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12225.0 | 2023-12-06 00:00:00 UTC | After Hours Most Active for Dec 6, 2023 : CCI, CHWY, BEKE, CNHI, AEO, BABA, QQQ, INTC, AAPL, GOOGL, PARA, MTCH | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-dec-6-2023-%3A-cci-chwy-beke-cnhi-aeo-baba-qqq-intc-aapl-googl | The NASDAQ 100 After Hours Indicator is down -3.98 to 15,784.07. The total After hours volume is currently 74,322,664 shares traded.
The following are the most active stocks for the after hours session:
Crown Castle Inc. (CCI) is unchanged at $117.09, with 3,131,154 shares traded. CCI's current last sale is 105.96% of the target price of $110.5.
Chewy, Inc. (CHWY) is -1.55 at $17.80, with 2,951,069 shares traded. Smarter Analyst Reports: Chewy Posts Wider-Than-Expected Q3 Loss; Shares Fall
KE Holdings Inc (BEKE) is +0.16 at $15.55, with 2,701,927 shares traded. As reported by Zacks, the current mean recommendation for BEKE is in the "buy range".
CNH Industrial N.V. (CNHI) is unchanged at $10.96, with 2,608,207 shares traded. CNHI's current last sale is 72.53% of the target price of $15.11.
American Eagle Outfitters, Inc. (AEO) is unchanged at $19.95, with 2,311,399 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jan 2024. The consensus EPS forecast is $0.43. AEO's current last sale is 105% of the target price of $19.
Alibaba Group Holding Limited (BABA) is +0.03 at $71.52, with 2,166,317 shares traded., following a 52-week high recorded in today's regular session.
Invesco QQQ Trust, Series 1 (QQQ) is -0.14 at $384.91, with 1,871,367 shares traded. This represents a 48.2% increase from its 52 Week Low.
Intel Corporation (INTC) is -0.03 at $41.24, with 1,591,257 shares traded. INTC's current last sale is 108.53% of the target price of $38.
Apple Inc. (AAPL) is -0.12 at $192.21, with 1,409,357 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Alphabet Inc. (GOOGL) is -0.14 at $129.88, with 1,304,098 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
Paramount Global (PARA) is unchanged at $15.22, with 1,217,300 shares traded. PARA's current last sale is 121.76% of the target price of $12.5.
Match Group, Inc. (MTCH) is unchanged at $32.85, with 1,136,207 shares traded. As reported by Zacks, the current mean recommendation for MTCH is in the "buy range".
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 -0.12 at $192.21, with 1,409,357 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Smarter Analyst Reports: Chewy Posts Wider-Than-Expected Q3 Loss; Shares Fall | As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.12 at $192.21, with 1,409,357 shares traded. As reported by Zacks, the current mean recommendation for BEKE is in the "buy range". | Apple Inc. (AAPL) is -0.12 at $192.21, with 1,409,357 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 74,322,664 shares traded. | Apple Inc. (AAPL) is -0.12 at $192.21, with 1,409,357 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 -3.98 to 15,784.07. |
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12226.0 | 2023-12-06 00:00:00 UTC | Better Growth Vehicle: Invesco QQQ Trust or Vanguard Information Technology Index Fund? | AAPL | https://www.nasdaq.com/articles/better-growth-vehicle%3A-invesco-qqq-trust-or-vanguard-information-technology-index-fund | Picking stocks capable of outperforming the broader markets consistently is a tremendously difficult task. Scores of academic studies have proved this fact. A recent study, for example, showed that only 2.39% of stocks are responsible for literally all of the gains of the global equity markets over the past 30 years. Worse still, the same study found that one of the most common outcomes among stocks on a global basis is a 95% to 100% loss in under a decade. Ouch.
Highly similar trends have been detected by other researchers dating back to 1926, which is the beginning of the database at the Center for Research in Security Prices. This unfavorable dynamic is the core reason why super investors like Warren Buffett, George Soros, and Peter Lynch, who have dramatically outperformed the S&P 500 index over their careers, are revered on Wall Street and Main Street alike.
Image Source: Getty Images.
Even so, non-professionals do have some remarkably attractive options to grow their capital over time. Low-cost index and exchange-traded funds (ETFs) that focus on technological innovation are prime examples. Fueled by the rapid pace of innovation in the tech sector, many of these funds have dramatically outperformed the S&P 500 over the past two decades, and this trend has been accelerating in recent times due to breakthroughs in machine learning and artificial intelligence.
While a surfeit of tech-heavy funds are available to the general public, the Invesco QQQ Trust (NASDAQ: QQQ) and the Vanguard Information Technology Index Fund (NYSEMKT: VGT) are two of the most popular, and for good reason. Both funds sport relatively low expense ratios, are passively managed, and have delivered stellar returns for stakeholders since inception.
Which fund is the better buy right now? Let's compare and contrast these two popular tech-oriented funds to find out.
The case for the QQQ
The QQQ tracks the Nasdaq-100 index, which consists of the 100 largest non-financial companies listed on the Nasdaq stock exchange. The Nasdaq-100 index is heavily weighted toward technology companies. Reflecting this fact, the QQQ's top five holdings are comprised of some of the most innovative tech companies on the planet, namely Apple, Microsoft, Amazon, Nvidia, and Meta Platforms.
Even so, the QQQ is broadly diversified across several economic sectors, although the bulk of holdings are concentrated in the the technology, consumer discretionary, healthcare, telecommunications, industrials, and consumer staples sectors.
Compared to its peer group, the QQQ has a relatively low expense ratio of 0.2%, along with a fairly average yield of 0.62%. It also has a long history of outperforming several benchmarks. Over the prior 10 years, for instance, the QQQ has outperformed the S&P 500 by a staggering 186.2%. Its superb performance stems from its exposure to ultra-fast-growing tech segments such as cloud computing, e-commerce, social media, electric vehicles, and artificial intelligence.
The fund's main risk factor is the premium valuation of many of its top holdings. Wall Street expects top levels of growth from these industry titans, and any setback on this front could trigger a sell-off.
The case for the VGT
The VGT tracks the MSCI US Investable Market Information Technology 25/50 Index. The fund's portfolio consists of 318 companies engaged in various segments of the informational technology space, such as software, communications equipment, internet services, semiconductors, and IT consulting. It has an extremely low expense ratio of 0.10% and offers a yield of 0.63% at current levels. Over the prior 10 years, the VGT has outperformed the S&P 500 by 288.3%.
The VGT's impressive performance can be explained by its exposure to some of the most profitable and dominant companies in the realm of information technology. Its top five holdings currently consist of Apple, Microsoft, Nvidia, Broadcom, and Adobe. These companies have entrenched competitive positions, loyal customers, recurring revenue streams, and high-profit margins. They also benefit from secular trends such as digital payments, software-as-a-service (SaaS), cybersecurity, and cloud computing.
Like the QQQ, the VGT's largest holdings all sport premium valuations, which is an important risk factor prospective investors should bear in mind. However, the VGT has an additional risk in the form of its high concentration in the area of information technology. The QQQ isn't exactly a bastion of diversification, but it is more diversified across a wider range of sectors than the VGT.
Verdict
Both the QQQ and the VGT are excellent choices for growth investors who want to gain exposure to the high-growth tech sector without having to run the risks associated with picking individual stocks. However, some key differences between them may appeal to different types of investors. The QQQ is more broadly diversified than the VGT, but it also comes with a higher expense ratio.
So, the argument truly boils down to one of fit. If you are only going with one tech-heavy fund, the QQQ is probably the better choice because it offers a higher diversification factor. But if you plan to supplement your portfolio with other low-cost growth funds like the Vanguard Growth Index Fund
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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. George Budwell has positions in Apple. The Motley Fool has positions in and recommends Adobe, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool recommends Broadcom and recommends the following options: long January 2024 $420 calls on Adobe 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. | Fueled by the rapid pace of innovation in the tech sector, many of these funds have dramatically outperformed the S&P 500 over the past two decades, and this trend has been accelerating in recent times due to breakthroughs in machine learning and artificial intelligence. Its superb performance stems from its exposure to ultra-fast-growing tech segments such as cloud computing, e-commerce, social media, electric vehicles, and artificial intelligence. Verdict Both the QQQ and the VGT are excellent choices for growth investors who want to gain exposure to the high-growth tech sector without having to run the risks associated with picking individual stocks. | While a surfeit of tech-heavy funds are available to the general public, the Invesco QQQ Trust (NASDAQ: QQQ) and the Vanguard Information Technology Index Fund (NYSEMKT: VGT) are two of the most popular, and for good reason. The Motley Fool has positions in and recommends Adobe, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool recommends Broadcom and recommends the following options: long January 2024 $420 calls on Adobe and short January 2024 $430 calls on Adobe. | While a surfeit of tech-heavy funds are available to the general public, the Invesco QQQ Trust (NASDAQ: QQQ) and the Vanguard Information Technology Index Fund (NYSEMKT: VGT) are two of the most popular, and for good reason. The case for the QQQ The QQQ tracks the Nasdaq-100 index, which consists of the 100 largest non-financial companies listed on the Nasdaq stock exchange. But if you plan to supplement your portfolio with other low-cost growth funds like the Vanguard Growth Index Fund 10 stocks we like better than Invesco QQQ Trust When our analyst team has a stock tip, it can pay to listen. | While a surfeit of tech-heavy funds are available to the general public, the Invesco QQQ Trust (NASDAQ: QQQ) and the Vanguard Information Technology Index Fund (NYSEMKT: VGT) are two of the most popular, and for good reason. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Adobe, Apple, Meta Platforms, Microsoft, Nvidia, and Vanguard Index Funds-Vanguard Growth ETF. |
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12227.0 | 2023-12-06 00:00:00 UTC | Stock Market News for Dec 6, 2023 | AAPL | https://www.nasdaq.com/articles/stock-market-news-for-dec-6-2023 | Market News
Wall Street ended mixed on Tuesday, driven by jobs data for October. Market participants expect the Federal Reserve to maintain the interest rates during its two-day policy meeting. The Dow and the S&P 500 ended in negative territory, while the Nasdaq Composite finished in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.2%, or 79.88 points, to close at 36,124.56. Notably, 16 components of the 30-stock index ended in negative territory, while 14 were in green.
The tech-heavy Nasdaq Composite climbed 0.3% to close at 14,229.91.
The S&P 500 fell 0.1% to end at 4,567.18. Out of 11 broad sectors of the benchmark, nine ended in negative territory, while two finished in green. The Energy Select Sector SPDR (XLE), the Materials Select Sector SPDR (XLB) and the Consumer Staples Select Sector SPDR (XLP) declined 1.8%, 1.4% and 0.8%, respectively, while the Technology Select Sector SPDR (XLK) advanced 0.6%.
The fear-gauge CBOE Volatility Index (VIX) decreased 1.8% to 12.9. A total of 11.9 billion shares were traded on Tuesday, lower than the last 20-session average of 10.6 billion. The S&P 500 posted 15 new 52-week highs and one new low; the Nasdaq Composite recorded 83 new highs and 69 new lows.
JOLTS Report Drives the Market
Job Openings and Labor Turnover Survey Report (JOLTS) for October was released on Tuesday. The report showed that job openings in the United States decreased by 617,000, reaching a total of 8.73 million the lowest since March 2021. Additionally, the report highlights a decline in the job openings to unemployed ratio, which reached 1.34 in October, marking the level since August 2021.
In terms of hiring, there was a decrease of 18,000 to reach a total of 5.886 million. Notably, there were declines in job opportunities within the accommodation and food services sector, which had previously been a driver of employment growth. Resignations also saw a decrease of 18,000 to reach 3.628 million while maintaining a quits rate of 2.3%. This decline could potentially provide some relief from wage inflation concerns. On the other hand, layoffs increased slightly to reach 1.642 million, with upticks observed within the transportation, warehousing and utilities industries.
The Federal Reserve, closely monitoring labor market data, may find this decline aligning with its goal of managing inflation. Investors expect to maintain unchanged interest rates in its upcoming two-day policy meeting.
Consequently, shares of Apple Inc. AAPL and NVIDIA Corporation NVDA jumped 2.1% and 2.3%, respectively. NVIDIA carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The Institute for Supply Management (“ISM”) reported that the ISM Services Index for November had come in at 52.7. The number for October was unrevised at 51.8.
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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. | Consequently, shares of Apple Inc. AAPL and NVIDIA Corporation NVDA jumped 2.1% and 2.3%, respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. The report showed that job openings in the United States decreased by 617,000, reaching a total of 8.73 million the lowest since March 2021. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Consequently, shares of Apple Inc. AAPL and NVIDIA Corporation NVDA jumped 2.1% and 2.3%, respectively. Market participants expect the Federal Reserve to maintain the interest rates during its two-day policy meeting. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Consequently, shares of Apple Inc. AAPL and NVIDIA Corporation NVDA jumped 2.1% and 2.3%, respectively. The Energy Select Sector SPDR (XLE), the Materials Select Sector SPDR (XLB) and the Consumer Staples Select Sector SPDR (XLP) declined 1.8%, 1.4% and 0.8%, respectively, while the Technology Select Sector SPDR (XLK) advanced 0.6%. | Consequently, shares of Apple Inc. AAPL and NVIDIA Corporation NVDA jumped 2.1% and 2.3%, respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. The Federal Reserve, closely monitoring labor market data, may find this decline aligning with its goal of managing inflation. |
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12228.0 | 2023-12-06 00:00:00 UTC | Decoding Apple’s Stock Trajectory: Time to Buy, Hold, or Sell AAPL? | AAPL | https://www.nasdaq.com/articles/decoding-apples-stock-trajectory%3A-time-to-buy-hold-or-sell-aapl | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Like other “Magnificent Seven” stocks, Apple (NASDAQ:AAPL) shares rallied during November. During the month, AAPL stock rose from $171 to around $190 per share, representing around an 11% increase in the span of a few weeks.
Since late last month, however, AAPL’s latest rally has petered out. Shares are now holding steady near the $190 per share price level. Not only that, concerns about a post-rally pullback are rising.
Commentators and investors are again concerned about valuation, and about the tech giant’s future growth prospects. Yet if it seems like that the latest price action/shifting near-term sentiment is a red flag to sell, think otherwise.
Even if shares encounter near-term weakness (which by the way isn’t set in stone), much still points to this “trillion dollar club” member not only eventually re-hitting past all-time highs, but climbing to substantially higher price levels over time. Here’s why.
AAPL Stock and the Return of Fear, Uncertainty, and Doubt
Since Apple shares plateaued in price around Thanksgiving, fear, uncertainty, and doubt (or FUD) has once again come out of the woodwork. Check out recent commentary about the stock, and you’ll see what I mean.
These bearish arguments about AAPL stock are based upon a cut-and-dry premise: Apple’s valuation is far too high, when you compare it to future growth forecasts. On the surface, I can see why some are making this argument. The current trading price of shares in the tech giant is approximately 29 times forward earnings.
According to sell-side forecasts, Apple’s earnings are expected to rise by 6.7% this fiscal year (ending September 2024), with earnings growth re-accelerating to around 8.9% during the following fiscal year. Still, while I agree AAPL is pricey, some of the negative takes out there, including one from a Seeking Alpha commentator suggesting that the 10-Year Treasury will outperform AAPL over the next few years, seem way too pessimistic.
Future appreciation for the iPhone maker’s shares may arrive more gradually in the future than in the past. However, I wouldn’t jump to the conclusion that shares are doomed to not only underperform the broad market, but Treasuries as well.
Solid Returns Are Well Within Reach
Before fully embracing the most negative views on AAPL stock, remember two important factors. For one, although Apple’s valuation is high compared to the market overall, don’t assume that means the company needs to report off-the-charts growth to maintain this valuation.
AAPL’s blue-chip status and strong financials suggest that a high single-digit earnings growth would be enough to sustain a high-20s forward multiple. This suggests that AAPL could keep rising in tandem with earnings growth. Right off the bat, the aforementioned argument that Apple will underperform 10-year Treasuries (currently yielding around 4.23%) seems dubious.
Second, not only could shares outperform Treasuries, outperforming the broad market over the coming years remains well within reach as well. As Wedbush’s Dan Ives recently pointed out, iPhone 15 sales have been off to a good start this holiday season.
There may be strong potential for results during this quarter, and for the full fiscal year, to handily beat current expectations. Looking at a longer time frame, there’s ample opportunity for Apple to report the elevated growth necessary to really kick shares back into high gear.
The Future Remains Bright, as Bearish Arguments Fall Flat
As I’ve pointed out previously, factors like a rebound in iPad and Mac sales, plus continued growth of Apple’s highly-profitable Services unit, suggest results down the road will come in much stronger than currently anticipated.
Apple has yet to really capitalize on the generative AI trend, but as Morgan Stanley analysts pointed out last month, the company stands to benefit tremendously from the rise of so-called “Edge AI,” or integrating artificial intelligence capabilities into hardware and software applications across the board.
Put simply, the future remains bright. A lot points to a long-term growth resurgence for Apple, thanks to existing and emerging catalysts. Bearish arguments fall flat, with some of them appearing very hyperbolic.
If you own AAPL stock, hang on. If you’ve yet to buy, sit tight and pounce on the next round of major weakness.
AAPL stock earns a B rating in Portfolio Grader.
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 Decoding Apple’s Stock Trajectory: Time to Buy, Hold, or Sell AAPL? 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. | 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 Decoding Apple’s Stock Trajectory: Time to Buy, Hold, or Sell AAPL? InvestorPlace - Stock Market News, Stock Advice & Trading Tips Like other “Magnificent Seven” stocks, Apple (NASDAQ:AAPL) shares rallied during November. During the month, AAPL stock rose from $171 to around $190 per share, representing around an 11% increase in the span of a few weeks. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Like other “Magnificent Seven” stocks, Apple (NASDAQ:AAPL) shares rallied during November. AAPL Stock and the Return of Fear, Uncertainty, and Doubt Since Apple shares plateaued in price around Thanksgiving, fear, uncertainty, and doubt (or FUD) has once again come out of the woodwork. During the month, AAPL stock rose from $171 to around $190 per share, representing around an 11% increase in the span of a few weeks. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Like other “Magnificent Seven” stocks, Apple (NASDAQ:AAPL) shares rallied during November. These bearish arguments about AAPL stock are based upon a cut-and-dry premise: Apple’s valuation is far too high, when you compare it to future growth forecasts. During the month, AAPL stock rose from $171 to around $190 per share, representing around an 11% increase in the span of a few weeks. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Like other “Magnificent Seven” stocks, Apple (NASDAQ:AAPL) shares rallied during November. These bearish arguments about AAPL stock are based upon a cut-and-dry premise: Apple’s valuation is far too high, when you compare it to future growth forecasts. This suggests that AAPL could keep rising in tandem with earnings growth. |
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12229.0 | 2023-12-06 00:00:00 UTC | US retail lobbyists retract key claim on 'organized' retail crime | AAPL | https://www.nasdaq.com/articles/us-retail-lobbyists-retract-key-claim-on-organized-retail-crime | By Katherine Masters
NEW YORK, Dec 5 (Reuters) - The main lobbying group for U.S. retailers retracted its claim that "organized retail crime" accounted for nearly half of all inventory losses in 2021 after finding that incorrect data was used for its analysis.
A spokesperson for the National Retail Federation said Tuesday that the organization had removed the sentence from its report on organized retail crime published in April. It produced the report in collaboration with private security firm K2 Integrity.
The research -- which was edited in late November, according to NRF’s website -- previously stated that “nearly half” of the $94.5 billion in inventory losses reported by retailers in a 2021 survey “was attributable” to organized retail crime.
Retail executives and law enforcement officials use the term organized retail crime to describe coordinated groups of thieves who shoplift or steal from retailers' warehouses and trucks, reselling stolen merchandise on the black market.
The NRF's claim that organized retail crime accounted for "nearly half" of inventory losses was repeated in multiple media reports on the issue. The NRF has cited growing rates of crime in calls for Congress to pass new laws, including proposed legislation that would broaden the scope of offenses considered “organized” crime and increase potential penalties.
According to NRF spokesperson Danielle Inman, the claim that organized crime accounted for nearly half of all inventory losses was based on two-year-old testimony from Ben Dugan, former president of the advocacy group Coalition of Law Enforcement and Retail. In 2021, he told a U.S. Senate committee that organized retail crime accounted for $45 billion in annual losses for retailers, according to estimates by the coalition.
The inclusion of the claim in NRF’s report was “taken directly from Ben’s testimony” and “was an inference made by the K2 analyst linking the results of the NRF survey from 2021 and Ben Dugan’s statement made that same year,” Inman said.
K2 Integrity did not immediately respond to a request for comment. Dugan could not immediately be reached for comment on how the coalition calculated the $45 billion figure.
The NRF also removed references to the coalition’s research in its April report.
The NRF's retraction highlights ongoing difficulties in quantifying the role crime plays in “shrink” -- another industry term for inventory losses due to any cause, from shipping mistakes to clerical errors.
Some law enforcement sources, including a November report from the Council on Criminal Justice, suggest that shoplifting outside major cities like New York has decreased since the start of the COVID-19 pandemic. Many retailers, however, say that shoplifting is widely underreported and crime statistics do not accurately reflect the scope of the problem.
Target TGT.N, DICK’s Sporting Goods DKS.N and Walgreens WBA.O are among major retailers that have cited rising crime as a significant drag on profitability, though some have since walked back on those concerns. In a Januaryearnings call Walgreens’ CEO told investors that “maybe we cried too much” when reporting rising shoplifting the previous year.
Industry data, on the other hand, is often “noisy” or conflates broader statistics on shrink with those on organized retail crime, according to Trevor Wagener, chief economist for the Computer & Communications Industry Association, which has analyzed retail crime data on behalf of members such as Amazon.com AMZN.O and Apple AAPL.O.
He pointed to the Retail Industry Leaders Association’s recent estimate that organized crime cost U.S. retailers nearly $70 billion a year, which relied on data from five Fortune 500 companies RILA described as “some of the largest retailers in the country.”
“That’s a very significant extrapolation, especially in an industry where it’s well known that shrink issues vary quite a bit depending on the category of the retailer,” Wagener said.
A spokesperson for RILA said the group "stand[s] by the data from our 2021 report."
NRF data from its annual Retail Security Survey indicates that the percentage of shrink attributed to external theft, including organized retail crime, has largely remained around 36% since 2015.
(Reporting by Katherine Masters; Editing by Leslie Adler)
(([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. | Industry data, on the other hand, is often “noisy” or conflates broader statistics on shrink with those on organized retail crime, according to Trevor Wagener, chief economist for the Computer & Communications Industry Association, which has analyzed retail crime data on behalf of members such as Amazon.com AMZN.O and Apple AAPL.O. According to NRF spokesperson Danielle Inman, the claim that organized crime accounted for nearly half of all inventory losses was based on two-year-old testimony from Ben Dugan, former president of the advocacy group Coalition of Law Enforcement and Retail. The NRF's retraction highlights ongoing difficulties in quantifying the role crime plays in “shrink” -- another industry term for inventory losses due to any cause, from shipping mistakes to clerical errors. | Industry data, on the other hand, is often “noisy” or conflates broader statistics on shrink with those on organized retail crime, according to Trevor Wagener, chief economist for the Computer & Communications Industry Association, which has analyzed retail crime data on behalf of members such as Amazon.com AMZN.O and Apple AAPL.O. By Katherine Masters NEW YORK, Dec 5 (Reuters) - The main lobbying group for U.S. retailers retracted its claim that "organized retail crime" accounted for nearly half of all inventory losses in 2021 after finding that incorrect data was used for its analysis. The research -- which was edited in late November, according to NRF’s website -- previously stated that “nearly half” of the $94.5 billion in inventory losses reported by retailers in a 2021 survey “was attributable” to organized retail crime. | Industry data, on the other hand, is often “noisy” or conflates broader statistics on shrink with those on organized retail crime, according to Trevor Wagener, chief economist for the Computer & Communications Industry Association, which has analyzed retail crime data on behalf of members such as Amazon.com AMZN.O and Apple AAPL.O. The research -- which was edited in late November, according to NRF’s website -- previously stated that “nearly half” of the $94.5 billion in inventory losses reported by retailers in a 2021 survey “was attributable” to organized retail crime. He pointed to the Retail Industry Leaders Association’s recent estimate that organized crime cost U.S. retailers nearly $70 billion a year, which relied on data from five Fortune 500 companies RILA described as “some of the largest retailers in the country.” “That’s a very significant extrapolation, especially in an industry where it’s well known that shrink issues vary quite a bit depending on the category of the retailer,” Wagener said. | Industry data, on the other hand, is often “noisy” or conflates broader statistics on shrink with those on organized retail crime, according to Trevor Wagener, chief economist for the Computer & Communications Industry Association, which has analyzed retail crime data on behalf of members such as Amazon.com AMZN.O and Apple AAPL.O. The research -- which was edited in late November, according to NRF’s website -- previously stated that “nearly half” of the $94.5 billion in inventory losses reported by retailers in a 2021 survey “was attributable” to organized retail crime. According to NRF spokesperson Danielle Inman, the claim that organized crime accounted for nearly half of all inventory losses was based on two-year-old testimony from Ben Dugan, former president of the advocacy group Coalition of Law Enforcement and Retail. |
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12230.0 | 2023-12-06 00:00:00 UTC | 48% of Warren Buffett's $363 Billion Portfolio Is Invested in Just 1 Stock | AAPL | https://www.nasdaq.com/articles/48-of-warren-buffetts-%24363-billion-portfolio-is-invested-in-just-1-stock | Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett once said, "Diversification is protection against ignorance. It makes little sense if you know what you are doing." Indeed, he lives by that philosophy: Berkshire has nearly half of its $363 billion stock portfolio in a single company.
For context, Buffett runs 90% of Berkshire's portfolio, and large positions like Apple (NASDAQ: AAPL), Coca-Cola, Bank of America, American Express, and Chevron are either entirely or primarily under his control, according to Barron's. Meanwhile, his co-investment managers Todd Combs and Ted Weschler handle the other 10% of the portfolio.
The five companies listed above account for an astonishing 75% of the $363 billion that Berkshire has invested in stocks, and Apple alone accounts for 48%. That screams high conviction. Indeed, Berkshire has never sold a single share of Apple since first taking a position in 2016. In fact, the company has added to the position as recently as the first quarter of 2023, and Buffett said he believes Apple is the best business in which Berkshire has a stake.
Is Apple stock worth buying?
Apple has a durable economic moat built on brand authority and proprietary technology
Warren Buffett believes an enduring economic moat is one of the most important qualities a business can possess, and moats generally boil down to pricing power. Apple has that in spades. Its ability to pair appealing hardware, proprietary software, and services creates a unique user experience that has led to profound customer loyalty and brand authority.
Those qualities allow Apple to charge a premium for its products. The average iPhone sells for 3.5 times more than the average Alphabet-owned Android smartphone. Customer loyalty and brand authority have also helped Apple achieve a strong presence in several consumer electronics markets.
Apple is the largest smartphone manufacturer in the U.S. (55% market share) and the second-largest smartphone manufacturer worldwide (16% market share). It is also the fourth-largest personal computer manufacturer globally, and the leader in tablets and smartwatches. Collectively, that hints at mid-single-digit revenue growth in hardware through 2030, simply because the broader consumer electronics market is forecasted to increase at 6.6% annually during that period.
However, those products are only the first half of the equation. The second half is the services ecosystem that Apple uses to monetize its installed base, which currently exceeds 2 billion devices. Those services include App Store sales, iCloud storage, Apple Pay, and subscription products like Apple TV+ and Apple Music, among other ancillary revenue streams.
Apple's services business is particularly compelling because (1) it earns higher margins than the hardware business and (2) the company has a strong presence in several relevant markets. For instance, the Apple App Store makes twice as much money as Alphabet's Google Play Store, and Apple Pay is the most popular in-store mobile wallet among U.S. consumers.
Ultimately, I think Apple could achieve high-single-digit revenue growth on an annual basis through the end of the decade, provided the company continues to draw consumers into its services ecosystem.
Apple's full-year financial performance left much to be desired
Apple reported lackluster financial results in fiscal 2023 (ended Sept. 30) as difficult economic conditions weighed on consumer spending. Total revenue dropped 3% to $383 billion, driven by declines in every device category, offset by a modest increase in services revenue, as detailed below:
iPhone sales declined 2% to $201 billion
Mac sales declined 27% to $29 billion
iPad sales declined 3% to $28 billion
Wearables, Home, and Accessories sales declined 3% to $40 billion
Services sales increased 9% to $85 billion
Additionally, despite an 80-basis-point expansion in gross margin, net income still declined 3% to $97 billion as operating costs continued to climb. However, earnings per share actually increased (less than a percentage point) because Apple plowed $77.6 billion into stock buybacks.
On the bright side, services revenue growth accelerated to 16% year over year in the fourth quarter, and Apple achieved record sales in several service categories, including App Store, AppleCare, iCloud, Apple Pay, and Apple TV+. That bodes well for the business because the services segment will likely be the primary growth driver going forward.
Apple stock quadrupled over the last five years, but shares look expensive
Apple is a wonderful business with a durable economic moat built on brand authority and proprietary technology, and those qualities afford the company a great deal of pricing power. To that end, Apple has been an extraordinary investment in the past. The stock soared 328% during the last five years.
However, I doubt shareholders will see anything close to that over the next five years. The stock traded at 15 times earnings five years ago, a much cheaper multiple than its current valuation of 31.3 times earnings. But the multiple itself is not necessarily important. What matters is how quickly Apple can grow its bottom line in the future, and Wall Street expects annual earnings growth of 10% on a per-share basis over the next three to five years.
That forecast makes its current valuation look quite expensive. So I plan to steer clear of Apple stock for the time being. But Buffett clearly has high conviction in the company, so I would not fault anyone for buying a small position in Apple stock today.
The last piece of advice I would offer is that readers should not allocate half of their portfolios to any single stock. Buffett is a highly skilled and highly accomplished stock picker, and his lead is almost always worth following. But diversification is important for the vast majority of retail investors because it reduces risk.
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American Express is an advertising partner of The Ascent, a Motley Fool company. 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. Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Chevron 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. | For context, Buffett runs 90% of Berkshire's portfolio, and large positions like Apple (NASDAQ: AAPL), Coca-Cola, Bank of America, American Express, and Chevron are either entirely or primarily under his control, according to Barron's. Its ability to pair appealing hardware, proprietary software, and services creates a unique user experience that has led to profound customer loyalty and brand authority. Ultimately, I think Apple could achieve high-single-digit revenue growth on an annual basis through the end of the decade, provided the company continues to draw consumers into its services ecosystem. | For context, Buffett runs 90% of Berkshire's portfolio, and large positions like Apple (NASDAQ: AAPL), Coca-Cola, Bank of America, American Express, and Chevron are either entirely or primarily under his control, according to Barron's. Apple has a durable economic moat built on brand authority and proprietary technology Warren Buffett believes an enduring economic moat is one of the most important qualities a business can possess, and moats generally boil down to pricing power. On the bright side, services revenue growth accelerated to 16% year over year in the fourth quarter, and Apple achieved record sales in several service categories, including App Store, AppleCare, iCloud, Apple Pay, and Apple TV+. | For context, Buffett runs 90% of Berkshire's portfolio, and large positions like Apple (NASDAQ: AAPL), Coca-Cola, Bank of America, American Express, and Chevron are either entirely or primarily under his control, according to Barron's. Total revenue dropped 3% to $383 billion, driven by declines in every device category, offset by a modest increase in services revenue, as detailed below: iPhone sales declined 2% to $201 billion Mac sales declined 27% to $29 billion iPad sales declined 3% to $28 billion Wearables, Home, and Accessories sales declined 3% to $40 billion Services sales increased 9% to $85 billion Additionally, despite an 80-basis-point expansion in gross margin, net income still declined 3% to $97 billion as operating costs continued to climb. On the bright side, services revenue growth accelerated to 16% year over year in the fourth quarter, and Apple achieved record sales in several service categories, including App Store, AppleCare, iCloud, Apple Pay, and Apple TV+. | For context, Buffett runs 90% of Berkshire's portfolio, and large positions like Apple (NASDAQ: AAPL), Coca-Cola, Bank of America, American Express, and Chevron are either entirely or primarily under his control, according to Barron's. Apple stock quadrupled over the last five years, but shares look expensive Apple is a wonderful business with a durable economic moat built on brand authority and proprietary technology, and those qualities afford the company a great deal of pricing power. The stock traded at 15 times earnings five years ago, a much cheaper multiple than its current valuation of 31.3 times earnings. |
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12231.0 | 2023-12-06 00:00:00 UTC | Is iShares Core S&P U.S. Growth ETF (IUSG) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-ishares-core-sp-u.s.-growth-etf-iusg-a-strong-etf-right-now-10 | Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth 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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Blackrock, and has been able to amass over $14.25 billion, which makes it the largest ETF in the Style Box - All Cap Growth. IUSG seeks to match the performance of the S&P 900 Growth Index before fees and expenses.
The S&P 900 Growth Index measures the performance of the large and mid-capitalization growth sector of the U.S. equity market.
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.
Annual operating expenses for IUSG are 0.04%, which makes it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 1.05%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
For IUSG, it has heaviest allocation in the Information Technology sector --about 35.70% of the portfolio --while Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.35% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
IUSG's top 10 holdings account for about 43.81% of its total assets under management.
Performance and Risk
The ETF has added about 24.26% and was up about 17.37% so far this year and in the past one year (as of 12/06/2023), respectively. IUSG has traded between $79.81 and $100.86 during this last 52-week period.
IUSG has a beta of 1.04 and standard deviation of 21.24% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 496 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P U.S. Growth ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Fidelity Blue Chip Growth ETF (FBCG) tracks ---------------------------------------- and the iShares Morningstar Growth ETF (ILCG) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID. Fidelity Blue Chip Growth ETF has $918.69 million in assets, iShares Morningstar Growth ETF has $1.84 billion. FBCG has an expense ratio of 0.59% and ILCG charges 0.04%.
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 - All Cap Growth.
Bottom Line
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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 12.35% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Fidelity Blue Chip Growth ETF (FBCG): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. 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. | Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Fidelity Blue Chip Growth ETF (FBCG): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.35% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market. | Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Fidelity Blue Chip Growth ETF (FBCG): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.35% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.35% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Fidelity Blue Chip Growth ETF (FBCG): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market. |
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12232.0 | 2023-12-06 00:00:00 UTC | 3 Artificial Intelligence (AI) Stocks With More Potential Than Any Cryptocurrency | AAPL | https://www.nasdaq.com/articles/3-artificial-intelligence-ai-stocks-with-more-potential-than-any-cryptocurrency-2 | Data from Grand View Research shows global cryptocurrency revenue hit $5 billion last year and is projected to expand at a compound annual growth rate (CAGR) of 12% through 2030. While that growth is not insignificant, it pales in comparison to the artificial intelligence (AI) market's CAGR of 37% for the rest of the decade and value of $137 billion.
Data by YCharts.
Excitement over cryptocurrency faltered in recent years as volatility caused pullback from investors. The chart above compares the two-year growth between the two most prominent cryptocurrencies and three companies active in AI. While not all of the tech giants have delivered growth, they have performed significantly better than Bitcoin and Ethereum.
Cryptocurrencies have developed a reputation for inconsistency. However, it's just the opposite with tech stocks. The tech market has a reputation for rewarding innovative companies with consistent gains over the long term, with that unlikely to change alongside a recent boom in AI.
So, here are three AI stocks with more potential than any cryptocurrency.
1. Alphabet
Shares in Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) have soared 50% year to date, rallying investors with promising growth in its digital advertising business and increasing potential in AI.
The company faced challenges last year as macroeconomic headwinds curbed ad spending. However, cost-cutting measures have paid off and illustrated Alphabet's massive growth potential over the long term.
In the third quarter of 2023, the company posted revenue growth of 11% year over year, beating analysts' expectations by $980 million. Meanwhile, Google Search and YouTube ad revenue jumped 11% and 12%, respectively.
Potent brands such as Google, Android, and YouTube have made Alphabet an advertising powerhouse, attracting billions of users daily. However, these platforms also strengthen the company's AI prospects. Alphabet will launch its highly anticipated large language model Gemini next year, which is expected to be competitive with OpenAI's GPT-4.
Gemini and Alphabet's extensive user base across its different platforms could prove a lucrative combination, presenting countless opportunities to monetize its AI offerings.
Data by YCharts.
In addition to a solid outlook in AI, Alphabet's stock could be the biggest bargain in the industry. The table above shows Alphabet's price-to-earnings ratio (P/E) and price-to-free cash flow are the lowest among some of the biggest names in AI, suggesting shares in the Google company offer the most value.
Alphabet's low stock price makes it far more reliable than any cryptocurrency, with its prospects in AI potentially offering investors more growth over the long term.
2. Nvidia
All eyes have been on Nvidia (NASDAQ: NVDA) this year as its chips have become the go-to for developers across the AI market. The company's dominance in graphics processing units (GPUs) gave it a leg up on its competitors, allowing it to secure an estimated 80% to 95% market share in AI chips.
Soaring demand for AI GPUs has seen Nvidia's revenue skyrocket. In Q3 2024 (ended October 2023), the company reported revenue growth of 206% year over year, with operating income up more than 1,600%. The meteoric growth was primarily thanks to a 279% rise in data center revenue, which benefited from increased chip sales.
Data by YCharts.
Nvidia might not have a P/E or price-to-free cash flow that screams "bargain," but both metrics are at one of their lowest points in the last six months. The chart above illustrates how these metrics have significantly declined for Nvidia, representing a massive increase in value for its stock and making it the cheapest it has been in months.
As a leading chipmaker in AI, Nvidia has much to gain from the sector's CAGR of 37%. Its chips are crucial to the development of the industry, with its stock a better bet than any cryptocurrency.
3. Apple
Apple (NASDAQ: AAPL) has had a particularly challenging year as spikes in inflation caused consumers to pull back. The company posted a revenue dip of 3% year over year in its fiscal 2023 after sales declined across its four product segments.
However, Apple remains the biggest name in consumer tech, with leading market shares in smartphones, tablets, headphones, and smartwatches. The company might not be as far in its AI journey as companies like Nvidia and Microsoft, but the popularity of its devices and services could make it a sleeping giant in the sector.
In 2023, Apple's research and development spending increased by nearly $4 billion, with much of that going to generative AI development. The tech giant has reportedly built its own large language model and a chatbot, which developers call Apple GPT. Apple has used its research to introduce several AI features across its product lineup this year but could easily monetize its offerings down the line.
With $99 billion in free cash flow and $30 billion in cash and equivalents, the company has the funds to overcome market challenges and keep investing in its business.
Apple's P/E of 31 and price-to-free cash flow of 30 make its stock more expensive than Alphabet's but still cheaper than many other AI companies. Meanwhile, its shares have outperformed Bitcoin and Ethereum over the last two years. And with that, I would bet on Apple any day before I'd bet on a cryptocurrency.
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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, Bitcoin, Ethereum, 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 had a particularly challenging year as spikes in inflation caused consumers to pull back. Data from Grand View Research shows global cryptocurrency revenue hit $5 billion last year and is projected to expand at a compound annual growth rate (CAGR) of 12% through 2030. The table above shows Alphabet's price-to-earnings ratio (P/E) and price-to-free cash flow are the lowest among some of the biggest names in AI, suggesting shares in the Google company offer the most value. | Apple Apple (NASDAQ: AAPL) has had a particularly challenging year as spikes in inflation caused consumers to pull back. Alphabet Shares in Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) have soared 50% year to date, rallying investors with promising growth in its digital advertising business and increasing potential in AI. In the third quarter of 2023, the company posted revenue growth of 11% year over year, beating analysts' expectations by $980 million. | Apple Apple (NASDAQ: AAPL) has had a particularly challenging year as spikes in inflation caused consumers to pull back. Alphabet Shares in Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) have soared 50% year to date, rallying investors with promising growth in its digital advertising business and increasing potential in AI. Alphabet's low stock price makes it far more reliable than any cryptocurrency, with its prospects in AI potentially offering investors more growth over the long term. | Apple Apple (NASDAQ: AAPL) has had a particularly challenging year as spikes in inflation caused consumers to pull back. Data from Grand View Research shows global cryptocurrency revenue hit $5 billion last year and is projected to expand at a compound annual growth rate (CAGR) of 12% through 2030. So, here are three AI stocks with more potential than any cryptocurrency. |
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12233.0 | 2023-12-06 00:00:00 UTC | Is Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-goldman-sachs-activebeta-world-low-vol-plus-equity-etf-glov-a-strong-etf-right-now-5 | Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022.
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.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: 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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $745.71 million, making it one of the average sized ETFs in the Broad Developed World ETFs. GLOV seeks to match the performance of the GOLDMAN SACHS ACTBT WORLD LW VL PL EQ ID before fees and expenses.
The Goldman Sachs ActiveBeta World Low Vol Plus Equity Index delivers exposure to large and mid-capitalization equity securities of developed market issuers, including the United States.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for this ETF are 0.25%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.98%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.35% of total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY).
GLOV's top 10 holdings account for about 13.96% of its total assets under management.
Performance and Risk
The ETF return is roughly 12.09% and is up about 9.41% so far this year and in the past one year (as of 12/06/2023), respectively. GLOV has traded between $37.90 and $42.59 during this last 52-week period.
GLOV has a beta of 0.76 and standard deviation of 14.77% for the trailing three-year period. With about 399 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares MSCI ACWI ETF (ACWI) tracks MSCI All Country World Index and the Vanguard Total World Stock ETF (VT) tracks FTSE Global All Cap Index. IShares MSCI ACWI ETF has $18.18 billion in assets, Vanguard Total World Stock ETF has $29.88 billion. ACWI has an expense ratio of 0.32% and VT charges 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Developed World ETFs.
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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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 3.35% of total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta. | Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.35% of total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022. | Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.35% of total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.35% of total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022. |
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12234.0 | 2023-12-06 00:00:00 UTC | Apple told component suppliers to source iPhone 16 batteries from India- FT | AAPL | https://www.nasdaq.com/articles/apple-told-component-suppliers-to-source-iphone-16-batteries-from-india-ft | Dec 6 (Reuters) - Apple AAPL.O has informed component suppliers of its preference to source batteries for the forthcoming iPhone 16 from Indian factories, the Financial Times reported on Wednesday.
(Reporting by Shivani Tanna in Bengaluru; Editing by Nivedita Bhattacharjee)
(([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. | Dec 6 (Reuters) - Apple AAPL.O has informed component suppliers of its preference to source batteries for the forthcoming iPhone 16 from Indian factories, the Financial Times reported on Wednesday. (Reporting by Shivani Tanna in Bengaluru; Editing by Nivedita Bhattacharjee) (([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. | Dec 6 (Reuters) - Apple AAPL.O has informed component suppliers of its preference to source batteries for the forthcoming iPhone 16 from Indian factories, the Financial Times reported on Wednesday. (Reporting by Shivani Tanna in Bengaluru; Editing by Nivedita Bhattacharjee) (([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. | Dec 6 (Reuters) - Apple AAPL.O has informed component suppliers of its preference to source batteries for the forthcoming iPhone 16 from Indian factories, the Financial Times reported on Wednesday. (Reporting by Shivani Tanna in Bengaluru; Editing by Nivedita Bhattacharjee) (([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. | Dec 6 (Reuters) - Apple AAPL.O has informed component suppliers of its preference to source batteries for the forthcoming iPhone 16 from Indian factories, the Financial Times reported on Wednesday. (Reporting by Shivani Tanna in Bengaluru; Editing by Nivedita Bhattacharjee) (([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. |
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12235.0 | 2023-12-06 00:00:00 UTC | Apple (NASDAQ:AAPL) Stock Reclaims $3 Trillion Market Cap; What Comes Next? | AAPL | https://www.nasdaq.com/articles/apple-nasdaq%3Aaapl-stock-reclaims-%243-trillion-market-cap-what-comes-next | Apple (NASDAQ:AAPL) stock again crossed the $3 trillion market cap. This comes for the first time since August, after its shares closed 2.11% higher on December 5. Despite declining iPad and Wearables sales, AAPL stock has shown remarkable resilience, registering a nearly 50% gain year-to-date. Further, two Top Wall Street analysts expect the shares of the iPhone maker to reach $240, the Street-high price target, in the next 12 months. This suggests a further upside potential of 24.08% from current levels.
Factors to Support Apple Stock
The higher iPhone revenue, ongoing strength in the Services segment, and a growing installed base of active devices will support Apple’s financials and stock. However, the tough year-over-year comparisons may hurt iPad sales. Concurrently, softness in the sales of the Wearables, Home, and Accessories (WHA) segment will remain a drag in the short term.
In the meantime, Wedbush analyst Daniel Ives is bullish about Apple’s prospects and maintained a Buy rating on the stock on November 24. Ives’ optimism stems from strength in iPhone sales and momentum in the Services segment. It's worth noting that Apple set an all-time revenue record in the Services segment and registered double-digit growth in the fourth quarter. The analyst has a price target of $240 on AAPL stock.
Echoing similar sentiments, Tigress Financial analyst Ivan Feinseth reiterated a Buy on Apple stock on November 16. Feinseth has a price target of $240 and expects “record iPhone sales and services revenue, along with margin expansion,” to support the company’s financials and enable it to enhance shareholders’ value.
Is Apple a Buy for Long Term?
Apple is a solid long-term stock, thanks to the sustained demand for its iPhones, especially in emerging markets, and a growing Services segment. This is reflected in analysts’ bullish outlook for its stock.
Apple stock has received 25 Buys and eight Holds, translating into a Strong Buy consensus rating. Moreover, due to the significant appreciation in its value, analysts’ average price target of $201.99 on Apple stock reflects an upside potential of 4.43% from current levels.
Bottom Line
Apple will benefit from higher iPhone sales and the ongoing momentum in the Services segment. In addition, the improving supply environment will support its top line. While two Top Wall Street analysts see further upside in Apple stock, the average price target shows limited upside potential due to the recent rally in its share price.
Nonetheless, Apple is a solid long-term stock, thanks to its record iPhone and Services revenues and its commitment to enhance its shareholders’ value.
Disclosure
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) stock again crossed the $3 trillion market cap. Despite declining iPad and Wearables sales, AAPL stock has shown remarkable resilience, registering a nearly 50% gain year-to-date. The analyst has a price target of $240 on AAPL stock. | Apple (NASDAQ:AAPL) stock again crossed the $3 trillion market cap. Despite declining iPad and Wearables sales, AAPL stock has shown remarkable resilience, registering a nearly 50% gain year-to-date. The analyst has a price target of $240 on AAPL stock. | Apple (NASDAQ:AAPL) stock again crossed the $3 trillion market cap. Despite declining iPad and Wearables sales, AAPL stock has shown remarkable resilience, registering a nearly 50% gain year-to-date. The analyst has a price target of $240 on AAPL stock. | The analyst has a price target of $240 on AAPL stock. Apple (NASDAQ:AAPL) stock again crossed the $3 trillion market cap. Despite declining iPad and Wearables sales, AAPL stock has shown remarkable resilience, registering a nearly 50% gain year-to-date. |
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12236.0 | 2023-12-06 00:00:00 UTC | EXCLUSIVE-China EV maker Nio to spin off its battery production unit -sources | AAPL | https://www.nasdaq.com/articles/exclusive-china-ev-maker-nio-to-spin-off-its-battery-production-unit-sources | SHANGHAI, Dec 6 (Reuters) - Chinese electric vehicle maker Nio 9866.HK plans to spin off its battery manufacturing unit, according to two people with knowledge of the matter, as part of the efforts by the company to turn profitable, reduce costs and improve efficiency.
The nascent battery unit, led by senior manufacturing engineers whose previous employers include Apple AAPL.O and Panasonic 6752.T, will seek external investors after the spin-off that could happen as early as the end of this year, with a valuation to be decided later, the people said.
They spoke on condition of anonymity because the information is confidential.
Nio declined to comment beyond founder and CEO William Li's comments on anearnings callon Tuesday that the automaker would continue to do in-house research and development on batteries but now planned to outsource all of the manufacturing.
The company, which has a market value of $12.4 billion, currently buys all of its batteries from CATL 300750.SZ and CALB Group 3931.HK.
The spin-off underscores Nio's efforts to turn profitable sooner, as its previous plan was to develop and manufacture some batteries on its own and outsource production for the remainder to other suppliers like Tesla does, one the people said.
Under the plan, Nio battery unit's top engineers, some of whose past experience also included working on quality and supplier management at Tesla's TSLA.O Nevada battery factory, will join the new firm while some staff will be merged into other departments at Nio, both of the people said.
Nio hired these engineers in an effort to mass produce large cylindrical cells similar to Tesla's 4680 in a planned plant in China's eastern Anhui province in 2025 at the earliest, the first person said.
The assets to be spun off could include the planned plant, some testing equipment and intellectual property, the person added.
The planned plant was expected to have an annual capacity to produce 40 gigawatt hours (GWh) of batteries that could power about 400,000 long-range EVs, Reuters reported in February.
GROWING LOSSES
Nio ranked ninth in EV and plug-in hybrid sales in the first 10 months of the year in China with 126,067 units sold, according to data from China Passenger Car Association.
The company reported a third-quarter loss of 4.56 billion yuan ($637.06 million) on Tuesday, a 10.8% increase from the same period a year ago amid a fierce EV price war.
Li told analysts on theearnings callthat the company would defer its plan of bringing battery production in-house because that would not help it improve profitability over the next three years. He did not mention any spin-off plans for the battery manufacturing unit.
Nio has for years pursued a strategy of developing end-to-end technologies for EVs including advanced manufacturing, batteries, autonomous driving and chips.
But Nio is now working to reassure investors concerned that it has taken on too much as it has in recent years also ventured into areas such as smartphone manufacturing and battery swapping, and invested heavily in drawing top talent and facilities.
The company announced last month that it would trim its workforce and defer long-term investments, efforts executives said could save up to 2 billion yuan in costs in 2024.
It has also partnered with Geely 0175.HK and state-owned Changan Automobile 000625.SZ to jointly develop EVs capable of battery-swaps and to build swapping stations to reduce costs.
The company is also expanding abroad. Reuters reported in October that it was considering building a dealer network in Europe to speed up sales growth, in part to ease cash pressure.
($1 = 7.1579 Chinese yuan renminbi)
(Reporting by Zhang Yan, Zhuzhu Cui and Brenda Goh; Editing by Jamie Freed)
(([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 nascent battery unit, led by senior manufacturing engineers whose previous employers include Apple AAPL.O and Panasonic 6752.T, will seek external investors after the spin-off that could happen as early as the end of this year, with a valuation to be decided later, the people said. SHANGHAI, Dec 6 (Reuters) - Chinese electric vehicle maker Nio 9866.HK plans to spin off its battery manufacturing unit, according to two people with knowledge of the matter, as part of the efforts by the company to turn profitable, reduce costs and improve efficiency. But Nio is now working to reassure investors concerned that it has taken on too much as it has in recent years also ventured into areas such as smartphone manufacturing and battery swapping, and invested heavily in drawing top talent and facilities. | The nascent battery unit, led by senior manufacturing engineers whose previous employers include Apple AAPL.O and Panasonic 6752.T, will seek external investors after the spin-off that could happen as early as the end of this year, with a valuation to be decided later, the people said. SHANGHAI, Dec 6 (Reuters) - Chinese electric vehicle maker Nio 9866.HK plans to spin off its battery manufacturing unit, according to two people with knowledge of the matter, as part of the efforts by the company to turn profitable, reduce costs and improve efficiency. The spin-off underscores Nio's efforts to turn profitable sooner, as its previous plan was to develop and manufacture some batteries on its own and outsource production for the remainder to other suppliers like Tesla does, one the people said. | The nascent battery unit, led by senior manufacturing engineers whose previous employers include Apple AAPL.O and Panasonic 6752.T, will seek external investors after the spin-off that could happen as early as the end of this year, with a valuation to be decided later, the people said. SHANGHAI, Dec 6 (Reuters) - Chinese electric vehicle maker Nio 9866.HK plans to spin off its battery manufacturing unit, according to two people with knowledge of the matter, as part of the efforts by the company to turn profitable, reduce costs and improve efficiency. The spin-off underscores Nio's efforts to turn profitable sooner, as its previous plan was to develop and manufacture some batteries on its own and outsource production for the remainder to other suppliers like Tesla does, one the people said. | The nascent battery unit, led by senior manufacturing engineers whose previous employers include Apple AAPL.O and Panasonic 6752.T, will seek external investors after the spin-off that could happen as early as the end of this year, with a valuation to be decided later, the people said. The spin-off underscores Nio's efforts to turn profitable sooner, as its previous plan was to develop and manufacture some batteries on its own and outsource production for the remainder to other suppliers like Tesla does, one the people said. Under the plan, Nio battery unit's top engineers, some of whose past experience also included working on quality and supplier management at Tesla's TSLA.O Nevada battery factory, will join the new firm while some staff will be merged into other departments at Nio, both of the people said. |
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12237.0 | 2023-12-06 00:00:00 UTC | TipRanks All-Star Analyst – Who is the Best on AAPL Stock? | AAPL | https://www.nasdaq.com/articles/tipranks-all-star-analyst-who-is-the-best-on-aapl-stock-1 | The TipRanks All-star Analyst of the Day title goes to Krish Sankar of research firm TD Cowen. Remarkably, Sankar ranks #243 out of the 8,617 Wall Street analysts tracked by TipRanks. One of the key stocks in his coverage is iPhone maker Apple (NASDAQ:AAPL), for which he is both the Most Accurate and Most Profitable analyst.
Most Profitable and Accurate Analyst on AAPL Stock
When we look at Sankar’s recommendation for Apple, one of the most innovative tech companies in the world, we see that over the past year, Sankar has had a 93% success rate on the stock. Plus, he has earned average returns of 47.08% in the said period.
On an overall basis, copying Sankar’s trades and holding them for a year would give you an average return of 16.3%, with 67% of your trades generating a profit.
Not Just AAPL
Sankar primarily focuses on covering the technology sector in the U.S. and U.K. markets. Importantly, his most profitable rating to date was a Buy on COHU (NASDAQ:COHU). This company provides semiconductor test equipment and services. The analyst earned a massive 206% return on the call between April 17, 2020, and April 17, 2021.
Following phenomenally successful analysts’ ratings can add profit to your portfolio. Find the best analyst to follow for any stock by scrolling down to the “Best Analyst Covering” feature on its Analyst Forecast page.
To follow the best Wall Street analysts, take a look at the list of Top Analysts on TipRanks.
Disclosure
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 the key stocks in his coverage is iPhone maker Apple (NASDAQ:AAPL), for which he is both the Most Accurate and Most Profitable analyst. Most Profitable and Accurate Analyst on AAPL Stock When we look at Sankar’s recommendation for Apple, one of the most innovative tech companies in the world, we see that over the past year, Sankar has had a 93% success rate on the stock. Not Just AAPL Sankar primarily focuses on covering the technology sector in the U.S. and U.K. markets. | One of the key stocks in his coverage is iPhone maker Apple (NASDAQ:AAPL), for which he is both the Most Accurate and Most Profitable analyst. Most Profitable and Accurate Analyst on AAPL Stock When we look at Sankar’s recommendation for Apple, one of the most innovative tech companies in the world, we see that over the past year, Sankar has had a 93% success rate on the stock. Not Just AAPL Sankar primarily focuses on covering the technology sector in the U.S. and U.K. markets. | Most Profitable and Accurate Analyst on AAPL Stock When we look at Sankar’s recommendation for Apple, one of the most innovative tech companies in the world, we see that over the past year, Sankar has had a 93% success rate on the stock. One of the key stocks in his coverage is iPhone maker Apple (NASDAQ:AAPL), for which he is both the Most Accurate and Most Profitable analyst. Not Just AAPL Sankar primarily focuses on covering the technology sector in the U.S. and U.K. markets. | Most Profitable and Accurate Analyst on AAPL Stock When we look at Sankar’s recommendation for Apple, one of the most innovative tech companies in the world, we see that over the past year, Sankar has had a 93% success rate on the stock. One of the key stocks in his coverage is iPhone maker Apple (NASDAQ:AAPL), for which he is both the Most Accurate and Most Profitable analyst. Not Just AAPL Sankar primarily focuses on covering the technology sector in the U.S. and U.K. markets. |
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12238.0 | 2023-12-05 00:00:00 UTC | Dow Movers: PG, AAPL | AAPL | https://www.nasdaq.com/articles/dow-movers%3A-pg-aapl | In early trading on Tuesday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.6%. Year to date, Apple registers a 48.1% gain.
And the worst performing Dow component thus far on the day is Procter & Gamble, trading down 1.5%. Procter & Gamble is lower by about 1.1% looking at the year to date performance.
Two other components making moves today are Intel, trading down 1.2%, and Verizon Communications, trading up 1.1% on the day.
VIDEO: Dow Movers: PG, 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: PG, 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 Tuesday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.6%. And the worst performing Dow component thus far on the day is Procter & Gamble, trading down 1.5%. | VIDEO: Dow Movers: PG, 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 Tuesday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.6%. Year to date, Apple registers a 48.1% gain. | VIDEO: Dow Movers: PG, 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 Tuesday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.6%. And the worst performing Dow component thus far on the day is Procter & Gamble, trading down 1.5%. | VIDEO: Dow Movers: PG, 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 Procter & Gamble, trading down 1.5%. Procter & Gamble is lower by about 1.1% looking at the year to date performance. |
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12239.0 | 2023-12-05 00:00:00 UTC | 1 Small Fintech Stock That Could Soar in 2024 | AAPL | https://www.nasdaq.com/articles/1-small-fintech-stock-that-could-soar-in-2024 | 2023 has been yet another tough year for many digital-payments and financial-technology companies. With markets like e-commerce slowing in the wake of the pandemic and consumers increasingly under pressure from higher interest rates, growth has been much harder to come by versus previous years.
