of 6 times sales seem reasonable. Investors should feel comfortable buying a few shares of this growth stock today.
2. Paycom Software
Paycom provides cloud-based payroll and human capital management (HCM) software. The company published mixed financial results for the third quarter, missing expectations on the top line but beating on the bottom line. Sales climbed 22% to $406 million and generally accepted accounting principles (GAAP) net income climbed 44% to $75 million.
If the bad news had stopped there, shares may have slipped a few points. Unfortunately, guidance missed expectations by a mile and Paycom stock suffered its worst single-day decline in history. But the reason for the miss was somewhat unusual. In 2021, Paycom launched a first-of-its-kind payroll automation product called Beti (Better Employee Transaction Interface). That landed Paycom on Fast Company's list of the world’s most innovative companies in 2022.
Beti is working so well that clients are spending less on other services. CFO Craig Boelte explained: "Beti adoption and usage creates tremendous value to clients as they experience perfect payrolls and eliminate errors, corrections, and unscheduled payrolls, which would otherwise be billable items." So Beti is effectively cannibalizing sales, and management expects the problem to persist through next year.
Yet, Paycom’s ability to create value for clients should ultimately be a tailwind. Moreover, investors still have two reasons to be bullish, especially with shares trading at 6.6 times sales, a bargain compared to the three-year average of 18.4 times sales.
First, Paycom has grown nearly three times faster than the broader payroll and HCM software market over the last five years. That success can be ascribed to its platform strategy. Most organizations still rely on a patchwork of HCM point products, but Paycom integrates tools for hiring, training, payroll, scheduling, and human resources (HR) management on a single platform. That eliminates complex issues while it integrates and simplifies work for HR and accounting teams.
Second, Paycom launched Global HCM earlier this year, a product that makes its HCM software available in more than 180 countries. The company has also brought Beti to Canada and Mexico, and it plans to introduce its payroll software to more international markets in the future. The upshot of that expansion is that the company’s addressable market is getting bigger.
Here's the bottom line: Paycom is an innovative company with a track record for taking share in HCM and payroll software. But management says the international expansion has diluted its market share to less than 5%, meaning Paycom still has plenty of room to expand. To that end, Morningstar analyst Emma Williams expects sales to grow at 15% annually over the next five years. That makes its current valuation look cheap, creating a worthwhile buying opportunity for patient investors.
Should you invest $1,000 in Alphabet right now?
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Trevor Jennewine has positions in Amazon and Paycom Software. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Paycom Software. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Its strong presence in digital advertising and cloud computing -- two markets projected to grow at 14% annually through 2030 -- creates a path to low-double-digit revenue growth for the foreseeable future, with possible upside as the company leans into artificial intelligence (AI). Here’s the bottom line: Alphabet has a good shot at low-double-digit sales growth for years to come given its strong presence in digital advertising and cloud computing. Most organizations still rely on a patchwork of HCM point products, but Paycom integrates tools for hiring, training, payroll, scheduling, and human resources (HR) management on a single platform. | Its strong presence in digital advertising and cloud computing -- two markets projected to grow at 14% annually through 2030 -- creates a path to low-double-digit revenue growth for the foreseeable future, with possible upside as the company leans into artificial intelligence (AI). Paycom Software Paycom provides cloud-based payroll and human capital management (HCM) software. Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. | Paycom Software Paycom provides cloud-based payroll and human capital management (HCM) software. Here's the bottom line: Paycom is an innovative company with a track record for taking share in HCM and payroll software. Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. | Paycom Software Paycom provides cloud-based payroll and human capital management (HCM) software. Beti is working so well that clients are spending less on other services. Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. |
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12161.0 | 2023-12-11 00:00:00 UTC | 1 Warren Buffett ETF I'm Stocking Up On Before the End of 2023 | AAPL | https://www.nasdaq.com/articles/1-warren-buffett-etf-im-stocking-up-on-before-the-end-of-2023 | Exchange-traded funds (ETFs) can be fantastic investments for many people. Not only do they require next to no effort on your part, but they could also help you earn hundreds of thousands of dollars or more over time.
Not all ETFs are created equal, however, and the right choice for you will depend largely on your tolerance for risk and investing goals. That said, there's one ETF I've owned for years and will continue stocking up on throughout the rest of 2023 -- and it's also earned the Warren Buffett seal of approval.
The right ETF for your portfolio
For the most part, Warren Buffett invests in individual stocks. However, he does own one type of ETF: the S&P 500 ETF. Through his holding company Berkshire Hathaway, Buffett owns shares of both the Vanguard S&P 500 ETF (NYSEMKT: VOO) and the SPDR S&P 500 ETF Trust (NYSEMKT: SPY).
Buffett has long recommended S&P 500 ETFs and index funds, and back in 2008, he even famously bet $1 million that this type of investment could beat a group of actively managed hedge funds. He easily won that bet, with his investment earning returns of around 126% over 10 years, while the five hedge funds averaged returns of just 36% in that time.
There's a good reason why the S&P 500 ETF comes highly recommended by Buffett: it's one of the safest funds out there, yet it can still help you make a lot of money over time. Some of the primary advantages of this type of investment include:
Immediate diversification: Each S&P 500 ETF includes stocks from 500 companies across a wide range of industries. This provides plenty of diversification with just a single investment, which can lower your risk substantially. Even if a few stocks in the fund struggle, it won't sink your entire portfolio.
Long track record of success: Every investment has its ups and downs, but the S&P 500 itself has an impeccable long-term record. Analysts at Crestmont Research examined the S&P 500's rolling 20-year returns throughout the index's history, and they found that every single period ended in positive total returns. That means if you had invested in an S&P 500 fund at any point in history and held it for 20 years, you'd have made money -- no matter how volatile the market was.
Strong and healthy stocks: The S&P 500 includes stocks from 500 of the largest and strongest companies in the U.S., from tech giants like Apple and Amazon to century-old brands like Procter & Gamble and Coca-Cola. No stocks are immune to short-term downturns, but the companies within the S&P 500 are among the best of the best and are far more likely to recover.
Another major perk of this type of investment is that it requires little to no effort. All of the stocks are already chosen for you, so you don't need to spend time researching companies or keeping up with industry trends. Simply invest whatever you can afford, then sit back and wait for your money to grow.
Building wealth with the S&P 500
Despite being a relatively safe and simple investment, the S&P 500 ETF packs a punch. Historically, the market itself has earned an average rate of return of around 10% per year, which means that the annual highs and lows have averaged out to roughly 10% per year over several decades.
If you're investing, say, $200 per month in an S&P 500 ETF earning a 10% average annual return, here's approximately how much you could accumulate over time depending on how many years you invest:
NUMBER OF YEARS TOTAL PORTFOLIO VALUE
20 $137,000
25 $236,000
30 $395,000
35 $650,000
40 $1,062,000
Data source: Author's calculations via investor.gov.
The more time you have to let your money grow (or the more you can afford to invest each month), the more you can potentially earn over time. Again, the S&P 500 ETF is a long-term investment. While you may see significant ups and downs in the near term, it's incredibly consistent over decades.
While the S&P 500 ETF has plenty of advantages, there is one significant downside to consider: it can't beat the market. This type of investment is designed to follow the market, so it's impossible for it to earn above-average returns. If you're looking to maximize your earnings in the stock market, investing in individual stocks may be a better option.
The S&P 500 ETF is a fantastic investment for many people. While it does only earn average returns, that could be a worthwhile trade-off for a safer and more reliable fund that requires little effort. By weighing the pros and cons of this ETF, you can decide whether it's the right fit for your portfolio.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Katie Brockman has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That said, there's one ETF I've owned for years and will continue stocking up on throughout the rest of 2023 -- and it's also earned the Warren Buffett seal of approval. There's a good reason why the S&P 500 ETF comes highly recommended by Buffett: it's one of the safest funds out there, yet it can still help you make a lot of money over time. That means if you had invested in an S&P 500 fund at any point in history and held it for 20 years, you'd have made money -- no matter how volatile the market was. | Through his holding company Berkshire Hathaway, Buffett owns shares of both the Vanguard S&P 500 ETF (NYSEMKT: VOO) and the SPDR S&P 500 ETF Trust (NYSEMKT: SPY). Before you buy stock in Vanguard S&P 500 ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Vanguard S&P 500 ETF wasn't one of them. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Vanguard S&P 500 ETF. | Some of the primary advantages of this type of investment include: Immediate diversification: Each S&P 500 ETF includes stocks from 500 companies across a wide range of industries. If you're investing, say, $200 per month in an S&P 500 ETF earning a 10% average annual return, here's approximately how much you could accumulate over time depending on how many years you invest: Before you buy stock in Vanguard S&P 500 ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Vanguard S&P 500 ETF wasn't one of them. | He easily won that bet, with his investment earning returns of around 126% over 10 years, while the five hedge funds averaged returns of just 36% in that time. If you're investing, say, $200 per month in an S&P 500 ETF earning a 10% average annual return, here's approximately how much you could accumulate over time depending on how many years you invest: Before you buy stock in Vanguard S&P 500 ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Vanguard S&P 500 ETF wasn't one of them. |
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12162.0 | 2023-12-11 00:00:00 UTC | Should SPDR Portfolio S&P 500 ETF (SPLG) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-spdr-portfolio-sp-500-etf-splg-be-on-your-investing-radar-11 | Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the SPDR Portfolio S&P 500 ETF (SPLG), a passively managed exchange traded fund launched on 11/08/2005.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $23.60 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.02%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.46%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 29% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.21% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 31.29% of total assets under management.
Performance and Risk
SPLG seeks to match the performance of the Russell 1000 Index before fees and expenses. The S&P 500 Index is designed to measure the performance of the large-capitalization segment of the U.S. equity market.
The ETF has added roughly 21.60% so far this year and it's up approximately 17.84% in the last one year (as of 12/11/2023). In the past 52-week period, it has traded between $44.30 and $54.11.
The ETF has a beta of 1 and standard deviation of 17.42% for the trailing three-year period. With about 505 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Portfolio S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SPLG is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $381.68 billion in assets, SPDR S&P 500 ETF has $444.91 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.21% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $23.60 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market. | Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.21% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). You should consider the SPDR Portfolio S&P 500 ETF (SPLG), a passively managed exchange traded fund launched on 11/08/2005. | Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.21% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives SPDR Portfolio S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.21% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Annual operating expenses for this ETF are 0.02%, making it one of the least expensive products in the space. |
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12163.0 | 2023-12-11 00:00:00 UTC | Should iShares S&P 100 ETF (OEF) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-ishares-sp-100-etf-oef-be-on-your-investing-radar-9 | Launched on 10/23/2000, the iShares S&P 100 ETF (OEF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $12.13 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.20%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.25%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 34.70% of the portfolio. Telecom and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 10.61% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 46.11% of total assets under management.
Performance and Risk
OEF seeks to match the performance of the S&P 100 Index before fees and expenses. The S&P 100 Index measures the performance of the large-capitalization sector of the U.S. equity market. It is a subset of the S&P 500 and consists of blue chip stocks from diverse industries in the S&P 500 with exchange listed options & the Index represented approximately 45% of the market capitalization of listed U.S. equities.
The ETF has gained about 28.61% so far this year and is up roughly 24.40% in the last one year (as of 12/11/2023). In the past 52-week period, it has traded between $167.54 and $217.38.
The ETF has a beta of 0.99 and standard deviation of 18.08% for the trailing three-year period, making it a medium risk choice in the space. With about 105 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares S&P 100 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, OEF is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $381.68 billion in assets, SPDR S&P 500 ETF has $444.91 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares S&P 100 ETF (OEF): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 10.61% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares S&P 100 ETF (OEF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Launched on 10/23/2000, the iShares S&P 100 ETF (OEF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market. | Click to get this free report iShares S&P 100 ETF (OEF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 10.61% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Why Large Cap Blend Large cap companies typically have a market capitalization above $10 billion. | Click to get this free report iShares S&P 100 ETF (OEF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 10.61% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives IShares S&P 100 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 10.61% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares S&P 100 ETF (OEF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Sector Exposure and Top Holdings Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. |
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12164.0 | 2023-12-11 00:00:00 UTC | Australia's central bank flags broad payments system reforms | AAPL | https://www.nasdaq.com/articles/australias-central-bank-flags-broad-payments-system-reforms | Adds comments from Bullock on NPP in paragraph 11 and 12
SYDNEY, Dec 12 (Reuters) - Australia's central bank is considering a slate of new regulations for the payments system to open the use of mobile wallets, make costs more transparent and allow retailers to put surcharges on buy-now-pay-later services.
In a speech on Tuesday, Reserve Bank of Australia (RBA) Governor Michele Bullock also outlined efforts to support the struggling business of moving cash around the country and plans to modernise the direct entry system used for salaries and welfare payments.
The Australian government is greatly expanding the RBA's regulatory power over the payments system, particularly for mobile wallet services offered by the likes of Apple AAPL.O and Google GOOG.O.
Bullock said the powers should be in place sometime next year, allowing the RBA to launch a broad review of the retail payments system.
"Usage of mobile wallets has grown rapidly, but the costs associated with these services remain opaque and payment service providers can face barriers to access," she added. "We will need to consider whether regulatory action is needed in this area."
It will also consider formal regulation to allow retailers to place surcharges on BNPL services, much as they do on credit cards.
Regulation might also be needed to ensure retailers have access to least-cost routing, which financial institutions have been slow to roll out, Bullock said.
The RBA will continue its work on a central bank digital currency (CBDC) and is planning a project to examine how different forms of digital money and infrastructure could support the development of tokenised asset markets in Australia.
It will also support the transition from the Bulk Electronic Clearing System (BECS) to the New Payments Platform (NPP), while expanding the NPP's use for cross-border transactions.
Bullock noted that financial institutions would need to connect to the NPP all relevant accounts that currently send and receive payments via BECS, which processes around three-quarters of non-cash payments by value and is heavily relied on by many businesses and government agencies.
Bullock voiced disappointment that some NPP participants were still not ready to provide cross-border payments services this month, urging the industry to deliver on this commitment as soon as possible.
"In the end, if it requires a mandate or a regulation, then we will do it but we prefer really just to work with the industry to get it done," said Bullock at the Q&A.
(Reporting by Wayne Cole; Editing by Richard Chang and Sam Holmes)
(([email protected]; 612 9171 7144; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Australian government is greatly expanding the RBA's regulatory power over the payments system, particularly for mobile wallet services offered by the likes of Apple AAPL.O and Google GOOG.O. Adds comments from Bullock on NPP in paragraph 11 and 12 SYDNEY, Dec 12 (Reuters) - Australia's central bank is considering a slate of new regulations for the payments system to open the use of mobile wallets, make costs more transparent and allow retailers to put surcharges on buy-now-pay-later services. In a speech on Tuesday, Reserve Bank of Australia (RBA) Governor Michele Bullock also outlined efforts to support the struggling business of moving cash around the country and plans to modernise the direct entry system used for salaries and welfare payments. | The Australian government is greatly expanding the RBA's regulatory power over the payments system, particularly for mobile wallet services offered by the likes of Apple AAPL.O and Google GOOG.O. Adds comments from Bullock on NPP in paragraph 11 and 12 SYDNEY, Dec 12 (Reuters) - Australia's central bank is considering a slate of new regulations for the payments system to open the use of mobile wallets, make costs more transparent and allow retailers to put surcharges on buy-now-pay-later services. Bullock voiced disappointment that some NPP participants were still not ready to provide cross-border payments services this month, urging the industry to deliver on this commitment as soon as possible. | The Australian government is greatly expanding the RBA's regulatory power over the payments system, particularly for mobile wallet services offered by the likes of Apple AAPL.O and Google GOOG.O. Adds comments from Bullock on NPP in paragraph 11 and 12 SYDNEY, Dec 12 (Reuters) - Australia's central bank is considering a slate of new regulations for the payments system to open the use of mobile wallets, make costs more transparent and allow retailers to put surcharges on buy-now-pay-later services. In a speech on Tuesday, Reserve Bank of Australia (RBA) Governor Michele Bullock also outlined efforts to support the struggling business of moving cash around the country and plans to modernise the direct entry system used for salaries and welfare payments. | The Australian government is greatly expanding the RBA's regulatory power over the payments system, particularly for mobile wallet services offered by the likes of Apple AAPL.O and Google GOOG.O. Adds comments from Bullock on NPP in paragraph 11 and 12 SYDNEY, Dec 12 (Reuters) - Australia's central bank is considering a slate of new regulations for the payments system to open the use of mobile wallets, make costs more transparent and allow retailers to put surcharges on buy-now-pay-later services. It will also support the transition from the Bulk Electronic Clearing System (BECS) to the New Payments Platform (NPP), while expanding the NPP's use for cross-border transactions. |
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12165.0 | 2023-12-11 00:00:00 UTC | Don’t Wait! 3 Fearless Stocks to Buy Before Year-End | AAPL | https://www.nasdaq.com/articles/dont-wait-3-fearless-stocks-to-buy-before-year-end | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The last bear market ended a little over a year ago. Since then the S&P 500 has rallied 27% higher. However not all stocks participated. In fact, it was the so-called Magnificent 7 group of stocks that carried the broad market index throughout most of the year. Despire the unsureness we have seen this year, there are some fearless stocks to buy making themselves known.
Nvidia (NASDAQ:NVDA) alone represents 3% of the popular benchmark’s total weighting. Its tripling in value had an outsized influence on the S&P 500’s performance. But Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), and Tesla (NASDAQ:TSLA) all played a big role in the bull market that followed.
Of course, that means the other 493 stocks barely impacted the results, or worse, worked against it. Many investors worry another bear market might be on the horizon. Although they occur on average every 3.5 years, one can happen anytime. Sharp investors understand that’s the time to buy. Of the 27 bear markets that have growled their way into existence since 1928, there have been 28 bull markets that followed.
You need to be fearless in the face of uncertainty. What follows are three tremendous stocks to buy now before year-end.
CrowdStrike Holdings (CRWD)
Source: VDB Photos / Shutterstock.com
Like death and taxes, it appears cybercrime will always be with us. The Identity Theft Resource Center says there were 2,116 data breaches in the first three quarters of 2023. That surpasses the all-time high hit in 2021 when there were 1,862 breaches. That’s where CrowdStrike Holdings (NASDAQ:CRWD) comes into play.
Through a combination of artificial intelligence (AI), machine learning, and old-fashioned human intervention, the cybersecurity leader’s Falcon platform sifts through trillions of events weekly. It quickly recognizes and responds to potential threats over time as it learns and grows. Customers are flocking to the platform, with client counts rising 45% from last year. Nearly two-thirds of them purchased at least five or more cloud module subscriptions.
Net new annual recurring revenue (ARR) hit $223.1 million, a new all-time record for CrowdStrike. Almost one-third of its revenue comes from international customers, up from 28% just three years ago. Subscription gross margin now stands at 78%, three percentage points higher than last year.
This is a stock you can buy in any market or almost anytime. Yet it is one you might want to boldly buy before the end of the year.
Digital Ocean (DOCN)
Source: monticello / Shutterstock.com
Cybersecurity is going to be a long-term growth trend, but so is helping businesses transfer their data to the cloud. Digital Ocean (NASDAQ:DOCN) is carving a niche out for itself by targeting small- and medium-sized business (SMB) to assist with the move.
SMBs don’t have the resources to pay for the cloud services of Amazon, Microsoft, or Google, but their needs are just as great as their larger brethren. For companies without large IT departments (or no IT department at all), Digital Ocean simplifies the move to the cloud. It makes the cloud accessible by having clients up and running within minutes of inquiring.
Revenue is expected to accelerate following its acquisition of AI cloud provider PaperSpace, and was up 16% in the third quarter. Net dollar retention rate, or the amount of new money existing customers spend with it each year, was 96%. That was slightly less than the 104% it had in the second quarter. Average revenue per customer, however, rose 6% year over year.
Digital Ocean is a small-cap stock itself making it the perfect vehicle for startups and other small businesses to attain their cloud goals. It’s also a perfect stock to buy now before the end of the year.
Digital Realty Trust (DLR)
Source: dotshock / Shutterstock
Yet another enduring trend we’re likely to see is the growth and strength of data centers. With all the data moving to the cloud, it needs to reside somewhere, namely in data centers. Digital Realty Trust (NYSE:DLR) is one of the largest real estate investment trusts (REIT). It owns 312 centers including 66 that are held as investments across 39.5 million square feet of space. Among its biggest customers are Oracle (NYSE:ORCL), IBM (NYSE:IBM), and Meta Platforms.
Data centers essentially serve as the backbone of the internet. They are the nerve center for everything that occurs in the cloud. They provide the warehousing for the servers and networking equipment in a secure, climate-controlled environment. As companies continue to transition their data to the cloud, they turn to Digital Realty Trust to house it.
Yet as a REIT, Digital Realty is required to return most of its profits to shareholders as distributions. The REIT’s dividend yield stands at 3.7% annually. Those profits could grow exponentially due to the advent of AI. Because of the vast computing power, storage space, and low-latency networking for training and running models required, the demand for data centers will grow. That makes Digital Realty Trust a fearless stock to buy now before the end of 2023.
On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The post Don’t Wait! 3 Fearless Stocks to Buy Before Year-End appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), and Tesla (NASDAQ:TSLA) all played a big role in the bull market that followed. Through a combination of artificial intelligence (AI), machine learning, and old-fashioned human intervention, the cybersecurity leader’s Falcon platform sifts through trillions of events weekly. Digital Ocean (DOCN) Source: monticello / Shutterstock.com Cybersecurity is going to be a long-term growth trend, but so is helping businesses transfer their data to the cloud. | But Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), and Tesla (NASDAQ:TSLA) all played a big role in the bull market that followed. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The last bear market ended a little over a year ago. Digital Realty Trust (DLR) Source: dotshock / Shutterstock Yet another enduring trend we’re likely to see is the growth and strength of data centers. | But Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), and Tesla (NASDAQ:TSLA) all played a big role in the bull market that followed. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The last bear market ended a little over a year ago. That makes Digital Realty Trust a fearless stock to buy now before the end of 2023. | But Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), and Tesla (NASDAQ:TSLA) all played a big role in the bull market that followed. The Identity Theft Resource Center says there were 2,116 data breaches in the first three quarters of 2023. That makes Digital Realty Trust a fearless stock to buy now before the end of 2023. |
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12166.0 | 2023-12-11 00:00:00 UTC | Epic Games CEO says company won in Google Play antitrust case | AAPL | https://www.nasdaq.com/articles/epic-games-ceo-says-company-won-in-google-play-antitrust-case | By Mike Scarcella and Greg Bensinger
Dec 11 (Reuters) - "Fortnite" maker Epic Games has prevailed in an antitrust trial over Alphabet's Google Play app marketplace GOOGL.O, Epic Chief Executive Tim Sweeney said on Monday, hours after the federal jury took up the case.
"Victory over Google! After 4 weeks of detailed court testimony, the California jury found against the Google Play monopoly on all counts. The Court’s work on remedies will start in January," Sweeney wrote in a post on X, formerly known as Twitter.
Spokespeople for Google and Epic did not immediately respond to requests for comment.
The lawsuit, filed in 2020, also challenges the fee of up to 30% that Google imposes on developers for in-app sales.
Alphabet CEO, in Play store trial, acknowledges some materials not retained https://www.reuters.com/technology/alphabet-ceo-play-store-trial-acknowledges-some-materials-not-retained-2023-11-14/
Google and Epic Games face off at trial over Play Store rules https://www.reuters.com/legal/transactional/google-epic-games-face-off-trial-over-play-store-rules-2023-11-06/
Alphabet, Match settle Google Play antitrust claims before US trial https://www.reuters.com/legal/alphabet-match-settle-google-play-antitrust-claims-before-us-trial-2023-10-31/
(Reporting by Mike Scarcella; Editing by David Bario, Bernadette Baum and Nick Zieminski)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Mike Scarcella and Greg Bensinger Dec 11 (Reuters) - "Fortnite" maker Epic Games has prevailed in an antitrust trial over Alphabet's Google Play app marketplace GOOGL.O, Epic Chief Executive Tim Sweeney said on Monday, hours after the federal jury took up the case. After 4 weeks of detailed court testimony, the California jury found against the Google Play monopoly on all counts. Alphabet CEO, in Play store trial, acknowledges some materials not retained https://www.reuters.com/technology/alphabet-ceo-play-store-trial-acknowledges-some-materials-not-retained-2023-11-14/ Google and Epic Games face off at trial over Play Store rules https://www.reuters.com/legal/transactional/google-epic-games-face-off-trial-over-play-store-rules-2023-11-06/ Alphabet, Match settle Google Play antitrust claims before US trial https://www.reuters.com/legal/alphabet-match-settle-google-play-antitrust-claims-before-us-trial-2023-10-31/ (Reporting by Mike Scarcella; Editing by David Bario, Bernadette Baum and Nick Zieminski) (([email protected];)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Mike Scarcella and Greg Bensinger Dec 11 (Reuters) - "Fortnite" maker Epic Games has prevailed in an antitrust trial over Alphabet's Google Play app marketplace GOOGL.O, Epic Chief Executive Tim Sweeney said on Monday, hours after the federal jury took up the case. After 4 weeks of detailed court testimony, the California jury found against the Google Play monopoly on all counts. Alphabet CEO, in Play store trial, acknowledges some materials not retained https://www.reuters.com/technology/alphabet-ceo-play-store-trial-acknowledges-some-materials-not-retained-2023-11-14/ Google and Epic Games face off at trial over Play Store rules https://www.reuters.com/legal/transactional/google-epic-games-face-off-trial-over-play-store-rules-2023-11-06/ Alphabet, Match settle Google Play antitrust claims before US trial https://www.reuters.com/legal/alphabet-match-settle-google-play-antitrust-claims-before-us-trial-2023-10-31/ (Reporting by Mike Scarcella; Editing by David Bario, Bernadette Baum and Nick Zieminski) (([email protected];)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Mike Scarcella and Greg Bensinger Dec 11 (Reuters) - "Fortnite" maker Epic Games has prevailed in an antitrust trial over Alphabet's Google Play app marketplace GOOGL.O, Epic Chief Executive Tim Sweeney said on Monday, hours after the federal jury took up the case. After 4 weeks of detailed court testimony, the California jury found against the Google Play monopoly on all counts. Alphabet CEO, in Play store trial, acknowledges some materials not retained https://www.reuters.com/technology/alphabet-ceo-play-store-trial-acknowledges-some-materials-not-retained-2023-11-14/ Google and Epic Games face off at trial over Play Store rules https://www.reuters.com/legal/transactional/google-epic-games-face-off-trial-over-play-store-rules-2023-11-06/ Alphabet, Match settle Google Play antitrust claims before US trial https://www.reuters.com/legal/alphabet-match-settle-google-play-antitrust-claims-before-us-trial-2023-10-31/ (Reporting by Mike Scarcella; Editing by David Bario, Bernadette Baum and Nick Zieminski) (([email protected];)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Mike Scarcella and Greg Bensinger Dec 11 (Reuters) - "Fortnite" maker Epic Games has prevailed in an antitrust trial over Alphabet's Google Play app marketplace GOOGL.O, Epic Chief Executive Tim Sweeney said on Monday, hours after the federal jury took up the case. "Victory over Google! After 4 weeks of detailed court testimony, the California jury found against the Google Play monopoly on all counts. |
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12167.0 | 2023-12-11 00:00:00 UTC | After Hours Most Active for Dec 11, 2023 : CXM, INTC, PTEN, AMZN, SABR, ORCL, BMY, AAPL, CNHI, BEKE, WFC, KHC | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-dec-11-2023-%3A-cxm-intc-pten-amzn-sabr-orcl-bmy-aapl-cnhi-beke | The NASDAQ 100 After Hours Indicator is down -3.73 to 16,218. The total After hours volume is currently 107,434,502 shares traded.
The following are the most active stocks for the after hours session:
Sprinklr, Inc. (CXM) is unchanged at $11.13, with 5,728,437 shares traded. CXM's current last sale is 61.83% of the target price of $18.
Intel Corporation (INTC) is -0.03 at $44.51, with 5,150,024 shares traded. INTC's current last sale is 117.13% of the target price of $38.
Patterson-UTI Energy, Inc. (PTEN) is +0.06 at $10.90, with 4,971,397 shares traded. As reported by Zacks, the current mean recommendation for PTEN is in the "buy range".
Amazon.com, Inc. (AMZN) is unchanged at $145.89, with 4,135,804 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Sabre Corporation (SABR) is unchanged at $4.07, with 3,128,259 shares traded. As reported in the last short interest update the days to cover for SABR is 8.805181; this calculation is based on the average trading volume of the stock.
Oracle Corporation (ORCL) is -10.67 at $104.46, with 3,079,519 shares traded. Smarter Analyst Reports: Oracle Posts Upbeat Q2 Results; Shares Jump
Bristol-Myers Squibb Company (BMY) is +0.0199 at $51.11, with 2,794,269 shares traded. BMY's current last sale is 85.18% of the target price of $60.
Apple Inc. (AAPL) is unchanged at $193.18, with 2,585,680 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
CNH Industrial N.V. (CNHI) is unchanged at $11.09, with 2,472,649 shares traded. CNHI's current last sale is 73.4% of the target price of $15.11.
KE Holdings Inc (BEKE) is unchanged at $15.18, with 2,295,528 shares traded. As reported by Zacks, the current mean recommendation for BEKE is in the "buy range".
Wells Fargo & Company (WFC) is -0.01 at $45.99, with 2,238,634 shares traded. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
The Kraft Heinz Company (KHC) is -0.04 at $36.74, with 1,995,856 shares traded. KHC's current last sale is 94.21% of the target price of $39.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Inc. (AAPL) is unchanged at $193.18, with 2,585,680 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for AMZN is in the "buy range". | Apple Inc. (AAPL) is unchanged at $193.18, with 2,585,680 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 107,434,502 shares traded. | Apple Inc. (AAPL) is unchanged at $193.18, with 2,585,680 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 107,434,502 shares traded. | Apple Inc. (AAPL) is unchanged at $193.18, with 2,585,680 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -3.73 to 16,218. |
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12168.0 | 2023-12-11 00:00:00 UTC | Notable Monday Option Activity: PAR, SABR, AAPL | AAPL | https://www.nasdaq.com/articles/notable-monday-option-activity%3A-par-sabr-aapl | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Par Technology Corp. (Symbol: PAR), where a total of 21,123 contracts have traded so far, representing approximately 2.1 million underlying shares. That amounts to about 915.9% of PAR's average daily trading volume over the past month of 230,620 shares. Particularly high volume was seen for the $22.50 strike call option expiring January 17, 2025, with 9,001 contracts trading so far today, representing approximately 900,100 underlying shares of PAR. Below is a chart showing PAR's trailing twelve month trading history, with the $22.50 strike highlighted in orange:
Sabre Corp (Symbol: SABR) saw options trading volume of 72,497 contracts, representing approximately 7.2 million underlying shares or approximately 174.7% of SABR's average daily trading volume over the past month, of 4.1 million shares. Particularly high volume was seen for the $2.50 strike put option expiring July 19, 2024, with 40,120 contracts trading so far today, representing approximately 4.0 million underlying shares of SABR. Below is a chart showing SABR's trailing twelve month trading history, with the $2.50 strike highlighted in orange:
And Apple Inc (Symbol: AAPL) options are showing a volume of 666,167 contracts thus far today. That number of contracts represents approximately 66.6 million underlying shares, working out to a sizeable 140.9% of AAPL's average daily trading volume over the past month, of 47.3 million shares. Especially high volume was seen for the $195 strike call option expiring December 15, 2023, with 89,150 contracts trading so far today, representing approximately 8.9 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $195 strike highlighted in orange:
For the various different available expirations for PAR options, SABR options, or AAPL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $195 strike call option expiring December 15, 2023, with 89,150 contracts trading so far today, representing approximately 8.9 million underlying shares of AAPL. Below is a chart showing SABR's trailing twelve month trading history, with the $2.50 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 666,167 contracts thus far today. That number of contracts represents approximately 66.6 million underlying shares, working out to a sizeable 140.9% of AAPL's average daily trading volume over the past month, of 47.3 million shares. | Below is a chart showing SABR's trailing twelve month trading history, with the $2.50 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 666,167 contracts thus far today. That number of contracts represents approximately 66.6 million underlying shares, working out to a sizeable 140.9% of AAPL's average daily trading volume over the past month, of 47.3 million shares. Especially high volume was seen for the $195 strike call option expiring December 15, 2023, with 89,150 contracts trading so far today, representing approximately 8.9 million underlying shares of AAPL. | Especially high volume was seen for the $195 strike call option expiring December 15, 2023, with 89,150 contracts trading so far today, representing approximately 8.9 million underlying shares of AAPL. Below is a chart showing SABR's trailing twelve month trading history, with the $2.50 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 666,167 contracts thus far today. That number of contracts represents approximately 66.6 million underlying shares, working out to a sizeable 140.9% of AAPL's average daily trading volume over the past month, of 47.3 million shares. | Below is a chart showing AAPL's trailing twelve month trading history, with the $195 strike highlighted in orange: For the various different available expirations for PAR options, SABR options, or AAPL options, visit StockOptionsChannel.com. Below is a chart showing SABR's trailing twelve month trading history, with the $2.50 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 666,167 contracts thus far today. That number of contracts represents approximately 66.6 million underlying shares, working out to a sizeable 140.9% of AAPL's average daily trading volume over the past month, of 47.3 million shares. |
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12169.0 | 2023-12-11 00:00:00 UTC | Could Apple Stock Plummet in 2024? | AAPL | https://www.nasdaq.com/articles/could-apple-stock-plummet-in-2024 | Apple (NASDAQ: AAPL) has had a phenomenal run in 2023, with the stock rising about 50% year to date. However, that rise wasn't warranted, in my opinion. If you analyze Apple's business results for its fiscal 2023, they aren't great. In fact, if it were any company besides Apple, the stock behind the business would have likely declined.
As a result, 2024 could be a bumpy year for Apple shareholders, as the company enters the year with sky-high expectations but no execution behind it. So is Apple stock due for a crash in 2024?
iPhone sales were weak in 2023
When analyzing Apple, it's easier to break the company into two segments: iPhones and everything else. In its fiscal 2023 fourth quarter, which ended Sept. 30, iPhones accounted for 49% of Apple's sales. However, iPhone sales weren't strong this year.
PERIOD IPHONE SALES GROWTH
Fiscal Q4 2023 2.8%
Fiscal Q3 2023 (2.5%)
Fiscal Q2 2023 1.4%
Fiscal Q1 2023 (8.1%)
Data source: Apple.