But one small fintech has been holding its own and could be heating up for 2024: Shift4 Payments (NYSE: FOUR). Despite intense competition from the likes of Block (NYSE: SQ) and fellow small fintechs like Toast (NYSE: TOST), this small stock could be ready to rock for the new year.
Business outperformance set to continue in 2024
Shift4 is a digital-payments platform, processing physical-card acceptance, as well as contactless-card -- tap-to-pay or mobile wallets like Apple (NASDAQ: AAPL) Pay or Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) Google Pay payment acceptance. There is also a bit of software-as-a-service (SaaS) business here as Shift4 also offers things like business-intelligence software and an e-commerce store setup and management tools.
Steep competition abounds in this market, including point-payment solutions like Fiserv (NYSE: FI), integrated-payment providers like the aforementioned Block and Adyen (OTC: ADYE.Y), as well as e-commerce offerings like Shopify (NYSE: SHOP) that also provide various point-of-sale digital-payments acceptance solutions.
Competition has been well highlighted in the fintech arena this year, especially as it has put some downward pressure on some companies' profit margins. But Shift4 has done well by focusing on its niche in hospitality and restaurants. Gross revenue after payment of network fees (think of this as toll fees paid to digital-payment "rails" like Visa (NYSE: V) and Mastercard (NYSE: MA)) is expected to be as much as $960 million for full-year 2023, up about 31% to 32% year over year. And free cash flow (FCF) is expected to be at least $259 million, up 76% year over year.
Focus on profitable returns a winning strategy
Shift4, led by longtime CEO and founder Jared Isaacman, touts its focus on growing profitably. Since its June 2020 initial public offering IPO, Shift4 appears to be really hitting its stride in this department. Isaacman started his company about two decades after its IPO. The company changed to its current name in 2017 after an acquisition.
Besides its high-growth core, now supplemented by Shift4's move upmarket to address bigger customers like sports stadiums and entertainment venues, two recent acquisitions will also contribute to profitable revenue growth in the next year. First is Appetize, purchased for $100 million from competitor SpotOn. This acquisition will increase Shift4's go-to-market with big stadiums and venues. And the long-awaited Finaro acquisition is also now complete, which will begin Shift4's expansion into Europe. Both of these purchases are expected to contribute to adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) beginning in Q4 2023 and accelerating in 2024.
Even before these two opportunistic acquisitions (as many of its peers are struggling with profits right at the moment), Shift4's ramp-up of FCF was already underway. 2024 could thus be a big year for the small-payments company as it digests these two payments providers and begins converting their revenue streams to FCF.
Data by YCharts.
This is a big part of why this small fintech has begun to outperform the Nasdaq Composite Index in the last 12-month stretch. The current valuation of about 18 times trailing-12-month FCF looks mighty cheap to me, assuming Shift4 doesn't falter.
Of note, though, Shift4 does have elevated debt of $1.75 billion as of the end of September 2023, and cash and short-term investments of just $692 million. Shift4's big competitors are also a risk. Life can be tough for small-cap stocks like this one. Customers often switch digital-payment providers in a constant endeavor to cut costs. But Shift4 has proven resilient over the years, building out an affordable option for its price-sensitive users while building a lean and profitable operation itself.
I recently added to my position in Shift4. It's a small position for me, but the company's progress and seemingly cheap valuation have my interest.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Nicholas Rossolillo and his clients have positions in Alphabet, Apple, Block, Mastercard, Shift4 Payments, Shopify, and Visa. The Motley Fool has positions in and recommends Adyen, Alphabet, Apple, Block, Mastercard, Shopify, and Visa. The Motley Fool recommends Shift4 Payments and Toast and recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. 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. | Business outperformance set to continue in 2024 Shift4 is a digital-payments platform, processing physical-card acceptance, as well as contactless-card -- tap-to-pay or mobile wallets like Apple (NASDAQ: AAPL) Pay or Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) Google Pay payment acceptance. With markets like e-commerce slowing in the wake of the pandemic and consumers increasingly under pressure from higher interest rates, growth has been much harder to come by versus previous years. There is also a bit of software-as-a-service (SaaS) business here as Shift4 also offers things like business-intelligence software and an e-commerce store setup and management tools. | Business outperformance set to continue in 2024 Shift4 is a digital-payments platform, processing physical-card acceptance, as well as contactless-card -- tap-to-pay or mobile wallets like Apple (NASDAQ: AAPL) Pay or Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) Google Pay payment acceptance. The Motley Fool has positions in and recommends Adyen, Alphabet, Apple, Block, Mastercard, Shopify, and Visa. The Motley Fool recommends Shift4 Payments and Toast and recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. | Business outperformance set to continue in 2024 Shift4 is a digital-payments platform, processing physical-card acceptance, as well as contactless-card -- tap-to-pay or mobile wallets like Apple (NASDAQ: AAPL) Pay or Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) Google Pay payment acceptance. Despite intense competition from the likes of Block (NYSE: SQ) and fellow small fintechs like Toast (NYSE: TOST), this small stock could be ready to rock for the new year. Steep competition abounds in this market, including point-payment solutions like Fiserv (NYSE: FI), integrated-payment providers like the aforementioned Block and Adyen (OTC: ADYE.Y), as well as e-commerce offerings like Shopify (NYSE: SHOP) that also provide various point-of-sale digital-payments acceptance solutions. | Business outperformance set to continue in 2024 Shift4 is a digital-payments platform, processing physical-card acceptance, as well as contactless-card -- tap-to-pay or mobile wallets like Apple (NASDAQ: AAPL) Pay or Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) Google Pay payment acceptance. 2023 has been yet another tough year for many digital-payments and financial-technology companies. Isaacman started his company about two decades after its IPO. |
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12240.0 | 2023-12-05 00:00:00 UTC | US STOCKS-Wall St mixed as traders assess economic data, megacaps rebound | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-st-mixed-as-traders-assess-economic-data-megacaps-rebound | By Amruta Khandekar and Shristi Achar A
Dec 5 (Reuters) - Wall Street's main indexes were mixed on Tuesday as investors assessed a fresh batch of economic data, including a jobs report, to gauge the probability of rate cuts by the Federal Reserve early next year, while megacap stocks rebounded from the previous day's losses.
U.S. job openings dropped in October to the lowest level since early 2021, indicating that the labor market was easing, while U.S. services sector activity picked up in November.
"The data is better than expected, meaning that the job market is weaker, but it's not so weak that it requires maybe a Fed rate cut or a jeopardy of a recession," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest.
"And it's certainly not strong enough to say the Fed is going to need to raise rates."
After a strong run of gains in November that sent the S&P 500 .SPX to its closing high for the year, U.S. equities pulled back in the previous session as Treasury yields rose.
A majority of traders believe the Fed may have reached the end of its tightening campaign, given that inflation is easing, and have nearly fully priced in the possibility that the central bank will keep rates unchanged next week.
They are also betting on lower interest rates next year, with 65% pricing in a rate cut of at least 25 basis points in March and 89% in May, according to the CME Group's FedWatch tool.
On Friday, the more comprehensive non-farm payrolls report for November will offer greater clarity on the state of the labor market.
Megacap stocks, which took a beating on Monday, rose as Treasury yields fell back to multi-month lows. Nvidia NVDA.O, Amazon.com AMZN.O and Apple AAPL.O rose between 1% and 2.2%, while Tesla > jumped 4.0% after four straight days of losses.
Global markets would be swayed by greater volatility in 2024 as the Fed cuts benchmark interest rates fewer times than futures markets are pricing in, strategists at the BlackRock Investment Institute said in a panel discussion on Tuesday.
Eightof 11 major S&P 500 sectors traded in the red, with materials .SPLRCM leading declines. The small-cap Russell 2000 index .RUT fell 1.1% after a four-day winning streak.
At 11:24 a.m. ET, the Dow Jones Industrial Average .DJI was down 140.27 points, or 0.39%, at 36,064.17, the S&P 500 .SPX was down 6.16 points, or 0.13%, at 4,563.62, and the Nasdaq Composite .IXIC was up 34.89 points, or 0.25%, at 14,220.39.
Among individual stocks, Take-Two Interactive SoftwareTTWO.O fell 1.9% after a trailer of the latest installment of its best-selling "Grand Theft Auto" videogame franchise was released.
CVS HealthCVS.N rose 3.4% on forecasting 2024 revenue above Wall Street estimates, as the insurer expects to benefit from its expansion into health services.
The S&P index recorded eight new 52-week highs and no new lows, while the Nasdaq recorded 60 new highs and 47 new lows.
Inflation https://tmsnrt.rs/3GuIMpi
(Reporting by Amruta Khandekar and Shristi Achar A; Editing by Pooja Desai)
(([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. | Nvidia NVDA.O, Amazon.com AMZN.O and Apple AAPL.O rose between 1% and 2.2%, while Tesla > jumped 4.0% after four straight days of losses. By Amruta Khandekar and Shristi Achar A Dec 5 (Reuters) - Wall Street's main indexes were mixed on Tuesday as investors assessed a fresh batch of economic data, including a jobs report, to gauge the probability of rate cuts by the Federal Reserve early next year, while megacap stocks rebounded from the previous day's losses. U.S. job openings dropped in October to the lowest level since early 2021, indicating that the labor market was easing, while U.S. services sector activity picked up in November. | Nvidia NVDA.O, Amazon.com AMZN.O and Apple AAPL.O rose between 1% and 2.2%, while Tesla > jumped 4.0% after four straight days of losses. By Amruta Khandekar and Shristi Achar A Dec 5 (Reuters) - Wall Street's main indexes were mixed on Tuesday as investors assessed a fresh batch of economic data, including a jobs report, to gauge the probability of rate cuts by the Federal Reserve early next year, while megacap stocks rebounded from the previous day's losses. Megacap stocks, which took a beating on Monday, rose as Treasury yields fell back to multi-month lows. | Nvidia NVDA.O, Amazon.com AMZN.O and Apple AAPL.O rose between 1% and 2.2%, while Tesla > jumped 4.0% after four straight days of losses. By Amruta Khandekar and Shristi Achar A Dec 5 (Reuters) - Wall Street's main indexes were mixed on Tuesday as investors assessed a fresh batch of economic data, including a jobs report, to gauge the probability of rate cuts by the Federal Reserve early next year, while megacap stocks rebounded from the previous day's losses. "The data is better than expected, meaning that the job market is weaker, but it's not so weak that it requires maybe a Fed rate cut or a jeopardy of a recession," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest. | Nvidia NVDA.O, Amazon.com AMZN.O and Apple AAPL.O rose between 1% and 2.2%, while Tesla > jumped 4.0% after four straight days of losses. By Amruta Khandekar and Shristi Achar A Dec 5 (Reuters) - Wall Street's main indexes were mixed on Tuesday as investors assessed a fresh batch of economic data, including a jobs report, to gauge the probability of rate cuts by the Federal Reserve early next year, while megacap stocks rebounded from the previous day's losses. After a strong run of gains in November that sent the S&P 500 .SPX to its closing high for the year, U.S. equities pulled back in the previous session as Treasury yields rose. |
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12241.0 | 2023-12-05 00:00:00 UTC | Tuesday Sector Leaders: Agriculture & Farm Products, Computers | AAPL | https://www.nasdaq.com/articles/tuesday-sector-leaders%3A-agriculture-farm-products-computers | In trading on Tuesday, agriculture & farm products shares were relative leaders, up on the day by about 2.5%. Leading the group were shares of Adecoagro, up about 11.6% and shares of Cresud SA Comercial Industrial Financiera Y Agropecuaria up about 4.1% on the day.
Also showing relative strength are computers shares, up on the day by about 0.3% as a group, led by TuSimple Holdings, trading higher by about 6.9% and Apple, trading higher by about 2.5% on Tuesday.
VIDEO: Tuesday Sector Leaders: Agriculture & Farm Products, Computers
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, agriculture & farm products shares were relative leaders, up on the day by about 2.5%. Also showing relative strength are computers shares, up on the day by about 0.3% as a group, led by TuSimple Holdings, trading higher by about 6.9% and Apple, trading higher by about 2.5% on Tuesday. VIDEO: Tuesday Sector Leaders: Agriculture & Farm Products, Computers The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, agriculture & farm products shares were relative leaders, up on the day by about 2.5%. Also showing relative strength are computers shares, up on the day by about 0.3% as a group, led by TuSimple Holdings, trading higher by about 6.9% and Apple, trading higher by about 2.5% on Tuesday. VIDEO: Tuesday Sector Leaders: Agriculture & Farm Products, Computers The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, agriculture & farm products shares were relative leaders, up on the day by about 2.5%. Also showing relative strength are computers shares, up on the day by about 0.3% as a group, led by TuSimple Holdings, trading higher by about 6.9% and Apple, trading higher by about 2.5% on Tuesday. VIDEO: Tuesday Sector Leaders: Agriculture & Farm Products, Computers The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Tuesday, agriculture & farm products shares were relative leaders, up on the day by about 2.5%. Leading the group were shares of Adecoagro, up about 11.6% and shares of Cresud SA Comercial Industrial Financiera Y Agropecuaria up about 4.1% on the day. Also showing relative strength are computers shares, up on the day by about 0.3% as a group, led by TuSimple Holdings, trading higher by about 6.9% and Apple, trading higher by about 2.5% on Tuesday. |
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12242.0 | 2023-12-05 00:00:00 UTC | High-Quality ETFs for Long-Term Investors | AAPL | https://www.nasdaq.com/articles/high-quality-etfs-for-long-term-investors | High-quality firms have rewarded investors with superior long-run returns. Though the definition of the quality factor varies, these companies typically boast high profitability, stable earnings growth, and strong balance sheets.
The legendary investing strategy of Warren Buffett and Charlie Munger centered on buying high-quality firms at reasonable prices.
As these stocks tend to perform well during periods of economic downturns, high-quality ETFs have attracted a lot of cash this year. Stocks like Apple AAPL, Microsoft MSFT, Alphabet GOOGL, NVIDIA NVDA and Meta Platforms META, which are top holdings in many such ETFs, have surged this year, so it remains to be seen whether investors will continue to pile into these names in 2024.
The iShares MSCI USA Quality Factor ETF QUAL comprises companies exhibiting strong fundamentals like high return on equity, stable year-over-year earnings growth, and low debt levels compared to other peers in their sectors.
The Invesco S&P 500 Quality ETF SPHQ identifies the top 100 S&P 500 stocks based on a quality score that considers their return on equity, accruals ratio, and debt levels.
The JPMorgan U.S. Quality Factor ETF JQUA focuses on about 250 Russell 1000 stocks with strong return on equity, consistent earnings growth, and low debt levels, while aiming to match the sector weights of the index.
To learn more, 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. | Stocks like Apple AAPL, Microsoft MSFT, Alphabet GOOGL, NVIDIA NVDA and Meta Platforms META, which are top holdings in many such ETFs, have surged this year, so it remains to be seen whether investors will continue to pile into these names in 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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports Invesco S&P 500 Quality ETF (SPHQ): ETF Research Reports JPMorgan U.S. Quality Factor ETF (JQUA): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Though the definition of the quality factor varies, these companies typically boast high profitability, stable earnings growth, and strong balance sheets. | Stocks like Apple AAPL, Microsoft MSFT, Alphabet GOOGL, NVIDIA NVDA and Meta Platforms META, which are top holdings in many such ETFs, have surged this year, so it remains to be seen whether investors will continue to pile into these names in 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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports Invesco S&P 500 Quality ETF (SPHQ): ETF Research Reports JPMorgan U.S. Quality Factor ETF (JQUA): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The iShares MSCI USA Quality Factor ETF QUAL comprises companies exhibiting strong fundamentals like high return on equity, stable year-over-year earnings growth, and low debt levels compared to other peers in their sectors. | 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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports Invesco S&P 500 Quality ETF (SPHQ): ETF Research Reports JPMorgan U.S. Quality Factor ETF (JQUA): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks like Apple AAPL, Microsoft MSFT, Alphabet GOOGL, NVIDIA NVDA and Meta Platforms META, which are top holdings in many such ETFs, have surged this year, so it remains to be seen whether investors will continue to pile into these names in 2024. The iShares MSCI USA Quality Factor ETF QUAL comprises companies exhibiting strong fundamentals like high return on equity, stable year-over-year earnings growth, and low debt levels compared to other peers in their sectors. | 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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports Invesco S&P 500 Quality ETF (SPHQ): ETF Research Reports JPMorgan U.S. Quality Factor ETF (JQUA): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks like Apple AAPL, Microsoft MSFT, Alphabet GOOGL, NVIDIA NVDA and Meta Platforms META, which are top holdings in many such ETFs, have surged this year, so it remains to be seen whether investors will continue to pile into these names in 2024. The iShares MSCI USA Quality Factor ETF QUAL comprises companies exhibiting strong fundamentals like high return on equity, stable year-over-year earnings growth, and low debt levels compared to other peers in their sectors. |
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12243.0 | 2023-12-05 00:00:00 UTC | Why Apple Stock Gained 11% in November | AAPL | https://www.nasdaq.com/articles/why-apple-stock-gained-11-in-november | Shares of Apple (NASDAQ: AAPL), the world's most valuable company, popped last month. The stock gained early in the month as the company reported fiscal fourth-quarter earnings, and trended with the S&P 500 over most of the rest of the month.
A weaker-than-expected October inflation report drove Apple stock higher in the middle of the month as the iPhone maker depends on consumer discretionary spending, and consumers have more money to spend when inflation is lower.
According to data from S&P Global Market Intelligence, the stock finished the month up 11%. The chart below shows its performance over the course of the month.
^SPX data by YCharts.
Apple rides the rebound
The main news out on Apple in the early part of the month was its fourth-quarter earnings report. It showed solid numbers, topping estimates on the top and bottom lines, but the stock actually pulled back slightly on the news, falling 0.6% on Nov. 3 after two straight days of strong gains to open the month.
Apple reported record iPhone revenue in the quarter, while overall revenue was down 1% to $89.5 billion, but that was better than expectations at $89.35 billion. On the bottom line, meanwhile, the continuing emergence of its services segment helped drive margins higher, and earnings per share increased by 13% to $1.46, ahead of the consensus at $1.39.
Analyst response to the report was mixed, with a number of Wall Street watchers lowering their price targets on the stock to adjust for its earlier pullback in September and October.
Over the rest of the month, there was not any major news on Apple, but the stock benefited from cooling inflation and hopes that interest rates would come down because the company is more sensitive to consumer spending than its big tech peers.
Investors continued to keep a close eye on the company's performance in China, and are anxious to see how the new iPhone 15 does as well as the much-anticipated Vision Pro mixed-reality headset, which is due out early next year.
Can Apple keep moving higher?
The stock continued to move higher in early December, approaching an all-time high, and shares are expensive, trading at a price-to-earnings ratio of 31, but Apple has proved it deserves to trade at a premium even with flat revenue as it has tremendous pricing power, and the services segment should continue to drive growth on the top and bottom lines.
While the stock might be a bit stretched at the current valuation, it still looks like a good long-term bet.
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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. | Shares of Apple (NASDAQ: AAPL), the world's most valuable company, popped last month. Analyst response to the report was mixed, with a number of Wall Street watchers lowering their price targets on the stock to adjust for its earlier pullback in September and October. Over the rest of the month, there was not any major news on Apple, but the stock benefited from cooling inflation and hopes that interest rates would come down because the company is more sensitive to consumer spending than its big tech peers. | Shares of Apple (NASDAQ: AAPL), the world's most valuable company, popped last month. The stock gained early in the month as the company reported fiscal fourth-quarter earnings, and trended with the S&P 500 over most of the rest of the month. A weaker-than-expected October inflation report drove Apple stock higher in the middle of the month as the iPhone maker depends on consumer discretionary spending, and consumers have more money to spend when inflation is lower. | Shares of Apple (NASDAQ: AAPL), the world's most valuable company, popped last month. A weaker-than-expected October inflation report drove Apple stock higher in the middle of the month as the iPhone maker depends on consumer discretionary spending, and consumers have more money to spend when inflation is lower. The stock continued to move higher in early December, approaching an all-time high, and shares are expensive, trading at a price-to-earnings ratio of 31, but Apple has proved it deserves to trade at a premium even with flat revenue as it has tremendous pricing power, and the services segment should continue to drive growth on the top and bottom lines. | Shares of Apple (NASDAQ: AAPL), the world's most valuable company, popped last month. The stock gained early in the month as the company reported fiscal fourth-quarter earnings, and trended with the S&P 500 over most of the rest of the month. A weaker-than-expected October inflation report drove Apple stock higher in the middle of the month as the iPhone maker depends on consumer discretionary spending, and consumers have more money to spend when inflation is lower. |
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12244.0 | 2023-12-05 00:00:00 UTC | US STOCKS-Trading mixed after job openings hint at cooling economy | AAPL | https://www.nasdaq.com/articles/us-stocks-trading-mixed-after-job-openings-hint-at-cooling-economy | By Noel Randewich and Amruta Khandekar
Dec 5 (Reuters) - Wall Street was mixed on Tuesday, with the Nasdaq gaining and the S&P 500 dipping after fresh employment data bolstered bets that the Federal Reserve will cut interest rates as soon as March.
Data showed U.S. job openings dropped in October to the lowest level since early 2021, indicating that the labor market was easing, while U.S. services sector activity picked up in November.
On Friday, the more comprehensive non-farm payrolls report for November will offer greater clarity on the state of the labor market.
Megacap stocks rose as Treasury yields dipped to multi-month lows. Nvidia NVDA.O, Amazon.com AMZN.O, Tesla TSLA.O and Apple AAPL.O rose more than 1%.
Global markets will be swayed by greater volatility in 2024 as the Fed cuts benchmark interest rates fewer times than futures markets are pricing in, strategists at the BlackRock Investment Institute predicted in a panel discussion. The S&P 500 was down 0.12% at 4,564.31 points.
The Nasdaq gained 0.12% to 14,202.26 points, while the Dow Jones Industrial Average was down 0.24% at 36,117.78 points.
Of the 11 S&P 500 sector indexes, nine declined, led lower by materials .SPLRCM, down 1.18%, followed by a 1.04% loss in energy .SPNY.
The small-cap Russell 2000 index .RUT fell 1.2%, on track to end a four-day winning streak.
Take-Two Interactive SoftwareTTWO.O fell 1.6% after a trailer of the latest installment of its best-selling "Grand Theft Auto" videogame franchise was released.
CVS HealthCVS.N jumped 4.3% after forecasting 2024 revenue above Wall Street estimates, as the insurer expects to benefit from its expansion into health services.
The S&P 500 posted 14 new highs and no new lows; the Nasdaq recorded 72 new highs and 55 new lows.
S&P 500 components so far in 2023 https://tmsnrt.rs/3uP5FRO
(Reporting by Amruta Khandekar and Shristi Achar A in Bangalore and by Noel Randewich in Oakland, Calif.; Editing by Pooja Desai and Aurora Ellis)
(([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. | Nvidia NVDA.O, Amazon.com AMZN.O, Tesla TSLA.O and Apple AAPL.O rose more than 1%. By Noel Randewich and Amruta Khandekar Dec 5 (Reuters) - Wall Street was mixed on Tuesday, with the Nasdaq gaining and the S&P 500 dipping after fresh employment data bolstered bets that the Federal Reserve will cut interest rates as soon as March. Data showed U.S. job openings dropped in October to the lowest level since early 2021, indicating that the labor market was easing, while U.S. services sector activity picked up in November. | Nvidia NVDA.O, Amazon.com AMZN.O, Tesla TSLA.O and Apple AAPL.O rose more than 1%. By Noel Randewich and Amruta Khandekar Dec 5 (Reuters) - Wall Street was mixed on Tuesday, with the Nasdaq gaining and the S&P 500 dipping after fresh employment data bolstered bets that the Federal Reserve will cut interest rates as soon as March. Data showed U.S. job openings dropped in October to the lowest level since early 2021, indicating that the labor market was easing, while U.S. services sector activity picked up in November. | Nvidia NVDA.O, Amazon.com AMZN.O, Tesla TSLA.O and Apple AAPL.O rose more than 1%. By Noel Randewich and Amruta Khandekar Dec 5 (Reuters) - Wall Street was mixed on Tuesday, with the Nasdaq gaining and the S&P 500 dipping after fresh employment data bolstered bets that the Federal Reserve will cut interest rates as soon as March. The Nasdaq gained 0.12% to 14,202.26 points, while the Dow Jones Industrial Average was down 0.24% at 36,117.78 points. | Nvidia NVDA.O, Amazon.com AMZN.O, Tesla TSLA.O and Apple AAPL.O rose more than 1%. By Noel Randewich and Amruta Khandekar Dec 5 (Reuters) - Wall Street was mixed on Tuesday, with the Nasdaq gaining and the S&P 500 dipping after fresh employment data bolstered bets that the Federal Reserve will cut interest rates as soon as March. On Friday, the more comprehensive non-farm payrolls report for November will offer greater clarity on the state of the labor market. |
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12245.0 | 2023-12-05 00:00:00 UTC | US STOCKS-Wall Street ends mixed after job openings hint at cooling economy | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-ends-mixed-after-job-openings-hint-at-cooling-economy | By Noel Randewich and Amruta Khandekar
Dec 5 (Reuters) - Wall Street finished mixed on Tuesday after fresh employment data bolstered bets that the U.S. Federal Reserve will cut interest rates as soon as March.
Apple and other megacaps gained while consumer staples stocks dipped after data showed U.S. job openings dropped in October to the lowest level since early 2021, indicating that the labor market was easing.
Another report showed U.S. services sector activity picked up in November.
According to preliminary data, the S&P 500 .SPX lost 1.91 points, or 0.04%, to end at 4,567.77 points, while the Nasdaq Composite .IXIC gained 46.91 points, or 0.31%, to 14,232.41. The Dow Jones Industrial Average .DJI fell 74.51 points, or 0.21%, to 36,129.93.
U.S. stock trading this week has been uneven after the S&P 500 rebounded nearly 9% in November. The index on Friday touched a four-month intra-day high.
On Friday, the more comprehensive non-farm payrolls report for November will offer greater clarity on the state of the labor market.
Wall Street's most valuable companies rose as Treasury yields dipped to multi-month lows. Nvidia NVDA.O, Amazon.com AMZN.O, Tesla TSLA.O and Apple AAPL.Oall gained for much of the session.
Global markets will be swayed by greater volatility in 2024 as the Fed cuts benchmark interest rates fewer times than futures markets are pricing in, strategists at the BlackRock Investment Institute predicted in a panel discussion. Take-Two Interactive SoftwareTTWO.Ofell after a trailer of the latest installment of its best-selling "Grand Theft Auto" videogame franchise was released.
CVS HealthCVS.Njumped after forecasting 2024 revenue above Wall Street estimates, as the insurer expects to benefit from its expansion into health services.
S&P 500 components so far in 2023 https://tmsnrt.rs/3uP5FRO
(Reporting by Amruta Khandekar and Shristi Achar A in Bangalore and by Noel Randewich in Oakland, Calif.; Editing by Pooja Desai and Aurora Ellis)
(([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. | Nvidia NVDA.O, Amazon.com AMZN.O, Tesla TSLA.O and Apple AAPL.Oall gained for much of the session. By Noel Randewich and Amruta Khandekar Dec 5 (Reuters) - Wall Street finished mixed on Tuesday after fresh employment data bolstered bets that the U.S. Federal Reserve will cut interest rates as soon as March. Apple and other megacaps gained while consumer staples stocks dipped after data showed U.S. job openings dropped in October to the lowest level since early 2021, indicating that the labor market was easing. | Nvidia NVDA.O, Amazon.com AMZN.O, Tesla TSLA.O and Apple AAPL.Oall gained for much of the session. By Noel Randewich and Amruta Khandekar Dec 5 (Reuters) - Wall Street finished mixed on Tuesday after fresh employment data bolstered bets that the U.S. Federal Reserve will cut interest rates as soon as March. Apple and other megacaps gained while consumer staples stocks dipped after data showed U.S. job openings dropped in October to the lowest level since early 2021, indicating that the labor market was easing. | Nvidia NVDA.O, Amazon.com AMZN.O, Tesla TSLA.O and Apple AAPL.Oall gained for much of the session. By Noel Randewich and Amruta Khandekar Dec 5 (Reuters) - Wall Street finished mixed on Tuesday after fresh employment data bolstered bets that the U.S. Federal Reserve will cut interest rates as soon as March. Apple and other megacaps gained while consumer staples stocks dipped after data showed U.S. job openings dropped in October to the lowest level since early 2021, indicating that the labor market was easing. | Nvidia NVDA.O, Amazon.com AMZN.O, Tesla TSLA.O and Apple AAPL.Oall gained for much of the session. By Noel Randewich and Amruta Khandekar Dec 5 (Reuters) - Wall Street finished mixed on Tuesday after fresh employment data bolstered bets that the U.S. Federal Reserve will cut interest rates as soon as March. Apple and other megacaps gained while consumer staples stocks dipped after data showed U.S. job openings dropped in October to the lowest level since early 2021, indicating that the labor market was easing. |
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12246.0 | 2023-12-05 00:00:00 UTC | After Hours Most Active for Dec 5, 2023 : MRK, CRH, CNHI, MTCH, AAPL, SCPH, ABR, CMCSA, INBX, CSCO, SYF, HPQ | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-dec-5-2023-%3A-mrk-crh-cnhi-mtch-aapl-scph-abr-cmcsa-inbx-csco | The NASDAQ 100 After Hours Indicator is down -.25 to 15,877.46. The total After hours volume is currently 74,257,965 shares traded.
The following are the most active stocks for the after hours session:
Merck & Company, Inc. (MRK) is unchanged at $106.23, with 2,199,407 shares traded. As reported by Zacks, the current mean recommendation for MRK is in the "buy range".
CRH PLC (CRH) is unchanged at $63.09, with 2,185,424 shares traded. As reported by Zacks, the current mean recommendation for CRH is in the "buy range".
CNH Industrial N.V. (CNHI) is +0.04 at $11.00, with 2,171,894 shares traded. CNHI's current last sale is 73.07% of the target price of $15.055.
Match Group, Inc. (MTCH) is -0.0586 at $32.26, with 2,168,374 shares traded. As reported by Zacks, the current mean recommendation for MTCH is in the "buy range".
Apple Inc. (AAPL) is unchanged at $193.42, with 2,064,607 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
scPharmaceuticals Inc. (SCPH) is unchanged at $5.22, with 1,799,276 shares traded. As reported in the last short interest update the days to cover for SCPH is 18.351748; this calculation is based on the average trading volume of the stock.
Arbor Realty Trust (ABR) is -0.04 at $13.63, with 1,609,055 shares traded. ABR's current last sale is 92.41% of the target price of $14.75.
Comcast Corporation (CMCSA) is +0.03 at $41.64, with 1,545,471 shares traded. As reported by Zacks, the current mean recommendation for CMCSA is in the "buy range".
Inhibrx, Inc. (INBX) is unchanged at $23.13, with 1,421,054 shares traded. As reported in the last short interest update the days to cover for INBX is 12.332618; this calculation is based on the average trading volume of the stock.
Cisco Systems, Inc. (CSCO) is unchanged at $47.93, with 1,418,141 shares traded. CSCO's current last sale is 87.15% of the target price of $55.
Synchrony Financial (SYF) is unchanged at $33.98, with 1,276,839 shares traded. SYF's current last sale is 97.09% of the target price of $35.
HP Inc. (HPQ) is unchanged at $28.86, with 1,269,580 shares traded. HPQ's current last sale is 94.62% of the target price of $30.5.
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 $193.42, with 2,064,607 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 SCPH is 18.351748; this calculation is based on the average trading volume of the stock. | Apple Inc. (AAPL) is unchanged at $193.42, with 2,064,607 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 74,257,965 shares traded. | Apple Inc. (AAPL) is unchanged at $193.42, with 2,064,607 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". CRH PLC (CRH) is unchanged at $63.09, with 2,185,424 shares traded. | Apple Inc. (AAPL) is unchanged at $193.42, with 2,064,607 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". CNHI's current last sale is 73.07% of the target price of $15.055. |
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12247.0 | 2023-12-05 00:00:00 UTC | Is This Warren Buffett Stock Under $50 a Good Buy Right Now? | AAPL | https://www.nasdaq.com/articles/is-this-warren-buffett-stock-under-%2450-a-good-buy-right-now | Warren Buffett, the CEO and Chairman of Berkshire Hathaway (BRK.B), doesn't require much in the way of formal introduction. Frequently hailed as one of the greatest investors of all time, the “Oracle of Omaha” has amassed a cult-like following over the years.
Naturally, details about the specific makeup of Buffett's stock portfolio are an ongoing matter of interest for the wider investment community - and for a while now, Apple (AAPL) has somewhat famously been the largest of Berkshire's equity holdings, accounting for just under 50% of the portfolio. Equally well-documented, perhaps, is Buffett's long-term entanglement with “Dividend King” Coca-Cola (KO), officially the No. 4 stock in his portfolio.
Here, though, we'll take a closer look at another blue-chip name that's earned a major vote of confidence from Buffett - and in fact, it's the No. 2 stock in Berkshire's portfolio.
About Bank of America
Founded in 1929, Charlotte-based Bank of America (BAC) has gone on to become the second-largest bank in the U.S. by assets. It offers a wide range of financial products and services, including banking, investment banking, insurance, and wealth management. With a mammoth market cap of $243.9 billion, Bank of America is also the second-largest bank in the world by market capitalization.
Buffett, through Berkshire Hathaway, holds a 13% stake in BAC worth about $31 billion, which accounts for roughly 8.7% of its equity portfolio.
Against a remarkably unfavorable macroeconomic backdrop for lenders this year, Bank of America stock is down 8% on a YTD basis to lag the broader market, as well as the S&P 500 Financial Sector SPDR (XLF), up about 5%.
www.barchart.com
Following its lackluster 2023 performance, Bank of America stock is trading at reasonable levels. The shares are priced at 9x forward EPS and 0.94x book, both of which are a discount to the sector median for financial stocks.
Notably, the stock also offers a healthy dividend yield of 3%, and the company has been raising dividends consecutively for the past 10 years. BAC's payout ratio is low, at 23%, indicating there's room for the bank to keep raising its dividend (with the blessing of the Fed's stress tests).
BAC Beats on EPS Again
Results for the latest quarter were solid, as the bank beat expectations on both earnings and revenue. Total revenues increased by 3% from the previous year to $25.2 billion, driven by 4.5% yearly growth in net interest income. EPS rose by 11.1% from the prior year to $0.90, comfortably outpacing the consensus estimate of $0.83. In fact, BAC has reported stronger-than-forecast EPS in each of the past five quarters.
Credit losses were also narrower than expected, arriving at $1.2 billion. However, unrealized losses ramped up to $131 billion, largely due to BAC's portfolio of low-yielding, hold-to-maturity assets. At the end of the quarter, the hold-to-maturity book stood at $600 billion, consisting of about $122 billion in Treasuries, and about $474 million in mortgage-backed securities.
How Bank of America Could Benefit from Rate Cuts
BAC seems more likely than most other big banks to benefit from expected rate cuts in 2024. Analysts have called the held-to-maturity portfolio a “thorn in the side” of the stock, and a gradual shift by the Fed toward more accommodative policy would take some pressure off this bundle of low-yielding assets, even as overall net interest income takes a hit.
Additionally, Bank of America's trading desk has been quietly outperforming in 2023, delivering stronger-than-forecast revenue in consecutive quarters. In fact, sales and trading revenue increased 8% in Q3 to hit a decade high of $4.4 billion. A more favorable macro backdrop for interest rates should further support this business segment, as equity volumes and M&A look set to ramp back up heading into 2024.
What Do Analysts Expect from Bank of America?
Analysts remain optimistic about Bank of America stock, and have deemed it a “Moderate Buy” with a mean target price of $34.63. This denotes an upside potential of about 13% from current levels.
Out of 20 analysts covering the stock, eight have a “Strong Buy,” one has a “Moderate Buy,” 10 have a “Hold” rating, and one has a “Strong Sell” rating.
www.barchart.com
On the date of publication, Pathikrit Bose 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. | Naturally, details about the specific makeup of Buffett's stock portfolio are an ongoing matter of interest for the wider investment community - and for a while now, Apple (AAPL) has somewhat famously been the largest of Berkshire's equity holdings, accounting for just under 50% of the portfolio. Against a remarkably unfavorable macroeconomic backdrop for lenders this year, Bank of America stock is down 8% on a YTD basis to lag the broader market, as well as the S&P 500 Financial Sector SPDR (XLF), up about 5%. BAC's payout ratio is low, at 23%, indicating there's room for the bank to keep raising its dividend (with the blessing of the Fed's stress tests). | Naturally, details about the specific makeup of Buffett's stock portfolio are an ongoing matter of interest for the wider investment community - and for a while now, Apple (AAPL) has somewhat famously been the largest of Berkshire's equity holdings, accounting for just under 50% of the portfolio. However, unrealized losses ramped up to $131 billion, largely due to BAC's portfolio of low-yielding, hold-to-maturity assets. How Bank of America Could Benefit from Rate Cuts BAC seems more likely than most other big banks to benefit from expected rate cuts in 2024. | Naturally, details about the specific makeup of Buffett's stock portfolio are an ongoing matter of interest for the wider investment community - and for a while now, Apple (AAPL) has somewhat famously been the largest of Berkshire's equity holdings, accounting for just under 50% of the portfolio. About Bank of America Founded in 1929, Charlotte-based Bank of America (BAC) has gone on to become the second-largest bank in the U.S. by assets. With a mammoth market cap of $243.9 billion, Bank of America is also the second-largest bank in the world by market capitalization. | Naturally, details about the specific makeup of Buffett's stock portfolio are an ongoing matter of interest for the wider investment community - and for a while now, Apple (AAPL) has somewhat famously been the largest of Berkshire's equity holdings, accounting for just under 50% of the portfolio. About Bank of America Founded in 1929, Charlotte-based Bank of America (BAC) has gone on to become the second-largest bank in the U.S. by assets. However, unrealized losses ramped up to $131 billion, largely due to BAC's portfolio of low-yielding, hold-to-maturity assets. |
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12248.0 | 2023-12-05 00:00:00 UTC | Nasdaq 100 Movers: PYPL, AAPL | AAPL | https://www.nasdaq.com/articles/nasdaq-100-movers%3A-pypl-aapl | In early trading on Tuesday, shares of Apple topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.8%. Year to date, Apple registers a 48.4% gain.
And the worst performing Nasdaq 100 component thus far on the day is PayPal Holdings, trading down 2.7%. PayPal Holdings is lower by about 18.2% looking at the year to date performance.
Two other components making moves today are Lam Research, trading down 2.5%, and NVIDIA, trading up 1.2% on the day.
VIDEO: Nasdaq 100 Movers: PYPL, 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: Nasdaq 100 Movers: PYPL, 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 Nasdaq 100 component thus far on the day is PayPal Holdings, trading down 2.7%. PayPal Holdings is lower by about 18.2% looking at the year to date performance. | VIDEO: Nasdaq 100 Movers: PYPL, 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 Tuesday, shares of Apple topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.8%. Year to date, Apple registers a 48.4% gain. | VIDEO: Nasdaq 100 Movers: PYPL, 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 Tuesday, shares of Apple topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.8%. And the worst performing Nasdaq 100 component thus far on the day is PayPal Holdings, trading down 2.7%. | VIDEO: Nasdaq 100 Movers: PYPL, 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 Nasdaq 100 component thus far on the day is PayPal Holdings, trading down 2.7%. PayPal Holdings is lower by about 18.2% looking at the year to date performance. |
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12249.0 | 2023-12-05 00:00:00 UTC | Better Growth Stock: CRISPR Therapeutics vs. Invitae | AAPL | https://www.nasdaq.com/articles/better-growth-stock%3A-crispr-therapeutics-vs.-invitae | Now is a great time to load up on growth stocks because they may be among the first to benefit in the next bull market. We've already seen some of the biggest ones -- such as Amazon and Apple -- take off as indexes rallied in recent weeks. Buying these longtime winners could lift your portfolio, and if you want an additional boost, you could also add a few younger growth players to the mix. They're earlier in their stories, so if all goes well, they could truly pop -- and deliver great returns.
You'll find a lot of these candidates in the area of biotech, and two possibilities that come to mind right now are gene-editing company CRISPR Therapeutics (NASDAQ: CRSP) and genetic-testing specialist Invitae (NYSE: NVTA). The former is heading for a big milestone, and the latter could make a compelling recovery story. Which is the better growth stock to buy now? Let's find out.
Image source: Getty Images.
The case for CRISPR Therapeutics
The U.S. Food and Drug Administration (FDA) is set to issue a regulatory decision by the end of this week on what may become CRISPR Therapeutics' first product. The FDA will decide on exa-cel for sickle cell disease first, then in March, the agency will rule on the potential treatment for beta thalassemia.
The potential product represents blockbuster revenue for CRISPR Therapeutics and partner Vertex Pharmaceuticals for two reasons: First, the blood disorders it treats today have limited treatment options; and second, exa-cel is designed as a functional cure -- an element that should attract doctors and patients.
The companies already scored an initial win when the U.K. recently authorized exa-cel for both blood disorders. This marks the world's first authorization of a CRISPR gene editing-based product.
Regulatory acceptances of exa-cel are important because they'll result in revenue for CRISPR Therapeutics, but they're also key because they can be seen as a vote of confidence in the technology -- a technology the company uses throughout its pipeline.
So, CRISPR Therapeutics may be very close to generating product revenue; it's already bringing in revenue by licensing out its technology, and its financial situation looks good with $1.7 billion in cash as of the end of the most recent quarter.
The case for Invitae
Invitae has grown revenue over time, but it hasn't been able to turn that growth into profitability. Instead, it's continued to burn through cash. At the same time, its stock has declined, even slipping below a dollar. The New York Stock Exchange issued a non-compliance notice earlier this fall. The company has some time to try to bring the stock back into compliance before facing a delisting.
But here's the good news: Invitae last year set to work on a recovery plan and has made progress on the path to reduce cash burn and accelerate along the path to profitability. To do this, Invitae decided to focus on its core-testing unit, exiting certain businesses and regions.
In the most recent quarter, if we exclude the exited businesses, revenue rose 4%. The company saw significant growth in its U.S. hereditary-cancer business, with testing volume climbing in the double digits.
Invitae is also progressing in its ability to generate profit from testing. Non-GAAP gross margin widened to more than 52% from about 45% for the ninth straight quarter of improvement. The company reaffirmed its annual forecasts for revenue, margin, and cash burn, showing its recovery plan is on track.
Should you favor gene editing or genetic testing?
Both of these fields are exciting, and CRISPR Therapeutics and Invitae are key players that could win over time. The decision about which stock to buy depends on your comfort with risk. CRISPR Therapeutics offers investors more visibility and fewer financial worries right now. Aat the same time, a huge revenue source may be right around the corner. So, for most investors, CRISPR Therapeutics is the better growth stock to buy now.
That said, if you're an aggressive investor and can handle the risks associated with Invitae -- and you like recovery stories -- you may want to pick up a few shares. Invitae is high risk, so it isn't right for everyone, but if the company's recovery plan succeeds, the stock could take off.
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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 Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Amazon, Apple, CRISPR Therapeutics, Invitae, and Vertex Pharmaceuticals. 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. | You'll find a lot of these candidates in the area of biotech, and two possibilities that come to mind right now are gene-editing company CRISPR Therapeutics (NASDAQ: CRSP) and genetic-testing specialist Invitae (NYSE: NVTA). The FDA will decide on exa-cel for sickle cell disease first, then in March, the agency will rule on the potential treatment for beta thalassemia. The potential product represents blockbuster revenue for CRISPR Therapeutics and partner Vertex Pharmaceuticals for two reasons: First, the blood disorders it treats today have limited treatment options; and second, exa-cel is designed as a functional cure -- an element that should attract doctors and patients. | The case for CRISPR Therapeutics The U.S. Food and Drug Administration (FDA) is set to issue a regulatory decision by the end of this week on what may become CRISPR Therapeutics' first product. The potential product represents blockbuster revenue for CRISPR Therapeutics and partner Vertex Pharmaceuticals for two reasons: First, the blood disorders it treats today have limited treatment options; and second, exa-cel is designed as a functional cure -- an element that should attract doctors and patients. The Motley Fool has positions in and recommends Amazon, Apple, CRISPR Therapeutics, Invitae, and Vertex Pharmaceuticals. | The case for CRISPR Therapeutics The U.S. Food and Drug Administration (FDA) is set to issue a regulatory decision by the end of this week on what may become CRISPR Therapeutics' first product. So, CRISPR Therapeutics may be very close to generating product revenue; it's already bringing in revenue by licensing out its technology, and its financial situation looks good with $1.7 billion in cash as of the end of the most recent quarter. So, for most investors, CRISPR Therapeutics is the better growth stock to buy now. | The case for Invitae Invitae has grown revenue over time, but it hasn't been able to turn that growth into profitability. So, for most investors, CRISPR Therapeutics is the better growth stock to buy now. The Motley Fool has positions in and recommends Amazon, Apple, CRISPR Therapeutics, Invitae, and Vertex Pharmaceuticals. |
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12250.0 | 2023-12-05 00:00:00 UTC | What to Expect from the Magnificent Seven Stocks in 2024 | AAPL | https://www.nasdaq.com/articles/what-to-expect-from-the-magnificent-seven-stocks-in-2024 | I
nvestors don't need to look too far to find the source of the market rally in 2023. It has been driven mostly by the so-called “Magnificent Seven” stocks. Coined by Bank of America analyst Michael Hartnett, the stocks consist of Alphabet (GOOG , GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA).
Some investors who have missed the massive rally in 2023 are wondering whether there is still room for gains in 2024. Year to date, Apple -- the largest of the bunch in terms of market cap — has retuned by 46%, while Microsoft the second largest, boasts an even more impressive gain of 59%. But the impressiveness doesn’t stop there when considering Tesla has doubled in value, while Meta has enjoyed a remarkable return of 180%.
Never missing an opportunity, even the ETF industry has hopped on the bandwagon. In November, the Roundhill Magnificent Seven ETF (MAGS), a portfolio consisting only of exposure to this basket of stocks, debuted on the market. There are a range of opinions as to whether there are value still be gained in these stocks, which have already been stellar performers, but while their collective valuation might have gotten a bit stretched, their leadership in the markets is undeniable.
The reason for their collective popularity, which can’t be overstated, stems from their exposure to high-growth technologies, such as high-end software and hardware, cloud computing and artificial intelligence. These seven stocks have more than doubled the return of the S&P 500 over the past decade. Armed with tons of cash on the balance sheet, strong cash flows and excellent leadership, they are well-positioned to continue leading their respective markets in 2024.
This belief requires an equal level of conviction in the durability of the current bull market, which has seen some doubters emerge lately. Part of their argument stems from what some perceive as limited stock participation in the S&P 500’s rally. For example, the top seven mega-cap technology companies currently account for the lion's share of the S&P 500's weight, or roughly 28%. Leading the way is Apple: the iPhone maker carries a S&P 500 weighting of 7.5%.
Microsoft is next with a weighting of 6.8% after rising to all-time highs. With a weighing of 3.8%, Alphabet is third after rising near 60% from its 52-week low. Rounding out the next four in order are Amazon (up 61% from its low) with a weighting of 3.1%, the aforementioned Nvidia (weight: 2.9%), Tesla (weight: 1.9%) and Meta Platforms (weight: 1.7%).
While these bearish arguments are fair to point out, it’s also worth noting that the Fed is likely done with its aggressive rate hike stance towards battling inflation. After all, rising interest rates is what triggered the bear market in 2022, applying pressure on businesses, forcing high growth names to borrow money at higher rates to fund their operations. Stocks got punished due to lack of liquidity. But the market is forward-looking and although the Fed signaled it is not done with the rate hike cycle, investors should nonetheless position their portfolios to be on the right side of the pivot in 2024, especially amid clearer signs of dampening inflation risk.
Combined with the fact that the recessionary risk is not where it was, it is appearing that this new bull market is here to stay. Armed with tons of cash on the balance sheet, strong cash flows and excellent leadership, the Magnificent Seven are well-positioned them to continue leading their respective markets in 2024. In other words, even as the Magnificent Seven stocks are at a combined market capitalization of more than $10 trillion, there are still many reasons to expect them to keep winning in 2024.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Coined by Bank of America analyst Michael Hartnett, the stocks consist of Alphabet (GOOG , GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA). There are a range of opinions as to whether there are value still be gained in these stocks, which have already been stellar performers, but while their collective valuation might have gotten a bit stretched, their leadership in the markets is undeniable. The reason for their collective popularity, which can’t be overstated, stems from their exposure to high-growth technologies, such as high-end software and hardware, cloud computing and artificial intelligence. | Coined by Bank of America analyst Michael Hartnett, the stocks consist of Alphabet (GOOG , GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA). Armed with tons of cash on the balance sheet, strong cash flows and excellent leadership, they are well-positioned to continue leading their respective markets in 2024. Armed with tons of cash on the balance sheet, strong cash flows and excellent leadership, the Magnificent Seven are well-positioned them to continue leading their respective markets in 2024. | Coined by Bank of America analyst Michael Hartnett, the stocks consist of Alphabet (GOOG , GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA). Rounding out the next four in order are Amazon (up 61% from its low) with a weighting of 3.1%, the aforementioned Nvidia (weight: 2.9%), Tesla (weight: 1.9%) and Meta Platforms (weight: 1.7%). Armed with tons of cash on the balance sheet, strong cash flows and excellent leadership, the Magnificent Seven are well-positioned them to continue leading their respective markets in 2024. | Coined by Bank of America analyst Michael Hartnett, the stocks consist of Alphabet (GOOG , GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA). But the impressiveness doesn’t stop there when considering Tesla has doubled in value, while Meta has enjoyed a remarkable return of 180%. Microsoft is next with a weighting of 6.8% after rising to all-time highs. |
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12251.0 | 2023-12-05 00:00:00 UTC | Foxconn cancels first shift on Tuesday at Indian iPhone facility after extreme weather - sources | AAPL | https://www.nasdaq.com/articles/foxconn-cancels-first-shift-on-tuesday-at-indian-iphone-facility-after-extreme-weather | BENGALURU, Dec 5 (Reuters) - Taiwan's Foxconn 2317.TW has cancelled the first shift on Tuesday at its Indian facility that makes Apple AAPL.O iPhones following weather disruptions, two sources familiar with the matter said.
Foxconn's operations in the facility near the south Indian city of Chennai were likely to resume after the first shift, the sources said.
Foxconn and Pegatron 4938.TW had on Monday halted production of iPhones at their factories near Chennai because of heavy rain as a severe cyclone neared, Reuters had reported.
Foxconn and Apple did not immediately respond to Reuters' request for comment.
(Reporting by Munsif Vengattil in Bengaluru; Editing by Kim Coghill)
(([email protected]; Mobile: +91 7022132226;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | BENGALURU, Dec 5 (Reuters) - Taiwan's Foxconn 2317.TW has cancelled the first shift on Tuesday at its Indian facility that makes Apple AAPL.O iPhones following weather disruptions, two sources familiar with the matter said. Foxconn's operations in the facility near the south Indian city of Chennai were likely to resume after the first shift, the sources said. (Reporting by Munsif Vengattil in Bengaluru; Editing by Kim Coghill) (([email protected]; Mobile: +91 7022132226;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | BENGALURU, Dec 5 (Reuters) - Taiwan's Foxconn 2317.TW has cancelled the first shift on Tuesday at its Indian facility that makes Apple AAPL.O iPhones following weather disruptions, two sources familiar with the matter said. Foxconn's operations in the facility near the south Indian city of Chennai were likely to resume after the first shift, the sources said. Foxconn and Pegatron 4938.TW had on Monday halted production of iPhones at their factories near Chennai because of heavy rain as a severe cyclone neared, Reuters had reported. | BENGALURU, Dec 5 (Reuters) - Taiwan's Foxconn 2317.TW has cancelled the first shift on Tuesday at its Indian facility that makes Apple AAPL.O iPhones following weather disruptions, two sources familiar with the matter said. Foxconn and Pegatron 4938.TW had on Monday halted production of iPhones at their factories near Chennai because of heavy rain as a severe cyclone neared, Reuters had reported. (Reporting by Munsif Vengattil in Bengaluru; Editing by Kim Coghill) (([email protected]; Mobile: +91 7022132226;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | BENGALURU, Dec 5 (Reuters) - Taiwan's Foxconn 2317.TW has cancelled the first shift on Tuesday at its Indian facility that makes Apple AAPL.O iPhones following weather disruptions, two sources familiar with the matter said. Foxconn's operations in the facility near the south Indian city of Chennai were likely to resume after the first shift, the sources said. Foxconn and Pegatron 4938.TW had on Monday halted production of iPhones at their factories near Chennai because of heavy rain as a severe cyclone neared, Reuters had reported. |
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12252.0 | 2023-12-05 00:00:00 UTC | Nikkei posts sharpest drop in about 6 weeks as chip shares slide | AAPL | https://www.nasdaq.com/articles/nikkei-posts-sharpest-drop-in-about-6-weeks-as-chip-shares-slide | Updates with closing prices
TOKYO, Dec 5 (Reuters) - Japan's Nikkei share average posted its steepest drop in nearly six weeks on Tuesday, as elevated U.S. Treasury yields drove a heavy sell-off in Advantest and other chip-related stocks.
The benchmark Nikkei average .N225 closed down 1.37% at 32,775.82 on Tuesday, its biggest single-day fall since Oct. 26. The index touched a three-week low of 32,726.68 during the session.
"Investors unwound high-technology stocks in today's session. Those shares had been bought amid declines of U.S. yields," said Naoki Fujiwara, senior fund manager at Shinkin Asset Management.
"The overnight rise on the U.S. Treasury yields became a cue for a sell-off. Investors were watching for how much the yields would rise."
U.S. stocks ended lower on Monday, with megacaps Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon AMZN.O dipping over 1%, pressured by higher U.S. 10-year yields ahead of key employment data due this week. .NUS/
Most of the Nikkei's top losers were chip-related stocks, with Advantest 6857.T down 6%, Tokyo Electron 8035.T falling 3.8% and Screen Holdings 7735.T slipping 5%. Renesas Electronics 6723.T also fell 5%.
The broader Topix .TOPX fell 0.82% to 2,343.16.
A smaller decline of the Topix than the Nikkei's loss was a reflection of a real market condition, said Fujiwara at Shinkin Asset.
Cloud service provider Sakura Internet 3778.T surged 13% after Nvidia CEO Jensen Huang said the U.S. semiconductor giant would work with Japanese companies such as Sakura Internet to build artificial intelligence factories for Japan.
"The desire to create Japan's large language model is very real and the Prime Minister is very urgent," Huang said after his meeting with Japanese Prime Minister Fumio Kishida on Monday.
Robot maker ACSL 6232.T surged 6% after an activist investor Oasis Management revealed its holding of a 10.47% stake in the company.
Nikkei Index https://tmsnrt.rs/41mPU0F
(Reporting by Junko Fujita, additional reporting by Rocky Swift and Ankur Banerjee; 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. | U.S. stocks ended lower on Monday, with megacaps Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon AMZN.O dipping over 1%, pressured by higher U.S. 10-year yields ahead of key employment data due this week. Updates with closing prices TOKYO, Dec 5 (Reuters) - Japan's Nikkei share average posted its steepest drop in nearly six weeks on Tuesday, as elevated U.S. Treasury yields drove a heavy sell-off in Advantest and other chip-related stocks. .NUS/ Most of the Nikkei's top losers were chip-related stocks, with Advantest 6857.T down 6%, Tokyo Electron 8035.T falling 3.8% and Screen Holdings 7735.T slipping 5%. | U.S. stocks ended lower on Monday, with megacaps Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon AMZN.O dipping over 1%, pressured by higher U.S. 10-year yields ahead of key employment data due this week. Updates with closing prices TOKYO, Dec 5 (Reuters) - Japan's Nikkei share average posted its steepest drop in nearly six weeks on Tuesday, as elevated U.S. Treasury yields drove a heavy sell-off in Advantest and other chip-related stocks. Those shares had been bought amid declines of U.S. yields," said Naoki Fujiwara, senior fund manager at Shinkin Asset Management. | U.S. stocks ended lower on Monday, with megacaps Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon AMZN.O dipping over 1%, pressured by higher U.S. 10-year yields ahead of key employment data due this week. Updates with closing prices TOKYO, Dec 5 (Reuters) - Japan's Nikkei share average posted its steepest drop in nearly six weeks on Tuesday, as elevated U.S. Treasury yields drove a heavy sell-off in Advantest and other chip-related stocks. .NUS/ Most of the Nikkei's top losers were chip-related stocks, with Advantest 6857.T down 6%, Tokyo Electron 8035.T falling 3.8% and Screen Holdings 7735.T slipping 5%. | U.S. stocks ended lower on Monday, with megacaps Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon AMZN.O dipping over 1%, pressured by higher U.S. 10-year yields ahead of key employment data due this week. Updates with closing prices TOKYO, Dec 5 (Reuters) - Japan's Nikkei share average posted its steepest drop in nearly six weeks on Tuesday, as elevated U.S. Treasury yields drove a heavy sell-off in Advantest and other chip-related stocks. "Investors unwound high-technology stocks in today's session. |
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12253.0 | 2023-12-05 00:00:00 UTC | Foxconn November sales up 18% | AAPL | https://www.nasdaq.com/articles/foxconn-november-sales-up-18 | TAIPEI, Dec 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and a major supplier to Apple AAPL.O, on Tuesday reported November sales rose 18% year on year.
(Reporting by Ben Blanchard and Sarah Wu Editing by David Goodman )
(([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. | TAIPEI, Dec 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and a major supplier to Apple AAPL.O, on Tuesday reported November sales rose 18% year on year. (Reporting by Ben Blanchard and Sarah Wu Editing by David Goodman ) (([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. | TAIPEI, Dec 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and a major supplier to Apple AAPL.O, on Tuesday reported November sales rose 18% year on year. (Reporting by Ben Blanchard and Sarah Wu Editing by David Goodman ) (([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. | TAIPEI, Dec 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and a major supplier to Apple AAPL.O, on Tuesday reported November sales rose 18% year on year. (Reporting by Ben Blanchard and Sarah Wu Editing by David Goodman ) (([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. | TAIPEI, Dec 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and a major supplier to Apple AAPL.O, on Tuesday reported November sales rose 18% year on year. (Reporting by Ben Blanchard and Sarah Wu Editing by David Goodman ) (([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. |
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12254.0 | 2023-12-05 00:00:00 UTC | Foxconn raises Q4 outlook on strong year-end holiday sales | AAPL | https://www.nasdaq.com/articles/foxconn-raises-q4-outlook-on-strong-year-end-holiday-sales | Recasts, updates throughout
TAIPEI, Dec 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and a major Apple AAPL.O supplier, on Tuesday raised its outlook for the fourth quarter on strong year-end sales for the holiday peak season.
The fourth quarter is traditionally the hot season for Taiwan's tech companies as they race to supply smartphones, tablets and other electronics to major vendors such as Apple for the year-end holiday period in Western markets.
Foxconn said in a statement that with the second half of the year being the traditional peak season for the tech industry, revenue performance in the first two months of the fourth quarter had been slightly higher than expected.
"Therefore, the outlook for the fourth quarter should be better than the original guidance for 'significant growth'", the company added, without elaborating.
Foxconn does not provide exact numerical guidance.
The company, formally called Hon Hai Precision Industry Co Ltd, said revenue last month reached T$650 billion ($20.65 billion), the second highest on record for the month and up 18% year-on-year, though down 12.3% from October.
Revenue in its smart consumer electronics products, including smartphones, saw strong year-on-year growth last month but that came off a low base as last year its main iPhone production base in China's Zhengzhou was dealing with COVID-related restrictions.
The company is the Apple's biggest iPhone assembler.
For components and other products, revenue in November showed strong year-on-year growth "due to increasing allocations in smart consumer electronics products and rising shipments in auto components", it added.
Foxconn last month logged a surprise 11% increase in third-quarter profit, helped by gains in non-operating income but predicted revenue would fall slightly for the year.
Foxconn's Taipei-listed shares closed flat on Tuesday ahead of the release of its November sales, compared with a 0.5% drop for the broader market .TWII.
($1 = 31.4710 Taiwan dollars)
(Reporting by Ben Blanchard and Sarah Wu Editing by David Goodman and Shri Navaratnam)
(([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. | Recasts, updates throughout TAIPEI, Dec 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and a major Apple AAPL.O supplier, on Tuesday raised its outlook for the fourth quarter on strong year-end sales for the holiday peak season. The fourth quarter is traditionally the hot season for Taiwan's tech companies as they race to supply smartphones, tablets and other electronics to major vendors such as Apple for the year-end holiday period in Western markets. Foxconn said in a statement that with the second half of the year being the traditional peak season for the tech industry, revenue performance in the first two months of the fourth quarter had been slightly higher than expected. | Recasts, updates throughout TAIPEI, Dec 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and a major Apple AAPL.O supplier, on Tuesday raised its outlook for the fourth quarter on strong year-end sales for the holiday peak season. Revenue in its smart consumer electronics products, including smartphones, saw strong year-on-year growth last month but that came off a low base as last year its main iPhone production base in China's Zhengzhou was dealing with COVID-related restrictions. For components and other products, revenue in November showed strong year-on-year growth "due to increasing allocations in smart consumer electronics products and rising shipments in auto components", it added. | Recasts, updates throughout TAIPEI, Dec 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and a major Apple AAPL.O supplier, on Tuesday raised its outlook for the fourth quarter on strong year-end sales for the holiday peak season. The fourth quarter is traditionally the hot season for Taiwan's tech companies as they race to supply smartphones, tablets and other electronics to major vendors such as Apple for the year-end holiday period in Western markets. Revenue in its smart consumer electronics products, including smartphones, saw strong year-on-year growth last month but that came off a low base as last year its main iPhone production base in China's Zhengzhou was dealing with COVID-related restrictions. | Recasts, updates throughout TAIPEI, Dec 5 (Reuters) - Taiwan's Foxconn 2317.TW, the world's largest contract electronics maker and a major Apple AAPL.O supplier, on Tuesday raised its outlook for the fourth quarter on strong year-end sales for the holiday peak season. Foxconn said in a statement that with the second half of the year being the traditional peak season for the tech industry, revenue performance in the first two months of the fourth quarter had been slightly higher than expected. "Therefore, the outlook for the fourth quarter should be better than the original guidance for 'significant growth'", the company added, without elaborating. |
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12255.0 | 2023-12-05 00:00:00 UTC | AAPL Quantitative Stock Analysis | AAPL | https://www.nasdaq.com/articles/aapl-quantitative-stock-analysis-8 | 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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12256.0 | 2023-12-05 00:00:00 UTC | 1 Unstoppable Vanguard ETF I'm Stocking Up On in 2024 | AAPL | https://www.nasdaq.com/articles/1-unstoppable-vanguard-etf-im-stocking-up-on-in-2024 | The new year is the perfect opportunity to analyze your portfolio and consider loading up on new investments. With the stock market soaring in recent weeks, now could be a smart time to invest if prices continue increasing.
Exchange-traded funds (ETFs) can be a fantastic investment for many people. Each ETF contains dozens or even hundreds of stocks, providing plenty of diversification with much less effort than investing in stocks individually.
However, not all ETFs are good investments. While everyone's investing preferences will differ, there's one Vanguard ETF I've been buying for years and plan to continue buying as we head into 2024: The Vanguard Growth ETF (NYSEMKT: VUG).
The perfect balance of risk and reward
Growth ETFs are designed to beat the market, and each fund contains stocks with the potential for above-average growth. The Vanguard Growth ETF includes 221 stocks from a variety of industries, though roughly half of the stocks come from the tech sector.
In general, growth ETFs tend to carry more risk than broad-market funds (such as an S&P 500 ETF). One of the biggest advantages of this fund, though, is that it effectively balances risk and reward.
The ETF's top 10 holdings make up around half of the fund's total composition, and these stocks are from behemoth corporations such as Apple, Amazon, and Microsoft. These blue chip stocks may not experience explosive growth, but they are far more stable than many smaller companies -- significantly limiting your risk.
The other half of the fund is made up of dozens of smaller stocks with the potential for faster growth. These stocks carry more risk than the blue chips, but if any one of them takes off, you could see substantial returns.
How much can you earn with the Vanguard Growth ETF?
Nobody can say exactly how the market will perform in the short term, and growth ETFs tend to be more volatile than broad-market funds. During tough times, you could see more significant downturns with this ETF than you would with, say, an S&P 500 ETF.
That said, when the market is thriving, growth ETFs often outperform broad-market funds by a substantial margin.
Over the past 10 years, the Vanguard Growth ETF has earned an average rate of return of 13.87% per year. In comparison, the Vanguard S&P 500 ETF (NYSEMKT: VOO) has earned an 11.77% average annual return over the past 10 years.
While that may not seem like a significant difference, it adds up over time. If you were to invest, say, $200 per month in each of these ETFs, here's approximately how much you could accumulate over time, depending on whether you're earning a 13% average annual return with a growth ETF or an 11% average annual return with an S&P 500 ETF.
NUMBER OF YEARS TOTAL PORTFOLIO VALUE: VANGUARD GROWTH ETF TOTAL PORTFOLIO VALUE: VANGUARD S&P 500 ETF
20 $194,000 $154,000
25 $373,000 $275,000
30 $704,000 $478,000
35 $1,312,000 $820,000
40 $2,433,00 $1,396,000
Data source: Author's calculations via investor.gov.
Again, growth ETFs can be more volatile than broad-market funds, especially in the short term. If you're a more risk-averse investor and prefer to avoid as much volatility as possible, an S&P 500 ETF or similar investment may be a better fit. You'll still experience ups and downs with any investment, but broad-market funds often aren't as extreme in their fluctuations as growth ETFs.
If you're willing to take on more risk for the chance of earning higher returns, the Vanguard Growth ETF could be a good option. This fund has effectively beaten the market over the past decade, and if it's able to keep up this trend, you could see significantly higher-than-average earnings over time.
No investment will be the perfect fit for every person, so it's important to weigh the pros and cons of each ETF before you buy. If you're looking for a growth ETF that can balance risk and reward, the Vanguard Growth ETF could be a smart buy heading into 2024 and beyond.
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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 Index Funds-Vanguard Growth ETF and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard S&P 500 ETF. 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 ETF's top 10 holdings make up around half of the fund's total composition, and these stocks are from behemoth corporations such as Apple, Amazon, and Microsoft. These blue chip stocks may not experience explosive growth, but they are far more stable than many smaller companies -- significantly limiting your risk. This fund has effectively beaten the market over the past decade, and if it's able to keep up this trend, you could see significantly higher-than-average earnings over time. | While everyone's investing preferences will differ, there's one Vanguard ETF I've been buying for years and plan to continue buying as we head into 2024: The Vanguard Growth ETF (NYSEMKT: VUG). If you're looking for a growth ETF that can balance risk and reward, the Vanguard Growth ETF could be a smart buy heading into 2024 and beyond. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard S&P 500 ETF. | While everyone's investing preferences will differ, there's one Vanguard ETF I've been buying for years and plan to continue buying as we head into 2024: The Vanguard Growth ETF (NYSEMKT: VUG). If you were to invest, say, $200 per month in each of these ETFs, here's approximately how much you could accumulate over time, depending on whether you're earning a 13% average annual return with a growth ETF or an 11% average annual return with an S&P 500 ETF. If you're looking for a growth ETF that can balance risk and reward, the Vanguard Growth ETF could be a smart buy heading into 2024 and beyond. | While everyone's investing preferences will differ, there's one Vanguard ETF I've been buying for years and plan to continue buying as we head into 2024: The Vanguard Growth ETF (NYSEMKT: VUG). How much can you earn with the Vanguard Growth ETF? The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard S&P 500 ETF. |
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12257.0 | 2023-12-05 00:00:00 UTC | MORNING BID AMERICAS-Small caps pick up baton, China rating hit | AAPL | https://www.nasdaq.com/articles/morning-bid-americas-small-caps-pick-up-baton-china-rating-hit | A look at the day ahead in U.S. and global markets from Mike Dolan
As the S&P500 .SPXstalled on Monday at its high for the year, taking a breather from last week's 'peak rates' rally, smaller U.S. stocks picked up the baton and are playing catchup into the yearend.
Global stock markets were off somewhat again on Tuesday, with Moody's decision to cut the outlook for China's sovereign credit rating on Tuesday adding even more pressure to the year's alarming market underperformance .CSI300 there and clocking a five-year closing low for its benchmark stock index.
Monday proved to be a step back for the main U.S. stock indices .SPX and bond markets US10YT=RR as they consolidated last week's surge on hopes the Federal Reserve is finally done tightening and ready to ease in 2024.
But while some suspect the rates market ebullience may have jumped the gun - and two Fed cuts by June are still more than fully priced - the emphasis merely shifted to small caps that have underperformed all year due to a disproportionate hit from higher borrowing costs.
As the S&P500 fell back about 0.5% from Friday's 2023 closing peak, the Russell 2000 .RUT raced 1% higher to its highest in three months - and is now clocking annual gains of close to 7%.
While that's still less than half the main benchmark, a late year rotation in search of value seems to be on - with the year's megacap tech winners scaling back a bit.
The New York FANG+TM index .NYFANG of tech and digital giants has now fallen back for four sessions in a row, shaving about 3% off its peaks since the start of the month but still sustaining eye-popping 82% year-to-date gains.
The likes of Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon AMZN.O fell back over 1%, pressured by a modest bounceback in U.S. Treasury yields.
And despite some concerns in Treasuries about a heavy investment grade corporate bond sale diary this week, yields fell back again ahead of Tuesday's bell as attention turned to this week's series of critical U.S. jobs market updates.
October job openings are reported later in the day, before a private sector hiring update for November tomorrow, weekly jobless on Thursday and the national payrolls report Friday.
Oil prices hovered just above 5-month lows, with global demand concerns outweighing some output cuts.#
And demand worries are front and centre for the world's second biggest economy.
China's blue-chip stocks slumped to their lowest since February 2019 amid fears of a possible cut to China's sovereign credit rating cut after Moody's outlook reduction.
Moody's said the downgrade reflected growing evidence that authorities will have to provide more financial support for debt-laden local governments and state firms, posing broad risks to China's fiscal, economic and institutional strength.
"The outlook change also reflects the increased risks related to structurally and persistently lower medium-term economic growth and the ongoing downsizing of the property sector," Moody's said.
The yuan CNH= weakened slightly against a broadly softer dollar .DXY
The ratings news overshadowed a private-sector survey that China's services activity expanded at a quicker pace in November - confusing a picture where official surveys show the sector contracting for the first time since December.
Elsewhere, the Reserve Bank of Australia held interest rates steady as expected - buying it more time to assess the state of the economy and decide whether to tighten further next year even as the U.S. and Europe are expected to ease. The Aussie dollar AU= fell back.
In Europe, hawkish European Central Bank board member Isabel Schnabel told Reuters the ECB can take further interest rate hikes off the table given a "remarkable" fall in inflation.
Deep annual producer price deflation eased somewhat last month.
And BarclaysBARC.L shares opened 4.5% lower, eventually paring some of the losses, after one of its largest shareholders Qatar Holding moved to sell around 510 million pound ($644 million) of its stock.
U.S. stock futures were marginally in the red before Tuesday's open.
Key developments that should provide more direction to U.S. markets later on Tuesday:
* U.S. Oct JOLTS data on job openings, U.S. Nov S&P Global service sector survey
* Federal Reserve Division of Supervision and Regulation Director Michael Gibson testifies to Congress on Financial Innovation. European Central Bank President Christine Laggard speaks
* U.S. Treasury auctions 3-, 6-month bills
* U.S. corporate earnings: JAM Smacker, Auto zone, Descartes Systems, Health, Apportionment, Rent the Runway, Mongo, Stitch Fix, Powell Industries, Dave & Buster's Entertainment, Patronymics, G-III Apparel. Zero Fox, D Market Electronics Lands End, America's CAR-MART.
US Stocks' Annual Gains Broaden Out https://tmsnrt.rs/3td5Y8e
US JOLTS job openings data https://tmsnrt.rs/47fHDNK
US core capital goods https://tmsnrt.rs/3RrvaBl
Australia’s benchmark interest rate https://tmsnrt.rs/46IlarY
Higher temperatures, larger damage from climate risks https://tmsnrt.rs/3FXku6X
(By Mike Dolan, Editing by Bernadette Baum; [email protected])
(([email protected]; +44 207 542 8488; 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 likes of Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon AMZN.O fell back over 1%, pressured by a modest bounceback in U.S. Treasury yields. But while some suspect the rates market ebullience may have jumped the gun - and two Fed cuts by June are still more than fully priced - the emphasis merely shifted to small caps that have underperformed all year due to a disproportionate hit from higher borrowing costs. Key developments that should provide more direction to U.S. markets later on Tuesday: * U.S. Oct JOLTS data on job openings, U.S. Nov S&P Global service sector survey * Federal Reserve Division of Supervision and Regulation Director Michael Gibson testifies to Congress on Financial Innovation. | The likes of Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon AMZN.O fell back over 1%, pressured by a modest bounceback in U.S. Treasury yields. Global stock markets were off somewhat again on Tuesday, with Moody's decision to cut the outlook for China's sovereign credit rating on Tuesday adding even more pressure to the year's alarming market underperformance .CSI300 there and clocking a five-year closing low for its benchmark stock index. Key developments that should provide more direction to U.S. markets later on Tuesday: * U.S. Oct JOLTS data on job openings, U.S. Nov S&P Global service sector survey * Federal Reserve Division of Supervision and Regulation Director Michael Gibson testifies to Congress on Financial Innovation. | The likes of Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon AMZN.O fell back over 1%, pressured by a modest bounceback in U.S. Treasury yields. Global stock markets were off somewhat again on Tuesday, with Moody's decision to cut the outlook for China's sovereign credit rating on Tuesday adding even more pressure to the year's alarming market underperformance .CSI300 there and clocking a five-year closing low for its benchmark stock index. And despite some concerns in Treasuries about a heavy investment grade corporate bond sale diary this week, yields fell back again ahead of Tuesday's bell as attention turned to this week's series of critical U.S. jobs market updates. | The likes of Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon AMZN.O fell back over 1%, pressured by a modest bounceback in U.S. Treasury yields. Global stock markets were off somewhat again on Tuesday, with Moody's decision to cut the outlook for China's sovereign credit rating on Tuesday adding even more pressure to the year's alarming market underperformance .CSI300 there and clocking a five-year closing low for its benchmark stock index. As the S&P500 fell back about 0.5% from Friday's 2023 closing peak, the Russell 2000 .RUT raced 1% higher to its highest in three months - and is now clocking annual gains of close to 7%. |
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12258.0 | 2023-12-05 00:00:00 UTC | Will Microsoft Overtake Apple as the World's Largest Company in 2024? | AAPL | https://www.nasdaq.com/articles/will-microsoft-overtake-apple-as-the-worlds-largest-company-in-2024 | At the end of 2023, Apple (NASDAQ: AAPL) still holds the title of the world's largest company, but Microsoft (NASDAQ: MSFT) is nipping at its heels. With Apple at a $2.94 trillion market cap and Microsoft at $2.81 trillion, Microsoft is only a 4.6% gain from taking the lead.
Will Microsoft overtake Apple as the world's largest company in 2024? Let's take a look.
Apple is a more consumer-centric investment
While both Microsoft and Apple have sprawling businesses, the two serve quite different audiences. Apple is almost entirely consumer-focused, with its iPhones, iPads, Apple Watches, and other products serving the general population. This focus can be hit or miss, as the company is entirely tied to consumer confidence. Apple's revenue declines in four straight quarters paint a clear picture of the state of the consumer.
Microsoft is more balanced, as it has consumer- and business-centered products. However, with the rise of its Azure cloud computing product, Microsoft is shifting more toward being a business-to-business investment. Contrary to Apple's revenue decline, Microsoft has done much better over the past 12 months, with revenue in the mid- to high single digits, before posting an impressive 13% growth in its latest quarter.
The argument of which company will be larger at the end of 2024 boils down to one question: What will be stronger, the consumer or business? With the momentum Microsoft has in key trends like cloud computing and artificial intelligence (AI), I'd say it's hard to argue against it.
Microsoft's prospects are much brighter than Apple's
Although Apple has multiple products, iPhone sales make up about half its revenue. This makes it one of Apple's most important segments, but the problem is it isn't capturing market share in the U.S. anymore. Since 2020, the iPhone has maintained its high 50% market share in the U.S. and hasn't increased. Unless Apple creates a new product that convinces Android users to switch, this may represent the top end of the market share it can capture in the U.S.
Worldwide is a different story, as Apple only has about a 16% market share. For Apple to grow past its current point, it must expand its global footprint, create an innovative new product, or continue expanding its services division. While all these are possible, they're not nearly as promising as Microsoft's prospects.
Microsoft has multiple irons in the fire, but the greatest hope lies in AI, as Azure and other products are set to benefit. Cloud computing is vital in AI for two reasons. First, for AI models to be accurate, they need a lot of data fed into them. Storing this data on-site can be difficult, so many companies tap into the storage space that Azure can provide. Second, you need a lot of computing power to develop AI models. Many clients won't have use for a full-time AI-devoted computer, so they'll rent out computing space in Azure to create the models.
Cloud computing is estimated to be a $1.6 trillion market opportunity by 2030 (according to Grandview Research), and with Microsoft holding around a 22% market share, it's well positioned to capitalize on this trend. But that's just Azure.
Microsoft also has an AI co-pilot rolling out to its office products, a partnership with OpenAI, and its newly acquired Activision Blizzard gaming division. Looking forward, Microsoft seems to be in a much better place than Apple.
However, this outlook comes at a price, as Microsoft stock is significantly more expensive than Apple's.
MSFT PE Ratio data by YCharts
But with Microsoft's ambitions and recent execution, I'd say it has earned its premium.
So, will Microsoft overtake Apple as the world's largest company in 2024? I'd say yes. In fact, I wouldn't be surprised if it did it before 2023 is over. Microsoft also looks like a decent buy right now, and I'd take it over Apple every day of the week.
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Keithen Drury 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. | At the end of 2023, Apple (NASDAQ: AAPL) still holds the title of the world's largest company, but Microsoft (NASDAQ: MSFT) is nipping at its heels. Microsoft has multiple irons in the fire, but the greatest hope lies in AI, as Azure and other products are set to benefit. Microsoft also has an AI co-pilot rolling out to its office products, a partnership with OpenAI, and its newly acquired Activision Blizzard gaming division. | At the end of 2023, Apple (NASDAQ: AAPL) still holds the title of the world's largest company, but Microsoft (NASDAQ: MSFT) is nipping at its heels. Will Microsoft overtake Apple as the world's largest company in 2024? However, with the rise of its Azure cloud computing product, Microsoft is shifting more toward being a business-to-business investment. | At the end of 2023, Apple (NASDAQ: AAPL) still holds the title of the world's largest company, but Microsoft (NASDAQ: MSFT) is nipping at its heels. With Apple at a $2.94 trillion market cap and Microsoft at $2.81 trillion, Microsoft is only a 4.6% gain from taking the lead. Microsoft's prospects are much brighter than Apple's Although Apple has multiple products, iPhone sales make up about half its revenue. | At the end of 2023, Apple (NASDAQ: AAPL) still holds the title of the world's largest company, but Microsoft (NASDAQ: MSFT) is nipping at its heels. Microsoft's prospects are much brighter than Apple's Although Apple has multiple products, iPhone sales make up about half its revenue. Cloud computing is estimated to be a $1.6 trillion market opportunity by 2030 (according to Grandview Research), and with Microsoft holding around a 22% market share, it's well positioned to capitalize on this trend. |
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12259.0 | 2023-12-05 00:00:00 UTC | EXCLUSIVE-Apple warns India's EU-style charger rules will hit local production target | AAPL | https://www.nasdaq.com/articles/exclusive-apple-warns-indias-eu-style-charger-rules-will-hit-local-production-target | By Aditya Kalra and Munsif Vengattil
NEW DELHI, Dec 5 (Reuters) - Apple AAPL.O has told India its local production targets will be hit if New Delhi follows the European Union and requires existing iPhones to have universal charging ports, a government document shows as the U.S. tech giant lobbies for an exemption or delay.
India wants to implement a European Union rule that will require smartphones to have a universal USB-C charging port, and has been in talks with manufacturers about introducing the requirement in India by June 2025, six months after the deadline in the EU. While all manufacturers including Samsung 005930.KS have agreed to India's plan, Apple is pushing back.
Apple has for years offered a unique lightning connector port on its iPhones. The EU, however, estimates a single charger solution would save about $271 million for consumers, and India has said the move will reduce e-waste and help users.
In a closed-door Nov. 28 meeting chaired by India's IT ministry, Apple asked officials to exempt existing iPhone models from the rules, warning it will otherwise struggle to meet production targets set under India's production-linked incentive (PLI) scheme, according to the meeting minutes seen by Reuters.
PLI is a key project of Prime Minister Narendra Modi and offers electronic manufacturers in India fiscal incentives for fresh investments and incremental phone sales each year. It has been extensively used by Apple suppliers like Foxconn 2317.TW to expand iPhone manufacturing in the country.
"If the regulation is implemented on earlier models of mobile phones, they (Apple) will not be able to meet the PLI targets," the minutes quoted Apple's regulatory and product compliance executives as saying while opposing the rules.
Apple did not quantify the production impact in the meeting, and the IT ministry decided to review its request and reach a decision later, two people familiar with the discussions said.
Apple, whose India lobbying efforts are being reported for the first time, and India's IT ministry, did not respond to Reuters requests for comment.
DESIGN CAN'T CHANGE
India is seen as Apple's next growth frontier after China.
Renowned Apple analyst Ming-Chi Kuo has estimated 12-14% of iPhone production in 2023 will be from India, with the number set to rise to as much as 25% next year.
In terms of market share, Apple accounts for 6% of India's booming smartphone market, compared with just about 2% four years ago. Apple suppliers have expanded their facilities and make most iPhone 12, 13, 14 and 15 models in India for local sales and exports, Counterpoint Research estimates.
Only iPhone 15 has the new universal charging port. Apple told Indian officials in the meeting that the "design of the earlier products cannot be changed," the document showed.
Consumers in India's price-conscious market prefer buying older models of iPhones which typically become cheaper with new launches, and India's push for the common charger on older models could hit Apple's targets, said Prabhu Ram, head of the Industry Intelligence Group at CyberMedia Research.
"Apple's fortunes in India have primarily been tied to older generation iPhones," he said.
The EU's charging port rules kick in in December 2024, and India wants compliance by June 2025.
Apple told officials it can comply with that timeline if existing models are exempted from the rules, but will need 18 months beyond 2024 if they are not.
"A natural transition period should be given ... keeping in mind the product design timelines," the minutes quoted Apple executives as telling government officials.
(Reporting by Aditya Kalra and Munsif Vengattil; Editing by Susan Fenton)
(([email protected]; @adityakalra;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Aditya Kalra and Munsif Vengattil NEW DELHI, Dec 5 (Reuters) - Apple AAPL.O has told India its local production targets will be hit if New Delhi follows the European Union and requires existing iPhones to have universal charging ports, a government document shows as the U.S. tech giant lobbies for an exemption or delay. PLI is a key project of Prime Minister Narendra Modi and offers electronic manufacturers in India fiscal incentives for fresh investments and incremental phone sales each year. Apple did not quantify the production impact in the meeting, and the IT ministry decided to review its request and reach a decision later, two people familiar with the discussions said. | By Aditya Kalra and Munsif Vengattil NEW DELHI, Dec 5 (Reuters) - Apple AAPL.O has told India its local production targets will be hit if New Delhi follows the European Union and requires existing iPhones to have universal charging ports, a government document shows as the U.S. tech giant lobbies for an exemption or delay. "If the regulation is implemented on earlier models of mobile phones, they (Apple) will not be able to meet the PLI targets," the minutes quoted Apple's regulatory and product compliance executives as saying while opposing the rules. "A natural transition period should be given ... keeping in mind the product design timelines," the minutes quoted Apple executives as telling government officials. | By Aditya Kalra and Munsif Vengattil NEW DELHI, Dec 5 (Reuters) - Apple AAPL.O has told India its local production targets will be hit if New Delhi follows the European Union and requires existing iPhones to have universal charging ports, a government document shows as the U.S. tech giant lobbies for an exemption or delay. In a closed-door Nov. 28 meeting chaired by India's IT ministry, Apple asked officials to exempt existing iPhone models from the rules, warning it will otherwise struggle to meet production targets set under India's production-linked incentive (PLI) scheme, according to the meeting minutes seen by Reuters. Consumers in India's price-conscious market prefer buying older models of iPhones which typically become cheaper with new launches, and India's push for the common charger on older models could hit Apple's targets, said Prabhu Ram, head of the Industry Intelligence Group at CyberMedia Research. | By Aditya Kalra and Munsif Vengattil NEW DELHI, Dec 5 (Reuters) - Apple AAPL.O has told India its local production targets will be hit if New Delhi follows the European Union and requires existing iPhones to have universal charging ports, a government document shows as the U.S. tech giant lobbies for an exemption or delay. In a closed-door Nov. 28 meeting chaired by India's IT ministry, Apple asked officials to exempt existing iPhone models from the rules, warning it will otherwise struggle to meet production targets set under India's production-linked incentive (PLI) scheme, according to the meeting minutes seen by Reuters. Apple suppliers have expanded their facilities and make most iPhone 12, 13, 14 and 15 models in India for local sales and exports, Counterpoint Research estimates. |
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12260.0 | 2023-12-04 00:00:00 UTC | Floods, nine killed as southern India braces for Cyclone Michaung | AAPL | https://www.nasdaq.com/articles/floods-nine-killed-as-southern-india-braces-for-cyclone-michaung | By Jatindra Dash
BHUBANESHWAR, India, Dec 5 (Reuters) - Heavy rains submerged roads in southern India on Tuesday, where at least nine people, including a child, were killed in the flooding and the havoc hours before a severe cyclone was due to make landfall.
Cyclone Michaung is expected to hit the coast of Andhra Pradesh state around 11 a.m. local time (0530 GMT), the weather office said, gusting in with winds of up to 110 kph (70 mph).
Parts of the state are expected to be pelted with more than 200 mm (8 inches) of rain over the next 24 hours, the weather office said, and at least 8,000 people have been evacuated.
A 4-year-old boy died in Tirupati district after a wall fell, C. Nagaraju, executive director of the state's disaster management authority said, while eight people were killed in neighbouring Tamil Nadu state, officials said.
In Tamil Nadu's capital Chennai, a major electronics and manufacturing hub, floodwaters swept away cars and submerged a runway, triggering the shutdown of one of India's busiest airports until Tuesday morning.
The rains have stopped and water has receded at Chennai airport, and the airfield was operational from 9 a.m. local time, a spokesperson for the federal civil aviation ministry said.
The rains and winds also snapped power lines and uprooted trees, officials said, and more than 140 trains and 40 flights were cancelled in Andhra Pradesh.
Taiwan's Foxconn 2317.TW and Pegatron 4938.TW halted Apple AAPL.O iPhone production at their facilities near Chennai due to heavy rains, sources familiar with the matter said on Monday.
In December 2015, floods in Tamil Nadu killed at least 290 people and caused widespread damage.
(Reporting by Jatindra Dash and Rishika Sadam. Additional reporting by Aditi Shah, Writing by Shilpa Jamkhandikar; Editing by Miral Fahmy and Jacqueline Wong)
(([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. | Taiwan's Foxconn 2317.TW and Pegatron 4938.TW halted Apple AAPL.O iPhone production at their facilities near Chennai due to heavy rains, sources familiar with the matter said on Monday. Cyclone Michaung is expected to hit the coast of Andhra Pradesh state around 11 a.m. local time (0530 GMT), the weather office said, gusting in with winds of up to 110 kph (70 mph). In Tamil Nadu's capital Chennai, a major electronics and manufacturing hub, floodwaters swept away cars and submerged a runway, triggering the shutdown of one of India's busiest airports until Tuesday morning. | Taiwan's Foxconn 2317.TW and Pegatron 4938.TW halted Apple AAPL.O iPhone production at their facilities near Chennai due to heavy rains, sources familiar with the matter said on Monday. By Jatindra Dash BHUBANESHWAR, India, Dec 5 (Reuters) - Heavy rains submerged roads in southern India on Tuesday, where at least nine people, including a child, were killed in the flooding and the havoc hours before a severe cyclone was due to make landfall. Cyclone Michaung is expected to hit the coast of Andhra Pradesh state around 11 a.m. local time (0530 GMT), the weather office said, gusting in with winds of up to 110 kph (70 mph). | Taiwan's Foxconn 2317.TW and Pegatron 4938.TW halted Apple AAPL.O iPhone production at their facilities near Chennai due to heavy rains, sources familiar with the matter said on Monday. By Jatindra Dash BHUBANESHWAR, India, Dec 5 (Reuters) - Heavy rains submerged roads in southern India on Tuesday, where at least nine people, including a child, were killed in the flooding and the havoc hours before a severe cyclone was due to make landfall. A 4-year-old boy died in Tirupati district after a wall fell, C. Nagaraju, executive director of the state's disaster management authority said, while eight people were killed in neighbouring Tamil Nadu state, officials said. | Taiwan's Foxconn 2317.TW and Pegatron 4938.TW halted Apple AAPL.O iPhone production at their facilities near Chennai due to heavy rains, sources familiar with the matter said on Monday. By Jatindra Dash BHUBANESHWAR, India, Dec 5 (Reuters) - Heavy rains submerged roads in southern India on Tuesday, where at least nine people, including a child, were killed in the flooding and the havoc hours before a severe cyclone was due to make landfall. Cyclone Michaung is expected to hit the coast of Andhra Pradesh state around 11 a.m. local time (0530 GMT), the weather office said, gusting in with winds of up to 110 kph (70 mph). |
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12261.0 | 2023-12-04 00:00:00 UTC | Floods, five killed as southern India braces for Cyclone Michaung | AAPL | https://www.nasdaq.com/articles/floods-five-killed-as-southern-india-braces-for-cyclone-michaung | By Jatindra Dash
BHUBANESHWAR, India, Dec 5 (Reuters) - Heavy rains submerged roads and shut down a major airport in southern India on Tuesday, where at least five people, including a child, were killed in the flooding and the havoc hours before a severe cyclone was due to make landfall.
Cyclone Michaung is expected to hit the coast of Andhra Pradesh state around 11 am local time (0530 GMT), the weather office said, gusting in with winds of up to 110 kph (70 mph).
Parts of the state are expected to be pelted with more than 200 mm (8 inches) of rain over the next 24 hours, the weather office said, and at least 8,000 people have been evacuated.
A 4-year-old boy died in Tirupati district after a wall fell, C Nagaraju, executive director of the state's disaster management authority said, while four people were killed in neighbouring Tamil Nadu state on Monday, officials said.
In Tamil Nadu's capital Chennai, a major electronics and manufacturing hub, floodwaters swept away cars and submerged a runway, triggering the shutdown of one of India's busiest airports until Tuesday morning.
Photos in local media showed grounded planes with submerged wheels. The rains and winds also snapped power lines and uprooted trees, officials said.
Taiwan's Foxconn 2317.TW and Pegatron 4938.TW halted Apple AAPL.O iPhone production at their facilities near Chennai due to heavy rains, sources familiar with the matter told Reuters on Monday.
In December 2015, floods in Tamil Nadu killed at least 290 people and caused widespread damage.
(Reporting by Jatindra Dash, Writing by Shilpa Jamkhandikar; editing by Miral Fahmy)
(([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. | Taiwan's Foxconn 2317.TW and Pegatron 4938.TW halted Apple AAPL.O iPhone production at their facilities near Chennai due to heavy rains, sources familiar with the matter told Reuters on Monday. Cyclone Michaung is expected to hit the coast of Andhra Pradesh state around 11 am local time (0530 GMT), the weather office said, gusting in with winds of up to 110 kph (70 mph). In Tamil Nadu's capital Chennai, a major electronics and manufacturing hub, floodwaters swept away cars and submerged a runway, triggering the shutdown of one of India's busiest airports until Tuesday morning. | Taiwan's Foxconn 2317.TW and Pegatron 4938.TW halted Apple AAPL.O iPhone production at their facilities near Chennai due to heavy rains, sources familiar with the matter told Reuters on Monday. By Jatindra Dash BHUBANESHWAR, India, Dec 5 (Reuters) - Heavy rains submerged roads and shut down a major airport in southern India on Tuesday, where at least five people, including a child, were killed in the flooding and the havoc hours before a severe cyclone was due to make landfall. A 4-year-old boy died in Tirupati district after a wall fell, C Nagaraju, executive director of the state's disaster management authority said, while four people were killed in neighbouring Tamil Nadu state on Monday, officials said. | Taiwan's Foxconn 2317.TW and Pegatron 4938.TW halted Apple AAPL.O iPhone production at their facilities near Chennai due to heavy rains, sources familiar with the matter told Reuters on Monday. By Jatindra Dash BHUBANESHWAR, India, Dec 5 (Reuters) - Heavy rains submerged roads and shut down a major airport in southern India on Tuesday, where at least five people, including a child, were killed in the flooding and the havoc hours before a severe cyclone was due to make landfall. A 4-year-old boy died in Tirupati district after a wall fell, C Nagaraju, executive director of the state's disaster management authority said, while four people were killed in neighbouring Tamil Nadu state on Monday, officials said. | Taiwan's Foxconn 2317.TW and Pegatron 4938.TW halted Apple AAPL.O iPhone production at their facilities near Chennai due to heavy rains, sources familiar with the matter told Reuters on Monday. By Jatindra Dash BHUBANESHWAR, India, Dec 5 (Reuters) - Heavy rains submerged roads and shut down a major airport in southern India on Tuesday, where at least five people, including a child, were killed in the flooding and the havoc hours before a severe cyclone was due to make landfall. Cyclone Michaung is expected to hit the coast of Andhra Pradesh state around 11 am local time (0530 GMT), the weather office said, gusting in with winds of up to 110 kph (70 mph). |
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12262.0 | 2023-12-04 00:00:00 UTC | Top ETF Stories of 2023 | AAPL | https://www.nasdaq.com/articles/top-etf-stories-of-2023 | (1:30) - Should Investors Worry About The Magnificent 7 Dominance?
(6:30) - Breaking Down The Recent Rally of Small Cap Stocks
(9:00) - Will Investors Reduce Their Exposure To Money Market Funds Anytime Soon
(11:55) - What Should Investor Know About The Current ETF Flow Trends?
(15:05) - Why Is So Much Money Being Put Into Bond ETFs Right Now?
(19:00) - The Rise In Active ETFs: Should You Be Buying?
(22:40) - Creating A Strong Watchlist Heading Into The New Year
(28:40) - Episode Roundup: MAGS, CHAT, EQAL, XLI, AVUV, DXJ, EWJ
[email protected]
In this episode of ETF Spotlight, I speak with Todd Sohn, Managing Director, ETF & Technical Strategy at Strategas Securities, about some of the key market trends that shaped the year.
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.
Should investors worry about the dominance of these stocks? ETFs like the Invesco Russell 1000 Equal Weight ETF EQAL and the Industrial Select Sector SPDR ETF XLI are worth a look if you're concerned about tech exposure in the S&P 500 index.
We saw a broadening of the market rally in November and some previously beaten-down areas like small caps performed quite well. Todd likes actively managed small-cap ETFs like the Avantis U.S. Small Cap Value ETF AVUV and the Dimensional U.S. Small Cap ETF DFAS.
Investors have poured about $1 trillion into money market funds over the past year, lured by yields nearing 5% with very little risk. It remains to be seen whether some of this money will be withdrawn as investors chase the equity rally.
Another significant theme this year is the rise of active ETFs, which have captured a disproportionate share of inflows. Despite their uninspiring performance, bond ETFs have also attracted substantial inflows in 2023.
2023 has been a banner year for ETF launches, on track to surpass the all-time annual record of 475 set in 2021. We discuss some intriguing new ETFs worth exploring.
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].
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Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Industrial Select Sector SPDR ETF (XLI): ETF Research Reports
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Invesco Russell 1000 Equal Weight ETF (EQAL): ETF Research Reports
Avantis U.S. Small Cap Value ETF (AVUV): 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. | 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 Industrial Select Sector SPDR ETF (XLI): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco Russell 1000 Equal Weight ETF (EQAL): ETF Research Reports Avantis U.S. Small Cap Value ETF (AVUV): ETF Research Reports Dimensional U.S. Small Cap ETF (DFAS): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. (22:40) - Creating A Strong Watchlist Heading Into The New Year (28:40) - Episode Roundup: MAGS, CHAT, EQAL, XLI, AVUV, DXJ, EWJ [email protected] In this episode of ETF Spotlight, I speak with Todd Sohn, Managing Director, ETF & Technical Strategy at Strategas Securities, about some of the key market trends that shaped the year. | 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 Industrial Select Sector SPDR ETF (XLI): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco Russell 1000 Equal Weight ETF (EQAL): ETF Research Reports Avantis U.S. Small Cap Value ETF (AVUV): ETF Research Reports Dimensional U.S. Small Cap ETF (DFAS): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. ETFs like the Invesco Russell 1000 Equal Weight ETF EQAL and the Industrial Select Sector SPDR ETF XLI are worth a look if you're concerned about tech exposure in the S&P 500 index. | 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 Industrial Select Sector SPDR ETF (XLI): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco Russell 1000 Equal Weight ETF (EQAL): ETF Research Reports Avantis U.S. Small Cap Value ETF (AVUV): ETF Research Reports Dimensional U.S. Small Cap ETF (DFAS): 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. (22:40) - Creating A Strong Watchlist Heading Into The New Year (28:40) - Episode Roundup: MAGS, CHAT, EQAL, XLI, AVUV, DXJ, EWJ [email protected] In this episode of ETF Spotlight, I speak with Todd Sohn, Managing Director, ETF & Technical Strategy at Strategas Securities, about some of the key market trends that shaped the year. | 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 Industrial Select Sector SPDR ETF (XLI): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco Russell 1000 Equal Weight ETF (EQAL): ETF Research Reports Avantis U.S. Small Cap Value ETF (AVUV): ETF Research Reports Dimensional U.S. Small Cap ETF (DFAS): 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. (6:30) - Breaking Down The Recent Rally of Small Cap Stocks (9:00) - Will Investors Reduce Their Exposure To Money Market Funds Anytime Soon (11:55) - What Should Investor Know About The Current ETF Flow Trends? |
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12263.0 | 2023-12-04 00:00:00 UTC | US STOCKS-Wall Street ends down as megacaps give back gains | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-ends-down-as-megacaps-give-back-gains-0 | By Noel Randewich and Shristi Achar A
Dec 4 (Reuters) - U.S. stocks ended lower on Monday, interrupting last week's rally, as investors turned cautious ahead of employment data due this week that could alter expectations that the Federal Reserve will cut interest rates early next year.
The S&P 500 receded, with megacaps Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon AMZN.O dipping over 1%, pressured by higher U.S. Treasury yields, which made returns on stocks less attractive.
The S&P 500 .SPXregistered its highest close of the year on Friday as remarks from Fed Chair Jerome Powell acknowledged the central bank's need to "move forward carefully" amid signs of economic softening, comments that bolstered expectations the Fed has finished raising rates.
Small-cap stocks rose on Monday, with the Russell 2000 .RUT rallying about 1% and bringing its gain this year to almost 7%.
"There is a lot of chop around here that is not necessarily meaningful," said Tom Martin, a senior portfolio manager at GLOBALT Investments in Atlanta.
"We have a really important Fed meeting coming up, and what makes it important is that all of a sudden, the market has decided that they're going to cut early next year."
The S&P 500 declined 0.54% to end the session at 4,569.78 points.
The Nasdaq declined 0.84% to 14,185.49 points, while Dow Jones Industrial Average declined 0.11% to 36,204.44 points.
Volume on U.S. exchanges was relatively heavy, with 12.7 billion shares traded, compared to an average of 10.6 billion shares over the previous 20 sessions.
Ride-hailing service Uber Technologies UBER.N rallied 2.2% after an announcement on Friday it will join the S&P 500 effective Dec. 18.
Shares of Alaska Air GroupALK.N tumbled 14% after the carrier said on Sunday it would acquire peer Hawaiian Holdings HA.O for $1.9 billion, including debt. Hawaiian's shares nearly tripled in value, helping lift the Russel index.
This week's main macroeconomic focus will be Friday's jobs report for November, which may help investors gauge the Fed's likely interest rate path, as well as the potential for a "soft landing" - where the Fed manages to bring inflation under control while averting a recession.
Traders widely expect the central bank will keep rates unchanged at its meeting next week. Interest rate futures suggest a 58% probability the Fed will start cutting rates by March 2024, according to the CME Group's FedWatch tool.
However, some analysts warn that markets have been too quick to price in lower interest rates.
Adding to declines on Monday were renewed fears about a widening of the war in Israel and Gaza after an attack on three commercial vessels in the southern Red Sea.
Shares of cryptocurrency firms such as Coinbase Global COIN.O, Riot Platforms RIOT.O and Marathon Digital MARA.O rallied between 5% and 9% after bitcoin crossed $40,000 for the first time this year.
The S&P 500 posted 38 new highs and no new lows; the Nasdaq recorded 125 new highs and 63 new lows.
The S&P 500 has gained 19% so far in 2023, while the Nasdaq has recovered 24%.
S&P 500 stocks in 2023 https://tmsnrt.rs/3uQsKTP
(Reporting by Amruta Khandekar and Shristi Achar A in Bangalore, and by Noel Randewich in Oakland, Calif.; Editing by Anil D'Silva, Pooja Desai and Aurora Ellis)
(([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 S&P 500 receded, with megacaps Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon AMZN.O dipping over 1%, pressured by higher U.S. Treasury yields, which made returns on stocks less attractive. Adding to declines on Monday were renewed fears about a widening of the war in Israel and Gaza after an attack on three commercial vessels in the southern Red Sea. Shares of cryptocurrency firms such as Coinbase Global COIN.O, Riot Platforms RIOT.O and Marathon Digital MARA.O rallied between 5% and 9% after bitcoin crossed $40,000 for the first time this year. | The S&P 500 receded, with megacaps Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon AMZN.O dipping over 1%, pressured by higher U.S. Treasury yields, which made returns on stocks less attractive. By Noel Randewich and Shristi Achar A Dec 4 (Reuters) - U.S. stocks ended lower on Monday, interrupting last week's rally, as investors turned cautious ahead of employment data due this week that could alter expectations that the Federal Reserve will cut interest rates early next year. Small-cap stocks rose on Monday, with the Russell 2000 .RUT rallying about 1% and bringing its gain this year to almost 7%. | The S&P 500 receded, with megacaps Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon AMZN.O dipping over 1%, pressured by higher U.S. Treasury yields, which made returns on stocks less attractive. By Noel Randewich and Shristi Achar A Dec 4 (Reuters) - U.S. stocks ended lower on Monday, interrupting last week's rally, as investors turned cautious ahead of employment data due this week that could alter expectations that the Federal Reserve will cut interest rates early next year. The S&P 500 .SPXregistered its highest close of the year on Friday as remarks from Fed Chair Jerome Powell acknowledged the central bank's need to "move forward carefully" amid signs of economic softening, comments that bolstered expectations the Fed has finished raising rates. | The S&P 500 receded, with megacaps Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon AMZN.O dipping over 1%, pressured by higher U.S. Treasury yields, which made returns on stocks less attractive. By Noel Randewich and Shristi Achar A Dec 4 (Reuters) - U.S. stocks ended lower on Monday, interrupting last week's rally, as investors turned cautious ahead of employment data due this week that could alter expectations that the Federal Reserve will cut interest rates early next year. Small-cap stocks rose on Monday, with the Russell 2000 .RUT rallying about 1% and bringing its gain this year to almost 7%. |
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12264.0 | 2023-12-04 00:00:00 UTC | US STOCKS-Wall Street ends down as megacaps give back gains | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-ends-down-as-megacaps-give-back-gains | By Noel Randewich and Shristi Achar A
Dec 4 (Reuters) - U.S. stocks ended lower on Monday, interrupting last week's rally, as investors turned cautious ahead of employment data due this week that could alter expectations that the Federal Reserve will cut interest rates early next year.
The S&P 500 receded, with megacaps Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon <AMZN.O> pressured by higher U.S. Treasury yields, which made returns on stocks less attractive.
Wall Street has rallied in recent weeks, buoyed by robust corporate earnings and expectations that the Fed will start cutting rates as soon as March.
The S&P 500 .SPXregistered its highest close of the year on Friday as remarks from Fed Chair Jerome Powell acknowledged the central bank's need to "move forward carefully" amid signs of economic softening, comments that bolstered expectations the Fed has finished raising rates.
Small-cap stocks rose on Monday, with the Russell 2000 .RUT rallying and bringing its gain this year to over 6%.
"There is a lot of chop around here that is not necessarily meaningful," said Tom Martin, a senior portfolio manager at GLOBALT Investments in Atlanta.
"We have a really important Fed meeting coming up, and what makes it important is that all of a sudden, the market has decided that they're going to cut early next year."
Unofficially, the S&P 500 declined 0.54% to end the session at 4,569.78 points. The Nasdaq declined 0.84% to 14,185.49 points, while Dow Jones Industrial Average declined 0.11% to 36,204.31 points.
Ride-hailing service Uber Technologies UBER.N rallied after an announcement on Friday it will join the S&P 500 effective Dec. 18.
Shares of Alaska Air GroupALK.N tumbled after the carrier said on Sunday it would acquire peer Hawaiian Holdings HA.O for $1.9 billion, including debt. Hawaiian's shares nearly tripled in value, helping lift the Russel index.
This week's main macroeconomic focus will be Friday's jobs report for November, which may help investors gauge the Fed's likely interest rate path, as well as the potential for a "soft landing" - where the Fed manages to bring inflation under control while averting a recession.
Traders widely expect the central bank will keep rates unchanged at its meeting next week. Interest rate futures suggest a 58% probability the Fed will start cutting rates by March 2024, according to the CME Group's FedWatch tool.
However, some analysts warn that markets have been too quick to price in lower interest rates.
Adding to declines on Monday were renewed fears about a widening of the war in Israel and Gaza after an attack on three commercial vessels in the southern Red Sea.
Shares of cryptocurrency firms such as Coinbase Global COIN.O, Riot Platforms RIOT.O and Marathon Digital MARA.Orallied afterbitcoin crossed $40,000 for the first time this year.
S&P 500 stocks in 2023 https://tmsnrt.rs/3uQsKTP
(Reporting by Amruta Khandekar and Shristi Achar A in Bangalore, and by Noel Randewich in Oakland, Calif.; Editing by Anil D'Silva, Pooja Desai and Aurora Ellis)
(([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 S&P 500 receded, with megacaps Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon <AMZN.O> pressured by higher U.S. Treasury yields, which made returns on stocks less attractive. Wall Street has rallied in recent weeks, buoyed by robust corporate earnings and expectations that the Fed will start cutting rates as soon as March. Adding to declines on Monday were renewed fears about a widening of the war in Israel and Gaza after an attack on three commercial vessels in the southern Red Sea. | The S&P 500 receded, with megacaps Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon <AMZN.O> pressured by higher U.S. Treasury yields, which made returns on stocks less attractive. By Noel Randewich and Shristi Achar A Dec 4 (Reuters) - U.S. stocks ended lower on Monday, interrupting last week's rally, as investors turned cautious ahead of employment data due this week that could alter expectations that the Federal Reserve will cut interest rates early next year. Wall Street has rallied in recent weeks, buoyed by robust corporate earnings and expectations that the Fed will start cutting rates as soon as March. | The S&P 500 receded, with megacaps Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon <AMZN.O> pressured by higher U.S. Treasury yields, which made returns on stocks less attractive. By Noel Randewich and Shristi Achar A Dec 4 (Reuters) - U.S. stocks ended lower on Monday, interrupting last week's rally, as investors turned cautious ahead of employment data due this week that could alter expectations that the Federal Reserve will cut interest rates early next year. The S&P 500 .SPXregistered its highest close of the year on Friday as remarks from Fed Chair Jerome Powell acknowledged the central bank's need to "move forward carefully" amid signs of economic softening, comments that bolstered expectations the Fed has finished raising rates. | The S&P 500 receded, with megacaps Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon <AMZN.O> pressured by higher U.S. Treasury yields, which made returns on stocks less attractive. By Noel Randewich and Shristi Achar A Dec 4 (Reuters) - U.S. stocks ended lower on Monday, interrupting last week's rally, as investors turned cautious ahead of employment data due this week that could alter expectations that the Federal Reserve will cut interest rates early next year. Wall Street has rallied in recent weeks, buoyed by robust corporate earnings and expectations that the Fed will start cutting rates as soon as March. |
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12265.0 | 2023-12-04 00:00:00 UTC | US STOCKS-Wall St set to retreat as traders await economic data for policy cues | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-retreat-as-traders-await-economic-data-for-policy-cues | By Amruta Khandekar and Shristi Achar A
Dec 4 (Reuters) - Wall Street was set to open lower on Monday, as investors turned wary ahead of a slew of economic data this week that is likely to test the narrative about a cut in interest rates by the Federal Reserve early next year.
U.S. stocks kicked off December on an upbeat note, extending gains from the previous month that were driven by robust earnings and expectations that the Fed was done with its rate hiking campaign.
The benchmark S&P 500 .SPXregistered its highest close of the year on Friday as remarks from Fed Chair Jerome Powell bolstered the peak rates view.
Traders have priced in the likelihood that the central bank will keep rates unchanged next week, with about 59% betting on rate cuts starting as soon as March 2024, according to the CME Group's FedWatch tool.
However, some analysts have cautioned that markets have been too quick to price in lower interest rates.
"It's probably going to be more like the third quarter, because the Fed has told us multiple times that it'll be high for longer and wants to make sure that inflation truly has been strangled," said Sam Stovall, chief investment strategist at CFRA Research in New York, referring to the timing of the first rate cut.
However, Stovall said a Santa Claus rally is still possible as equities rebound from a likely mid-December low due to tax loss harvesting - a process in which investors sell underperforming stocks to lock in tax benefits.
A number of economic reports through the week will provide a gauge on the interest rate path as well as the potential for a "soft landing" - where the Fed manages to bring inflation under control while averting a recession.
Investors are awaiting readings on U.S. services sector activity and a survey on job openings, while November's non-farm payrolls report is set to grab the spotlight on Friday.
Pressuring equities, Treasury yields edged higher on Monday after a sharp fall in the previous week.
Megacap growth stocks including Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O edged lower between 0.5% and 1% before the bell.
Also hurting sentiment on Monday were renewed fears about a widening of the war between Israel and Hamas after an attack on three commercial vessels in the southern Red Sea.
Fed officials have now entered a media blackout period before the interest rate decision on December 13.
Shares of Alaska Air GroupALK.N dropped 12.4% after the carrier said on Sunday it would acquire peer Hawaiian Holdings HA.O for $1.9 billion, including debt. Hawaiian's shares nearly tripled in value.
Shares of cryptocurrency firms such as Coinbase Global COIN.O, Riot Platforms RIOT.O and Marathon Digital MARA.O rose between 10% and 15% premarket, as bitcoin crossed $40,000 for the first time this year.
UberUBER.N added 4.3% as the ride-hailing firm was set to join the S&P 500 index, effective December 18.
The S&P 500 in 2023 https://tmsnrt.rs/419uFPq
(Reporting by Amruta Khandekar and Shristi Achar A; Editing by Anil D'Silva and Pooja Desai)
(([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. | Megacap growth stocks including Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O edged lower between 0.5% and 1% before the bell. By Amruta Khandekar and Shristi Achar A Dec 4 (Reuters) - Wall Street was set to open lower on Monday, as investors turned wary ahead of a slew of economic data this week that is likely to test the narrative about a cut in interest rates by the Federal Reserve early next year. A number of economic reports through the week will provide a gauge on the interest rate path as well as the potential for a "soft landing" - where the Fed manages to bring inflation under control while averting a recession. | Megacap growth stocks including Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O edged lower between 0.5% and 1% before the bell. By Amruta Khandekar and Shristi Achar A Dec 4 (Reuters) - Wall Street was set to open lower on Monday, as investors turned wary ahead of a slew of economic data this week that is likely to test the narrative about a cut in interest rates by the Federal Reserve early next year. However, some analysts have cautioned that markets have been too quick to price in lower interest rates. | Megacap growth stocks including Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O edged lower between 0.5% and 1% before the bell. By Amruta Khandekar and Shristi Achar A Dec 4 (Reuters) - Wall Street was set to open lower on Monday, as investors turned wary ahead of a slew of economic data this week that is likely to test the narrative about a cut in interest rates by the Federal Reserve early next year. "It's probably going to be more like the third quarter, because the Fed has told us multiple times that it'll be high for longer and wants to make sure that inflation truly has been strangled," said Sam Stovall, chief investment strategist at CFRA Research in New York, referring to the timing of the first rate cut. | Megacap growth stocks including Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O edged lower between 0.5% and 1% before the bell. By Amruta Khandekar and Shristi Achar A Dec 4 (Reuters) - Wall Street was set to open lower on Monday, as investors turned wary ahead of a slew of economic data this week that is likely to test the narrative about a cut in interest rates by the Federal Reserve early next year. U.S. stocks kicked off December on an upbeat note, extending gains from the previous month that were driven by robust earnings and expectations that the Fed was done with its rate hiking campaign. |
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12266.0 | 2023-12-04 00:00:00 UTC | Noteworthy Monday Option Activity: MRNA, AAPL, GOOGL | AAPL | https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-mrna-aapl-googl | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Moderna Inc (Symbol: MRNA), where a total volume of 40,724 contracts has been traded thus far today, a contract volume which is representative of approximately 4.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 109.3% of MRNA's average daily trading volume over the past month, of 3.7 million shares. Especially high volume was seen for the $140 strike put option expiring January 19, 2024, with 6,115 contracts trading so far today, representing approximately 611,500 underlying shares of MRNA. Below is a chart showing MRNA's trailing twelve month trading history, with the $140 strike highlighted in orange:
Apple Inc (Symbol: AAPL) options are showing a volume of 471,387 contracts thus far today. That number of contracts represents approximately 47.1 million underlying shares, working out to a sizeable 93.2% of AAPL's average daily trading volume over the past month, of 50.6 million shares. Particularly high volume was seen for the $190 strike call option expiring December 08, 2023, with 46,531 contracts trading so far today, representing approximately 4.7 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $190 strike highlighted in orange:
And Alphabet Inc (Symbol: GOOGL) options are showing a volume of 227,593 contracts thus far today. That number of contracts represents approximately 22.8 million underlying shares, working out to a sizeable 89.3% of GOOGL's average daily trading volume over the past month, of 25.5 million shares. Particularly high volume was seen for the $115 strike put option expiring March 15, 2024, with 25,377 contracts trading so far today, representing approximately 2.5 million underlying shares of GOOGL. Below is a chart showing GOOGL's trailing twelve month trading history, with the $115 strike highlighted in orange:
For the various different available expirations for MRNA options, AAPL options, or GOOGL 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. | Particularly high volume was seen for the $190 strike call option expiring December 08, 2023, with 46,531 contracts trading so far today, representing approximately 4.7 million underlying shares of AAPL. Below is a chart showing MRNA's trailing twelve month trading history, with the $140 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 471,387 contracts thus far today. That number of contracts represents approximately 47.1 million underlying shares, working out to a sizeable 93.2% of AAPL's average daily trading volume over the past month, of 50.6 million shares. | Below is a chart showing MRNA's trailing twelve month trading history, with the $140 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 471,387 contracts thus far today. That number of contracts represents approximately 47.1 million underlying shares, working out to a sizeable 93.2% of AAPL's average daily trading volume over the past month, of 50.6 million shares. Particularly high volume was seen for the $190 strike call option expiring December 08, 2023, with 46,531 contracts trading so far today, representing approximately 4.7 million underlying shares of AAPL. | That number of contracts represents approximately 47.1 million underlying shares, working out to a sizeable 93.2% of AAPL's average daily trading volume over the past month, of 50.6 million shares. Below is a chart showing MRNA's trailing twelve month trading history, with the $140 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 471,387 contracts thus far today. Particularly high volume was seen for the $190 strike call option expiring December 08, 2023, with 46,531 contracts trading so far today, representing approximately 4.7 million underlying shares of AAPL. | That number of contracts represents approximately 47.1 million underlying shares, working out to a sizeable 93.2% of AAPL's average daily trading volume over the past month, of 50.6 million shares. Below is a chart showing GOOGL's trailing twelve month trading history, with the $115 strike highlighted in orange: For the various different available expirations for MRNA options, AAPL options, or GOOGL options, visit StockOptionsChannel.com. Below is a chart showing MRNA's trailing twelve month trading history, with the $140 strike highlighted in orange: Apple Inc (Symbol: AAPL) options are showing a volume of 471,387 contracts thus far today. |
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12267.0 | 2023-12-04 00:00:00 UTC | Wall St rally loses steam as data-heavy week looms, yields rise | AAPL | https://www.nasdaq.com/articles/wall-st-rally-loses-steam-as-data-heavy-week-looms-yields-rise | By Amruta Khandekar and Shristi Achar A
Dec 4 (Reuters) - U.S. stocks fell on Monday after rallying the previous week, on caution ahead of a slew of economic data due this week that will likely put to test the narrative of the Federal Reserve cutting interest rates by early next year.