When sales of a company's flagship product are hardly growing, that's a problem, and that showed on the top line. Apple's total revenues declined year over year in every quarter of fiscal 2023.
The only bright spot in fiscal 2023 was its services division, which includes Apple TV+, advertising, Apple Care, Cloud Services, and all the revenue it accrues from sales in the App Store. Services segment sales increased every quarter, and rose 16% to $22.3 billion in the most recent one.
But services only amount to about a quarter of Apple's business, and that success didn't offset the weaknesses in sales of wearables, Macs, or iPads.
Still, revenue isn't everything when assessing a business. Profits matter too.
Apple is a master at optimizing its resources, and it did a great job of that. Though revenue declined 2.8% in fiscal 2023, its earnings per share slightly rose from $6.15 last year to $6.16 this year. But barely growing earnings isn't going to cut it, especially for a stock that trades at the premium Apple does.
Apple trades at massive premium despite little growth
So Apple's 2023 wasn't spectacular. Still, investors felt the need to slap a premium price tag on the stock.
AAPL PE Ratio data by YCharts.
When Apple traded above its current valuation in 2020 and 2021, its revenue growth supported the premium. Now that Apple's earnings ratio has returned to that level without the revenue growth, it doesn't.
This makes me believe that Apple stock is trading on borrowed time. If it cannot start growing sales, investors may lose their willingness to pay this premium for the stock, especially when there are many other choices out there that are both cheaper and growing faster.
But Apple didn't become the world's largest company without reason. It could launch an innovative, must-have product that substantially boosts sales and justifies the stock price. Or iPhone sales could rebound to kick-start growth again.
However, Wall Street analysts project 3.5% growth in its fiscal 2024 and 5.7% in its fiscal 2025, so they're not expecting much growth either.
In my book, Apple's stock is overvalued, and I'd look at other investment options rather than buying its shares.
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*Stock Advisor returns as of December 7, 2023
Keithen Drury has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) has had a phenomenal run in 2023, with the stock rising about 50% year to date. AAPL PE Ratio data by YCharts. But services only amount to about a quarter of Apple's business, and that success didn't offset the weaknesses in sales of wearables, Macs, or iPads. | Apple (NASDAQ: AAPL) has had a phenomenal run in 2023, with the stock rising about 50% year to date. AAPL PE Ratio data by YCharts. If you analyze Apple's business results for its fiscal 2023, they aren't great. | Apple (NASDAQ: AAPL) has had a phenomenal run in 2023, with the stock rising about 50% year to date. AAPL PE Ratio data by YCharts. The only bright spot in fiscal 2023 was its services division, which includes Apple TV+, advertising, Apple Care, Cloud Services, and all the revenue it accrues from sales in the App Store. | Apple (NASDAQ: AAPL) has had a phenomenal run in 2023, with the stock rising about 50% year to date. AAPL PE Ratio data by YCharts. Though revenue declined 2.8% in fiscal 2023, its earnings per share slightly rose from $6.15 last year to $6.16 this year. |
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12170.0 | 2023-12-11 00:00:00 UTC | Is John Hancock Multifactor Large Cap ETF (JHML) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-john-hancock-multifactor-large-cap-etf-jhml-a-strong-etf-right-now-9 | Launched on 09/28/2015, the John Hancock Multifactor Large Cap ETF (JHML) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
JHML is managed by John Hancock, and this fund has amassed over $744.08 million, which makes it one of the larger ETFs in the Style Box - Large Cap Blend. JHML seeks to match the performance of the John Hancock Dimensional Large Cap Index before fees and expenses.
The John Hancock Dimensional Large Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are larger than that of the 801st largest U.S. company.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.29% for this ETF, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.39%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 23.70% of the portfolio. Financials and Industrials round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.52% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN).
JHML's top 10 holdings account for about 19.11% of its total assets under management.
Performance and Risk
The ETF return is roughly 16.04% and is up about 12.87% so far this year and in the past one year (as of 12/11/2023), respectively. JHML has traded between $48.55 and $56.80 during this last 52-week period.
JHML has a beta of 1.01 and standard deviation of 17.08% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 781 holdings, it effectively diversifies company-specific risk.
Alternatives
John Hancock Multifactor Large Cap ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. IShares Core S&P 500 ETF has $381.68 billion in assets, SPDR S&P 500 ETF has $444.91 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.52% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta. | Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.52% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Launched on 09/28/2015, the John Hancock Multifactor Large Cap ETF (JHML) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market. | Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.52% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Launched on 09/28/2015, the John Hancock Multifactor Large Cap ETF (JHML) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market. | Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.52% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Launched on 09/28/2015, the John Hancock Multifactor Large Cap ETF (JHML) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market. |
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12171.0 | 2023-12-11 00:00:00 UTC | US STOCKS-S&P, Nasdaq subdued on caution ahead of inflation data, Fed meeting | AAPL | https://www.nasdaq.com/articles/us-stocks-sp-nasdaq-subdued-on-caution-ahead-of-inflation-data-fed-meeting | By Shristi Achar A and Johann M Cherian
Dec 11 (Reuters) - The S&P 500 and Nasdaq were subdued on Monday in the run-up to an action-packed week that includes the Federal Reserve's policy meeting and inflation data, both of which will test investor optimism about interest rates easing next year.
The upbeat sentiment around stabilizing interest rates and robust quarterly earnings caused equities to rebound towards the end of the year, with the benchmark S&P 500 .SPX hitting its highest intra-day level of the year.
The S&P 500 and Nasdaq .IXIC also notched their highest closing since early 2022 on Friday, after data showed nonfarm payrolls were higher than expected, underscoring hopes that the world's largest economy could control inflation without slipping into a recession.
Focus now shifts to the Consumer Price Index (CPI) data due on Tuesday, which is expected to show headline inflation remaining unchanged in November, and the Fed's last interest rate decision of the year on Wednesday.
While money markets have almost fully priced in a rate-hike pause in the upcoming meeting, bets of a rate cut next year have been seeping in, with traders seeing a near 40% chance of at least a 25-basis-point cut in March 2024 and a 72.6% chance in May, according to the CME Group's FedWatch tool.
"Anything short of a cooler CPI number or some less hawkish commentary from (Federal Reserve) Chair Powell will throw a little bit of cold water on some of the optimism," said Michael James, managing director of equity trading at Wedbush Securities.
Elsewhere, the European Central Bank and the Bank of England, among others, are also scheduled to deliver their interest rate decisions later this week.
Megacaps including Alphabet GOOGL.O, Apple AAPL.Oand Amazon.com AMZN.O shed between 1.7% and 2%, keeping the tech-heavy Nasdaq under pressure, while a 6.6% gain in Broadcom AVGO.O, after Citigroup resumed coverage on the chipmaker with a "buy" rating, limited further losses.
CignaCI.N jumped 16.2% after the health insurer ended its attempt to negotiate the acquisition of rival Humana HUM.N, according to sources, and announced a $10 billion share buyback plan.
Cushioning the blue-chip Dow, NikeNKE.N added 2.7% after brokerage Citigroup upgraded its stock to "buy" from "neutral".
Among other movers, Macy'sM.N soared 19.3% after an investor group consisting of Arkhouse Management and Brigade Capital made a $5.8 billion offer to take the department store chain private, according to a source.
Crypto stocks like Riot Platforms RIOT.O, Coinbase COIN.O and Marathon Digital MARA.O slid between 5.5% and 12% as bitcoin BTC=BTSP fell to a week's low.
The S&P index recorded 50 new 52-week highs and no new lows, while the Nasdaq recorded 81 new highs and 95 new lows.
(Reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai)
(([email protected] https://twitter.com/ShristiAchar; [email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Megacaps including Alphabet GOOGL.O, Apple AAPL.Oand Amazon.com AMZN.O shed between 1.7% and 2%, keeping the tech-heavy Nasdaq under pressure, while a 6.6% gain in Broadcom AVGO.O, after Citigroup resumed coverage on the chipmaker with a "buy" rating, limited further losses. By Shristi Achar A and Johann M Cherian Dec 11 (Reuters) - The S&P 500 and Nasdaq were subdued on Monday in the run-up to an action-packed week that includes the Federal Reserve's policy meeting and inflation data, both of which will test investor optimism about interest rates easing next year. Focus now shifts to the Consumer Price Index (CPI) data due on Tuesday, which is expected to show headline inflation remaining unchanged in November, and the Fed's last interest rate decision of the year on Wednesday. | Megacaps including Alphabet GOOGL.O, Apple AAPL.Oand Amazon.com AMZN.O shed between 1.7% and 2%, keeping the tech-heavy Nasdaq under pressure, while a 6.6% gain in Broadcom AVGO.O, after Citigroup resumed coverage on the chipmaker with a "buy" rating, limited further losses. By Shristi Achar A and Johann M Cherian Dec 11 (Reuters) - The S&P 500 and Nasdaq were subdued on Monday in the run-up to an action-packed week that includes the Federal Reserve's policy meeting and inflation data, both of which will test investor optimism about interest rates easing next year. Focus now shifts to the Consumer Price Index (CPI) data due on Tuesday, which is expected to show headline inflation remaining unchanged in November, and the Fed's last interest rate decision of the year on Wednesday. | Megacaps including Alphabet GOOGL.O, Apple AAPL.Oand Amazon.com AMZN.O shed between 1.7% and 2%, keeping the tech-heavy Nasdaq under pressure, while a 6.6% gain in Broadcom AVGO.O, after Citigroup resumed coverage on the chipmaker with a "buy" rating, limited further losses. By Shristi Achar A and Johann M Cherian Dec 11 (Reuters) - The S&P 500 and Nasdaq were subdued on Monday in the run-up to an action-packed week that includes the Federal Reserve's policy meeting and inflation data, both of which will test investor optimism about interest rates easing next year. The upbeat sentiment around stabilizing interest rates and robust quarterly earnings caused equities to rebound towards the end of the year, with the benchmark S&P 500 .SPX hitting its highest intra-day level of the year. | Megacaps including Alphabet GOOGL.O, Apple AAPL.Oand Amazon.com AMZN.O shed between 1.7% and 2%, keeping the tech-heavy Nasdaq under pressure, while a 6.6% gain in Broadcom AVGO.O, after Citigroup resumed coverage on the chipmaker with a "buy" rating, limited further losses. By Shristi Achar A and Johann M Cherian Dec 11 (Reuters) - The S&P 500 and Nasdaq were subdued on Monday in the run-up to an action-packed week that includes the Federal Reserve's policy meeting and inflation data, both of which will test investor optimism about interest rates easing next year. The upbeat sentiment around stabilizing interest rates and robust quarterly earnings caused equities to rebound towards the end of the year, with the benchmark S&P 500 .SPX hitting its highest intra-day level of the year. |
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12172.0 | 2023-12-11 00:00:00 UTC | QUAL, GPIX: Big ETF Outflows | AAPL | https://www.nasdaq.com/articles/qual-gpix%3A-big-etf-outflows | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares MSCI USA Quality Factor ETF, where 20,200,000 units were destroyed, or a 7.5% decrease week over week. Among the largest underlying components of QUAL, in morning trading today Visa is up about 0.4%, and Apple is lower by about 1.8%.
And on a percentage change basis, the ETF with the biggest outflow was the GPIX ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior.
VIDEO: QUAL, GPIX: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of QUAL, in morning trading today Visa is up about 0.4%, and Apple is lower by about 1.8%. And on a percentage change basis, the ETF with the biggest outflow was the GPIX ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: QUAL, GPIX: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares MSCI USA Quality Factor ETF, where 20,200,000 units were destroyed, or a 7.5% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the GPIX ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: QUAL, GPIX: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares MSCI USA Quality Factor ETF, where 20,200,000 units were destroyed, or a 7.5% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the GPIX ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: QUAL, GPIX: Big ETF Outflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares MSCI USA Quality Factor ETF, where 20,200,000 units were destroyed, or a 7.5% decrease week over week. Among the largest underlying components of QUAL, in morning trading today Visa is up about 0.4%, and Apple is lower by about 1.8%. And on a percentage change basis, the ETF with the biggest outflow was the GPIX ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. |
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12173.0 | 2023-12-11 00:00:00 UTC | Netflix to livestream Nadal-Alcaraz face-off in March | AAPL | https://www.nasdaq.com/articles/netflix-to-livestream-nadal-alcaraz-face-off-in-march | Dec 11 (Reuters) - Netflix NFLX.O will livestream a tennis face-off between 22-time Grand Slam champion Rafael Nadal and current World No.2 Carlos Alcaraz on March 3, the streaming pioneer said on Monday.
"The Netflix Slam" marks the company's latest foray into live sports after a celebrity golf tournament in November, which featured Formula One drivers and professional golfers.
Live sports streaming by big tech firms has seen growing viewership in recent years and the companies are cashing in on the trend. Amazon Prime snapped up the rights to Thursday Night Football, while Apple TV hosts Friday Night Baseball and Major League Soccer.
The Nadal-Alcaraz match, hosted by MGM Resorts International MGM.N, will take place at noon inside the Michelob ULTRA Arena at the Mandalay Bay Resort and Casino in Las Vegas. More players and matches will be announced later, Netflix said in a statement.
Big tech's foray into live sports has challenged traditional TV-focused companies, for which live sports remains a rare bright spot, at a time when cord-cutting is upending their business models.
Netflix has suggested it does not plan to compete for sports rights, with finance chief Spencer Neumann saying in September that it was hard to see a return on billions of dollars of investment in live sports.
Instead, the company plans to focus on what is called sports shoulder programming - companion content such as its "Formula 1: Drive to Survive" documentary series that hopes to tap the same audience base as live sports.
The tennis face-off between Nadal and Alcaraz will stream as a dual broadcast in English and Spanish. Tickets for the event start at $88 and will go on sale on Friday.
"I am sure it will be a fantastic night of tennis," Nadal said in a statement.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Pooja Desai)
(([email protected]; https://twitter.com/i_jass;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Dec 11 (Reuters) - Netflix NFLX.O will livestream a tennis face-off between 22-time Grand Slam champion Rafael Nadal and current World No.2 Carlos Alcaraz on March 3, the streaming pioneer said on Monday. "The Netflix Slam" marks the company's latest foray into live sports after a celebrity golf tournament in November, which featured Formula One drivers and professional golfers. Live sports streaming by big tech firms has seen growing viewership in recent years and the companies are cashing in on the trend. | "The Netflix Slam" marks the company's latest foray into live sports after a celebrity golf tournament in November, which featured Formula One drivers and professional golfers. Live sports streaming by big tech firms has seen growing viewership in recent years and the companies are cashing in on the trend. Big tech's foray into live sports has challenged traditional TV-focused companies, for which live sports remains a rare bright spot, at a time when cord-cutting is upending their business models. | Dec 11 (Reuters) - Netflix NFLX.O will livestream a tennis face-off between 22-time Grand Slam champion Rafael Nadal and current World No.2 Carlos Alcaraz on March 3, the streaming pioneer said on Monday. Big tech's foray into live sports has challenged traditional TV-focused companies, for which live sports remains a rare bright spot, at a time when cord-cutting is upending their business models. Netflix has suggested it does not plan to compete for sports rights, with finance chief Spencer Neumann saying in September that it was hard to see a return on billions of dollars of investment in live sports. | The Nadal-Alcaraz match, hosted by MGM Resorts International MGM.N, will take place at noon inside the Michelob ULTRA Arena at the Mandalay Bay Resort and Casino in Las Vegas. Big tech's foray into live sports has challenged traditional TV-focused companies, for which live sports remains a rare bright spot, at a time when cord-cutting is upending their business models. "I am sure it will be a fantastic night of tennis," Nadal said in a statement. |
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12174.0 | 2023-12-11 00:00:00 UTC | ETF Investing Strategies for 2024 | AAPL | https://www.nasdaq.com/articles/etf-investing-strategies-for-2024 | (1:15) - How Many Rate Cuts Could We See In 2024?
(3:50) - Will We See Investors Chase The Recent Equity Rally?
(8:45) - What To Expect Going Into 2024 With A Slowing Economy?
(13:50) - Investing Themes For 2024: How Should You Position Yourself For The New Year?
(21:00) - Breaking Down Fixed Income Performance: Should You Stay Invested?
(24:35) - ETF Inflows Trends: Where Should Investors Be Looking Right Now?
(27:20) - Episode Roundup: QUAL. IRBO, EWJ, INDA, BINC, IEI
[email protected]
In this episode of ETF Spotlight, I speak with Kristy Akullian, Director on BlackRock’s iShares Investment Strategy team, about the market outlook and investing strategies for 2024. BlackRock, the world’s largest asset manager, offers about 430 US-listed ETFs.
Stocks and bonds have posted their biggest rallies recently, fueled by hopes that the Fed will start cutting rates next year. According to BlackRock, while we are likely at the end of the hiking cycle, the central bank is expected to maintain higher rates for an extended period.
Historically, stocks and bonds have performed better during the pause period than during easing periods following the initial rate cut. However, the interaction of slowing economic growth, US elections, and escalating geopolitical tensions introduces volatility into the market environment.
While large-cap growth and quality stocks may still lead the market rally and provide some stability, various factors could prompt leadership changes throughout the year.
The iShares MSCI USA Quality Factor ETF QUAL has gathered more than $12 billion of new cash this year. Stocks like Apple AAPL, Microsoft MSFT, and NVIDIA NVDA are its top holdings.
Investors have poured over $1 trillion into money market funds and other cash-like instruments this year. While it is important to reduce exposure to cash now, the risk-reward doesn't justify a move to the long-duration bonds.
Investors could consider active bond strategies and intermediate-duration bond exposures. Take a look at the BlackRock Flexible Income BINC and the iShares 3-7 Year Treasury Bond ETFIEI.
AI enthusiasm drove the market rally this year, but adoption of generative AI is still in its early stages. ETF like the iShares Robotics and Artificial Intelligence Multisector ETFIRBO could continue their rally next year.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email [email protected].
Disclosure: Neena holds QUAL and IRBO in the ETF Investor Portfolio.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports
iShares 3-7 Year Treasury Bond ETF (IEI): ETF Research Reports
iShares Robotics and Artificial Intelligence Multisector ETF (IRBO): ETF Research Reports
BlackRock Flexible Income ETF (BINC): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks like Apple AAPL, Microsoft MSFT, and NVIDIA NVDA are its top holdings. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports iShares 3-7 Year Treasury Bond ETF (IEI): ETF Research Reports iShares Robotics and Artificial Intelligence Multisector ETF (IRBO): ETF Research Reports BlackRock Flexible Income ETF (BINC): ETF Research Reports To read this article on Zacks.com click here. Stocks and bonds have posted their biggest rallies recently, fueled by hopes that the Fed will start cutting rates next year. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports iShares 3-7 Year Treasury Bond ETF (IEI): ETF Research Reports iShares Robotics and Artificial Intelligence Multisector ETF (IRBO): ETF Research Reports BlackRock Flexible Income ETF (BINC): ETF Research Reports To read this article on Zacks.com click here. Stocks like Apple AAPL, Microsoft MSFT, and NVIDIA NVDA are its top holdings. The iShares MSCI USA Quality Factor ETF QUAL has gathered more than $12 billion of new cash this year. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports iShares 3-7 Year Treasury Bond ETF (IEI): ETF Research Reports iShares Robotics and Artificial Intelligence Multisector ETF (IRBO): ETF Research Reports BlackRock Flexible Income ETF (BINC): ETF Research Reports To read this article on Zacks.com click here. Stocks like Apple AAPL, Microsoft MSFT, and NVIDIA NVDA are its top holdings. IRBO, EWJ, INDA, BINC, IEI [email protected] In this episode of ETF Spotlight, I speak with Kristy Akullian, Director on BlackRock’s iShares Investment Strategy team, about the market outlook and investing strategies for 2024. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports iShares 3-7 Year Treasury Bond ETF (IEI): ETF Research Reports iShares Robotics and Artificial Intelligence Multisector ETF (IRBO): ETF Research Reports BlackRock Flexible Income ETF (BINC): ETF Research Reports To read this article on Zacks.com click here. Stocks like Apple AAPL, Microsoft MSFT, and NVIDIA NVDA are its top holdings. IRBO, EWJ, INDA, BINC, IEI [email protected] In this episode of ETF Spotlight, I speak with Kristy Akullian, Director on BlackRock’s iShares Investment Strategy team, about the market outlook and investing strategies for 2024. |
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12175.0 | 2023-12-10 00:00:00 UTC | 1 Artificial Intelligence (AI) Stock Set to Join Apple, Amazon, Microsoft, Alphabet, and Nvidia in the $1 Trillion Club | AAPL | https://www.nasdaq.com/articles/1-artificial-intelligence-ai-stock-set-to-join-apple-amazon-microsoft-alphabet-and-nvidia | Every company in the $1 trillion club is investing heavily in artificial intelligence (AI).
Apple (NASDAQ: AAPL) touted several AI-powered features in its latest iOS update and new iPhone release. The company pours around $1 billion annually into developing new AI technologies.
Amazon (NASDAQ: AMZN) is the leading cloud computing platform, and it just unveiled its new Trainium 2 chip design to enable developers to train their large language models while using less computing power. It also announced a new partnership with Nvidia (NASDAQ: NVDA).
Microsoft (NASDAQ: MSFT) positioned itself as a top choice for AI developers when it increased its investment in OpenAI earlier this year, garnering a 49% stake in the leading AI developer. Its generative AI-powered Copilot service is seeing great momentum across multiple enterprise applications.
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is developing its own large language model to power its services and provides a cloud computing platform for developers to train and run their own AI applications.
Nvidia is the leading AI chipmaker. Leading-edge developers use its graphics processing units (GPUs) to train their AI models.
It should be no surprise, then, that one of the most promising stocks to join the group with market caps exceeding $1 trillion is also spending heavily to develop artificial intelligence and apply it to its products. In fact, there might not be anyone developing an AI as advanced as Meta Platform's (NASDAQ: META), and the market may be underappreciating its potential.
Image source: Getty Images.
Pushing generative AI forward
Meta CEO Mark Zuckerberg has practically transformed his company from a social media platform provider to an AI innovator. "AI will be our biggest investment area in 2024 -- both in engineering and compute resources," he told analysts during Meta's third-quarter earnings call. Not only that, he's shifting headcount from other areas, deprioritizing non-AI projects to facilitate the investment in artificial intelligence.
So far, the investments have paid off. The company released its Llama 2 large language model over the summer and made it open source. Developers have taken it and produced results that can compete with the leading private AI models, like OpenAI's GPT-4. That could lead to further advancements in Meta's development of Llama 3, which could come as early as the first half of 2024.
But Meta has a big advantage over many of the existing members of the $1 trillion club. It is its own biggest AI customer.
While Microsoft pushes its Copilot features to its enterprise software customers, Nvidia must convince companies they need its chips, and cloud providers have to win customers for their compute space, Meta doesn't really sell its AI developments.
It's simply making its products better
Meta's machine-learning AI, which it's been working on for over a decade, got a massive investment boost after Meta released Reels on Instagram and Facebook.
The algorithm is increasingly responsible for what you see on Facebook or Instagram. Meta says AI-recommended content increased overall engagement by 7% on Facebook and 6% on Instagram this year. Considering the average American spends over an hour per day across those two platforms, that's a lot of added minutes. It's also responsible for Reels driving incremental time spent on Instagram and now reaching a revenue-neutral impact for Instagram.
Meta also uses generative AI to help businesses craft more effective advertisements on Facebook and Instagram. It can do anything from suggesting better wording to testing hundreds of variations of an ad to find the optimal choice. Generative AI can help marketers eke out that extra level of conversions to make ads more valuable.
But the biggest developments may be yet to come.
Meta unveiled several new AI features at its Meta Connect conference in September. One of the most promising features was Meta's AI studio for businesses. The feature makes it easy for businesses to create more effective chatbots for WhatsApp and Messenger.
Driving users from Instagram or Facebook to one of Meta's messaging apps is already a $10 billion business, but Zuckerberg thinks messaging could be much bigger. Making it easier for businesses to access the most powerful features of its business messaging services could drive tens of billions more in revenue for the company.
Down the road, it's easy to see Meta incorporating generative AI to make the metaverse more appealing with lifelike avatars and environments. For now, though, it's already using its AI investments to show meaningful revenue growth.
Indeed, Meta's advertising revenue grew 23.5% in the third quarter. That far outpaces Google's 9.5% year-over-year improvement and comes close to Amazon's 25% growth off a much smaller base.
The stock price is really attractive
Despite the stock's strong performance in 2023, investors can still get a deal on Meta's stock. Shares trade for just 22.5 times its earnings estimate for the next 12 months. To put that in perspective, here are the forward PE ratios of everyone else in the $1 trillion club.
COMPANY FORWARD PE
Apple 29.6
Microsoft 32.8
Amazon 54.5
Alphabet 24.1
Nvidia 37.3
Meta 22.5
Table source: author. Data source: YCharts. PE = price to earnings.
I'm not saying any of the members of the $1 trillion club are overvalued (at least not in this article). But Meta's shares look undervalued by comparison. As a leading innovator in AI that's using its development to drive accelerating revenue growth and higher profits, the stock looks poised to hit the milestone again in the near future. Shares will have to climb about 21% to reach $1 trillion, and that looks well within reach for Meta.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adam Levy has positions in Alphabet, Amazon, Apple, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) touted several AI-powered features in its latest iOS update and new iPhone release. It should be no surprise, then, that one of the most promising stocks to join the group with market caps exceeding $1 trillion is also spending heavily to develop artificial intelligence and apply it to its products. "AI will be our biggest investment area in 2024 -- both in engineering and compute resources," he told analysts during Meta's third-quarter earnings call. | Apple (NASDAQ: AAPL) touted several AI-powered features in its latest iOS update and new iPhone release. Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is developing its own large language model to power its services and provides a cloud computing platform for developers to train and run their own AI applications. Pushing generative AI forward Meta CEO Mark Zuckerberg has practically transformed his company from a social media platform provider to an AI innovator. | Apple (NASDAQ: AAPL) touted several AI-powered features in its latest iOS update and new iPhone release. Microsoft (NASDAQ: MSFT) positioned itself as a top choice for AI developers when it increased its investment in OpenAI earlier this year, garnering a 49% stake in the leading AI developer. In fact, there might not be anyone developing an AI as advanced as Meta Platform's (NASDAQ: META), and the market may be underappreciating its potential. | Apple (NASDAQ: AAPL) touted several AI-powered features in its latest iOS update and new iPhone release. Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is developing its own large language model to power its services and provides a cloud computing platform for developers to train and run their own AI applications. Meta also uses generative AI to help businesses craft more effective advertisements on Facebook and Instagram. |
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12176.0 | 2023-12-10 00:00:00 UTC | EV battery startup ONE names Paul Humphries as CEO, replacing founder | AAPL | https://www.nasdaq.com/articles/ev-battery-startup-one-names-paul-humphries-as-ceo-replacing-founder | Dec 10 (Reuters) - Electric-vehicle battery startup Our Next Energy (ONE) said on Sunday that Paul Humphries will be its new CEO effective immediately, replacing Mujeeb Ijaz, who held the post since he founded the company.
Ijaz, a former Apple AAPL.O executive, will serve as vice-chairman of the board and take on the role of chief technology officer following Humphries' appointment, ONE said.
Humphries has also been a member of the ONE Board of Directors since the company was founded in 2020.
The Michigan-based company cut around 25% of its workforce, or 128 employees last month, citing "market conditions" as reason for the layoffs. It added that it is continuing to focus on establishing its gigafactory in Michigan and to develop a North American supply chain for batteries.
The company said in February it had raised $300 million in a Series B funding, valuing it at $1.2 billion.
(Reporting by Rishabh Jaiswal in Bengaluru Editing by Marguerita Choy)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Ijaz, a former Apple AAPL.O executive, will serve as vice-chairman of the board and take on the role of chief technology officer following Humphries' appointment, ONE said. Dec 10 (Reuters) - Electric-vehicle battery startup Our Next Energy (ONE) said on Sunday that Paul Humphries will be its new CEO effective immediately, replacing Mujeeb Ijaz, who held the post since he founded the company. It added that it is continuing to focus on establishing its gigafactory in Michigan and to develop a North American supply chain for batteries. | Ijaz, a former Apple AAPL.O executive, will serve as vice-chairman of the board and take on the role of chief technology officer following Humphries' appointment, ONE said. Dec 10 (Reuters) - Electric-vehicle battery startup Our Next Energy (ONE) said on Sunday that Paul Humphries will be its new CEO effective immediately, replacing Mujeeb Ijaz, who held the post since he founded the company. Humphries has also been a member of the ONE Board of Directors since the company was founded in 2020. | Ijaz, a former Apple AAPL.O executive, will serve as vice-chairman of the board and take on the role of chief technology officer following Humphries' appointment, ONE said. Dec 10 (Reuters) - Electric-vehicle battery startup Our Next Energy (ONE) said on Sunday that Paul Humphries will be its new CEO effective immediately, replacing Mujeeb Ijaz, who held the post since he founded the company. Humphries has also been a member of the ONE Board of Directors since the company was founded in 2020. | Ijaz, a former Apple AAPL.O executive, will serve as vice-chairman of the board and take on the role of chief technology officer following Humphries' appointment, ONE said. Humphries has also been a member of the ONE Board of Directors since the company was founded in 2020. The Michigan-based company cut around 25% of its workforce, or 128 employees last month, citing "market conditions" as reason for the layoffs. |
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12177.0 | 2023-12-10 00:00:00 UTC | Guru Fundamental Report for AAPL | AAPL | https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-26 | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. |
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12178.0 | 2023-12-10 00:00:00 UTC | 49.5% of Warren Buffett's $361 Billion Portfolio Is Invested in 3 Artificial Intelligence (AI) Stocks. And That Number's Getting Bigger. | AAPL | https://www.nasdaq.com/articles/49.5-of-warren-buffetts-%24361-billion-portfolio-is-invested-in-3-artificial-intelligence-ai | Warren Buffett has never been one to follow trends in technology. Nonetheless, his investment portfolio for Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has become heavily weighted toward one of the biggest technology trends of the last decade: artificial intelligence (AI).
Nearly half of Berkshire's $361 billion portfolio is invested in just three AI stocks. What's more, that percentage is getting bigger, as Buffett and his team at Berkshire trim their other stock positions. But this trio has, for the most part, withstood the portfolio culling. All three present excellent investment opportunities and may deserve a spot in your portfolio.
Let's take a closer look at these three Berkshire-backed AI stocks.
1. Apple: 48.8% of Berkshire Hathaway's portfolio
Berkshire Hathaway first bought shares of Apple (NASDAQ: AAPL) in 2016 and has continued to buy shares. Its most recent purchase was in the first quarter of 2023 when Buffett and his team added 20.4 million more shares to bring the total to 915.6 million. Those shares now account for about 48% of Berkshire's investment portfolio.
There's a lot for Buffett to like about Apple. Its combination of hardware, software, and services gives it a strong moat. And that moat isn't just against competitors, as exemplified by the iPhone's 55%-plus market share for smartphones in the United States. Buffett said at Berkshire Hathaway's shareholder meeting earlier this year that people would rather give up their car than their iPhone if they had to choose.
Apple has been a longtime investor in AI, but you might not realize it. The company has a history of focusing on consumer benefits instead of the technology behind how it creates those game-changing features in its products. For example, AI powers lots of new features in the new iOS and WatchOS, such as live voice mail, crash detection, and abnormal ECG detection.
Apple is also starting to invest heavily in the forefront of AI development: generative AI. It reportedly built its own large language model and it's internally testing its own ChatGPT-style chatbot.
As the platform owner, Apple has a tremendous advantage if and when it rolls out a generative AI application like a chatbot. It can build it directly into the native iOS, MacOS, and WatchOS software that over 2 billion people around the world already use. That's a massive advantage that could present new revenue opportunities for Apple or simply make its devices that much more desirable.
With shares trading around 29 times 2024 earnings estimates, Apple stock carries a premium compared to the S&P 500. However, with its massive cash position and share repurchase program, the stock deserves that premium. Investors shouldn't shy away from Buffett's favorite stock.
2. Amazon: 0.4% of Berkshire Hathaway's portfolio
Berkshire Hathaway owns 10 million shares of Amazon (NASDAQ: AMZN) after giving its position a slight trim last quarter. The holding company first bought a stake in early 2019. Buffett previously lamented his inability to get a handle on the power of the Amazon business model and the value of the company as the big reason stopping him from buying the stock earlier.
Amazon has built a strong foundation in AI innovation that can be seen throughout its operations. From product recommendations to supply chain management to its logistics routing, AI is essential to improving Amazon's bottom line, so it has invested heavily in building advanced algorithms. More recently, Amazon integrated more advanced AI into its Alexa voice assistant.
But Amazon is also a big tech company investing in both hardware and software for generative AI. Its cloud computing business, Amazon Web Services, is helping more and more businesses bring AI capabilities to their businesses and data analysis. It invested $4 billion in Anthropic, one of the leading generative AI developers. Anthropic subsequently agreed to use Amazon's Trainium chips to train its large language model in Amazon's cloud.
As the leading enterprise cloud provider, Amazon is in a strong position to capitalize on the growing demand for AI. Despite its high valuation, shares are still attractive because the tech titan is showing improving margins and AI investments give it a lot of potential to outperform analysts' expectations going forward.
3. Snowflake: 0.3% of Berkshire Hathaway's portfolio
Berkshire Hathaway purchased a stake in Snowflake (NYSE: SNOW) just before its IPO in 2020. The 6.13 million shares it acquired have remained untouched since, and they now account for about 0.3% of the company's investment portfolio.
Snowflake has artificial intelligence at its core. It specializes in data lakes, which store unorganized data from companies. It uses AI to digest that information and create insights for enterprises, which can then be retrieved from a data warehouse as needed. Snowflake removes the need for businesses to invest in their own storage and processing and works with all the major public cloud computing providers.
As the amount of data organizations create grows, especially in developing new AI applications, Snowflake's data storage and processing service becomes increasingly valuable. On top of that, Snowflake lets businesses sell their data on its marketplace, which could become a big business as AI developers look for data to feed into their models and applications.