U.S. stocks kicked off December on an upbeat note, extending gains from the previous month that were driven by robust earnings and expectations that the Fed was done with its rate-hiking campaign.
The benchmark S&P 500 .SPXregistered its highest close of the year on Friday as remarks from Fed Chair Jerome Powell bolstered the peak rates view.
Pressuring equities on Monday were higher U.S. Treasury yields, which made returns on stocks less attractive.
Megacap names including Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O fell between 1.8% and 3.3%.
Shares of Alaska Air GroupALK.N dropped 15.8% after the carrier said on Sunday it would acquire peer Hawaiian Holdings HA.O for $1.9 billion, including debt. Hawaiian's shares nearly tripled in value.
Traders have priced in the likelihood that the central bank will keep rates unchanged next week, with about 58% betting on rate cuts starting as soon as March 2024, according to the CME Group's FedWatch tool.
However, some analysts have cautioned that markets have been too quick to price in lower interest rates.
"No one expects any more rate hikes at this point," said Joe Saluzzi, partner and co-founder at Themis Trading in Chatham, New Jersey.
"I don't see them cutting (rates) unless you start to see some really significant poor numbers coming into the economy, which we haven't seen yet."
Analysts have, however, alluded to the possibility of a Santa Claus rally as equities rebound from a likely mid-December low due to tax loss harvesting - a process in which investors sell underperforming stocks to lock in tax benefits.
A number of economic reports through the week, including November's non-farm payrolls reporton Friday, will provide a gauge on the interest rate path as well as the potential for a "soft landing" - where the Fed manages to bring inflation under control, while averting a recession.
Adding to declines on Monday were renewed fears about a widening of the war between Israel and Hamas after an attack on three commercial vessels in the southern Red Sea.
Shares of cryptocurrency firms such as Coinbase Global COIN.O, Riot Platforms RIOT.O and Marathon Digital MARA.O rose between 4.9% and 6.3%, as bitcoin crossed $40,000 for the first time this year.
Declining issues outnumbered advancers for a 1.42-to-1 ratio on the NYSE and a 1.06-to-1 ratio on the Nasdaq.
The S&P 500 in 2023 https://tmsnrt.rs/419uFPq
(Reporting by Amruta Khandekar and Shristi Achar A; Editing by Anil D'Silva and Pooja Desai)
(([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. | Megacap names including Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O fell between 1.8% and 3.3%. U.S. stocks kicked off December on an upbeat note, extending gains from the previous month that were driven by robust earnings and expectations that the Fed was done with its rate-hiking campaign. A number of economic reports through the week, including November's non-farm payrolls reporton Friday, will provide a gauge on the interest rate path as well as the potential for a "soft landing" - where the Fed manages to bring inflation under control, while averting a recession. | Megacap names including Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O fell between 1.8% and 3.3%. By Amruta Khandekar and Shristi Achar A Dec 4 (Reuters) - U.S. stocks fell on Monday after rallying the previous week, on caution ahead of a slew of economic data due this week that will likely put to test the narrative of the Federal Reserve cutting interest rates by early next year. A number of economic reports through the week, including November's non-farm payrolls reporton Friday, will provide a gauge on the interest rate path as well as the potential for a "soft landing" - where the Fed manages to bring inflation under control, while averting a recession. | Megacap names including Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O fell between 1.8% and 3.3%. By Amruta Khandekar and Shristi Achar A Dec 4 (Reuters) - U.S. stocks fell on Monday after rallying the previous week, on caution ahead of a slew of economic data due this week that will likely put to test the narrative of the Federal Reserve cutting interest rates by early next year. Traders have priced in the likelihood that the central bank will keep rates unchanged next week, with about 58% betting on rate cuts starting as soon as March 2024, according to the CME Group's FedWatch tool. | Megacap names including Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O fell between 1.8% and 3.3%. By Amruta Khandekar and Shristi Achar A Dec 4 (Reuters) - U.S. stocks fell on Monday after rallying the previous week, on caution ahead of a slew of economic data due this week that will likely put to test the narrative of the Federal Reserve cutting interest rates by early next year. U.S. stocks kicked off December on an upbeat note, extending gains from the previous month that were driven by robust earnings and expectations that the Fed was done with its rate-hiking campaign. |
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12268.0 | 2023-12-04 00:00:00 UTC | US STOCKS-Wall St rally loses steam as data-heavy week looms, yields rise | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-st-rally-loses-steam-as-data-heavy-week-looms-yields-rise | By Amruta Khandekar and Shristi Achar A
Dec 4 (Reuters) - Wall Street's main indexes fell on Monday, as investors remained cautious ahead of a slew of economic data this week that is likely to test the narrative about a cut in interest rates by the Federal Reserve early next year.
U.S. stocks kicked off December on an upbeat note, extending gains from the previous month that were driven by robust earnings and expectations that the Fed was done with its rate hiking campaign.
The benchmark S&P 500 .SPXregistered its highest close of the year on Friday as remarks from Fed Chair Jerome Powell bolstered the peak rates view.
Pressuring equities on Monday were higher U.S. Treasury yields, which made returns on stocks less attractive.
Megacap names including Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O fell between 0.7% and 2.6%.
Traders have priced in the likelihood that the central bank will keep rates unchanged next week, with about 59% betting on rate cuts starting as soon as March 2024, according to the CME Group's FedWatch tool.
However, some analysts have cautioned that markets have been too quick to price in lower interest rates.
"It's probably going to be more like the third quarter, because the Fed has told us multiple times that it'll be high for longer and wants to make sure that inflation truly has been strangled," said Sam Stovall, chief investment strategist at CFRA Research in New York, referring to the timing of the first rate cut.
However, Stovall said a Santa Claus rally is still possible as equities rebound from a likely mid-December low due to tax loss harvesting - a process in which investors sell underperforming stocks to lock in tax benefits.
A number of economic reports through the week will provide a gauge on the interest rate path as well as the potential for a "soft landing" - where the Fed manages to bring inflation under control, while averting a recession.
Investors are awaiting readings on U.S. services sector activity and a survey on job openings, while November's non-farm payrolls report is set to grab the spotlight on Friday.
Adding to declines on Monday were renewed fears about a widening of the war between Israel and Hamas after an attack on three commercial vessels in the southern Red Sea.
Shares of Alaska Air GroupALK.N dropped 17.1% after the carrier said on Sunday it would acquire peer Hawaiian Holdings HA.O for $1.9 billion, including debt. Hawaiian's shares nearly tripled in value.
Shares of cryptocurrency firms such as Coinbase Global COIN.O, Riot Platforms RIOT.O and Marathon Digital MARA.O rose between 6% and 13%, as bitcoin crossed $40,000 for the first time this year.
Declining issues outnumbered advancers for a 1.72-to-1 ratio on the NYSE. Advancing issues outnumbered decliners by a 1.07-to-1 ratio on the Nasdaq.
The S&P index recorded eight new 52-week highs and no new lows, while the Nasdaq recorded 46 new highs and 17 new lows.
The S&P 500 in 2023 https://tmsnrt.rs/419uFPq
(Reporting by Amruta Khandekar and Shristi Achar A; Editing by Anil D'Silva and Pooja Desai)
(([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. | Megacap names including Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O fell between 0.7% and 2.6%. By Amruta Khandekar and Shristi Achar A Dec 4 (Reuters) - Wall Street's main indexes fell on Monday, as investors remained cautious ahead of a slew of economic data this week that is likely to test the narrative about a cut in interest rates by the Federal Reserve early next year. A number of economic reports through the week will provide a gauge on the interest rate path as well as the potential for a "soft landing" - where the Fed manages to bring inflation under control, while averting a recession. | Megacap names including Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O fell between 0.7% and 2.6%. Declining issues outnumbered advancers for a 1.72-to-1 ratio on the NYSE. Advancing issues outnumbered decliners by a 1.07-to-1 ratio on the Nasdaq. | Megacap names including Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O fell between 0.7% and 2.6%. By Amruta Khandekar and Shristi Achar A Dec 4 (Reuters) - Wall Street's main indexes fell on Monday, as investors remained cautious ahead of a slew of economic data this week that is likely to test the narrative about a cut in interest rates by the Federal Reserve early next year. "It's probably going to be more like the third quarter, because the Fed has told us multiple times that it'll be high for longer and wants to make sure that inflation truly has been strangled," said Sam Stovall, chief investment strategist at CFRA Research in New York, referring to the timing of the first rate cut. | Megacap names including Nvidia NVDA.O, Meta Platforms META.O and Apple AAPL.O fell between 0.7% and 2.6%. By Amruta Khandekar and Shristi Achar A Dec 4 (Reuters) - Wall Street's main indexes fell on Monday, as investors remained cautious ahead of a slew of economic data this week that is likely to test the narrative about a cut in interest rates by the Federal Reserve early next year. U.S. stocks kicked off December on an upbeat note, extending gains from the previous month that were driven by robust earnings and expectations that the Fed was done with its rate hiking campaign. |
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12269.0 | 2023-12-04 00:00:00 UTC | 2 Reasons to Buy Apple Stock Like There's No Tomorrow | AAPL | https://www.nasdaq.com/articles/2-reasons-to-buy-apple-stock-like-theres-no-tomorrow | It hasn't been an easy year for Apple (NASDAQ: AAPL), with macroeconomic headwinds curbing spending across the consumer tech sector. Poor market conditions caused repeated declines in Apple's product segments, with revenue tumbling 3% year over year in its fiscal 2023. Yet despite the challenges, the company's stock has risen 45% year to date.
Investors have largely stayed loyal to the iPhone manufacturer as its history of reliability and sustained dominance in tech has overshadowed recent challenges. Their devotion to the tech giant is not unfounded, with Apple continuing to outperform the competition and delivering an impressive balance sheet.
With nearly $100 billion in free cash flow and $162 billion in cash and marketable securities in 2023, Apple has the funds to overcome temporary headwinds and continue investing in its business. The tech giant is a reliable buy, with the company likely to flourish over the long term.
Here are two excellent reasons to buy Apple stock now.
1. It's been outperforming the competition
As the world's most valuable company with a market capitalization close to $3 trillion, Apple has a long history of outperforming its peers. This chart shows how Apple's stock has delivered significantly more growth over the past five years than some of its biggest competitors.
Data by YCharts
Apple has benefited from immense brand loyalty, developing a strategic ecosystem for its products that keeps consumers coming back. In April, Warren Buffett said, "If someone offered you $10,000 to never buy an iPhone again, you wouldn't take it." While surprising, the sentiment rings true for millions of consumers who would sooner give up countless other brands before abandoning Apple.
The public's preference for Apple's devices has been particularly clear during recent market declines. Counterpoint Research shows smartphone shipments fell 19% year over year in Q3 2023, with Samsung and Alphabet's sales plunging 26% and 37%, respectively. Meanwhile, Apple's iPhone shipments decreased a much more moderate 11%, allowing it to retain its majority market share.
Apple's business has proved vulnerable to economic declines this year, but its dominance in tech means it has much to gain from the market's inevitable recovery.
2. It's home to a highly profitable services business
While Apple waits for the tech market to bounce back, it is benefiting from consistent gains in its services segment. The digital business includes income from the App Store and subscription platforms like Apple TV+, Music, and iCloud.
Services have blown up in recent years, becoming Apple's second-highest-earning segment after the iPhone and delivering attractive profit margins of 70%. By comparison, products' profit margins hover around 36%.
Moreover, services have proven far less vulnerable to economic fluctuation, with the segment's revenue rising 9% year over year in fiscal 2023 while iPhone net sales tumbled 2%. So it's not surprising that Apple is increasing the priority it places on digital offerings as it works to strengthen its business over the long term and lean less on product sales.
In addition to a wide range of subscription services, the company is heavily investing in artificial intelligence (AI). Apple's research and development spending increased by over $3 billion in 2023, with CEO Tim Cook attributing the rise to a more significant focus on generative AI.
The tech giant has reportedly developed an AI chatbot and is gradually bringing AI upgrades across its product lineup. Apple might not be as far into its AI journey as companies like Microsoft and Alphabet, but I wouldn't count it out over the long term.
Apple is known for slightly hanging back when it comes to new technology, learning from the mistakes of its competitors and then making big waves with the release of a polished product. As demand for AI services rises, Apple is well-positioned to become a major player in the market by utilizing the popularity of its products to attract billions of users to its AI offerings.
Apple's history of reliability, promising balance sheet, and growing services business make the company's stock an attractive investment right now and one to buy like there's no tomorrow.
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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. | It hasn't been an easy year for Apple (NASDAQ: AAPL), with macroeconomic headwinds curbing spending across the consumer tech sector. So it's not surprising that Apple is increasing the priority it places on digital offerings as it works to strengthen its business over the long term and lean less on product sales. Apple is known for slightly hanging back when it comes to new technology, learning from the mistakes of its competitors and then making big waves with the release of a polished product. | It hasn't been an easy year for Apple (NASDAQ: AAPL), with macroeconomic headwinds curbing spending across the consumer tech sector. Services have blown up in recent years, becoming Apple's second-highest-earning segment after the iPhone and delivering attractive profit margins of 70%. Moreover, services have proven far less vulnerable to economic fluctuation, with the segment's revenue rising 9% year over year in fiscal 2023 while iPhone net sales tumbled 2%. | It hasn't been an easy year for Apple (NASDAQ: AAPL), with macroeconomic headwinds curbing spending across the consumer tech sector. Poor market conditions caused repeated declines in Apple's product segments, with revenue tumbling 3% year over year in its fiscal 2023. As demand for AI services rises, Apple is well-positioned to become a major player in the market by utilizing the popularity of its products to attract billions of users to its AI offerings. | It hasn't been an easy year for Apple (NASDAQ: AAPL), with macroeconomic headwinds curbing spending across the consumer tech sector. Services have blown up in recent years, becoming Apple's second-highest-earning segment after the iPhone and delivering attractive profit margins of 70%. As demand for AI services rises, Apple is well-positioned to become a major player in the market by utilizing the popularity of its products to attract billions of users to its AI offerings. |
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12270.0 | 2023-12-04 00:00:00 UTC | 3 Stocks You Can Confidently Buy After a Market Downturn | AAPL | https://www.nasdaq.com/articles/3-stocks-you-can-confidently-buy-after-a-market-downturn-8 | The 2023 year will soon close, which is a shame. It's been a great year for Wall Street, with the major indexes near their all-time highs. Everyone likes to see stock prices increase, but it can also mean that things are getting a little expensive for their own good.
Eventually, there's a good chance the market will take a step back, which can be scary for investors but is healthy for markets in the long run. When the time comes, it's an opportunity to go after great stocks that are too expensive today. Here are three stocks you can confidently buy after a downturn.
1. Apple
Personal electronics giant Apple (NASDAQ: AAPL) needs little introduction, considering it's one of the world's best-known brands. The iPhone maker's size is staggering; its $380 billion annual revenue dwarfs other countries' economies, and its $100 billion in annual free cash flow is more than most companies do in sales.
Apple has proven its branding power over time. Consumers routinely buy its hardware and upgrade to a newer version every few years. Today, nearly 1.5 billion people are actively using iOS devices worldwide. Along with devices, consumers buy accessories and sticky subscription services that create recurring revenue streams.
However, Apple's growth can fluctuate between major iPhone updates, and its tremendous size can make it harder to grow. Analysts believe Apple's earnings will increase by 11% annually over the next three to five years, but the stock still trades at a forward P/E of nearly 29. Its 2.6 PEG ratio signals the stock is a bit rich for the growth you'll likely see, making Apple an outstanding stock to reevaluate when the price comes down.
2. Advanced Micro Devices
Artificial intelligence (AI) is the story of 2023, and the hype seems justified. Researchers believe the global AI market can grow 19% annually over the next decade, crossing $2.5 trillion by 2032. That's a lot of opportunity for chipmakers like Advanced Micro Devices (NASDAQ: AMD), whose chips are the building blocks that power the highly demanding computing loads that AI models create.
Thus far, AMD hasn't delivered eye-popping growth numbers like Nvidia has. Third-quarter data center sales were flat year-over-year because declines in other end markets offset growth in AI applications. But AMD's MI300 AI chip could compete with Nvidia and begin driving growth in 2024 and beyond. That could lift AMD's performance above analysts' modest expectations, which currently call for earnings growth averaging 10% annually over the coming years.
However, investors should think twice before buying AMD today. With the shares trading at a forward P/E of 46, Wall Street has possibly already priced in AMD's upside. Currently, AMD's outperformance in the future would only validate the early buying, while disappointment will likely bring the valuation back down. There's no margin of safety here, so wait for a better entry point before sinking your teeth into these shares.
3. Shopify
Competing in e-commerce with Amazon and Walmart is hard, so businesses are going to software company Shopify (NYSE: SHOP) for help. Shopify sells turnkey software tools to help merchants of any size establish and manage an online store. Collectively, millions of smaller merchants add up to give Shopify a significant retail footprint. Shopify merchants collectively did $56 billion in Q3 sales, compared to $63 billion for Amazon.
As a software company, Shopify is quickly becoming profitable as it grows. The company converted 16% of its revenue to free cash flow in Q3, and generally accepted accounting principles (GAAP) earnings per share (EPS) should begin following along as revenue growth increasingly outruns costs. Analysts believe the company's earnings will nearly double annually moving forward. That's great news for a company with significant growth opportunities still ahead. E-commerce is still just 15% of retail in America.
It would be an excellent setup for substantial investment returns except that the stock's valuation is a bit high after shares ran up by 58% in the past month. Even with such high earnings growth, the stock's forward P/E of 136 means that Shopify could go nowhere for a year and still trade at more than 65 times earnings next year. Shopify is a proven winner with tread left on the tires, but investors should wait for market volatility to decrease the price.
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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 Advanced Micro Devices, Amazon, Apple, Nvidia, Shopify, and Walmart. 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 Personal electronics giant Apple (NASDAQ: AAPL) needs little introduction, considering it's one of the world's best-known brands. That's a lot of opportunity for chipmakers like Advanced Micro Devices (NASDAQ: AMD), whose chips are the building blocks that power the highly demanding computing loads that AI models create. That could lift AMD's performance above analysts' modest expectations, which currently call for earnings growth averaging 10% annually over the coming years. | Apple Personal electronics giant Apple (NASDAQ: AAPL) needs little introduction, considering it's one of the world's best-known brands. That's a lot of opportunity for chipmakers like Advanced Micro Devices (NASDAQ: AMD), whose chips are the building blocks that power the highly demanding computing loads that AI models create. But AMD's MI300 AI chip could compete with Nvidia and begin driving growth in 2024 and beyond. | Apple Personal electronics giant Apple (NASDAQ: AAPL) needs little introduction, considering it's one of the world's best-known brands. Analysts believe Apple's earnings will increase by 11% annually over the next three to five years, but the stock still trades at a forward P/E of nearly 29. Its 2.6 PEG ratio signals the stock is a bit rich for the growth you'll likely see, making Apple an outstanding stock to reevaluate when the price comes down. | Apple Personal electronics giant Apple (NASDAQ: AAPL) needs little introduction, considering it's one of the world's best-known brands. However, investors should think twice before buying AMD today. That's right -- they think these 10 stocks are even better buys. |
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12271.0 | 2023-12-04 00:00:00 UTC | US STOCKS-Wall Street slides from recent highs as megacaps weigh | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-slides-from-recent-highs-as-megacaps-weigh | By Noel Randewich and Shristi Achar A
Dec 4 (Reuters) - U.S. stocks dipped from recent highs on Monday, with investors turning cautious ahead of employment data due this week that could alter expectations that the Federal Reserve will cut interest rates early next year.
All three major indexes receded, with megacaps Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon AMZN.O dropping between 1% and 3%, pressured by higher U.S. Treasury yields, which made returns on stocks less attractive.
The S&P 500 .SPXregistered its highest close of the year on Friday as remarks from Fed Chair Jerome Powell acknowledged the central bank's need to "move forward carefully" amid signs of economic softening, comments that bolstered expectations the Fed has finished raising rates.
Small-cap stocks rose on Monday, with the Russell 2000 .RUT up 0.65%, bringing its gain this year to over 6%, far less than the S&P 500's 19% recovery over the same period.
"There is a lot of chop around here that is not necessarily meaningful," said Tom Martin, a senior portfolio manager at GLOBALT Investments in Atlanta.
"We have a really important Fed meeting coming up, and what makes it important is that all of a sudden, the market has decided that they're going to cut early next year."
Ride-hailing service Uber Technologies UBER.N rallied 3.4% after an announcement on Friday it will join the S&P 500 effective Dec. 18.
Shares of Alaska Air GroupALK.N tumbled 15% after the carrier said on Sunday it would acquire peer Hawaiian Holdings HA.O for $1.9 billion, including debt. Hawaiian's shares nearly tripled in value, helping lift the Russel index.
Traders widely expect the central bank will keep rates unchanged at its meeting next week. Interest rate futures suggest a 58% probability the Fed will start cutting rates by March 2024, according to the CME Group's FedWatch tool.
However, some analysts warn that markets have been too quick to price in lower interest rates.
Of the 11 S&P 500 sector indexes, seven declined, led lower by communication services .SPLRCL, down 1.7%, followed by a 1.55% loss in information technology .SPLRCT.
The S&P 500 was down 0.70% at 4,562.68 points.
The Nasdaq declined 1.09% to 14,149.33 points, while the Dow Jones Industrial Average was down 0.20% at 36,172.89 points.
Adding to declines on Monday were renewed fears about a widening of the war between Israel and Gaza after an attack on three commercial vessels in the southern Red Sea.
Shares of cryptocurrency firms such as Coinbase Global COIN.O, Riot Platforms RIOT.O and Marathon Digital MARA.O rallied over 7% as bitcoin crossed $40,000 for the first time this year.
Declining stocks outnumbered rising ones within the S&P 500 .AD.SPX by a 1.2-to-one ratio.
The S&P 500 posted 38 new highs and no new lows; the Nasdaq recorded 107 new highs and 53 new lows.
S&P 500 trades https://tmsnrt.rs/3t1xDsM
(Reporting by Amruta Khandekar and Shristi Achar A in Bangalore, and by Noel Randewich in Oakland, Calif.; Editing by Anil D'Silva, Pooja Desai and Aurora Ellis)
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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. | All three major indexes receded, with megacaps Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon AMZN.O dropping between 1% and 3%, pressured by higher U.S. Treasury yields, which made returns on stocks less attractive. By Noel Randewich and Shristi Achar A Dec 4 (Reuters) - U.S. stocks dipped from recent highs on Monday, with investors turning cautious ahead of employment data due this week that could alter expectations that the Federal Reserve will cut interest rates early next year. Adding to declines on Monday were renewed fears about a widening of the war between Israel and Gaza after an attack on three commercial vessels in the southern Red Sea. | All three major indexes receded, with megacaps Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon AMZN.O dropping between 1% and 3%, pressured by higher U.S. Treasury yields, which made returns on stocks less attractive. By Noel Randewich and Shristi Achar A Dec 4 (Reuters) - U.S. stocks dipped from recent highs on Monday, with investors turning cautious ahead of employment data due this week that could alter expectations that the Federal Reserve will cut interest rates early next year. "We have a really important Fed meeting coming up, and what makes it important is that all of a sudden, the market has decided that they're going to cut early next year." | All three major indexes receded, with megacaps Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon AMZN.O dropping between 1% and 3%, pressured by higher U.S. Treasury yields, which made returns on stocks less attractive. By Noel Randewich and Shristi Achar A Dec 4 (Reuters) - U.S. stocks dipped from recent highs on Monday, with investors turning cautious ahead of employment data due this week that could alter expectations that the Federal Reserve will cut interest rates early next year. The S&P 500 .SPXregistered its highest close of the year on Friday as remarks from Fed Chair Jerome Powell acknowledged the central bank's need to "move forward carefully" amid signs of economic softening, comments that bolstered expectations the Fed has finished raising rates. | All three major indexes receded, with megacaps Microsoft MSFT.O, Apple AAPL.O, Nvidia NVDA.O and Amazon AMZN.O dropping between 1% and 3%, pressured by higher U.S. Treasury yields, which made returns on stocks less attractive. By Noel Randewich and Shristi Achar A Dec 4 (Reuters) - U.S. stocks dipped from recent highs on Monday, with investors turning cautious ahead of employment data due this week that could alter expectations that the Federal Reserve will cut interest rates early next year. Hawaiian's shares nearly tripled in value, helping lift the Russel index. |
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12272.0 | 2023-12-04 00:00:00 UTC | ANALYSIS-‘Lovin’ it’: McDonald’s raises China bet, bucking Western firms' derisking trend | AAPL | https://www.nasdaq.com/articles/analysis-lovin-it%3A-mcdonalds-raises-china-bet-bucking-western-firms-derisking-trend-0 | By Casey Hall
SHANGHAI, Dec 4 (Reuters) - The decision by McDonald's MCD.N to take greater control of its China business and expand aggressively in the face of a consumer slowdown and geopolitical tensions seems risky - but the potential pay-off is great, analysts say.
Last month, the U.S.-based burger maker cut a deal to repurchase the 28% stake in its China business Carlyle Group took in 2017, giving it a 48% share in $6 billion worth of operations that include Hong Kong and Macau.
The move contrasts sharply with the prevailing trend of multinational corporations reeling back investments in China or even exiting altogether because of geopolitical and economic challenges.
One advantage for McDonald’s: its majority partner in the China business, CITIC, provides top-level political cover, said Jason Yu, greater China managing director of market research firm Kantar Worldpanel.
"Having a very powerful Chinese state-owned conglomerate as a partner means they are not going to be at the forefront of the geopolitical situation; that is quite important," Yu said.
McDonald's China, Carlyle Group and CITIC declined to comment.
Other consumer-facing U.S. firms, including Starbucks SBUX.O, Apple AAPL.O, Coach owner Tapestry TPR.N and sportswear giant Nike NKE.N, have remained similarly dedicated to the China market.
Starbucks and Nike, which face increased competition from lower-priced domestic competitors, show the need to stay agile in order to protect and grow market share, analysts say.
The coffee giant is sticking with expansion plans and launched a smaller cup size; Nike, by contrast, has offered localised, higher-end sneakers such as its "Year of the Rabbit" Dunk Lows.
McDonald’s has used funds from the Carlyle investment to double its restaurant count since 2017 to 5,500, and the country has become its second-largest market. The business aims to have more than 10,000 stores in China by 2028.
Competitors of McDonald's are also expanding their reach in China.
Yum China, which operates KFC and Pizza Hut, among other brands, already has more than 14,000 stores across the country. Among domestic players, chicken burger specialist Wallace said in 2021 that it had reached 20,000 stores, and newer entrant Tastien, which specialises in "Chinese-style" burgers, has more than 3,500 stores.
To be sure, if relations between China and the West worsen, any optimism could evaporate, said Greg Halter, Director of Research at investment advisory firm Carnegie Investment Counsel.
"If tensions deteriorate, we may see not only McDonald's, but other companies divest their Chinese operations, similar to what has occurred in Russia over the past two years," Halter said.
Further digitalisation and localisation are needed, Yu said, with localisation key to winning over taste buds in China's $140.2 billion limited-service restaurant sector.
Although the McDonald's China menu would be familiar to U.S. consumers, there are nods to local tastes, including taro pie, rather than apple.
According to Euromonitor, the market value of limited-service restaurants in China is on track to grow about 4% annually on average through 2025. Of the limited-service burger-focussed restaurants in the country, McDonald's dominates with a 70% share of the market.
China's slowing economic growth and lacklustre consumer spending this year have already hurt the bottom lines of global businesses exposed to its consumer market, but McDonald's is well-placed to outperform, said Ben Cavender, the Shanghai-based managing director and head of strategy at China Market Research Group.
He said value-driven middle class consumers and lower commercial rents countrywide should be a boon to such businesses.
"If ever there was a time to double down on China, this is it," he said.
(Reporting by Casey Hall in Shanghai and Kane Wu in Hong Kong; additional reporting from Deborah Sophia in Bengaluru. Editing by Gerry Doyle)
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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. | Other consumer-facing U.S. firms, including Starbucks SBUX.O, Apple AAPL.O, Coach owner Tapestry TPR.N and sportswear giant Nike NKE.N, have remained similarly dedicated to the China market. By Casey Hall SHANGHAI, Dec 4 (Reuters) - The decision by McDonald's MCD.N to take greater control of its China business and expand aggressively in the face of a consumer slowdown and geopolitical tensions seems risky - but the potential pay-off is great, analysts say. Last month, the U.S.-based burger maker cut a deal to repurchase the 28% stake in its China business Carlyle Group took in 2017, giving it a 48% share in $6 billion worth of operations that include Hong Kong and Macau. | Other consumer-facing U.S. firms, including Starbucks SBUX.O, Apple AAPL.O, Coach owner Tapestry TPR.N and sportswear giant Nike NKE.N, have remained similarly dedicated to the China market. Last month, the U.S.-based burger maker cut a deal to repurchase the 28% stake in its China business Carlyle Group took in 2017, giving it a 48% share in $6 billion worth of operations that include Hong Kong and Macau. One advantage for McDonald’s: its majority partner in the China business, CITIC, provides top-level political cover, said Jason Yu, greater China managing director of market research firm Kantar Worldpanel. | Other consumer-facing U.S. firms, including Starbucks SBUX.O, Apple AAPL.O, Coach owner Tapestry TPR.N and sportswear giant Nike NKE.N, have remained similarly dedicated to the China market. By Casey Hall SHANGHAI, Dec 4 (Reuters) - The decision by McDonald's MCD.N to take greater control of its China business and expand aggressively in the face of a consumer slowdown and geopolitical tensions seems risky - but the potential pay-off is great, analysts say. One advantage for McDonald’s: its majority partner in the China business, CITIC, provides top-level political cover, said Jason Yu, greater China managing director of market research firm Kantar Worldpanel. | Other consumer-facing U.S. firms, including Starbucks SBUX.O, Apple AAPL.O, Coach owner Tapestry TPR.N and sportswear giant Nike NKE.N, have remained similarly dedicated to the China market. One advantage for McDonald’s: its majority partner in the China business, CITIC, provides top-level political cover, said Jason Yu, greater China managing director of market research firm Kantar Worldpanel. McDonald’s has used funds from the Carlyle investment to double its restaurant count since 2017 to 5,500, and the country has become its second-largest market. |
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12273.0 | 2023-12-04 00:00:00 UTC | 3 Dirt Cheap Stocks You'll Regret Not Buying Before the New Year | AAPL | https://www.nasdaq.com/articles/3-dirt-cheap-stocks-youll-regret-not-buying-before-the-new-year | Markets have rallied since the start of the year, climbing from last year's bear market low, and the three major indexes have even extended gains in recent weeks. This is great news, but it may make you wonder about the valuations of certain stocks -- and hesitate to buy. But here's more good news: There still are plenty of great deals out there, including among stocks that have rallied in recent times.
So, expand your holiday shopping and offer yourself a gift too. Add some of these stocks to your portfolio now, before they take off. Where to start? With three dirt cheap stocks -- leaders in their industries -- that you'll regret not buying before the new year.
Image source: Getty Images.
1. Carnival
Carnival (NYSE: CCL) (NYSE: CUK) shares have climbed 95% this year, but they're still trading way below their pre-pandemic levels. At the same time, the world's biggest cruise operator has increased revenue, even reaching records, and has transformed itself into a more efficient business -- favoring long-term profitability.
Things weren't easy for Carnival at the start of the health crisis since it was forced to halt sailings -- and debt ballooned so the company could stay afloat. But Carnival has been managing its recovery well, with efforts such as cutting down on fuel costs and maximizing opportunities for guests to spend more on board ship. Meanwhile, demand for cruising has returned in a big way, even amid the tough economic context -- this is a positive sign for demand and revenue moving forward.
Carnival's latest earnings reports offer us reason to be optimistic. In the most recent quarter, Carnival reported record revenue and total customer deposits reached a third-quarter record. As for debt, the company has paid down about $4 billion this year -- focusing on variable rate borrowings, which makes Carnival less sensitive to potential interest rate hikes. And this is thanks to the company's growing adjusted free cash flow. The trend should continue, offering Carnival the tools to continue tackling the debt problem.
Today, Carnival shares are trading near historical low levels -- at about 1x sales -- making now the perfect time to buy.
2. Moderna
Moderna (NASDAQ: MRNA) stock is heading for a 55% annual loss as investors shied away from this coronavirus vaccine giant. Their concern? Declining vaccine demand. We've already seen its impact on Moderna, with product sales falling 44% in the most recent quarter.
But here's why you shouldn't worry, and instead, add Moderna stock to your portfolio. It's important to take a long-term view, and here, things look extremely bright. Moderna aims to launch 15 new products over the coming five years. While this sounds pretty ambitious, what's encouraging is that even if Moderna only makes it part of the way to this goal, the company still could deliver impressive revenue.
And if Moderna does reach its goal, the company forecasts revenue of as much as $30 billion a few years following the launches.
Why should we be optimistic about Moderna launching so many products? The company already has brought many candidates into late-stage development, meaning it's passed certain key safety and efficacy hurdles. Regulators should decide on its closest-to-market candidate -- a respiratory syncytial virus (RSV) vaccine -- early next year.
Finally, though coronavirus vaccine demand has declined, the product still could continue to deliver billion-dollar revenue as part of the population goes for annual vaccination. Recurrent revenue is something to cheer about, and another reason to like this biotech stock.
3. Apple
Apple (NASDAQ: AAPL) is such an enormous presence in our world that when we think of the word "apple" we probably think of the iPhone before we think of the piece of fruit. And this leads me to the first reason why you should consider this company: its moat, or competitive advantage.
In the case of Apple, the moat is the company's brand. Apple fans are known for sticking with their favorite products. This is great because, first, it offers us visibility on future revenue, and second, it offers Apple pricing power. This means Apple can raise prices without worrying about losing sales.
On top of this, Apple continues to add new customers, with about half of Mac and iPad buyers being new to the products in the most recent quarter. So, Apple not only has a solid loyal base of customers, but it's also continuing to grow its audience. That's the perfect combination.
I also like the fact that these customers are resulting in recurring revenue for Apple thanks to the wide variety of services the company offers to subscribers. I'm talking about everything from digital content to payment services. We're seeing that this revenue stream is growing significantly, with services revenue reaching a record in the most recent quarter.
Meanwhile, Apple shares trade for about 29 times forward earnings estimates -- a cheap price to pay for Apple's longtime market strength and future prospects.
10 stocks we like better than Carnival Corp.
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Carnival Corp. and Moderna. 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 such an enormous presence in our world that when we think of the word "apple" we probably think of the iPhone before we think of the piece of fruit. At the same time, the world's biggest cruise operator has increased revenue, even reaching records, and has transformed itself into a more efficient business -- favoring long-term profitability. Things weren't easy for Carnival at the start of the health crisis since it was forced to halt sailings -- and debt ballooned so the company could stay afloat. | Apple Apple (NASDAQ: AAPL) is such an enormous presence in our world that when we think of the word "apple" we probably think of the iPhone before we think of the piece of fruit. In the most recent quarter, Carnival reported record revenue and total customer deposits reached a third-quarter record. Today, Carnival shares are trading near historical low levels -- at about 1x sales -- making now the perfect time to buy. | Apple Apple (NASDAQ: AAPL) is such an enormous presence in our world that when we think of the word "apple" we probably think of the iPhone before we think of the piece of fruit. And if Moderna does reach its goal, the company forecasts revenue of as much as $30 billion a few years following the launches. I also like the fact that these customers are resulting in recurring revenue for Apple thanks to the wide variety of services the company offers to subscribers. | Apple Apple (NASDAQ: AAPL) is such an enormous presence in our world that when we think of the word "apple" we probably think of the iPhone before we think of the piece of fruit. And if Moderna does reach its goal, the company forecasts revenue of as much as $30 billion a few years following the launches. We're seeing that this revenue stream is growing significantly, with services revenue reaching a record in the most recent quarter. |
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12274.0 | 2023-12-04 00:00:00 UTC | 7 Dividend Stocks That Will Warm Your Heart This Winter | AAPL | https://www.nasdaq.com/articles/7-dividend-stocks-that-will-warm-your-heart-this-winter | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Temperatures are getting lower, at least in most of the United States. The Farmer’s Almanac predicts above-average snowfall for much of the U.S. and colder-than-normal weather. There will be many days, it seems, where the best thing you’ll be able to do is sit by a fire and bask in the warmth of your dividend stocks.
Nothing warms my heart like solid dividend stocks providing a good return. Dividend stocks are some of the best investments you can make because they have the potential to pay you twice.
First, a good dividend stock should make money because it’s a solid company with a good product, solid earnings, growing profits and revenue and a rosy outlook. Put those attributes together; you’ll often have a stock that beats the market.
The second way a dividend pays you is with its regular payout. Most dividend stocks pay monthly or quarterly; those payouts are icing on the cake for income investors. You can either use the payout as income or reinvest it to grow your position even faster.
While there are plenty of solid dividend stocks out there, I particularly like the names on this list. All of them have great ratings in my Portfolio Grader tool. And they should all help you escape the winter chill.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) is an extraordinary company, and the biggest in the world by market cap, valued at nearly $3 trillion. It has a powerful smartphone market position with over 1 billion customers. It makes fabulous wearable products, top-of-the-line desktop computers, tablets and wearable devices.
You must also love Apple’s Services division, which includes high-profit centers like the App Store. The Services segment brought in $22.31 billion in revenue in the fiscal fourth quarter of 2023, or more than a quarter of the company’s total revenue of $89.5 billion.
While overall sales dropped for four consecutive quarters thanks to weakness in iPad and Mac sales, management believes that those numbers will rebound thanks to its new M3 chips that are expected to trigger more sales.
AAPL stock is up 46% this year and it has a dividend yield of 0.5%. It gets a “B” rating in both the Portfolio Grader and the Dividend Grader.
Visa (V)
Source: Kikinunchi / Shutterstock.com
Visa (NYSE:V) is one of the top fintech companies out there, with a dominant position in the credit card and debit card space. Visa is an indispensable middleman between buyers and sellers, facilitating over 192 billion transactions in 2022 in over 160 countries.
That leads to massive profits for Visa and its shareholders. The company brought in $8.6 billion in revenue in the fiscal fourth quarter of 2023, up 11% from a year ago. Income of $4.7 billion resulted in earnings of $2.27 per share.
While some economists predict that a recession could be around the corner, the U.S. economy remains resilient. The U.S. economy grew by 5.2% in the third quarter, and the holiday shopping season appears to start strongly.
V stock is up 24% this year and pays a dividend yield of 0.8%. It has an “A” rating in the Dividend Grader and a “B” rating in the Portfolio Grader.
Walmart (WMT)
Source: fotomak / Shutterstock.com
Walmart (NYSE:WMT) is a blue-chip retail stock that’s hard to ignore. The company has over 10,500 locations worldwide with sales last year of more than $600 billion.
The world’s biggest retailer is in a dominant position. By expanding into the grocery space a few years ago Walmart is recession-proof. Customers will always get bread and milk, even when big-ticket items are out of their reach.
Walmart also does a better job than many other retailers in offering lower prices because its sheer size allows it to negotiate lower prices from suppliers.
Revenue for the third quarter included revenue of $160.8 billion, up 5.2% from a year ago. Comparable sales in the U.S. were up 4.9%, and e-commerce sales were up 24% from a year ago.
WMT stock appears set for a massive holiday shopping season. The stock is up 9% this year and it offers a dividend yield of 1.5%. Walmart gets “B” ratings in the Dividend Grader and the Portfolio Grader.
Broadcom (AVGO)
Source: Sasima / Shutterstock.com
Broadcom (NASDAQ:AVGO) is a top designer of semiconductor products to support data centers, networking, software, broadband, wireless, storage, and industrial applications.
Broadcom recently closed its long-awaited deal to acquire cloud-computing company VMWare, a software services company emphasizing cybersecurity and cloud computing. The deal will allow Broadcom to improve private and multi-cloud capabilities for its customers.
As data centers and cloud computing continue to grow in importance, Broadcom is positioning itself in a prime position to capitalize for years down the road. Broadcom reported third-quarter revenue of $8.87 billion in the third quarter, and is forecasting Q4 revenue of $9.27 billion.
AVGO stock is up 65% this year and pays a dividend yield of 2%. It gets “A” rating in the Portfolio Grader and the Dividend Grader.
Lennar (LEN)
Source: madamF via Shutterstock
Lennar (NYSE:LEN) is a diversified real estate company that builds homes, operates apartment rental communities and provides mortgage, title and insurance services.
Rising interest rates are taking a toll on Lennar’s earnings, unsurprisingly. Third-quarter earnings were down from $1.5 billion a year ago to $1.1 billion this year. The average sale price for a new home fell from $500,000 to $448,000. Revenue dropped from $8.8 billion to $8.7 billion.
But even against that backdrop, LEN stock is having a good year. The stock price is up over 40% in 2023 as Lennar works to improve the balance sheet by repaying $475 million in debt. Lennar now has $3.9 billion cash on hand against $2.6 billion debt, putting it in a strong position.
Lennar also repurchased $366 million in stock in the third quarter while paying a dividend yield of 1.2%
This strengthens Lennar and makes it an appealing stock for when the housing market improves. LEN gets “B” ratings in the Portfolio Grader and the Dividend Grader.
D.R. Horton (DHI)
Source: Casimiro PT / Shutterstock.com
D.R. Horton (NYSE:DHI) is the largest homebuilder in the United States. It operates in 33 states and 118 markets, building everything from starter homes to luxury properties.
The company appears to be in an enviable position. The Federal Reserve’s cycle of rapid interest rate hikes appears to be slowing. And many markets across the country are reporting housing shortages.
And D.R. Horton’s market share for houses that sell is soaring. The company says that it accounted for 89,092 closings in the fiscal 2023 year (ending Sept. 30), or nearly 14% of all home sales in the U.S.
D.R. Horton also has a rapidly growing rental operation, with revenues from single-family rental properties increasing from $313.8 million in 2022 to $2.01 billion in 2023.
DHI stock is up 43% in 2023 and provides a dividend yield of 1%. It gets a “B” rating in the Dividend Grader and an “A” rating in the Portfolio Grader.
Mastercard (MA)
Source: Alexander Yakimov / Shutterstock.com
Mastercard (NYSE:MA) is Visa’s top competitor. Both companies are profiting from how people handle money today, or, more specifically, how they don’t handle money.
More than ever, today is a cashless society as people are less inclined to carry cash and more willing to use their credit or debit cards for everyday transactions.
Using Mastercard is easier than ever, as most vendors provide methods for swiping or tapping a card. And Mastercard gets a tiny portion of each of those transactions.
All those little transactions add up. Revenue in the third quarter was $6.5 billion, up from $5.8 billion a year ago. Operating income rose from $3.1 billion to $3.8 billion, and earnings per share rose from $2.58 a year ago to $3.39 now.
MA stock is up 19% this year and pays a dividend yield of 0.6%. It gets “B” ratings in the Dividend Grader and the Portfolio Grader.
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 7 Dividend Stocks That Will Warm Your Heart This Winter 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) is an extraordinary company, and the biggest in the world by market cap, valued at nearly $3 trillion. AAPL stock is up 46% this year and it has a dividend yield of 0.5%. Most dividend stocks pay monthly or quarterly; those payouts are icing on the cake for income investors. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is an extraordinary company, and the biggest in the world by market cap, valued at nearly $3 trillion. AAPL stock is up 46% this year and it has a dividend yield of 0.5%. First, a good dividend stock should make money because it’s a solid company with a good product, solid earnings, growing profits and revenue and a rosy outlook. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is an extraordinary company, and the biggest in the world by market cap, valued at nearly $3 trillion. AAPL stock is up 46% this year and it has a dividend yield of 0.5%. The Services segment brought in $22.31 billion in revenue in the fiscal fourth quarter of 2023, or more than a quarter of the company’s total revenue of $89.5 billion. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) is an extraordinary company, and the biggest in the world by market cap, valued at nearly $3 trillion. AAPL stock is up 46% this year and it has a dividend yield of 0.5%. Third-quarter earnings were down from $1.5 billion a year ago to $1.1 billion this year. |
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12275.0 | 2023-12-04 00:00:00 UTC | Buying Apple Stock Is a Smart Move, Only if This 1 Thing Happens | AAPL | https://www.nasdaq.com/articles/buying-apple-stock-is-a-smart-move-only-if-this-1-thing-happens | In the last five years, Apple (NASDAQ: AAPL) shares have soared 328%. This is a better gain than the overall market, which is impressive given the tech giant's massive size.
Even this year, this tech business has crushed the broader Nasdaq Composite Index. Investor optimism appears to have picked up a lot of steam lately.
But to be clear, buying this top FAANG stock right now doesn't look like a good idea unless this one thing happens. Here's something investors should think about.
Premium pricing
Apple is well-known for selling some of the most in-demand hardware products on the planet, like the iPhone, MacBook, and AirPods. These products have made Apple one of the most powerful brands, as well as one of the most profitable companies.
Most importantly, these hardware items possess pricing power. People seem to almost always be willing to pay for them. The average retail iPhone price is nearly $1,000.
Selling expensive merchandise agrees with the fact that Apple's share price also carries a premium price tag. After a monumental rise in the last few years, the stock currently trades at a price-to-earnings (P/E) ratio of 31. That's about a 50% premium to the S&P 500 and to Apple's trailing 10-year average valuation.
The current P/E multiple is the most obvious reason that investors should not buy the stock right now. Consequently, it only makes sense to add shares of Apple to your portfolio if the P/E ratio declines substantially.
No growth
Investors who pay the P/E of 31 right now should know exactly what they're buying. Apple's revenue in fiscal 2023 (ended Sept. 30) was down 2.8% year over year. Net income also declined by the same amount. Yet investors are being asked to pay a high valuation for shares.
I'm not trying to bash Apple. Without a doubt, this might be the most successful business of all time. I touched on its strong brand and popular products. What's more, services and software are continuing to become a bigger revenue and profit engine for the company, which can help drive margins up over time.
These non-hardware aspects of Apple's offerings also drive tremendous stickiness and loyalty from the customer base. Many companies wish they resonated with consumers the way that Apple does.
But I think there's one appropriate question to ask in this situation: What P/E multiple will Apple need to trade at for one to be comfortable buying the stock?
Based on the mature stage of the business, I'd have to say maybe a P/E of 20. Apple is currently posting zero growth and is registering falling sales and earnings. The stock last traded in this range in March 2020.
Now, should Apple somehow find ways to boost its top line over the next few years, then I'd be willing to pay a higher multiple. This could happen with a new game-changing product, like the rumored car. It could also happen with new software capabilities.
As things stand today, however, there's no way to predict these things with certainty. We have to use the facts in front of us. Unless the stock gets cheaper, this isn't a good setup for market-beating returns in the years ahead.
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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 the last five years, Apple (NASDAQ: AAPL) shares have soared 328%. Premium pricing Apple is well-known for selling some of the most in-demand hardware products on the planet, like the iPhone, MacBook, and AirPods. What's more, services and software are continuing to become a bigger revenue and profit engine for the company, which can help drive margins up over time. | In the last five years, Apple (NASDAQ: AAPL) shares have soared 328%. Selling expensive merchandise agrees with the fact that Apple's share price also carries a premium price tag. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Neil Patel and his clients have no position in any of the stocks mentioned. | In the last five years, Apple (NASDAQ: AAPL) shares have soared 328%. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! | In the last five years, Apple (NASDAQ: AAPL) shares have soared 328%. These products have made Apple one of the most powerful brands, as well as one of the most profitable companies. Selling expensive merchandise agrees with the fact that Apple's share price also carries a premium price tag. |
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12276.0 | 2023-12-04 00:00:00 UTC | Foxconn and Pegatron halt Indian iPhone output due to extreme weather -sources | AAPL | https://www.nasdaq.com/articles/foxconn-and-pegatron-halt-indian-iphone-output-due-to-extreme-weather-sources | Adds detail and background
BENGALURU, Dec 4 (Reuters) - Taiwan's Foxconn 2317.TW and Pegatron 4938.TW have halted production of Apple AAPL.O iPhones at their factories near Chennai in southern India because of heavy rains, sources close to the matter said on Monday.
In Tamil Nadu capital Chennai, the state's largest city and a major electronics and manufacturing hub, at least two people died and the runway of one of country's busiest airports was submerged after torrential rain as the city braced for a severe cyclone expected to hit in the next 24 hours.
Foxconn, which employs about 35,000 people at its Tamil Nadu iPhone factory, has yet to decide whether to resume production on Tuesday, the sources said.
Foxconn has rapidly expanded its presence in India by investing in manufacturing locations in the south of the country.
Apple declined to comment and Foxconn and Pegatron did not respond immediately to requests for comment.
This is the second time in recent months that Pegatron has been forced to shut its factory, having temporarily halted assembly of iPhones after a fire in September.
(Reporting by Munsif Vengattil and Praveen Paramasivam Writing by Indranil Sarkar in Bengaluru Editing by Toby Chopra and David Goodman)
(([email protected]; Mobile: +91 7022132226;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds detail and background BENGALURU, Dec 4 (Reuters) - Taiwan's Foxconn 2317.TW and Pegatron 4938.TW have halted production of Apple AAPL.O iPhones at their factories near Chennai in southern India because of heavy rains, sources close to the matter said on Monday. Foxconn, which employs about 35,000 people at its Tamil Nadu iPhone factory, has yet to decide whether to resume production on Tuesday, the sources said. This is the second time in recent months that Pegatron has been forced to shut its factory, having temporarily halted assembly of iPhones after a fire in September. | Adds detail and background BENGALURU, Dec 4 (Reuters) - Taiwan's Foxconn 2317.TW and Pegatron 4938.TW have halted production of Apple AAPL.O iPhones at their factories near Chennai in southern India because of heavy rains, sources close to the matter said on Monday. In Tamil Nadu capital Chennai, the state's largest city and a major electronics and manufacturing hub, at least two people died and the runway of one of country's busiest airports was submerged after torrential rain as the city braced for a severe cyclone expected to hit in the next 24 hours. Foxconn, which employs about 35,000 people at its Tamil Nadu iPhone factory, has yet to decide whether to resume production on Tuesday, the sources said. | Adds detail and background BENGALURU, Dec 4 (Reuters) - Taiwan's Foxconn 2317.TW and Pegatron 4938.TW have halted production of Apple AAPL.O iPhones at their factories near Chennai in southern India because of heavy rains, sources close to the matter said on Monday. In Tamil Nadu capital Chennai, the state's largest city and a major electronics and manufacturing hub, at least two people died and the runway of one of country's busiest airports was submerged after torrential rain as the city braced for a severe cyclone expected to hit in the next 24 hours. Foxconn, which employs about 35,000 people at its Tamil Nadu iPhone factory, has yet to decide whether to resume production on Tuesday, the sources said. | Adds detail and background BENGALURU, Dec 4 (Reuters) - Taiwan's Foxconn 2317.TW and Pegatron 4938.TW have halted production of Apple AAPL.O iPhones at their factories near Chennai in southern India because of heavy rains, sources close to the matter said on Monday. Foxconn, which employs about 35,000 people at its Tamil Nadu iPhone factory, has yet to decide whether to resume production on Tuesday, the sources said. Foxconn has rapidly expanded its presence in India by investing in manufacturing locations in the south of the country. |
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12277.0 | 2023-12-04 00:00:00 UTC | If You Can Only Buy One Long-Term Stock in December, It Better Be One of These 3 Names | AAPL | https://www.nasdaq.com/articles/if-you-can-only-buy-one-long-term-stock-in-december-it-better-be-one-of-these-3-names | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This December the chances of a Santa Clause rally are looking thin, so it’s worth stuffing your portfolio with long-term stocks that will deliver in the new year and beyond. Picking a buy-and-hold stock can be a big responsibility because it means you’re willing to wait out some ups and downs along the way. That’s why it pays to choose a company that’s financially fit with a strong growth story for the future.
One important place to look for ongoing returns is dividends. Companies with mature businesses will often share out some of their profits with investors and reinvest the rest into future growth. Growth is an important factor as well when it comes to the top long-term stocks. You want a business that is offering something that will be in demand for years to come, so stay away from the latest fad or fashion.
Finally, its worth getting a feel for management. Ideally, you want a leadership team that stays the course and doesn’t make erratic decisions. Too much showboating, or on the opposite end of the spectrum, a lack of transparency, can be detrimental to the long-term success of the company.
American Electric Power (AEP)
Source: Casimiro PT / Shutterstock.com
American Electric Power (NASDAQ:AEP) is a utility stock that is worth watching if you’re on the hunt for long-term stocks. The company owns and operates the largest electricity transmissions system in the country, supplying power across the U.S. Not only is the group responsible for sending electricity to homes everywhere, it also generates the power flowing through those cables. This integrated model allows for lots of efficiency, which translates into affordable power.
Given the group’s revenues are relatively predictable, its able to offer up a dividend over 4%, and counting. The group’s shown its keen to increase dividend payouts where possible. While AEP isn’t going to deliver out-of-this-word growth, the benefits of reinvesting your dividends over time will pay off in the long-term, making it a worthwhile pick for buy-and-hold investors.
British American Tobacco (BTI)
Source: DutchMen / Shutterstock.com
Another dividend stock that should top your list of long-term stocks is British American Tobacco (NYSE:BTI). There are many people who will never invest in a tobacco company, which creates some risk for holders of BTI. But ultimately the business is a cash-generating machine, and there’s likely to be plenty of upside ahead.
Selling an addictive product means BTI’s customers are some of the least price sensitive out there. The group’s revenue is relatively reliable, and it’s been able to pass on rising costs to consumers without hurting volumes too much. Thanks to all the cash flowing through the business, the group’s got more than enough capacity to pay its 10% dividend yield.
Importantly, the market for cigarettes is declining. This is a problem BTI will eventually have to face. But, it’s working to convert smokers to healthier alternatives in a bid to pivot the business. The path ahead for this part of the business is unclear, but the group has plenty of time to position itself as a market leader as regulations develop around the use of vapes and e-cigarettes.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple has long been at the top of everyone’s long-term stocks list, and for good reason. The group revolutionized mobile phones with the iPhone and has established itself as a market leader when it comes to the hottest new tech. But the group’s over-reliance on iPhones in the past has led investors to hesitate when it comes to Apple stock. However the group appears to have firmly pivoted it’s business toward more recurring revenues.
Notably, the group’s latest results came with disappointing hardware figures and investors responded by stepping away from the stock. However the bright light was progress in the services arm. That arm of the business includes things like the Appstore and Apple Music. This higher margin part of the business is the future for Apple, and growth here suggests the past quarter is no more than a bump in the road.
On the date of publication, Marie Brodbeck held BTI. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Marie Brodbeck has a Finance degree from Duquesne University and has been a financial journalist for more than a decade. Her work can be seen in a variety of publications including InvestorPlace, Benzinga, Yahoo Finance and CCN.
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The post If You Can Only Buy One Long-Term Stock in December, It Better Be One of These 3 Names 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 has long been at the top of everyone’s long-term stocks list, and for good reason. While AEP isn’t going to deliver out-of-this-word growth, the benefits of reinvesting your dividends over time will pay off in the long-term, making it a worthwhile pick for buy-and-hold investors. The path ahead for this part of the business is unclear, but the group has plenty of time to position itself as a market leader as regulations develop around the use of vapes and e-cigarettes. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple has long been at the top of everyone’s long-term stocks list, and for good reason. American Electric Power (AEP) Source: Casimiro PT / Shutterstock.com American Electric Power (NASDAQ:AEP) is a utility stock that is worth watching if you’re on the hunt for long-term stocks. While AEP isn’t going to deliver out-of-this-word growth, the benefits of reinvesting your dividends over time will pay off in the long-term, making it a worthwhile pick for buy-and-hold investors. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple has long been at the top of everyone’s long-term stocks list, and for good reason. InvestorPlace - Stock Market News, Stock Advice & Trading Tips This December the chances of a Santa Clause rally are looking thin, so it’s worth stuffing your portfolio with long-term stocks that will deliver in the new year and beyond. American Electric Power (AEP) Source: Casimiro PT / Shutterstock.com American Electric Power (NASDAQ:AEP) is a utility stock that is worth watching if you’re on the hunt for long-term stocks. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple has long been at the top of everyone’s long-term stocks list, and for good reason. Growth is an important factor as well when it comes to the top long-term stocks. American Electric Power (AEP) Source: Casimiro PT / Shutterstock.com American Electric Power (NASDAQ:AEP) is a utility stock that is worth watching if you’re on the hunt for long-term stocks. |
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12278.0 | 2023-12-04 00:00:00 UTC | Is Invesco FTSE RAFI US 1000 ETF (PRF) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-invesco-ftse-rafi-us-1000-etf-prf-a-strong-etf-right-now-10 | Launched on 12/19/2005, the Invesco FTSE RAFI US 1000 ETF (PRF) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
PRF is managed by Invesco, and this fund has amassed over $6.32 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. PRF, before fees and expenses, seeks to match the performance of the FTSE RAFI US 1000 Index.
The FTSE RAFI US 1000 Index is designed to track the performance of the largest U.S. equities, selected based on the following four fundamental measures of firm size: book value, income, sales and dividends. U.S. equities are then weighted by each of these four fundamental measures.An overall weight is calculated for each firm by equally-weighting each fundamental measure.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.39% for this ETF, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 1.86%.
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.
For PRF, it has heaviest allocation in the Financials sector --about 20% of the portfolio --while Information Technology and Healthcare round out the top three.
Taking into account individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.93% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
PRF's top 10 holdings account for about 19.26% of its total assets under management.
Performance and Risk
So far this year, PRF has added about 10.50%, and is up roughly 5.57% in the last one year (as of 12/04/2023). During this past 52-week period, the fund has traded between $29.89 and $33.99.
The fund has a beta of 1 and standard deviation of 16.12% for the trailing three-year period, which makes PRF a medium risk choice in this particular space. With about 1012 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco FTSE RAFI US 1000 ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $51.95 billion in assets, Vanguard Value ETF has $101.87 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
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 Value.
Bottom Line
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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. | Taking into account individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.93% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Launched on 12/19/2005, the Invesco FTSE RAFI US 1000 ETF (PRF) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market. | Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.93% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Launched on 12/19/2005, the Invesco FTSE RAFI US 1000 ETF (PRF) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market. | Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.93% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. | Taking into account individual holdings, Berkshire Hathaway Inc (BRK/B) accounts for about 2.93% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT). Click to get this free report Invesco FTSE RAFI US 1000 ETF (PRF): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. PRF, before fees and expenses, seeks to match the performance of the FTSE RAFI US 1000 Index. |
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12279.0 | 2023-12-04 00:00:00 UTC | ANALYSIS-‘Lovin’ it’: McDonald’s raises China bet, bucking Western firms' derisking trend | AAPL | https://www.nasdaq.com/articles/analysis-lovin-it%3A-mcdonalds-raises-china-bet-bucking-western-firms-derisking-trend | By Casey Hall
SHANGHAI, Dec 4 (Reuters) - The decision by McDonald's MCD.N to take greater control of its China business and expand aggressively in the face of a consumer slowdown and geopolitical tensions seems risky - but the potential pay-off is great, analysts say.
Last month, the U.S.-based burger maker cut a deal to repurchase the 28% stake in its China business Carlyle Group took in 2017, giving it a 48% share in $6 billion worth of operations that include Hong Kong and Macau.
The move contrasts sharply with the prevailing trend of multinational corporations reeling back investments in China or even exiting altogether because of geopolitical and economic challenges.
One advantage for McDonald’s: its majority partner in the China business, CITIC, provides top-level political cover, said Jason Yu, greater China managing director of market research firm Kantar Worldpanel.
"Having a very powerful Chinese state-owned conglomerate as a partner means they are not going to be at the forefront of the geopolitical situation; that is quite important," Yu said.
McDonald's China, Carlyle Group and CITIC declined to comment.
Other consumer-facing U.S. firms, including Starbucks SBUX.O, Apple AAPL.O, Coach owner Tapestry TPR.N and sportswear giant Nike NKE.N, have remained similarly dedicated to the China market.
Starbucks and Nike, which face increased competition from lower-priced domestic competitors, show the need to stay agile in order to protect and grow market share, analysts say.
The coffee giant is sticking with expansion plans and launched a smaller cup size; Nike, by contrast, has offered localised, higher-end sneakers such as its "Year of the Rabbit" Dunk Lows.
McDonald’s has used funds from the Carlyle investment to double its restaurant count since 2017 to 5,500, and the country has become its second-largest market. The business aims to have more than 10,000 stores in China by 2028.
Competitors of McDonald's are also expanding their reach in China.
Yum China, which operates KFC and Pizza Hut, among other brands, already has more than 14,000 stores across the country. Among domestic players, chicken burger specialist Wallace said in 2021 that it had reached 20,000 stores, and newer entrant Tastien, which specialises in "Chinese-style" burgers, has more than 3,500 stores.
To be sure, if relations between China and the West worsen, any optimism could evaporate, said Greg Halter, Director of Research at investment advisory firm Carnegie Investment Counsel.
"If tensions deteriorate, we may see not only McDonald's, but other companies divest their Chinese operations, similar to what has occurred in Russia over the past two years," Halter said.
Further digitalisation and localisation are needed, Yu said, with localisation key to winning over taste buds in China's $140.2 billion limited-service restaurant sector.
Although the McDonald's China menu would be familiar to U.S. consumers, there are nods to local tastes, including taro pie, rather than apple.
According to Euromonitor, the market value of limited-service restaurants in China is on track to grow about 4% annually on average through 2025. Of the limited-service burger-focussed restaurants in the country, McDonald's dominates with a 70% share of the market.
China's slowing economic growth and lacklustre consumer spending this year have already hurt the bottom lines of global businesses exposed to its consumer market, but McDonald's is well-placed to outperform, said Ben Cavender, the Shanghai-based managing director and head of strategy at China Market Research Group.
He said value-driven middle class consumers and lower commercial rents countrywide should be a boon to such businesses.
"If ever there was a time to double down on China, this is it," he said.
(Reporting by Casey Hall in Shanghai and Kane Wu in Hong Kong; additional reporting from Deborah Sophia in Bengaluru. Editing by Gerry Doyle)
(([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 consumer-facing U.S. firms, including Starbucks SBUX.O, Apple AAPL.O, Coach owner Tapestry TPR.N and sportswear giant Nike NKE.N, have remained similarly dedicated to the China market. By Casey Hall SHANGHAI, Dec 4 (Reuters) - The decision by McDonald's MCD.N to take greater control of its China business and expand aggressively in the face of a consumer slowdown and geopolitical tensions seems risky - but the potential pay-off is great, analysts say. Last month, the U.S.-based burger maker cut a deal to repurchase the 28% stake in its China business Carlyle Group took in 2017, giving it a 48% share in $6 billion worth of operations that include Hong Kong and Macau. | Other consumer-facing U.S. firms, including Starbucks SBUX.O, Apple AAPL.O, Coach owner Tapestry TPR.N and sportswear giant Nike NKE.N, have remained similarly dedicated to the China market. Last month, the U.S.-based burger maker cut a deal to repurchase the 28% stake in its China business Carlyle Group took in 2017, giving it a 48% share in $6 billion worth of operations that include Hong Kong and Macau. One advantage for McDonald’s: its majority partner in the China business, CITIC, provides top-level political cover, said Jason Yu, greater China managing director of market research firm Kantar Worldpanel. | Other consumer-facing U.S. firms, including Starbucks SBUX.O, Apple AAPL.O, Coach owner Tapestry TPR.N and sportswear giant Nike NKE.N, have remained similarly dedicated to the China market. By Casey Hall SHANGHAI, Dec 4 (Reuters) - The decision by McDonald's MCD.N to take greater control of its China business and expand aggressively in the face of a consumer slowdown and geopolitical tensions seems risky - but the potential pay-off is great, analysts say. One advantage for McDonald’s: its majority partner in the China business, CITIC, provides top-level political cover, said Jason Yu, greater China managing director of market research firm Kantar Worldpanel. | Other consumer-facing U.S. firms, including Starbucks SBUX.O, Apple AAPL.O, Coach owner Tapestry TPR.N and sportswear giant Nike NKE.N, have remained similarly dedicated to the China market. One advantage for McDonald’s: its majority partner in the China business, CITIC, provides top-level political cover, said Jason Yu, greater China managing director of market research firm Kantar Worldpanel. McDonald’s has used funds from the Carlyle investment to double its restaurant count since 2017 to 5,500, and the country has become its second-largest market. |
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12280.0 | 2023-12-04 00:00:00 UTC | Option Volatility And Earnings Report For December 4 - 8 | AAPL | https://www.nasdaq.com/articles/option-volatility-and-earnings-report-for-december-4-8 | We have a little more activity on the earnings front this week with smaller companies reporting. This week we have DocuSign (DOCU), Lululemon (LULU), Chewy (CHWY), Dollar General (DG) and Autozone (AZO) and as the main stock s to watch.
Before a company reports earnings, implied volatility is usually high because the market is unsure about the outcome of the report. Speculators and hedgers create huge demand for the company’s options which increases the implied volatility, and therefore, the price of options.
After the earnings announcement, implied volatility usually drops back down to normal levels.
Let’s take a look at the expected range for these stocks. To calculate the expected range, look up the option chain and add together the price of the at-the-money put option and the at-the-money call option. Use the first expiry date after the earnings date. While this approach is not as accurate as a detailed calculation, it does serve as a reasonably accurate estimate.
Monday
Nothing of note
Tuesday
NIO – 10.7%
AZO – 4.7%
MDB – 10.9%
ASAN – 14.9%
Wednesday
AI – 14.1%
GME – 21.5%
CPB – 4.5%
CHWY – 16.1%
VEEV – 7.0%
CHPT – 17.3%
Thursday
DG – 8.9%
AVGO – 4.5%
LULU – 6.6%
DOCU – 11.7%
Friday
Nothing of note
Option traders can use these expected moves to structure trades. Bearish traders can look at selling bear call spreads outside the expected range.
Bullish traders can sell bull put spreads outside the expected range, or look at naked puts for those with a higher risk tolerance.
Neutral traders can look at iron condors. When trading iron condors over earnings, it is best to keep the short strikes outside the expected range.
When trading options over earnings, it is best to stick to risk defined strategies and keep position size small. If the stock makes a larger than expected move and the trade suffers a full loss, it should not have more than a 1-3% effect on your portfolio.
Stocks With High Implied Volatility
We can use Barchart’s Stock Screener to find other stocks with high implied volatility.
Let’s run thestock screenerwith the following filters:
Total call volume: Greater than 2,000
Market Cap: Greater than 40 billion
IV Percentile: Greater than 50%
This screener produces the following results sorted by IV Percentile.
You can refer to this article for details of how to find option trades for this earnings season.
Last Week’s Earnings Moves
Last week’s we only had one company of interest report earnings:
CRWD +10.4% vs 7.5% expected
PDD +18.1% vs 9.6% expected
CRM +9.4% vs 5.5% expected
SNOW +7.1% vs 9.3% expected
DELL -5.2% vs 6.6% expected
MRVL -5.3% vs 7.8% expected
Overall, there were 3 out of 6 that stayed within the expected range.
Changes In Open Interest
LVS, GM, SOFI, CCL, UBER, TSLA and AAPL saw some of the largest changes in open interest last week.
Other stocks with large changes in open interest are shown below:
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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5 Reasons to Buy First Solar Stock Now
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. | Changes In Open Interest LVS, GM, SOFI, CCL, UBER, TSLA and AAPL saw some of the largest changes in open interest last week. This week we have DocuSign (DOCU), Lululemon (LULU), Chewy (CHWY), Dollar General (DG) and Autozone (AZO) and as the main stock s to watch. Other stocks with large changes in open interest are shown below: Please remember that options are risky, and investors can lose 100% of their investment. | Changes In Open Interest LVS, GM, SOFI, CCL, UBER, TSLA and AAPL saw some of the largest changes in open interest last week. Before a company reports earnings, implied volatility is usually high because the market is unsure about the outcome of the report. To calculate the expected range, look up the option chain and add together the price of the at-the-money put option and the at-the-money call option. | Changes In Open Interest LVS, GM, SOFI, CCL, UBER, TSLA and AAPL saw some of the largest changes in open interest last week. To calculate the expected range, look up the option chain and add together the price of the at-the-money put option and the at-the-money call option. Stocks With High Implied Volatility We can use Barchart’s Stock Screener to find other stocks with high implied volatility. | Changes In Open Interest LVS, GM, SOFI, CCL, UBER, TSLA and AAPL saw some of the largest changes in open interest last week. Let’s take a look at the expected range for these stocks. You can refer to this article for details of how to find option trades for this earnings season. |
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12281.0 | 2023-12-04 00:00:00 UTC | Foxconn halts iPhone production at India facility due to heavy rains - sources | AAPL | https://www.nasdaq.com/articles/foxconn-halts-iphone-production-at-india-facility-due-to-heavy-rains-sources | BENGALURU, Dec 4 (Reuters) - Taiwan's Foxconn 2317.TW has halted production of Apple AAPL.O iPhones at its facility near the south Indian city of Chennai due to heavy rains, two sources familiar with the matter said on Monday.
Foxconn is yet to decide whether to resume production on Tuesday, the sources said.
Apple declined a Reuters request for comment, while Foxconn did not immediately respond.
(Reporting by Munsif Vengattil in Bengaluru and Praveen Paramasivam; Editing by Toby Chopra)
(([email protected]; Mobile: +91 7022132226;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | BENGALURU, Dec 4 (Reuters) - Taiwan's Foxconn 2317.TW has halted production of Apple AAPL.O iPhones at its facility near the south Indian city of Chennai due to heavy rains, two sources familiar with the matter said on Monday. Apple declined a Reuters request for comment, while Foxconn did not immediately respond. (Reporting by Munsif Vengattil in Bengaluru and Praveen Paramasivam; Editing by Toby Chopra) (([email protected]; Mobile: +91 7022132226;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | BENGALURU, Dec 4 (Reuters) - Taiwan's Foxconn 2317.TW has halted production of Apple AAPL.O iPhones at its facility near the south Indian city of Chennai due to heavy rains, two sources familiar with the matter said on Monday. Apple declined a Reuters request for comment, while Foxconn did not immediately respond. (Reporting by Munsif Vengattil in Bengaluru and Praveen Paramasivam; Editing by Toby Chopra) (([email protected]; Mobile: +91 7022132226;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | BENGALURU, Dec 4 (Reuters) - Taiwan's Foxconn 2317.TW has halted production of Apple AAPL.O iPhones at its facility near the south Indian city of Chennai due to heavy rains, two sources familiar with the matter said on Monday. Apple declined a Reuters request for comment, while Foxconn did not immediately respond. (Reporting by Munsif Vengattil in Bengaluru and Praveen Paramasivam; Editing by Toby Chopra) (([email protected]; Mobile: +91 7022132226;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | BENGALURU, Dec 4 (Reuters) - Taiwan's Foxconn 2317.TW has halted production of Apple AAPL.O iPhones at its facility near the south Indian city of Chennai due to heavy rains, two sources familiar with the matter said on Monday. Foxconn is yet to decide whether to resume production on Tuesday, the sources said. Apple declined a Reuters request for comment, while Foxconn did not immediately respond. |
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12282.0 | 2023-12-04 00:00:00 UTC | 1 Warren Buffett Stock to Buy and Hold Forever | AAPL | https://www.nasdaq.com/articles/1-warren-buffett-stock-to-buy-and-hold-forever-1 | Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett is a truly remarkable business picker. To illustrate the point, a mere $100 invested in Berkshire Hathaway stock 43 years ago would now be worth a staggering $187,000. However, even Buffett is not immune to the forces of "creative destruction" that shape the American economy.
To wit, most of Buffett's extraordinary returns over the years have come from a small handful of exceptional performers such as Apple, American Express, and Coca-Cola. These top performers have been able to consistently expand into new markets, often driving their competitors to extinction.
Image Source: Getty Images.
On the flip side, Buffett has also lost money on many investments over the years due to this same competitive dynamic; a fact that reflects another well-known market phenomenon in that less than 2.5% of all publicly traded stocks account for a whopping 10% of wealth creation over the past 40 plus years.
The lesson here for lay investors is that winning stocks tend to keep winning. Armed with this insight, here is a look at one of Berkshire Hathaway's best stock picks in the past three years, and why this market-crushing stock is still a strong buy right now.
A telecom juggernaut
Berkshire Hathaway first purchased shares of T-Mobile (NASDAQ: TMUS) in the third quarter of 2020, according to whalewisdom.com. The diversified conglomerate's share purchases occurred only a few months after T-Mobile completed its merger with Sprint, a move that made it one of the largest wireless carriers in the United States. The big ticket item for investors is that this strategic merger gave the company the scale necessary to compete on even footing with industry titans AT&T (NYSE: T) and Verizon (NYSE: VZ).
Although T-Mobile's shares haven't outperformed the benchmark S&P 500 since this merger went through, its shares are still up by a healthy 79.6% over this period. Moreover, it now has the staying power to be a major player in the U.S. telecom industry for the foreseeable future.
Even though T-Mobile's stock hasn't been a market beater in recent times, its prior three-year performance is substantially better than that of so-called "risk-free" assets such as T-bills over this period.
T-Mobile's stock has thus performed exceptionally well on a risk-adjusted basis over Berkshire Hathaway's ownership period, which is most likely the holding company's real performance target. Very few stocks consistently outperform the S&P 500 index after all.
Why is T-Mobile stock still a buy?
There are three simple yet powerful reasons to consider following Berkshire Hathaway's lead on this top telecom stock right now.
First up, the company recently started paying a dividend. While its yield of 0.43% won't appeal to passive income investors, this figure is within the sweet spot for dividend stocks as capital appreciation vehicles.
Second, T-Mobile has been steadily buying back shares in recent quarters, which is a positive development for shareholders.
Third, Wall Street analysts expect the U.S. telecom industry to stabilize from a competitive positioning standpoint over the next several years, which should result in improving free cash flows for T-Mobile, as well as its fellow wireless carriers AT&T and Verizon.
Key takeaway
Among the big three U.S. wireless carriers, T-Mobile is easily the most appealing as a capital appreciation vehicle. And with management ratcheting up the company's shareholder rewards program, its prospects as a growth vehicle look exceptionally bright.
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American Express is an advertising partner of The Ascent, a Motley Fool company. George Budwell has positions in AT&T and Apple. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends T-Mobile US and Verizon Communications 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. | The diversified conglomerate's share purchases occurred only a few months after T-Mobile completed its merger with Sprint, a move that made it one of the largest wireless carriers in the United States. Even though T-Mobile's stock hasn't been a market beater in recent times, its prior three-year performance is substantially better than that of so-called "risk-free" assets such as T-bills over this period. Third, Wall Street analysts expect the U.S. telecom industry to stabilize from a competitive positioning standpoint over the next several years, which should result in improving free cash flows for T-Mobile, as well as its fellow wireless carriers AT&T and Verizon. | To illustrate the point, a mere $100 invested in Berkshire Hathaway stock 43 years ago would now be worth a staggering $187,000. A telecom juggernaut Berkshire Hathaway first purchased shares of T-Mobile (NASDAQ: TMUS) in the third quarter of 2020, according to whalewisdom.com. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. | Armed with this insight, here is a look at one of Berkshire Hathaway's best stock picks in the past three years, and why this market-crushing stock is still a strong buy right now. T-Mobile's stock has thus performed exceptionally well on a risk-adjusted basis over Berkshire Hathaway's ownership period, which is most likely the holding company's real performance target. See the 10 stocks *Stock Advisor returns as of November 29, 2023 American Express is an advertising partner of The Ascent, a Motley Fool company. | To wit, most of Buffett's extraordinary returns over the years have come from a small handful of exceptional performers such as Apple, American Express, and Coca-Cola. * They just revealed what they believe are the ten best stocks for investors to buy right now... and T-Mobile wasn't one of them! The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. |
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12283.0 | 2023-12-04 00:00:00 UTC | The Customer Buying Journey and Investment Opportunities | AAPL | https://www.nasdaq.com/articles/the-customer-buying-journey-and-investment-opportunities | A
customer’s decision-making journey goes through many stages, and businesses would do well to know the details about every step of customer interaction. As an example, take Steven, who works in customer service. He is having trouble listening to his customers over regular earphones. Steven wants to invest in noise-canceling headsets.
He searches for noise-canceling headphones. This is the second step in the decision-making journey: research. When researching online or in-store, Steven compares other options so he can choose the one that suits his needs the best. He finally lands on a specific headset from XYZ company and buys it. What prompted Steven to purchase the headset from XYZ? Will Steven end up keeping the headset or return it to buy a different one? Will he buy from the company again?
Finding answers to these questions is fundamental to gaining insight into consumer behavior during the later stages of the buying process. It is a crucial step, since, at this point, the buying behavior turns into action.
What influences buying decisions
A closer look into Steven’s buying decision shows that he had set aside a budget of $140 for the headset. He didn’t want to go over by even a dollar unless he found something remarkable – he would probably stretch it out to $150.
All noise-canceling headsets he searched for were in the $170-$250 range. Finally, a shiny discounted item caught his eye. Listed at only $145, a markdown from $210 – Steven thought these headsets were a steal. He quickly read the reviews, which satisfied him.
In conclusion, he analyzed that the headset was well within his budget, he was getting a striking deal, and the reviews were great. He proceeded to make the purchase. Steven’s case is one of many that determine what factors influence a buyer’s decision to make a purchase. Here are some of the key reasons that play a role in a buyer’s customer engagement journey:
Financial factor: When economics comes into the picture, a customer doesn’t necessarily look for the best product in the market, rather they are inclined towards the most affordable product.
Personal preference: Every individual has their own set of likes, dislikes, and preferences. While Consumer A may prefer a Samsung phone, Consumer B is a loyal fan of iPhone, who swears to never switch to Samsung.
Marketing style: Various aspects of marketing such as product placement, pricing, promotion, advertising, and social media appeal have a direct or indirect impact on a customer’s decision-making process.
Customer service: Factors such as responsiveness, problem-solving, friendliness, and post-purchase support can all add up to a positive experience, which can contribute to their decision-making process. It can also determine if a customer would be a return buyer or if they would recommend the product to their friends and family.
Companies mastering the game
Apple (AAPL) shows unrivaled marketing skills in the tech universe, positioning itself as an innovative brand associated with quality and sleek design. The company's marketing messages are known for their simplicity and clarity, emphasizing the benefits of its products. The seamless integration of its product ecosystem fosters customer loyalty, and the immersive retail experience reinforces the brand's values. Apple's limited product range allows for focused marketing efforts, while customer testimonials and case studies contribute to building trust and credibility. Brand loyalty lends itself to strong repeat purchases.
Validea's guru fundamental report rates AAPL stock the highest using their Twin Momentum Investor model based on the published strategy of Dashan Huang. Being one of the QQQ mega-cap tech stocks listed on Nasdaq is also an advantage for AAPL. Over the past decade, QQQ had a 17.5% compound annual growth rate (CAGR) – a great prospect for investors looking for safe stocks.
Costco (COST) is also known for its outstanding customer service and unbeatable deals. With an impressive 90% membership retention rate, Costco reported 66.9 million member households at the end of the first fiscal quarter of 2023. Costco stock has a 1-year target price of $603. Q4 earnings reported revenues of $78.9 billion – a 9.5% increase from last year and EPS rose 15.7% to $4.86, beating Wall Street's consensus estimates. With a proven history of paying regular dividends to its investors and strong sourcing capabilities, COST proves to be a worthwhile investment in any conditions.
Retail giant Amazon (AMZN) is also known for high customer conversions on the platform. The 2021 Amazon Consumer Behavior Report from Feedvisor showed that 47% of consumers purchase on Amazon at least once a week, while 8% make a purchase every day. American Customer Satisfaction Index (ACSI) measures customer satisfaction in the United States across various industries and sectors, including retail, telecommunications, manufacturing, finance, and more. ACSI ranked Amazon No.1 across factors such as selection, value, and online shopping experience. The online retailer was voted No.2 for customer satisfaction.
Validea's guru fundamental report rated AMZN the highest using their P/B Growth Investor model based on the published strategy of Partha Mohanram. Also with continuing developments in AI, Amazon is constantly proving to be a force to be reckoned with. This is good news for investors interested in retail stocks that focus on consumer satisfaction.
In the digital era, user experience and user satisfaction are crucial considerations. The customer engagement journey directly influences customer loyalty, repeat business, and positive word-of-mouth marketing. Companies, small or big, who continue to dissect the intricate world of the customer’s buying journey can find ways to attract, retain, and secure them for the long run.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Companies mastering the game Apple (AAPL) shows unrivaled marketing skills in the tech universe, positioning itself as an innovative brand associated with quality and sleek design. Validea's guru fundamental report rates AAPL stock the highest using their Twin Momentum Investor model based on the published strategy of Dashan Huang. Being one of the QQQ mega-cap tech stocks listed on Nasdaq is also an advantage for AAPL. | Validea's guru fundamental report rates AAPL stock the highest using their Twin Momentum Investor model based on the published strategy of Dashan Huang. Companies mastering the game Apple (AAPL) shows unrivaled marketing skills in the tech universe, positioning itself as an innovative brand associated with quality and sleek design. Being one of the QQQ mega-cap tech stocks listed on Nasdaq is also an advantage for AAPL. | Companies mastering the game Apple (AAPL) shows unrivaled marketing skills in the tech universe, positioning itself as an innovative brand associated with quality and sleek design. Validea's guru fundamental report rates AAPL stock the highest using their Twin Momentum Investor model based on the published strategy of Dashan Huang. Being one of the QQQ mega-cap tech stocks listed on Nasdaq is also an advantage for AAPL. | Companies mastering the game Apple (AAPL) shows unrivaled marketing skills in the tech universe, positioning itself as an innovative brand associated with quality and sleek design. Validea's guru fundamental report rates AAPL stock the highest using their Twin Momentum Investor model based on the published strategy of Dashan Huang. Being one of the QQQ mega-cap tech stocks listed on Nasdaq is also an advantage for AAPL. |
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12284.0 | 2023-12-03 00:00:00 UTC | After Soaring in 2023, Is Apple a Smart Stock to Buy in 2024? | AAPL | https://www.nasdaq.com/articles/after-soaring-in-2023-is-apple-a-smart-stock-to-buy-in-2024 | It's been a great time to be an Apple (NASDAQ: AAPL) shareholder. The popular consumer tech business has seen its shares soar an impressive 46% this year. And the company now carries a market capitalization that's approaching $3 trillion.
Zooming out, it's obvious that this FAANG stock has been a wildly successful investment, thanks in large part to a strong brand and outstanding financial performance.
But as we look toward the new year, is Apple a smart stock to buy in 2024? Let's examine some important details that investors must consider.
Positive traits abound
Some might view Apple as one of the safest stocks to own. That's because of its superb balance sheet and net cash position of $51 billion. This will allow the company to navigate any recessionary periods with no issues at all, while at the same time investing in marketing and product development initiatives to bolster its competitive standing.
Indeed, many new product and service updates will likely be launched in 2024, regardless of the economic backdrop. Apple's incredibly strong brand, which is estimated by Interbrand to be worth just over $500 billion, is precisely what sets this business apart.
A history of innovation and the creation of in-demand products and services, characterized by the seamless connection of Apple's hardware and software, is viewed by consumers as a necessity for everyday life. I don't think any other company on the planet has the sort of standing with its customers that Apple does.
This adds durability to the business model, raising the chances that Apple will still be a dominant enterprise a decade from now.
But a key factor deserves attention
However, the current setup for investors is an unfavorable one. "Be fearful when others are greedy," Warren Buffett has said. It appears as though Apple shareholders are very greedy right now.
While Apple's gain in 2023 has the stock's bulls cheering loudly, it's interesting to see just where the rise has come from. Surprisingly, the share performance this year can be fully attributed to a higher price-to-earnings (P/E) multiple.
What exactly is a stock's P/E ratio? It's a valuation methodology that takes the stock's price and compares it to its earnings per share. All else equal, a lower P/E multiple indicates a better value for investors.
At the start of 2023, Apple's P/E ratio was under 22. Today, it stands at 31. This sizable multiple expansion matches closely the share price gain this year. In other words, Apple's fundamental performance, things like its revenue or earnings growth, have had no impact on the stock over the past 11 months.
The rise in the share price can all be credited to a higher P/E ratio, which is the result of renewed investor enthusiasm following a down year for the market in 2022.
It's an expensive stock right now
It's a fair assessment to say that Apple's stock is significantly more expensive than it was at the start of the year. And this makes me hesitate to buy shares as we head into 2024. It looks like investor optimism is fully priced in, leaving zero margin of safety at these levels.
What's discouraging about Apple is that its revenue in fiscal 2023 (ended Sept. 30) actually declined 2.8% from the prior fiscal year. This means that investors are being asked to pay a premium valuation for a business that is dealing with a slowdown.
Of course, Apple could start to post accelerating revenue and earnings growth in a more robust economic environment. But it's impossible to predict when this will happen, which increases the downside risk for prospective investors looking to pay this high of a P/E multiple.
Should Apple's valuation drop significantly, then the stock looks like a more attractive buying opportunity. But as we set our sights on the new year, it's best not to add this one to your portfolio 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. | It's been a great time to be an Apple (NASDAQ: AAPL) shareholder. Zooming out, it's obvious that this FAANG stock has been a wildly successful investment, thanks in large part to a strong brand and outstanding financial performance. This will allow the company to navigate any recessionary periods with no issues at all, while at the same time investing in marketing and product development initiatives to bolster its competitive standing. | It's been a great time to be an Apple (NASDAQ: AAPL) shareholder. This sizable multiple expansion matches closely the share price gain this year. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | It's been a great time to be an Apple (NASDAQ: AAPL) shareholder. It's an expensive stock right now It's a fair assessment to say that Apple's stock is significantly more expensive than it was at the start of the year. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen. | It's been a great time to be an Apple (NASDAQ: AAPL) shareholder. This sizable multiple expansion matches closely the share price gain this year. The rise in the share price can all be credited to a higher P/E ratio, which is the result of renewed investor enthusiasm following a down year for the market in 2022. |
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12285.0 | 2023-12-03 00:00:00 UTC | Apple Is Far Less Important to Berkshire Hathaway Than You Think | AAPL | https://www.nasdaq.com/articles/apple-is-far-less-important-to-berkshire-hathaway-than-you-think | The passing of Charlie Munger on Nov. 28 marked the end of a chapter for longtime fans of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). Munger often spoke less than Warren Buffett during the company's famous annual meetings in Omaha, Nebraska. But his wit and wry sense of humor lightened the mood and complemented Buffett's bouncy cadence perfectly.
Berkshire Hathaway is a behemoth of a company -- the seventh-largest-weighted stock in the S&P 500 and the largest non-"tech" U.S.-based stock by market cap ("tech" because Meta Platforms and Alphabet are in the communications sector, while Tesla and Amazon are in the consumer discretionary sector).
At the time of this writing, Berkshire has a market cap of $779.5 billion, but the value of its public equity portfolio is only 46% of that, or $358.1 billion.
Put another way, over half of Berkshire Hathaway's value derives from private companies or businesses it owns outright. Let's break down the true composition of Berkshire Hathaway and determine if the blue-chip stock is a buy now.
Image source: Getty Images.
The Big Four
In Berkshire Hathaway's 2020 annual letter to shareholders, Buffett called Berkshire's many subsidiaries "a smorgasbord of businesses employing 360,000 at year-end." The list of companies Berkshire owns part of but doesn't control is large and diverse. In that same letter, Buffett referred to the company's four jewels or its "big four." The big four account for the vast majority of Berkshire's earnings and its value.
The big four are its stake in Apple (NASDAQ: AAPL) stock, the company's property and casualty insurance business, its complete ownership of BNSF railroad, and its 92% ownership of Berkshire Hathaway Energy (BHE).
1. Apple
Berkshire's stake in Apple has grown since 2020 -- thanks in part to Apple stock hovering around an all-time high. Apple makes up 48.4% of Berkshire's public equity portfolio but only 22.2% of the market cap of Berkshire Hathaway. It's still a big chunk, but it is smaller than it looks if you're only focusing on the public equity portfolio.
2. Insurance businesses
Perhaps the most valuable part of Berkshire Hathaway is its property and casualty insurance businesses. Berkshire views its insurance business in two categories: underwriting and investing. Its underwriting operations include GEICO, Berkshire Hathaway Primary Group, and Berkshire Hathaway Reinsurance Group.
Valuing an insurance company isn't easy. But Buffett has long drawn attention to the float as a good way of monitoring the progress of the company. Float is basically the amount of money an insurance company holds to pay in the event of claims. Float comes from premium payments.
Buffett has long loved the insurance business model because it involves the steady collection of premiums, which can be invested without the cost of capital. In Berkshire's 2009 shareholder letter, Buffett noted that Berkshire's float grew from $16 million in 1967 to $62 billion at the end of 2009 (not a typo). In its 2022 annual shareholder letter, Buffett said that the float grew from around $114 billion at the end of 2017 to approximately $164 billion at the end of 2022, helped by Berkshire's acquisition of Allegheny.
Berkshire books an underwriting profit if premiums exceed the total expenses and eventual losses of the business. However, it is probably going to book an underwriting loss if an unusual amount of catastrophic events occur.
One of Berkshire's greatest (and perhaps its most underappreciated) strengths is the management of its insurance businesses and its underwriting prowess. According to the 2022 annual report, "insurance underwriting generated an after-tax loss of $90 million in 2022 and after-tax earnings of $728 million in 2021 and $657 million in 2020. Insurance underwriting results included after-tax losses from significant catastrophe events of approximately $2.4 billion in 2022, $2.3 billion in 2021, and $750 million in 2020." The underwriting success helped protect Berkshire's insurance float, leaving room to generate investment income.
Insurance companies are usually considered to be a good value at a price-to-book ratio of 1 and expensive at a price-to-book ratio closer to 2. Valuing Berkshire's insurance business on its float alone, which would be very conservative considering these businesses are likely worth far more than that, would make it worth around $162 billion.
3. BNSF Railroad
BNSF is one of the four major U.S. railroads, the others being Union Pacific (NYSE: UNP), CSX (NASDAQ: CSX), and Norfolk Southern (NYSE: NSC). Each railroad shares a duopoly over a region. For example, BNSF and Union Pacific share the Western hald of the US, while CSX and Norfolk Southern focus east of the Mississippi river. In 2022, 38% of BNSF's freight revenue came from consumer products, 23% from industrial products, 23% from agriculture products, and 16% from coal.
In 2022, BNSF booked $5.95 billion in net earnings compared to $5.99 billion in 2021 and $5.16 billion in 2020. Valuing BNSF is tricky, but if we look at the 10-year median price-to-earnings (P/E) ratio of Union Pacific at 19.8 and apply it to BNSF, BSNF would be worth $117.8 billion.
If we applied Norfolk Southern's 10-year median P/E of 17.96 or CSX's 10-year median P/E of 16.65, it would be worth around $100 billion or more.
4. BHE
Next, we have a 92% stake in BHE, which could be worth around $90 billion, although estimates vary.
BHE generates, transmits, stores, distributes, and supplies energy, serving 5.2 million retail customers and five U.S. interstate natural gas pipeline companies with over 21,000 miles of pipe. It owns a lot of regional and smaller utilities. But the basic idea is that BHE is a stable cash cow that operates in the midstream part of the integrated oil and gas value chain and the utility sector, which are far different from the exploration and production side of oil and gas.
The not-so-hidden gem
Berkshire generates profits from its manufacturing, service, and retailing business, which booked $12.51 billion in net earnings in 2022, $11.12 billion in 2021, and $8.3 billion in 2020. That makes it a more profitable segment than the insurance businesses, BNSF, or BHE.
SEGMENT
2022
2021
2020
Insurance-Underwriting
($90 million)
$728 million
$657 million
Insurance-Investment Income
$6.484 billion
$4.807 billion
$5.039 billion
Railroad
$5.946 billion
$5.99 billion
$5.161 billion
Utilities and Energy
$3.904 billion
$3.572 billion
$3.141 billion
Manufacturing, Service, and Retailing
$12.512 billion
$11.120 billion
$8.3 billion
Data source: Berkshire Hathaway.
Berkshire Hathaway owns a ton of brands within the manufacturing, service, and retailing space. Notable names include Duracell, Fruit of the Loom, Benjamin Moore, Acme, MiTek, and many more companies.
Valuing Berkshire Hathaway
Berkshire Hathaway is a very complicated business. But it's easy to see why it is probably undervalued, even though the stock is near an all-time high.
The non-Apple portion of the public equity portfolio is worth $185.75 billion.
Berkshire finished the third quarter of 2023 with cash and equivalents, including short-term investments in U.S. Treasury bills, of $157.2 billion.
Berkshire Hathaway's equity portfolio, including Apple, is worth $358.12 billion.
There's another $375 billion in value if we price its insurance businesses at the float of $164 billion, BNSF railroad at $117 billion, and its stake in BHE at $90 billion.
So, right there, we are already at $733 billion. If we assume a 15 P/E on the manufacturing, service, and retailing business and add in the cash position, and Berkshire Hathaway would be worth $1.08 trillion.
Follow what smart minds do
Unlike other conglomerates, Berkshire Hathaway doesn't pay a dividend. Instead, it believes capital is better spent repurchasing its own stock. And there's every reason to believe this long-held principle is the right one.
Over the last five years, Berkshire has reduced its outstanding share count by 12% thanks to buybacks. The buybacks boost Berkshire's earnings per share and make the stock a better value.
Berkshire is a complicated business. But at its core, the value comes from its public equity portfolio, cash, insurance business, BNSF railroad, BHE, and its manufacturing, service, and retailing segment.
Berkshire stock looks cheap even when assigning conservative values to all these moving parts. And for that reason, the blue chip stock is worth buying 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. Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Tesla, and Union Pacific. 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 big four are its stake in Apple (NASDAQ: AAPL) stock, the company's property and casualty insurance business, its complete ownership of BNSF railroad, and its 92% ownership of Berkshire Hathaway Energy (BHE). BHE generates, transmits, stores, distributes, and supplies energy, serving 5.2 million retail customers and five U.S. interstate natural gas pipeline companies with over 21,000 miles of pipe. But at its core, the value comes from its public equity portfolio, cash, insurance business, BNSF railroad, BHE, and its manufacturing, service, and retailing segment. | The big four are its stake in Apple (NASDAQ: AAPL) stock, the company's property and casualty insurance business, its complete ownership of BNSF railroad, and its 92% ownership of Berkshire Hathaway Energy (BHE). 2022 2021 2020 Insurance-Underwriting ($90 million) $728 million $657 million Insurance-Investment Income $6.484 billion $4.807 billion $5.039 billion Railroad $5.946 billion $5.99 billion $5.161 billion Utilities and Energy $3.904 billion $3.572 billion $3.141 billion Manufacturing, Service, and Retailing $12.512 billion $11.120 billion $8.3 billion Data source: Berkshire Hathaway. But at its core, the value comes from its public equity portfolio, cash, insurance business, BNSF railroad, BHE, and its manufacturing, service, and retailing segment. | The big four are its stake in Apple (NASDAQ: AAPL) stock, the company's property and casualty insurance business, its complete ownership of BNSF railroad, and its 92% ownership of Berkshire Hathaway Energy (BHE). The not-so-hidden gem Berkshire generates profits from its manufacturing, service, and retailing business, which booked $12.51 billion in net earnings in 2022, $11.12 billion in 2021, and $8.3 billion in 2020. 2022 2021 2020 Insurance-Underwriting ($90 million) $728 million $657 million Insurance-Investment Income $6.484 billion $4.807 billion $5.039 billion Railroad $5.946 billion $5.99 billion $5.161 billion Utilities and Energy $3.904 billion $3.572 billion $3.141 billion Manufacturing, Service, and Retailing $12.512 billion $11.120 billion $8.3 billion Data source: Berkshire Hathaway. | The big four are its stake in Apple (NASDAQ: AAPL) stock, the company's property and casualty insurance business, its complete ownership of BNSF railroad, and its 92% ownership of Berkshire Hathaway Energy (BHE). Valuing Berkshire's insurance business on its float alone, which would be very conservative considering these businesses are likely worth far more than that, would make it worth around $162 billion. Valuing Berkshire Hathaway Berkshire Hathaway is a very complicated business. |
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12286.0 | 2023-12-03 00:00:00 UTC | Disney Stock Has 2x Upside If It Rises To Pre-Inflation Shock Highs Of $202 Per Share | AAPL | https://www.nasdaq.com/articles/disney-stock-has-2x-upside-if-it-rises-to-pre-inflation-shock-highs-of-%24202-per-share | Disney stock (NYSE:DIS) currently trades at $92.50 per share, about 54% below its pre-inflation shock high of about $202 seen on March 8, 2021. The sell-off has been driven primarily by Disney’s streaming business, which faces multiple headwinds. While Disney has invested considerably into the business, it remains deeply lossmaking, with its subscriber count in recent quarters declining amid mounting competition and the loss of crucial cricket streaming rights in India. Disney also posted mixed results over Q4 FY’23. While revenue missed estimates, rising by 5% year-over-year to $21.24 billion, adjusted earnings came in better than expected at $0.82 per share. While Disney stock was trading at a low of about $84 back in December 2022, it recovered to about $110 by June 2023 following the return of Bob Iger as CEO. However, the settlement with Charter Communications – which will involve Disney removing smaller, underperforming channels from cable bundles – is having some impact on the stock.
Looking at a slightly longer term, DIS stock has suffered a sharp decline of 45% from levels of $180 in early January 2021 to around $95 now, vs. an increase of about 20% for the S&P 500 over this roughly 3-year period. Notably, DIS stock has underperformed the broader market in each of the last 3 years. Returns for the stock were -15% in 2021, -44% in 2022, and 6% in 2023 (YTD). In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 19% in 2023 (YTD) – indicating that DIS underperformed the S&P in 2021, 2022, and 2023.
In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Communication Services sector including GOOG, META, and NFLX, and even for the megacap stars TSLA, MSFT, and AMZN. In contrast, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could DIS face a similar situation as it did in 2021, 2022, and 2023 and underperform the S&P over the next 12 months – or will it see a recovery?
Now, the stock could have considerable potential for gains if it recovers to 2021 levels. Returning to the pre-inflation shock level means that Disney stock will have to gain about 118% if the stock recovers from $92.5 currently to its pre-shock highs of $202 per share. While it’s possible that over time the stock may recover to those levels, driven in part by increasing interest in the stock from activist investors, we presently estimate Disney valuation to be around $113 per share, about 22% ahead of the current market price. While Disney stock is undervalued, we think that the upside for the company in the near term could be limited by slower subscriber growth on the streaming side due to mounting competition. Our detailed analysis of Disney’s upside post-inflation shock captures trends in the company’s stock during the turbulent market conditions seen recently. It compares these trends to the stock’s performance during the 2008 recession.
2022 Inflation Shock
Timeline of Inflation Shock So Far:
2020 – early 2021: An increase in money supply to cushion the impact of lockdowns led to high demand for goods; producers were unable to match up.
Early 2021: Shipping snarls and worker shortages from the coronavirus pandemic continue to hurt the supply
April 2021: Inflation rates cross 4% and increase rapidly
Early 2022: Energy and food prices spike due to the Russian invasion of Ukraine. Fed begins its rate hike process
June 2022: Inflation levels peak at 9% – the highest level in 40 years. S&P 500 index declines more than 20% from peak levels.
July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline
October 2022 – July 2023: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses
Since August 2023: Fed keeps interest rates unchanged to quell fears of a recession, although another rate hike remains on the cards.
In contrast, here’s how DIS stock and the broader market performed during the 2007/2008 crisis.
Timeline of 2007-08 Crisis
10/1/2007: Approximate pre-crisis peak in S&P 500 index
9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08)
3/1/2009: Approximate bottoming out of S&P 500 index
12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008)
Disney and S&P 500 Performance During 2007-08 Crisis
DIS stock declined from nearly $29 in October 2007 to $17 in March 2009 (as the markets bottomed out), implying that the stock lost over 40% of its value through the drawdown. However, the stock rebounded strongly to over $32 by early 2010. The S&P 500 Index saw a decline of 51%, falling from levels of 1,540 in September 2007 to 757 in March 2009. It then rallied 48% between March 2009 and January 2010 to reach 1,124.
Disney Fundamentals Over Recent Years
Disney’s revenues have risen from around $65 billion in 2020 to about $89 billion over the last 12 months, as the company’s theme park business saw footfalls and average spending rebound as Covid-19 lockdowns were eased. Higher revenues from the streaming business have also contributed to topline growth. While the company posted a net loss of about $2.9 billion in 2020, as the theme park operations struggled amid the Covid-19 surge, net income picked up to $ 2.35 billion by FY’23.
Conclusion
With the Fed’s efforts to tame runaway inflation rates helping market sentiment, Disney (DIS) stock has the potential for gains once fears of a potential recession are allayed.
Returns Nov 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
DIS Return 13% 6% -11%
S&P 500 Return 9% 19% 103%
Trefis Reinforced Value Portfolio 8% 27% 553%
[1] Month-to-date and year-to-date as of 11/30/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market-Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While Disney has invested considerably into the business, it remains deeply lossmaking, with its subscriber count in recent quarters declining amid mounting competition and the loss of crucial cricket streaming rights in India. In fact, consistently beating the S&P 500 – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Communication Services sector including GOOG, META, and NFLX, and even for the megacap stars TSLA, MSFT, and AMZN. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could DIS face a similar situation as it did in 2021, 2022, and 2023 and underperform the S&P over the next 12 months – or will it see a recovery? | July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline October 2022 – July 2023: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses Since August 2023: Fed keeps interest rates unchanged to quell fears of a recession, although another rate hike remains on the cards. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) Disney and S&P 500 Performance During 2007-08 Crisis DIS stock declined from nearly $29 in October 2007 to $17 in March 2009 (as the markets bottomed out), implying that the stock lost over 40% of its value through the drawdown. Conclusion With the Fed’s efforts to tame runaway inflation rates helping market sentiment, Disney (DIS) stock has the potential for gains once fears of a potential recession are allayed. | Returning to the pre-inflation shock level means that Disney stock will have to gain about 118% if the stock recovers from $92.5 currently to its pre-shock highs of $202 per share. While it’s possible that over time the stock may recover to those levels, driven in part by increasing interest in the stock from activist investors, we presently estimate Disney valuation to be around $113 per share, about 22% ahead of the current market price. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) Disney and S&P 500 Performance During 2007-08 Crisis DIS stock declined from nearly $29 in October 2007 to $17 in March 2009 (as the markets bottomed out), implying that the stock lost over 40% of its value through the drawdown. | Looking at a slightly longer term, DIS stock has suffered a sharp decline of 45% from levels of $180 in early January 2021 to around $95 now, vs. an increase of about 20% for the S&P 500 over this roughly 3-year period. Now, the stock could have considerable potential for gains if it recovers to 2021 levels. Returning to the pre-inflation shock level means that Disney stock will have to gain about 118% if the stock recovers from $92.5 currently to its pre-shock highs of $202 per share. |
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12287.0 | 2023-12-03 00:00:00 UTC | Warren Buffett's Biggest Bets: 57.1% of Berkshire Hathaway's $358 Billion Portfolio Is Invested in These 2 Stocks | AAPL | https://www.nasdaq.com/articles/warren-buffetts-biggest-bets%3A-57.1-of-berkshire-hathaways-%24358-billion-portfolio-is | Diversifying the holdings in your investment portfolio can be a valuable tool for most investors. The strategy prevents you from putting too many eggs in potentially dangerous baskets, while still leaving the door open for strong returns when big winners flourish. But diversification isn't for everyone.
Berkshire Hathaway CEO Warren Buffett is among those who believe it's unwise to spread your funds across too many bets -- so long as you have a very good grasp on what you're doing. The Oracle of Omaha has described diversification as "protection against ignorance," and his incredible track record makes it clear that he's anything but ignorant.
Buffett's hyper-concentrated approach to portfolio composition won't be a good fit for most investors, but it's undoubtedly served him well through the years. With that in mind, read on for a look at two stock holdings that account for 57.1% of Berkshire Hathaway's current stock holdings.
The rare situation where it's best not to emulate Warren Buffett
Parkev Tatevosian: Apple (NASDAQ: AAPL) is one of the most innovative companies in the world, and that undoubtedly is one of the reasons it's attractive to Buffett. Additionally, Apple has built one of the stickiest ecosystems ever. Roughly 48.6% of Berkshire Hathaway's portfolio is invested in Apple stock as of this writing. But not for the reason you might suspect.
Apple is an excellent company that warrants interest from investors. The company has increased revenue from $183 billion in 2014 to $383 billion in 2023. Moreover, Apple's brand recognition and strong relationship with customers has allowed it to charge premium prices for its portfolio of products, including the headliner iPhone. Of course, with relatively higher prices comes higher profits, and Apple has shown success on that front. Operating income increased from $53 billion to $114 billion in the same years mentioned above.
But it's still surprising to me that Berkshire Hathaway has roughly half of its portfolio in one stock. Diversifying your holdings across several stocks is best for most investors.
The fact that a professional like Buffett operates a concentrated portfolio surprises me. This is one of those cases for investors where I would say, "Don't try this at home." A skilled, experienced manager like Buffett might pull it off, but it's not advisable for investors to ignore the benefits of diversification.
Bank of America is one of Buffett's big winners
Keith Noonan: Bank of America (NYSE: BAC) has been one of Berkshire Hathaway's biggest winners over the lpst decade, but Buffett has had a somewhat complicated relationship with the financial services company. Berkshire started investing in BofA in 2007 -- just as a big financial crisis was kicking off.
By the fourth quarter of 2010, Berkshire had sold all of its Bank of America stock. The financial services giant had continued to struggle due to lingering impacts of the Great Recession and the subprime mortgage debacle, and it faced additional risk factors related to concerns about the overall macroeconomic outlook and whether the U.S. debt ceiling would be raised.
But Buffett had a change of heart on BofA stock. With the banking giant potentially needing an injection of capital to stave off risks of liquidity shortfalls, the Oracle of Omaha approached the company's CEO with a deal to strengthen the bank's financial footing. Berkshire ultimately bought $5 billion worth of Bank of America's preferred stock in 2011 and secured the opportunity to purchase 700 million additional shares of common stock through exercisable warrants at a price of $7.14 per share.
Roughly six years later, Berkshire to exercise those warrants. At the time, Bank of America was trading north of $24 per share, which means that Berkshire almost immediately secured a massive profit.
Today, Bank of America stock is trading in the range of $29.50 per share, and Berkshire has seen paper gains more than quadrupling the price it paid to exercise the stock warrants. Even better, BofA has delivered big dividend growth over the last decade as its financial footing has improved, so the total return on Buffett's biggest banking play is actually even stronger.
At 8.5% of Berkshire Hathaway's portfolio, BofA stands as the investment conglomerate's second-largest stock holding. Berkshire also holds a stake in the bank totaling 13%, and it wouldn't be surprising to see the Oracle of Omaha add to the position in the coming years.
10 stocks we like better than Apple
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Keith Noonan has no position in any of the stocks mentioned. Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple, Bank of America, 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. | The rare situation where it's best not to emulate Warren Buffett Parkev Tatevosian: Apple (NASDAQ: AAPL) is one of the most innovative companies in the world, and that undoubtedly is one of the reasons it's attractive to Buffett. Moreover, Apple's brand recognition and strong relationship with customers has allowed it to charge premium prices for its portfolio of products, including the headliner iPhone. The financial services giant had continued to struggle due to lingering impacts of the Great Recession and the subprime mortgage debacle, and it faced additional risk factors related to concerns about the overall macroeconomic outlook and whether the U.S. debt ceiling would be raised. | The rare situation where it's best not to emulate Warren Buffett Parkev Tatevosian: Apple (NASDAQ: AAPL) is one of the most innovative companies in the world, and that undoubtedly is one of the reasons it's attractive to Buffett. Berkshire Hathaway CEO Warren Buffett is among those who believe it's unwise to spread your funds across too many bets -- so long as you have a very good grasp on what you're doing. Bank of America is one of Buffett's big winners Keith Noonan: Bank of America (NYSE: BAC) has been one of Berkshire Hathaway's biggest winners over the lpst decade, but Buffett has had a somewhat complicated relationship with the financial services company. | The rare situation where it's best not to emulate Warren Buffett Parkev Tatevosian: Apple (NASDAQ: AAPL) is one of the most innovative companies in the world, and that undoubtedly is one of the reasons it's attractive to Buffett. Bank of America is one of Buffett's big winners Keith Noonan: Bank of America (NYSE: BAC) has been one of Berkshire Hathaway's biggest winners over the lpst decade, but Buffett has had a somewhat complicated relationship with the financial services company. Berkshire ultimately bought $5 billion worth of Bank of America's preferred stock in 2011 and secured the opportunity to purchase 700 million additional shares of common stock through exercisable warrants at a price of $7.14 per share. | The rare situation where it's best not to emulate Warren Buffett Parkev Tatevosian: Apple (NASDAQ: AAPL) is one of the most innovative companies in the world, and that undoubtedly is one of the reasons it's attractive to Buffett. Bank of America is one of Buffett's big winners Keith Noonan: Bank of America (NYSE: BAC) has been one of Berkshire Hathaway's biggest winners over the lpst decade, but Buffett has had a somewhat complicated relationship with the financial services company. Berkshire also holds a stake in the bank totaling 13%, and it wouldn't be surprising to see the Oracle of Omaha add to the position in the coming years. |
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12288.0 | 2023-12-03 00:00:00 UTC | 3 Top Gaming Stocks to Buy in December | AAPL | https://www.nasdaq.com/articles/3-top-gaming-stocks-to-buy-in-december-0 | Video games are one of the most consistently growing tech markets, benefiting from never-ending demand for new content and hardware upgrades. The industry has multiple decades under its belt but has kept consumers coming back with innovative and engaging products. Data from Statista shows the video game market is projected to hit $250 billion this year and expand at a compound annual growth rate of 9% through 2028.
The sector has transformed in recent years to include new revenue-generating avenues, such as microtransactions, mobile games, and subscription-based game services. As a result, it's not a bad idea to dedicate a portion of your portfolio to the video game market and profit from its gradual growth for decades.
Here are three top gaming stocks to buy in December.
1. Nvidia
Nvidia (NASDAQ: NVDA) has become a favorite on Wall Street this year. Its growing prospects in artificial intelligence (AI) sent its shares soaring 220% since Jan. 1. However, long before its prominence in AI, Nvidia had a powerful position in gaming.
The company's graphics processing units (GPUs) are popular among PC gamers who use Nvidia's hardware to build powerful gaming machines. Additionally, the tech giant designs semi-custom chips for one of the world's most popular game consoles, the Nintendo Switch. Nvidia's gaming segment posted revenue growth of 81% year over year in the third quarter of 2023, showing signs of recovery from last year's economic downturn.
Nvidia is powering multiple areas of gaming with its chips, making its stock one of the best ways to invest in the industry. Meanwhile, its dominance in AI only strengthens its gaming potential, as it can offer video game companies access to immensely powerful hardware.
The company's price-to-earnings ratio (P/E) of 62 is pretty high right now and suggests its shares are expensive. However, both Nvidia's P/E and price-to-free cash flow have declined by over 70% since July, indicating its shares are much cheaper than just a few months ago. And as chip stocks go, Nvidia's P/E is significantly lower than AMD's, which has soared over 1,000. Alongside a powerful position in gaming and AI, it's worth buying Nvidia this month before its stock rises any higher.
2. Microsoft
Microsoft (NASDAQ: MSFT) wasn't always successful in video games, launching its Xbox brand in 2001 with the release of its first console. The American company took a gamble by entering a highly competitive sector that Japanese companies like Nintendo and Sony had long dominated.
However, Microsoft has come a long way in the last 20 years. It's now among the top four biggest public game companies by revenue, as of the second quarter of 2023.
The tech giant hit a major milestone in its gaming journey in 2017 when it debuted Xbox Game Pass, a subscription-based service that offers members access to an extensive library of games for a small monthly fee. Game Pass has often been described as Netflix for games. One of its biggest selling points is that subscribers can play brand-new Microsoft titles on day one of their releases at no extra charge.
From 2020 to 2022, Game Pass members rose 150% to 25 million. The platform added significant value to Microsoft's Xbox console, removing the need for consumers to pay individually for games, as was necessary on competing consoles. Moreover, Microsoft's acquisition of Activision Blizzard this year will further boost Game Pass with its catalog of popular titles, such as Call of Duty and Overwatch.