Despite its recent strong price performance, Snowflake stock trades at a great value relative to its historic pricing. Its price-to-sales ratio of 22.9 is below where it started the year, and well below its historic median P/S ratio above 34. As data continues to fuel the AI revolution, Snowflake will play a crucial role in helping businesses make sense of and access that data, driving strong top-line growth for years to come.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple: 48.8% of Berkshire Hathaway's portfolio Berkshire Hathaway first bought shares of Apple (NASDAQ: AAPL) in 2016 and has continued to buy shares. Buffett previously lamented his inability to get a handle on the power of the Amazon business model and the value of the company as the big reason stopping him from buying the stock earlier. From product recommendations to supply chain management to its logistics routing, AI is essential to improving Amazon's bottom line, so it has invested heavily in building advanced algorithms. | Apple: 48.8% of Berkshire Hathaway's portfolio Berkshire Hathaway first bought shares of Apple (NASDAQ: AAPL) in 2016 and has continued to buy shares. Amazon: 0.4% of Berkshire Hathaway's portfolio Berkshire Hathaway owns 10 million shares of Amazon (NASDAQ: AMZN) after giving its position a slight trim last quarter. Snowflake: 0.3% of Berkshire Hathaway's portfolio Berkshire Hathaway purchased a stake in Snowflake (NYSE: SNOW) just before its IPO in 2020. | Apple: 48.8% of Berkshire Hathaway's portfolio Berkshire Hathaway first bought shares of Apple (NASDAQ: AAPL) in 2016 and has continued to buy shares. Apple is also starting to invest heavily in the forefront of AI development: generative AI. Amazon: 0.4% of Berkshire Hathaway's portfolio Berkshire Hathaway owns 10 million shares of Amazon (NASDAQ: AMZN) after giving its position a slight trim last quarter. | Apple: 48.8% of Berkshire Hathaway's portfolio Berkshire Hathaway first bought shares of Apple (NASDAQ: AAPL) in 2016 and has continued to buy shares. There's a lot for Buffett to like about Apple. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Snowflake. |
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12179.0 | 2023-12-10 00:00:00 UTC | Conspiracy theorist Alex Jones reinstated on X after Musk poll | AAPL | https://www.nasdaq.com/articles/conspiracy-theorist-alex-jones-reinstated-on-x-after-musk-poll | By Mrinmay Dey and Jyoti Narayan
Dec 10 (Reuters) - Social media platform X, formerly known as Twitter,on Sunday showed the account of U.S. right-wing conspiracy theorist Alex Jones to have been reinstated as a poll organized by owner Elon Musk backed his return after a ban of nearly five years.
Close to 2 million votes were cast by the time the poll closed, with about 70% voting in favor of Jones' reinstatement.
"The people have spoken and so it shall be," Musk wrote in the reply to the poll that ended on Sunday.
Soon after reappearing on the platform, Jones' account began accumulating followers and currently has about 1 million. He has yet to post anything original, but has reposted two messages.
Jones' account with username "@RealAlexJones" now shows his last original post was on Sept. 6, 2018, the same day the social media platform's previous owners permanently banned his account and website Infowars, saying they had violated its behavior policies.
The ban came weeks after Apple AAPL.O, Alphabet's GOOGL.O YouTube and Facebook META.O took down podcasts and channels from Jones, citing community standards.
Reuters could not verify if X reinstated the Infowars account.
X and Infowars did not respond to a request asking for confirmation on Jones' account. Jones could not be immediately reached.
Right after Musk's takeover of Twitter, the social media platform implemented several modification, including changing its name and revisiting its policies. It also reinstated previously suspended accounts including that of former U.S. President Donald Trump.
The billionaire has since sought to reassure users and advertisers that such a decision would be made with the consideration of a content moderation council composed of people with "widely diverse viewpoints" and no account reinstatements would happen before the council convened.
Separately, Musk in November cursed out advertisers that have fled X over antisemitic content.
Several companies including Comcast CMCSA.O and Walt Disney DIS.N paused their advertisements on X after Musk agreed with a post that falsely claimed that Jewish people were stoking hatred against white people.
(Reporting by Jyoti Narayan and Mrinmay Dey in Bengaluru; Editing by Miral Fahmy, David Goodman, Louise Heavens and Mark Porter)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The ban came weeks after Apple AAPL.O, Alphabet's GOOGL.O YouTube and Facebook META.O took down podcasts and channels from Jones, citing community standards. By Mrinmay Dey and Jyoti Narayan Dec 10 (Reuters) - Social media platform X, formerly known as Twitter,on Sunday showed the account of U.S. right-wing conspiracy theorist Alex Jones to have been reinstated as a poll organized by owner Elon Musk backed his return after a ban of nearly five years. Right after Musk's takeover of Twitter, the social media platform implemented several modification, including changing its name and revisiting its policies. | The ban came weeks after Apple AAPL.O, Alphabet's GOOGL.O YouTube and Facebook META.O took down podcasts and channels from Jones, citing community standards. By Mrinmay Dey and Jyoti Narayan Dec 10 (Reuters) - Social media platform X, formerly known as Twitter,on Sunday showed the account of U.S. right-wing conspiracy theorist Alex Jones to have been reinstated as a poll organized by owner Elon Musk backed his return after a ban of nearly five years. Jones' account with username "@RealAlexJones" now shows his last original post was on Sept. 6, 2018, the same day the social media platform's previous owners permanently banned his account and website Infowars, saying they had violated its behavior policies. | The ban came weeks after Apple AAPL.O, Alphabet's GOOGL.O YouTube and Facebook META.O took down podcasts and channels from Jones, citing community standards. By Mrinmay Dey and Jyoti Narayan Dec 10 (Reuters) - Social media platform X, formerly known as Twitter,on Sunday showed the account of U.S. right-wing conspiracy theorist Alex Jones to have been reinstated as a poll organized by owner Elon Musk backed his return after a ban of nearly five years. Jones' account with username "@RealAlexJones" now shows his last original post was on Sept. 6, 2018, the same day the social media platform's previous owners permanently banned his account and website Infowars, saying they had violated its behavior policies. | The ban came weeks after Apple AAPL.O, Alphabet's GOOGL.O YouTube and Facebook META.O took down podcasts and channels from Jones, citing community standards. By Mrinmay Dey and Jyoti Narayan Dec 10 (Reuters) - Social media platform X, formerly known as Twitter,on Sunday showed the account of U.S. right-wing conspiracy theorist Alex Jones to have been reinstated as a poll organized by owner Elon Musk backed his return after a ban of nearly five years. Jones' account with username "@RealAlexJones" now shows his last original post was on Sept. 6, 2018, the same day the social media platform's previous owners permanently banned his account and website Infowars, saying they had violated its behavior policies. |
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12180.0 | 2023-12-10 00:00:00 UTC | U.S. Money Supply Is Shrinking the Most Since the Great Depression. Does It Spell Doom for the Stock Market in 2024? | AAPL | https://www.nasdaq.com/articles/u.s.-money-supply-is-shrinking-the-most-since-the-great-depression.-does-it-spell-doom-for | Predictions about how stocks will perform in the new year are already beginning to circulate. Some think the prospects should be good since the S&P 500 typically rises during U.S. presidential election years. Others foresee a mild recession on the way, which would likely cause stocks to fall.
But perhaps the most intriguing prognostications dive into especially arcane economic waters. Some point out (correctly) that the U.S. money supply is shrinking the most since the Great Depression. Does this spell doom for the stock market in 2024?
Image source: Getty Images.
Plunging money supply
Money supply is simply the total amount of money in circulation. The two most common ways to measure money supply are called M1 and M2. M1 is the total amount of money held by the public in cash, coins, and traveler's checks and in banks, regular savings accounts, and credit unions. M2 is M1 plus money held in short-term time deposits such as certificates of deposit (CDs) and in money market funds.
Economists closely track the money supply. And the U.S. money supply is indeed shrinking quite dramatically.
US M2 Money Supply YoY data by YCharts
The year-over-year change in M2 money supply is now negative for the first time in decades. But the chart shown above only goes back to the 1960s. The current U.S. money supply shrinkage reflects the steepest decline since the Great Depression of the 1930s.
Doom and gloom for 2024?
There are several implications for a shrinking U.S. money supply. Interest rates rise. Economic growth slows. Unemployment increases. If you think that none of those sound great for the U.S. economy or the stock market, you're right.
U.S. money supply has declined by 2% or more only four times since 1870 other than the current contraction. In each of those previous cases, a major U.S. economic downturn followed. It's understandable why some think that the current money supply shrinkage portends doom and gloom for the stock market in 2024.
However, such dire predictions could be dead wrong. Goldman Sachs economist Manual Abecasis wrote in a report earlier this year that measures such as M2 money supply haven't been reliable in forecasting what the economy will do for a long time. Things are different now, according to Abecasis, because of major changes that have reduced the demand for cash.
George Washington University economics professor Pao-Lin Tien is on the same page as Abecasis. He told Marketplace in June that the "connection between money stock [supply] and economic activity has been declining over time." Tien pointed out, "These days, very few of us carry cash."
The reality is that cash is no longer king. Physical currency has been replaced significantly by credit cards and digital payments such as Apple Pay, Cash App, and Venmo. Money supply still matters -- just not nearly as much as it once did.
This time it's different
So does the shrinking U.S. money supply spell doom for the stock market in 2024? I don't think so. I usually cringe when I hear the four words: "This time it's different." However, there's a good argument that this time truly is different than the past cases when the U.S. money supply contracted.
However, I wouldn't rule out the possibility that stocks could fall next year. There are plenty of other potential culprits that could cause the stock market to stumble. On the other hand, I won't be surprised if the market rises with continued economic growth, relatively mild unemployment, moderating inflation, and stable (or perhaps even lower) interest rates.
No one knows for sure whether 2024 will bring a boom or doom for stocks. The one prediction that I can make with confidence about the stock market is that it will go up -- over the long term.
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Keith Speights has positions in Apple. The Motley Fool has positions in and recommends Apple and Goldman Sachs Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | M1 is the total amount of money held by the public in cash, coins, and traveler's checks and in banks, regular savings accounts, and credit unions. Goldman Sachs economist Manual Abecasis wrote in a report earlier this year that measures such as M2 money supply haven't been reliable in forecasting what the economy will do for a long time. On the other hand, I won't be surprised if the market rises with continued economic growth, relatively mild unemployment, moderating inflation, and stable (or perhaps even lower) interest rates. | The current U.S. money supply shrinkage reflects the steepest decline since the Great Depression of the 1930s. It's understandable why some think that the current money supply shrinkage portends doom and gloom for the stock market in 2024. This time it's different So does the shrinking U.S. money supply spell doom for the stock market in 2024? | Plunging money supply Money supply is simply the total amount of money in circulation. It's understandable why some think that the current money supply shrinkage portends doom and gloom for the stock market in 2024. This time it's different So does the shrinking U.S. money supply spell doom for the stock market in 2024? | Plunging money supply Money supply is simply the total amount of money in circulation. This time it's different So does the shrinking U.S. money supply spell doom for the stock market in 2024? On the other hand, I won't be surprised if the market rises with continued economic growth, relatively mild unemployment, moderating inflation, and stable (or perhaps even lower) interest rates. |
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12181.0 | 2023-12-10 00:00:00 UTC | A Bull Market Is Coming: 3 Top Stocks to Buy Before the End of the Year | AAPL | https://www.nasdaq.com/articles/a-bull-market-is-coming%3A-3-top-stocks-to-buy-before-the-end-of-the-year | Last year, the three major indexes slipped into bear territory, and ever since, the question on everyone's mind has been this: When will the next bull market start? That's impossible to answer, even in a rising market such as the one we've known this year. To officially declare a bull market from this point, indexes must reach a new high. And that hasn't happened yet.
So, how can we be so sure a bull market is on the way? Because history shows us bear environments always lead to these periods of expansion. It's just a matter of time. And while we wait, we can prepare by buying stocks that generally excel in a strong market environment. So, as you get your portfolio ready for the new investing year, here are three top stocks to buy -- to position yourself for a potential bull market win.
Image source: Getty Images.
1. Shopify
Even if you've never heard of Shopify (NYSE: SHOP), you probably have contact with the company on a daily basis. That's because Shopify helps many of your favorite e-commerce companies operate their online stores -- providing a variety of services from creating the website to tracking sales and managing inventory.
Shopify generates revenue in part through services to these clients -- including payment processing fees. So, when clients' revenue climbs, this is great news for Shopify. Most recently, Shopify said its merchants' Black Friday-Cyber Monday sales reached a record high of more than $9 billion. It's also important to note that Shopify is the e-commerce software market leader, with 28% share, according to Statista.
The e-commerce giant has demonstrated a solid growth track record, and in the most recent quarter gave us reason to believe the growth will continue. Revenue and gross profit advanced in the double digits, and the company was free cash flow positive for the fourth straight quarter.
Though Shopify has soared about 100% this year, there's still plenty of room for this stock to rise over the long term -- and especially in a bull market.
2. Etsy
If you're shopping for gifts these days, you may have stumbled across Etsy (NASDAQ: ETSY), a seller of handmade items. But one of the biggest Etsy deals may actually be Etsy stock.
Here's why. First, this company's capital light structure means it doesn't have to invest heavily to grow its business. For example, Etsy sellers run their own shops and take care of stocking and shipping their wares -- so Etsy doesn't have to invest in storage and transport. This capital light structure makes it possible for Etsy to transform 90% of its adjusted EBITDA into free cash flow.
Second, Etsy has managed to keep customers coming back even through tough economic times. This year, habitual customers stabilized at 7 million, and active customers reached a record high of 92 million. The loyalty of customers offers us reason to be confident about future revenue. I also like the fact that Etsy is profitable and has about $1.1 billion in cash.
Meanwhile, the shares trade for 16 times forward earnings estimates, which looks dirt cheap for this solid e-commerce player.
3. Apple
Apple (NASDAQ: AAPL) has a growth track record that speaks for itself. The company has increased key financial metrics, such as earnings and return on invested capital, over time.
AAPL Revenue (Annual) data by YCharts
This is thanks to top products such as the iPhone and Apple Watch, but recently, another area has stood out. And that's services. Now that Apple has built up such a huge user base, it can keep the revenue flowing in by selling services to them. That's exactly what the company has been doing, and it may just be Apple's next big growth driver.
By services, I mean anything from digital content to cloud storage. In the most recent quarter, services revenue reached a record high -- and this momentum is likely to continue thanks to more than 1 billion paid subscriptions.
Apple has what it takes to perform in bear markets and bull markets due to its moat, or competitive advantage. And Apple's moat is its brand strength, with most buyers of Apple products eagerly waiting for the next iPhone or Mac. But, clearly, in a strong market environment, Apple's earnings and shares can truly thrive, making it a top bull market buy.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AAPL Revenue (Annual) data by YCharts This is thanks to top products such as the iPhone and Apple Watch, but recently, another area has stood out. Apple Apple (NASDAQ: AAPL) has a growth track record that speaks for itself. That's because Shopify helps many of your favorite e-commerce companies operate their online stores -- providing a variety of services from creating the website to tracking sales and managing inventory. | Apple Apple (NASDAQ: AAPL) has a growth track record that speaks for itself. AAPL Revenue (Annual) data by YCharts This is thanks to top products such as the iPhone and Apple Watch, but recently, another area has stood out. In the most recent quarter, services revenue reached a record high -- and this momentum is likely to continue thanks to more than 1 billion paid subscriptions. | Apple Apple (NASDAQ: AAPL) has a growth track record that speaks for itself. AAPL Revenue (Annual) data by YCharts This is thanks to top products such as the iPhone and Apple Watch, but recently, another area has stood out. So, as you get your portfolio ready for the new investing year, here are three top stocks to buy -- to position yourself for a potential bull market win. | Apple Apple (NASDAQ: AAPL) has a growth track record that speaks for itself. AAPL Revenue (Annual) data by YCharts This is thanks to top products such as the iPhone and Apple Watch, but recently, another area has stood out. For example, Etsy sellers run their own shops and take care of stocking and shipping their wares -- so Etsy doesn't have to invest in storage and transport. |
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12182.0 | 2023-12-10 00:00:00 UTC | My Top Stock to Buy Before the End Of 2023 That Could Create Generational Wealth | AAPL | https://www.nasdaq.com/articles/my-top-stock-to-buy-before-the-end-of-2023-that-could-create-generational-wealth | After passing $3 trillion in market cap on Dec. 5, Apple (NASDAQ: AAPL) stock is within 3% of its all-time high. Buying Apple decades ago produced unbelievable gains. But even more recent investors, like Warren Buffett-led Berkshire Hathaway, have seen market-crushing returns in a span of just seven years.
Once a company gets to a certain size, it can become difficult to support future growth. Going from a $1 trillion market cap to a $3 trillion market cap is one thing. Producing the same percentage gain by going from $3 trillion to $9 trillion is something we have never seen before and is hard to comprehend.
Apple stock may not triple anytime soon. But over time, it still has what it takes to build generational wealth. Here's why the tech stock is worth buying now.
Image source: Getty Images.
Digesting weak results
Apple is one of the few companies that can post weak results over the short term without damaging the investment thesis one bit -- especially if the weak results are a result of industrywide slowdowns and cyclical factors rather than a shift in perception about Apple's products and services or its brand.
AAPL Revenue (Annual) data by YCharts.
Apple's revenue, net income, and free cash flow all declined between fiscal 2022 and 2023. And yet, the stock is up about 50% year to date. You would be hard-pressed to find a company that grew by more than a trillion dollars in value in a single year despite posting negative growth. And yet, Apple stock still isn't that expensive, sporting a price-to-earnings ratio of 31.6.
Betting on the future
Apple's performance this year shows that the market expects the company to have no problem returning to growth. And there's reason to believe that Apple can become an even higher-quality business in the future thanks to the growth of its services segment.
Apple's services include Apple Pay, Apple TV+, Apple Podcasts, Apple Music, and more. Apple's services are higher-margin (typically around double the gross margin) than its physical products like an iPhone or other device. And they enhance the value of Apple's suite of products since many services are either free or relatively low-cost.
Services are a way for Apple to generate more sales from its core customer base. Expanding the depth of the ecosystem (through more services) and the breadth of the ecosystem (through more products) is a brilliant business model that should serve Apple well for decades to come.
The power of buybacks
Apple's ace in the hole for growing its earnings per share (EPS) no matter the market cycle is buybacks. Apple's relentless buyback program continues to generate value for shareholders. By reducing the outstanding share count, each share of Apple gets a higher percentage of earnings, which makes the stock a better value. Over time, buybacks can have a major impact on earnings.
For example, Apple has grown its net income by 145.5% over the last 10 years. But its diluted EPS is up 280.2% thanks to buybacks.
AAPL EPS Diluted (Annual) data by YCharts.
Over the last 10 years, buybacks have been just as important to Apple's EPS growth as the operations of the business have been.
Apple's deep pockets and dry powder act as a cushion in the event of a market sell-off. If Apple stock falls by quite a bit, Apple can take advantage of that volatility by swooping in and buying shares. If Apple stock goes on a big run like it did this year, Apple is still there to buy its own stock. Investors can be confident that Apple is by their side no matter what the market throws at them.
Apple's reliability makes it worth the price
When facing the prospect of investing in a stock like Apple that has been going up for so long and is currently around the highest it has ever been, it's a good idea to ask whether the company's growth is sustainable, if it's best days are behind it, and what is stopping the company from delivering market-beating returns in the future.
Apple has the market positioning and loyal customer base to avoid giving any ground to competition. It also has the cash flow to make acquisitions, accelerate its organic growth, and buy back its own stock to boost earnings per share. Growing its services business will improve Apple's overall margins and make it an even higher-quality business.
Out of all the big tech stocks, Apple stands out as having the lowest risk and maybe a potentially lower reward. But it also stands the best chance at producing generational wealth over time because of its wide moat and impeccable suite of products and services. Even with a higher-than-historic valuation, Apple stock is worth buying in December.
Should you invest $1,000 in Apple right now?
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | After passing $3 trillion in market cap on Dec. 5, Apple (NASDAQ: AAPL) stock is within 3% of its all-time high. AAPL Revenue (Annual) data by YCharts. AAPL EPS Diluted (Annual) data by YCharts. | After passing $3 trillion in market cap on Dec. 5, Apple (NASDAQ: AAPL) stock is within 3% of its all-time high. AAPL Revenue (Annual) data by YCharts. AAPL EPS Diluted (Annual) data by YCharts. | After passing $3 trillion in market cap on Dec. 5, Apple (NASDAQ: AAPL) stock is within 3% of its all-time high. AAPL Revenue (Annual) data by YCharts. AAPL EPS Diluted (Annual) data by YCharts. | After passing $3 trillion in market cap on Dec. 5, Apple (NASDAQ: AAPL) stock is within 3% of its all-time high. AAPL Revenue (Annual) data by YCharts. AAPL EPS Diluted (Annual) data by YCharts. |
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12183.0 | 2023-12-09 00:00:00 UTC | 3 Growth Stocks Primed for a 2024 Breakout | AAPL | https://www.nasdaq.com/articles/3-growth-stocks-primed-for-a-2024-breakout | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Growth stocks are back on the menu. The past year saw investors cycle portfolios through fixed-income offerings, dividend stocks, and value stocks in rapid succession. But renewed bullish sentiment, boosted by better-than-expected economic conditions, means investors are looking forward to a rate hike pause (if not outright cut) which bodes well for growth stocks in 2024.
Generally, if you want the best growth stock opportunity, look to small caps. The Russell 2000 didn’t perform as well as its large-cap cousin the S&P 500 this year as small-caps bore the brunt of bearish fear. But those same stocks could bounce back fastest as we cross into 2024. If you do want to hold a stabler growth stock, though, be careful — some of the top tech stocks are grossly overvalued, so balance prospects with pricing before pulling the trigger.
AST SpaceMobile (ASTS)
Source: Andrey Suslov / Shutterstock.com
AST SpaceMobile (NASDAQ:ASTS) is one growth stock priming itself early for a 2024 breakout. Shares surged 25% over the past month, though little new news came to the fore. Investors are simply very bullish on the prospects for this space stock.
The company marked a major milestone in September after completing, in conjunction with AT&T (NYSE:T), the world’s first satellite-enabled 5G call from unmodified cell phones. While mega-firms like SpaceX are making global Internet connectivity their space-based goal, AST SpaceMobile sets its sights on a more urgent and pressing need — reliable cell connectivity in remote and rural areas that doesn’t rely on pricy satphones.
That market, potential consumers too far from cell coverage, is more than 1 billion. That’s a massive market and one that AST SpaceMobile is aggressively targeting as one of the few space-based cell providers racing to market.
AST SpaceMobile plans to launch its first five commercial satellites in 2024. If all goes according to plan, this growth stock could go stratospheric.
RocketLab (RKLB)
Source: T. Schneider / Shutterstock.com
Space is set to be a $1 trillion industry, so it’s no wonder I’m including RocketLab (NASDAQ:RKLB) as another growth stock ready to rocket in 2024. The company’s projects mark a perfect blend of scientific research and commercial productization, setting itself up for a diverse client base and frequent launches.
This week, the firm inked a deal with the Korea Advance Institute of Science and Technology to send an observational research satellite into orbit. RocketLab’s 2024 launch docket is already full, and a successful year will set the growth stock up for stratospheric growth in 2024 and beyond.
The company’s stock dipped earlier in the year after its first satellite launch failure in more than two years. Shares trade at nearly half of pre-failure pricing, but there’s been little since then to explain the seemingly bearish sentiment. Investors looking for a moonshot stock should start accumulating now while it’s still cheap.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) has strong staying power, making it a mature growth stock ready for a strong 2024. After hitting a $1 trillion market cap, per-share pricing remains largely unchanged. Considering the year’s volatility and reduced consumer confidence, coupled with calls of overvaluation, Apple’s stability bodes well for 2024.
Holiday sales mark an obvious benefit to Apple’s bottom line in the short term, but the company’s rapid penetration into Asian markets assures its staying power. Analyst Dan Ives shook off claims that Asian markets would falter this year, saying he’s seeing consistent demand and sales throughout China and elsewhere. Apple’s market share in this critical region consistently rose over the past few years, with 2023 as a slim exception, but the company holds just 16% of the total addressable market. This means there’s plenty of room for further upside for this growth stock.
Despite its steep price, analysts remain hot on Apple stock. 74% of polled analysts mark Apple as a Buy, with just one calling for investors to Sell. Consensus indicates per-share pricing fair value is closer to $200, so there’s still room for Apple to grow.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work.
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The post 3 Growth Stocks Primed for a 2024 Breakout appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) has strong staying power, making it a mature growth stock ready for a strong 2024. But renewed bullish sentiment, boosted by better-than-expected economic conditions, means investors are looking forward to a rate hike pause (if not outright cut) which bodes well for growth stocks in 2024. The company’s projects mark a perfect blend of scientific research and commercial productization, setting itself up for a diverse client base and frequent launches. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) has strong staying power, making it a mature growth stock ready for a strong 2024. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Growth stocks are back on the menu. AST SpaceMobile (ASTS) Source: Andrey Suslov / Shutterstock.com AST SpaceMobile (NASDAQ:ASTS) is one growth stock priming itself early for a 2024 breakout. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) has strong staying power, making it a mature growth stock ready for a strong 2024. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Growth stocks are back on the menu. AST SpaceMobile (ASTS) Source: Andrey Suslov / Shutterstock.com AST SpaceMobile (NASDAQ:ASTS) is one growth stock priming itself early for a 2024 breakout. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) has strong staying power, making it a mature growth stock ready for a strong 2024. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Growth stocks are back on the menu. Investors are simply very bullish on the prospects for this space stock. |
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12184.0 | 2023-12-09 00:00:00 UTC | 3 Great Foreign Companies to Invest in Right Now | AAPL | https://www.nasdaq.com/articles/3-great-foreign-companies-to-invest-in-right-now-13 | Not all stocks traded on U.S. exchanges are actually U.S. companies. In fact, some of the most successful stocks on the market are foreign, but they see the U.S. as a place to raise funds and get exposure to another class of investor.
If you're looking for foreign companies to own, Spotify (NYSE: SPOT), MercadoLibre (NASDAQ: MELI), and Taiwan Semiconductor (NYSE: TSM) stand a cut above the rest.
1. Spotify
You probably know Spotify as the music streaming company, but it's becoming much more than that. It has invested heavily in podcasts over the past five years, and has now added audiobook time to premium subscriptions. Spotify is the business that wants to "own your ears," and that's what differentiates it from competitors like Apple and YouTube that have bigger businesses outside of music.
The user base is growing quickly, with premium subscribers up 16% in the third quarter of 2023 to 226 million and ad-supported subscribers growing 32% to 361 million. And that forms the base for both a growing premium business as well as an attractive advertising business, which is where Spotify's upside lies.
There aren't a lot of companies that can go head to head with Apple and come out on top, but Spotify has done that in both music and podcasts. And recent cost cuts could help drive rapid financial improvement in 2024.
2. MercadoLibre
Latin America is adopting both e-commerce and fintech products at a rapid rate, and MercadoLibre is leading the way in both. Over the past five years, the company has grown revenue 730%, and it's gone from breakeven to highly profitable in just the last two years.
MELI Revenue (TTM) data by YCharts
Like Amazon in the U.S., MercadoLibre has a large infrastructure lead over competitors in e-commerce, and its fintech products are both integrated with its e-commerce platform as well as built into other sellers.
The stock is expensive, with the enterprise value near 5 times sales and a price to earnings ratio of 49 times, but the growth and profitability are too good to ignore, and this is one of the best ways to play growth in Latin America long-term.
3. Taiwan Semiconductor
Semiconductors have become critical to the world, and Taiwan Semiconductor is arguably the most importer and manufacturer there is. It makes AI chips for NVIDIA and the chips inside iPhones and Macs -- even Intel is buying chips from Taiwan Semiconductor.
The beauty in Taiwan Semiconductor's business model is that it's a fabricator that isn't vertically integrated into designing and selling its own chips. It's just a third party manufacturing facility for other companies. This has allowed TSMC to build the most advanced manufacturing facilities in the world and spread the upfront cost across hundreds of customers.
It's hard to overstate how profitable this model is, but the net income approaching 50% of revenue that you see below gives an idea of how well the company is doing.
TSM Revenue (TTM) data by YCharts
This is one of the most important companies in the world, and investors are getting a reasonable value in the stock. Shares trade for 16x earnings and we are in a down cycle, so there's upside as more and more companies build custom chips for their tech products.
Great foreign companies you can buy in the U.S.
None of these companies are based in the U.S., but they tapped U.S. markets to go public, which is why you can buy shares. And with lots of exposure to international markets, they're great ways to get geographic diversity in your portfolio.
Find out why Spotify Technology is one of the 10 best stocks to buy now
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The beauty in Taiwan Semiconductor's business model is that it's a fabricator that isn't vertically integrated into designing and selling its own chips. This has allowed TSMC to build the most advanced manufacturing facilities in the world and spread the upfront cost across hundreds of customers. *Stock Advisor returns as of December 4, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. | If you're looking for foreign companies to own, Spotify (NYSE: SPOT), MercadoLibre (NASDAQ: MELI), and Taiwan Semiconductor (NYSE: TSM) stand a cut above the rest. The Motley Fool has positions in and recommends Alphabet, Apple, MercadoLibre, Spotify Technology, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. | If you're looking for foreign companies to own, Spotify (NYSE: SPOT), MercadoLibre (NASDAQ: MELI), and Taiwan Semiconductor (NYSE: TSM) stand a cut above the rest. Great foreign companies you can buy in the U.S. None of these companies are based in the U.S., but they tapped U.S. markets to go public, which is why you can buy shares. The Motley Fool has positions in and recommends Alphabet, Apple, MercadoLibre, Spotify Technology, and Taiwan Semiconductor Manufacturing. | MercadoLibre Latin America is adopting both e-commerce and fintech products at a rapid rate, and MercadoLibre is leading the way in both. TSM Revenue (TTM) data by YCharts This is one of the most important companies in the world, and investors are getting a reasonable value in the stock. The Motley Fool has positions in and recommends Alphabet, Apple, MercadoLibre, Spotify Technology, and Taiwan Semiconductor Manufacturing. |
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12185.0 | 2023-12-09 00:00:00 UTC | This Is the Most Important AI Company You've Never Heard Of | AAPL | https://www.nasdaq.com/articles/this-is-the-most-important-ai-company-youve-never-heard-of | Artificial intelligence (AI) is the talk of the market, and a handful of stocks, like Nvidia (NASDAQ: NVDA) and Microsoft (NASDAQ: MSFT), have jumped on the year's AI developments. But there's one company that's more critical to AI than you might think.
In this video, Travis Hoium covers Taiwan Semiconductor's (NYSE: TSM) role in the industry and shows why it's one of the safer ways to play AI development today.
*Stock prices used were end-of-day prices of Dec. 6, 2023. The video was published on Dec. 8, 2023.
Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now?
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In this video, Travis Hoium covers Taiwan Semiconductor's (NYSE: TSM) role in the industry and shows why it's one of the safer ways to play AI development today. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends 10x Genomics, Amazon, Apple, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. | Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Taiwan Semiconductor Manufacturing wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends 10x Genomics, Amazon, Apple, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. | Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Taiwan Semiconductor Manufacturing wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends 10x Genomics, Amazon, Apple, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. | In this video, Travis Hoium covers Taiwan Semiconductor's (NYSE: TSM) role in the industry and shows why it's one of the safer ways to play AI development today. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. The Motley Fool has positions in and recommends 10x Genomics, Amazon, Apple, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. |
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12186.0 | 2023-12-09 00:00:00 UTC | 5 No-Brainer Stocks to Buy Before 2024 | AAPL | https://www.nasdaq.com/articles/5-no-brainer-stocks-to-buy-before-2024 | Right now, you may be preparing for more than the holidays. You might also be looking at your portfolio with the idea of getting it ready for the new year. It's impossible to predict which stocks will rise or fall or what direction the entire market will take, of course -- but there is one thing we can do to prepare for any situation. And that's add some high-quality stocks with solid track records and bright long-term prospects to our portfolios.
These players should serve you well over time, making them excellent choices for long-term investors -- and no-brainer buys before the new year. Let's check out five top stocks that could boost your portfolio next year and over the long run.
Image source: Getty Images.
1. Amazon
Amazon (NASDAQ: AMZN) is a winner in two high-growth markets: e-commerce and cloud computing. The company's leadership in those areas is set to last thanks to its investments and innovation. For example, in e-commerce, it's worked to make delivery faster and more efficient and to add benefits to its Prime subscription services. In cloud computing, it's invested in the hot growth area of artificial intelligence (AI) to serve clients eager to add AI to their latest projects.
The market giant also has a solid track record of growth, and after a recent tough spell due to the weak economic environment, Amazon showed it could manage difficult times too. In fact, Amazon chose this time to improve its cost structure -- and the efforts are bearing fruit. In the most recent quarter, the company reported gains across various financial metrics, from net sales to free cash flow.
Considering these elements, today, at 54 times forward earnings estimates, big-time growth stock Amazon looks cheap compared to its forward PE ratio of around 90 at the close of 2021.
2. Coca-Cola
One reason to love Coca-Cola (NYSE: KO) is its long track record of dividend growth. The world's largest non-alcoholic beverage maker is a Dividend King, meaning it's lifted its dividend for more than 50 consecutive years. Why is that important? Because it shows rewarding shareholders is central to Coca-Cola's strategy and it's likely to continue along this path.
Coca-Cola's $10 billion in free cash flow also shows it has what it takes to maintain passive income growth for its shareholders.
Though Coca-Cola's earnings may not increase in leaps and bounds like those of a younger and smaller company, you can count on slower -- but generally sure -- earnings growth over time. And Coca-Cola's brand strength has helped it to deliver these gains, even in challenging economic environments. In the most recent quarter, the beverage maker reported rising revenue and earnings per share -- and lifted full-year revenue guidance.
Today, Coca-Cola shares trade for 21 times forward earnings estimates, a bargain for all of these strengths you'll appreciate year after year.
3. Home Depot
Home Depot (NYSE: HD) isn't offering investors the same tremendous growth it did during the earlier days of the pandemic -- when consumers spent a lot of time at home and focused on home improvement projects there. Today, the company faces the headwinds of a tough housing market and higher interest rates. And that's weighed on growth.
But it's important to remember Home Depot increased revenue by $46 billion over the past three years, and the company has a long track record of earnings growth. So, today's slowdown is merely a pause -- and not a reason to flee shares of this market giant.
Home Depot generates sales from do-it-yourself customers as well as professionals, and the pros represent a significant growth opportunity over time -- with an addressable market of about $475 billion. And Home Depot has invested in gaining that market share through efforts such as creating a customized online platform and a special sales force.
Like Coca-Cola, Home Depot trades for a bargain basement 21 times forward earnings estimates.
4. Chewy
Pet parents like Chewy (NYSE: CHWY) -- and so should you, thanks to this young growth company's earnings progress so far. Last year, the e-commerce site for pet products reached profitability and has increased sales throughout this year.
Chewy also saw a double-digit increase in active customer spend in the most recent quarter -- and in spite of a difficult economic environment, Chewy's active customers only declined about 1%. And here's some good news for the long term: Chewy has expanded into Canada, a country it says has the market share and profit potential of the U.S. In more good news, Chewy could do this without a significant initial investment due to the strength of its existing platform. This could represent a huge catalyst for share performance down the road.
Chewy shares haven't reflected the company's progress so far or these extremely bright prospects; they've dropped about 48% this year, but don't let that scare you away. Instead, consider this a buying opportunity for an e-commerce company with significant long-term potential.
5. Apple
Apple's (NASDAQ: AAPL) brand strength makes it a stock you probably won't ever want to sell. The company's far from being a new kid on the block, yet its products continue to be favorites around the world -- and ones fans can't resist buying. This offers Apple pricing power, meaning it can easily lift prices without losing out on sales.
The technology and consumer goods giant can also count on another source of revenue -- and this one may just be getting started. I'm talking about services revenue. Apple offers a variety of them, from digital content to payment services, which generate recurring revenue for the company. In fact, thanks to more than 1 billion paid subscribers, Apple's services revenue reached a record in the most recent quarter.
You might expect to pay a fortune for such a stock, but Apple shares trade for only about 29 times forward earnings estimates right now. And this truly makes the market giant a no-brainer buy to add to your year-end shopping list.
Should you invest $1,000 in Amazon right now?
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon and Home Depot. The Motley Fool has positions in and recommends Amazon, Apple, Chewy, and Home Depot. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Apple's (NASDAQ: AAPL) brand strength makes it a stock you probably won't ever want to sell. The market giant also has a solid track record of growth, and after a recent tough spell due to the weak economic environment, Amazon showed it could manage difficult times too. But it's important to remember Home Depot increased revenue by $46 billion over the past three years, and the company has a long track record of earnings growth. | Apple Apple's (NASDAQ: AAPL) brand strength makes it a stock you probably won't ever want to sell. The market giant also has a solid track record of growth, and after a recent tough spell due to the weak economic environment, Amazon showed it could manage difficult times too. In the most recent quarter, the beverage maker reported rising revenue and earnings per share -- and lifted full-year revenue guidance. | Apple Apple's (NASDAQ: AAPL) brand strength makes it a stock you probably won't ever want to sell. Home Depot Home Depot (NYSE: HD) isn't offering investors the same tremendous growth it did during the earlier days of the pandemic -- when consumers spent a lot of time at home and focused on home improvement projects there. But it's important to remember Home Depot increased revenue by $46 billion over the past three years, and the company has a long track record of earnings growth. | Apple Apple's (NASDAQ: AAPL) brand strength makes it a stock you probably won't ever want to sell. Today, Coca-Cola shares trade for 21 times forward earnings estimates, a bargain for all of these strengths you'll appreciate year after year. But it's important to remember Home Depot increased revenue by $46 billion over the past three years, and the company has a long track record of earnings growth. |
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12187.0 | 2023-12-08 00:00:00 UTC | American Micro Devices Stock Spikes Thanks to Artificial Intelligence (AI), Yet There's More to the Story | AAPL | https://www.nasdaq.com/articles/american-micro-devices-stock-spikes-thanks-to-artificial-intelligence-ai-yet-theres-more | In today's video, I discuss recent AI updates affecting Advanced Micro Devices (NASDAQ: AMD). Check out the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were the market prices of Dec. 7, 2023. The video was published on Dec. 7, 2023.
Should you invest $1,000 in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Advanced Micro Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Jose Najarro has positions in Advanced Micro Devices, Nvidia, and Qualcomm. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Qualcomm. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In today's video, I discuss recent AI updates affecting Advanced Micro Devices (NASDAQ: AMD). Check out the short video to learn more, consider subscribing, and click the special offer link below. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Qualcomm. | Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Advanced Micro Devices wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Jose Najarro has positions in Advanced Micro Devices, Nvidia, and Qualcomm. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. | Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Advanced Micro Devices wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Jose Najarro has positions in Advanced Micro Devices, Nvidia, and Qualcomm. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. | The Stock Advisor service has nearly quadrupled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Jose Najarro has positions in Advanced Micro Devices, Nvidia, and Qualcomm. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Qualcomm. |
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12188.0 | 2023-12-08 00:00:00 UTC | Apple (AAPL) Rises Higher Than Market: Key Facts | AAPL | https://www.nasdaq.com/articles/apple-aapl-rises-higher-than-market%3A-key-facts-0 | Apple (AAPL) closed the latest trading day at $195.71, indicating a +0.74% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.41% for the day. Meanwhile, the Dow experienced a rise of 0.36%, and the technology-dominated Nasdaq saw an increase of 0.45%.
Shares of the maker of iPhones, iPads and other products have appreciated by 6.5% over the course of the past month, outperforming the Computer and Technology sector's gain of 5.9% and the S&P 500's gain of 4.91%.
Market participants will be closely following the financial results of Apple in its upcoming release. It is anticipated that the company will report an EPS of $2.08, marking a 10.64% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $117.31 billion, indicating a 0.13% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.56 per share and revenue of $393.42 billion, which would represent changes of +7.01% and +2.65%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Apple. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.22% upward. Apple currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Apple is presently being traded at a Forward P/E ratio of 29.6. This indicates a premium in contrast to its industry's Forward P/E of 11.72.
Also, we should mention that AAPL has a PEG ratio of 2.68. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Mini computers industry had an average PEG ratio of 2.68 as trading concluded yesterday.
The Computer - Mini computers industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) closed the latest trading day at $195.71, indicating a +0.74% change from the previous session's end. Also, we should mention that AAPL has a PEG ratio of 2.68. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. | Apple (AAPL) closed the latest trading day at $195.71, indicating a +0.74% change from the previous session's end. Also, we should mention that AAPL has a PEG ratio of 2.68. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. | Apple (AAPL) closed the latest trading day at $195.71, indicating a +0.74% change from the previous session's end. Also, we should mention that AAPL has a PEG ratio of 2.68. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. | Apple (AAPL) closed the latest trading day at $195.71, indicating a +0.74% change from the previous session's end. Also, we should mention that AAPL has a PEG ratio of 2.68. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. |
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12189.0 | 2023-12-08 00:00:00 UTC | Just 3 of the "Magnificent Seven" Have Outperformed the S&P 500 Since 2022. Here's the One I'd Buy for 2024 and 2025. | AAPL | https://www.nasdaq.com/articles/just-3-of-the-magnificent-seven-have-outperformed-the-sp-500-since-2022.-heres-the-one-id | The S&P 500 has produced a total return of over 20% for investors in 2023, but that growth has come almost entirely from just a handful of stocks.
The "Magnificent Seven" -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META) and Tesla (NASDAQ: TSLA) -- have produced market-trouncing returns in 2023. And since they all have massive market caps, they have had an outsize impact on the cap-weighted S&P 500 index.
But just three of those seven have produced returns exceeding the S&P 500's total return (a 1% loss) since the start of last year. The other four have all lost more money for investors than a simple S&P 500 index fund.
Here are the three outperformers and the one stock I would buy for outperformance in 2024 and 2025.
"Magnificent Seven" total return vs S&P 500; data by YCharts.
Nvidia: 54.9% total return since Jan. 1, 2022
Nvidia is by far the best-performer of the Magnificent Seven since the start of 2022.
That's thanks almost entirely to its 2023 performance. The stock's price was cut in half in 2022, down more than 60% at one point. But shares have rocketed back in 2023, up more than 200% since the start of the year.
The big growth driver behind Nvidia has been surging demand for artificial intelligence (AI). Its graphics processing units (GPUs) are essential hardware for training advanced AI algorithms responsible for generative AI applications like OpenAI's ChatGPT or Dall-E.
Nvidia tripled its revenue in its most recent quarter, and management expects it to grow even faster in the current quarter. And with the premium pricing it's demanding for its data center AI chips, it's seeing gross margin expand as well.
That said, the market expectations are extremely high for Nvidia. A single misstep, product setback, or new competitor could send the share price tumbling. So while it could continue to outperform over the next two years, it's not getting my money.
Microsoft: 12.2% total return since Jan. 1, 2022
Microsoft's 12.2% total return since the start of 2022 is good for the second-best performance among the Magnificent Seven. But the bulk of that outperformance didn't happen until recently. In fact, Microsoft has outperformed the S&P 500 by 11.6% since Sept. 28.
AI has been the big story for the company in 2023 as well. After increasing its investment in leading generative-AI developer OpenAI at the start of the year, Microsoft Azure positioned itself as the leading cloud platform for other AI developers. That has resulted in strong growth for Azure relative to competing providers like Alphabet's Google Cloud and Amazon Web Services (AWS).
Microsoft has also developed its own generative AI solution for enterprises called Copilot, which can help sales teams, software developers, and health professionals by using AI to improve workflows. It sees just about everyone using Copilot in the workplace eventually. Considering the company's existing position as the leading enterprise software provider, it's in a great position to sell Copilot (at $30 a month per seat).
Despite recently hitting an all-time high, I believe the stock remains attractive. Still, it's not my favorite of the Magnificent Seven.
Apple: 8.2% total return since Jan. 1, 2022
Apple was the best-performing stock of the Magnificent Seven in 2022, despite underperforming the S&P 500 by more than 8 percentage points. So, despite being the weakest performer of the group in 2023 so far, it still earned its place as an overall outperformer since the start of last year.
Apple's stock has performed well despite its falling revenue this year. Its total revenue declined 2.8% for the fiscal year ended in September, and revenue fell in each quarter of the year.
Nonetheless, Apple showed strength in its earnings per share (EPS) thanks in part to its expanding profit margins from a shift toward more service revenue and its robust share-repurchase program. EPS grew 13% last quarter despite the decline in revenue.
With signs of a recovery in smartphone sales growth, Apple is poised to see a return to revenue growth and faster earnings growth. What's more, the company is investing heavily in artificial intelligence and could benefit from demand for on-device AI applications that keep users' data private and secure.
The stock is attractive, even at a relatively high price-to-earnings ratio. That's because its share repurchase program and ample cash reserves justify the high price investors will have to pay today to own its shares.
But there's one stock I like even more than Apple.
The Magnificent Seven stock most likely to outperform in 2024 and 2025
If I could only buy one of the Magnificent Seven, it would be Alphabet.
The Google parent company underperformed the S&P 500 by more than 8.5 percentage points since the start of 2022, besting only Amazon and Tesla in the group. And despite a 47% run in the stock price since the start of 2023, shares still look undervalued.
Google stands to benefit from a reacceleration in digital advertising spending. While Meta has seen its revenue growth top 20% again and its margins balloon, Google hasn't quite kept pace. I expect it to close that gap as it invests in AI tools to improve discovery on YouTube and facilitate advertising in the same way Meta did.
What's more, Google Cloud stands to be one of the main beneficiaries of continued investments in AI among enterprise customers. While it'll compete with Amazon and Microsoft for customers, it's not a winner-take-all market. All three should see benefits.
With Alphabet's shares currently trading for less than 20 times analysts' consensus 2024 earnings estimate, the stock is a bargain. That's especially true considering expectations for earnings growth of nearly 20% over the next five years. While many of the Magnificent Seven still look attractive at today's prices, Alphabet is the best of the bunch.
10 stocks we like better than Alphabet
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adam Levy has positions in Alphabet, Amazon, Apple, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The "Magnificent Seven" -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META) and Tesla (NASDAQ: TSLA) -- have produced market-trouncing returns in 2023. That has resulted in strong growth for Azure relative to competing providers like Alphabet's Google Cloud and Amazon Web Services (AWS). Nonetheless, Apple showed strength in its earnings per share (EPS) thanks in part to its expanding profit margins from a shift toward more service revenue and its robust share-repurchase program. | The "Magnificent Seven" -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META) and Tesla (NASDAQ: TSLA) -- have produced market-trouncing returns in 2023. After increasing its investment in leading generative-AI developer OpenAI at the start of the year, Microsoft Azure positioned itself as the leading cloud platform for other AI developers. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. | The "Magnificent Seven" -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META) and Tesla (NASDAQ: TSLA) -- have produced market-trouncing returns in 2023. Microsoft: 12.2% total return since Jan. 1, 2022 Microsoft's 12.2% total return since the start of 2022 is good for the second-best performance among the Magnificent Seven. See the 10 stocks *Stock Advisor returns as of December 4, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. | The "Magnificent Seven" -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META) and Tesla (NASDAQ: TSLA) -- have produced market-trouncing returns in 2023. But there's one stock I like even more than Apple. The Magnificent Seven stock most likely to outperform in 2024 and 2025 If I could only buy one of the Magnificent Seven, it would be Alphabet. |
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12190.0 | 2023-12-08 00:00:00 UTC | Apple's iPhone and watch design head to depart in February - Bloomberg News | AAPL | https://www.nasdaq.com/articles/apples-iphone-and-watch-design-head-to-depart-in-february-bloomberg-news | Recasts paragraph 1, adds background on executive departures in paragraph 2, details from report throughout
Dec 8 (Reuters) - The Apple AAPL.O executive leading design for the iPhone and smartwatch, Tang Tan, is leaving the company in February, Bloomberg News reported on Friday, citing people with knowledge of the matter.
This marks the second departure of an iPhone executive after Bloomberg News reported on Dec. 6, that Steve Hotelling who oversaw iPhone screen and touch ID technology that transformed the way iPhones feel and function is leaving.
The departure of Tan, who is vice president of product design at Apple, will come with a slew of elevated roles for some deputies, the report added.
Apple did not immediately respond to a Reuters request for comment.
Richard Dinh, head of iPhone product design will report directly to John Ternus who is senior vice president of hardware engineering, according to the report.
Bloomberg also reported that Kate Bergeron, a hardware engineering executive responsible for Mac teams, is taking over the design of the Apple Watch.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shailesh Kuber)
(([email protected]; +91 8510015800;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Recasts paragraph 1, adds background on executive departures in paragraph 2, details from report throughout Dec 8 (Reuters) - The Apple AAPL.O executive leading design for the iPhone and smartwatch, Tang Tan, is leaving the company in February, Bloomberg News reported on Friday, citing people with knowledge of the matter. The departure of Tan, who is vice president of product design at Apple, will come with a slew of elevated roles for some deputies, the report added. Bloomberg also reported that Kate Bergeron, a hardware engineering executive responsible for Mac teams, is taking over the design of the Apple Watch. | Recasts paragraph 1, adds background on executive departures in paragraph 2, details from report throughout Dec 8 (Reuters) - The Apple AAPL.O executive leading design for the iPhone and smartwatch, Tang Tan, is leaving the company in February, Bloomberg News reported on Friday, citing people with knowledge of the matter. This marks the second departure of an iPhone executive after Bloomberg News reported on Dec. 6, that Steve Hotelling who oversaw iPhone screen and touch ID technology that transformed the way iPhones feel and function is leaving. The departure of Tan, who is vice president of product design at Apple, will come with a slew of elevated roles for some deputies, the report added. | Recasts paragraph 1, adds background on executive departures in paragraph 2, details from report throughout Dec 8 (Reuters) - The Apple AAPL.O executive leading design for the iPhone and smartwatch, Tang Tan, is leaving the company in February, Bloomberg News reported on Friday, citing people with knowledge of the matter. This marks the second departure of an iPhone executive after Bloomberg News reported on Dec. 6, that Steve Hotelling who oversaw iPhone screen and touch ID technology that transformed the way iPhones feel and function is leaving. Richard Dinh, head of iPhone product design will report directly to John Ternus who is senior vice president of hardware engineering, according to the report. | Recasts paragraph 1, adds background on executive departures in paragraph 2, details from report throughout Dec 8 (Reuters) - The Apple AAPL.O executive leading design for the iPhone and smartwatch, Tang Tan, is leaving the company in February, Bloomberg News reported on Friday, citing people with knowledge of the matter. This marks the second departure of an iPhone executive after Bloomberg News reported on Dec. 6, that Steve Hotelling who oversaw iPhone screen and touch ID technology that transformed the way iPhones feel and function is leaving. Richard Dinh, head of iPhone product design will report directly to John Ternus who is senior vice president of hardware engineering, according to the report. |
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12191.0 | 2023-12-08 00:00:00 UTC | Best Stock to Buy: Apple vs. Shopify | AAPL | https://www.nasdaq.com/articles/best-stock-to-buy%3A-apple-vs.-shopify | Electronics giant Apple (NASDAQ: AAPL) and e-commerce platform Shopify (NYSE: SHOP) have been big winners over the past five years. They've returned 355% and 387%, respectively, easily outperforming the stock market by a ratio of roughly 4-to-1. That shouldn't be a surprise. Some 2 billion people use Apple's iOS devices, and Shopify's e-commerce platform has helped online shopping become a way of life in modern society.
But that was then. You want to know about the future. Can both stocks keep their momentum up? And which is the better stock to own now? Let's take a closer look.
How much are investors paying for cash profits?
Apple and Shopify have little in common. One company makes and sells personal electronics; the other is a software company with a platform that helps merchants sell things online. However, free cash flow is the common trait that links all companies.
AAPL Free Cash Flow Yield data by YCharts
Cash is the blood and oxygen circulating through a company, arguably the most important thing investors want to see. The critical question is: How can you invest your money to generate as much cash flow in return as possible? A company producing increasing cash flow will grow earnings, repurchase shares, pay dividends, or invest in growing the business -- all good things!
Apple and Shopify generate cash flow although Apple's massive size stands out. It generates more free cash flow in a year than what Shopify's entire company is worth. But there's more to it. Investors should look at how much cash flow their money is buying.
Apple stock is offering just over $0.03 of cash flow for every dollar of market cap at its current share price. That's a free-cash-flow yield of 3.3%. Shopify offers much less, a yield of just 0.5%. Off the jump, Apple stock is offering more bang for your buck.
Adding some color to this picture
But context is important because investors must also understand the dynamics around each company. Is there a reason investors aren't paying more for a piece of Apple's cash profits? A closer look reveals that Apple's become so big that it's struggling to grow.
According to analyst estimates, Apple's annual revenue growth could average 3% to 7% for the next three years, and earnings could compound at 8% to 10%. Shopify has higher expectations; revenue could grow 20% annually, and earnings could compound at more than 30%.
Long story short, people pay a premium for Shopify because the company is growing more rapidly. Apple may be arguably the most influential company on Earth, but it's also massive and might not produce the stellar investment results it once did.
What's the verdict?
If everything else were equal, investors would be wiser to take the faster-growing company in Shopify. The above discussion highlighted that. However, the price you pay for a stock matters.
Shopify's 0.5% cash-flow yield is low enough to be problematic. Even if the company's cash flow doubles yearly, it would take several years to come close to what Apple offers today. In other words, the market could be overpaying for Shopify's growth.
That huge value gap is why investors should consider Apple the better stock to buy until Shopify's valuation becomes more reasonable. Apple may have slower growth, but it's proven remarkably durable, and its nearly $100 billion in annual free cash flow is a war chest for creating shareholder value. That can enhance Apple's organic growth, a button Shopify can't currently press.
Ultimately, both stocks are great investments at the right price, but Apple holds the edge today.
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Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Shopify. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Electronics giant Apple (NASDAQ: AAPL) and e-commerce platform Shopify (NYSE: SHOP) have been big winners over the past five years. AAPL Free Cash Flow Yield data by YCharts Cash is the blood and oxygen circulating through a company, arguably the most important thing investors want to see. Some 2 billion people use Apple's iOS devices, and Shopify's e-commerce platform has helped online shopping become a way of life in modern society. | Electronics giant Apple (NASDAQ: AAPL) and e-commerce platform Shopify (NYSE: SHOP) have been big winners over the past five years. AAPL Free Cash Flow Yield data by YCharts Cash is the blood and oxygen circulating through a company, arguably the most important thing investors want to see. Some 2 billion people use Apple's iOS devices, and Shopify's e-commerce platform has helped online shopping become a way of life in modern society. | Electronics giant Apple (NASDAQ: AAPL) and e-commerce platform Shopify (NYSE: SHOP) have been big winners over the past five years. AAPL Free Cash Flow Yield data by YCharts Cash is the blood and oxygen circulating through a company, arguably the most important thing investors want to see. Apple and Shopify generate cash flow although Apple's massive size stands out. | AAPL Free Cash Flow Yield data by YCharts Cash is the blood and oxygen circulating through a company, arguably the most important thing investors want to see. Electronics giant Apple (NASDAQ: AAPL) and e-commerce platform Shopify (NYSE: SHOP) have been big winners over the past five years. And which is the better stock to own now? |
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12192.0 | 2023-12-08 00:00:00 UTC | 3 Warren Buffett Stocks You Can Buy in December and Hold Forever | AAPL | https://www.nasdaq.com/articles/3-warren-buffett-stocks-you-can-buy-in-december-and-hold-forever | Warren Buffett is arguably the world's most famous investor today. His reputation comes from decades of success in the stock market. He's leaned on a simple philosophy of buying and holding stocks in wonderful companies.
There is no shame in taking some notes from Warren Buffett and peeking at his holding company, Berkshire Hathaway, for inspiration for your investment strategy.
Here are three Buffett stocks you can buy this month and hold for the long term.
This stock is almost half of Berkshire Hathaway's portfolio
Buffett has a decades-long investing career. Ironically, he made one of his best investments within the past several years. Berkshire Hathaway began scooping up shares of Apple (NASDAQ: AAPL) in early 2016. Since then, Berkshire's investment in the iPhone maker has grown to nearly half its entire portfolio.
Apple has become a dominant smartphone and personal electronics company, with more than 2 billion active device users who purchase apps, accessories, and subscription services within Apple's ecosystem. Buffett has acknowledged that the ecosystem and how much users depend on these devices, picking up their iPhones dozens of times daily, are reasons he liked the company.
He also likes Apple's tendency for large share repurchases. Apple generates a staggering $100 billion in annual free cash flow and has spent billions of dollars lowering its share count by almost 38% this decade. Fewer shares mean that each existing share represents more of the company and its profits -- it often raises the share price over time, too.
Buffett has owned this stock for over 30 years
An estimated 96% of Americans know the Coca-Cola (NYSE: KO) brand. Since the company sells to over 200 countries, it's probably realistic that most people on Earth know the brand, too. Coca-Cola's worldwide reach spans many sodas, water, juices, teas, and coffee brands. Nearly two dozen Coca-Cola brands have over $1 billion in annual sales.
Beverages are a great business because people are always thirsty, and there's so much variety in the industry that a giant player like Coca-Cola can steadily grow almost endlessly as it develops new products, acquires emerging brands, and grows with the general population.
The company's durable business model has made it a remarkable dividend stock. Coca-Cola has paid and raised its dividend for 61 consecutive years through recessions, wars, and ups and downs. Buffett's stake in Coca-Cola is worth 6.5% of Berkshire Hathaway's portfolio today, its fourth-largest position. The dividends from those shares added up to $700 million last year, so investors can buy Coca-Cola and begin their own dividend machine.
The growth stock Buffett nearly missed
Buffett is human, which means sometimes even he misses out on an investment. E-commerce giant Amazon (NASDAQ: AMZN) is one example. The stock is one of Wall Street's best all-time investments, returning more than 147,000% over its lifetime.
Fortunately, Buffett has since corrected that mistake. Berkshire now owns a cool 10 million shares, about 0.4% of Berkshire's portfolio.
Amazon has been an excellent investment because the company has maintained a culture of steady innovation. It started selling books online, and today, it sells nearly 40% of all e-commerce in America. Instead of sitting on its success, Amazon launched a cloud platform, AWS, and grew it into the world's leader. Amazon is still investing and building advertising, media, and artificial intelligence businesses.
Investors can buy the stock today because there is still tread left on Amazon's core e-commerce and cloud segments. These existing segments have room to grow for years to come. However, knowing Amazon, new growth opportunities will be added to the mix over time.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Berkshire Hathaway began scooping up shares of Apple (NASDAQ: AAPL) in early 2016. There is no shame in taking some notes from Warren Buffett and peeking at his holding company, Berkshire Hathaway, for inspiration for your investment strategy. Buffett has acknowledged that the ecosystem and how much users depend on these devices, picking up their iPhones dozens of times daily, are reasons he liked the company. | Berkshire Hathaway began scooping up shares of Apple (NASDAQ: AAPL) in early 2016. The dividends from those shares added up to $700 million last year, so investors can buy Coca-Cola and begin their own dividend machine. The growth stock Buffett nearly missed Buffett is human, which means sometimes even he misses out on an investment. | Berkshire Hathaway began scooping up shares of Apple (NASDAQ: AAPL) in early 2016. This stock is almost half of Berkshire Hathaway's portfolio Buffett has a decades-long investing career. The growth stock Buffett nearly missed Buffett is human, which means sometimes even he misses out on an investment. | Berkshire Hathaway began scooping up shares of Apple (NASDAQ: AAPL) in early 2016. The dividends from those shares added up to $700 million last year, so investors can buy Coca-Cola and begin their own dividend machine. Investors can buy the stock today because there is still tread left on Amazon's core e-commerce and cloud segments. |
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12193.0 | 2023-12-08 00:00:00 UTC | Validea Detailed Fundamental Analysis - AAPL | AAPL | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-aapl-11 | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. |
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12194.0 | 2023-12-08 00:00:00 UTC | 2 Unbelievable Tech Growth Stocks to Buy and Hold for the Long Haul | AAPL | https://www.nasdaq.com/articles/2-unbelievable-tech-growth-stocks-to-buy-and-hold-for-the-long-haul | Investors might still be waiting for a prolonged bull market, but that doesn't mean it's a bad time to buy tech stocks or that you should stick to the sidelines. If you have cash to invest -- money that you don't need for bills or other near-term financial commitments -- there are plenty of intriguing companies that look ripe for the picking.
Stock prices remain volatile across a range of sectors. It's important to look beyond price and at the underlying business before you press the buy button, to make sure that the company fits with your basket of investments as well as your preferred risk profile.
On that note, here are two stocks to consider adding to your buy list that could make you richer in 2024 and well beyond.
1. Shopify
Shopify (NYSE: SHOP) has processed $812 billion in global commerce since its inception, but this business still has a tremendous runway to explore within the multitrillion-dollar e-commerce space.
As one of the leading companies providing the software, hardware, tools, and solutions that merchants need to start, scale, and build businesses both online and offline across a range of industries, the need for Shopify's family of platforms isn't easing.
Over the last few years, growth has slowed considerably from where it was in the early days of the pandemic. Realistically, that was to be expected. Investors who scooped up shares of Shopify in those pandemic days and held on to them through the period that followed likely experienced some significant gains followed by bearish volatility.
However, for the long-term investor, what matters is whether it's a business that can sustain meaningful growth over a period of years, rather than a few quarters of unbelievable gains that would be hard to replicate over a prolonged time.
Despite the fluctuations in consumer spending and the broader economy that is still posing difficulty for businesses like Shopify's, this e-commerce giant is harvesting cash, profits are growing, and revenue is steadily on the upswing.
In the first nine months of 2023, the company brought in revenue of nearly $5 billion, a 27% increase from the same period in 2023. It was not profitable when looking at that nine-month period, but in the third quarter, it did turn back to profitability of $718 million under generally accepted accounting principles (GAAP). Shopify reported cash from operating activities of approximately $500 million in the first three quarters of 2023.
That nine-month period also saw Shopify bring in total free cash flow of about $460 million. From mom-and-pop shops to large brands, the uses for its products and services are only growing. Still, the company estimates that it has only penetrated about 10% of U.S. e-commerce. That's a growth story that long-term investors might want to capitalize on now and in the years to come.
2. Apple
Apple (NASDAQ: AAPL) is one of the most talked-about stocks, but the value case for this investment has continued to grow and expand through the years.
With market-leading hardware products and a growing collection of subscription-based services that now account for the second-largest slice of its revenue and profits, Apple has proven it can innovate through economic thick and thin while rewarding investors in the process.
As a long-term investor, you should be looking at any business with a minimum holding period of five years, preferably longer. So, let's look at how Apple has performed over the trailing-five-year period.
Over that time, annual revenue has grown by about 50%, while net income has grown about 76%. Even though its 0.5% yield is considerably less than the average stock trading on the S&P 500 (where it's around 2%), that dividend has increased by 163% over the past five years. In total, the stock has delivered a return of 350% in that time frame.
Even though consumer spending is still in flux, iPhone sales -- which still account for the largest portion of Apple's top and bottom lines -- reached a new record in the most recent quarter, which included the new iPhone 15. The company also just released its first carbon-neutral Apple Watch.
The company is slowly but surely balancing out its reliance on sales of hardware products with recurring sales of its services like Apple TV+, Apple Music, and Apple News+. Of its total revenue of close to $90 billion in the most recent quarter, $44 billion was derived from iPhone sales and $22 billion came from its services segment.
This is a business you can buy and add to again and again through the years, which is no small feat in any market environment.
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Rachel Warren has positions in Apple and Shopify. The Motley Fool has positions in and recommends Apple and Shopify. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Apple (NASDAQ: AAPL) is one of the most talked-about stocks, but the value case for this investment has continued to grow and expand through the years. As one of the leading companies providing the software, hardware, tools, and solutions that merchants need to start, scale, and build businesses both online and offline across a range of industries, the need for Shopify's family of platforms isn't easing. Despite the fluctuations in consumer spending and the broader economy that is still posing difficulty for businesses like Shopify's, this e-commerce giant is harvesting cash, profits are growing, and revenue is steadily on the upswing. | Apple Apple (NASDAQ: AAPL) is one of the most talked-about stocks, but the value case for this investment has continued to grow and expand through the years. The company is slowly but surely balancing out its reliance on sales of hardware products with recurring sales of its services like Apple TV+, Apple Music, and Apple News+. Of its total revenue of close to $90 billion in the most recent quarter, $44 billion was derived from iPhone sales and $22 billion came from its services segment. | Apple Apple (NASDAQ: AAPL) is one of the most talked-about stocks, but the value case for this investment has continued to grow and expand through the years. The company is slowly but surely balancing out its reliance on sales of hardware products with recurring sales of its services like Apple TV+, Apple Music, and Apple News+. See the 10 stocks *Stock Advisor returns as of December 4, 2023 Rachel Warren has positions in Apple and Shopify. | Apple Apple (NASDAQ: AAPL) is one of the most talked-about stocks, but the value case for this investment has continued to grow and expand through the years. The company is slowly but surely balancing out its reliance on sales of hardware products with recurring sales of its services like Apple TV+, Apple Music, and Apple News+. That's right -- they think these 10 stocks are even better buys. |
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12195.0 | 2023-12-08 00:00:00 UTC | 79% of Warren Buffett's $363 Billion Portfolio Is Invested in Just 6 Stocks | AAPL | https://www.nasdaq.com/articles/79-of-warren-buffetts-%24363-billion-portfolio-is-invested-in-just-6-stocks | For a span of nearly six decades, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been wowing Wall Street with his investing prowess. Despite being just as fallible as any other investor, the Oracle of Omaha and his team have overseen a nearly 20% annualized return since the mid-1960s. On an aggregate basis, we're talking about a gain for the company's Class A shares (BRK.A) of almost 4,400,000% since Buffett took over.
What's made this outperformance so incredible is that Buffett and his investment team, including the late Charlie Munger, have stuck to old-school principles to make their shareholders meaningfully richer for more than a half-century. They've predominantly invested in time-tested, brand-name companies with well-defined competitive advantages and strong management teams.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
But perhaps most important, the Oracle of Omaha and his team strongly believe in portfolio concentration. This is to say that an outsize percentage of invested assets should be put to work in their top investment ideas.
As of the closing bell on Dec. 1, 2023, 79% -- $286.3 billion -- of the $363 billion investment portfolio overseen at Berkshire Hathaway by Warren Buffett was invested in just six stocks.
1. Apple: $175,091,767,454 (48.2% of invested assets)
The largest holding in Berkshire Hathaway's portfolio, tech stock Apple (NASDAQ: AAPL), leaves no shred of doubt that the Oracle of Omaha prefers to concentrate his company's invested assets in his and his teams' top ideas. Apple accounts for almost half of Berkshire's invested assets.
What's made Apple such a popular investment is its cutting-edge innovation, which is led by the iPhone. Even though Apple wasn't the first company to introduce a 5G-capable smartphone, it quickly gobbled up more than half of U.S. smartphone market share once a 5G-capable iPhone hit stores during the fourth quarter of 2020.
Arguably even more exciting is Apple's ongoing shift to a subscription-driven platform. To be clear, it's not giving up on the physical products (iPhone, Mac, and iPad) that brought it fame. Rather, it's evolving as a company to support various services that'll further enhance its operating margin, drive improved customer loyalty, and smooth out the revenue fluctuations that typically accompany major iPhone replacement cycles.
For Buffett, Apple's biggest selling point might just be its market-leading capital-return program. Apple is dishing out $15 billion in dividends to its shareholders each year, and it's repurchased more than $600 billion worth of its common stock since the beginning of 2013.
2. Bank of America: $31,977,098,106 (8.8% of invested assets)
If there's a sector Buffett is an expert on among all others, it's financials. He's an especially big fan of bank stocks, which benefit from disproportionately long periods of economic expansion. This is one reason why Bank of America (NYSE: BAC) accounts for nearly 9% of Berkshire's $363 billion of invested assets.
The factor that really helps Bank of America stand out from other U.S. money-center banks is its interest rate sensitivity. Changes in interest rates impact BofA's net interest income more so than any other big bank. With the Federal Reserve increasing the federal funds rate by 525 basis points since March 2022, Bank of America has seen its net interest income climb by billions of dollars every quarter, compared to where things stood a few years ago.
In addition to taking advantage of a higher-rate environment, BofA's technology investments are paying off. As of the end of September, 74% of its consumers were actively banking online or via mobile app, with a notable uptick in loan sales completed digitally, compared to prior to the COVID-19 pandemic. Digital transactions are considerably cheaper for banks than in-person interactions.
Bank of America is cheap, too. It can be scooped up right now for 5% below its book value and is doling out a market-topping 3.1% yield.
3. American Express: $26,343,875,232 (7.3% of invested assets)
It's a fairly similar story for the No. 3 holding, credit services provider American Express (NYSE: AXP). Since recessions are short-lived, companies reliant on merchant fees and interest income tend to disproportionately benefit from long-winded expansions.
The proverbial ace in the hole for Amex is that it's able to play both sides of a transaction. It's the third-largest payment processor in the U.S., based on credit card network purchase volume, and is also able to collect annual fees and interest income from its cardholders (consumers and businesses). Being able to double-dip can really lift American Express' bottom line during periods of robust economic growth.