Microsoft's future is bright as we head into the new year, making its shares a compelling option for anyone looking to invest in video games this December. The company's average 12-month price target is currently at $407, projecting stock growth of about 9%. Meanwhile, 48 out of 53 analysts currently rate its stock as a buy/strong buy. With a recent acquisition and a budding AI business, the tech giant is likely to at least match that growth and potentially soar far higher. As a result, its stock is worth picking up this month.
3. Apple
Apple (NASDAQ: AAPL) might not be the first company you think of in a gaming discussion, but it has a potent position in the sector with the success of its App Store. In 2022, 66% of App Store spending came from mobile games, earning $110 billion of the platform's $167 billion. Mobile games have been so lucrative for Apple that the tech giant is the world's third-largest video game company by revenue.
App Store earnings are housed under Apple's services segment, which also includes income from subscription platforms like Apple TV+, iCloud, Music, and more. Services have quickly become the company's second-highest earnings segment after the iPhone and are on track to eventually take the top spot.
In fiscal 2022, services revenue growth hit 14% year over year, double that of the iPhone. Then, in 2023, services delivered 9% growth, while Apple's smartphone business declined by 2%.
Mobile games are a highly profitable business for Apple. This is likely to expand as smartphones grow more powerful and allow for better gaming. Meanwhile, new device options, such as the company's soon-to-be-released Vision Pro virtual/augmented reality headset, could unlock new earning opportunities in the industry.
Data by YCharts
Apple shares have risen 320% since 2018, illustrating the reliability of its stock. Additionally, the chart above shows Apple has the lowest P/E and price-to-free cash flow of any stock on this list, making it one of the cheapest high profile investment options in tech and gaming. The company offers a unique but lucrative way to invest in video games, so consider its stock this December.
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Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Microsoft, Netflix, and Nvidia. The Motley Fool recommends Nintendo. 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) might not be the first company you think of in a gaming discussion, but it has a potent position in the sector with the success of its App Store. Data from Statista shows the video game market is projected to hit $250 billion this year and expand at a compound annual growth rate of 9% through 2028. Moreover, Microsoft's acquisition of Activision Blizzard this year will further boost Game Pass with its catalog of popular titles, such as Call of Duty and Overwatch. | Apple Apple (NASDAQ: AAPL) might not be the first company you think of in a gaming discussion, but it has a potent position in the sector with the success of its App Store. Data from Statista shows the video game market is projected to hit $250 billion this year and expand at a compound annual growth rate of 9% through 2028. Meanwhile, its dominance in AI only strengthens its gaming potential, as it can offer video game companies access to immensely powerful hardware. | Apple Apple (NASDAQ: AAPL) might not be the first company you think of in a gaming discussion, but it has a potent position in the sector with the success of its App Store. Meanwhile, its dominance in AI only strengthens its gaming potential, as it can offer video game companies access to immensely powerful hardware. The tech giant hit a major milestone in its gaming journey in 2017 when it debuted Xbox Game Pass, a subscription-based service that offers members access to an extensive library of games for a small monthly fee. | Apple Apple (NASDAQ: AAPL) might not be the first company you think of in a gaming discussion, but it has a potent position in the sector with the success of its App Store. Data from Statista shows the video game market is projected to hit $250 billion this year and expand at a compound annual growth rate of 9% through 2028. Alongside a powerful position in gaming and AI, it's worth buying Nvidia this month before its stock rises any higher. |
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12289.0 | 2023-12-03 00:00:00 UTC | Guru Fundamental Report for AAPL | AAPL | https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-24 | 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.
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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12290.0 | 2023-12-03 00:00:00 UTC | GRAPHIC-Resurgent S&P 500 crests new 2023 closing high after roller-coaster year | AAPL | https://www.nasdaq.com/articles/graphic-resurgent-sp-500-crests-new-2023-closing-high-after-roller-coaster-year-0 | By Lewis Krauskopf
Dec 1 (Reuters) - A searing late-year rally has brought the S&P 500 .SPX to a fresh 2023 closing high, as investors bet the Federal Reserve is done raising interest rates and the U.S. economy will remain resilient in the face of tighter monetary policy.
The benchmark index closed at 4,594.63, nearly 6 points above its previous closing high for 2023 set in late July. The index gained 0.6% on Friday after bullish investors grew more confident the rate cycle had peaked following comments from Fed Chair Jerome Powell.
Signs that inflation is cooling after reaching a four-decade high last year have made investors more confident that the Fed will start cutting rates sooner than expected.
At the same time, the Fed’s aggressive rate increases so far appear to have done little damage to the U.S. economy, despite fears that tighter monetary policy would hurt growth. The S&P 500 is up over 19% year-to-date after posting its biggest monthly rise in over a year in November. The index stood about 4% below its all-time closing high from January 2022.
Stocks have faced down several crises this year, starting with the implosion of Silicon Valley Bank in March that sparked worries over the health of the broader banking system.
A legislative showdown over raising the U.S. debt ceiling became a key concern for investors months later, with equities gaining support once a deal was reached.
The S&P 500 reached its previous 2023 closing high on July 31, also spurred in part by excitement over developments in artificial intelligence technology.
A steady rise in Treasury yields - which dulled the allure of stocks compared to bonds and other investments - began eroding those gains, resulting in a sell-off that eventually erased more than half of the index’s year-to-date advance.
However, many investors came away from the Fed’s Nov. 1 meeting more confident that the central bank was close to wrapping up its rate increases. Data on Nov. 14 showed that consumer prices were unchanged on a monthly basis for October, the first such reading in more than a year, sparking a sizable stock rally.
Federal funds futures, a widely used security for hedging short-term interest rate risk, imply a Fed funds rate of 4.54% by the end of July, versus 5.12% expected three months ago for that period, according to LSEG data.
Cooling inflation has been accompanied by little of the economic damage that many expected to come with the Fed’s rate hikes - giving rise to hopes of a so-called Goldilocks scenario where the central bank is able to staunch the growth in consumer prices without badly hurting growth.
The economy appears to have avoided a recession this year that was widely forecast at the beginning of 2023, though growth in key areas such as employment has slowed. The Citigroup Economic Surprise Index .CESIUSD, which measures how economic data performs versus expectations, has been positive for virtually all of 2023.
Of course, some investors worry that the cumulative effects of the Fed’s 525 basis points of tightening are only starting to manifest and will eventually cool growth far more than currently expected.
A cadre of massive stocks has been the key engine of most of the S&P 500’s 2023 gains thanks to their outsized weightings in the index. The so-called "Magnificent Seven" -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Platforms META.O and Tesla TSLA.O -- have seen stock gains of between about 47% and 220% so far this year.
The companies perceived safety as investments given their size and competitive advantages has benefited the stocks, while a number of them have also been fueled by enthusiasm about the profit potential of artificial intelligence.
The megacaps' outperformance has increased their combined weight to well over one-fourth of the entire S&P 500, meaning the stocks' moves have outsized influence on the benchmark index.
To be sure, the S&P 500’s rapid rise has also made it richly valued compared to its historic levels, which could be an obstacle for the rally.
The S&P 500 currently trades at roughly 19 times forward earnings estimates, compared to a historical average of 15.6 times.
GRAPHIC-S&P 500 timeline https://tmsnrt.rs/3SWqXXA
GRAPHIC-Citi US economic surprise index https://tmsnrt.rs/3MXgBTA
GRAPHIC-S&P 500 weight of 7 megacaps https://tmsnrt.rs/3RbxZX2
GRAPHIC-S&P 500 forward P/E https://tmsnrt.rs/3MUCItE
(Reporting by Lewis Krauskopf; Additional reporting by Noel Randewich and Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and Nick Zieminski)
(([email protected]; Twitter: @LKrauskopf;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The so-called "Magnificent Seven" -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Platforms META.O and Tesla TSLA.O -- have seen stock gains of between about 47% and 220% so far this year. By Lewis Krauskopf Dec 1 (Reuters) - A searing late-year rally has brought the S&P 500 .SPX to a fresh 2023 closing high, as investors bet the Federal Reserve is done raising interest rates and the U.S. economy will remain resilient in the face of tighter monetary policy. Signs that inflation is cooling after reaching a four-decade high last year have made investors more confident that the Fed will start cutting rates sooner than expected. | The so-called "Magnificent Seven" -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Platforms META.O and Tesla TSLA.O -- have seen stock gains of between about 47% and 220% so far this year. The benchmark index closed at 4,594.63, nearly 6 points above its previous closing high for 2023 set in late July. Signs that inflation is cooling after reaching a four-decade high last year have made investors more confident that the Fed will start cutting rates sooner than expected. | The so-called "Magnificent Seven" -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Platforms META.O and Tesla TSLA.O -- have seen stock gains of between about 47% and 220% so far this year. Signs that inflation is cooling after reaching a four-decade high last year have made investors more confident that the Fed will start cutting rates sooner than expected. Cooling inflation has been accompanied by little of the economic damage that many expected to come with the Fed’s rate hikes - giving rise to hopes of a so-called Goldilocks scenario where the central bank is able to staunch the growth in consumer prices without badly hurting growth. | The so-called "Magnificent Seven" -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Platforms META.O and Tesla TSLA.O -- have seen stock gains of between about 47% and 220% so far this year. At the same time, the Fed’s aggressive rate increases so far appear to have done little damage to the U.S. economy, despite fears that tighter monetary policy would hurt growth. However, many investors came away from the Fed’s Nov. 1 meeting more confident that the central bank was close to wrapping up its rate increases. |
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12291.0 | 2023-12-03 00:00:00 UTC | Got $1,000? 4 Buffett Stocks to Buy and Hold Forever | AAPL | https://www.nasdaq.com/articles/got-%241000-4-buffett-stocks-to-buy-and-hold-forever | If you have a long time horizon to invest, you can see incredible gains with even a low starting sum. The best way to increase your gains is to add over time and let the magic of compounding do its job.
Investing legend Warren Buffett is a big proponent of holding for the long term and has famously said that his favorite holding period is forever. If you would have invested $1,000 in his holding company, Berkshire Hathaway, 30 years ago, even with no addition, you'd have more than $30,000 today.
You can still invest in Berkshire Hathaway today and likely watch your money grow. You can also choose Buffett stocks that work for your individual portfolio needs. Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), American Express (NYSE: AXP), and Bank of America (NYSE: BAC) are four top picks.
1. Apple: Buffett's largest position
Berkshire Hathaway owns more Apple stock than any other, by far. Apple accounts for more than 48% of its equity portfolio.
Buffett doesn't love tech stocks, but Apple can be viewed as a consumer electronics company with an incredible moat in its high-innovation ecosystem that generates loyalty and sales. When customers buy an iPhone or a Mac, they often end up buying other Apple products, which work well together and often address pain points with other consumer tech products. This has expanded from smartphones and laptops into iPads, iPods, smart watches, and more, creating a cadre of Apple customers who often line up to buy the newest iterations of favored products.
On top of that, it has created an entire suite of high-margin services available throughout its ecosystem that support consumer loyalty and drive higher sales and profits. These are things like Apple Pay, which has become a popular digital payments service, and iCloud storage solutions. In fact, although total revenue declined slightly by 1% in the 2023 fiscal fourth quarter (ended Sept. 30), services revenue reached an all-time high.
Apple has delighted customers who continue to engage with and purchase new products and services, and this loyal customer base should drive strong revenue growth for many years.
2. Coca-Cola: Participating in the American story
Coca-Cola is Buffett's longest-held stock. He has said that Coca-Cola, as the largest beverage company in the world, with a global, loyal fan base, should be around for decades as a company participating in the U.S. economy. He himself has said that he would never sell Coca-Cola stock.
In many ways, it's a classic Buffett stock. It has incredible cash flow, with a strong brand and excellent management. It also pays an attractive dividend, which yields 3.2% at the current price, and has demonstrated a rock-solid commitment to paying -- and raising -- the dividend under most conditions. Early in the pandemic, when sales were declining by double digits, the payout ratio -- or how much net income is devoted to the dividend -- rose above 100%. In general, though, it's around 75%. That's high, but it fits for a large, established industry giant that provides shareholder value through passive income, saving about a quarter of its cash for growth and innovations.
Coca-Cola is a Dividend King and has raised its dividend annually for the past 61 years. It's a great source of reliable passive income for value investors or those looking for a stable dividend stock in a diversified portfolio.
3. American Express: Strong relationships drive net income
American Express is another classic Buffett pick that has many of the same features as Coca-Cola. It has strong relationships with its loyal clientele, which it leverages into annual fees that support net income growth. It generates large amounts of cash, and it pays a dividend.
Although it's not as big as credit card processing network Visa, it serves a niche clientele that's affluent, resilient, and engaged. This kind of client base is able to spend more freely than the broader population and is less susceptible to changes in interest rates and inflation. What's more, they pay the annual fee regardless of how much they spend.
American Express has made several changes to its model in recent years, and I'll split them into two categories: Targeting a younger cardmember population, and expanding its services.
The pivot to a younger client cohort has been extremely successful. Millennials and Gen Z customers are the fastest-growing cohort by age group and accounted for 60% of spending in the third quarter. Their sales increased 18% year over year, outpacing overall spending growth of 7%.
As for expanding services, American Express has started to offer a large suite of small business services that add value to its merchant client base. It also offers checking and savings accounts, generating greater value from its large customer base as it cross-sells new products.
4. Bank of America: The people's bank
Buffett is known for his love of bank stocks, but he clearly likes some more than others, and he loves Bank of America. That goes back to his understanding of great stocks as those that will participate in the economy in the future. Bank of America, or BofA, is more consumer-focused than other big banks. That could be one reason Buffett sees it as having a long-term position in the American story, making it a compelling stock to own.
Bank of America has felt the effect of inflation and higher interest rates, but it's already bouncing back. Net income increased 10% year over year in Q3, with a net interest margin of 4%.
As usual, consumer banking was strong. It added 200,000 new checking accounts in Q3 2023, and 1.1 million credit cards in the consumer banking division. Consumer investment accounts increased 10% to 3.8 million. Net income fell 7% from last year in consumer banking because of rising defaults, consistent with economic trends.
That's where BofA's other segments work to pick up the slack. Its investment banking is now third-largest in the U.S. in fees, and it added 1,900 new clients in Q3. The global banking division increased net income 26% in the quarter.
Bank of America continues to engage with recruiting new customers throughout its divisions, generates lots of cash, and has a long runway in driving the U.S. economy. It also pays a dividend that yields a market-beating 3.2% at the current price.
These four stocks create the backbone of Berkshire Hathaway's $360 billion portfolio, and they can add value to an individual stock market account.
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American Express is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Jennifer Saibil has positions in American Express. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Visa. 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 (NASDAQ: AAPL), Coca-Cola (NYSE: KO), American Express (NYSE: AXP), and Bank of America (NYSE: BAC) are four top picks. Buffett doesn't love tech stocks, but Apple can be viewed as a consumer electronics company with an incredible moat in its high-innovation ecosystem that generates loyalty and sales. This has expanded from smartphones and laptops into iPads, iPods, smart watches, and more, creating a cadre of Apple customers who often line up to buy the newest iterations of favored products. | Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), American Express (NYSE: AXP), and Bank of America (NYSE: BAC) are four top picks. American Express: Strong relationships drive net income American Express is another classic Buffett pick that has many of the same features as Coca-Cola. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Visa. | Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), American Express (NYSE: AXP), and Bank of America (NYSE: BAC) are four top picks. American Express: Strong relationships drive net income American Express is another classic Buffett pick that has many of the same features as Coca-Cola. Bank of America: The people's bank Buffett is known for his love of bank stocks, but he clearly likes some more than others, and he loves Bank of America. | Apple (NASDAQ: AAPL), Coca-Cola (NYSE: KO), American Express (NYSE: AXP), and Bank of America (NYSE: BAC) are four top picks. American Express: Strong relationships drive net income American Express is another classic Buffett pick that has many of the same features as Coca-Cola. The global banking division increased net income 26% in the quarter. |
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12292.0 | 2023-12-03 00:00:00 UTC | These 2 Artificial Intelligence (AI) Stocks Could Zoom Past $4 Trillion in 2024, According to Wall Street | AAPL | https://www.nasdaq.com/articles/these-2-artificial-intelligence-ai-stocks-could-zoom-past-%244-trillion-in-2024-according-to | Wall Street is already talking about two stocks that could reach $4 trillion market caps as soon as next year.
Artificial intelligence (AI) has been the driving force behind these two companies in 2023, and it'll likely continue to be the story of the year in 2024. Recent advancements in the technology popularized by OpenAI's ChatGPT have ushered in a new era of AI investments.
With businesses and investors clamoring for more AI hardware and software, there are bound to be a lot of winners. Wedbush analyst Dan Ives sees trillions of dollars flowing into tech stocks with AI applications over the next couple of years. And he thinks there's a reasonable chance at least $2 trillion of that goes into Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), pushing each of their market caps past $4 trillion.
Here's why it could happen.
Apple is quietly an artificial intelligence giant
Apple made huge advancements in artificial intelligence over the last decade. It just doesn't call it out like a lot of other companies have over the last year.
True to Apple form, it talks about the consumer benefit of new AI-powered features across its product line. It doesn't try to explain the AI magic behind those features. During Apple's fiscal fourth-quarterearnings callin early November, CEO Tim Cook pointed to personal voice and live voicemail features on the new iOS as well as fall detection, crash detection, and abnormal ECG detection on Apple Watch. Those are all powered by AI.
Cook also says the company's investing quite a bit in generative AI. In fact, it's built its own large language model and it's internally testing its own ChatGPT-style chatbot, according to Bloomberg. The company's on track to spend about $1 billion per year on its generative AI efforts.
Apple can afford to take its time in developing AI because its real advantage is that it owns the computing platform people use most. It has over 2 billion active devices, and it's the most popular smartphone platform in the United States. So when Apple launches a generative AI app like a Siri or iMessage chatbot, it has a built-in audience.
Ives sees Apple leveraging its position to support AI next year through an "AI app store." Apple can highlight and support generative AI applications that run on-device, maintaining user privacy and security. If Apple takes its standard 30% cut, it could be a big business.
To reach a $4 trillion market cap, Apple shares will have to climb about 35% in 2024. Investors can reasonably expect a turnaround in revenue growth, continued expansion in margins, and potential tailwinds from Apple's own AI-powered products and services as well as the industrywide trend. Apple can outperform the market again in 2024, and it'll likely reach $4 trillion at some point, if not next year.
Redefining Microsoft with artificial intelligence
Microsoft managed to redefine itself multiple times, and it's using AI to do it again.
Its core AI service is called Copilot, and it's applying the technology across business applications. It's helping sales teams at over 15,000 organizations personalize customer interactions. It's helping clinicians document patient care and draft notes. It's working on dozens of applications for enterprise-level software. It also foresees everyday knowledge workers using Copilot in its Office suite to be more creative or find new insights in their data.
Importantly, Microsoft's current position as a leading enterprise software provider makes it easy to upsell its Copilot applications (at $30 per seat) to its massive existing customer base.
Microsoft has been more outspoken about its AI investments than Apple. It increased its investment in OpenAI at the start of 2023, and it now owns 49% of the company. It's integrated OpenAI's technology closely with its own.
Microsoft generates tens of billions of dollars from its operating system and enterprise software business that it can reinvest in advancing AI technology. That kind of capital gives it a huge advantage over smaller competitors working on similar problems.
But Microsoft's main advantage is similar to Apple's. It's a platform owner. Its investment in OpenAI was a smart move because it positioned Microsoft's cloud computing business, Azure, as the leading public cloud for AI developers. Indeed, management called out higher-than-expected AI consumption as a key driver of Azure's outperformance last quarter. The business grew revenue 29%, significantly faster than its competitors.
To reach a $4 trillion market cap, Microsoft shares will have to climb about 42%. With its strong cloud computing performance and the momentum of Copilot, it should see accelerating revenue growth while maintaining its stellar margins. Reaching $4 trillion will give it a valuation above 40x FY2025 earnings, but considering its potential for strong earnings growth for years to come thanks to its AI investments, it could actually reach the milestone before Apple.
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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. | And he thinks there's a reasonable chance at least $2 trillion of that goes into Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), pushing each of their market caps past $4 trillion. Wedbush analyst Dan Ives sees trillions of dollars flowing into tech stocks with AI applications over the next couple of years. Investors can reasonably expect a turnaround in revenue growth, continued expansion in margins, and potential tailwinds from Apple's own AI-powered products and services as well as the industrywide trend. | And he thinks there's a reasonable chance at least $2 trillion of that goes into Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), pushing each of their market caps past $4 trillion. Ives sees Apple leveraging its position to support AI next year through an "AI app store." Investors can reasonably expect a turnaround in revenue growth, continued expansion in margins, and potential tailwinds from Apple's own AI-powered products and services as well as the industrywide trend. | And he thinks there's a reasonable chance at least $2 trillion of that goes into Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), pushing each of their market caps past $4 trillion. Ives sees Apple leveraging its position to support AI next year through an "AI app store." Microsoft has been more outspoken about its AI investments than Apple. | And he thinks there's a reasonable chance at least $2 trillion of that goes into Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), pushing each of their market caps past $4 trillion. Wall Street is already talking about two stocks that could reach $4 trillion market caps as soon as next year. It just doesn't call it out like a lot of other companies have over the last year. |
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12293.0 | 2023-12-03 00:00:00 UTC | Got $2,500? 2 Top Stocks That You Can Buy and Hold for a Lifetime | AAPL | https://www.nasdaq.com/articles/got-%242500-2-top-stocks-that-you-can-buy-and-hold-for-a-lifetime-7 | Legendary investor Warren Buffett once said that someone is sitting in the shade today because someone planted a tree a long time ago. It's a great quote about long-term thinking, which translates directly to building wealth through investing.
The goal of any long-term investor should be to find great companies and hold them for a lifetime, letting them lift your portfolio for you. However, that's not easy, because so few companies deserve permanent places in your portfolio.
Buffett's Berkshire Hathaway (NYSE: BRK.B) and technology giant Microsoft (NASDAQ: MSFT) might be as strong a long-term bet as you'll find in the market, and you can buy both for under $2,500. Here is what separates them from the pack.
A company led by Earth's greatest long-term investor
Berkshire Hathaway is Buffett's holding company, the crown jewel of his vaunted investing career. The company owns many businesses, brands, and positions in other public companies. Its largest business segments include railroads, oil and gas pipelines, and insurance, while blue-chip stocks like Apple, Bank of America, and Coca-Cola anchor Berkshire's stock portfolio.
Buffett built Berkshire Hathaway in his image, focusing on resilient business models that never go out of style. That's why Berkshire has owned Geico Insurance since 1995, and has held some of its stock holdings since the late 1980s. Buffett also ensures Berkshire is always well-funded; it has more than $157 billion in cash and short-term investments on its balance sheet today.
Berkshire's earnings based on generally accepted accounting principles (GAAP) fluctuate because of how many moving pieces the company has, but owning the stock is as close as you can get to having Buffett invest on your behalf. And the record speaks for itself: Berkshire's book value has exploded, beating the S&P 500 for decades.
Data source: YCharts
Nobody can guarantee the future, but there isn't much reason to doubt Berkshire. Buffett won't be there forever, which may be Berkshire's biggest risk. Still, one would think he's been preparing for the inevitable, instilling a culture that will carry the company after he's gone. Buffett has even handpicked his successor, naming Greg Abel as the company's next chief executive officer.
The technology titan that keeps evolving
Technology giant and personal computing pioneer Microsoft could be the world's most innovative company. It's hard to stay on top in the technology sector because innovation keeps companies on their toes and creates new competition. But not only are Microsoft's legacy products like its Windows operating system still market-leading brands today, the company has penetrated other markets with leading products, including cloud computing, video gaming, and enterprise software.
Added together, these businesses create cash flow like few others on earth. Annual revenue surpasses $218 billion, and $63 billion of that is free cash flow, an impressive 29% conversion rate. Microsoft carries $144 billion in cash and short-term investments against $71.5 billion in long-term debt from acquiring video game company Activision Blizzard. Microsoft's financials are considered so strong that the company has a coveted AAA credit rating from Standard & Poor's, higher than that of the U.S. government!
Microsoft also has long-term growth opportunities lined up. Azure is the world's second-largest cloud platform after Amazon Web Services. Demand for cloud services should explode, and is forecast to more than double to $1.24 trillion by 2028. The company has tied itself up with OpenAI, the artificial intelligence company behind ChatGPT. Despite recent uncertainty, OpenAI positions Microsoft to benefit from AI's future potential.
Data source: YCharts
You can see what successful innovation has done for the company's growth. As long as Microsoft stays aggressive, it's hard to see its fortunes reversing anytime soon. Investors can slowly buy Microsoft stock and sock it away for years. There aren't many companies you can say that about.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Microsoft. 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. | Buffett's Berkshire Hathaway (NYSE: BRK.B) and technology giant Microsoft (NASDAQ: MSFT) might be as strong a long-term bet as you'll find in the market, and you can buy both for under $2,500. Berkshire's earnings based on generally accepted accounting principles (GAAP) fluctuate because of how many moving pieces the company has, but owning the stock is as close as you can get to having Buffett invest on your behalf. Microsoft's financials are considered so strong that the company has a coveted AAA credit rating from Standard & Poor's, higher than that of the U.S. government! | But not only are Microsoft's legacy products like its Windows operating system still market-leading brands today, the company has penetrated other markets with leading products, including cloud computing, video gaming, and enterprise software. Microsoft carries $144 billion in cash and short-term investments against $71.5 billion in long-term debt from acquiring video game company Activision Blizzard. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Microsoft. | A company led by Earth's greatest long-term investor Berkshire Hathaway is Buffett's holding company, the crown jewel of his vaunted investing career. Berkshire's earnings based on generally accepted accounting principles (GAAP) fluctuate because of how many moving pieces the company has, but owning the stock is as close as you can get to having Buffett invest on your behalf. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company. | The company owns many businesses, brands, and positions in other public companies. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway wasn't one of them! The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Microsoft. |
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12294.0 | 2023-12-03 00:00:00 UTC | Apple Stock: Buy, Sell, or Hold? | AAPL | https://www.nasdaq.com/articles/apple-stock%3A-buy-sell-or-hold-4 | With a monster gain in 2023 that exceeds the Nasdaq Composite index, Apple (NASDAQ: AAPL) is again showing that it's a favorite among the investment community. And this is much needed, particularly after the stock lost an eye-watering 27% of its value in 2022. But now, with Apple shares getting close to an all-time high again, the question is this: Should investors buy, sell, or hold this leading consumer discretionary stock?
Facing a slowdown
Macro headwinds have been negatively impacting Apple in recent quarters. The company's revenue totaled $383 billion in fiscal 2023, which was down 2.8% year over year. This was the first annual sales decline since fiscal 2019. Yet, investors seem to have shrugged off this news. The stock has climbed about 7% since the announcement.
In the latest quarter, all product categories showed revenue drops, except for the iPhone. But while it was encouraging that the company's flagship product registered growth, with management even saying that iPhone 15 sales were doing better than iPhone 14 last year, CFO Luca Maestri said Apple's overall revenue in the current quarter will be "similar to last year."
The forecast for a lack of top-line gains, especially during the key holiday shopping season, is a troubling sign. It just might indicate that Apple will continue to face pressures in the near term.
Economic moat
But there are reasons to have a positive attitude about this business. Apple possesses a wide economic moat that has supported its remarkable success over the years, and should continue doing so in the future. In short, it has a powerful brand. Its popular hardware products carry a premium status in the industry, with the business exhibiting proven pricing power that hasn't deterred consumers from paying up.
That's why Apple products carry a stellar gross margin of 37% (for fiscal 2023). This is really impressive and bucks the reputation of consumer electronics being a terrible business that must always deal with falling prices.
Additionally, Apple is bolstered by what I would call "invisible" switching costs. Of course, there's nothing stopping any Apple customer from buying what a rival company offers. However, Apple's ecosystem, which consists of not only its hardware products, but also various software and services, helps to keep consumers locked in.
And with many of your friends and family likely using Apple products and services as well, there's almost no incentive to leave.
What should investors do?
Apple's stock has soared this year, and as a result, it's not cheap. The price-to-earnings (P/E) ratio of 31 is about 50% more expensive than the trailing-10-year average of nearly 21. For a mature business that depends on a product like the iPhone that is almost saturated in its most important markets, I view the chance for market-beating returns going forward as slim. This is why I don't recommend investors buy shares today.
On the flip side, the case to sell the stock may make sense. If you've been a longtime Apple shareholder, and you're sitting on fantastic gains, then it could be a smart idea to take at least some of the profits off the table -- especially if there are other attractive investment opportunities you are eyeing right now.
Readers might also just want to follow what Warren Buffett is doing. The conglomerate he runs, Berkshire Hathaway, owns 5.9% of Apple's outstanding shares, representing more than 48% of the company's equity portfolio. Berkshire remains an Apple owner. Maybe this is because of the dividends the tech giant pays, or that its share buybacks continue to increase Berkshire's ownership position.
Buffett might also not know where he would park that capital if he fully exited the Apple position. Nonetheless, while it's a great business, I don't think Apple is a buy right now.
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Neil Patel and his clients have no position in any of the stocks mentioned. 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. | With a monster gain in 2023 that exceeds the Nasdaq Composite index, Apple (NASDAQ: AAPL) is again showing that it's a favorite among the investment community. Its popular hardware products carry a premium status in the industry, with the business exhibiting proven pricing power that hasn't deterred consumers from paying up. For a mature business that depends on a product like the iPhone that is almost saturated in its most important markets, I view the chance for market-beating returns going forward as slim. | With a monster gain in 2023 that exceeds the Nasdaq Composite index, Apple (NASDAQ: AAPL) is again showing that it's a favorite among the investment community. This is why I don't recommend investors buy shares today. See the 10 stocks *Stock Advisor returns as of November 28, 2023 Neil Patel and his clients have no position in any of the stocks mentioned. | With a monster gain in 2023 that exceeds the Nasdaq Composite index, Apple (NASDAQ: AAPL) is again showing that it's a favorite among the investment community. But now, with Apple shares getting close to an all-time high again, the question is this: Should investors buy, sell, or hold this leading consumer discretionary stock? But while it was encouraging that the company's flagship product registered growth, with management even saying that iPhone 15 sales were doing better than iPhone 14 last year, CFO Luca Maestri said Apple's overall revenue in the current quarter will be "similar to last year." | With a monster gain in 2023 that exceeds the Nasdaq Composite index, Apple (NASDAQ: AAPL) is again showing that it's a favorite among the investment community. Its popular hardware products carry a premium status in the industry, with the business exhibiting proven pricing power that hasn't deterred consumers from paying up. That's right -- they think these 10 stocks are even better buys. |
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12295.0 | 2023-12-03 00:00:00 UTC | A Bull Market Could Be Here: 3 Reasons to Buy Apple Stock | AAPL | https://www.nasdaq.com/articles/a-bull-market-could-be-here%3A-3-reasons-to-buy-apple-stock | There's arguably never a bad time to own a stake in Apple (NASDAQ: AAPL). It's not only the world's biggest and most profitable company, it's also one of its most reputable corporations. It's going to be a juggernaut for a long, long time.
If the market's rekindled bullishness of late marks the beginning of a full-blown bull market, though -- and it very likely does -- that's particularly good news for current and prospective investors. See, Apple stock tends to lead the way in a bullish environment. It's likely to do the same the next time around too, for three specific reasons.
1. The next wave of iPhone upgrades is building
Investors keeping close tabs on Apple probably know sales of the recently released iPhone 15 have been decent, but far from thrilling. It's getting due credit for snapping a multi-quarter decline in worldwide smartphone sales. It's not a game-changer, though; sales in China have been notably lackluster.
This modest demand, however, isn't necessarily a sign that the iPhone is past its prime. It's just as arguable that many current cost-conscious iPhone owners are waiting for the iPhone 16, which is expected to be unveiled late next year. With a bigger battery, better camera, faster processor, and more memory -- just to name a few likely differences -- the technological leap between it and the iPhone 15 will be wider than the difference between the iPhone 15 and the iPhone 14.
Better yet, this next iteration of the popular device will be released to a market that's more than ready for it.
See, with the iPhone upgrade cycle now stretched to an estimated record of 4.4 years, analysts with Morgan Stanley suggest the coming year could be a tremendous one for Apple due to "pent-up demand from consumers deferring their iPhone purchase from FY23 [ending in September]." Indeed, should ongoing economic progress spur a new bull market, Morgan Stanley says people may end up splurging on an iPhone 15 between now and then, rather than holding out for the iPhone 16.
Either way, Apple wins.
2. Apple is getting very, very good at selling services
There was a time several years ago when Apple was an iPhone company that also sold a few other things. It didn't get serious about services -- content, apps, software -- until 2018.
What a difference five years has made! Although the iPhone is still the company's single biggest source of revenue, the services segment is a respectable second, accounting for about one-fourth of its sales.
Profit margins are markedly higher on digital services too, with 70% of this business being converted into operating income. Although Apple doesn't divulge product-specific profitability levels, it's conceivable that services could add nearly as much to the bottom line as the iPhone itself does. Indeed, given enough time, digital services could become the company's chief breadwinner, making the iPhone itself a means to a bigger end.
And Apple's gotten very, very good at making the iOS operating system incredibly "sticky," and very easy to spend money within.
How sticky? The company says there are now more than 2 billion iOS users, with reportedly around 1.5 billion of them being iPhone owners. Once someone becomes an iPhone user, they tend to stick with the familiar platform.
Meanwhile, data compiled by Asymco suggests that the average iPhone owner spends more than $10 per month on apps and digital services, trouncing Android's comparison of an average of only $1.40 per month. Those figures jibe with numbers from app industry data repository Business of Apps and GlobalStats' StatCounter, too.
As is the case with the iPhone itself, a bull market rooted in economic strength could very easily spur even more spending on apps and subscription-based digital content among iPhone owners.
3. It's still a premier brand and stock
Last but not least, Apple is a great bull market buy simply because the name itself still turns heads after all these years. Brand-management outfit Interbrand rates Apple as 2023's single best global brand, mirroring the same call made for this year by marketing analytics company Kantar. Apple's logo itself is also one of the planet's most recognizable corporate insignias.
These accolades don't come with any monetary awards. In some regards, though, they do have monetary value. It's easier to sell a product when most of the world already knows and loves the company making it. And it's easier to sell a newer version of a product the world also already knows and loves. Many of its customers are even willing to defend Apple's reputation when merited.
This reputation does more than help maintain pricing power in the smartphone marketplace. It extends to Apple shares as well. The stock is not only one of the planet's most widely owned equities, it tends to perform very well during bull markets when investors are seeking out tickers with lots of upsides but little downside. For perspective, while the S&P 500 rallied nearly 100% between March 2020 and late 2021, Apple soared on the order of 200%. It's also gained 50% just since the end of last year, versus the S&P 500's more modest gain of 18%.
There's no guarantee Apple shares will repeat the feat during the next full-blown bull market. Betting against Apple's market leadership, however, certainly doesn't seem like the right move to make.
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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. | There's arguably never a bad time to own a stake in Apple (NASDAQ: AAPL). It's still a premier brand and stock Last but not least, Apple is a great bull market buy simply because the name itself still turns heads after all these years. Brand-management outfit Interbrand rates Apple as 2023's single best global brand, mirroring the same call made for this year by marketing analytics company Kantar. | There's arguably never a bad time to own a stake in Apple (NASDAQ: AAPL). See, with the iPhone upgrade cycle now stretched to an estimated record of 4.4 years, analysts with Morgan Stanley suggest the coming year could be a tremendous one for Apple due to "pent-up demand from consumers deferring their iPhone purchase from FY23 [ending in September]." Indeed, should ongoing economic progress spur a new bull market, Morgan Stanley says people may end up splurging on an iPhone 15 between now and then, rather than holding out for the iPhone 16. | There's arguably never a bad time to own a stake in Apple (NASDAQ: AAPL). The next wave of iPhone upgrades is building Investors keeping close tabs on Apple probably know sales of the recently released iPhone 15 have been decent, but far from thrilling. See, with the iPhone upgrade cycle now stretched to an estimated record of 4.4 years, analysts with Morgan Stanley suggest the coming year could be a tremendous one for Apple due to "pent-up demand from consumers deferring their iPhone purchase from FY23 [ending in September]." | There's arguably never a bad time to own a stake in Apple (NASDAQ: AAPL). It's not only the world's biggest and most profitable company, it's also one of its most reputable corporations. See, with the iPhone upgrade cycle now stretched to an estimated record of 4.4 years, analysts with Morgan Stanley suggest the coming year could be a tremendous one for Apple due to "pent-up demand from consumers deferring their iPhone purchase from FY23 [ending in September]." |
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12296.0 | 2023-12-03 00:00:00 UTC | Got $5,000? These Are 2 of the Best Growth Stocks to Buy Right Now | AAPL | https://www.nasdaq.com/articles/got-%245000-these-are-2-of-the-best-growth-stocks-to-buy-right-now-11 | How much money do you need to get started investing? Not very much. That said, the more you start out with, the more you can make over the long run. I typically initiate new positions with around $5,000 with the possibility of adding to them over time. That's not a magic amount, but it's enough to be a significant investment.
Of course, the more important thing to consider is where to invest. If you've got $5,000 (or less, for that matter), these are two of the best growth stocks to buy right now, in my opinion.
1. PayPal Holdings
You might take one look at PayPal Holdings' (NASDAQ: PYPL) performance over the last 18 months and seriously question why it would be a growth stock to buy now. The fintech stock has plunged more than 80% below its high set in mid-2021.
PayPal has faced several challenges. The loss of former parent eBay's business a few years ago hurt. There are also plenty of new rivals on the scene, notably including Apple Pay. PayPal's profits have fallen. The company has also had turnover in its executive ranks.
But I think that PayPal is stronger than its stock performance indicates. The digital payment company's net revenue in the third quarter of 2023 rose 8% year over year to $7.4 billion. Total payment volume jumped 15% to $387.7 billion.
To be sure, PayPal's active accounts declined to 428 million from 432 million in the prior-year period. However, that's largely a result of the company flushing out less profitable customers in Latin America and Southeast Asia.
I like this emphasis on profitable growth. New CEO Alex Chriss stressed in PayPal's Q3earnings call "I can tell you right now, what I care about most is high-quality customer growth and profitable revenue growth. Going forward, PayPal will be focused on generating real profit for the company."
Most importantly, though, I think that PayPal is dirt cheap. Its shares trade at a forward earnings multiple of only 10.2x. If the company returns to solid earnings growth as I expect, I predict that more investors will recognize just how attractively valued PayPal is.
2. Vertex Pharmaceuticals
It's a much different story for Vertex Pharmaceuticals (NASDAQ: VRTX). The biotech stock continues to deliver solid gains in 2023, just as it did last year. Vertex's revenue and earnings have increased steadily. I believe, though, that the best is yet to come for this successful company.
Vertex remains the sole provider of approved therapies that treat the underlying cause of rare genetic disease cystic fibrosis (CF). It could soon add a new CF drug that's even more powerful than its current products. The company expects to report results from late-stage testing of its vanzacaftor triple-drug combo in early 2024. To add icing to the cake, Vertex will have to pay much lower royalties for the combo than it does for its other CF drugs.
The U.S. Food and Drug Administration (FDA) is scheduled to announce its approval decision for exa-cel in treating sickle cell disease by Dec. 8, 2023. The agency should make its decision on the gene-editing therapy in treating transfusion-dependent beta-thalassemia by March 30, 2024. Vertex and its partner, CRISPR Therapeutics, have already won approvals in the U.K. for both indications.
Vertex also has high hopes for its non-opioid pain drug VX-548. It expects to announce results in early 2024 from phase 3 studies in treating acute pain. The company is also evaluating VX-548 in phase 2 studies targeting peripheral neuropathic pain.
The vanzacaftor combo, exa-cel, and VX-548, along with securing additional regulatory approvals and reimbursement agreements for its already approved CF therapies, should enable Vertex to grow over the next few years. The company could have other growth drivers on the way, too.
Vertex is evaluating inaxaplin in a pivotal clinical trial targeting APOL1-mediated kidney disease (AMKD). This could be a CF-like opportunity for the company. There aren't any other approved therapies that treat the underlying cause of AMKD.
Finally, Vertex is advancing three programs in clinical testing that hold the potential to cure type 1 diabetes. It's still early, but if the company succeeds it could open up a new market that's much bigger than anything it's gone after so far.
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Keith Speights has positions in Apple, PayPal, and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Apple, CRISPR Therapeutics, PayPal, and Vertex Pharmaceuticals. The Motley Fool recommends eBay and recommends the following options: short December 2023 $67.50 puts on PayPal and short January 2024 $45 calls on eBay. 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. | If the company returns to solid earnings growth as I expect, I predict that more investors will recognize just how attractively valued PayPal is. Vertex remains the sole provider of approved therapies that treat the underlying cause of rare genetic disease cystic fibrosis (CF). The U.S. Food and Drug Administration (FDA) is scheduled to announce its approval decision for exa-cel in treating sickle cell disease by Dec. 8, 2023. | It expects to announce results in early 2024 from phase 3 studies in treating acute pain. The Motley Fool has positions in and recommends Apple, CRISPR Therapeutics, PayPal, and Vertex Pharmaceuticals. The Motley Fool recommends eBay and recommends the following options: short December 2023 $67.50 puts on PayPal and short January 2024 $45 calls on eBay. | PayPal Holdings You might take one look at PayPal Holdings' (NASDAQ: PYPL) performance over the last 18 months and seriously question why it would be a growth stock to buy now. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Keith Speights has positions in Apple, PayPal, and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Apple, CRISPR Therapeutics, PayPal, and Vertex Pharmaceuticals. | The digital payment company's net revenue in the third quarter of 2023 rose 8% year over year to $7.4 billion. 10 stocks we like better than Vertex Pharmaceuticals When our analyst team has a stock tip, it can pay to listen. The Motley Fool has positions in and recommends Apple, CRISPR Therapeutics, PayPal, and Vertex Pharmaceuticals. |
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12297.0 | 2023-12-03 00:00:00 UTC | Is Warren Buffett's Berkshire Hathaway Stock a Buy Before the End of 2023? | AAPL | https://www.nasdaq.com/articles/is-warren-buffetts-berkshire-hathaway-stock-a-buy-before-the-end-of-2023 | It is a sad time for shareholders of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), and the global investment community at large. Warren Buffett's longtime business partner Charlie Munger passed away on Nov. 28, 2023, nearly a month before reaching 100 years of age.
Buffett and Munger both have expressed confidence that the investment conglomerate they helped build will be an empire built to last. Just a week prior to Munger's passing, Buffett said as much in a letter outlining his annual charitable giving pledges:
Berkshire – one of the largest and most diversified companies in the world – will inevitably encounter human errors in judgment and behavior. These occur at all large organizations, public or private. But these mistakes are unlikely to be serious at Berkshire and will be acknowledged and corrected. We have the right CEO to succeed me and the right Board of Directors as well. Both are needed.
And who will be that next CEO? It's Berkshire's non-insurance business head Greg Abel. And Munger's replacement will be the insurance business head Ajit Jain. And what of the empire they will inherit the reins to? Are shares of Berkshire still a long-term buy for 2024?
Berkshire an ultimate all-weather "index fund"?
A year ago, after an epic rise in Berkshire Hathaway stock, I said shares of Buffett's conglomerate remained a great long-term buy, but maybe not a "best buy now." Berkshire stock rose but slightly lagged behind the rally in the S&P 500 index, and especially underperformed the Nasdaq Composite index since then.
Data by YCharts.
But there's a simple explanation for this: Berkshire is a steadier long-term investment, especially compared to the tech-heavy Nasdaq, and even to the increasingly tech-heavy S&P 500 (owing to the massive size of companies like Apple, Microsoft, and Amazon that make up a large portion of the index's composition).
That's because, outside of Berkshire Hathaway's holdings in publicly traded stocks (dominated by Apple, which makes up nearly 50% of this portfolio), the company wholly owns myriad "old and boring" but highly profitable businesses.
Included in those are insurance underwriting and investment income from those insurance company holdings (like GEICO, part of Abel's oversight). The insurance business's operating income through the first nine months of 2023 rallied 165% from depressed levels last year to $11.4 billion. Railroads (BNSF, acquired in 2008), utilities (including extensive natural gas pipelines), the newly purchased majority stake in the Pilot Travel Center business, as well as numerous manufacturing and retail companies (collectively, Jain's half of the Berkshire empire) are also having a solid year. In all, Berkshire's wholly owned subsidiaries' operating income was up 19% so far in 2023 to $28.9 billion.
Thus, the giant that Buffett and Munger helped build is a great all-weather investment, for good times and bad. Berkshire's stock performance in 2023, though slightly trailing the rebound from the 2022 bear market for the major stock indexes, is solid for a year where there has been frequent mention of recession risk. Berkshire is itself a type of index of great companies that can steadily perform no matter the economic climate of the moment.
Berkshire Hathaway a best buy before the end of 2023?
As it was this time a year ago, Berkshire Hathaway's price-to-book value (a metric Buffett and Munger have often used over the years to determine how much stock to repurchase) remains near its historic highs. This keeps me from calling it a best buy headed into 2024.
But Berkshire need not be dirt cheap to be a great buy. Regardless of that price-to-book value, shares have tended to steadily grind higher over the long term.
Data by YCharts.
After a solid rally in 2023, the S&P 500 and Nasdaq Composite indexes could have bumps in the road ahead. Berkshire stock could as well. Nevertheless, this company is built to last, and proven leadership with great investment acumen (Abel and Jain) have been installed to keep things moving in the right direction. If you're looking for a great stock you can buy and forget, Berkshire Hathaway remains a top pick as a core portfolio holding.
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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. Nicholas Rossolillo and his clients have positions in Amazon, Apple, and Berkshire Hathaway. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, 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. | Just a week prior to Munger's passing, Buffett said as much in a letter outlining his annual charitable giving pledges: Berkshire – one of the largest and most diversified companies in the world – will inevitably encounter human errors in judgment and behavior. That's because, outside of Berkshire Hathaway's holdings in publicly traded stocks (dominated by Apple, which makes up nearly 50% of this portfolio), the company wholly owns myriad "old and boring" but highly profitable businesses. Railroads (BNSF, acquired in 2008), utilities (including extensive natural gas pipelines), the newly purchased majority stake in the Pilot Travel Center business, as well as numerous manufacturing and retail companies (collectively, Jain's half of the Berkshire empire) are also having a solid year. | A year ago, after an epic rise in Berkshire Hathaway stock, I said shares of Buffett's conglomerate remained a great long-term buy, but maybe not a "best buy now." In all, Berkshire's wholly owned subsidiaries' operating income was up 19% so far in 2023 to $28.9 billion. Thus, the giant that Buffett and Munger helped build is a great all-weather investment, for good times and bad. | A year ago, after an epic rise in Berkshire Hathaway stock, I said shares of Buffett's conglomerate remained a great long-term buy, but maybe not a "best buy now." Berkshire's stock performance in 2023, though slightly trailing the rebound from the 2022 bear market for the major stock indexes, is solid for a year where there has been frequent mention of recession risk. As it was this time a year ago, Berkshire Hathaway's price-to-book value (a metric Buffett and Munger have often used over the years to determine how much stock to repurchase) remains near its historic highs. | Berkshire's stock performance in 2023, though slightly trailing the rebound from the 2022 bear market for the major stock indexes, is solid for a year where there has been frequent mention of recession risk. Berkshire stock could as well. See the 10 stocks *Stock Advisor returns as of November 29, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. |
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12298.0 | 2023-12-03 00:00:00 UTC | Wall St Week Ahead-Tax-loss selling, 'Santa rally' could sway U.S. stocks after November melt-up | AAPL | https://www.nasdaq.com/articles/wall-st-week-ahead-tax-loss-selling-santa-rally-could-sway-u.s.-stocks-after-november-0 | By David Randall
NEW YORK, Dec 1(Reuters) - As U.S. stocks sit on hefty gains at the close of a rollercoaster year, investors are eyeing factors that could sway equities in the remaining weeks of 2023, including tax loss selling and the so-called Santa Claus rally.
The key catalyst for stocks will likely continue to be the expected trajectory of the Federal Reserve's monetary policy. Evidence of cooling economic growth has fueled bets that the U.S. central bank could begin cutting rates as early as the first half of 2024, sparking a rally that has boosted the S&P 500 .SPX19.6% year-to-date and taken the index to a fresh closing high for the year on Friday.
At the same time, seasonal trends have been particularly strong this year. In September, historically the weakest month for stocks, the S&P 500 fell nearly 5%. Stocks swung wildly in October, a month noted for its volatility. The S&P 500 gained nearly 9% gain in November, historically a strong month for the index.
"We've had a solid year, but history shows that December can sometimes move to its own beat," said Sam Stovall, chief investment strategist at CFRA Research in New York.
Investors next week will be watching U.S. employment data, due out on Dec. 8, to see whether economic growth is continuing to level off.
Overall, December has been the second-best month for the S&P 500, with the index up an average of 1.54% for the month since 1945, according to CFRA. It is also the month most likely to post a gain, with the index rising 77% of the time, the firm's data showed.
Research from LPL Financial showed that the second half of December tends to outshine the first part of the month. The S&P 500 has gained an average of 1.4% in the second half of December in so-called Santa Claus rallies, compared with a 0.1% gain in the first half, according to LPL's analysis of market moves going back to 1950.
Stocks that have not performed well, however, may face additional pressure in December from tax loss selling, as investors get rid of losers to lock in write-offs before year-end. If history is any guide, some of those shares may rebound later in the month and into January as investors return to undervalued names, analysts said.
Since 1986, stocks that were down 10% or more between January and the end of October have beaten the S&P 500 by an average of 1.9% over the next three months, according to BofA Global Research. PayPal Holdings, CVS Health, and Kraft Heinz Co are among the stocks the bank recommends buying for a tax-related bounce, BofA noted in a late October report.
"The market advance has been extraordinarily narrow this year, and there's reason to believe that some sectors and stocks will really take it on the chin until they get some relief in January," said Sameer Samana, seniorglobal marketstrategist at the Wells Fargo Investment Institute.
Despite the market's hefty year-to-date rise, investment portfolios are likely to have plenty of underperforming stocks. Nearly 72% of the S&P 500's gain has been driven by a cluster of megacap stocks such as Apple, Tesla and Nvidia, which have an outsized weighting in the index, data from S&P Dow Jones Indices showed.
Many other names have languished: The equal-weighted S&P 500, whose performance is not skewed by big tech and growth stocks, is up around 6% in 2023.
Some worry that investor over-exuberance may have already set in after November's big rally, which spurred huge moves in some of the market's more speculative names.
Streaming service company Roku soared 75% in November, for instance, while cryptocurrency firm Coinbase Global climbed 62% and Cathie Wood's ARK Innovation Fund was up 31%, its best performance of any month in the last five years.
Michael Hartnett, chief investment strategist at BofA Global Research, said in a Friday note that the firm's contrarian Bull & Bear indicator - which assesses factors such as hedge fund positioning, equity flows and bond flows - had moved out of the "buy" zone for the first time since mid-October.
"If you caught it, no need to chase it," he wrote of the rally.
(Reporting by David Randall; Editing by Ira Iosebashvili and Richard Chang)
(([email protected]; 646-223-6607; 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 David Randall NEW YORK, Dec 1(Reuters) - As U.S. stocks sit on hefty gains at the close of a rollercoaster year, investors are eyeing factors that could sway equities in the remaining weeks of 2023, including tax loss selling and the so-called Santa Claus rally. Evidence of cooling economic growth has fueled bets that the U.S. central bank could begin cutting rates as early as the first half of 2024, sparking a rally that has boosted the S&P 500 .SPX19.6% year-to-date and taken the index to a fresh closing high for the year on Friday. Streaming service company Roku soared 75% in November, for instance, while cryptocurrency firm Coinbase Global climbed 62% and Cathie Wood's ARK Innovation Fund was up 31%, its best performance of any month in the last five years. | By David Randall NEW YORK, Dec 1(Reuters) - As U.S. stocks sit on hefty gains at the close of a rollercoaster year, investors are eyeing factors that could sway equities in the remaining weeks of 2023, including tax loss selling and the so-called Santa Claus rally. The S&P 500 has gained an average of 1.4% in the second half of December in so-called Santa Claus rallies, compared with a 0.1% gain in the first half, according to LPL's analysis of market moves going back to 1950. Michael Hartnett, chief investment strategist at BofA Global Research, said in a Friday note that the firm's contrarian Bull & Bear indicator - which assesses factors such as hedge fund positioning, equity flows and bond flows - had moved out of the "buy" zone for the first time since mid-October. | By David Randall NEW YORK, Dec 1(Reuters) - As U.S. stocks sit on hefty gains at the close of a rollercoaster year, investors are eyeing factors that could sway equities in the remaining weeks of 2023, including tax loss selling and the so-called Santa Claus rally. The S&P 500 has gained an average of 1.4% in the second half of December in so-called Santa Claus rallies, compared with a 0.1% gain in the first half, according to LPL's analysis of market moves going back to 1950. Michael Hartnett, chief investment strategist at BofA Global Research, said in a Friday note that the firm's contrarian Bull & Bear indicator - which assesses factors such as hedge fund positioning, equity flows and bond flows - had moved out of the "buy" zone for the first time since mid-October. | The S&P 500 gained nearly 9% gain in November, historically a strong month for the index. It is also the month most likely to post a gain, with the index rising 77% of the time, the firm's data showed. Since 1986, stocks that were down 10% or more between January and the end of October have beaten the S&P 500 by an average of 1.9% over the next three months, according to BofA Global Research. |
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12299.0 | 2023-12-02 00:00:00 UTC | 4 Soaring Stocks I'd Buy Without Any Hesitation | AAPL | https://www.nasdaq.com/articles/4-soaring-stocks-id-buy-without-any-hesitation | After a disappointing 2022 during which the U.S. stock market posted its worst performance of the last decade, Wall Street breathed a sigh of relief in 2023. Currently, the benchmark S&P 500 index has recovered nearly 28% from its lowest point of the bear market in October 2022. It is also only 5% below the all-time high it set in January 2022. When the benchmark index establishes a new all-time high, that will be a clear signal that a new bull market has begun.
When the stock market is gearing up for a bull surge, it makes sense for retail investors to pick up stocks of high-quality companies with robust tailwinds. These four could prove attractive picks now.
Nvidia
Accelerated computing specialist Nvidia (NASDAQ: NVDA) has made a splash on Wall Street lately thanks to its cutting-edge artificial intelligence (AI) chips and software ecosystem. Ever since OpenAI's ChatGPT chatbot made its public debut, cloud service providers, consumer internet companies, and enterprises across the world have been racing against each other to solidify their positions in the generative AI space. Subsequently, demand for Nvidia's AI-optimized A100 and H100 chips has gone through the roof. In fact, Nvidia's leading AI chips are already sold out until 2024, which suggests that any short-term change in the market environment won't have a drastic impact on the company's near-term financial performance.
Nvidia's strategy to combine multiple GPUs in a single HGX platform has also pushed up demand for its networking solutions. Furthermore, the company's Compute Unified Device Architecture (CUDA) software stack is currently being used by 4 million developers to program AI chips. Thanks to CUDA's first-mover advantage, developers have become very comfortable with Nvidia's software ecosystem -- and that makes them resistant to switching to chips from alternate players.
According to a forecast by Fortune Business Insights, the AI market will grow from $515 billion in 2023 to over $2 trillion in 2030. With a tailwind of that magnitude behind it, Nvidia seems to be an obvious pick for long-term retail investors.
Meta Platforms
Meta Platforms' (NASDAQ: META) social media platforms (Facebook, Instagram, and WhatsApp) make it a force to be reckoned with in the digital advertising world. Their user base accounts for nearly 40% of the global population, so advertisers cannot afford to ignore these platforms. Besides, Meta is also leveraging its AI capabilities to improve content discovery for users and ad targeting for merchants.
Meta is also gearing up to add new revenue streams. Once a major headwind, the company's short-video format Reels is expected to become a modest tailwind in 2024. The company is capitalizing on its WhatsApp user base of 200 million people through Click-to-WhatsApp advertising and paid messaging. So although the company's metaverse investments have been loss-making to date, there is still much to like about this company.
Microsoft
Microsoft (NASDAQ: MSFT), led by CEO Satya Nadella, has become a prominent AI player, in part thanks to its nearly $13 billion investment in ChatGPT developer OpenAI. The company has integrated AI technologies into several of its core offerings to improve their productivity and make them more cost-efficient. Prominent among them are Azure cloud computing platform, Bing search engine, and Microsoft 365 productivity suite. According to Evercore ISI analyst Kirk Materne, these AI offerings could add $100 billion in incremental revenues to Microsoft's top line by 2027.
Also, the Azure cloud computing business is now stabilizing thanks to the normalization of cloud spending optimization trends. Furthermore, while the personal computing business has been under stress for the past few quarters, the global PC market is now showing signs of recovery -- which bodes well for Microsoft. Coupled with gradually improving financials and a solid balance sheet ($144 billion in cash equivalents and short-term investments versus $71 billion total debt), Microsoft seems an attractive buy now.
Taiwan Semiconductor Manufacturing
Leading third-party chip manufacturer Taiwan Semiconductor Manufacturing (NYSE: TSM) is a major beneficiary of technological trends such as cloud computing, the Internet of Things, edge computing, and autonomous driving. With the PC and smartphone markets (which provide the bulk of the current demand for TSMC's chips) witnessing gradual recoveries in the third quarter, and enterprises increasingly adopting data analytics and AI technologies, demand for semiconductor chips is set to rise at a dramatic pace.