Something else working in Amex's favor is its propensity to attract high-earning cardholders. People with higher incomes are less likely to alter their spending habits when inflation rises or an economic downturn takes shape. In other words, American Express' clients are more likely to continue paying their bills. In theory, this should help Amex better navigate challenging economic climates.
Patience has also paid off for Buffett. Berkshire Hathaway has an exceptionally low cost basis of approximately $8.49 per share on Amex. Based on Amex's base dividend of $2.40 per share, Buffett's company is enjoying a hearty 28.3% annual yield on cost.
Image source: Coca-Cola.
4. Coca-Cola: $23,456,000,000 (6.5% of invested assets)
No company has been a continuous holding in Berkshire Hathaway's portfolio longer than beverage stock Coca-Cola (NYSE: KO) -- since 1988. Coca-Cola has also increased its base annual dividend for 61 consecutive years (and counting), and it's netting Buffett's company a jaw-dropping 56.7% yield on cost.
The lure of Coca-Cola is that it's a consumer staples company. Consumers are going to buy food and beverages no matter how well or poorly the U.S. or global economy perform. Coca-Cola itself has more than two dozen brands generating at least $1 billion in annual sales. This translates to highly predictable sales and operating cash flow for the company in any economic climate.
To add to the above, Coca-Cola is operating in all but three countries (North Korea, Cuba, and Russia). Having such globally diverse operations allows it to generate steady cash flow in developed countries, while relying on faster organic growth rates in emerging markets.
Credit should be given to Coca-Cola's top-notch marketing, too. It's successfully reaching new generations of consumers with digital ad campaigns, yet has had no trouble maintaining its engagement with more mature audiences via well-known brand ambassadors.
5. Chevron: $15,965,054,730 (4.4% of invested assets)
Prior to the start of the decade, energy stocks were mostly an afterthought for the Oracle of Omaha and his investment team. But that's changed in a big way, as evidenced by the nearly $16 billion that's currently being put to work in integrated oil and gas stock Chevron (NYSE: CVX).
An investment of this magnitude is a pretty clear indication that Berkshire's brightest minds believe the spot price of crude oil will head higher, or at the very least remain well above its historic norm. Russia's ongoing war with Ukraine, coupled with years of capital underinvestment from energy companies due to pandemic-related uncertainty, has led to tight supply in the global oil market. As long as supply remains somewhat constrained, there's reason to believe the spot price for crude oil will be elevated.
Although Chevron generates its juiciest margins from its drilling operations, it's also able to hedge weakness in crude pricing with its other segments. For instance, Chevron's downstream refineries and chemical plants will enjoy lower input costs if the spot price of crude oil declines. This added cash flow can help Chevron weather any short-lived turbulence.
Big oil companies are known for their hefty capital return programs as well. Earlier this year, Chevron's board OK'd an up to $75 billion share repurchase program, which came on the heels of the company's 36th consecutive annual dividend increase.
Higher West Texas Intermediate crude oil prices have been a boon for Occidental Petroleum. WTI Crude Oil Spot Price data by YCharts.
6. Occidental Petroleum: $13,416,241,918 (3.7% of invested assets)
The sixth stock that, along with Apple, BofA, Amex, Coca-Cola, and Chevron, collectively accounts for 79% of the portfolio Buffett oversees at Berkshire Hathaway is yet another oil and gas stock, Occidental Petroleum (NYSE: OXY).
The Oracle of Omaha and his team have dived headfirst into Occidental common stock since the start of 2022. More than 228 million shares have been purchased, which comes atop the preferred stock yielding 8% annually that Berkshire has owned in Occidental Petroleum since 2019.
Though the catalysts for Occidental Petroleum mirror those of Chevron, there are two key differences between these two oil and gas companies. The first can be found with their balance sheets. Whereas Chevron has one of the lowest debt-to-equity ratios among major oil and gas companies, Occidental is still mired in debt following its purchase of Anadarko in 2019. It'll need energy commodity prices to remain elevated in order to continue improving its financial flexibility.
The other big difference between Chevron and Occidental is the latter's reliance on drilling. Although both are integrated operators (Occidental operates chemical plants), Occidental Petroleum generates an outsize percentage of its revenue and operating cash flow from its drilling operations, when compared to Chevron. If the spot price for crude rises, Occidental should disproportionately benefit. But the opposite is also true: A declining spot price for crude oil will hurt Occidental's cash flow more than most drillers.
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*Stock Advisor returns as of November 29, 2023
American Express and Bank of America are advertising partners of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Chevron and Occidental Petroleum and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple: $175,091,767,454 (48.2% of invested assets) The largest holding in Berkshire Hathaway's portfolio, tech stock Apple (NASDAQ: AAPL), leaves no shred of doubt that the Oracle of Omaha prefers to concentrate his company's invested assets in his and his teams' top ideas. What's made this outperformance so incredible is that Buffett and his investment team, including the late Charlie Munger, have stuck to old-school principles to make their shareholders meaningfully richer for more than a half-century. Rather, it's evolving as a company to support various services that'll further enhance its operating margin, drive improved customer loyalty, and smooth out the revenue fluctuations that typically accompany major iPhone replacement cycles. | Apple: $175,091,767,454 (48.2% of invested assets) The largest holding in Berkshire Hathaway's portfolio, tech stock Apple (NASDAQ: AAPL), leaves no shred of doubt that the Oracle of Omaha prefers to concentrate his company's invested assets in his and his teams' top ideas. Coca-Cola: $23,456,000,000 (6.5% of invested assets) No company has been a continuous holding in Berkshire Hathaway's portfolio longer than beverage stock Coca-Cola (NYSE: KO) -- since 1988. Occidental Petroleum: $13,416,241,918 (3.7% of invested assets) The sixth stock that, along with Apple, BofA, Amex, Coca-Cola, and Chevron, collectively accounts for 79% of the portfolio Buffett oversees at Berkshire Hathaway is yet another oil and gas stock, Occidental Petroleum (NYSE: OXY). | Apple: $175,091,767,454 (48.2% of invested assets) The largest holding in Berkshire Hathaway's portfolio, tech stock Apple (NASDAQ: AAPL), leaves no shred of doubt that the Oracle of Omaha prefers to concentrate his company's invested assets in his and his teams' top ideas. Coca-Cola: $23,456,000,000 (6.5% of invested assets) No company has been a continuous holding in Berkshire Hathaway's portfolio longer than beverage stock Coca-Cola (NYSE: KO) -- since 1988. Occidental Petroleum: $13,416,241,918 (3.7% of invested assets) The sixth stock that, along with Apple, BofA, Amex, Coca-Cola, and Chevron, collectively accounts for 79% of the portfolio Buffett oversees at Berkshire Hathaway is yet another oil and gas stock, Occidental Petroleum (NYSE: OXY). | Apple: $175,091,767,454 (48.2% of invested assets) The largest holding in Berkshire Hathaway's portfolio, tech stock Apple (NASDAQ: AAPL), leaves no shred of doubt that the Oracle of Omaha prefers to concentrate his company's invested assets in his and his teams' top ideas. Occidental Petroleum: $13,416,241,918 (3.7% of invested assets) The sixth stock that, along with Apple, BofA, Amex, Coca-Cola, and Chevron, collectively accounts for 79% of the portfolio Buffett oversees at Berkshire Hathaway is yet another oil and gas stock, Occidental Petroleum (NYSE: OXY). Although both are integrated operators (Occidental operates chemical plants), Occidental Petroleum generates an outsize percentage of its revenue and operating cash flow from its drilling operations, when compared to Chevron. |
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12196.0 | 2023-12-08 00:00:00 UTC | Tata Plans New IPhone Assembly Plant In India | AAPL | https://www.nasdaq.com/articles/tata-plans-new-iphone-assembly-plant-in-india | (RTTNews) - Indian conglomerate Tata Group is planning to construct a new assembly plant for Apple Inc.'s iPhones in India, Blommberg reported. The move is said to be inline with the tech major's strategy to expand its manufacturing activities beyond China, to India, which is one of its largest emerging market.
The new plant, deemed to be one of India's largest iPhone assembly plants, will be built in Hosur, located in the southern state of Tamil Nadu.
The facility is anticipated to accommodate around 20 assembly lines, and to employ around 50,000 workers within the next two years. The site is likely to be operational within 12-18 months.
Tata already has a facility in Hosur, where it manufactures iPhone enclosures.
Apple, has been eyeing to localise its supply chain and diversify operations away from China amid increased tensions between the US and China. With the latest move, the company aims to strengthen its collaboration with Tata, which already owns an iPhone factory in the nearby state of Karnataka that was acquired from Wistron Corp.
Apple has also engaged in partnerships in India, Thailand, Malaysia, and other locations.
Foxconn, Apple's key iPhone assembler and supplier with major operations in China, has been moving some manufacturing and supply chains out of China. It already started building multiple factory sites across India, including one in Telangana and another in Karnataka state.
Foxconn, which operates the world's biggest iPhone factory in the Zhengzhou city, called iPhone City, already manufactures iPhones at its Sriperumbudur factory on the outskirts of Chennai, India.
In the prior year, Apple assembled over $7 billion worth of iPhones in India, who's share in the device's production now stands at around 7%.
As per a recent report from the Wall Street Journal, Apple and its suppliers aim to manufacture over 50 million iPhones annually in India over the next two to three years. In the following periods, tens of millions of additional units will be produced.
While announcing its fourth-quarter results, Apple Chief Financial Officer Luca Maestri in October had stated that India reported very strong double-digit growth and a new all-time revenue record. The company is seeing very strong double-digit growth in places like India.
In India, Apple recently opened two stores with plans for three more. Meanwhile, Tata recently announced plans to launch 100 retail stores focused on Apple products.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Indian conglomerate Tata Group is planning to construct a new assembly plant for Apple Inc.'s iPhones in India, Blommberg reported. With the latest move, the company aims to strengthen its collaboration with Tata, which already owns an iPhone factory in the nearby state of Karnataka that was acquired from Wistron Corp. Apple has also engaged in partnerships in India, Thailand, Malaysia, and other locations. While announcing its fourth-quarter results, Apple Chief Financial Officer Luca Maestri in October had stated that India reported very strong double-digit growth and a new all-time revenue record. | The new plant, deemed to be one of India's largest iPhone assembly plants, will be built in Hosur, located in the southern state of Tamil Nadu. Foxconn, Apple's key iPhone assembler and supplier with major operations in China, has been moving some manufacturing and supply chains out of China. Foxconn, which operates the world's biggest iPhone factory in the Zhengzhou city, called iPhone City, already manufactures iPhones at its Sriperumbudur factory on the outskirts of Chennai, India. | With the latest move, the company aims to strengthen its collaboration with Tata, which already owns an iPhone factory in the nearby state of Karnataka that was acquired from Wistron Corp. Apple has also engaged in partnerships in India, Thailand, Malaysia, and other locations. Foxconn, Apple's key iPhone assembler and supplier with major operations in China, has been moving some manufacturing and supply chains out of China. Foxconn, which operates the world's biggest iPhone factory in the Zhengzhou city, called iPhone City, already manufactures iPhones at its Sriperumbudur factory on the outskirts of Chennai, India. | Foxconn, Apple's key iPhone assembler and supplier with major operations in China, has been moving some manufacturing and supply chains out of China. It already started building multiple factory sites across India, including one in Telangana and another in Karnataka state. As per a recent report from the Wall Street Journal, Apple and its suppliers aim to manufacture over 50 million iPhones annually in India over the next two to three years. |
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12197.0 | 2023-12-08 00:00:00 UTC | Apple to move key iPad engineering resources to Vietnam- Nikkei | AAPL | https://www.nasdaq.com/articles/apple-to-move-key-ipad-engineering-resources-to-vietnam-nikkei | Adds details from the report throughout
Dec 8 (Reuters) - Apple is allocating product development resources for iPad to Vietnam, Nikkei reported on Friday, citing sources briefed on the matter.
Apple is working with China's BYD 002594.SZ, a key iPad assembler, to move new product introduction (NPI) resources to Vietnam, the report said, adding that this is the first time the company has shifted NPI resources to Vietnam for such a core device.
Engineering verification for test production of an iPad model will start around mid-February and the model will be available in the second half of next year, it said.
Apple and BYD did not immediately respond to Reuters' request for comment.
Apple suppliers including Luxshare and Foxconn also invested in the Southeast Asian country earlier this year to further diversify production away from China.
(Reporting by Shivani Tanna in Bengaluru; Editing by Rashmi Aich)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details from the report throughout Dec 8 (Reuters) - Apple is allocating product development resources for iPad to Vietnam, Nikkei reported on Friday, citing sources briefed on the matter. Apple is working with China's BYD 002594.SZ, a key iPad assembler, to move new product introduction (NPI) resources to Vietnam, the report said, adding that this is the first time the company has shifted NPI resources to Vietnam for such a core device. Apple suppliers including Luxshare and Foxconn also invested in the Southeast Asian country earlier this year to further diversify production away from China. | Adds details from the report throughout Dec 8 (Reuters) - Apple is allocating product development resources for iPad to Vietnam, Nikkei reported on Friday, citing sources briefed on the matter. Apple is working with China's BYD 002594.SZ, a key iPad assembler, to move new product introduction (NPI) resources to Vietnam, the report said, adding that this is the first time the company has shifted NPI resources to Vietnam for such a core device. Engineering verification for test production of an iPad model will start around mid-February and the model will be available in the second half of next year, it said. | Adds details from the report throughout Dec 8 (Reuters) - Apple is allocating product development resources for iPad to Vietnam, Nikkei reported on Friday, citing sources briefed on the matter. Apple is working with China's BYD 002594.SZ, a key iPad assembler, to move new product introduction (NPI) resources to Vietnam, the report said, adding that this is the first time the company has shifted NPI resources to Vietnam for such a core device. (Reporting by Shivani Tanna in Bengaluru; Editing by Rashmi Aich) (([email protected];)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds details from the report throughout Dec 8 (Reuters) - Apple is allocating product development resources for iPad to Vietnam, Nikkei reported on Friday, citing sources briefed on the matter. Apple is working with China's BYD 002594.SZ, a key iPad assembler, to move new product introduction (NPI) resources to Vietnam, the report said, adding that this is the first time the company has shifted NPI resources to Vietnam for such a core device. Engineering verification for test production of an iPad model will start around mid-February and the model will be available in the second half of next year, it said. |
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12198.0 | 2023-12-08 00:00:00 UTC | Hundreds still stranded, plants closed in India's flood-hit Chennai | AAPL | https://www.nasdaq.com/articles/hundreds-still-stranded-plants-closed-in-indias-flood-hit-chennai | By Praveen Paramasivam
CHENNAI, Dec 8 (Reuters) - Volunteers waded through stagnant water to hand out food and supplies, and some manufacturing plants remained shut in India's southern tech-and-auto hub district of Chennai on Friday, four days after cyclone Michaung lashed the coast.
At least 14 people, most of them in Chennai and its state of Tamil Nadu, have died in the flooding, triggered by torrential rains that started on Monday.
The cyclone itself made landfall further north in Andhra Pradesh state on Tuesday afternoon.
Authorities said some low-lying areas of the state were still inundated and government officials and volunteers were taking supplies to people stuck in their homes in slums and other areas.
The larger Chennai area is home to the Indian units of several global firms including Hyundai Motor 005380.KS, Daimler and Taiwan’s Foxconn 2317.TW and Pegatron 4938.TW which do contract manufacturing for Apple AAPL.O.
While many of them including Pegatron and Foxconn resumed operations within a day or two of the cyclone making landfall, some plants of the TVS group located in the worst-affected areas are yet to open, industry sources said.
AdaniKrishnapatnam Port APSE.NS in Andhra Pradesh, said on Friday the cyclone had "very badly affected" its operations and it was declaring a force majeure period starting Dec. 3.
Force majeure is a notice used to describe events outside a company's control, such as a natural disaster, which usually releases it from contractual obligation without penalty.
State-run Madras FertilizersMDFT.NSnotified stock exchanges that its Chennai plant has been shut and is tentatively expected to resume operations within two to four weeks.
INFRASTRUCTURE QUESTIONED
Information technology (IT) services providers told staff to work from home for the week, while schools and colleges closed. A few schools and colleges were converted into temporary shelters.
This week's floods in Chennai brought back memories of the extensive damage caused by floods eight years ago which killed around 290 people.
In Andhra Pradesh, the damage from the cyclone was relatively contained, with roads damaged and trees uprooted as big waves crashed into the coast.
Defence Minister Rajnath Singh visited Chennai on Thursday and announced New Delhi will release a second instalment of 4.5 billion rupees ($54 million) to Tamil Nadu to help manage the damage. The federal government has also approved a 5.6 billion-rupee project for flood management in Chennai, he said.
Chennai residents questioned the ability of the city's infrastructure to handle extreme weather.
"Not only has urbanisation itself caused a problem, but the nature of the urbanisation has preyed upon open spaces, holding areas like marshlands and flood plains," social activist Nityanand Jayaraman said.
Experts have, however, said better stormwater drainage systems would not have been able to prevent the flooding caused by very heavy and extremely heavy rains.
"This solution would have helped a lot in moderate and heavy rainfall, but not in very heavy and extremely heavy rains," Raj Bhagat P, a civil engineer and geo-analytics expert, said on Wednesday.
($1 = 83.3720 Indian rupees)
(Additional reporting by Rama Venkat in Bengaluru; Editing by YP Rajesh and Andrew Heavens)
(([email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The larger Chennai area is home to the Indian units of several global firms including Hyundai Motor 005380.KS, Daimler and Taiwan’s Foxconn 2317.TW and Pegatron 4938.TW which do contract manufacturing for Apple AAPL.O. While many of them including Pegatron and Foxconn resumed operations within a day or two of the cyclone making landfall, some plants of the TVS group located in the worst-affected areas are yet to open, industry sources said. Defence Minister Rajnath Singh visited Chennai on Thursday and announced New Delhi will release a second instalment of 4.5 billion rupees ($54 million) to Tamil Nadu to help manage the damage. | The larger Chennai area is home to the Indian units of several global firms including Hyundai Motor 005380.KS, Daimler and Taiwan’s Foxconn 2317.TW and Pegatron 4938.TW which do contract manufacturing for Apple AAPL.O. While many of them including Pegatron and Foxconn resumed operations within a day or two of the cyclone making landfall, some plants of the TVS group located in the worst-affected areas are yet to open, industry sources said. Experts have, however, said better stormwater drainage systems would not have been able to prevent the flooding caused by very heavy and extremely heavy rains. | The larger Chennai area is home to the Indian units of several global firms including Hyundai Motor 005380.KS, Daimler and Taiwan’s Foxconn 2317.TW and Pegatron 4938.TW which do contract manufacturing for Apple AAPL.O. By Praveen Paramasivam CHENNAI, Dec 8 (Reuters) - Volunteers waded through stagnant water to hand out food and supplies, and some manufacturing plants remained shut in India's southern tech-and-auto hub district of Chennai on Friday, four days after cyclone Michaung lashed the coast. At least 14 people, most of them in Chennai and its state of Tamil Nadu, have died in the flooding, triggered by torrential rains that started on Monday. | The larger Chennai area is home to the Indian units of several global firms including Hyundai Motor 005380.KS, Daimler and Taiwan’s Foxconn 2317.TW and Pegatron 4938.TW which do contract manufacturing for Apple AAPL.O. At least 14 people, most of them in Chennai and its state of Tamil Nadu, have died in the flooding, triggered by torrential rains that started on Monday. While many of them including Pegatron and Foxconn resumed operations within a day or two of the cyclone making landfall, some plants of the TVS group located in the worst-affected areas are yet to open, industry sources said. |
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12199.0 | 2023-12-07 00:00:00 UTC | US STOCKS-Nasdaq ends sharply higher as Alphabet and AMD fuel AI surge | AAPL | https://www.nasdaq.com/articles/us-stocks-nasdaq-ends-sharply-higher-as-alphabet-and-amd-fuel-ai-surge | (Updated at 4:10 p.m. ET/ 2110 GMT)
*
Investors cheer Alphabet's new AI model
*
Advanced Micro Devices climbs after AI-chip market
forecast
*
Weekly jobless claims lower than expected
*
Indexes: S&P 500 +0.80%, Nasdaq +1.37%, Dow +0.18%
*
By Noel Randewich and Shristi Achar A
Dec 7 (Reuters) - The Nasdaq ended sharply higher on
Thursday after Alphabet and Advanced Micro Devices sparked a
megacap rally on fresh optimism about artificial intelligence.
Shares of Alphabet jumped 5.3% as analysts cheered
the launch of the Google-parent's newest AI model, while AMD
soared nearly 10% after the company estimated the potential
market for its data center AI chips could reach $45 billion this
year.
Other heavyweight tech-related stocks also gained, with
Nvidia and Meta Platforms rising over 2%,
Amazon up 1.6% and Apple 1% higher.
The Philadelphia semiconductor index <.SOX> jumped 2.8%,
increasing its 2023 gain to 48%, much of that fueled by bets
about the future of AI.
"Today it's an AMD-Google rally. There's a contagion effect
across the market. Everyone wants to get on the bandwagon," said
Jay Hatfield, CEO of Infrastructure Capital Management in New
York.
"We're kind of in this weird market, a tag-team market,
where one day tech leads, and then the next day value and the
broad market lead."
The S&P 500 <.SPX> has steadily climbed since the end of
October on expectations the Federal Reserve has finished its
campaign of interest rate hikes and that it could begin cutting
rates in March.
The S&P 500 climbed 0.80% to end the session at 4,585.59
points, with 1.8 stocks in the index gaining for each one that
fell.
The most traded stock in the S&P 500 was Tesla ,
with $25.7 billion worth of shares changing hands during the
session. The shares rose 1.37%.
The Nasdaq Composite <.IXIC> jumped 1.37% to 14,339.99
points, while Dow Jones Industrial Average <.DJI> rose 0.18% to
36,117.57 points.
Volume on U.S. exchanges was relatively heavy, with 11.2
billion shares traded, compared to an average of 10.8 billion
shares over the previous 20 sessions.
Traders have almost fully priced in the likelihood of the
Fed keeping rates unchanged at its meeting next week.
Data on Thursday showed the number of Americans filing new
claims for unemployment benefits increased less than expected
last week to a seasonally adjusted 220,000 for the week.
A Labor Department jobs report due on Friday could hint at
how quickly the U.S. economy is softening and may sway
expectations about when the Fed is likely to begin cutting
rates. Non-farm payrolls are expected to have increased by
180,000 jobs last month after rising by 150,000 in October.
Interest rate futures imply a nearly 64% chance of a rate
cut as soon as March, according to the CME Group's FedWatch
tool.
Limiting gains in the Dow, shares of Merck fell 1.7%
after the drugmaker's immunotherapy combination failed in a lung
cancer study.
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Chips vs S&P 500 over past 24 months https://tmsnrt.rs/489vb2b
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(Reporting by Amruta Khandekar and Shristi Achar A in Bangalore
and by Noel Randewich in Oakland, Calif.; Editing by Saumyadeb
Chakrabarty, Anil D'Silva and Richard Chang)
(([email protected]))
Keywords: USA STOCKS/ (UPDATE 7)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Noel Randewich and Shristi Achar A Dec 7 (Reuters) - The Nasdaq ended sharply higher on Thursday after Alphabet and Advanced Micro Devices sparked a megacap rally on fresh optimism about artificial intelligence. A Labor Department jobs report due on Friday could hint at how quickly the U.S. economy is softening and may sway expectations about when the Fed is likely to begin cutting rates. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Chips vs S&P 500 over past 24 months https://tmsnrt.rs/489vb2b ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Amruta Khandekar and Shristi Achar A in Bangalore and by Noel Randewich in Oakland, Calif.; Editing by Saumyadeb Chakrabarty, Anil D'Silva and Richard Chang) (([email protected])) | By Noel Randewich and Shristi Achar A Dec 7 (Reuters) - The Nasdaq ended sharply higher on Thursday after Alphabet and Advanced Micro Devices sparked a megacap rally on fresh optimism about artificial intelligence. The S&P 500 climbed 0.80% to end the session at 4,585.59 points, with 1.8 stocks in the index gaining for each one that fell. The Nasdaq Composite <.IXIC> jumped 1.37% to 14,339.99 points, while Dow Jones Industrial Average <.DJI> rose 0.18% to 36,117.57 points. | By Noel Randewich and Shristi Achar A Dec 7 (Reuters) - The Nasdaq ended sharply higher on Thursday after Alphabet and Advanced Micro Devices sparked a megacap rally on fresh optimism about artificial intelligence. Shares of Alphabet jumped 5.3% as analysts cheered the launch of the Google-parent's newest AI model, while AMD soared nearly 10% after the company estimated the potential market for its data center AI chips could reach $45 billion this year. The S&P 500 <.SPX> has steadily climbed since the end of October on expectations the Federal Reserve has finished its campaign of interest rate hikes and that it could begin cutting rates in March. | By Noel Randewich and Shristi Achar A Dec 7 (Reuters) - The Nasdaq ended sharply higher on Thursday after Alphabet and Advanced Micro Devices sparked a megacap rally on fresh optimism about artificial intelligence. The S&P 500 climbed 0.80% to end the session at 4,585.59 points, with 1.8 stocks in the index gaining for each one that fell. Data on Thursday showed the number of Americans filing new claims for unemployment benefits increased less than expected last week to a seasonally adjusted 220,000 for the week. |
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12200.0 | 2023-12-07 00:00:00 UTC | Apple-backed study finds rise in data breaches as iPhone maker defends encryption stance | AAPL | https://www.nasdaq.com/articles/apple-backed-study-finds-rise-in-data-breaches-as-iphone-maker-defends-encryption-stance | By Stephen Nellis
Dec 7 (Reuters) - In the first nine months of 2023, U.S. data breaches increased by 20% compared to the full year 2022, according to a new study that was commissioned by Apple AAPL.O.
The iPhone maker paid for the study, which was conducted by Massachusetts Institute of Technology Professor Stuart E. Madnick, about a year after it rolled out a new feature to expand end-to-end encryption for data stored in its iCloud service. The study, which does not include any findings of data breaches at Apple itself, argues that breaches are becoming so commonplace that the only feasible way to protect consumer data is wider use of end-to-end encryption.
Such encryption makes it impossible for the company that stores the data - or anyone who might hack its servers - to unscramble a user's data without also possessing additional information, such as the passcode for one of the user's personal devices. But that encryption approach also makes it impossible for law enforcement officials to access the data without the user's knowledge and has long been a friction point between technologists and government officials.
Britain is considering a law that would mandate access to private messages and has encouraged companies such as Meta Platforms META.O
The Apple-backed study, however, found that technology companies are frequently attacked by hackers because they provide services to valuable targets. Microsoft MSFT.O, for example, was hit by Chinese hackers this year, who managed to steal tens of thousands of U.S. State Department emails.
The study said that 98% of organizations have a relationship with at least one technology vendor that experienced a data breach in the previous two years.
"In today’s interconnected world, virtually every organization relies on a wide range of vendors and software. As a result, hackers only need to exploit vulnerabilities in third-party software or a vendor’s system to gain access to the data stored by every organization that relies on that vendor," the study said.
(Reporting by Stephen Nellis in San Francisco; Editing by Chizu Nomiyama)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Stephen Nellis Dec 7 (Reuters) - In the first nine months of 2023, U.S. data breaches increased by 20% compared to the full year 2022, according to a new study that was commissioned by Apple AAPL.O. The iPhone maker paid for the study, which was conducted by Massachusetts Institute of Technology Professor Stuart E. Madnick, about a year after it rolled out a new feature to expand end-to-end encryption for data stored in its iCloud service. Microsoft MSFT.O, for example, was hit by Chinese hackers this year, who managed to steal tens of thousands of U.S. State Department emails. | By Stephen Nellis Dec 7 (Reuters) - In the first nine months of 2023, U.S. data breaches increased by 20% compared to the full year 2022, according to a new study that was commissioned by Apple AAPL.O. Such encryption makes it impossible for the company that stores the data - or anyone who might hack its servers - to unscramble a user's data without also possessing additional information, such as the passcode for one of the user's personal devices. But that encryption approach also makes it impossible for law enforcement officials to access the data without the user's knowledge and has long been a friction point between technologists and government officials. | By Stephen Nellis Dec 7 (Reuters) - In the first nine months of 2023, U.S. data breaches increased by 20% compared to the full year 2022, according to a new study that was commissioned by Apple AAPL.O. The study, which does not include any findings of data breaches at Apple itself, argues that breaches are becoming so commonplace that the only feasible way to protect consumer data is wider use of end-to-end encryption. Such encryption makes it impossible for the company that stores the data - or anyone who might hack its servers - to unscramble a user's data without also possessing additional information, such as the passcode for one of the user's personal devices. | By Stephen Nellis Dec 7 (Reuters) - In the first nine months of 2023, U.S. data breaches increased by 20% compared to the full year 2022, according to a new study that was commissioned by Apple AAPL.O. The iPhone maker paid for the study, which was conducted by Massachusetts Institute of Technology Professor Stuart E. Madnick, about a year after it rolled out a new feature to expand end-to-end encryption for data stored in its iCloud service. Such encryption makes it impossible for the company that stores the data - or anyone who might hack its servers - to unscramble a user's data without also possessing additional information, such as the passcode for one of the user's personal devices. |
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12201.0 | 2023-12-07 00:00:00 UTC | The 3 Stocks I Would Buy Today if I Was a Beginning Investor | AAPL | https://www.nasdaq.com/articles/the-3-stocks-i-would-buy-today-if-i-was-a-beginning-investor | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Investors often view income and growth as mutually exclusive.
But, some companies defy this dichotomy. In fact, three dividend powerhouses emerge as top choices for 2024. They embody resilience, financial strength, consistent distribution growth, operational efficiency, and a sustained dividend history. Essentially, these stocks offer reliable investment opportunities in an unpredictable market.
So, to those who wish to start investing in stocks, let’s look at three high-growth plus dividend-paying stocks. Resiliently enduring a lot of breakthroughs, they’ve stood strong and tall through periods of past turbulence.
For those looking to start a portfolio, let’s examine three of the best options to choose right now.
Restaurant Brands (QSR)
Source: Shutterstock
Restaurant Brands International (NYSE:QSR) benefits directly from increased consumer spending, thanks to its diverse brand portfolio.
The company’s portfolio of fast food banners includes Burger King, Tim Horton’s, Popeye’s Louisiana Kitchen, and Firehouse Subs. In the company’s most recent quarter, Restaurant Brands reported earnings per share of 90 cents and revenue of $1.84 billion. Notably, same-store sales growth rang in at 7% year over year (YOY). While slightly below expectations, the company’s strong same-store sales growth indicates promising long-term growth potential.
Despite easing prices for U.S. consumers, fast-food establishments have seen a 0.4% monthly and 5.4% yearly increase in menu prices, outpacing overall inflation and grocery prices. This contrasts with consumer prices remaining steady, providing a positive signal after over two years of significant increases, with a 3.2% rise in the past 12 months.
Finally and perhaps most importantly, all consumers need to eat. And in times of economic turmoil, fast food outlets are often the place consumers land to dine. Thus, those worried about economic uncertainty on the horizon ought to give this stock a look right now.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
In the dynamic realm of momentum stocks, Apple (NASDAQ:AAPL) has surged more than 50% year to date (YTD).
Impressively, AAPL earns a moderate buy consensus among analysts, with a target around $198 per share. This optimistic outlook reflects a modest potential increase. However, some strong growth drivers from India’s expanding affluent class and resilient iPhone sales could support continued valuation growth. These factors are buoyed by a robust iOS ecosystem and services revenue rebound after recent price adjustments.
Despite disappointing hardware results, the company’s clear win was seen in its services arm, which includes the App Store and Apple Music. This higher-margin segment is crucial for Apple’s future, indicating that the recent quarter’s challenges are temporary.
Apple dominates the smartphone market with 1 billion customers. Its Services division, including the lucrative App Store, contributed over 25% of the total revenue, hitting $22.31 billion in Q4 2023. Despite a dip in overall sales, new M3 chips are expected to drive a rebound. I remain bullish on this stock over the long-term, and while some near-term downside could be seen, I’d view dips as buying opportunities from here.
Pepsi (PEP)
Source: FotograFFF / Shutterstock.com
PepsiCo (NASDAQ:PEP) stands out as a strong long-term investment.
The company boasts a resilient, globally diversified business, evident in its recent quarter’s strong performance. Despite a recent dip in its stock price, PEP stock offers passive income potential with a stable 3% dividend yield. This makes the snack food maker an attractive addition to portfolios for both income and capital growth over the next decade.
PepsiCo demonstrates a positive shift with a 6.7% YOY revenue increase, reaching $23.45 billion. Non-GAAP earnings per share at $2.25 exceed expectations, emphasizing the company’s resilience. Initiatives include Ghost Kitchens, eco-friendly delivery trucks, and strategic investments in global agriculture.
Over time, investors will reap the benefits of continued strong demand for Pepsi’s products.
On the date of publication, Chris MacDonald has a LONG position in QSR, AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The post The 3 Stocks I Would Buy Today if I Was a Beginning Investor appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com In the dynamic realm of momentum stocks, Apple (NASDAQ:AAPL) has surged more than 50% year to date (YTD). Impressively, AAPL earns a moderate buy consensus among analysts, with a target around $198 per share. On the date of publication, Chris MacDonald has a LONG position in QSR, AAPL. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com In the dynamic realm of momentum stocks, Apple (NASDAQ:AAPL) has surged more than 50% year to date (YTD). Impressively, AAPL earns a moderate buy consensus among analysts, with a target around $198 per share. On the date of publication, Chris MacDonald has a LONG position in QSR, AAPL. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com In the dynamic realm of momentum stocks, Apple (NASDAQ:AAPL) has surged more than 50% year to date (YTD). Impressively, AAPL earns a moderate buy consensus among analysts, with a target around $198 per share. On the date of publication, Chris MacDonald has a LONG position in QSR, AAPL. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com In the dynamic realm of momentum stocks, Apple (NASDAQ:AAPL) has surged more than 50% year to date (YTD). Impressively, AAPL earns a moderate buy consensus among analysts, with a target around $198 per share. On the date of publication, Chris MacDonald has a LONG position in QSR, AAPL. |
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12202.0 | 2023-12-07 00:00:00 UTC | The 3 Best Nasdaq Stocks to Buy in December | AAPL | https://www.nasdaq.com/articles/the-3-best-nasdaq-stocks-to-buy-in-december | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Nasdaq index continues to be the big winner in 2023, having risen 37%, nearly double the increase seen in the benchmark S&P 500 index. Technology stocks, especially ones associated with artificial intelligence (AI), have led the market out of the 2022 bear market. And while some tech stocks are now gasping for air after big runs, others seem to have momentum heading into 2024. And even bigger catalysts are on the horizon.
These stocks are solid picks for the year ahead. And, especially with the prospect of lower interest rates and a resilient economy, it looks likely to continue bolstering equities. So, let’s explore the three best Nasdaq stocks to buy in December.
Apple (AAPL)
Source: Moab Republic / Shutterstock
After sliding lower for much of the autumn, Apple’s (NASDAQ:AAPL) market capitalization is back above $3 trillion. This makes it the world’s most valuable publicly traded concern. On Dec. 5, Apple’s stock rose 2% to finish trading at $193.42 per share. Hence, this pushed the company’s market cap above the $3 trillion mark for the first time since this past August. The company’s stock has now risen a total of 55% in 2023.
Initially, Apple’s market weighted value officially crossed the $3 trillion mark for the first time this past June. The stock hit an all-time high on July 31 just as the broader market peaked. The move back into AAPL stock comes as signs mount that the economy is slowing. Investors see Apple as a safe haven asset with its strong cash flow and commitment to shareholder returns. The company buys back more of its own stock than any other publicly traded entity.
Upcoming catalysts for AAPL stock include the release in 2024 of the company’s highly anticipated Vision Pro virtual reality (VR) headset. This is its first, completely new product since the introduction of the Apple Watch in 2014. Through five years, Apple’s stock has risen incredibly more than 350%!
Coinbase Global (COIN)
Source: Sergei Elagin / Shutterstock.com
If you believe in the cryptocurrency rally and want to get in on the action, then consider taking a position in Coinbase Global (NASDAQ:COIN). The crypto exchange’s stock has been on fire this year as the price of Bitcoin (BTC-USD) and other digital tokens skyrocket. Year-to-date, COIN stock is up 310%, making it one of the best-performing Nasdaq stocks of 2023. If the current rally that has Bitcoin up more than 150% over 12 months continues, it’s a safe bet that Coinbase’s stock will continue running higher too.
Now, word comes that the rally in cryptocurrencies is broadening out to include smaller digital tokens such as Cardano (ADA-USD) and Dogecoin (DOGE-USD). Prices for so-called altcoins such as Bitcoin and Ethereum (ETH-USD) have risen 67% in recent weeks. And, according to market data, they have reached their highest levels since March 2022. This is only good news for Coinbase, its trading volumes, and its shareholders.
In fact, Bitcoin exchange-traded funds (ETFs) are anticipated to be approved by U.S. regulators. Therefore, this will be a huge catalyst for the entire cryptocurrency industry in the year ahead.
PDD Holdings (PDD)
Source: madamF / Shutterstock.com
For an outside-the-box pick, consider Chinese e-commerce company PDD Holdings (NASDAQ:PDD). The share price is up 20% since it issued its latest quarterly results.
PDD, which competes directly with both Amazon (NASDAQ:AMZN) and Alibaba (NYSE:BABA), announced third-quarter earnings per share (EPS) of $1.64 and revenue of $9.7 billion. Both numbers blew past the consensus estimates of Wall Street analysts.
The key to PDD Holdings’ success is that it owns discount online platforms Pinduoduo in China and Temu internationally. The discounted prices offered on these sites are increasingly attractive to consumers. This holds especially true as an economic slowdown in China takes hold and inflation and interest rates remain elevated around the world. PDD’s Q3 earnings were up 35% from a year ago, while its revenue increased 94% year over year (YOY). PDD stock is now up nearly 70% in 2023 and has grown an incredible 590% over five years.
On the date of publication, Joel Baglole held a long position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post The 3 Best Nasdaq Stocks to Buy in December appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Upcoming catalysts for AAPL stock include the release in 2024 of the company’s highly anticipated Vision Pro virtual reality (VR) headset. Apple (AAPL) Source: Moab Republic / Shutterstock After sliding lower for much of the autumn, Apple’s (NASDAQ:AAPL) market capitalization is back above $3 trillion. The move back into AAPL stock comes as signs mount that the economy is slowing. | Apple (AAPL) Source: Moab Republic / Shutterstock After sliding lower for much of the autumn, Apple’s (NASDAQ:AAPL) market capitalization is back above $3 trillion. The move back into AAPL stock comes as signs mount that the economy is slowing. Upcoming catalysts for AAPL stock include the release in 2024 of the company’s highly anticipated Vision Pro virtual reality (VR) headset. | Apple (AAPL) Source: Moab Republic / Shutterstock After sliding lower for much of the autumn, Apple’s (NASDAQ:AAPL) market capitalization is back above $3 trillion. The move back into AAPL stock comes as signs mount that the economy is slowing. Upcoming catalysts for AAPL stock include the release in 2024 of the company’s highly anticipated Vision Pro virtual reality (VR) headset. | Apple (AAPL) Source: Moab Republic / Shutterstock After sliding lower for much of the autumn, Apple’s (NASDAQ:AAPL) market capitalization is back above $3 trillion. The move back into AAPL stock comes as signs mount that the economy is slowing. Upcoming catalysts for AAPL stock include the release in 2024 of the company’s highly anticipated Vision Pro virtual reality (VR) headset. |
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12203.0 | 2023-12-07 00:00:00 UTC | Ex-Apple lawyer sentenced to probation for insider trading | AAPL | https://www.nasdaq.com/articles/ex-apple-lawyer-sentenced-to-probation-for-insider-trading | By David Thomas
Dec 7 (Reuters) - Apple'sAPPL.O former top corporate lawyer will receive no prison time after pleading guilty last year to U.S. insider trading charges, a judge said on Thursday.
U.S. District Judge William Martini in Newark, New Jersey, sentenced Gene Levoff to four years of probation and 2,000 hours of community service. Levoff was also ordered to pay a $30,000 fine and forfeit $604,000.
Levoff had admitted to six securities fraud counts that each carried a maximum 20-year prison term and $5 million fine.
A lawyer for Levoff, Kevin Marino, said in an email that they were "extremely pleased" for what he called a "fair and appropriate sentence of probation."
A spokesperson for the New Jersey U.S. attorney's office declined to comment.
Prosecutors said Levoff exploited his roles as Apple's corporate secretary, head of corporate law and co-chair of a committee that reviewed drafts of the company's results to generate $604,000 of illegal gains on more than $14 million of trades from 2011 to 2016.
Levoff ignored quarterly "blackout periods" that barred trading before Apple's results were released and violated the company's broader insider trading policy that he himself was responsible for enforcing, prosecutors said.
Apple, based in Cupertino, California, fired Levoff in September 2018, five months before he was criminally charged.
The case is U.S. v. Levoff, U.S. District Court, District of New Jersey, No. 19-cr-00780.
(Reporting by David Thomas Editing by David Bario and Lisa Shumaker)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By David Thomas Dec 7 (Reuters) - Apple'sAPPL.O former top corporate lawyer will receive no prison time after pleading guilty last year to U.S. insider trading charges, a judge said on Thursday. U.S. District Judge William Martini in Newark, New Jersey, sentenced Gene Levoff to four years of probation and 2,000 hours of community service. A lawyer for Levoff, Kevin Marino, said in an email that they were "extremely pleased" for what he called a "fair and appropriate sentence of probation." | By David Thomas Dec 7 (Reuters) - Apple'sAPPL.O former top corporate lawyer will receive no prison time after pleading guilty last year to U.S. insider trading charges, a judge said on Thursday. U.S. District Judge William Martini in Newark, New Jersey, sentenced Gene Levoff to four years of probation and 2,000 hours of community service. The case is U.S. v. Levoff, U.S. District Court, District of New Jersey, No. | U.S. District Judge William Martini in Newark, New Jersey, sentenced Gene Levoff to four years of probation and 2,000 hours of community service. Prosecutors said Levoff exploited his roles as Apple's corporate secretary, head of corporate law and co-chair of a committee that reviewed drafts of the company's results to generate $604,000 of illegal gains on more than $14 million of trades from 2011 to 2016. Levoff ignored quarterly "blackout periods" that barred trading before Apple's results were released and violated the company's broader insider trading policy that he himself was responsible for enforcing, prosecutors said. | By David Thomas Dec 7 (Reuters) - Apple'sAPPL.O former top corporate lawyer will receive no prison time after pleading guilty last year to U.S. insider trading charges, a judge said on Thursday. U.S. District Judge William Martini in Newark, New Jersey, sentenced Gene Levoff to four years of probation and 2,000 hours of community service. Prosecutors said Levoff exploited his roles as Apple's corporate secretary, head of corporate law and co-chair of a committee that reviewed drafts of the company's results to generate $604,000 of illegal gains on more than $14 million of trades from 2011 to 2016. |
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12204.0 | 2023-12-07 00:00:00 UTC | Nasdaq ends sharply higher as Alphabet and AMD fuel AI surge | AAPL | https://www.nasdaq.com/articles/nasdaq-ends-sharply-higher-as-alphabet-and-amd-fuel-ai-surge-0 | (Updated at 4:10 p.m. ET/ 2110 GMT)
*
Investors cheer Alphabet's new AI model
*
Advanced Micro Devices climbs after AI-chip market
forecast
*
Weekly jobless claims lower than expected
*
Indexes: S&P 500 +0.80%, Nasdaq +1.37%, Dow +0.18%
*
By Noel Randewich and Shristi Achar A
Dec 7 (Reuters) - The Nasdaq ended sharply higher on
Thursday after Alphabet and Advanced Micro Devices sparked a
megacap rally on fresh optimism about artificial intelligence.
Shares of Alphabet jumped 5.3% as analysts cheered
the launch of the Google-parent's newest AI model, while AMD
soared nearly 10% after the company estimated the potential
market for its data center AI chips could reach $45 billion this
year.
Other heavyweight tech-related stocks also gained, with
Nvidia and Meta Platforms rising over 2%,
Amazon up 1.6% and Apple 1% higher.
The Philadelphia semiconductor index <.SOX> jumped 2.8%,
increasing its 2023 gain to 48%, much of that fueled by bets
about the future of AI.
"Today it's an AMD-Google rally. There's a contagion effect
across the market. Everyone wants to get on the bandwagon," said
Jay Hatfield, CEO of Infrastructure Capital Management in New
York.
"We're kind of in this weird market, a tag-team market,
where one day tech leads, and then the next day value and the
broad market lead."
The S&P 500 <.SPX> has steadily climbed since the end of
October on expectations the Federal Reserve has finished its
campaign of interest rate hikes and that it could begin cutting
rates in March.
The S&P 500 climbed 0.80% to end the session at 4,585.59
points, with 1.8 stocks in the index gaining for each one that
fell.
The most traded stock in the S&P 500 was Tesla ,
with $25.7 billion worth of shares changing hands during the
session. The shares rose 1.37%.
The Nasdaq Composite <.IXIC> jumped 1.37% to 14,339.99
points, while Dow Jones Industrial Average <.DJI> rose 0.18% to
36,117.57 points.
Volume on U.S. exchanges was relatively heavy, with 11.2
billion shares traded, compared to an average of 10.8 billion
shares over the previous 20 sessions.
Traders have almost fully priced in the likelihood of the
Fed keeping rates unchanged at its meeting next week.
Data on Thursday showed the number of Americans filing new
claims for unemployment benefits increased less than expected
last week to a seasonally adjusted 220,000 for the week.
A Labor Department jobs report due on Friday could hint at
how quickly the U.S. economy is softening and may sway
expectations about when the Fed is likely to begin cutting
rates. Non-farm payrolls are expected to have increased by
180,000 jobs last month after rising by 150,000 in October.
Interest rate futures imply a nearly 64% chance of a rate
cut as soon as March, according to the CME Group's FedWatch
tool.
Limiting gains in the Dow, shares of Merck fell 1.7%
after the drugmaker's immunotherapy combination failed in a lung
cancer study.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Chips vs S&P 500 over past 24 months https://tmsnrt.rs/489vb2b
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Amruta Khandekar and Shristi Achar A in Bangalore
and by Noel Randewich in Oakland, Calif.; Editing by Saumyadeb
Chakrabarty, Anil D'Silva and Richard Chang)
(([email protected]))
Keywords: USA STOCKS/ (UPDATE 7)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Noel Randewich and Shristi Achar A Dec 7 (Reuters) - The Nasdaq ended sharply higher on Thursday after Alphabet and Advanced Micro Devices sparked a megacap rally on fresh optimism about artificial intelligence. A Labor Department jobs report due on Friday could hint at how quickly the U.S. economy is softening and may sway expectations about when the Fed is likely to begin cutting rates. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Chips vs S&P 500 over past 24 months https://tmsnrt.rs/489vb2b ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Amruta Khandekar and Shristi Achar A in Bangalore and by Noel Randewich in Oakland, Calif.; Editing by Saumyadeb Chakrabarty, Anil D'Silva and Richard Chang) (([email protected])) | By Noel Randewich and Shristi Achar A Dec 7 (Reuters) - The Nasdaq ended sharply higher on Thursday after Alphabet and Advanced Micro Devices sparked a megacap rally on fresh optimism about artificial intelligence. The S&P 500 climbed 0.80% to end the session at 4,585.59 points, with 1.8 stocks in the index gaining for each one that fell. The Nasdaq Composite <.IXIC> jumped 1.37% to 14,339.99 points, while Dow Jones Industrial Average <.DJI> rose 0.18% to 36,117.57 points. | By Noel Randewich and Shristi Achar A Dec 7 (Reuters) - The Nasdaq ended sharply higher on Thursday after Alphabet and Advanced Micro Devices sparked a megacap rally on fresh optimism about artificial intelligence. Shares of Alphabet jumped 5.3% as analysts cheered the launch of the Google-parent's newest AI model, while AMD soared nearly 10% after the company estimated the potential market for its data center AI chips could reach $45 billion this year. The S&P 500 <.SPX> has steadily climbed since the end of October on expectations the Federal Reserve has finished its campaign of interest rate hikes and that it could begin cutting rates in March. | By Noel Randewich and Shristi Achar A Dec 7 (Reuters) - The Nasdaq ended sharply higher on Thursday after Alphabet and Advanced Micro Devices sparked a megacap rally on fresh optimism about artificial intelligence. The S&P 500 climbed 0.80% to end the session at 4,585.59 points, with 1.8 stocks in the index gaining for each one that fell. Data on Thursday showed the number of Americans filing new claims for unemployment benefits increased less than expected last week to a seasonally adjusted 220,000 for the week. |
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12205.0 | 2023-12-07 00:00:00 UTC | US STOCKS-Alphabet and AMD fuel AI rally on Nasdaq | AAPL | https://www.nasdaq.com/articles/us-stocks-alphabet-and-amd-fuel-ai-rally-on-nasdaq | By Noel Randewich and Shristi Achar A
Dec 7 (Reuters) - The Nasdaq surged on Thursday, with Alphabet and Advanced Micro Devices sparking a megacap rally on fresh optimism about artificial intelligence.
Shares of Alphabet GOOGL.O jumped over 5% as analysts cheered the launch of the Google-parent's newest AI model, while AMD soared more than 9% after the company estimated the potential market for its data center AI chips could reach $45 billion this year.
Other heavyweight tech-related stocks also gained, with Nvidia NVDA.O and Amazon AMZN.O climbing nearly 2%, Meta Platforms META.O rising 2.8% and Apple AAPL.O up about 1%.
The Philadelphia semiconductor index .SOX jumped 2.4%, bringing its 2023 gain to 47%, much of that fueled by bets about the future of AI.
"Today it's an AMD-Google rally. There's a contagion effect across the market. Everyone wants to get on the bandwagon," said Jay Hatfield, CEO of Infrastructure Capital Management in New York.
"We're kind of in this weird market, a tag-team market, where one day tech leads, and then the next day value and the broad market lead."
The S&P 500 .SPXhas steadily climbed since the end of October on expectations the Federal Reserve has finished its campaign of interest rate hikes and that it could begin cutting rates in March.
The S&P 500 rose 0.78% to 4,585.04 points. Two stocks gained in the index for every one that fell.
The Nasdaq Composite Index .IXICgained 1.28% at 14,328.22 points, while the Dow Jones Industrial Average .DJIwas up 0.23% at 36,138.93.
Traders have almost fully priced in the likelihood of the Fed keeping rates unchanged at its meeting next week.
Data on Thursday showed the number of Americans filing new claims for unemployment benefits increased less than expected last week to a seasonally adjusted 220,000 for the week.
A Labor Department jobs report due on Friday could hint at how quickly the U.S. economy is softening and may sway expectations about when the Fed is likely to begin cutting rates. Non-farm payrolls are expected to have increased by 180,000 jobs last month after rising by 150,000 in October.
Interest rate futures imply a nearly 64% chance of a rate cut as soon as March, according to the CME Group's FedWatch tool.
Limiting gains in the Dow, shares of MerckMRK.N fell 1.2% after the drugmaker's immunotherapy combination failed in a lung cancer study.
The S&P 500 posted 15 new highs and no new lows; the Nasdaq recorded 64 new highs and 85 new lows.
(Reporting by Amruta Khandekar and Shristi Achar A in Bangalore and by Noel Randewich in Oakland, Calif.; Editing by Saumyadeb Chakrabarty, Anil D'Silva and Richard Chang)
(([email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other heavyweight tech-related stocks also gained, with Nvidia NVDA.O and Amazon AMZN.O climbing nearly 2%, Meta Platforms META.O rising 2.8% and Apple AAPL.O up about 1%. By Noel Randewich and Shristi Achar A Dec 7 (Reuters) - The Nasdaq surged on Thursday, with Alphabet and Advanced Micro Devices sparking a megacap rally on fresh optimism about artificial intelligence. A Labor Department jobs report due on Friday could hint at how quickly the U.S. economy is softening and may sway expectations about when the Fed is likely to begin cutting rates. | Other heavyweight tech-related stocks also gained, with Nvidia NVDA.O and Amazon AMZN.O climbing nearly 2%, Meta Platforms META.O rising 2.8% and Apple AAPL.O up about 1%. By Noel Randewich and Shristi Achar A Dec 7 (Reuters) - The Nasdaq surged on Thursday, with Alphabet and Advanced Micro Devices sparking a megacap rally on fresh optimism about artificial intelligence. The S&P 500 .SPXhas steadily climbed since the end of October on expectations the Federal Reserve has finished its campaign of interest rate hikes and that it could begin cutting rates in March. | Other heavyweight tech-related stocks also gained, with Nvidia NVDA.O and Amazon AMZN.O climbing nearly 2%, Meta Platforms META.O rising 2.8% and Apple AAPL.O up about 1%. Shares of Alphabet GOOGL.O jumped over 5% as analysts cheered the launch of the Google-parent's newest AI model, while AMD soared more than 9% after the company estimated the potential market for its data center AI chips could reach $45 billion this year. "We're kind of in this weird market, a tag-team market, where one day tech leads, and then the next day value and the broad market lead." | Other heavyweight tech-related stocks also gained, with Nvidia NVDA.O and Amazon AMZN.O climbing nearly 2%, Meta Platforms META.O rising 2.8% and Apple AAPL.O up about 1%. By Noel Randewich and Shristi Achar A Dec 7 (Reuters) - The Nasdaq surged on Thursday, with Alphabet and Advanced Micro Devices sparking a megacap rally on fresh optimism about artificial intelligence. The S&P 500 .SPXhas steadily climbed since the end of October on expectations the Federal Reserve has finished its campaign of interest rate hikes and that it could begin cutting rates in March. |
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12206.0 | 2023-12-07 00:00:00 UTC | Tesla's Dojo supercomputer head leaves, former Apple exec to lead - Bloomberg News | AAPL | https://www.nasdaq.com/articles/teslas-dojo-supercomputer-head-leaves-former-apple-exec-to-lead-bloomberg-news | Adds detail in paragraph 5, background in paragraphs 7,8
Dec 7 (Reuters) - Tesla's TSLA.O Dojo supercomputer project lead Ganesh Venkataramanan has left the company, Bloomberg News reported on Thursday citing people familiar with the matter.
Peter Bannon, a former Apple AAPL.O executive and director at Tesla for the last seven years, is now leading the project, the report said.
The Dojo supercomputer was designed to process vast amounts of data and video from Tesla cars to train the automaker's autonomous-driving software.
The world's most valuable automaker did not immediately respond to a Reuters request for comment.
Venkataramanan no longer appeared in Tesla's internal directories, the report added citing a source.
Tesla started production of the supercomputer to train artificial intelligence (AI) models for self-driving cars in July and plans to spend more than $1 billion on Dojo through the next year.
Morgan Stanley in September said Tesla's Dojo supercomputer could power a near $600 billion surge in the company's market value by helping speed up its foray into robotaxis and software services.
Dojo can open up new addressable markets that "extend well beyond selling vehicles at a fixed price," Morgan Stanley analysts led by Adam Jonas had said.
(Reporting by Chavi Mehta and Akash Sriram in Bengaluru; Editing by Maju Samuel and Krishna Chandra Eluri)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Peter Bannon, a former Apple AAPL.O executive and director at Tesla for the last seven years, is now leading the project, the report said. Tesla started production of the supercomputer to train artificial intelligence (AI) models for self-driving cars in July and plans to spend more than $1 billion on Dojo through the next year. Morgan Stanley in September said Tesla's Dojo supercomputer could power a near $600 billion surge in the company's market value by helping speed up its foray into robotaxis and software services. | Peter Bannon, a former Apple AAPL.O executive and director at Tesla for the last seven years, is now leading the project, the report said. Adds detail in paragraph 5, background in paragraphs 7,8 Dec 7 (Reuters) - Tesla's TSLA.O Dojo supercomputer project lead Ganesh Venkataramanan has left the company, Bloomberg News reported on Thursday citing people familiar with the matter. The Dojo supercomputer was designed to process vast amounts of data and video from Tesla cars to train the automaker's autonomous-driving software. | Peter Bannon, a former Apple AAPL.O executive and director at Tesla for the last seven years, is now leading the project, the report said. Adds detail in paragraph 5, background in paragraphs 7,8 Dec 7 (Reuters) - Tesla's TSLA.O Dojo supercomputer project lead Ganesh Venkataramanan has left the company, Bloomberg News reported on Thursday citing people familiar with the matter. Tesla started production of the supercomputer to train artificial intelligence (AI) models for self-driving cars in July and plans to spend more than $1 billion on Dojo through the next year. | Peter Bannon, a former Apple AAPL.O executive and director at Tesla for the last seven years, is now leading the project, the report said. Adds detail in paragraph 5, background in paragraphs 7,8 Dec 7 (Reuters) - Tesla's TSLA.O Dojo supercomputer project lead Ganesh Venkataramanan has left the company, Bloomberg News reported on Thursday citing people familiar with the matter. The Dojo supercomputer was designed to process vast amounts of data and video from Tesla cars to train the automaker's autonomous-driving software. |
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12207.0 | 2023-12-07 00:00:00 UTC | Dow Movers: MRK, AAPL | AAPL | https://www.nasdaq.com/articles/dow-movers%3A-mrk-aapl | In early trading on Thursday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.3%. Year to date, Apple registers a 49.9% gain.
And the worst performing Dow component thus far on the day is Merck, trading down 1.5%. Merck is lower by about 6.2% looking at the year to date performance.
Two other components making moves today are Johnson & Johnson, trading down 1.1%, and Caterpillar, trading up 0.9% on the day.
VIDEO: Dow Movers: MRK, AAPL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | VIDEO: Dow Movers: MRK, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.3%. And the worst performing Dow component thus far on the day is Merck, trading down 1.5%. | VIDEO: Dow Movers: MRK, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.3%. And the worst performing Dow component thus far on the day is Merck, trading down 1.5%. | VIDEO: Dow Movers: MRK, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.3%. And the worst performing Dow component thus far on the day is Merck, trading down 1.5%. | VIDEO: Dow Movers: MRK, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Dow component thus far on the day is Merck, trading down 1.5%. Merck is lower by about 6.2% looking at the year to date performance. |
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12208.0 | 2023-12-07 00:00:00 UTC | 3D Systems (DDD) Up 27.9% Since Last Earnings Report: Can It Continue? | AAPL | https://www.nasdaq.com/articles/3d-systems-ddd-up-27.9-since-last-earnings-report%3A-can-it-continue | A month has gone by since the last earnings report for 3D Systems (DDD). Shares have added about 27.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is 3D Systems due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
3D Systems Q3 Earnings Beat Estimates, Revenues Miss
3D Systems reported third-quarter 2023 non-GAAP earnings of 1 cent per share, comfortably beating the Zacks Consensus Estimate of a loss of 6 cents. The company had reported a loss of 5 cents per share in the year-ago quarter.
The company reported revenues of $123.8 million, which declined 6.4% year over year and lagged the consensus mark by 0.07%.
In the third quarter, Product revenues represented 42.4% of total revenues and decreased 18.3% to $80.4 million. The figure lagged the Zacks Consensus Estimate by 2.05%.
Services revenues, which accounted for the remaining 35% of revenues, jumped 20.8% year over year to $43.4 million. The figure beat the consensus mark by 4.27%.
Quarter Details
In the third quarter, on the basis of market type, Healthcare revenues fell 18.3% year over year to $52.4 million. On a constant-currency basis, the segment’s revenues plunged 19.5% year over year, mainly due to continued softness across the dental orthodontic market.
The Industrial Division’s revenues increased 4.9% year over year to $71.4 million. On a constant-currency basis, the segment’s revenues increased 1.8%.
3D Systems’ non-GAAP gross profit increased 5% year over year to $55.5 million. The non-GAAP gross profit margin expanded 490 basis points to 44.8%, primarily driven by improved operational efficiencies and a favorable mix.
Adjusted EBITDA was $4.7 million against negative adjusted EBITDA of $0.3 million, benefiting from improved operational efficiencies, favorable mix and lower incentive compensation expense.
Balance Sheet
As of Sep 30, 2023, cash, cash equivalents and short-term investments were $445.6 million, lower than $491.6 million as of Jun 30.
As of Sep 30, 2023, 3D Systems had a total debt of $451.5 million, slightly up from $450.8 million as of Jun 30.
Restructuring Details
3D Systems announced a restructuring initiative in October 2023 that is expected to deliver incremental cost savings of $45 - $55 million by the end of 2024.
It plans to release 39 new printer systems in 2024.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -8.33% due to these changes.
VGM Scores
At this time, 3D Systems has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, 3D Systems has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
3D Systems belongs to the Zacks Computer - Mini computers industry. Another stock from the same industry, Apple (AAPL), has gained 5.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Apple reported revenues of $89.5 billion in the last reported quarter, representing a year-over-year change of -0.7%. EPS of $1.46 for the same period compares with $1.29 a year ago.
For the current quarter, Apple is expected to post earnings of $2.08 per share, indicating a change of +10.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.6% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Apple. Also, the stock has a VGM Score of D.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Another stock from the same industry, Apple (AAPL), has gained 5.2% over the past month. Click to get this free report 3D Systems Corporation (DDD) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Will the recent positive trend continue leading up to its next earnings release, or is 3D Systems due for a pullback? | Click to get this free report 3D Systems Corporation (DDD) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Another stock from the same industry, Apple (AAPL), has gained 5.2% over the past month. 3D Systems Q3 Earnings Beat Estimates, Revenues Miss 3D Systems reported third-quarter 2023 non-GAAP earnings of 1 cent per share, comfortably beating the Zacks Consensus Estimate of a loss of 6 cents. | Click to get this free report 3D Systems Corporation (DDD) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Another stock from the same industry, Apple (AAPL), has gained 5.2% over the past month. 3D Systems Q3 Earnings Beat Estimates, Revenues Miss 3D Systems reported third-quarter 2023 non-GAAP earnings of 1 cent per share, comfortably beating the Zacks Consensus Estimate of a loss of 6 cents. | Another stock from the same industry, Apple (AAPL), has gained 5.2% over the past month. Click to get this free report 3D Systems Corporation (DDD) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Will the recent positive trend continue leading up to its next earnings release, or is 3D Systems due for a pullback? |
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12209.0 | 2023-12-07 00:00:00 UTC | 2 No-Brainer Stocks I'd Buy Right Now Without Hesitation | AAPL | https://www.nasdaq.com/articles/2-no-brainer-stocks-id-buy-right-now-without-hesitation-2 | 2023 is gearing up to close on a promising note for the U.S. stock market, a marked change from the disappointing performance of 2022. The benchmark S&P 500 index has gained nearly 20% so far this year and is up by 28% from its bear-market low of October 2022. The technology-heavy Nasdaq Composite has also gained a solid 37% so far in 2023.
Now's a great time for investors to consider picking up stocks that are riding solid secular tailwinds such as artificial intelligence (AI) and digital payments. Nvidia (NASDAQ: NVDA) and PayPal (NASDAQ: PYPL) are piquing my interest as impressive buy-and-hold opportunities for long-term investors.
1. Nvidia
Accelerated-computing leader Nvidia has consistently surpassed analyst revenue and earnings estimates for over a decade and has posted blowout quarterly results throughout 2023. Unsurprisingly, shares of the company have gained nearly 220% so far this year.
Nvidia has been very successful in capitalizing on the AI trend thanks to its well-established dominance in the GPU space. The increasing adoption of AI and machine learning has driven up demand for Nvidia's cutting-edge AI GPUs, far more than the current supply. According to some estimates, Nvidia now accounts for nearly 80% of the AI chip market. Plus, the company's Compute Unified Device Architecture (CUDA) parallel programming platform and programming model used for general computing on GPUs is also benefiting from a sticky user base. The CUDA software toolkit has been used by nearly 4 million developers and downloaded over 40 million times.
Nvidia's data center segment is a major growth driver, with revenue surging by 279% year over year to $14.5 billion in the third quarter. CEO Jensen Huang has estimated that $1 trillion worth of data center infrastructure will be upgraded in the next four years to optimize them for AI workloads. Considering Nvidia's existing moat in this market and its commitment to continuous innovation, the company seems well positioned to leverage this opportunity.
Furthermore, Nvidia's gaming segment revenue grew by 81% year over year to nearly $3 billion in the third quarter. While gaming GPU demand has been muted in the past few quarters mainly due to the lackluster PC market, the third-quarter performance hints at a recovery in this segment.
Nvidia stock trades at a price-to-sales (P/S) ratio of 26, far higher than the median semiconductor industry multiple of 3. While this may seem quite expensive, the company's growth potential in the rapidly growing data center market and its AI capabilities make it an obvious pick for the next decade. Investors could also limit their risk by opting for a dollar-cost-averaging strategy and building a position in Nvidia over time.
2. PayPal
Once a hot favorite of the stock market, fintech company PayPal is currently trading nearly 81% down from its peak. In the past year, the company has faced a challenging phase marked by a significant drop in consumer discretionary spending and multiple transitions and changes in its roster of executives. With people moving back to shopping in physical stores, PayPal has also seen a modest decline in active accounts in the past three quarters. Despite this, the company's core business has proved quite resilient and is now showing signs of recovery.
In the third quarter of fiscal 2023, PayPal's revenue was up 8% year over year to $7.4 billion, while non-GAAP (adjusted) earnings per share (EPS) surged by 20% to $1.30. The metrics are moving in the right direction, especially as newly appointed Chief Executive Officer Alex Chriss plans to focus on PayPal's profitable growth by streamlining operations and reducing costs. Instead of focusing on just increasing active accounts, the CEO is now aiming for high-quality customer growth.
Undoubtedly, PayPal has failed to grow rapidly in the past year, posting only high-single-digit revenue growth. While this is disappointing for a digital payments behemoth, the company is now attempting to reaccelerate its growth by improving its product offerings and go-to-market strategy.
The company has rolled out passkeys to over 10 million customers to improve the sign-in experience, set up fraud alerts for all the cards in the PayPal wallet, and included PayPal- and Venmo-branded credit and debit cards in Apple and Google wallets. The company also plans to leverage data collected from its network (428 million active accounts, which include 35 million merchants) to personalize the branded checkout experience and make it more smooth.
PayPal is currently trading at a price-to-sales ratio of 2.6, far lower than its five-year average of 6 times. This bargain-basement price compensates investors for most of its headwinds. Considering the company's focus on profitability and innovations, the stock seems to have an impressive upside in the long run, making it an attractive buy-and-hold for the next decade.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Manali Bhade has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Nvidia, and PayPal. The Motley Fool recommends the following options: short December 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While gaming GPU demand has been muted in the past few quarters mainly due to the lackluster PC market, the third-quarter performance hints at a recovery in this segment. In the past year, the company has faced a challenging phase marked by a significant drop in consumer discretionary spending and multiple transitions and changes in its roster of executives. The metrics are moving in the right direction, especially as newly appointed Chief Executive Officer Alex Chriss plans to focus on PayPal's profitable growth by streamlining operations and reducing costs. | Nvidia's data center segment is a major growth driver, with revenue surging by 279% year over year to $14.5 billion in the third quarter. While this may seem quite expensive, the company's growth potential in the rapidly growing data center market and its AI capabilities make it an obvious pick for the next decade. The Motley Fool has positions in and recommends Alphabet, Apple, Nvidia, and PayPal. | Nvidia's data center segment is a major growth driver, with revenue surging by 279% year over year to $14.5 billion in the third quarter. Furthermore, Nvidia's gaming segment revenue grew by 81% year over year to nearly $3 billion in the third quarter. PayPal Once a hot favorite of the stock market, fintech company PayPal is currently trading nearly 81% down from its peak. | According to some estimates, Nvidia now accounts for nearly 80% of the AI chip market. The company also plans to leverage data collected from its network (428 million active accounts, which include 35 million merchants) to personalize the branded checkout experience and make it more smooth. The Motley Fool has positions in and recommends Alphabet, Apple, Nvidia, and PayPal. |
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12210.0 | 2023-12-07 00:00:00 UTC | Guru Fundamental Report for AAPL | AAPL | https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-25 | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. |
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12211.0 | 2023-12-07 00:00:00 UTC | Best Stock to Buy: Apple vs. Amazon | AAPL | https://www.nasdaq.com/articles/best-stock-to-buy%3A-apple-vs.-amazon | Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are two of the most recognizable brands in the consumer market. One dominates in tech devices, holding leading market shares in most of its product categories. Meanwhile, the other is the world's biggest e-commerce firm, with a lucrative cloud business to boot.
These tech companies have revolutionized their respective industries and are continuing to innovate, making their stocks attractive long-term options. However, before filling up on shares in Apple and Amazon, make the most of your investment by determining which is the better buy. Just because a company leads its industry doesn't necessarily mean its stock trades at the right price.