Elevated demand for 5nm chips and a strong ramp up of production of 3nm chips drove TSMC's revenue growth in the third quarter. This is not surprising considering that Nvidia's extremely sought-after H100 GPUs are manufactured using TSMC's 5nm process node. Apple (NASDAQ: AAPL), widely thought to be TSMC's largest customer, has released iPhone 15 Pro and Pro Max models powered by 3nm chips. Nvidia is also gearing up to adopt 3nm chips in its next-generation Blackwell B100 GPU, which is scheduled for launch in 2024. TSMC expects the market for its 3nm chips to be nearly $1.5 trillion. These near-term tailwinds make TSMC a prominent pick now.
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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. Manali Bhade has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Meta Platforms, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. 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), widely thought to be TSMC's largest customer, has released iPhone 15 Pro and Pro Max models powered by 3nm chips. Ever since OpenAI's ChatGPT chatbot made its public debut, cloud service providers, consumer internet companies, and enterprises across the world have been racing against each other to solidify their positions in the generative AI space. In fact, Nvidia's leading AI chips are already sold out until 2024, which suggests that any short-term change in the market environment won't have a drastic impact on the company's near-term financial performance. | Apple (NASDAQ: AAPL), widely thought to be TSMC's largest customer, has released iPhone 15 Pro and Pro Max models powered by 3nm chips. Taiwan Semiconductor Manufacturing Leading third-party chip manufacturer Taiwan Semiconductor Manufacturing (NYSE: TSM) is a major beneficiary of technological trends such as cloud computing, the Internet of Things, edge computing, and autonomous driving. With the PC and smartphone markets (which provide the bulk of the current demand for TSMC's chips) witnessing gradual recoveries in the third quarter, and enterprises increasingly adopting data analytics and AI technologies, demand for semiconductor chips is set to rise at a dramatic pace. | Apple (NASDAQ: AAPL), widely thought to be TSMC's largest customer, has released iPhone 15 Pro and Pro Max models powered by 3nm chips. When the stock market is gearing up for a bull surge, it makes sense for retail investors to pick up stocks of high-quality companies with robust tailwinds. With the PC and smartphone markets (which provide the bulk of the current demand for TSMC's chips) witnessing gradual recoveries in the third quarter, and enterprises increasingly adopting data analytics and AI technologies, demand for semiconductor chips is set to rise at a dramatic pace. | Apple (NASDAQ: AAPL), widely thought to be TSMC's largest customer, has released iPhone 15 Pro and Pro Max models powered by 3nm chips. When the stock market is gearing up for a bull surge, it makes sense for retail investors to pick up stocks of high-quality companies with robust tailwinds. These near-term tailwinds make TSMC a prominent pick now. |
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12300.0 | 2023-12-02 00:00:00 UTC | What TSMC, Amkor, and Samsung Investors Should Know About Recent Semiconductor Manufacturing Updates | AAPL | https://www.nasdaq.com/articles/what-tsmc-amkor-and-samsung-investors-should-know-about-recent-semiconductor-manufacturing | In today's video, I discuss recent updates impacting Taiwan Semiconductor Manufacturing (NYSE: TSM), Amkor Technology (NASDAQ: AMKR), and Samsung. 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. 1, 2023. The video was published on Dec. 1, 2023.
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Jose Najarro has positions in Qualcomm and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple, Qualcomm, and Taiwan Semiconductor Manufacturing. 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 updates impacting Taiwan Semiconductor Manufacturing (NYSE: TSM), Amkor Technology (NASDAQ: AMKR), and Samsung. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Taiwan Semiconductor Manufacturing wasn't one of them! The Motley Fool has positions in and recommends Apple, Qualcomm, and Taiwan Semiconductor Manufacturing. | After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Jose Najarro has positions in Qualcomm and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple, Qualcomm, and Taiwan Semiconductor Manufacturing. | 10 stocks we like better than Taiwan Semiconductor Manufacturing When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Jose Najarro has positions in Qualcomm and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple, Qualcomm, and Taiwan Semiconductor Manufacturing. | Check out the short video to learn more, consider subscribing, and click the special offer link below. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Jose Najarro has positions in Qualcomm and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. |
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12301.0 | 2023-12-02 00:00:00 UTC | Surprise! Warren Buffett Has Bet Over $176 Billion in 3 Artificial Intelligence (AI) Growth Stocks | AAPL | https://www.nasdaq.com/articles/surprise-warren-buffett-has-bet-over-%24176-billion-in-3-artificial-intelligence-ai-growth | Over the years, Berkshire Hathaway CEO Warren Buffett has made no bones about his difficulty understanding some of the world's latest technological innovations. The legendary investor had for years avoided technology stocks, saying he prefers "simple businesses," stating categorically, "If there's lots of technology, we won't understand it."
Despite those assertions, over the past few years, Buffett has accumulated a fortune in stocks on the cutting edge of artificial intelligence (AI).
Image source: The Motley Fool.
1. Apple -- $174 billion
Anyone who has followed Berkshire Hathaway won't be surprised to find that the company's most sizable AI stock holding is Apple (NASDAQ: AAPL). When including the shares held by subsidiary New England Asset Management (NEAM), Buffett's stake in Apple amounts to more than 915 million shares, worth roughly $174 billion.
Apple has long been at the forefront of AI technology. The company integrated its virtual digital assistant Siri into the iPhone 4S in 2011. That was the first of a long line of AI-driven features infused into the iPhone, supported by the Apple Neural Engine. This sophisticated neural processing unit (NPU) resides on the device, supporting all manner of AI functionality.
This includes the Face ID technology used to unlock the iPhone, the language recognition and processing that helps Siri better interact with users over time, and the image processor that helps improve photo quality in the camera. Many of Apple's health and safety features are also supported by AI, including the Apple Watch's fall detection, crash detection, and electrocardiogram (ECG) functionality.
While Apple has kept its generative AI aspirations close to the vest, CEO Tim Cook said on the company's third-quarterearnings call "We view AI and machine learning as core fundamental technologies that are integral to virtually every product that we build." He went on to say, "We've been doing research across a wide range of AI technologies, including generative AI for years."
Apple has published a number of job postings this year for those with expertise in the field of generative AI. The company's history suggests Apple won't reveal its plans for using this technology until it's already deeply embedded in an as-yet-to-be-released product.
2. Amazon -- $1.47 billion
Berkshire Hathaway also holds a considerable stake in e-commerce denizen Amazon (NASDAQ: AMZN), though Buffett himself didn't initiate the purchase. The company holds 10 million shares, currently valued at nearly $1.47 billion.
Buffett said he's long been a fan and "always admired Jeff [Bezos]," Amazon's former CEO. In his usual self-deprecating manner, however, Buffett also admitted he should have invested in the company long ago, but didn't because "If I think something is going to be a miracle, I tend not to bet on it."
Amazon is a longtime innovator in the field of AI. The company has developed algorithms to recommend products, forecast demand, operate its fulfillment and logistics warehouses, and map out product delivery routes. The company also offers machine learning and generative AI tools via its industry-leading Amazon Web Services (AWS) cloud infrastructure service.
Amazon also pioneered an array of products infused with Alexa, its AI-driven virtual assistant. CEO Andy Jassy recently admitted the company is "investing heavily" in the large language models that form the foundation for generative AI.
3. Snowflake -- $1.05 billion
Data cloud and analytics provider Snowflake (NYSE: SNOW) is the last in Berkshire's trio of sizable AI holdings. In fact, Berkshire invested in the company even before its initial public offering (IPO), in a move instigated by Buffett lieutenant Todd Combs, who purchased more than 6 million shares, currently valued at roughly $1.05 billion. Combs is also CEO of wholly owned Berkshire Hathaway subsidiary GEICO, which is a longtime customer of Snowflake's data warehouse services.
According to Snowflake, its platform was "built from the ground up to support machine learning and AI-driven data science applications." The company also says it helps businesses "apply AI to make better decisions, improve productivity, and reach more customers." Most recently, Snowflake added support for the large language models that underpin the major generative AI systems. This allows users to deploy these systems directly within their Snowflake accounts.
Is it time to buy?
Buffett hasn't minced words about his love of Apple stock. At Berkshire's 2023 shareholder meeting in May, he said, "[Apple] just happens to be a better business than any we own." The iPhone continues to gain converts, controlling an estimated 60% share of the premium smartphone market for the second consecutive quarter, according to data compiled by Counterpoint Research. Add to that the company's consistent services growth and superior cash-flow generation, and it's easy to see why Apple is a Buffett favorite. Furthermore, at just 31 times earnings, Apple is selling at a discount to its historical valuation.
While Amazon experienced a fall from grace during the downturn, the company has seen its e-commerce business rebound. And despite last year's challenges, the company continued to control roughly 38% of the market in the U.S., more than the next 14 rivals combined. It's also the acknowledged leader of cloud infrastructure services, though competition continues to ramp up. Finally, it's the world's No. 3 provider of digital advertising services, behind just Alphabet's Google and Meta Platforms. And at just 2 times forward sales, Amazon is the cheapest of the bunch.
The riskiest of the three is Snowflake, as evidenced by its precipitous fall last year. While demand for the company's data storage and analytics services continues to grow, economic uncertainty has weighed on its recovery. Furthermore, the stock is still pretty pricey, selling for 16 times forward sales. However, for those with a stomach for volatility and a willingness to accept some additional risk for greater potential gains, Snowflake might be worth considering.
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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. Danny Vena has positions in Alphabet, Amazon, Apple, Meta Platforms, and Snowflake. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, and Snowflake. 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 -- $174 billion Anyone who has followed Berkshire Hathaway won't be surprised to find that the company's most sizable AI stock holding is Apple (NASDAQ: AAPL). CEO Andy Jassy recently admitted the company is "investing heavily" in the large language models that form the foundation for generative AI. In fact, Berkshire invested in the company even before its initial public offering (IPO), in a move instigated by Buffett lieutenant Todd Combs, who purchased more than 6 million shares, currently valued at roughly $1.05 billion. | Apple -- $174 billion Anyone who has followed Berkshire Hathaway won't be surprised to find that the company's most sizable AI stock holding is Apple (NASDAQ: AAPL). Amazon -- $1.47 billion Berkshire Hathaway also holds a considerable stake in e-commerce denizen Amazon (NASDAQ: AMZN), though Buffett himself didn't initiate the purchase. Snowflake -- $1.05 billion Data cloud and analytics provider Snowflake (NYSE: SNOW) is the last in Berkshire's trio of sizable AI holdings. | Apple -- $174 billion Anyone who has followed Berkshire Hathaway won't be surprised to find that the company's most sizable AI stock holding is Apple (NASDAQ: AAPL). While Apple has kept its generative AI aspirations close to the vest, CEO Tim Cook said on the company's third-quarterearnings call "We view AI and machine learning as core fundamental technologies that are integral to virtually every product that we build." The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, and Snowflake. | Apple -- $174 billion Anyone who has followed Berkshire Hathaway won't be surprised to find that the company's most sizable AI stock holding is Apple (NASDAQ: AAPL). He went on to say, "We've been doing research across a wide range of AI technologies, including generative AI for years." Amazon -- $1.47 billion Berkshire Hathaway also holds a considerable stake in e-commerce denizen Amazon (NASDAQ: AMZN), though Buffett himself didn't initiate the purchase. |
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12302.0 | 2023-12-02 00:00:00 UTC | Warren Buffett's Best 3 Artificial Intelligence (AI) Stocks | AAPL | https://www.nasdaq.com/articles/warren-buffetts-best-3-artificial-intelligence-ai-stocks | Most people don't associate Warren Buffett with tech trends, as he has consistently avoided investing in many new technologies because he says he doesn't understand them. Even though his company owns a lot of Apple, it's a relatively simple business because it's all about selling hardware. While some may snicker at this comment of not investing in tech, few can deny that this approach has worked well for him and Berkshire Hathaway.
Still, that doesn't mean that Buffett doesn't own any stocks associated with artificial intelligence (AI). In fact, there are quite a few in his portfolio. Among them are Amazon (NASDAQ: AMZN), Snowflake (NYSE: SNOW), and Mastercard (NYSE: MA), and each looks like a candidate to be bought now.
AI may not be the first reason these stocks were purchased
Each of these companies uses AI differently than the others.
For Amazon, its usage is twofold. First, it uses AI to make its delivery business more efficient and predict product demand. Second, Amazon Web Services (AWS) is a cloud computing juggernaut, which positions it well as companies use cloud computing to store proprietary data needed for AI models and develop their own. Amazon may not be the most "in your face" AI investment, but it is near the top of the list for companies that will benefit from AI adoption.
Snowflake is more of a straight-line AI investment, as its data cloud software helps its clients store information efficiently and use it to create AI models. Furthermore, clients can sell their datasets on the Snowflake marketplace, which is incredibly useful for developing an AI model if you don't have the raw data. Berkshire Hathaway bought Snowflake stock at its IPO and hasn't sold a share since, showing its confidence in its future.
Finally, Mastercard, the credit card giant, deploys AI to prevent fraud and safeguard transactions. Now, Mastercard is expanding its consulting practice, which uses its economic data to analyze purchases from all over the globe. AI is invaluable for retailers and can deliver real-time insights, allowing clients to adjust their strategies faster than ever before.
All three companies have legitimate investment cases as AI companies but are also devoted to their primary missions. This makes them great investments as they are less likely to get caught up in the AI hype.
Still, Berkshire is a relatively small shareholder in these businesses as Amazon, Snowflake, and Mastercard only make up 0.4%, 0.3%, and 0.5% of its investing portfolio, respectively. But that doesn't mean they or you can't purchase shares at a moment's notice.
Each looks like a buy right now
Each of these companies is in a different phase. Mastercard is the most mature and has developed its margins to near-optimized levels. Amazon is in a transitional phase of optimizing for profits, and Snowflake is still in a growth-at-all-costs mindset, which causes it to be deeply unprofitable. As a result, each of these companies needs to be examined using a slightly different metric.
For Mastercard, I'll use its price-to-earnings (P/E) ratio, as we have strong historical data of its usual trading range.
MA PE Ratio data by YCharts.
Mastercard has often fetched a premium price (and it still does), but right now, it is near the cheapest you've been able to purchase the stock since 2018 (besides a few momentary dips).
Amazon is nearing full-term profitability, so I'll use the forward P/E ratio.
AMZN PE Ratio (Forward 1y) data by YCharts.
A valuation of 43 times 2024 earnings isn't a cheap price to pay, but those are analyst estimates that can be wrong. AWS is a sleeping giant that will benefit tremendously from AI investment, and its improving margin picture will continue to make Amazon an attractive stock. While it's likely too expensive for Berkshire's taste, I think it's still a fair price.
Last is Snowflake, whose price-to-sales ratio is quite expensive.
SNOW PS Ratio data by YCharts.
Because Snowflake has placed itself into a lucrative opportunity, investors have bid up the stock drastically in expectation of future performance. There's no sugarcoating it; Snowflake stock is incredibly expensive, but if it's as vital to AI as many think, the price you pay today will be worth it years later.
While Buffett may not be known as an AI investor, his portfolio indicates otherwise. All three stocks are solid picks, and investors should be willing to purchase them at today's prices.
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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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. Keithen Drury has positions in Amazon, Mastercard, and Snowflake. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, Mastercard, and Snowflake. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. 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. | Furthermore, clients can sell their datasets on the Snowflake marketplace, which is incredibly useful for developing an AI model if you don't have the raw data. Berkshire Hathaway bought Snowflake stock at its IPO and hasn't sold a share since, showing its confidence in its future. AWS is a sleeping giant that will benefit tremendously from AI investment, and its improving margin picture will continue to make Amazon an attractive stock. | Among them are Amazon (NASDAQ: AMZN), Snowflake (NYSE: SNOW), and Mastercard (NYSE: MA), and each looks like a candidate to be bought now. Second, Amazon Web Services (AWS) is a cloud computing juggernaut, which positions it well as companies use cloud computing to store proprietary data needed for AI models and develop their own. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, Mastercard, and Snowflake. | AI may not be the first reason these stocks were purchased Each of these companies uses AI differently than the others. Amazon may not be the most "in your face" AI investment, but it is near the top of the list for companies that will benefit from AI adoption. Snowflake is more of a straight-line AI investment, as its data cloud software helps its clients store information efficiently and use it to create AI models. | Still, Berkshire is a relatively small shareholder in these businesses as Amazon, Snowflake, and Mastercard only make up 0.4%, 0.3%, and 0.5% of its investing portfolio, respectively. Each looks like a buy right now Each of these companies is in a different phase. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, Mastercard, and Snowflake. |
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12303.0 | 2023-12-01 00:00:00 UTC | Best Blue Chip Stocks To Invest In Right Now? 2 In Focus | AAPL | https://www.nasdaq.com/articles/best-blue-chip-stocks-to-invest-in-right-now-2-in-focus | Blue-chip stocks are shares of well-established, financially sound companies with a history of stable earnings. These companies are often market leaders or among the top in their sectors. Characterized by their large market capitalization, blue-chip stocks are known for their reliability and strong track record. They are often included in major stock indices.
Investing in blue-chip stocks offers several advantages. These stocks typically provide consistent dividends, contributing to steady income for investors. Their long-standing market presence suggests a lower risk of volatility. This makes them a popular choice for conservative investors. However, there are also disadvantages. Blue-chip stocks may have slower growth compared to emerging companies. Their size can limit their potential for rapid expansion.
When considering blue-chip stocks, investors should weigh their investment goals. These stocks can be a cornerstone for a long-term, stable portfolio. Yet, their conservative nature might not suit those seeking high growth rates. As with any investment, diversification is key. Keeping this on top of mind, let’s look at two blue chip stocks to watch in the stock market today.
Blue Chip Stocks To Buy [Or Avoid] Today
McDonald’s Corporation (NYSE: MCD)
Apple Inc. (NASDAQ: AAPL)
McDonald’s Corporation (MCD Stock)
Let’s start with McDonald’s Corporation (MCD). The company is a global fast-food chain, renowned for its hamburgers, fries, and quick-service meals. McDonald’s is one of the world’s largest restaurant chains, with outlets in over 100 countries. McDonald’s is known for its standardized menu items and for pioneering the franchise model in the fast-food industry.
Last month, McDonald’s Corporation announced its decision to acquire Carlyle’s minority ownership stake in the strategic partnership managing McDonald’s business in mainland China, Hong Kong, and Macau. The announcement, made on November 20, 2023, detailed that while the CITIC Consortium, primarily through CITIC Capital, would maintain its controlling 52% stake, McDonald’s would increase its stake from 20% to 48%. This move marks a significant adjustment in McDonald’s involvement in its Chinese operations.
In the last month of trading action, shares of MCD have advanced by 8.36%. Meanwhile, during Friday morning’s trading session, McDonald’s stock is trading slightly higher on the day so far by 0.72%, trading at $283.88 a share.
[Read More] 2 Dow 30 Stocks For Your December 2023 Watchlist
Apple (AAPL Stock)
Next, Apple Inc. (AAPL) is a multinational technology company that specializes in consumer electronics, software, and online services. Apple’s key products include the iPhone, iPad, Mac computers, and services like the App Store, Apple Music, and iCloud.
At the beginning of last month, Apple reported better-than-expected fourth-quarter 2023 financial results. Diving in, the company notched in earnings of $1.46 per share, along with revenue of $89.50 billion for Q4 2023. This is versus consensus estimates for the quarter which were earnings of $1.39 per share, with revenue estimates of $84.69 billion.
Over the last month of trading, shares of AAPL stock have gained by 9.29%. Moreover, during Friday morning’s trading session, Apple stock opened modestly higher by 0.11% so far, currently trading at $190.18 a share.
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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. | Blue Chip Stocks To Buy [Or Avoid] Today McDonald’s Corporation (NYSE: MCD) Apple Inc. (NASDAQ: AAPL) McDonald’s Corporation (MCD Stock) Let’s start with McDonald’s Corporation (MCD). [Read More] 2 Dow 30 Stocks For Your December 2023 Watchlist Apple (AAPL Stock) Next, Apple Inc. (AAPL) is a multinational technology company that specializes in consumer electronics, software, and online services. Over the last month of trading, shares of AAPL stock have gained by 9.29%. | Blue Chip Stocks To Buy [Or Avoid] Today McDonald’s Corporation (NYSE: MCD) Apple Inc. (NASDAQ: AAPL) McDonald’s Corporation (MCD Stock) Let’s start with McDonald’s Corporation (MCD). [Read More] 2 Dow 30 Stocks For Your December 2023 Watchlist Apple (AAPL Stock) Next, Apple Inc. (AAPL) is a multinational technology company that specializes in consumer electronics, software, and online services. Over the last month of trading, shares of AAPL stock have gained by 9.29%. | Blue Chip Stocks To Buy [Or Avoid] Today McDonald’s Corporation (NYSE: MCD) Apple Inc. (NASDAQ: AAPL) McDonald’s Corporation (MCD Stock) Let’s start with McDonald’s Corporation (MCD). [Read More] 2 Dow 30 Stocks For Your December 2023 Watchlist Apple (AAPL Stock) Next, Apple Inc. (AAPL) is a multinational technology company that specializes in consumer electronics, software, and online services. Over the last month of trading, shares of AAPL stock have gained by 9.29%. | Over the last month of trading, shares of AAPL stock have gained by 9.29%. Blue Chip Stocks To Buy [Or Avoid] Today McDonald’s Corporation (NYSE: MCD) Apple Inc. (NASDAQ: AAPL) McDonald’s Corporation (MCD Stock) Let’s start with McDonald’s Corporation (MCD). [Read More] 2 Dow 30 Stocks For Your December 2023 Watchlist Apple (AAPL Stock) Next, Apple Inc. (AAPL) is a multinational technology company that specializes in consumer electronics, software, and online services. |
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12304.0 | 2023-12-01 00:00:00 UTC | US STOCKS-Wall St edges higher as Powell comments bolster peak-rate bets | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-st-edges-higher-as-powell-comments-bolster-peak-rate-bets | By Shristi Achar A and Amruta Khandekar
Dec 1 (Reuters) - Wall Street's main indexes inched higher on Friday after Federal Reserve Chair Jerome Powell acknowledged progress in lowering inflation, encouraging expectations the central bank was done with its interest rate hiking campaign.
Powell noted a key measure of inflation was near the Fed's 2% target and that it was clear the U.S. monetary policy was slowing the economy as expected. He, however, added the central bank was prepared to tighten policy further if necessary.
While a pause in rate hikes has been fully priced in for the upcoming December policy meeting, traders see an about 61% chance of at least a 25 basis point rate cut in as soon as March 2024, up from about 56% before his comments.
"We've already reached the point where it's sufficiently restrictive," said Robert Pavlik, senior portfolio manager, Dakota Wealth, adding that the US economy was slowing.
"Just how fast it slows and how much a rate cut is needed, we don't know yet because we haven't gotten to the point to know exactly where we are."
A slew of recent data including Thursday's personal consumption expenditure index signalled easing inflation and bolstered hopes the central bank would now end its interest rate hikes and could start lowering them soon, propelling a rally in equities.
The S&P 500 .SPX and Nasdaq .IXIC finished November with their biggest monthly gain since July 2022, while the Dow Jones .DJI rallied to close at its highest level since January 2022.
At 11:43 a.m. ET, the Dow Jones Industrial Average .DJI was up 138.57 points, or 0.39%, at 36,089.46, the S&P 500 .SPX was up 13.61 points, or 0.30%, at 4,581.41, and the Nasdaq Composite .IXIC was up 17.13 points, or 0.12%, at 14,243.35.
TeslaTSLA.O underperformed megacap peers, falling 1.6% as the EV maker priced its Cybertruck above its initial forecast.
Among other top drags, PfizerPFE.N fell 4.6% as the drugmaker scrapped its plan to advance a twice-daily version of oral weight-loss drug danuglipron into late-stage studies, delaying its entry into the lucrative market.
U.S.-listed shares of AlibabaBABA.N slipped 2.2% after Morgan Stanley downgraded the e-commerce giant, citing slower turnaround in customer management revenue (CMR).
Marvell TechnologyMRVL.O shed 5.0% after the chipmaker's fourth-quarter revenue forecast fell short of Street estimates.
Ulta BeautyULTA.O rose 11.0% after the cosmetics retailer raised the lower end of its annual net sales forecast and named Paula Oyibo its new chief financial officer.
Paramount GlobalPARA.O climbed 7.6% on a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount.
Advancing issues outnumbered decliners by a 4.24-to-1 ratio on the NYSE and by a 2.49-to-1 ratio on the Nasdaq.
The S&P index recorded 41 new 52-week highs and one new low, while the Nasdaq recorded 58 new highs and 60 new lows.
U.S. inflation is falling https://tmsnrt.rs/3R3OjrB
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Shinjini Ganguli)
(([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. | Paramount GlobalPARA.O climbed 7.6% on a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. By Shristi Achar A and Amruta Khandekar Dec 1 (Reuters) - Wall Street's main indexes inched higher on Friday after Federal Reserve Chair Jerome Powell acknowledged progress in lowering inflation, encouraging expectations the central bank was done with its interest rate hiking campaign. A slew of recent data including Thursday's personal consumption expenditure index signalled easing inflation and bolstered hopes the central bank would now end its interest rate hikes and could start lowering them soon, propelling a rally in equities. | Paramount GlobalPARA.O climbed 7.6% on a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. A slew of recent data including Thursday's personal consumption expenditure index signalled easing inflation and bolstered hopes the central bank would now end its interest rate hikes and could start lowering them soon, propelling a rally in equities. The S&P index recorded 41 new 52-week highs and one new low, while the Nasdaq recorded 58 new highs and 60 new lows. | Paramount GlobalPARA.O climbed 7.6% on a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. By Shristi Achar A and Amruta Khandekar Dec 1 (Reuters) - Wall Street's main indexes inched higher on Friday after Federal Reserve Chair Jerome Powell acknowledged progress in lowering inflation, encouraging expectations the central bank was done with its interest rate hiking campaign. A slew of recent data including Thursday's personal consumption expenditure index signalled easing inflation and bolstered hopes the central bank would now end its interest rate hikes and could start lowering them soon, propelling a rally in equities. | Paramount GlobalPARA.O climbed 7.6% on a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. By Shristi Achar A and Amruta Khandekar Dec 1 (Reuters) - Wall Street's main indexes inched higher on Friday after Federal Reserve Chair Jerome Powell acknowledged progress in lowering inflation, encouraging expectations the central bank was done with its interest rate hiking campaign. A slew of recent data including Thursday's personal consumption expenditure index signalled easing inflation and bolstered hopes the central bank would now end its interest rate hikes and could start lowering them soon, propelling a rally in equities. |
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12305.0 | 2023-12-01 00:00:00 UTC | Wall St Week Ahead-Tax-loss selling, 'Santa rally' could sway U.S. stocks after November melt-up | AAPL | https://www.nasdaq.com/articles/wall-st-week-ahead-tax-loss-selling-santa-rally-could-sway-u.s.-stocks-after-november-melt | By David Randall
NEW YORK, Dec 1(Reuters) - As U.S. stocks sit on hefty gains at the close of a rollercoaster year, investors are eyeing factors that could sway equities in the remaining weeks of 2023, including tax loss selling and the so-called Santa Claus rally.
The key catalyst for stocks will likely continue to be the expected trajectory of the Federal Reserve's monetary policy. Evidence of cooling economic growth has fueled bets that the U.S. central bank could begin cutting rates as early as the first half of 2024, sparking a rally that has boosted the S&P 500 .SPX19.6% year-to-date and taken the index to a fresh closing high for the year on Friday.
At the same time, seasonal trends have been particularly strong this year. In September, historically the weakest month for stocks, the S&P 500 fell nearly 5%. Stocks swung wildly in October, a month noted for its volatility. The S&P 500 gained nearly 9% gain in November, historically a strong month for the index.
"We've had a solid year, but history shows that December can sometimes move to its own beat," said Sam Stovall, chief investment strategist at CFRA Research in New York.
Investors next week will be watching U.S. employment data, due out on Dec. 8, to see whether economic growth is continuing to level off.
Overall, December has been the second-best month for the S&P 500, with the index up an average of 1.54% for the month since 1945, according to CFRA. It is also the month most likely to post a gain, with the index rising 77% of the time, the firm's data showed.
Research from LPL Financial showed that the second half of December tends to outshine the first part of the month. The S&P 500 has gained an average of 1.4% in the second half of December in so-called Santa Claus rallies, compared with a 0.1% gain in the first half, according to LPL's analysis of market moves going back to 1950.
Stocks that have not performed well, however, may face additional pressure in December from tax loss selling, as investors get rid of losers to lock in write-offs before year-end. If history is any guide, some of those shares may rebound later in the month and into January as investors return to undervalued names, analysts said.
Since 1986, stocks that were down 10% or more between January and the end of October have beaten the S&P 500 by an average of 1.9% over the next three months, according to BofA Global Research. PayPal Holdings, CVS Health, and Kraft Heinz Co are among the stocks the bank recommends buying for a tax-related bounce, BofA noted in a late October report.
"The market advance has been extraordinarily narrow this year, and there's reason to believe that some sectors and stocks will really take it on the chin until they get some relief in January," said Sameer Samana, seniorglobal marketstrategist at the Wells Fargo Investment Institute.
Despite the market's hefty year-to-date rise, investment portfolios are likely to have plenty of underperforming stocks. Nearly 72% of the S&P 500's gain has been driven by a cluster of megacap stocks such as Apple, Tesla and Nvidia, which have an outsized weighting in the index, data from S&P Dow Jones Indices showed.
Many other names have languished: The equal-weighted S&P 500, whose performance is not skewed by big tech and growth stocks, is up around 6% in 2023.
Some worry that investor over-exuberance may have already set in after November's big rally, which spurred huge moves in some of the market's more speculative names.
Streaming service company Roku soared 75% in November, for instance, while cryptocurrency firm Coinbase Global climbed 62% and Cathie Wood's ARK Innovation Fund was up 31%, its best performance of any month in the last five years.
Michael Hartnett, chief investment strategist at BofA Global Research, said in a Friday note that the firm's contrarian Bull & Bear indicator - which assesses factors such as hedge fund positioning, equity flows and bond flows - had moved out of the "buy" zone for the first time since mid-October.
"If you caught it, no need to chase it," he wrote of the rally.
(Reporting by David Randall; Editing by Ira Iosebashvili and Richard Chang)
(([email protected]; 646-223-6607; 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 David Randall NEW YORK, Dec 1(Reuters) - As U.S. stocks sit on hefty gains at the close of a rollercoaster year, investors are eyeing factors that could sway equities in the remaining weeks of 2023, including tax loss selling and the so-called Santa Claus rally. Evidence of cooling economic growth has fueled bets that the U.S. central bank could begin cutting rates as early as the first half of 2024, sparking a rally that has boosted the S&P 500 .SPX19.6% year-to-date and taken the index to a fresh closing high for the year on Friday. Streaming service company Roku soared 75% in November, for instance, while cryptocurrency firm Coinbase Global climbed 62% and Cathie Wood's ARK Innovation Fund was up 31%, its best performance of any month in the last five years. | By David Randall NEW YORK, Dec 1(Reuters) - As U.S. stocks sit on hefty gains at the close of a rollercoaster year, investors are eyeing factors that could sway equities in the remaining weeks of 2023, including tax loss selling and the so-called Santa Claus rally. The S&P 500 has gained an average of 1.4% in the second half of December in so-called Santa Claus rallies, compared with a 0.1% gain in the first half, according to LPL's analysis of market moves going back to 1950. Michael Hartnett, chief investment strategist at BofA Global Research, said in a Friday note that the firm's contrarian Bull & Bear indicator - which assesses factors such as hedge fund positioning, equity flows and bond flows - had moved out of the "buy" zone for the first time since mid-October. | By David Randall NEW YORK, Dec 1(Reuters) - As U.S. stocks sit on hefty gains at the close of a rollercoaster year, investors are eyeing factors that could sway equities in the remaining weeks of 2023, including tax loss selling and the so-called Santa Claus rally. The S&P 500 has gained an average of 1.4% in the second half of December in so-called Santa Claus rallies, compared with a 0.1% gain in the first half, according to LPL's analysis of market moves going back to 1950. Michael Hartnett, chief investment strategist at BofA Global Research, said in a Friday note that the firm's contrarian Bull & Bear indicator - which assesses factors such as hedge fund positioning, equity flows and bond flows - had moved out of the "buy" zone for the first time since mid-October. | The S&P 500 gained nearly 9% gain in November, historically a strong month for the index. It is also the month most likely to post a gain, with the index rising 77% of the time, the firm's data showed. Since 1986, stocks that were down 10% or more between January and the end of October have beaten the S&P 500 by an average of 1.9% over the next three months, according to BofA Global Research. |
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12306.0 | 2023-12-01 00:00:00 UTC | 2 Tech Dividend Stocks to Buy and Hold Forever | AAPL | https://www.nasdaq.com/articles/2-tech-dividend-stocks-to-buy-and-hold-forever | Tech giants Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have a lot in common. Both are among the biggest companies in the world by market cap, have delivered amazing returns to longtime shareholders, and have plenty of growth opportunities to exploit. However, though they aren't known primarily for their dividends, both stocks are excellent choices for income-seeking investors.
1. Apple
Building a solid economic moat is one of the keys to success and longevity for any business. That's precisely what Apple has done over the years. Part of the company's competitive edge now comes from its brand name, which it has built into one of the most valuable in the world. The brand loyalty of its customers allows it to charge outrageous prices for its products, none of which are necessary goods consumers can't live with.
Still, Apple sells tens of billions of dollars worth of iPhones and other devices every quarter regardless of economic conditions. Detractors will quickly point out that in its fiscal 2023, which ended on Sept. 30, Apple's net sales declined by about 3% year over year to $383.3 billion. All that means, though, is that the tech company isn't completely immune to economic pressures, but it can still perform reasonably well among these challenges.
Apple's earnings per share increased slightly to $6.13 in fiscal 2023, up from $6.11 in its fiscal 2022. Also, the company had its best fiscal Q4 ever for iPhone sales, and its services unit's revenue set an all-time high -- and those are the company's most important businesses. Further, Apple's financial results have been solid over long periods.
AAPL Revenue (Annual) data by YCharts.
Apple also benefits from relatively high switching costs. Customers who join the company's ecosystem enjoy perks that range from the connectivity between its devices to the lure of its services. Switching to an Android smartphone is possible, but it's a headache. That's partly how Apple's installed base has grown to over 2 billion active devices.
This installed base also represents one of Apple's most important opportunities, as the company will continue finding ways to monetize its ecosystem. One of the company's goals is to make headway in the healthcare sector by adding medical-related functions to some of its gadgets. For instance, it has been working on creating a continuous glucose monitoring system that it can add to the Apple Watch.
Apple has also made headway in fintech. Whatever the company decides to pursue, its track record, massive customer base, and strong ability to generate cash inspire confidence. Apple should continue delivering excellent returns for a while. What about the company's dividend? While its yield isn't impressive -- just 0.51% at the current share price -- compared to the S&P 500's average of 1.62% -- Apple has raised its payouts by 120% in the past 10 years.
The company's cash payout ratio is just 15.1%, so management has substantial capacity to hike the dividend further. That makes Apple a great dividend stock and, coupled with the rest of its business, an excellent stock to buy and hold forever.
2. Microsoft
Microsoft benefits from a similar economic moat to Apple, one that starts with a strong brand. In the computer operating system market, Microsoft leads by a wide margin. It also famously offers a wide range of productivity tools that are used daily by millions of people and businesses.
It's hard to imagine any rival dethroning Microsoft in these markets, especially since its productivity programs also carry high switching costs. All such programs have a learning curve, making it hard for customers, especially businesses with many employees, to switch to a competitor. In addition to its legacy computer OS business, Microsoft boasts key growth opportunities.
The first is cloud computing infrastructure, a market where its Azure segment is one of the leaders. This business unit is increasingly becoming one of Microsoft's most important, and a significant contributor to its top-line growth. In its fiscal 2024 first quarter, which ended on Sept. 30, Microsoft's total revenue increased by 13% year over year to $56.5 billion. Azure's revenue growth rate was more than double that at 29%.
The cloud computing industry still has ample white space, providing a nice tailwind to Microsoft. The company is also looking to become the leader in generative artificial intelligence (AI). Microsoft has partnered with OpenAI, the company behind ChatGPT, for years, and it doubled down on this partnership at the beginning of the year. Beyond these two opportunities, Microsoft should remain a major player in other areas, including gaming.
The company has an impressive long-term financial performance that shows its ability to profit from growth opportunities.
MSFT Revenue (Annual) data by YCharts.
Microsoft can also give dividend investors what they want, even with a yield of just 0.79% at its current share price. The company has increased its payouts by nearly 168% in the past 10 years, yet its payout ratio remains conservative at 32%. Growth and income-oriented investors focused on the long term can't go wrong with Microsoft.
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Prosper Junior Bakiny 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. | Tech giants Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have a lot in common. AAPL Revenue (Annual) data by YCharts. Both are among the biggest companies in the world by market cap, have delivered amazing returns to longtime shareholders, and have plenty of growth opportunities to exploit. | Tech giants Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have a lot in common. AAPL Revenue (Annual) data by YCharts. Whatever the company decides to pursue, its track record, massive customer base, and strong ability to generate cash inspire confidence. | Tech giants Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have a lot in common. AAPL Revenue (Annual) data by YCharts. Also, the company had its best fiscal Q4 ever for iPhone sales, and its services unit's revenue set an all-time high -- and those are the company's most important businesses. | Tech giants Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have a lot in common. AAPL Revenue (Annual) data by YCharts. Also, the company had its best fiscal Q4 ever for iPhone sales, and its services unit's revenue set an all-time high -- and those are the company's most important businesses. |
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12307.0 | 2023-12-01 00:00:00 UTC | GRAPHIC-Resurgent S&P 500 crests new 2023 closing high after roller-coaster year | AAPL | https://www.nasdaq.com/articles/graphic-resurgent-sp-500-crests-new-2023-closing-high-after-roller-coaster-year | By Lewis Krauskopf
Dec 1 (Reuters) - A searing late-year rally has brought the S&P 500 .SPX to a fresh 2023 closing high, as investors bet the Federal Reserve is done raising interest rates and the U.S. economy will remain resilient in the face of tighter monetary policy.
The benchmark index closed at 4,594.63, nearly 6 points above its previous closing high for 2023 set in late July. The index gained 0.6% on Friday after bullish investors grew more confident the rate cycle had peaked following comments from Fed Chair Jerome Powell.
Signs that inflation is cooling after reaching a four-decade high last year have made investors more confident that the Fed will start cutting rates sooner than expected.
At the same time, the Fed’s aggressive rate increases so far appear to have done little damage to the U.S. economy, despite fears that tighter monetary policy would hurt growth. The S&P 500 is up over 19% year-to-date after posting its biggest monthly rise in over a year in November. The index stood about 4% below its all-time closing high from January 2022.
Stocks have faced down several crises this year, starting with the implosion of Silicon Valley Bank in March that sparked worries over the health of the broader banking system.
A legislative showdown over raising the U.S. debt ceiling became a key concern for investors months later, with equities gaining support once a deal was reached.
The S&P 500 reached its previous 2023 closing high on July 31, also spurred in part by excitement over developments in artificial intelligence technology.
A steady rise in Treasury yields - which dulled the allure of stocks compared to bonds and other investments - began eroding those gains, resulting in a sell-off that eventually erased more than half of the index’s year-to-date advance.
However, many investors came away from the Fed’s Nov. 1 meeting more confident that the central bank was close to wrapping up its rate increases. Data on Nov. 14 showed that consumer prices were unchanged on a monthly basis for October, the first such reading in more than a year, sparking a sizable stock rally.
Federal funds futures, a widely used security for hedging short-term interest rate risk, imply a Fed funds rate of 4.54% by the end of July, versus 5.12% expected three months ago for that period, according to LSEG data.
Cooling inflation has been accompanied by little of the economic damage that many expected to come with the Fed’s rate hikes - giving rise to hopes of a so-called Goldilocks scenario where the central bank is able to staunch the growth in consumer prices without badly hurting growth.
The economy appears to have avoided a recession this year that was widely forecast at the beginning of 2023, though growth in key areas such as employment has slowed. The Citigroup Economic Surprise Index .CESIUSD, which measures how economic data performs versus expectations, has been positive for virtually all of 2023.
Of course, some investors worry that the cumulative effects of the Fed’s 525 basis points of tightening are only starting to manifest and will eventually cool growth far more than currently expected.
A cadre of massive stocks has been the key engine of most of the S&P 500’s 2023 gains thanks to their outsized weightings in the index. The so-called "Magnificent Seven" -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Platforms META.O and Tesla TSLA.O -- have seen stock gains of between about 47% and 220% so far this year.
The companies perceived safety as investments given their size and competitive advantages has benefited the stocks, while a number of them have also been fueled by enthusiasm about the profit potential of artificial intelligence.
The megacaps' outperformance has increased their combined weight to well over one-fourth of the entire S&P 500, meaning the stocks' moves have outsized influence on the benchmark index.
To be sure, the S&P 500’s rapid rise has also made it richly valued compared to its historic levels, which could be an obstacle for the rally.
The S&P 500 currently trades at roughly 19 times forward earnings estimates, compared to a historical average of 15.6 times.
GRAPHIC-S&P 500 timeline https://tmsnrt.rs/3SWqXXA
GRAPHIC-Citi US economic surprise index https://tmsnrt.rs/3MXgBTA
GRAPHIC-S&P 500 weight of 7 megacaps https://tmsnrt.rs/3RbxZX2
GRAPHIC-S&P 500 forward P/E https://tmsnrt.rs/3MUCItE
(Reporting by Lewis Krauskopf; Additional reporting by Noel Randewich and Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and Nick Zieminski)
(([email protected]; Twitter: @LKrauskopf;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The so-called "Magnificent Seven" -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Platforms META.O and Tesla TSLA.O -- have seen stock gains of between about 47% and 220% so far this year. By Lewis Krauskopf Dec 1 (Reuters) - A searing late-year rally has brought the S&P 500 .SPX to a fresh 2023 closing high, as investors bet the Federal Reserve is done raising interest rates and the U.S. economy will remain resilient in the face of tighter monetary policy. Signs that inflation is cooling after reaching a four-decade high last year have made investors more confident that the Fed will start cutting rates sooner than expected. | The so-called "Magnificent Seven" -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Platforms META.O and Tesla TSLA.O -- have seen stock gains of between about 47% and 220% so far this year. The benchmark index closed at 4,594.63, nearly 6 points above its previous closing high for 2023 set in late July. Signs that inflation is cooling after reaching a four-decade high last year have made investors more confident that the Fed will start cutting rates sooner than expected. | The so-called "Magnificent Seven" -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Platforms META.O and Tesla TSLA.O -- have seen stock gains of between about 47% and 220% so far this year. Signs that inflation is cooling after reaching a four-decade high last year have made investors more confident that the Fed will start cutting rates sooner than expected. Cooling inflation has been accompanied by little of the economic damage that many expected to come with the Fed’s rate hikes - giving rise to hopes of a so-called Goldilocks scenario where the central bank is able to staunch the growth in consumer prices without badly hurting growth. | The so-called "Magnificent Seven" -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Platforms META.O and Tesla TSLA.O -- have seen stock gains of between about 47% and 220% so far this year. At the same time, the Fed’s aggressive rate increases so far appear to have done little damage to the U.S. economy, despite fears that tighter monetary policy would hurt growth. However, many investors came away from the Fed’s Nov. 1 meeting more confident that the central bank was close to wrapping up its rate increases. |
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12308.0 | 2023-12-01 00:00:00 UTC | US STOCKS-S&P 500 hits 2023 closing high as Powell strengthens peak rate bets | AAPL | https://www.nasdaq.com/articles/us-stocks-sp-500-hits-2023-closing-high-as-powell-strengthens-peak-rate-bets | *
Powell acknowledges risks of over-tightening
*
ISM shows U.S. manufacturing weakness persists
*
Pfizer dips as obesity drug trial dropped
*
Indexes up: Dow 0.82%, S&P 0.59%, Nasdaq 0.55%
(Updates with closing prices)
By Stephen Culp
NEW YORK, Dec 1 (Reuters) - U.S. stocks rallied and the
S&P registered its highest close of the year on Friday, starting
December on an upbeat note as remarks from Federal Reserve Chair
Jerome Powell bolstered the view that key policy rates have
peaked.
All three major U.S. stock indexes advanced, with
economically sensitive transports <.DJT> and smallcaps <.RUT>
enjoying the most robust gains.
"Those sectors - the cyclicals - they're the most hated
parts of the market year-to-date, (and they) are the parts that
are leading," said Scott Ladner, chief investment officer at
Horizon Investments in Charlotte, North Carolina. "On the first
day of December, when everybody's looking for a Santa Claus
rally, it probably carries a little bit of extra weight."
"If December starts out strong, it's going to make folks
jump on board and chase this rally," Ladner added.
All three indexes notched their fifth consecutive weekly
percentage gains. On Thursday, they wrapped up a banner month in
which the S&P 500 and the Nasdaq registered their biggest
one-month percentage gains since July 2022, and the Dow closed
at its highest level since January 2022.
In prepared remarks, Powell acknowledged the central bank's
need to "move forward carefully" amid signs of economic
softening, as the risks of over- and under-tightening its
monetary policy are becoming more balanced.
"Earlier in the week, (Fed Governor Christopher) Waller, one
of the Fed's biggest hawks, said as inflation decreases, we're
going to drop rates," Ladner said. "The market thought that
Powell would push against those remarks, and he didn't.
"(Powell) is setting the market up for rate cuts next
year."
Data released on Friday showed U.S. manufacturing continues
to contract as factories contend with decreasing new orders,
falling inventories and labor pressures.
The Dow Jones Industrial Average <.DJI> rose 294.61 points,
or 0.82%, to 36,245.5, the S&P 500 <.SPX> gained 26.83 points,
or 0.59%, at 4,594.63 and the Nasdaq Composite <.IXIC> added
78.81 points, or 0.55%, at 14,305.03.
Among the 11 major sectors of the S&P 500, real estate
<.SPLRCR> was the biggest percentage gainer, while communication
services <.SPLRCL> was the sole decliner.
Pfizer
slid
5.1
% as the drugmaker dropped plans to advance a twice-daily
version of oral weight-loss drug danuglipron into late-stage
studies, delaying its entry into the lucrative market.
U.S.-listed shares of
Alibaba
slipped
1.2
% following Morgan Stanley's downgrade of the e-commerce
giant's stock.
Marvell Technology
shed
5.3
% after the chipmaker's fourth-quarter revenue forecast fell
short of Street estimates.
Ulta Beauty
surged
10.8
after the cosmetics retailer raised the lower end of its
annual net sales forecast and named Paula Oyibo its new chief
financial officer.
Paramount Global
jumped
9.8
% following a report the media company and Apple
have discussed bundling their streaming services at a discount.
Advancing issues outnumbered decliners on the NYSE by a
5.93-to-1 ratio; on Nasdaq, a 3.32-to-1 ratio favored advancers.
The S&P 500 posted 59 new 52-week highs and one new low;
the Nasdaq Composite recorded 106 new highs and 82 new lows.
Volume on U.S. exchanges was 12.34 billion shares,
compared with the 10.58 billion average for the full session
over the last 20 trading days.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
U.S. inflation is falling https://tmsnrt.rs/3R3OjrB
Inflation gauges https://tmsnrt.rs/3Rng8MU
ISM PMI https://tmsnrt.rs/3T3Yqzi
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Stephen Culp; Additional reporting by Shristi
Achar A and Amruta Khandekar in Bengaluru; Editing by Richard
Chang)
(([email protected]; 646-223-6076))
Keywords: USA STOCKS/ (UPDATE 7, GRAPHIC)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In prepared remarks, Powell acknowledged the central bank's need to "move forward carefully" amid signs of economic softening, as the risks of over- and under-tightening its monetary policy are becoming more balanced. Pfizer slid 5.1 % as the drugmaker dropped plans to advance a twice-daily version of oral weight-loss drug danuglipron into late-stage studies, delaying its entry into the lucrative market. Ulta Beauty surged 10.8 after the cosmetics retailer raised the lower end of its annual net sales forecast and named Paula Oyibo its new chief financial officer. | (Updates with closing prices) By Stephen Culp NEW YORK, Dec 1 (Reuters) - U.S. stocks rallied and the S&P registered its highest close of the year on Friday, starting December on an upbeat note as remarks from Federal Reserve Chair Jerome Powell bolstered the view that key policy rates have peaked. All three major U.S. stock indexes advanced, with economically sensitive transports <.DJT> and smallcaps <.RUT> enjoying the most robust gains. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ U.S. inflation is falling https://tmsnrt.rs/3R3OjrB Inflation gauges https://tmsnrt.rs/3Rng8MU ISM PMI https://tmsnrt.rs/3T3Yqzi ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Stephen Culp; Additional reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Richard Chang) (([email protected]; 646-223-6076)) | (Updates with closing prices) By Stephen Culp NEW YORK, Dec 1 (Reuters) - U.S. stocks rallied and the S&P registered its highest close of the year on Friday, starting December on an upbeat note as remarks from Federal Reserve Chair Jerome Powell bolstered the view that key policy rates have peaked. The Dow Jones Industrial Average <.DJI> rose 294.61 points, or 0.82%, to 36,245.5, the S&P 500 <.SPX> gained 26.83 points, or 0.59%, at 4,594.63 and the Nasdaq Composite <.IXIC> added 78.81 points, or 0.55%, at 14,305.03. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ U.S. inflation is falling https://tmsnrt.rs/3R3OjrB Inflation gauges https://tmsnrt.rs/3Rng8MU ISM PMI https://tmsnrt.rs/3T3Yqzi ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Stephen Culp; Additional reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Richard Chang) (([email protected]; 646-223-6076)) | * Indexes up: Dow 0.82%, S&P 0.59%, Nasdaq 0.55% (Updates with closing prices) By Stephen Culp NEW YORK, Dec 1 (Reuters) - U.S. stocks rallied and the S&P registered its highest close of the year on Friday, starting December on an upbeat note as remarks from Federal Reserve Chair Jerome Powell bolstered the view that key policy rates have peaked. On Thursday, they wrapped up a banner month in which the S&P 500 and the Nasdaq registered their biggest one-month percentage gains since July 2022, and the Dow closed at its highest level since January 2022. |
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12309.0 | 2023-12-01 00:00:00 UTC | US STOCKS-Wall St rallies as Powell cements peak rate bets | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-st-rallies-as-powell-cements-peak-rate-bets | By Stephen Culp
NEW YORK, Dec 1 (Reuters) - U.S. stocks advanced on Friday, starting December with a broad rally as remarks from Federal Reserve Chairman Jerome Powell bolstered the view that interest rates have peaked.
All three major U.S. stock indexes were higher, with economically sensitive transports .DJT and smallcaps .RUT enjoying the most robust gains.
"People are bargain hunting. The stocks that haven't participated in the rally this year are powering the market higher," said Jay Hatfield, portfolio manager at InfraCap in New York. "This is clearly a broad-based rally, and it has legs."
All three indexes are on course to notch their fifth consecutive weekly percentage gains, the day after wrapping up a banner month in which the S&P 500 and the Nasdaq registered their biggest one-month percentage gains since July 2022, and the Dow close at its highest level since January 2022.
If the S&P 500 ends at or above its current level, it will be the highest close for the benchmark index so far this year.
In prepared remarks, Powell acknowledged the central bank's need to "move forward carefully" amid signs of economic softening, as the risks of over- and under-tightening its monetary policy are becoming more balanced.
"(Powell) used the word 'balanced,' and the message he's sending is the Fed's not going to change its rhetoric, but things are going the way they want them to go and they're not going to raised rates again," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. "They're done, they're finished, and that's what the market thinks."
Data released on Friday showed U.S. manufacturing continues to contract as factories contend with decreasing new orders, falling inventories and labor pressures.
At 2:14 p.m. ET, the Dow Jones Industrial Average .DJI rose 258.01 points, or 0.72%, to 36,208.9, the S&P 500 .SPX gained 21.94 points, or 0.48%, at 4,589.74 and the Nasdaq Composite .IXIC added 51.37 points, or 0.36%, at 14,277.59.
Among the 11 major sectors of the S&P 500, real estate .SPLRCR notched the most robust percentage gains, while communication services .SPLRCL was the sole decliner.
TeslaTSLA.O underperformed megacap peers, falling 1.2% as the electric vehicle maker priced its Cybertruck above its initial forecast.
PfizerPFE.N slid 4.6% as the drugmaker dropped plans to advance a twice-daily version of oral weight-loss drug danuglipron into late-stage studies, delaying its entry into the lucrative market.
U.S.-listed shares of AlibabaBABA.N slipped 1.4% following Morgan Stanley's downgrade of the e-commerce giant's stock.
Marvell TechnologyMRVL.O shed 5.4% after the chipmaker's fourth-quarter revenue forecast fell short of Street estimates.
Ulta BeautyULTA.O surged 10.3 after the cosmetics retailer raised the lower end of its annual net sales forecast and named Paula Oyibo its new chief financial officer.
Paramount GlobalPARA.O jumped 9.6% following a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount.
Advancing issues outnumbered decliners on the NYSE by a 5.50-to-1 ratio; on Nasdaq, a 3.00-to-1 ratio favored advancers.
The S&P 500 posted 54 new 52-week highs and one new low; the Nasdaq Composite recorded 87 new highs and 68 new lows.
U.S. inflation is falling https://tmsnrt.rs/3R3OjrB
(Reporting by Stephen Culp; Additional reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Richard Chang)
(([email protected]; 646-223-6076))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Paramount GlobalPARA.O jumped 9.6% following a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. By Stephen Culp NEW YORK, Dec 1 (Reuters) - U.S. stocks advanced on Friday, starting December with a broad rally as remarks from Federal Reserve Chairman Jerome Powell bolstered the view that interest rates have peaked. In prepared remarks, Powell acknowledged the central bank's need to "move forward carefully" amid signs of economic softening, as the risks of over- and under-tightening its monetary policy are becoming more balanced. | Paramount GlobalPARA.O jumped 9.6% following a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. By Stephen Culp NEW YORK, Dec 1 (Reuters) - U.S. stocks advanced on Friday, starting December with a broad rally as remarks from Federal Reserve Chairman Jerome Powell bolstered the view that interest rates have peaked. All three major U.S. stock indexes were higher, with economically sensitive transports .DJT and smallcaps .RUT enjoying the most robust gains. | Paramount GlobalPARA.O jumped 9.6% following a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. By Stephen Culp NEW YORK, Dec 1 (Reuters) - U.S. stocks advanced on Friday, starting December with a broad rally as remarks from Federal Reserve Chairman Jerome Powell bolstered the view that interest rates have peaked. All three indexes are on course to notch their fifth consecutive weekly percentage gains, the day after wrapping up a banner month in which the S&P 500 and the Nasdaq registered their biggest one-month percentage gains since July 2022, and the Dow close at its highest level since January 2022. | Paramount GlobalPARA.O jumped 9.6% following a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. By Stephen Culp NEW YORK, Dec 1 (Reuters) - U.S. stocks advanced on Friday, starting December with a broad rally as remarks from Federal Reserve Chairman Jerome Powell bolstered the view that interest rates have peaked. All three major U.S. stock indexes were higher, with economically sensitive transports .DJT and smallcaps .RUT enjoying the most robust gains. |
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12310.0 | 2023-12-01 00:00:00 UTC | TikTok asks EU court to suspend EU gatekeeper label until its ruling | AAPL | https://www.nasdaq.com/articles/tiktok-asks-eu-court-to-suspend-eu-gatekeeper-label-until-its-ruling | By Foo Yun Chee
BRUSSELS, Dec 1 (Reuters) - Chinese conglomerate ByteDance's TikTok has asked Europe's second highest court to suspend its designation as a gatekeeper under onerous new EU tech rules until judges rule on its challenge against the label.
The Digital Markets Act (DMA) requires TikTok and other designated gatekeepers Alphabet's GOOGL.O Google, Meta Platforms META.O, Apple AAPL.O, Amazon AMZN.O and Microsoft MSFT.O to make their messaging apps interoperate with rivals and let users decide which apps to pre-install on their devices.
They are not allowed to favour their own services over rivals' or prevent users from removing pre-installed software or apps.
TikTok last month challenged the EU decision at the Luxembourg-based General Court, saying its designation risks undermining the DMA goal of protecting gatekeepers from newer competitors like itself.
"We have applied for interim measures," a spokesperson said.
The bar for the court to approve interim measures is very high. Companies must show that situation is urgent and that they would suffer irreparable harm without an interim measure.
Meta and Apple have also sued the Commission over their gatekeeper status.