So, let's assess whether Apple or Amazon is the better stock to buy right now.
Apple: The cash to go the distance
As the world's most valuable company with a market cap of nearly $3 trillion, Apple has a long history of offering investors consistent gains. The tech giant has faced challenges over the last year as macroeconomic headwinds curbed consumer spending and led to repeated declines in product sales. However, its balance sheet remains an attractive reason to invest, with the company on solid financial footing despite difficult market conditions.
Data by YCharts.
Apple ended its fiscal 2023 with nearly $100 billion in free cash flow and $162 billion in cash and marketable securities. In fact, as seen in the table above, Apple has significantly more free cash flow than some of its biggest competitors.
Market declines may have sent revenue tumbling 3% year over year in 2023, but the iPhone maker is a reliable buy with the funds to overcome current hurdles and continue investing in high-growth markets.
For instance, Apple's research and development spending rose by $3.6 billion this year, with much of that going to its expansion in generative artificial intelligence (AI). The company isn't as far into its AI journey as other tech giants, but it has the brand loyalty and cash to go far in the sector.
Amazon: Growth prospects in multiple markets
Wall Street has grown particularly bullish about Amazon this year, with its stock up 72% since Jan. 1. The company has rallied investors with a return to profitability in its e-commerce business and an expanding role in AI.
Amazon may have started out as an online book retailer in 1994, but it has expanded to so much more. The company became a behemoth in tech, profiting from the development of several markets.
According to Statista, e-commerce sales made up about 19% of all retail purchases globally in 2022. That figure is expected to hit 23% by 2027, with Amazon well positioned to see major gains from that growth.
Moreover, the company has achieved a lucrative position in the cloud market with Amazon Web Services (AWS). The cloud platform is responsible for a 32% market share, significantly ahead of competitors Microsoft's Azure and Alphabet's Google Cloud. Meanwhile, AWS delivers attractive profit margins of about 30%, allowing the company to lean less on its retail business amid economic challenges.
Amazon's dominance in cloud computing could play to its advantage in the AI market as businesses increasingly seek AI tools to boost efficiency, and the company continues adding such services to AWS.
Is Apple or Amazon the better stock to buy?
Apple and Amazon likely have bright futures, and it's hard to go wrong with either over the long term. These companies are favorites among consumers, having built up immense brand loyalty with their users.
However, when comparing both companies' price-to-earnings ratios (P/E) and price-to-free cash flow ratios, it looks like shares in Apple currently offer more value. See the chart below.
Data by YCharts.
P/E and price-to-free cash flow are useful metrics to determine a stock's value. For both, the lower the figure, the cheaper the share price.
Apple's P/E of 31 and price-to-free cash flow of 30 aren't exactly major bargains. However, they are significantly lower than the same metrics for Amazon. Apple's solid financials and wealth of cash mean its stock is trading at a more attractive price point, with its shares the better buy right now.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are two of the most recognizable brands in the consumer market. The tech giant has faced challenges over the last year as macroeconomic headwinds curbed consumer spending and led to repeated declines in product sales. However, its balance sheet remains an attractive reason to invest, with the company on solid financial footing despite difficult market conditions. | Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are two of the most recognizable brands in the consumer market. However, when comparing both companies' price-to-earnings ratios (P/E) and price-to-free cash flow ratios, it looks like shares in Apple currently offer more value. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. | Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are two of the most recognizable brands in the consumer market. Apple: The cash to go the distance As the world's most valuable company with a market cap of nearly $3 trillion, Apple has a long history of offering investors consistent gains. Amazon: Growth prospects in multiple markets Wall Street has grown particularly bullish about Amazon this year, with its stock up 72% since Jan. 1. | Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are two of the most recognizable brands in the consumer market. Just because a company leads its industry doesn't necessarily mean its stock trades at the right price. Is Apple or Amazon the better stock to buy? |
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12212.0 | 2023-12-07 00:00:00 UTC | 42% of Berkshire Hathaway's Entire Value Comes From Just 2 Investment Holdings | AAPL | https://www.nasdaq.com/articles/42-of-berkshire-hathaways-entire-value-comes-from-just-2-investment-holdings | Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is a sprawling conglomerate worth over $770 billion.
While its main business is insurance, much of Berkshire's value comes from its investment portfolio. Chairman and CEO Warren Buffett has generated incredible market-beating returns for shareholders through prudent long-term buy-and-hold investing. Today, Berkshire's portfolio is worth about $361 billion.
But just two holdings account for over 42% of Berkshire Hathaway's entire market capitalization. Here they are.
Image source: The Motley Fool.
Apple (22%)
At Berkshire Hathaway's annual meeting in May, Buffett called Apple (NASDAQ: AAPL) "a better business than any we own." He said he'd love to own more of the company, and he continually claims a greater share of the business thanks to Apple's generous share repurchase program.
Today, Berkshire's 915 million-plus shares of Apple account for over 48% of its equity portfolio. They're worth about $173 billion, or 22.5% of Berkshire's market cap.
There's good reason for investors to like Apple so much. It's positioned itself as the platform owner when it comes to smartphones, taking a more than 50% market share in the United States. Around the world, it counts over 2 billion active devices.
Its combination of hardware, software, and services makes its products extremely sticky and allows it to integrate its products to work closely together. iPhone users are more likely to buy another Apple product than a non-Apple alternative, creating a virtuous cycle of growing product sales.
But the services segment is where Apple's seeing most of its growth lately. That's bolstered by its growing active device user base. As the platform owner, it's able to exercise a lot of leverage to monetize its users through services, including its App Store, where third-party developers can sell their software to iOS and Mac users.
That all results in tremendous amounts of cash flow every year. Last year, the company generated $110.5 billion worth of cash from operations. It uses all that cash to return money to shareholders through a robust stock repurchase program, with $77.5 billion repurchased in 2023, and a modest dividend, with $15 billion in dividend payments in 2023.
While the shares trade at around 29 times 2024 earnings estimates, Apple deserves a premium valuation -- but not because it has outsize growth opportunities, although the Vision Pro and its AI bets could turn out to be big opportunities. The reason it deserves that valuation is that Apple's strong net cash position of $57 billion ($158 billion in cash and securities) and its massive buybacks distort the multiple that long-term investors pay for future earnings.
With Apple as Buffett's largest stock position by far, investors should consider the stock themselves. And there's no need to be concerned about how heavily concentrated Berkshire's position is in the stock.
Cash and U.S. Treasury bills (20%+)
Berkshire Hathaway ended the third quarter with $157.2 billion worth of cash and cash equivalents. A growing portion of those funds are parked in U.S. Treasury bills, with maturities between three months and one year. In fact, Buffett moved $29 billion into those longer-dated Treasury bills last quarter, shifting funds from cash and shorter-duration bonds.
The move worked well. The subsequent drop in interest rates has surely pushed the value of those Treasury securities higher. Even if Berkshire holds those investments until maturity, it'll earn the equivalent annual yield of more than 5% on the investment.
As a result, Berkshire's cash and equivalents probably account for more than 20% of its market cap as long as Buffett hasn't made any huge shifts in strategy this quarter.
Make no mistake, though: Buffett isn't chasing yield in Treasuries. Quite the opposite. As he writes in every quarterly report, "We insist on safety over yield with respect to short-term investments."
The reason Buffett is stockpiling money in Treasury Bills is that he doesn't see very much on the stock market worth investing in. Indeed, he and the other investment managers at Berkshire have sold more stocks than they bought in each of the past four quarters.
That doesn't mean investors should be piling into Treasuries or stockpiling cash. There are a lot of great opportunities for individual investors. But the fact that Buffett's taking more chips off the table for now is an indication that those opportunities are becoming harder to find in the current environment.
The strong cash position could turn into an advantage for Berkshire Hathaway down the line if we see a big pullback in the stock market. Buffett and his team have a record amount of cash ready to deploy when a big opportunity strikes. In the meantime, Berkshire investors can't be too upset with the higher yields Buffett locked in last quarter.
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Adam Levy has positions in Apple. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (22%) At Berkshire Hathaway's annual meeting in May, Buffett called Apple (NASDAQ: AAPL) "a better business than any we own." Chairman and CEO Warren Buffett has generated incredible market-beating returns for shareholders through prudent long-term buy-and-hold investing. In fact, Buffett moved $29 billion into those longer-dated Treasury bills last quarter, shifting funds from cash and shorter-duration bonds. | Apple (22%) At Berkshire Hathaway's annual meeting in May, Buffett called Apple (NASDAQ: AAPL) "a better business than any we own." The reason it deserves that valuation is that Apple's strong net cash position of $57 billion ($158 billion in cash and securities) and its massive buybacks distort the multiple that long-term investors pay for future earnings. Cash and U.S. Treasury bills (20%+) Berkshire Hathaway ended the third quarter with $157.2 billion worth of cash and cash equivalents. | Apple (22%) At Berkshire Hathaway's annual meeting in May, Buffett called Apple (NASDAQ: AAPL) "a better business than any we own." The reason it deserves that valuation is that Apple's strong net cash position of $57 billion ($158 billion in cash and securities) and its massive buybacks distort the multiple that long-term investors pay for future earnings. With Apple as Buffett's largest stock position by far, investors should consider the stock themselves. | Apple (22%) At Berkshire Hathaway's annual meeting in May, Buffett called Apple (NASDAQ: AAPL) "a better business than any we own." With Apple as Buffett's largest stock position by far, investors should consider the stock themselves. Cash and U.S. Treasury bills (20%+) Berkshire Hathaway ended the third quarter with $157.2 billion worth of cash and cash equivalents. |
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12213.0 | 2023-12-07 00:00:00 UTC | US STOCKS-Wall St rises on Alphabet boost, payrolls data in focus | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-st-rises-on-alphabet-boost-payrolls-data-in-focus | By Amruta Khandekar and Shristi Achar A
Dec 7 (Reuters) - The Nasdaq led gains among Wall Street's major indexes on Thursday, driven by a rise in Alphabet shares, while investors looked forward to monthly payrolls data for clues on the Federal Reserve's policy actions.
The communication services sub-index.SPLRCLhousing Alphabet advanced 2.8%, leading gains among the 11 major S&P 500 sectors. Other megacap stocks, including Amazon.com AMZN.O and Apple AAPL.O, rose between 1.3% and 1.5% in early trading.
The tech-heavy Nasdaq .IXIC has outperformed peers this year, surging 36% on a rally in megacap stocks that has been powered by enthusiasm around the potential for artificial intelligence. Growing hopes of a cut in interest rates next year have also improved sentiment.
Reports showing weak private payrolls and job openings this week have reinforced expectations the Federal Reserve's furious pace of rate hikes is slowing the economy, potentially allowing the central bank to ease up on its monetary policy next year.
Traders have almost fully priced in the likelihood of the Fed keeping interest rates unchanged at its meeting next week and have nearly 64% odds for a rate cut as soon as March 2024, according to the CME Group's FedWatch tool.
However, some analysts have warned that markets have been too optimistic about rate cuts and also said the upcoming jobs report will be crucial in determining the chances of a soft landing - where the Fed manages to avert a recession.
"They (the Fed) certainly don't have any cuts coming soon, but are data dependent," said Joe Saluzzi, co-manager of trading at Themis Trading. "So if data is in line, that basically keeps the Fed on the current path."
The Labor Department's report, due on Friday, is expected to show that non-farm payrolls increased by 180,000 jobs last month after rising by 150,000 in October.
A separate reading showed initial jobless claims stood at 220,000 for the week ended Dec. 2, lower than estimates of 222,000, according to economists polled by Reuters.
Meanwhile, comments from Bank of Japan Governor Kazuo Ueda added to growing speculation that the central bank could soon shift away from its ultra-easy monetary policy.
At 9:36 a.m. ET, the Dow Jones Industrial Average .DJI was up 30.41 points, or 0.08%, at 36,084.84, the S&P 500 .SPX was up 23.18 points, or 0.51%, at 4,572.52, and the Nasdaq Composite .IXIC was up 128.69 points, or 0.91%, at 14,275.40.
Among other major movers, Advanced Micro DevicesAMD.Orose 4.6%, a day after the chipmaker estimated there was a $45 billion market for its data center artificial intelligence processors this year.
GameStopGME.N slid 3.2% after the videogame retailer missed estimates for quarterly revenue, hurt by rising competition.
Dollar GeneralDG.Nrose 2.4% as the retailer's quarterly results beat estimates.
Advancing issues outnumbered decliners by a 1.49-to-1 ratio on the NYSE and by a 1.21-to-1 ratio on the Nasdaq.
The S&P index recorded 8 new 52-week highs and no new lows, while the Nasdaq recorded 25 new highs and 32 new lows.
(Reporting by Amruta Khandekar and Shristi Achar A; Editing by Saumyadeb Chakrabarty and Anil D'Silva)
(([email protected]; [email protected] https://twitter.com/ShristiAchar;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other megacap stocks, including Amazon.com AMZN.O and Apple AAPL.O, rose between 1.3% and 1.5% in early trading. By Amruta Khandekar and Shristi Achar A Dec 7 (Reuters) - The Nasdaq led gains among Wall Street's major indexes on Thursday, driven by a rise in Alphabet shares, while investors looked forward to monthly payrolls data for clues on the Federal Reserve's policy actions. Reports showing weak private payrolls and job openings this week have reinforced expectations the Federal Reserve's furious pace of rate hikes is slowing the economy, potentially allowing the central bank to ease up on its monetary policy next year. | Other megacap stocks, including Amazon.com AMZN.O and Apple AAPL.O, rose between 1.3% and 1.5% in early trading. By Amruta Khandekar and Shristi Achar A Dec 7 (Reuters) - The Nasdaq led gains among Wall Street's major indexes on Thursday, driven by a rise in Alphabet shares, while investors looked forward to monthly payrolls data for clues on the Federal Reserve's policy actions. Reports showing weak private payrolls and job openings this week have reinforced expectations the Federal Reserve's furious pace of rate hikes is slowing the economy, potentially allowing the central bank to ease up on its monetary policy next year. | Other megacap stocks, including Amazon.com AMZN.O and Apple AAPL.O, rose between 1.3% and 1.5% in early trading. By Amruta Khandekar and Shristi Achar A Dec 7 (Reuters) - The Nasdaq led gains among Wall Street's major indexes on Thursday, driven by a rise in Alphabet shares, while investors looked forward to monthly payrolls data for clues on the Federal Reserve's policy actions. Reports showing weak private payrolls and job openings this week have reinforced expectations the Federal Reserve's furious pace of rate hikes is slowing the economy, potentially allowing the central bank to ease up on its monetary policy next year. | Other megacap stocks, including Amazon.com AMZN.O and Apple AAPL.O, rose between 1.3% and 1.5% in early trading. By Amruta Khandekar and Shristi Achar A Dec 7 (Reuters) - The Nasdaq led gains among Wall Street's major indexes on Thursday, driven by a rise in Alphabet shares, while investors looked forward to monthly payrolls data for clues on the Federal Reserve's policy actions. Reports showing weak private payrolls and job openings this week have reinforced expectations the Federal Reserve's furious pace of rate hikes is slowing the economy, potentially allowing the central bank to ease up on its monetary policy next year. |
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12214.0 | 2023-12-07 00:00:00 UTC | AAPL Stock Outlook : Don’t Be Scared by the Noise | AAPL | https://www.nasdaq.com/articles/aapl-stock-outlook-%3A-dont-be-scared-by-the-noise | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Year-to-date, Apple (NASDAQ:AAPL) stock has risen an impressive 54%. At the same time, it missed expectations and its revenue contracted almost 3% in FY 2023, similarly along with free cash flow and net income. Since 2021, growth has stalled, while operating expenses from R&D have increased, leading many to worry about the future of AAPL stock as R&D expenses grow faster than revenue.
Despite slowing growth, it trades at a P/E ratio of 30.9x compared to the S&Ps 25.24x, over a 22% premium. However, Apple has some key fundamentals that will likely see it continue to be a cash cow in the future.
AAPL Stock and Gen Z
First, it’s a fact that Apple has a firm grip on Gen Z, with 87% saying that they own an iPhone. This isn’t just true for the United States, it’s a trend that is spreading worldwide.
In South Korea, where the most common device is Samsung, only 23% of its population uses an iPhone. However, 52% of people 18-29 own an iPhone. This grew from 44% in just two years. Meanwhile, Samsung’s overall market share has shrunk from 44% to 45%. Globalization will attract more youth to Apple.
Services Are Impressive
Apple’s services segment has grown an impressive 16.3% YoY. Because the services segment is software and inherently high-margin, it has pushed Apple’s overall margin up from 41.8% in 2021 to 44.1% in 2023.
In this time, services have grown to comprise over 35% of the revenue compared to 31%. If this trend continues, margins will continue to improve.
Furthermore, the installed base has continued to grow, providing a steady stream of potential. Since 2018, the installed base has been growing at an average rate of 27% a year. Meanwhile, the percentage of subscribers per installed base has also increased, from roughly 0.18 subscribers per device to 0.5 subscribers per device.
In the future, AI could be a major boost to services revenue. Microsoft’s AI assistant could see $14 billion alone in revenue, with just a 10% take rate of 382 million users. With Apple having access to 2 billion devices, its planned AI rollout will see more usage and could be a major revenue driver.
Dividends and Buybacks
With Apple’s stability in generating cash flow and track record in raising dividends and buying back shares, the stock remains a good long-term investment.
Its 5-year dividend yield is 6.15%, and in the past decade, it has spent almost $600 billion in buying back stores, more than any other U.S. company.
Investors will be rewarded with dividends and buybacks due to the company’s cost control and solid fundamentals.
Valuation
The elephant in the room remains Apple’s valuation and a big reason many are bearish on Apple stock. Looking at its total enterprise value to revenue, it currently trades at 7.59x, just below its all-time high of 8.52x.
For people with a short time horizon, this might mean that Apple’s stock could be risky. The stock’s fundamentals are solid and the business is expected to continue growing with AI integration and attractive software margins.
In addition, Apple’s valuation has lifted as the threat of rising rates has dropped substantially, with inflation cooling. The favorable macro environment, AI applications, and improvement in margins justify Apple’s valuation.
Conclusion
Overall, Apple remains a powerhouse and the device of future generations. Though its valuation seems high, it’s not completely unreasonable. The late Warren Buffet famously advised to buy good businesses at a fair price, and Apple continues to be a good business worthy of holding long term.
Disclaimer: On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post AAPL Stock Outlook : Don’t Be Scared by the Noise appeared first on InvestorPlace. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Year-to-date, Apple (NASDAQ:AAPL) stock has risen an impressive 54%. Since 2021, growth has stalled, while operating expenses from R&D have increased, leading many to worry about the future of AAPL stock as R&D expenses grow faster than revenue. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Year-to-date, Apple (NASDAQ:AAPL) stock has risen an impressive 54%. Since 2021, growth has stalled, while operating expenses from R&D have increased, leading many to worry about the future of AAPL stock as R&D expenses grow faster than revenue. AAPL Stock and Gen Z First, it’s a fact that Apple has a firm grip on Gen Z, with 87% saying that they own an iPhone. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Year-to-date, Apple (NASDAQ:AAPL) stock has risen an impressive 54%. Since 2021, growth has stalled, while operating expenses from R&D have increased, leading many to worry about the future of AAPL stock as R&D expenses grow faster than revenue. AAPL Stock and Gen Z First, it’s a fact that Apple has a firm grip on Gen Z, with 87% saying that they own an iPhone. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Year-to-date, Apple (NASDAQ:AAPL) stock has risen an impressive 54%. Since 2021, growth has stalled, while operating expenses from R&D have increased, leading many to worry about the future of AAPL stock as R&D expenses grow faster than revenue. AAPL Stock and Gen Z First, it’s a fact that Apple has a firm grip on Gen Z, with 87% saying that they own an iPhone. |
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12215.0 | 2023-12-07 00:00:00 UTC | Warren Buffett Is on Track to Make $13.6 Billion in 2023. Here's Exactly How He'll Likely Do It. | AAPL | https://www.nasdaq.com/articles/warren-buffett-is-on-track-to-make-%2413.6-billion-in-2023.-heres-exactly-how-hell-likely-do | We've all heard the old saying, "It takes money to make money." It's no surprise, therefore, to learn that super-wealthy individuals often make a lot of money.
Few people in the world are wealthier than Warren Buffett. And few will add to their wealth as much as the Oracle of Omaha will in 2023. Buffett is on track to make $13.6 billion this year. Here's how he'll likely do it.
Buffett's gold mine
Most of Buffett's fortune is in Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) stock. Berkshire has been a gold mine for Buffett through the years, delivering a gain of close to 37,875x since 1964.
Berkshire has continued to be golden for Buffett in 2023. The share price of the giant conglomerate is up more than 14%. That's enough to add roughly $13.6 billion to Buffett's net worth.
Where did this figure come from? Berkshire's market cap is on pace to increase by around $87 billion this year. Buffett owns 15.6% of the aggregate economic interest of Berkshire's class A and class B shares. His portion of the increase in Berkshire Hathaway's valuation, therefore, is worth roughly $13.6 billion.
Of course, Berkshire's share price could decline over the next few weeks and result in Buffett making less money. However, if we experience a Santa Claus rally, which often takes place at the end of the year, the legendary investor could end up with an even bigger gain.
What made Berkshire Hathaway's stock rise this year?
I promised to explain exactly how Buffett will likely make $13.6 billion in 2023. To do that, I think we need to explore what made Berkshire Hathaway's stock rise this year. What makes any stock go up? As is the case with other products, the laws of supply and demand are the primary drivers of price increases.
The supply of Berkshire Hathaway stock has decreased in 2023 thanks to stock buybacks. Berkshire repurchased $7 billion of its Class A and Class B shares in the first nine months of the year. This isn't a major factor behind the stock's jump in 2023, though, as the buybacks represent only 1% of Berkshire's market cap at the beginning of the year.
We can therefore logically conclude that the demand for Berkshire Hathaway stock has increased quite a bit. Why? Arguably, the biggest reason is that investor sentiment has improved with the overall market rising.
This is especially important for Berkshire because it's invested heavily in other publicly traded companies. During the first three quarters of 2023, Berkshire's investment gains of $38 billion made up more than half of its earnings before income taxes.
One stock especially stands out as a major driver of those hefty investment gains. Nearly 49% of Berkshire's portfolio is invested in Apple (NASDAQ: AAPL). So far in 2023, Apple's share price has soared close to 50%.
Berkshire's stock performance this year is also due in part to the company's underlying business performance. The conglomerate's insurance business has done well, with premiums rising 13.6% year over year in the first three quarters of 2023 to $61.7 billion. Berkshire's utility and energy businesses have performed even better during the period, with operating revenue more than quadrupling to $53.5 billion.
How much will Buffett make in 2024?
Whether or not Buffett's net worth increases in 2024 -- and by how much -- will again depend on how Berkshire Hathaway stock performs. What happens with Berkshire stock will again hinge heavily on Apple and the overall stock market.
The good news for Buffett is that the stock market tends to perform pretty well during U.S. presidential election years. If the U.S. economy continues to roll along, Berkshire's underlying businesses should also grow.
There's no way to know for sure how much Buffett will make next year. However, it won't be surprising if he adds several more billions of dollars to his fortune.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Nearly 49% of Berkshire's portfolio is invested in Apple (NASDAQ: AAPL). This isn't a major factor behind the stock's jump in 2023, though, as the buybacks represent only 1% of Berkshire's market cap at the beginning of the year. During the first three quarters of 2023, Berkshire's investment gains of $38 billion made up more than half of its earnings before income taxes. | Nearly 49% of Berkshire's portfolio is invested in Apple (NASDAQ: AAPL). Buffett's gold mine Most of Buffett's fortune is in Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) stock. That's enough to add roughly $13.6 billion to Buffett's net worth. | Nearly 49% of Berkshire's portfolio is invested in Apple (NASDAQ: AAPL). Buffett's gold mine Most of Buffett's fortune is in Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) stock. The supply of Berkshire Hathaway stock has decreased in 2023 thanks to stock buybacks. | Nearly 49% of Berkshire's portfolio is invested in Apple (NASDAQ: AAPL). How much will Buffett make in 2024? What happens with Berkshire stock will again hinge heavily on Apple and the overall stock market. |
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12216.0 | 2023-12-07 00:00:00 UTC | Zacks Industry Outlook Highlights Apple, HP and 3D Systems | AAPL | https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-apple-hp-and-3d-systems-0 | For Immediate Release
Chicago, IL – December 7, 2023 – Today, Zacks Equity Research discusses Apple AAPL, HP HPQ and 3D Systems DDD.
Industry: Mini-Computers
Link: https://www.zacks.com/commentary/2194223/3-stocks-to-watch-from-the-prospering-computer-industry
The Zacks Computer – Mini Computers industry is benefiting from steady demand for enterprise devices, including laptops, tablets and smartphones. Industry participants like Apple, HP and 3D Systems are benefiting from these trends. The improving availability of 5G-enabled smartphones has been a key catalyst for the industry participants.
The launch of foldable, and AI and ML-infused smartphones, tablets, wearables and hearables is another major growth driver for the industry participants. Robust demand for production printers, materials and software bodes well for 3-D printing solution providers. However, waning demand for consumer PCs and geopolitical challenges, including raging inflation and high interest, are major headwinds.
Industry Description
The Zacks Computer – Mini Computers industry comprises companies that offer smartphones, desktops, laptops, printers, wearables and 3-D printers. Such devices are based either on iOS, MacOS, iPadOS, WatchOS, Microsoft Windows, or Google Chrome and Android operating systems. The companies predominantly use processors from Apple, Intel, AMD, Qualcomm, NVIDIA and Samsung.
Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones. This has been well-supported by faster mobile processors. Laptops, both consumer and commercial, benefit from faster processors, sleek designs and expanded storage facilities. The addition of healthcare features has been driving the demand for wearables.
3 Mini Computer Industry Trends to Watch
Enterprise Adoption Remains Healthy: Strong enterprise demand has been benefiting the industry participants. The growing adoption of a hybrid working environment bodes well for the players, as demand for laptops and tablets is expected to increase. Demand for smart devices that offer facial recognition, retina scans or finger impressions to verify the user for biometrics is gaining traction as enterprises enhance security.
Impressive Form Factor Drives Demand: Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones and tablets. This has been well-supported by faster mobile processors from the likes of Qualcomm, NVIDIA, Apple and Samsung. Improved Internet penetration and speed, along with the evolution of mobile apps, have made smartphones indispensable for consumers.
Improved graphics quality is making smartphones suitable for playing sophisticated games. This is driving the demand for high-end smartphones and opening up significant opportunities for device makers.
PCs Face Extinction Risk: Personal computers (desktops and laptops), be it Windows or Apple’s MacOS-based ones, have been facing the risk of extinction due to the rapid proliferation of smartphones and tablets. Stiff competition from smartphones has compelled global PC makers to not only upgrade hardware frequently but also add apps and cloud-based services to attract consumers. Nevertheless, the emergence of 5G, AI, machine learning and foldable computers is likely to be the key catalysts in expanding the total addressable market of PCs.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Computer – Mini Computers industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #37, which places it in the top 15% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential. Since Oct 31, 2023, the Zacks Consensus Estimate for this industry’s 2024 earnings has moved up 0.3%.
Given the bullish outlook, there are a few stocks worth watching in the sector. But before we present those stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Lags Sector Beats S&P 500
The Zacks Computer – Mini Computers industry has underperformed the broader Zacks Computer and Technology sector but beat the S&P 500 index over the past year.
The industry has gained 33.9% over this period compared with the S&P 500’s return of 16.4% and the broader sector’s rise of 37.8%.
Industry's Current Valuation
On the basis of forward 12-month P/E, which is a commonly used multiple for valuing computer stocks, we see that the industry is currently trading at 27.81X compared with the S&P 500’s 19.17X and the sector’s 24.04X.
Over the last five years, the industry has traded as high as 32.32X and as low as 11.49X, with the median being 24.43X.
3 Computer Stocks to Watch Right Now
3D Systems: This Zacks Rank #1 (Strong Buy) company expects the dental market to stabilize amid the high inventory level in the supply chain and weakness in consumer discretionary spending. You can see the complete list of today’s Zacks #1 Rank stocks here.
3D System expects a slower recovery in 2024 than its earlier expectation. Dental sales are expected to benefit from the continuing migration of orthodontic solutions from metal brackets and wires to clear aligners in the long run. Improved asset management and resource utilization are anticipated to reduce its total inventory significantly in 2024.
The Zacks Consensus Estimate for 2023 loss has narrowed by 7 cents to 13 cents per share over the past 30 days. The stock has declined 38.5% in the year-to-date period.
Apple: This Zacks Rank #3 (Hold) company is benefiting from a steady demand for iPhone devices, as well as an expanding footprint in emerging markets. A growing subscriber base and improving customer engagement are tailwinds for the services business.
Apple currently has more than 1 billion paid subscribers across its Services portfolio. The App Store continues to draw the attention of prominent developers worldwide, helping it offer appealing new apps that drive the App Store’s traffic. A growing number of AI-infused apps will attract subscribers to the App Store.
The Zacks Consensus Estimate for fiscal 2024 earnings has increased by a penny to $6.56 per share over the past 30 days. The stock has gained 37.2% in the year-to-date period.
HP: This Zacks Rank #3 company’s sustained focus on launching the latest and innovative products is likely to help it stay afloat in the current uncertain macroeconomic environment.
Product innovation and differentiations are the key drivers that have helped HPQ maintain its leading position in the PC and printer markets.
The Zacks Consensus Estimate for fiscal 2023 earnings has decreased 1.2% to $3.43 per share over the past 30 days. HP shares have gained 3.7% year to date.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For Immediate Release Chicago, IL – December 7, 2023 – Today, Zacks Equity Research discusses Apple AAPL, HP HPQ and 3D Systems DDD. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report 3D Systems Corporation (DDD) : Free Stock Analysis Report To read this article on Zacks.com click here. Demand for smart devices that offer facial recognition, retina scans or finger impressions to verify the user for biometrics is gaining traction as enterprises enhance security. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report 3D Systems Corporation (DDD) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – December 7, 2023 – Today, Zacks Equity Research discusses Apple AAPL, HP HPQ and 3D Systems DDD. Industry: Mini-Computers Link: https://www.zacks.com/commentary/2194223/3-stocks-to-watch-from-the-prospering-computer-industry The Zacks Computer – Mini Computers industry is benefiting from steady demand for enterprise devices, including laptops, tablets and smartphones. | For Immediate Release Chicago, IL – December 7, 2023 – Today, Zacks Equity Research discusses Apple AAPL, HP HPQ and 3D Systems DDD. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report 3D Systems Corporation (DDD) : Free Stock Analysis Report To read this article on Zacks.com click here. Industry: Mini-Computers Link: https://www.zacks.com/commentary/2194223/3-stocks-to-watch-from-the-prospering-computer-industry The Zacks Computer – Mini Computers industry is benefiting from steady demand for enterprise devices, including laptops, tablets and smartphones. | For Immediate Release Chicago, IL – December 7, 2023 – Today, Zacks Equity Research discusses Apple AAPL, HP HPQ and 3D Systems DDD. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report 3D Systems Corporation (DDD) : Free Stock Analysis Report To read this article on Zacks.com click here. HP shares have gained 3.7% year to date. |
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12217.0 | 2023-12-07 00:00:00 UTC | Apple at a $3 Trillion Market Cap: Buy, Sell, or Hold? | AAPL | https://www.nasdaq.com/articles/apple-at-a-%243-trillion-market-cap%3A-buy-sell-or-hold | Apple (NASDAQ: AAPL) crossed a $3 trillion market capitalization on Tuesday, following a surge in the tech company's stock price this year. The iPhone maker's shares are up about 49% year to date, crushing the S&P 500's 19% gain over this same period.
With such a staggering rise, many shareholders are likely revisiting their investment theses on Apple shares. Now trading at more than 31x earnings, is the tech stock worth its premium valuation? Or is it time to move on, looking for a better place to invest capital?
Though you might imagine shares being overvalued after such an astronomical gain, there's actually good reason to continue holding.
There's more than meets the eye
On the surface, it may be difficult to understand why Apple stock is attracting so much interest from investors this year. After all, revenue fell 3% year over year during fiscal 2023 (the fiscal year ended Sept. 23). This compares to 8% top-line growth in fiscal 2022. But there's more to the story.
First, Apple's financial results in fiscal 2023 were weighed down heavily by foreign-exchange headwinds. In the first, second, third, and fourth quarters of fiscal 2023, the negative impact on Apple's reported year-over-year growth rates was 800, 500, 400, and 200 basis points, respectively. In other words, Apple's momentum with customers is better than its reported revenue figures make it out to be.
Second, Apple's revenue trends improved throughout fiscal 2023. Total revenue fell 4% year over year during the fiscal year's first half and just 1% in the second half.
Finally, Apple's important high-margin services segment has recently seen accelerated momentum, growing an impressive 16% year over year in fiscal Q4. With approximately double the gross profit margin of its hardware sales, this key segment's strong growth played a big role in Apple's 13% year-over-year earnings-per-share growth during the period. By growing earnings so nicely despite a challenging environment, Apple is showing Wall Street its resilience.
Looking ahead
Steadily improving business trends and a promising high-margin services segment is great, but are they enough to justify a price-to-earnings multiple of more than 31? With this final point, I believe so.
This icing on the cake for Apple investors is management's recent guidance. For fiscal Q1, Apple guided for flat revenue, compared to the year-ago quarter. This occurred despite having one less week than in the same quarter of last year and in the face of foreign-exchange headwinds that are expected to pressure the company's top line by about 100 basis points. With the extra week in the year-ago quarter accounting for 7 percentage points of the period's revenue, Apple's guidance for flat revenue growth, despite such a tough comparison, shows that it's clearly entering growth mode as it rolls into fiscal 2024.
So, is Apple stock a buy, sell, or hold today? Saying it's a buy is getting tougher at this level, but it's at least a hold. Of course, there are always risks to owning stocks, so Apple's attractiveness as an investment could change.
Investors will have to watch the company closely. Overall, however, Apple's current valuation seems reasonable, relative to its business fundamentals.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) crossed a $3 trillion market capitalization on Tuesday, following a surge in the tech company's stock price this year. Looking ahead Steadily improving business trends and a promising high-margin services segment is great, but are they enough to justify a price-to-earnings multiple of more than 31? This occurred despite having one less week than in the same quarter of last year and in the face of foreign-exchange headwinds that are expected to pressure the company's top line by about 100 basis points. | Apple (NASDAQ: AAPL) crossed a $3 trillion market capitalization on Tuesday, following a surge in the tech company's stock price this year. After all, revenue fell 3% year over year during fiscal 2023 (the fiscal year ended Sept. 23). Finally, Apple's important high-margin services segment has recently seen accelerated momentum, growing an impressive 16% year over year in fiscal Q4. | Apple (NASDAQ: AAPL) crossed a $3 trillion market capitalization on Tuesday, following a surge in the tech company's stock price this year. After all, revenue fell 3% year over year during fiscal 2023 (the fiscal year ended Sept. 23). Finally, Apple's important high-margin services segment has recently seen accelerated momentum, growing an impressive 16% year over year in fiscal Q4. | Apple (NASDAQ: AAPL) crossed a $3 trillion market capitalization on Tuesday, following a surge in the tech company's stock price this year. After all, revenue fell 3% year over year during fiscal 2023 (the fiscal year ended Sept. 23). In the first, second, third, and fourth quarters of fiscal 2023, the negative impact on Apple's reported year-over-year growth rates was 800, 500, 400, and 200 basis points, respectively. |
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12218.0 | 2023-12-06 00:00:00 UTC | ROKU Collaborates With Tennis Channel to Launch T2 in the US | AAPL | https://www.nasdaq.com/articles/roku-collaborates-with-tennis-channel-to-launch-t2-in-the-us | Roku Inc. ROKU has announced a collaboration with Tennis Channel to launch T2, the sports network's second channel, on The Roku Channel in the United States. T2 is set to provide free and year-round access to live coverage of top tennis players and signature events for the vast audience of The Roku Channel, reaching an estimated 100 million people.
For convenient access, viewers can easily navigate T2 through the Sports Experience on Roku's Home Screen. This feature simplifies the discovery and access of live, upcoming and on-demand sports content, enhancing engagement and awareness for Roku's content partners while providing a personalized viewing experience.
T2's yearly live and encore calendar aligns with most tournaments covered by Tennis Channel, showcasing different matches and players. This unique approach allows viewers with access to both channels to choose between simultaneous competitions from prestigious events, such as the BNP Paribas Open, Roland Garros, Miami Open, Monte-Carlo Masters, Italian Open, Canadian Open, Davis Cup and the Billie Jean King Cup.
Shares of this Zacks Rank #3 (Hold) company have gained 158.5% year to date compared with the Zacks Consumer Discretionary sector’s rise of 12.4% due to its extensive collection of content.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Roku, Inc. Price and Consensus
Roku, Inc. price-consensus-chart | Roku, Inc. Quote
ROKU’s Recent Efforts to Boost Streaming Hours
The company recently unveiled two fresh additions to the Roku Home Screen, such as All Things Food and All Things Home. These new destinations bring together top-notch food, home and lifestyle content from various sources on the platform, creating seamless and engaging discovery experiences.
These new features are expected to boost streaming hours as well as platform revenues in the upcoming quarters.
The Zacks Consensus Estimate for ROKU’s 2023 streaming hours is pegged at 105.33 billion, indicating a year-over-year increase of 340.7%. The consensus estimate for 2023 platform revenues is pegged at $2.9 billion, indicating a year-over-year increase of 7.38%.
Designed for user convenience, these hubs offer straightforward navigation and personalized recommendations, simplifying the exploration and viewing of genre entertainment directly from the home screen. Both All Things Food and All Things Home will showcase a diverse array of streaming options within their respective categories, encompassing free and subscription-based services, live and linear TV, Premium Subscriptions, Roku Originals and more.
These features were added due to a recent survey commissioned by Roku. This recent survey revealed that 64% of streamers rely on genre-based searches when looking for new content, emphasizing the significance of genre preferences in content discovery. According to the survey, nearly 73% of streamers feel that they spend excessive time trying to discover fresh content, underscoring the need for streamlined and efficient content exploration experiences.
Roku faces tough competition from giants like Google GOOGL, Amazon AMZN and Apple AAPL.
Google TV has significantly improved its user experience, addressing previous issues with the latest Chromecast model. This device supports a broad range of streaming apps, including popular ones like YouTube and Spotify. However, there may be some limitations in terms of storage management.
Amazon Fire TV is deeply integrated into Amazon's ecosystem, giving priority to AMZN's content and featuring a robust voice interface. Yet, at times, it gives the impression of functioning more as an advertising platform for Amazon products rather than providing a diverse app and content ecosystem.
Apple TV boasts a refined interface with its attention to detail. While it supports most apps, it appears that AAPL places a stronger emphasis on its Apple TV+ subscription service and app rather than focusing primarily on the hardware itself.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Roku faces tough competition from giants like Google GOOGL, Amazon AMZN and Apple AAPL. While it supports most apps, it appears that AAPL places a stronger emphasis on its Apple TV+ subscription service and app rather than focusing primarily on the hardware itself. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Roku, Inc. (ROKU) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Roku, Inc. (ROKU) : Free Stock Analysis Report To read this article on Zacks.com click here. Roku faces tough competition from giants like Google GOOGL, Amazon AMZN and Apple AAPL. While it supports most apps, it appears that AAPL places a stronger emphasis on its Apple TV+ subscription service and app rather than focusing primarily on the hardware itself. | Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Roku, Inc. (ROKU) : Free Stock Analysis Report To read this article on Zacks.com click here. Roku faces tough competition from giants like Google GOOGL, Amazon AMZN and Apple AAPL. While it supports most apps, it appears that AAPL places a stronger emphasis on its Apple TV+ subscription service and app rather than focusing primarily on the hardware itself. | Roku faces tough competition from giants like Google GOOGL, Amazon AMZN and Apple AAPL. While it supports most apps, it appears that AAPL places a stronger emphasis on its Apple TV+ subscription service and app rather than focusing primarily on the hardware itself. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Roku, Inc. (ROKU) : Free Stock Analysis Report To read this article on Zacks.com click here. |
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12219.0 | 2023-12-06 00:00:00 UTC | Apple Regains $3T in Market Cap: ETFs in Focus | AAPL | https://www.nasdaq.com/articles/apple-regains-%243t-in-market-cap%3A-etfs-in-focus | In a remarkable comeback story, the technology giant Apple Inc. AAPL has once again claimed its spot as a $3-trillion company, reinstating its position as a titan in the global tech industry. This resurgence marks the first return to the $3-trillion milestone since August, showcasing the company's robust recovery and investor confidence.
Investors seeking to tap the opportune moment could invest in ETFs having the largest allocation to the tech titan. Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC, iShares US Technology ETF IYW and Vanguard Mega Cap Growth ETF MGK have Apple as the top or second firm with a double-digit allocation and sport a Zacks ETF Rank #1 (Strong Buy) or 2 (Buy).
The journey back to $3 trillion was fueled by a 2.1% rise in Apple's shares, reflecting a strong investor belief in the company's innovation and market strategy. This boost in the stock value is a testament to Apple's enduring appeal and the market's optimistic outlook on its future.
The Apple stock has gained more than 48% so far this year despite slowing growth and challenges in markets like China. This is mainly due to the company’s consistent cash flow, the global popularity of its products and robust shareholder return programs.
Promising Growth Ahead
With this significant achievement, Apple sets the stage for further innovation and growth. The iPhone maker is poised to expand its product range with the anticipated launch of the Vision Pro virtual reality headset next year. This groundbreaking product, Apple's first significant new computing platform since the Apple Watch in 2014, underscores the company's dedication to innovation. By venturing into virtual reality, Apple is poised to redefine technological boundaries, further solidifying its position as a leader in the tech industry (read: High-Quality ETFs for Long-Term Investors).
Bulls Are Here!
Wall Street is bullish on the stock. Apple currently has an average brokerage recommendation (ABR) of 1.71 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 29 brokerage firms. The current ABR compares to an ABR of 1.71 a month ago based on 29 recommendations.
Of the 29 recommendations deriving the current ABR, 17 are Strong Buy and three are Buy. Strong Buy and Buy, respectively, account for 58.62% and 10.34% of all recommendations. A month ago, Strong Buy made up 58.62%, whereas Buy represented 10.34%.
Based on short-term price targets offered by 26 analysts, the average price target for Apple comes to $201.53. The forecasts range from a low of $140.00 to a high of $240.00.
Solid Earnings Estimate Revisions
Apple saw a positive earnings estimate revision of a penny over the past month for the fiscal year (ending Sep 2024), with estimated earnings growth of 7.01%. This compares favorably with the industry’s growth projection of 5.88% (read: 4 ETFs to Implement Buffett's Investing Philosophy).
AAPL currently has a Zacks Rank #3 (Hold) and falls under a top-ranked Zacks industry (top 15%).
ETFs in Focus
Technology Select Sector SPDR Fund (XLK)
Technology Select Sector SPDR Fund targets the broad technology sector and follows the Technology Select Sector Index. It holds about 64 securities in its basket, with Apple making up for a 23% share. Technology Select Sector SPDR Fund has key holdings in software, technology hardware, storage and peripherals, and semiconductors and semiconductor equipment.
Technology Select Sector SPDR Fund is the most popular and heavily traded ETF, with an AUM of $55.7 billion and an average daily volume of 6.7 million shares. The fund charges 10 bps in fees per year.
Vanguard Information Technology ETF (VGT)
Vanguard Information Technology ETF manages $56.5 billion in its asset base and provides exposure to 318 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Here, Apple accounts for a 21.6% share. Systems software, technology hardware storage & peripheral, semiconductors, and application software are the top four sectors.
Vanguard Information Technology ETF has an expense ratio of 0.10%, whereas volume is solid at nearly 499,000 shares.
MSCI Information Technology Index ETF (FTEC)
MSCI Information Technology Index ETF is home to 312 technology stocks with an AUM of $8 billion. It follows the MSCI USA IMI Information Technology Index. Apple accounts for a 22.2% share in the basket (read: Tech Turns Hot, ETFs Touch New 52-Week Highs).
MSCI Information Technology Index ETF has an expense ratio of 0.08%, while volume is solid at 211,000 shares a day.
iShares US Technology ETF (IYW)
iShares Dow Jones US Technology ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index, giving investors exposure to 132 U.S. electronics, computer software and hardware, and informational technology companies. Apple makes up 18% of the assets.
iShares Dow Jones US Technology ETF has an AUM of $13.4 billion, and charges 40 bps in fees and expenses. Volume is good as it exchanges 781,000 shares a day.
Vanguard Mega Cap Growth ETF (MGK)
Vanguard Mega Cap Growth ETF offers diversified exposure to the largest growth stocks in the U.S. market. It tracks the CRSP US Mega Cap Growth Index and holds 88 securities in its basket, with Apple accounting for 15.1% of the total assets.
Vanguard Mega Cap Growth ETF charges 7 bps in annual fees and trades in a good volume of around 336,000 shares a day on average. The fund has an AUM of $15.8 billion.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In a remarkable comeback story, the technology giant Apple Inc. AAPL has once again claimed its spot as a $3-trillion company, reinstating its position as a titan in the global tech industry. AAPL currently has a Zacks Rank #3 (Hold) and falls under a top-ranked Zacks industry (top 15%). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports To read this article on Zacks.com click here. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports To read this article on Zacks.com click here. In a remarkable comeback story, the technology giant Apple Inc. AAPL has once again claimed its spot as a $3-trillion company, reinstating its position as a titan in the global tech industry. AAPL currently has a Zacks Rank #3 (Hold) and falls under a top-ranked Zacks industry (top 15%). | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports To read this article on Zacks.com click here. In a remarkable comeback story, the technology giant Apple Inc. AAPL has once again claimed its spot as a $3-trillion company, reinstating its position as a titan in the global tech industry. AAPL currently has a Zacks Rank #3 (Hold) and falls under a top-ranked Zacks industry (top 15%). | In a remarkable comeback story, the technology giant Apple Inc. AAPL has once again claimed its spot as a $3-trillion company, reinstating its position as a titan in the global tech industry. AAPL currently has a Zacks Rank #3 (Hold) and falls under a top-ranked Zacks industry (top 15%). Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports To read this article on Zacks.com click here. |
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12220.0 | 2023-12-06 00:00:00 UTC | 3 Stocks to Watch From the Prospering Computer Industry | AAPL | https://www.nasdaq.com/articles/3-stocks-to-watch-from-the-prospering-computer-industry | The Zacks Computer – Mini Computers industry is benefiting from steady demand for enterprise devices, including laptops, tablets and smartphones. Industry participants like Apple AAPL, HP HPQ and 3D Systems DDD are benefiting from these trends. The improving availability of 5G-enabled smartphones has been a key catalyst for the industry participants. The launch of foldable, and AI and ML-infused smartphones, tablets, wearables and hearables is another major growth driver for the industry participants. Robust demand for production printers, materials and software bodes well for 3-D printing solution providers. However, waning demand for consumer PCs and geopolitical challenges, including raging inflation and high interest, are major headwinds.
Industry Description
The Zacks Computer – Mini Computers industry comprises companies that offer smartphones, desktops, laptops, printers, wearables and 3-D printers. Such devices are based either on iOS, MacOS, iPadOS, WatchOS, Microsoft Windows, or Google Chrome and Android operating systems. The companies predominantly use processors from Apple, Intel, AMD, Qualcomm, NVIDIA and Samsung. Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones. This has been well-supported by faster mobile processors. Laptops, both consumer and commercial, benefit from faster processors, sleek designs and expanded storage facilities. The addition of healthcare features has been driving the demand for wearables.
3 Mini Computer Industry Trends to Watch
Enterprise Adoption Remains Healthy: Strong enterprise demand has been benefiting the industry participants. The growing adoption of a hybrid working environment bodes well for the players, as demand for laptops and tablets is expected to increase. Demand for smart devices that offer facial recognition, retina scans or finger impressions to verify the user for biometrics is gaining traction as enterprises enhance security.
Impressive Form Factor Drives Demand: Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones and tablets. This has been well-supported by faster mobile processors from the likes of Qualcomm, NVIDIA, Apple and Samsung. Improved Internet penetration and speed, along with the evolution of mobile apps, have made smartphones indispensable for consumers. Improved graphics quality is making smartphones suitable for playing sophisticated games. This is driving the demand for high-end smartphones and opening up significant opportunities for device makers.
PCs Face Extinction Risk: Personal computers (desktops and laptops), be it Windows or Apple’s MacOS-based ones, have been facing the risk of extinction due to the rapid proliferation of smartphones and tablets. Stiff competition from smartphones has compelled global PC makers to not only upgrade hardware frequently but also add apps and cloud-based services to attract consumers. Nevertheless, the emergence of 5G, AI, machine learning and foldable computers is likely to be the key catalysts in expanding the total addressable market of PCs.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Computer – Mini Computers industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #37, which places it in the top 15% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential. Since Oct 31, 2023, the Zacks Consensus Estimate for this industry’s 2024 earnings has moved up 0.3%.
Given the bullish outlook, there are a few stocks worth watching in the sector. But before we present those stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Lags Sector Beats S&P 500
The Zacks Computer – Mini Computers industry has underperformed the broader Zacks Computer and Technology sector but beat the S&P 500 index over the past year.
The industry has gained 33.9% over this period compared with the S&P 500’s return of 16.4% and the broader sector’s rise of 37.8%.
One-Year Price Performance
Industry's Current Valuation
On the basis of forward 12-month P/E, which is a commonly used multiple for valuing computer stocks, we see that the industry is currently trading at 27.81X compared with the S&P 500’s 19.17X and the sector’s 24.04X.
Over the last five years, the industry has traded as high as 32.32X and as low as 11.49X, with the median being 24.43X, as the chart below shows.
Forward 12-Month Price-to-Earnings (P/E) Ratio
3 Computer Stocks to Watch Right Now
3D Systems: This Zacks Rank #1 (Strong Buy) company expects the dental market to stabilize amid the high inventory level in the supply chain and weakness in consumer discretionary spending. You can see the complete list of today’s Zacks #1 Rank stocks here.
3D System expects a slower recovery in 2024 than its earlier expectation. Dental sales are expected to benefit from the continuing migration of orthodontic solutions from metal brackets and wires to clear aligners in the long run. Improved asset management and resource utilization are anticipated to reduce its total inventory significantly in 2024.
The Zacks Consensus Estimate for 2023 loss has narrowed by 7 cents to 13 cents per share over the past 30 days. The stock has declined 38.5% in the year-to-date period.
Price and Consensus: DDD
Apple: This Zacks Rank #3 (Hold) company is benefiting from a steady demand for iPhone devices, as well as an expanding footprint in emerging markets. A growing subscriber base and improving customer engagement are tailwinds for the services business.
Apple currently has more than 1 billion paid subscribers across its Services portfolio. The App Store continues to draw the attention of prominent developers worldwide, helping it offer appealing new apps that drive the App Store’s traffic. A growing number of AI-infused apps will attract subscribers to the App Store.
The Zacks Consensus Estimate for fiscal 2024 earnings has increased by a penny to $6.56 per share over the past 30 days. The stock has gained 37.2% in the year-to-date period.
Price and Consensus: AAPL
HP: This Zacks Rank #3 company’s sustained focus on launching the latest and innovative products is likely to help it stay afloat in the current uncertain macroeconomic environment.
Product innovation and differentiations are the key drivers that have helped HPQ maintain its leading position in the PC and printer markets.
The Zacks Consensus Estimate for fiscal 2023 earnings has decreased 1.2% to $3.43 per share over the past 30 days. HP shares have gained 3.7% year to date.
Price and Consensus: HPQ
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Price and Consensus: AAPL HP: This Zacks Rank #3 company’s sustained focus on launching the latest and innovative products is likely to help it stay afloat in the current uncertain macroeconomic environment. Industry participants like Apple AAPL, HP HPQ and 3D Systems DDD are benefiting from these trends. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report 3D Systems Corporation (DDD) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report 3D Systems Corporation (DDD) : Free Stock Analysis Report To read this article on Zacks.com click here. Industry participants like Apple AAPL, HP HPQ and 3D Systems DDD are benefiting from these trends. Price and Consensus: AAPL HP: This Zacks Rank #3 company’s sustained focus on launching the latest and innovative products is likely to help it stay afloat in the current uncertain macroeconomic environment. | Industry participants like Apple AAPL, HP HPQ and 3D Systems DDD are benefiting from these trends. Price and Consensus: AAPL HP: This Zacks Rank #3 company’s sustained focus on launching the latest and innovative products is likely to help it stay afloat in the current uncertain macroeconomic environment. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report 3D Systems Corporation (DDD) : Free Stock Analysis Report To read this article on Zacks.com click here. | Industry participants like Apple AAPL, HP HPQ and 3D Systems DDD are benefiting from these trends. Price and Consensus: AAPL HP: This Zacks Rank #3 company’s sustained focus on launching the latest and innovative products is likely to help it stay afloat in the current uncertain macroeconomic environment. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report 3D Systems Corporation (DDD) : Free Stock Analysis Report To read this article on Zacks.com click here. |
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12221.0 | 2023-12-06 00:00:00 UTC | Governments spying on Apple, Google users through push notifications -US senator | AAPL | https://www.nasdaq.com/articles/governments-spying-on-apple-google-users-through-push-notifications-us-senator | By Raphael Satter
WASHINGTON, Dec 6 (Reuters) - Unidentified governments are surveilling smartphone users via their apps' push notifications, a U.S. senator warned on Wednesday.
In a letter to the Department of Justice, Senator Ron Wyden said foreign officials were demanding the data from Alphabet's GOOGL.O Google and Apple AAPL.O. Although details were sparse, the letter lays out yet another path by which governments can track smartphones.
Apps of all kinds rely on push notifications to alert smartphone users to incoming messages, breaking news, and other updates. These are the audible "dings" or visual indicators users get when they receive an email or their sports team wins a game. What users often do not realize is that almost all such notifications travel over Google and Apple's servers.
That gives the two companies unique insight into the traffic flowing from those apps to their users, and in turn puts them "in a unique position to facilitate government surveillance of how users are using particular apps," Wyden said. He asked the Department of Justice to "repeal or modify any policies" that hindered public discussions of push notification spying.
In a statement, Apple said that Wyden's letter gave them the opening they needed to share more details with the public about how governments monitored push notifications.
"In this case, the federal government prohibited us from sharing any information," the company said in a statement. "Now that this method has become public we are updating our transparency reporting to detail these kinds of requests."
Google said that it shared Wyden's "commitment to keeping users informed about these requests."
The Department of Justice did not return messages seeking comment on the push notification surveillance or whether it had prevented Apple of Google from talking about it.
Wyden's letter cited a "tip" as the source of the information about the surveillance. His staff did not elaborate on the tip, but a source familiar with the matter confirmed that both foreign and U.S. government agencies have been asking Apple and Google for metadata related to push notifications to, for example, help tie anonymous users of messaging apps to specific Apple or Google accounts.
The source declined to identify the foreign governments involved in making the requests but described them as democracies allied to the United States.
The source said they did not know how long such information had been gathered in that way.
Most users give push notifications little thought, but they have occasionally attracted attention from technologists because of the difficulty of deploying them without sending data to Google or Apple.
Earlier this year French developer David Libeau said users and developers were often unaware of how their apps emitted data to the U.S. tech giants via push notifications, calling them "a privacy nightmare."
(Reporting by Raphael Satter; Editing by Stephen Coates and Andrea Ricci)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In a letter to the Department of Justice, Senator Ron Wyden said foreign officials were demanding the data from Alphabet's GOOGL.O Google and Apple AAPL.O. By Raphael Satter WASHINGTON, Dec 6 (Reuters) - Unidentified governments are surveilling smartphone users via their apps' push notifications, a U.S. senator warned on Wednesday. In a statement, Apple said that Wyden's letter gave them the opening they needed to share more details with the public about how governments monitored push notifications. | In a letter to the Department of Justice, Senator Ron Wyden said foreign officials were demanding the data from Alphabet's GOOGL.O Google and Apple AAPL.O. By Raphael Satter WASHINGTON, Dec 6 (Reuters) - Unidentified governments are surveilling smartphone users via their apps' push notifications, a U.S. senator warned on Wednesday. Apps of all kinds rely on push notifications to alert smartphone users to incoming messages, breaking news, and other updates. | In a letter to the Department of Justice, Senator Ron Wyden said foreign officials were demanding the data from Alphabet's GOOGL.O Google and Apple AAPL.O. By Raphael Satter WASHINGTON, Dec 6 (Reuters) - Unidentified governments are surveilling smartphone users via their apps' push notifications, a U.S. senator warned on Wednesday. That gives the two companies unique insight into the traffic flowing from those apps to their users, and in turn puts them "in a unique position to facilitate government surveillance of how users are using particular apps," Wyden said. | In a letter to the Department of Justice, Senator Ron Wyden said foreign officials were demanding the data from Alphabet's GOOGL.O Google and Apple AAPL.O. In a statement, Apple said that Wyden's letter gave them the opening they needed to share more details with the public about how governments monitored push notifications. Google said that it shared Wyden's "commitment to keeping users informed about these requests." |
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12222.0 | 2023-12-06 00:00:00 UTC | AAPL Factor-Based Stock Analysis | AAPL | https://www.nasdaq.com/articles/aapl-factor-based-stock-analysis-11 | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 94% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. |
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12223.0 | 2023-12-06 00:00:00 UTC | 3 Niche Tech Stocks With Untapped Potential | AAPL | https://www.nasdaq.com/articles/3-niche-tech-stocks-with-untapped-potential | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
What comes to mind when you think of niche stock?
For some, it is one that flies under the radar of most investors. It could be a stock with little or no analyst coverage. It could be a company with technology that meets the needs of a smaller total addressable market (TAM).
In fact, Cambridge Dictionary defines niche as “a job or position that is very suitable for someone, especially one that they like.”
The following three niche tech stocks to buy are from the portfolio holdings of tech ETFs that specialize in niche products or services. For example, cloud-computing ETFs would not typically be considered as a niche businesses. AgTech ETFs could be.
So, let’s examine three tech stocks to buy that investors won’t likely find in some of the larger tech ETFs.
Sotera Health Company (SHC)
Source: motorolka / Shutterstock.com
Sotera Health Company (NASDAQ:SHC) is the sixth-smallest holding of the iShares Emergent Food and AgTech Multisector ETF (NASDAQ:IVEG). The ETF invests in U.S. and non-U.S. companies that will benefit from creating or using agricultural technologies.
Sotera’s three businesses of Sterigenics, Nordion, and Nelson Labs provide sterilization services, lab testing, and advisory services to healthcare companies. It has more than 5,800 customers in 50+ countries worldwide.
The downside? Most of the company’s proprietary technology is not patented. However, its sterilization work is very sensitive. For example, Nordion produces and sells Cobalt-60 (Co-60), a radioactive isotope used in radiation sterilization. It decays naturally at a rate of approximately 12% annually.
Also, the product undergoes quality assurance testing and is shipped in proprietary lead and steel containers. This is a big deal. Specifically, we’re talking about radioactive materials that must be treated with utmost care.
And, in Q3 of 2023, its revenues increased by 6% year over year (YOY) to $263 million. Additionally, its EBITDA rose by 7% to $134 million, making the 51% adjusted EBITDA margin is attractive.
SiTime Corp. (SITM)
Source: Michael Vi / Shutterstock.com
SiTime Corp. (NASDAQ:SITM) is one of the smallest holdings in the iShares Future Cloud 5G and Tech ETF (NYSEARCA:IDAT). The latter is a fund dedicated to stocks that could benefit from providing products and services for cloud computing and 5G.
Also, SiTime’s market capitalization of $2.3 billion is just 11% of the ETF’s average market cap of $21.6 billion.
Impressively, SiTime participates in the $8 billion global timing market. The company’s all-silicon timing systems solutions are used for a variety of electronics devices. Those include communications, automotive, industrial, aerospace, mobile, Internet of Things (IoT), and other industries requiring high-performance timing solutions.
Examples of their use include airbag sensors, inkjet printer heads, optical switches, blood pressure sensors, and many other mass-produced products. The company sells its precision timing products to distributors, with its top three distributors accounting for 70% of its revenue in 2022. Those, in turn, sell them to the end user – the largest being Apple (NASDAQ:AAPL).
Word to the wise. SiTime is not profitable on a GAAP basis at the moment. However, it did generate a small non-GAAP profit of $1.4 million in Q3 2023 on revenue of $35.5 million. Yet, considering the global cloud computing market estimated to be over $500 billion, the $8 billion market in which SiTime participates is truly niche.
Constellation Software (CNSWF)
Source: Shutterstock
Constellation Software (OTCMKTS:CNSWF) is the 14th-largest holding of the Franklin Intelligent Machines ETF (BATS:IQM). It is an actively managed fund investing in disruptive business models focused on machine learning and automation.
Like SiTime, Constellation Software is a niche business model. It’s a serial acquirer that the Economist recently called the tech version of Berkshire Hathaway (NYSE:BRK-B).
The company was created by Toronto venture capitalist Mark Leonard in 1995. His intention was to build verticals of software businesses in various industries through mergers, acquisitions, and organic growth.
Specifically, Constellation had $270 million in total assets in March 2008. And as of Sept. 30, CNSWF stood just over $10.0 billion. The company’s revenue through the first nine months were $6.1 billion, 27% higher than a year ago, with 6% organic growth, with the rest from acquisitions. Its free cash flow over the first nine months was $835 million, 48% higher than a year ago, suggesting it will generate close to $2 billion in 2023.
Since Constellation went public in May 2006, its shares have appreciated nearly 12,000%. Up 55% in 2023 and 257% over the past five years, it continues to deliver on its M&A.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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The post 3 Niche Tech Stocks With Untapped Potential appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Those, in turn, sell them to the end user – the largest being Apple (NASDAQ:AAPL). Its free cash flow over the first nine months was $835 million, 48% higher than a year ago, suggesting it will generate close to $2 billion in 2023. More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never Heard Of Musk’s “Project Omega” May Be Set to Mint New Millionaires. | Those, in turn, sell them to the end user – the largest being Apple (NASDAQ:AAPL). In fact, Cambridge Dictionary defines niche as “a job or position that is very suitable for someone, especially one that they like.” The following three niche tech stocks to buy are from the portfolio holdings of tech ETFs that specialize in niche products or services. Sotera Health Company (SHC) Source: motorolka / Shutterstock.com Sotera Health Company (NASDAQ:SHC) is the sixth-smallest holding of the iShares Emergent Food and AgTech Multisector ETF (NASDAQ:IVEG). | Those, in turn, sell them to the end user – the largest being Apple (NASDAQ:AAPL). In fact, Cambridge Dictionary defines niche as “a job or position that is very suitable for someone, especially one that they like.” The following three niche tech stocks to buy are from the portfolio holdings of tech ETFs that specialize in niche products or services. Sotera Health Company (SHC) Source: motorolka / Shutterstock.com Sotera Health Company (NASDAQ:SHC) is the sixth-smallest holding of the iShares Emergent Food and AgTech Multisector ETF (NASDAQ:IVEG). | Those, in turn, sell them to the end user – the largest being Apple (NASDAQ:AAPL). The ETF invests in U.S. and non-U.S. companies that will benefit from creating or using agricultural technologies. However, it did generate a small non-GAAP profit of $1.4 million in Q3 2023 on revenue of $35.5 million. |
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12224.0 | 2023-12-06 00:00:00 UTC | AI for the Future: 3 Stocks Driving Innovative Solutions | AAPL | https://www.nasdaq.com/articles/ai-for-the-future%3A-3-stocks-driving-innovative-solutions | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While certain AI stock sectors, such as generative text and imagery, have some commercial use, they’ve mostly been relegated to parlor tricks thus far. And, without the profitable commercialization opportunity needed to offset high tech costs, many of today’s “fun” AI stocks won’t be around in a few years.
That’s the reason investors who are searching for top AI stocks should look to the basics. Perhaps boring but needed tasks that AI helps to optimize and streamline. AI will likely be omnipresent in our lives soon, and today’s “nuts and bolts” AI offerings could easily be tomorrow’s Apple (NASDAQ:AAPL).
Lemonade (LMND)
Source: Stephanie L Sanchez / Shutterstock.com
Ready to get excited about insurance?
OK, probably not. Yet, Lemonade (NYSE:LMND) is one opportunity among innovative AI stocks that’s truly exciting. Until now, insurance offerings have included lengthy and obscure manual calculations that didn’t always accurately predict customer risk. That’s evident today as auto insurance claims surge, leaving legacy insurers holding the bag for poor due diligence.
But Lemonade’s Maya chatbot negates some of that risk, offering customers a friendly and simple alternative when exploring insurance needs. Better yet, it’s underpinned by scores of data that help Maya and Lemonade determine proper price points and risk scores for each customer.
In an age where customers prefer digital engagement for routine business, Lemonade’s customer base is soaring. Customer count grew 12% over the past year and revenue jumped by more than 50%. These stats and increased visibility point to big moments ahead for this top AI stock pick.
UiPath (PATH)
Source: dennizn / Shutterstock.com
UiPath (NYSE:PATH) is on Cathie Wood’s list of top AI stocks, meaning retail investors should take notice. In a September interview, Wood touted UiPath’s AI use in “helping companies automate the most mundane administrative tasks.” It’s not too exciting, but that’s the spot unique AI stocks are. They sit at the intersection of next-gen tech and typical workplace tasks.
UiPath leverages AI and machine learning to help companies streamline workflows by integrating unique proprietary data sets. In effect, it’s like giving OpenAI’s ChatGPT access to your annual credit card statement and asking where you can improve your household budget. But multiply the scale ten-fold (or more) and expand the opportunity to nearly every admin task a company faces. Then you’re closer to the opportunities that UiPath offers.
Speaking of OpenAI, they’re just one of many SaaS tools companies can integrate into their UiPath workflow. Other partnered integrations include Salesforce (NYSE:CRM) and Amazon (NASDAQ:AMZN) Web Services (AWS). These wide-reaching integrations mean UiPath can easily slide itself into most corporate ecosystems while improving enterprise efficiencies.
Symbotic (SYM)
Source: PopTika / Shutterstock.com
Honestly, warehouse management solutions aren’t particularly exciting for average investors. But Symbotic’s (NASDAQ:SYM) AI solutions have big-name corporations racing to partner with them. Symbotic offers AI-enabled warehouse robotics that blue-chips like Walmart (NYSE:WMT) and Target (NYSE:TGT) leverage to cut costs and increase productivity.
Buy Symbotic is about to expand its market reach substantially. Though the firm, thus far, has only been practical for enterprise-level warehousing, the company is developing a tool to help small and medium businesses. The “GreenBox” initiative will target shared warehousing that multiple small businesses use jointly. Again, it may not sound revolutionary, but as one analyst says, “I’ve seen a lot of robotics tech and I’ve never seen anything like it in my life. Compared to what it replaces, it’s like day and night.”
Symbotic just posted its first profitable quarter which, combined with current market penetration and future expansion, bodes well for this AI stock.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work.
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The post AI for the Future: 3 Stocks Driving Innovative Solutions appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AI will likely be omnipresent in our lives soon, and today’s “nuts and bolts” AI offerings could easily be tomorrow’s Apple (NASDAQ:AAPL). And, without the profitable commercialization opportunity needed to offset high tech costs, many of today’s “fun” AI stocks won’t be around in a few years. Compared to what it replaces, it’s like day and night.” Symbotic just posted its first profitable quarter which, combined with current market penetration and future expansion, bodes well for this AI stock. | AI will likely be omnipresent in our lives soon, and today’s “nuts and bolts” AI offerings could easily be tomorrow’s Apple (NASDAQ:AAPL). And, without the profitable commercialization opportunity needed to offset high tech costs, many of today’s “fun” AI stocks won’t be around in a few years. UiPath (PATH) Source: dennizn / Shutterstock.com UiPath (NYSE:PATH) is on Cathie Wood’s list of top AI stocks, meaning retail investors should take notice. | AI will likely be omnipresent in our lives soon, and today’s “nuts and bolts” AI offerings could easily be tomorrow’s Apple (NASDAQ:AAPL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips While certain AI stock sectors, such as generative text and imagery, have some commercial use, they’ve mostly been relegated to parlor tricks thus far. UiPath (PATH) Source: dennizn / Shutterstock.com UiPath (NYSE:PATH) is on Cathie Wood’s list of top AI stocks, meaning retail investors should take notice. | AI will likely be omnipresent in our lives soon, and today’s “nuts and bolts” AI offerings could easily be tomorrow’s Apple (NASDAQ:AAPL). Yet, Lemonade (NYSE:LMND) is one opportunity among innovative AI stocks that’s truly exciting. But Lemonade’s Maya chatbot negates some of that risk, offering customers a friendly and simple alternative when exploring insurance needs. |
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