(Reporting by Foo Yun Chee; editing by Barbara Lewis)
(([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. | The Digital Markets Act (DMA) requires TikTok and other designated gatekeepers Alphabet's GOOGL.O Google, Meta Platforms META.O, Apple AAPL.O, Amazon AMZN.O and Microsoft MSFT.O to make their messaging apps interoperate with rivals and let users decide which apps to pre-install on their devices. By Foo Yun Chee BRUSSELS, Dec 1 (Reuters) - Chinese conglomerate ByteDance's TikTok has asked Europe's second highest court to suspend its designation as a gatekeeper under onerous new EU tech rules until judges rule on its challenge against the label. TikTok last month challenged the EU decision at the Luxembourg-based General Court, saying its designation risks undermining the DMA goal of protecting gatekeepers from newer competitors like itself. | The Digital Markets Act (DMA) requires TikTok and other designated gatekeepers Alphabet's GOOGL.O Google, Meta Platforms META.O, Apple AAPL.O, Amazon AMZN.O and Microsoft MSFT.O to make their messaging apps interoperate with rivals and let users decide which apps to pre-install on their devices. By Foo Yun Chee BRUSSELS, Dec 1 (Reuters) - Chinese conglomerate ByteDance's TikTok has asked Europe's second highest court to suspend its designation as a gatekeeper under onerous new EU tech rules until judges rule on its challenge against the label. (Reporting by Foo Yun Chee; editing by Barbara Lewis) (([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. | The Digital Markets Act (DMA) requires TikTok and other designated gatekeepers Alphabet's GOOGL.O Google, Meta Platforms META.O, Apple AAPL.O, Amazon AMZN.O and Microsoft MSFT.O to make their messaging apps interoperate with rivals and let users decide which apps to pre-install on their devices. By Foo Yun Chee BRUSSELS, Dec 1 (Reuters) - Chinese conglomerate ByteDance's TikTok has asked Europe's second highest court to suspend its designation as a gatekeeper under onerous new EU tech rules until judges rule on its challenge against the label. TikTok last month challenged the EU decision at the Luxembourg-based General Court, saying its designation risks undermining the DMA goal of protecting gatekeepers from newer competitors like itself. | The Digital Markets Act (DMA) requires TikTok and other designated gatekeepers Alphabet's GOOGL.O Google, Meta Platforms META.O, Apple AAPL.O, Amazon AMZN.O and Microsoft MSFT.O to make their messaging apps interoperate with rivals and let users decide which apps to pre-install on their devices. By Foo Yun Chee BRUSSELS, Dec 1 (Reuters) - Chinese conglomerate ByteDance's TikTok has asked Europe's second highest court to suspend its designation as a gatekeeper under onerous new EU tech rules until judges rule on its challenge against the label. "We have applied for interim measures," a spokesperson said. |
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12311.0 | 2023-12-01 00:00:00 UTC | Walmart says it is not advertising on social platform X | AAPL | https://www.nasdaq.com/articles/walmart-says-it-is-not-advertising-on-social-platform-x-0 | By Siddharth Cavale and Sheila Dang
Dec 1 (Reuters) - Walmart WMT.N said on Friday it is not advertising on social media platform X, one of the latest brands to say it has dropped the Elon Musk-owned site.
"We aren't advertising on X as we've found other platforms to better reach our customers," a Walmart spokesperson said.
X, formerly known as Twitter, did not immediately respond to a request for comment.
The platform has struggled to retain advertisers since Musk acquired the company in October 2022, and faced a fresh exodus in recent weeks over rising concern about antisemitic content.
Earlier this month, Musk agreed with an X user who falsely claimed members of the Jewish community were stoking hatred against white people, saying the user was speaking "the actual truth."
The user had also referenced the "Great Replacement" conspiracy theory, which purports that Jewish people and leftists are engineering the ethnic and cultural replacement of white populations with non-white immigrants that will lead to a "white genocide."
Musk apologized for his post during an interview at a New York Times DealBook event on Wednesday, but hurled expletives against advertisers that suspended their ads, accusing them of "blackmail."
An executive at a major ad-buying agency, who declined to be named, said X ad sales representatives appeared frustrated in the aftermath of Musk's outburst against brands and did not have much to say in conversations.
Major brands including Apple AAPL.O, Walt Disney DIS.N and Warner Bros Discovery WBD.O also suspended their ads on X this month following a report from liberal watchdog group Media Matters, which said ads had appeared next to antisemitic posts.
(Reporting by Siddharth Cavale in New York and Sheila Dang in Dallas; Editing by Chizu Nomiyama and Bill Berkrot)
(([email protected]; +1 646-983-0894;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Major brands including Apple AAPL.O, Walt Disney DIS.N and Warner Bros Discovery WBD.O also suspended their ads on X this month following a report from liberal watchdog group Media Matters, which said ads had appeared next to antisemitic posts. By Siddharth Cavale and Sheila Dang Dec 1 (Reuters) - Walmart WMT.N said on Friday it is not advertising on social media platform X, one of the latest brands to say it has dropped the Elon Musk-owned site. The platform has struggled to retain advertisers since Musk acquired the company in October 2022, and faced a fresh exodus in recent weeks over rising concern about antisemitic content. | Major brands including Apple AAPL.O, Walt Disney DIS.N and Warner Bros Discovery WBD.O also suspended their ads on X this month following a report from liberal watchdog group Media Matters, which said ads had appeared next to antisemitic posts. By Siddharth Cavale and Sheila Dang Dec 1 (Reuters) - Walmart WMT.N said on Friday it is not advertising on social media platform X, one of the latest brands to say it has dropped the Elon Musk-owned site. (Reporting by Siddharth Cavale in New York and Sheila Dang in Dallas; Editing by Chizu Nomiyama and Bill Berkrot) (([email protected]; +1 646-983-0894;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Major brands including Apple AAPL.O, Walt Disney DIS.N and Warner Bros Discovery WBD.O also suspended their ads on X this month following a report from liberal watchdog group Media Matters, which said ads had appeared next to antisemitic posts. By Siddharth Cavale and Sheila Dang Dec 1 (Reuters) - Walmart WMT.N said on Friday it is not advertising on social media platform X, one of the latest brands to say it has dropped the Elon Musk-owned site. Earlier this month, Musk agreed with an X user who falsely claimed members of the Jewish community were stoking hatred against white people, saying the user was speaking "the actual truth." | Major brands including Apple AAPL.O, Walt Disney DIS.N and Warner Bros Discovery WBD.O also suspended their ads on X this month following a report from liberal watchdog group Media Matters, which said ads had appeared next to antisemitic posts. By Siddharth Cavale and Sheila Dang Dec 1 (Reuters) - Walmart WMT.N said on Friday it is not advertising on social media platform X, one of the latest brands to say it has dropped the Elon Musk-owned site. X, formerly known as Twitter, did not immediately respond to a request for comment. |
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12312.0 | 2023-12-01 00:00:00 UTC | Alphabet (GOOGL) Bolsters Nest Hub Series With Fuchsia 14 | AAPL | https://www.nasdaq.com/articles/alphabet-googl-bolsters-nest-hub-series-with-fuchsia-14 | Alphabet GOOGL is enhancing its Google smart home devices portfolio on the back of new feature updates and releases.
Notably, Google unveiled Fuchsia version 14, a preview update of its in-house operating system, for the Nest Hub series.
Further, the new version, available to those enrolled in the Preview Program, enhances Matter support by improving transition time handling, color-related commands, matter update group support and updated subscriptions to all device fabrics.
Additionally, Fuchsia version 14 brings improvements to Nest Hub’s Wi-Fi and Bluetooth connectivity, enabling FastUDP on all platforms, addressing media playback time inaccuracy, resuming Bluetooth audio after video calls and improving latency.
Alphabet is expected to gain solid traction across users of smart home devices customers on the back of its latest move.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growth Prospects
Apart from the latest launch, Alphabet announced that Google’s smart home controller app, Google Home, will be available to everyone, with upgraded features including a new Favorites tab, improved camera interface, support for new device types and iPhone integration for Matter devices.
Additionally, Google enabled users to transfer their oldest Nest cameras to Google Home, with the Nest Cam Indoor being the first to do so, followed by the Nest Cam Outdoor.
All the above-mentioned endeavors are likely to strengthen the company’s presence in the booming smart home devices market.
Per a Fortune Business Insights report, the global smart home device market is expected to reach $338.28 billion by 2030, witnessing a CAGR of 20.1% during the period of 2023-2030.
We believe Alphabet’s growing prospects in the promising smart home devices market will likely instill investor optimism in the stock.
Alphabet has gained 55.2% on a year-to-date basis compared with the industry’s rise of 54.7%.
Moreover, all these launches will aid the 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%.
Stiff Competition
We note that the expanding smart home devices portfolio will continue to aid Alphabet to compete well with some notable industry players like Amazon AMZN and Apple AAPL, which are also making concerted efforts to gain a solid footing in the smart home market space.
Notably, Amazon expanded its family of Echo devices by introducing Echo Show 8, Echo Hub and Echo Frames, which are expected to deliver customized, proactive and intuitive Alexa experiences.
Further, Amazon infused generative AI into the Fire TV ecosystem to enable voice search, personalized recommendations and personalized content search based on specific preferences.
Meanwhile, Apple’s release of a second-generation powerful smart speaker, HomePod, which boasts advanced computational audio and Siri intelligence, immersive Spatial Audio tracks, allowing users to manage tasks, create automation and check room temperature and humidity, remains noteworthy.
Additionally, Apple released HomePod software update 17 and is set to release version 17.1, allowing users to mute phone calls and use HomePod minis or full-size speakers as speakers with Apple TV.
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, which currently sports a 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 35.2% 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. | Stiff Competition We note that the expanding smart home devices portfolio will continue to aid Alphabet to compete well with some notable industry players like Amazon AMZN and Apple AAPL, which are also making concerted efforts to gain a solid footing in the smart home market space. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : 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. Notably, Google unveiled Fuchsia version 14, a preview update of its in-house operating system, for the Nest Hub series. | Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : 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. Stiff Competition We note that the expanding smart home devices portfolio will continue to aid Alphabet to compete well with some notable industry players like Amazon AMZN and Apple AAPL, which are also making concerted efforts to gain a solid footing in the smart home market space. Our model projects fourth-quarter 2023 Google Services revenues at $72.79 billion, indicating growth of 7.3% from 2022. | Stiff Competition We note that the expanding smart home devices portfolio will continue to aid Alphabet to compete well with some notable industry players like Amazon AMZN and Apple AAPL, which are also making concerted efforts to gain a solid footing in the smart home market space. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : 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 Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Growth Prospects Apart from the latest launch, Alphabet announced that Google’s smart home controller app, Google Home, will be available to everyone, with upgraded features including a new Favorites tab, improved camera interface, support for new device types and iPhone integration for Matter devices. | Stiff Competition We note that the expanding smart home devices portfolio will continue to aid Alphabet to compete well with some notable industry players like Amazon AMZN and Apple AAPL, which are also making concerted efforts to gain a solid footing in the smart home market space. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : 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 GOOGL is enhancing its Google smart home devices portfolio on the back of new feature updates and releases. |
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12313.0 | 2023-12-01 00:00:00 UTC | Looking for Income? These 3 Unusually Active Options Should Generate Income Over the Next 7 Days | AAPL | https://www.nasdaq.com/articles/looking-for-income-these-3-unusually-active-options-should-generate-income-over-the-next-7 | The S&P 500 gained 8.9% in November, the second-best November performance since 1980. Only November 2020 did better. The penultimate month of the year is starting to look like a sure-fire winner. In the past decade, the index has finished in negative territory on just one occasion, in 2021.
The Federal Reserve is expected to leave interest rates alone when it meets for the last time in 2023 on Dec. 13. That should be good for stocks in December, prompting many to suggest that a Santa rally is here and could continue for weeks.
However, PNC Asset Management Group chief investment officer Amanda Agati told Yahoo Finance on Tuesday that a Santa Claus rally is unlikely.
“I think what we're left with is a bit of a rangebound kind of choppy market from here through year-end,” Agati said.
So, with uncertainty about the markets’ momentum, it might be time to look for a few income plays heading into December. These three unusually active options from Thursday should help get you started.
Have an excellent weekend!
Snowflake
Snowflake (SNOW) stock gained more than 26% over the past month. The data-as-a-service (DaaS) cloud computing company is now up 35% year-to-date, with one left in the year before closing the books on 2023 trading.
Although I wouldn’t sneeze at a 26% gain in a single month, SNOW stock has traded near $400 on two occasions in the past five years -- November 2021 and December 2020 -- so there’s plenty of room for Snowflake’s share price to run in the months ahead.
Berkshire Hathaway (BRK.B), Warren Buffett’s holding company, owns 1.9% of Snowflake, a position taken in 2020’s third quarter at an average price of $238.10, well above where it’s currently trading. He can afford to be patient with his investments.
Analysts generally like Snowflake. Of the 34 that cover its stock, 24 rate it a Moderate or Strong Buy (4.29 out of 5). However, the target price of $187.24 is only a few dollars higher than where it’s currently trading.
The company reported Q3 2024 results on Wednesday. They were very healthy, with revenues of $734 million, 32% higher than a year earlier and more than $20 million higher than the analyst estimate. On the bottom line, its adjusted earnings per share were $0.25, nine cents higher than the consensus.
It finished the quarter with remaining performance obligations of $3.7 billion, 23% higher than a year ago, with 436 customers generating more than $1 million over the trailing 12 months.
For 2024, it expects revenues to grow by 37% to $2.65 billion, with an operating margin of 7%, both higher than analyst expectations.
The income play is the Dec. 8 $180 put. If you sell one of those bad boys, you’ll pocket $140 per contract should its share price remain above $180 for the next week. The annualized yield of 42%. Should it fall to $180, your net price would be $178.60.
Given the latest results, it’s hard to see its shares retreating much between now and next Friday.
Apple
Apple (AAPL) had seven unusually active options on Thursday, with Vol/OI ratios ranging from a low of 1.30 to a high of 8.87.
I’ve narrowed it down to two calls: Dec. 8 $187.50 and Dec. 8 $197.50. The former Vol/OI was 8.87, while the latter’s was 1.99. Their ask prices were $3.55 and $0.11, respectively.
Ok, first, I’m going to assume you know why Apple is Berkshire Hathaway’s largest equity holding by a country mile, accounting for 48.2% of its $363 billion equity portfolio.
So, based on yesterday’s closing price of $189.95, AAPL stock has to rise by 2.6% or $5.02 in the next week to double your money on the $187.50 call. For the $197.50 call, the share price has to rise by 1.0% or $1.92 by next Friday to double your money.
As I write this, AAPL stock is up $1.40 in Friday trading, getting you nearly three-quarters of the way to the $1.92 bump needed on the $197.50 call. Today's ask price is up a penny to $0.12, with a $1.88 increase required to double your money.
This would be the safest of the three bets.
Beyond Meat
There is a good possibility that the struggling plant-based food company’s stock bottomed in late October at around $5.58. Since hitting a 52-week low, Beyond Meat (BYND) is up 34%. While it’s got a long way to go to get back to $235, where it traded in 2019, I think there are brighter times ahead for the company and its stock.
As I write this, halfway through Friday trading, Beyond Meat’s options volume is already at 16,402, nearly 80% of its 30-day average. The number of shares traded is relatively decent at 1.14 million, roughly half its 30-day average.
So, BYND had five options with unusual options activity on Thursday. I’m interested in the one with the highest volume-to-open-interest (Vol/OI) ratio. That would be the Dec. 8 $6.50 put with a 9.30 Vol/OI.
If you sell this contract, the bid of $0.35 is an annualized yield of 250%. It’s that high because of the risk associated with owning BYND stock.
While I understand one’s apprehension about making this bet -- it’s definitely an aggressive play -- I wouldn’t suggest it if it were longer than a week or two.
Beyond Meat reported its Q3 2023 results in early November, which were awful. Revenues fell 8.7% to $75.3 million, while it lost $57.5 million on an adjusted EBITDA basis, down from $73.8 million a year earlier.
“As we shared last week, we are conducting a review of our global operations for purposes of further and significantly reducing our operating expense base as we seek to accelerate our transition to a sustainable and, ultimately, profitable business,” stated CEO Ethan Brown.
Beyond Meat’s operating expenses fell by 29% to $182.3 million through the first nine months of the year. As it continues to hack away at its costs, the cash saved gives it more time to figure out a way out of the deep hole it’s dug for itself.
The company’s $1.15 billion in 0% convertible senior notes due March 15, 2027, have a fair value of $299 million, or just 26% of the face value. I’m not a credit expert, but those would be a possible contrarian buy, possibly a much better opportunity than its stock.
But that is a subject for another day.
More Options News from Barchart
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2 Option Ideas To Consider This Thursday
Everything You Need to Know About Michael Burry's 'Big Short' Bet on Chip Stocks
On the date of publication, Will Ashworth 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. | Apple Apple (AAPL) had seven unusually active options on Thursday, with Vol/OI ratios ranging from a low of 1.30 to a high of 8.87. So, based on yesterday’s closing price of $189.95, AAPL stock has to rise by 2.6% or $5.02 in the next week to double your money on the $187.50 call. As I write this, AAPL stock is up $1.40 in Friday trading, getting you nearly three-quarters of the way to the $1.92 bump needed on the $197.50 call. | Apple Apple (AAPL) had seven unusually active options on Thursday, with Vol/OI ratios ranging from a low of 1.30 to a high of 8.87. So, based on yesterday’s closing price of $189.95, AAPL stock has to rise by 2.6% or $5.02 in the next week to double your money on the $187.50 call. As I write this, AAPL stock is up $1.40 in Friday trading, getting you nearly three-quarters of the way to the $1.92 bump needed on the $197.50 call. | So, based on yesterday’s closing price of $189.95, AAPL stock has to rise by 2.6% or $5.02 in the next week to double your money on the $187.50 call. Apple Apple (AAPL) had seven unusually active options on Thursday, with Vol/OI ratios ranging from a low of 1.30 to a high of 8.87. As I write this, AAPL stock is up $1.40 in Friday trading, getting you nearly three-quarters of the way to the $1.92 bump needed on the $197.50 call. | So, based on yesterday’s closing price of $189.95, AAPL stock has to rise by 2.6% or $5.02 in the next week to double your money on the $187.50 call. Apple Apple (AAPL) had seven unusually active options on Thursday, with Vol/OI ratios ranging from a low of 1.30 to a high of 8.87. As I write this, AAPL stock is up $1.40 in Friday trading, getting you nearly three-quarters of the way to the $1.92 bump needed on the $197.50 call. |
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12314.0 | 2023-12-01 00:00:00 UTC | US STOCKS-S&P, Nasdaq slip as caution prevails ahead of Powell comments | AAPL | https://www.nasdaq.com/articles/us-stocks-sp-nasdaq-slip-as-caution-prevails-ahead-of-powell-comments | By Shristi Achar A and Amruta Khandekar
Dec 1 (Reuters) - The S&P 500 and Nasdaq fell on Friday as investors were on edge ahead of Federal Reserve Chair Jerome Powell's comments that some fear may have a hawkish tilt towards monetary policy.
This comes after both the indexes finished November with their biggest monthly gain since July 2022, while the Dow Jones .DJI rallied to close at its highest level since January 2022.
The rally has been driven by a slew of recent data including Thursday's personal consumption expenditure index that signalled easing inflation and bolstered hopes the central bank would now end its interest rate hikes and could start lowering them soon.
But after recent conflicting policy remarks from some policymakers, investors are concerned that Powell could push back against the rate cut narrative. Powell is expected to speak at two separate events at 11 a.m. ET and 2 p.m. ET.
"Especially because of the ebullience of the markets over the last couple of weeks, there probably is a hawkish message that he's going to deliver today," said Kim Forrest, chief investment officer at Bokeh Capital Partners.
Investors will also monitor comments from Fed Governors Lisa Cook and Chicago Fed President Austan Goolsbee, scheduled to speak during the day.
A pause in rate hikes has been fully priced in for the upcoming December policy meeting, and traders also see an about 48% chance of at least a 25 basis point rate cut in March 2024 and an about 78% chance of another cut in May, according to CME Group's FedWatch tool.
At 9:37 a.m. ET, the Dow Jones Industrial Average .DJI was up 31.40 points, or 0.09%, at 35,982.29, the S&P 500 .SPX was down 9.04 points, or 0.20%, at 4,558.76, and the Nasdaq Composite .IXIC was down 68.61 points, or 0.48%, at 14,157.61.
TeslaTSLA.O underperformed megacap peers, falling 2.5% as the EV maker priced its Cybertruck above its initial forecast.
Also among top drags, PfizerPFE.N fell 6.5% as the drugmaker scrapped its plan to advance a twice-daily version of oral weight-loss drug danuglipron into late-stage studies.
Keeping the Dow Jones .DJI afloat was an about 1% rise in shares of aircraft firm Boeing BA.N and healthcare giant Johnson & Johnson JNJ.N.
Among other stocks, U.S.-listed shares of AlibabaBABA.N slipped 3.0% after Morgan Stanley downgraded the e-commerce giant, citing slower turnaround in customer management revenue (CMR).
Marvell TechnologyMRVL.O shed 6.7% after the chipmaker's fourth-quarter revenue forecast fell short of Street estimates.
Ulta BeautyULTA.O rose 10.6% after the cosmetics retailer raised the lower end of its annual net sales forecast and named Paula Oyibo its new chief financial officer.
Paramount GlobalPARA.O climbed 1% on a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount.
Declining issues outnumbered advancers for a 1.19-to-1 ratio on the NYSE and for a 1.55-to-1 ratio on the Nasdaq.
The S&P index recorded 19 new 52-week highs and one new low, while the Nasdaq recorded 19 new highs and 36 new lows.
U.S. inflation is falling https://tmsnrt.rs/3R3OjrB
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Shinjini Ganguli)
(([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. | Paramount GlobalPARA.O climbed 1% on a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. By Shristi Achar A and Amruta Khandekar Dec 1 (Reuters) - The S&P 500 and Nasdaq fell on Friday as investors were on edge ahead of Federal Reserve Chair Jerome Powell's comments that some fear may have a hawkish tilt towards monetary policy. The rally has been driven by a slew of recent data including Thursday's personal consumption expenditure index that signalled easing inflation and bolstered hopes the central bank would now end its interest rate hikes and could start lowering them soon. | Paramount GlobalPARA.O climbed 1% on a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. This comes after both the indexes finished November with their biggest monthly gain since July 2022, while the Dow Jones .DJI rallied to close at its highest level since January 2022. The S&P index recorded 19 new 52-week highs and one new low, while the Nasdaq recorded 19 new highs and 36 new lows. | Paramount GlobalPARA.O climbed 1% on a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. By Shristi Achar A and Amruta Khandekar Dec 1 (Reuters) - The S&P 500 and Nasdaq fell on Friday as investors were on edge ahead of Federal Reserve Chair Jerome Powell's comments that some fear may have a hawkish tilt towards monetary policy. A pause in rate hikes has been fully priced in for the upcoming December policy meeting, and traders also see an about 48% chance of at least a 25 basis point rate cut in March 2024 and an about 78% chance of another cut in May, according to CME Group's FedWatch tool. | Paramount GlobalPARA.O climbed 1% on a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. By Shristi Achar A and Amruta Khandekar Dec 1 (Reuters) - The S&P 500 and Nasdaq fell on Friday as investors were on edge ahead of Federal Reserve Chair Jerome Powell's comments that some fear may have a hawkish tilt towards monetary policy. This comes after both the indexes finished November with their biggest monthly gain since July 2022, while the Dow Jones .DJI rallied to close at its highest level since January 2022. |
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12315.0 | 2023-12-01 00:00:00 UTC | 1 Glaring Risk for Apple Stock Investors That Just Got More Concerning | AAPL | https://www.nasdaq.com/articles/1-glaring-risk-for-apple-stock-investors-that-just-got-more-concerning | Surprising news emerged from the Department of Justice's (DOJ) antitrust lawsuit against Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) recently. According to media reports, a witness stated that Apple (NASDAQ: AAPL) receives 36% of the Google Search revenue that goes through the Safari browser that Apple pre-installs on its devices. This was a startling figure and I think it highlights a weakness Apple investors need to be aware of now.
Apple and Google's search relationship
To put some context on Apple and Google's search distribution relationship, let's go back a few years. When Apple products saw a resurgence in popularity during the early 2000s, Google went to the hardware maker and struck a deal with it to make Google the default search engine on Apple's pre-installed Safari internet browser.
Recent reporting from The New York Times indicates that Google paid Apple around $18 billion in 2021 for the privilege, though it's not clear if that's on top of the 36% or not. Since search advertising provides the majority of Alphabet's $300 billion in annual revenue, it makes sense Google was willing to pay up to be the default.
Details of the Apple-Google agreement have been kept under wraps for many years, but thanks to the DOJ's current lawsuit , outsiders can now start to piece things together, including a witness's assertion that Apple receives 36% of the Google Search revenue earned through the Safari browser. In other words, for every $100 in revenue Alphabet earns through Safari, it pays $36 to Apple.
While many people were surprised by this testimony, some big numbers had been circulating -- as much as $20 billion annually that Alphabet pays to Apple each year. If $20 billion were the figure, at a 36% cut, that would mean Google Search earns about $55 billion in revenue through Safari.
Whatever the exact numbers are, suffice it to say Apple is receiving billions of dollars a year from Alphabet in exchange for making Google the default search engine on its mobile devices.
If the courts decide this deal is anticompetitive and the worst happens, that revenue stream could evaporate for Apple. While Apple could have ways to try to make up any lost revenue, there would be a lot of uncertainty in the situation, and that would be worrisome for Apple investors.
Estimating the potential impact to Apple
Over the 12 months ended in late September, Apple generated $383 billion in revenue. In that context, one might think that losing even the max rumored annual payment from Google ($20 billion) would be no big deal for the tech giant, as that's only 5% of the recent 12-month total. However, this would overlook the fact that Alphabet's distribution payments to Apple likely come at close to a 100% profit margin. Making Google the default search engine on Safari requires minimal work on Apple's part.
In that light, it's clearer why losing the search engine deal could have a major impact on Apple's financials. Over the 12 months ended in late September, Apple generated $114 billion in operating income. Shaving $20 billion off this number would amount to a 17.5% cut in its operating income. At the lower end of the rumors about annual payments -- $10 billion -- that would look like almost 9%.
The big risk for investors
Looking at Apple's stock price, I don't think investors are pricing in the possibility of Apple losing this distribution payment. The stock currently trades at a price-to-earnings ratio of 31, which is well above the market average. And it's not like Apple is lighting the world on fire with growth. After the pandemic-driven demand boom, its revenue has been stagnating, as have its earnings.
AAPL Revenue (Annual) data by YCharts
If the courts rule against Alphabet, it is unlikely that Apple would be able to replicate its deal with any other search engine provider. First, there's no other company in a position to make such a payment and, more importantly, if the courts rule against such preferential placement, then it's not allowed for anyone. Logically, it is all or nothing for Apple here.
Perhaps Apple could make it up with an internal Apple search engine product, but launching this would require a ton of development costs and would be going up against Google's 25 years of product improvements, creating a ton of uncertainty.
A big drop in earnings would likely result in at least a matching drop in Apple's share price. Yes, the company has a great brand, but it trades at 31 times earnings, is delivering no revenue growth, and is at risk of losing billions in annual profits at the hammer of a gavel. That doesn't seem like a recipe for good stock returns.
You can find a better blue chip to add to your portfolio than Apple right now. Avoid this stock for the time being.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet and 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. | According to media reports, a witness stated that Apple (NASDAQ: AAPL) receives 36% of the Google Search revenue that goes through the Safari browser that Apple pre-installs on its devices. AAPL Revenue (Annual) data by YCharts If the courts rule against Alphabet, it is unlikely that Apple would be able to replicate its deal with any other search engine provider. Details of the Apple-Google agreement have been kept under wraps for many years, but thanks to the DOJ's current lawsuit , outsiders can now start to piece things together, including a witness's assertion that Apple receives 36% of the Google Search revenue earned through the Safari browser. | According to media reports, a witness stated that Apple (NASDAQ: AAPL) receives 36% of the Google Search revenue that goes through the Safari browser that Apple pre-installs on its devices. AAPL Revenue (Annual) data by YCharts If the courts rule against Alphabet, it is unlikely that Apple would be able to replicate its deal with any other search engine provider. Apple and Google's search relationship To put some context on Apple and Google's search distribution relationship, let's go back a few years. | According to media reports, a witness stated that Apple (NASDAQ: AAPL) receives 36% of the Google Search revenue that goes through the Safari browser that Apple pre-installs on its devices. AAPL Revenue (Annual) data by YCharts If the courts rule against Alphabet, it is unlikely that Apple would be able to replicate its deal with any other search engine provider. Apple and Google's search relationship To put some context on Apple and Google's search distribution relationship, let's go back a few years. | According to media reports, a witness stated that Apple (NASDAQ: AAPL) receives 36% of the Google Search revenue that goes through the Safari browser that Apple pre-installs on its devices. AAPL Revenue (Annual) data by YCharts If the courts rule against Alphabet, it is unlikely that Apple would be able to replicate its deal with any other search engine provider. If $20 billion were the figure, at a 36% cut, that would mean Google Search earns about $55 billion in revenue through Safari. |
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12316.0 | 2023-12-01 00:00:00 UTC | Validea Detailed Fundamental Analysis - AAPL | AAPL | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-aapl-10 | 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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12317.0 | 2023-12-01 00:00:00 UTC | WSJ: Apple In Talks To Bundle Paramount+ With Apple TV+ | AAPL | https://www.nasdaq.com/articles/wsj%3A-apple-in-talks-to-bundle-paramount-with-apple-tv | (RTTNews) - As per a report published in The Wall Street Journal, Apple Inc. (AAPL) and Paramount Global are in talks to bundle Paramount+ and Apple TV+ together, resulting in a lesser cost to subscribers. Paramount+ is a direct-to-consumer digital subscription video on-demand and live streaming service from Paramount, which combines live sports, breaking news, and entertainment.
Paramount delivers premium content to audiences across platforms worldwide. It connects with billions of people—through studios, networks, streaming services, live events, merchandise, and more.
Shares of Paramount Global are up 2% in pre-market trade on Friday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - As per a report published in The Wall Street Journal, Apple Inc. (AAPL) and Paramount Global are in talks to bundle Paramount+ and Apple TV+ together, resulting in a lesser cost to subscribers. Paramount delivers premium content to audiences across platforms worldwide. It connects with billions of people—through studios, networks, streaming services, live events, merchandise, and more. | (RTTNews) - As per a report published in The Wall Street Journal, Apple Inc. (AAPL) and Paramount Global are in talks to bundle Paramount+ and Apple TV+ together, resulting in a lesser cost to subscribers. Paramount+ is a direct-to-consumer digital subscription video on-demand and live streaming service from Paramount, which combines live sports, breaking news, and entertainment. It connects with billions of people—through studios, networks, streaming services, live events, merchandise, and more. | (RTTNews) - As per a report published in The Wall Street Journal, Apple Inc. (AAPL) and Paramount Global are in talks to bundle Paramount+ and Apple TV+ together, resulting in a lesser cost to subscribers. Paramount+ is a direct-to-consumer digital subscription video on-demand and live streaming service from Paramount, which combines live sports, breaking news, and entertainment. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - As per a report published in The Wall Street Journal, Apple Inc. (AAPL) and Paramount Global are in talks to bundle Paramount+ and Apple TV+ together, resulting in a lesser cost to subscribers. Paramount+ is a direct-to-consumer digital subscription video on-demand and live streaming service from Paramount, which combines live sports, breaking news, and entertainment. Paramount delivers premium content to audiences across platforms worldwide. |
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12318.0 | 2023-12-01 00:00:00 UTC | Apple, Paramount discuss bundling their streaming services - WSJ | AAPL | https://www.nasdaq.com/articles/apple-paramount-discuss-bundling-their-streaming-services-wsj | Adds share movement in paragraph 2, details from report in paragraphs 3-4
Dec 1 (Reuters) - Apple AAPL.O and Paramount Global PARA.O have discussed bundling their streaming services at a discount, the Wall Street Journal reported on Friday.
Shares of media company Paramount rose 3% in premarket trading.
The companies have talked about offering a combined Paramount+ and Apple TV+ offering that would cost less than subscribing to both services separately, the report said, citing people familiar with the discussions.
The talks are in their early stages, and it is unclear what shape the bundle could take, the report added.
Apple and Paramount did not immediately respond to Reuters requests for comment.
(Reporting by Chavi Mehta in Bengaluru; Editing by Pooja Desai and Devika Syamnath)
(([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 share movement in paragraph 2, details from report in paragraphs 3-4 Dec 1 (Reuters) - Apple AAPL.O and Paramount Global PARA.O have discussed bundling their streaming services at a discount, the Wall Street Journal reported on Friday. The talks are in their early stages, and it is unclear what shape the bundle could take, the report added. (Reporting by Chavi Mehta in Bengaluru; Editing by Pooja Desai and Devika Syamnath) (([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 share movement in paragraph 2, details from report in paragraphs 3-4 Dec 1 (Reuters) - Apple AAPL.O and Paramount Global PARA.O have discussed bundling their streaming services at a discount, the Wall Street Journal reported on Friday. Shares of media company Paramount rose 3% in premarket trading. The companies have talked about offering a combined Paramount+ and Apple TV+ offering that would cost less than subscribing to both services separately, the report said, citing people familiar with the discussions. | Adds share movement in paragraph 2, details from report in paragraphs 3-4 Dec 1 (Reuters) - Apple AAPL.O and Paramount Global PARA.O have discussed bundling their streaming services at a discount, the Wall Street Journal reported on Friday. The companies have talked about offering a combined Paramount+ and Apple TV+ offering that would cost less than subscribing to both services separately, the report said, citing people familiar with the discussions. (Reporting by Chavi Mehta in Bengaluru; Editing by Pooja Desai and Devika Syamnath) (([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 share movement in paragraph 2, details from report in paragraphs 3-4 Dec 1 (Reuters) - Apple AAPL.O and Paramount Global PARA.O have discussed bundling their streaming services at a discount, the Wall Street Journal reported on Friday. Shares of media company Paramount rose 3% in premarket trading. The companies have talked about offering a combined Paramount+ and Apple TV+ offering that would cost less than subscribing to both services separately, the report said, citing people familiar with the discussions. |
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12319.0 | 2023-12-01 00:00:00 UTC | Nvidia Remains a Must-Own Growth Stock. Here’s Why. | AAPL | https://www.nasdaq.com/articles/nvidia-remains-a-must-own-growth-stock.-heres-why. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With global demand for its microchips and semiconductors accelerating, and the development of AI in its infancy, Nvidia (NASDAQ:NVDA) stock remains a must-own growth play that can carry investors to future riches.
As we close out 2023, the company’s share price has more than tripled since last January, bringing its five-year gain to more than 1,000%. The company achieved a $1 trillion market capitalization earlier this year, and analysts see more runway ahead. The median price target on the stock is 35% higher than current levels. Investors who don’t yet have a position in Nvidia stock would be smart to get one now.
A Closer Look at NVDA Stock
The numbers being put up by Nvidia through its quarterly financial reports are astounding. Few if any other companies are growing at such a fast rate. The company’s most recent print for what was its fiscal third quarter contained some mind-boggling stats.
Revenues in fiscal Q3 rose 206% from a year earlier to a record $18.2 billion. Net income for the quarter came in a $9.2 billion, a 13 times increase over the last year, while net profit margins expanded to a record 51%.
Looking ahead, Nvidia projected revenue for its current fiscal fourth quarter of $20 billion, which represents 231% year-over-year growth.
All of this is being driven by huge demand for its microchips and semiconductors that are used to power complex AI models and applications. In recent weeks, Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and privately held OpenAI have each announced plans to start making their own AI microchips in house simply because they can’t get enough Nvidia chips.
Against this background of skyrocketing global demand, Nvidia recently launched its most powerful microchip yet, the “GH200 GPU,” which has more memory than its current H100 chip and an additional processor.
The company is already seeing huge demand for the new GH200 GPU chip, and it is expected to further drive sales and profits into 2024 and beyond.
Attractive Valuation
One of the many benefits of Nvidia’s record breaking financial results and enormous growth is that it has pushed the company’s stock valuation lower. In fact, NVDA stock has the most attractive valuation of the so-called “Magnificent Seven” securities.
Nvidia’s shares currently trade at an earnings-per-share multiple of around 23 times its 2024 earnings forecast, and 20 times its forecasted earnings for 2025. That makes Nvidia a cheaper stock to buy than either Apple (NASDAQ:AAPL) or Microsoft.
Nvidia’s current valuation puts it in line with the average price-earnings ratio of stocks listed on the benchmark S&P 500 index.
For a company of Nvidia’s size and growth, the current valuation makes it look cheap, especially when compared to other mega-cap tech stocks. There’s also an opportunity to buy NVDA stock right now as the share price has retreated about 5% since its recent earnings.
Some analysts blame the pullback on the stock’s growth being fully priced into the share price; others point to China.
The China Issue
If there’s one cloud hanging over Nvidia right now, other than pressure to meet demand for its technologies, it is China. NVDA stock took a hit earlier this fall when the Biden administration announced export controls on microchips and semiconductors from American companies.
The White House is trying to prevent China from accessing advanced western technologies for fear that the government in Beijing will use them to enhance their military capabilities.
For Nvidia, which derives 25% of its annual revenue from the Chinese market, the export controls have proven to be a problem.
Fortunately, the chip maker appears to have found a way to continue selling its high-end microchips and semiconductors to Chinese companies without violating U.S. laws.
Nvidia has announced plans to sell less powerful versions of its microchips to domestic manufacturers in China. The chips sold to China only have about 50% of the computing power of the company’s top tier H100 chip.
The new low powered chips comply with U.S. export restrictions pertaining to China. Nvidia is also continuing to sell microchips to China that are used in electric vehicles that are being developed in the nation of 1.4 billion people.
There were recent media reports that Nvidia plans to delay the rollout of its new AI microchips for China until the first quarter of 2024. But this appears to be a very near-term problem that shouldn’t impact Nvidia’s long-term growth or share price appreciation.
Buy NVDA Stock
There’s an argument to be made that Nvidia is the most consequential company and stock of 2023. Certainly, no other company has contributed more to the AI revolution than Nvidia. And few stocks have benefitted as much from the market mania surrounding AI.
However, Nvidia has the financial results to justify its enormous share price appreciation. And its valuation looks attractive as a result. With more upside and growth ahead, investors would be foolish to sit out the rally. NVDA stock is a buy.
On the date of publication, Joel Baglole held long positions in NVDA, MSFT and 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That makes Nvidia a cheaper stock to buy than either Apple (NASDAQ:AAPL) or Microsoft. On the date of publication, Joel Baglole held long positions in NVDA, MSFT and AAPL. Against this background of skyrocketing global demand, Nvidia recently launched its most powerful microchip yet, the “GH200 GPU,” which has more memory than its current H100 chip and an additional processor. | That makes Nvidia a cheaper stock to buy than either Apple (NASDAQ:AAPL) or Microsoft. On the date of publication, Joel Baglole held long positions in NVDA, MSFT and AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips With global demand for its microchips and semiconductors accelerating, and the development of AI in its infancy, Nvidia (NASDAQ:NVDA) stock remains a must-own growth play that can carry investors to future riches. | That makes Nvidia a cheaper stock to buy than either Apple (NASDAQ:AAPL) or Microsoft. On the date of publication, Joel Baglole held long positions in NVDA, MSFT and AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips With global demand for its microchips and semiconductors accelerating, and the development of AI in its infancy, Nvidia (NASDAQ:NVDA) stock remains a must-own growth play that can carry investors to future riches. | That makes Nvidia a cheaper stock to buy than either Apple (NASDAQ:AAPL) or Microsoft. On the date of publication, Joel Baglole held long positions in NVDA, MSFT and AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips With global demand for its microchips and semiconductors accelerating, and the development of AI in its infancy, Nvidia (NASDAQ:NVDA) stock remains a must-own growth play that can carry investors to future riches. |
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12320.0 | 2023-12-01 00:00:00 UTC | Should You Really Invest in Stocks Now -- or Wait Until the New Year? | AAPL | https://www.nasdaq.com/articles/should-you-really-invest-in-stocks-now-or-wait-until-the-new-year | The market is rallying, with all three major indexes climbing and top stocks such as Amazon (NASDAQ: AMZN), Tesla (NASDAQ: TSLA), and Apple (NASDAQ: AAPL) leading the way. These industry leaders and many of today's other best performers suffered last year, as indexes wandered into bear territory. In spite of this year's gains, though, we still haven't reached that phase of expansion we're all waiting for: the next bull market.
At the same time, economic woes such as high prices still are weighing on consumers and businesses -- an element that could hold back spending and put a dent in corporate earnings, therefore weighing on stock prices. And as we step into December, many people are thinking more about preparing for the holidays than investing.
So, even though recent stock market gains are a reason to cheer, should you really invest now -- or wait until the new year? Let's find out.
Image source: Getty Images.
The Santa Claus rally
The whole month of December doesn't necessarily follow any sort of trend when it comes to gains or losses. For example, December brought the S&P 500 index a loss of about 5% last year and a gain of about as much in the previous year.
But, generally, the last five trading days of the year and the first two of the new year show something different: an increase in the S&P 500 known as the Santa Claus rally. This generally results in the index climbing a little more than 1% during the trading period.
If you happen to be invested in stocks that join in on this rally, wonderful! But the Santa Claus rally isn't a good argument for buying stocks right now. First, stocks you choose may not even take part in this rally, and second, over the long run, gains of a few percentage points won't make much of a difference in your overall returns.
At the same time, I wouldn't necessarily avoid stocks because economic headwinds remain. Market environments are temporary, and history shows us bear markets have always led to bull markets. So, even if we can't pinpoint exactly when the time of market expansion will arrive, we know it's on the way.
Let's consider another factor: Yes, we know better times are ahead, but it's possible that before reaching that point, some stocks could fall further. We might be tempted to wait until the economy and the stock market both are looking great -- and then start buying. The problem there is it's pretty much impossible to predict a stock's low point, and while waiting, you could miss out on great buying opportunities.
The importance of long-term investing
Now, let's talk about what all of this means for you right now. If you invest for the long term -- and that's the best way to invest -- any time is a great time to buy stocks. As I mentioned, when you're holding stocks for a number of years, a gain or loss of a few percentage points won't make a big difference.
Instead, examine a stock's valuation, and if it looks reasonably priced, now makes a fine time to scoop up the shares.
The points I've talked about -- the Santa Claus rally, today's economy, or even a stock's possible bottom -- all impact short-term investing. Luckily, as long-term investors, we don't have to worry so much about these elements and instead can focus on companies' prospects over the long haul.
Holding for the long term implies at least five years, but you often can generate even better returns if you extend that to a decade or more. This allows the company time to develop, grow earnings, or even recover and go on to excel if it's been through a difficult period -- and it offers you time to benefit from all of this.
Year-end investing could be right for you
I said any time is a good time to invest, and I mean that, but the end of the year represents a particularly promising moment. That's because you can look back on your annual performance -- not just this year, but your performance in past years too -- and make adjustments to your holdings in order to start your new investing year off right.
For example, you might notice that dividend stocks have contributed significantly to your gains over time -- and you may want to add to those positions. Or, with the idea of a new bull market ahead, you could add to growth stocks -- especially if you're an aggressive investor.
Finally, investing also is about seizing opportunities as they arise, so if a particular stock interests you now, take action. It could pay off in 2024 and beyond.
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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, 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 market is rallying, with all three major indexes climbing and top stocks such as Amazon (NASDAQ: AMZN), Tesla (NASDAQ: TSLA), and Apple (NASDAQ: AAPL) leading the way. First, stocks you choose may not even take part in this rally, and second, over the long run, gains of a few percentage points won't make much of a difference in your overall returns. The problem there is it's pretty much impossible to predict a stock's low point, and while waiting, you could miss out on great buying opportunities. | The market is rallying, with all three major indexes climbing and top stocks such as Amazon (NASDAQ: AMZN), Tesla (NASDAQ: TSLA), and Apple (NASDAQ: AAPL) leading the way. First, stocks you choose may not even take part in this rally, and second, over the long run, gains of a few percentage points won't make much of a difference in your overall returns. As I mentioned, when you're holding stocks for a number of years, a gain or loss of a few percentage points won't make a big difference. | The market is rallying, with all three major indexes climbing and top stocks such as Amazon (NASDAQ: AMZN), Tesla (NASDAQ: TSLA), and Apple (NASDAQ: AAPL) leading the way. So, even though recent stock market gains are a reason to cheer, should you really invest now -- or wait until the new year? If you invest for the long term -- and that's the best way to invest -- any time is a great time to buy stocks. | The market is rallying, with all three major indexes climbing and top stocks such as Amazon (NASDAQ: AMZN), Tesla (NASDAQ: TSLA), and Apple (NASDAQ: AAPL) leading the way. For example, December brought the S&P 500 index a loss of about 5% last year and a gain of about as much in the previous year. If you invest for the long term -- and that's the best way to invest -- any time is a great time to buy stocks. |
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12321.0 | 2023-12-01 00:00:00 UTC | CMA Wins Appeal From UK High Court In Apple Case | AAPL | https://www.nasdaq.com/articles/cma-wins-appeal-from-uk-high-court-in-apple-case | (RTTNews) - The Competition and Markets Authority or CMA has won an appeal from UK High Court, allowing it to open a market investigation into mobile browsers and cloud gaming, mainly of tech major Apple Inc. (AAPL).
The ruling overturns the Competition Appeal Tribunal or CAT's decision in March 2023, which upheld an appeal by Apple and suspended CMA's investigation.
In a unanimous judgement, High Court now found that CAT had erred in its interpretation of the Enterprise Act 2002.
The UK regulator had exercised its power under the Enterprise Act 2002 to make a market investigation reference in relation to the market for mobile browsers and cloud gaming in November 2022.
The lawfulness of that decision was challenged by Apple by appealing to the CAT which was heard on March 10.
CAT then had upheld the appeal made by Apple and suspended the CMA's investigation pending the Court of Appeal's judgment on March 31.
Following this, CMA appealed the CAT's judgment. The judges, including Lord Justice Green, Lord Justice Arnold, and the Chancellor of the High Court, now ruled that CMA's standalone power carries with it sufficient and important public law safeguards, overturning the CAT's decision.
"There is no overarching principle that an undertaking is entitled to be investigated once and only once. The principal purpose of the Enterprise Act is to promote competition and protect consumers" and, in its view, the Tribunal "lost sight of this consideration", the court said in a statement.
On Thursday, Apple shares are trading at $189.95, up 0.31% in the Nasdaq.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - The Competition and Markets Authority or CMA has won an appeal from UK High Court, allowing it to open a market investigation into mobile browsers and cloud gaming, mainly of tech major Apple Inc. (AAPL). In a unanimous judgement, High Court now found that CAT had erred in its interpretation of the Enterprise Act 2002. The judges, including Lord Justice Green, Lord Justice Arnold, and the Chancellor of the High Court, now ruled that CMA's standalone power carries with it sufficient and important public law safeguards, overturning the CAT's decision. | (RTTNews) - The Competition and Markets Authority or CMA has won an appeal from UK High Court, allowing it to open a market investigation into mobile browsers and cloud gaming, mainly of tech major Apple Inc. (AAPL). The ruling overturns the Competition Appeal Tribunal or CAT's decision in March 2023, which upheld an appeal by Apple and suspended CMA's investigation. CAT then had upheld the appeal made by Apple and suspended the CMA's investigation pending the Court of Appeal's judgment on March 31. | (RTTNews) - The Competition and Markets Authority or CMA has won an appeal from UK High Court, allowing it to open a market investigation into mobile browsers and cloud gaming, mainly of tech major Apple Inc. (AAPL). The ruling overturns the Competition Appeal Tribunal or CAT's decision in March 2023, which upheld an appeal by Apple and suspended CMA's investigation. CAT then had upheld the appeal made by Apple and suspended the CMA's investigation pending the Court of Appeal's judgment on March 31. | (RTTNews) - The Competition and Markets Authority or CMA has won an appeal from UK High Court, allowing it to open a market investigation into mobile browsers and cloud gaming, mainly of tech major Apple Inc. (AAPL). The ruling overturns the Competition Appeal Tribunal or CAT's decision in March 2023, which upheld an appeal by Apple and suspended CMA's investigation. The lawfulness of that decision was challenged by Apple by appealing to the CAT which was heard on March 10. |
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12322.0 | 2023-12-01 00:00:00 UTC | Apple To Be First And Largest Customer Of Amkor's $2 Bln Chip Packaging Plant | AAPL | https://www.nasdaq.com/articles/apple-to-be-first-and-largest-customer-of-amkors-%242-bln-chip-packaging-plant | (RTTNews) - Apple Inc. announced it will be the first and largest customer of Amkor Technology, Inc.'s new $2 billion advanced silicon manufacturing and packaging facility being developed in Peoria, Arizona. The expanded partnership supports the tech major's efforts to manufacture its products in the United States.
With its new advanced packaging and test facility, Amkor, a provider of semiconductor packaging and test services, said it is enabling a resilient domestic semiconductor supply chain.
The new facility, which is expected to employ around 2,000 people upon completion, will package Apple silicon produced at the nearby Taiwan Semiconductor Manufacturing Co Ltd. or TSMC fab, where Apple is also the largest customer.
Upon completion, the new facility would be the largest outsourced advanced packaging facility in the U.S.
For the plant, Amkor has secured around 55 acres of land with intent to build a state-of-the-art manufacturing campus with more than 500,000 square feet of clean room space. It is expected that the first phase of the manufacturing plant would be ready for production within the next two to three years.
According to Amkor, it is the only US-headquartered outsourced semiconductor assembly and test or OSAT service provider with advanced packaging technology capability and high-volume manufacturing experience.
Jeff Williams, Apple's chief operating officer, said, "Apple is deeply committed to the future of American manufacturing, and we'll continue to expand our investment here in the United States.... Apple and Amkor have worked together for more than a decade packaging chips used extensively in all Apple products, and we are thrilled that this partnership will now deliver the largest OSAT advanced packaging facility in the United States."
Arizona Senator Mark Kelly added that Amkor's $2 billion project will create good-paying jobs, strengthen local economy, and help protect national security, as well as help reduce dependence on other countries in the microchip supply chain.
Commerce Secretary Gina Raimondo recently highlighted advanced packaging as a major area of focus for the US government's effort to rebuild American semiconductor manufacturing. According to the Commerce Department, developing robust advanced manufacturing capacity and capability is a key priority and essential to the success of the CHIPS program.
Apple in 2021 had committed to invest $430 billion in the U.S. economy over five years. The company is expecting to meet its target through direct spend with American suppliers, data center investments, capital expenditures in the U.S., and other domestic spend.
Amkor further said it has applied for funding for the new facility from CHIPS and Science Act, which was established to boost US competitiveness, innovation, and national security in the semiconductor industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | According to Amkor, it is the only US-headquartered outsourced semiconductor assembly and test or OSAT service provider with advanced packaging technology capability and high-volume manufacturing experience. Arizona Senator Mark Kelly added that Amkor's $2 billion project will create good-paying jobs, strengthen local economy, and help protect national security, as well as help reduce dependence on other countries in the microchip supply chain. Commerce Secretary Gina Raimondo recently highlighted advanced packaging as a major area of focus for the US government's effort to rebuild American semiconductor manufacturing. | (RTTNews) - Apple Inc. announced it will be the first and largest customer of Amkor Technology, Inc.'s new $2 billion advanced silicon manufacturing and packaging facility being developed in Peoria, Arizona. With its new advanced packaging and test facility, Amkor, a provider of semiconductor packaging and test services, said it is enabling a resilient domestic semiconductor supply chain. According to Amkor, it is the only US-headquartered outsourced semiconductor assembly and test or OSAT service provider with advanced packaging technology capability and high-volume manufacturing experience. | (RTTNews) - Apple Inc. announced it will be the first and largest customer of Amkor Technology, Inc.'s new $2 billion advanced silicon manufacturing and packaging facility being developed in Peoria, Arizona. With its new advanced packaging and test facility, Amkor, a provider of semiconductor packaging and test services, said it is enabling a resilient domestic semiconductor supply chain. Jeff Williams, Apple's chief operating officer, said, "Apple is deeply committed to the future of American manufacturing, and we'll continue to expand our investment here in the United States.... Apple and Amkor have worked together for more than a decade packaging chips used extensively in all Apple products, and we are thrilled that this partnership will now deliver the largest OSAT advanced packaging facility in the United States." | (RTTNews) - Apple Inc. announced it will be the first and largest customer of Amkor Technology, Inc.'s new $2 billion advanced silicon manufacturing and packaging facility being developed in Peoria, Arizona. The new facility, which is expected to employ around 2,000 people upon completion, will package Apple silicon produced at the nearby Taiwan Semiconductor Manufacturing Co Ltd. or TSMC fab, where Apple is also the largest customer. Apple in 2021 had committed to invest $430 billion in the U.S. economy over five years. |
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12323.0 | 2023-11-30 00:00:00 UTC | UK antitrust regulator wins appeal over Apple probe | AAPL | https://www.nasdaq.com/articles/uk-antitrust-regulator-wins-appeal-over-apple-probe | Adds details from ruling and CMA comment in paragraphs 4-6
LONDON, Nov 30 (Reuters) - Britain's antitrust regulator won an appeal on Thursday against a ruling blocking its investigation into Apple Inc's AAPL.O mobile browser and cloud gaming services.
The Competition and Markets Authority (CMA) opened a full investigation last year into the dominance of Apple and Alphabet Inc's Google GOOGL.O in mobile browsers, and the possibility of the iPhone maker restricting the cloud gaming market through its app store.
Apple argued that the CMA had "no power" to launch such an inquiry because it did so too late and the Competition Appeal Tribunal (CAT) ruled in Apple's favour in March, but the Court of Appeal in London overturned that decision on Thursday.
Judge Nicholas Green said in a written ruling that the CAT had "lost sight" of the CMA's role to "promote competition and protect consumers".
Sarah Cardell, chief executive of the CMA, welcomed the decision which she said "gives the CMA the backing it needs to protect consumers and promote competition in UK".
She added that the CMA is ready to reopen the investigation "when the legal process is complete".
(Reporting by Sam Tobin; editing by Michael Holden)
(([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 ruling and CMA comment in paragraphs 4-6 LONDON, Nov 30 (Reuters) - Britain's antitrust regulator won an appeal on Thursday against a ruling blocking its investigation into Apple Inc's AAPL.O mobile browser and cloud gaming services. The Competition and Markets Authority (CMA) opened a full investigation last year into the dominance of Apple and Alphabet Inc's Google GOOGL.O in mobile browsers, and the possibility of the iPhone maker restricting the cloud gaming market through its app store. Judge Nicholas Green said in a written ruling that the CAT had "lost sight" of the CMA's role to "promote competition and protect consumers". | Adds details from ruling and CMA comment in paragraphs 4-6 LONDON, Nov 30 (Reuters) - Britain's antitrust regulator won an appeal on Thursday against a ruling blocking its investigation into Apple Inc's AAPL.O mobile browser and cloud gaming services. Apple argued that the CMA had "no power" to launch such an inquiry because it did so too late and the Competition Appeal Tribunal (CAT) ruled in Apple's favour in March, but the Court of Appeal in London overturned that decision on Thursday. Sarah Cardell, chief executive of the CMA, welcomed the decision which she said "gives the CMA the backing it needs to protect consumers and promote competition in UK". | Adds details from ruling and CMA comment in paragraphs 4-6 LONDON, Nov 30 (Reuters) - Britain's antitrust regulator won an appeal on Thursday against a ruling blocking its investigation into Apple Inc's AAPL.O mobile browser and cloud gaming services. The Competition and Markets Authority (CMA) opened a full investigation last year into the dominance of Apple and Alphabet Inc's Google GOOGL.O in mobile browsers, and the possibility of the iPhone maker restricting the cloud gaming market through its app store. Apple argued that the CMA had "no power" to launch such an inquiry because it did so too late and the Competition Appeal Tribunal (CAT) ruled in Apple's favour in March, but the Court of Appeal in London overturned that decision on Thursday. | Adds details from ruling and CMA comment in paragraphs 4-6 LONDON, Nov 30 (Reuters) - Britain's antitrust regulator won an appeal on Thursday against a ruling blocking its investigation into Apple Inc's AAPL.O mobile browser and cloud gaming services. Judge Nicholas Green said in a written ruling that the CAT had "lost sight" of the CMA's role to "promote competition and protect consumers". Sarah Cardell, chief executive of the CMA, welcomed the decision which she said "gives the CMA the backing it needs to protect consumers and promote competition in UK". |
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12324.0 | 2023-11-30 00:00:00 UTC | Japan aircon king Daikin looks to custom chips for energy savings | AAPL | https://www.nasdaq.com/articles/japan-aircon-king-daikin-looks-to-custom-chips-for-energy-savings | By Sam Nussey and Miho Uranaka
TOKYO, Dec 1 (Reuters) - Japanese air conditioner maker Daikin Industries 6367.T is turning to custom-made semiconductors to eke out energy savings, as companies increasingly look to bespoke chip designs to enhance performance.
As tech heavyweights such as Apple AAPL.O and Amazon AMZN.O spend heavily on custom cutting-edge chips, companies using legacy chips are also looking to introduce custom silicon.
Osaka-headquartered Daikin, which expects to make 10 million home air conditioners in the current financial year, said it is partnering with a Japanese design company to customise logic chips for inverters used in its air conditioners.
Inverters adjust the speed of an air conditioner's motor to save energy. They are standard in Japan and the European Union but less common in the United States.
The custom chips, to be made by Taiwan's TSMC 2330.TW, cost more than off-the-shelf alternatives but offer better energy efficiency and allow a reduction in the use of other components, according to a Daikin executive.
"To bring out the full performance of an air conditioner's compressor and motor, we need to improve chip performance or we will hit a limit," Yuji Yoneda, general manger of Daikin's technology and innovation centre, said in an interview.
Daikin plans to start introducing the chips in high-end air conditioners from 2025 and is looking at using them in about a fifth of units by the end of the decade.
The company, which developed Japan's first packaged air conditioner in 1951, is also working on customised power modules, which help manage the air conditioner's electricity supply.
Daikin has been hiring engineers from the chip industry to work on customisation while grappling with competition due to a stream of investment in the domestic semiconductor industry.
Daikin hopes an increased focus on energy efficiency will be a tailwind for the company. The number of air conditioners globally is expected to more than triple to 5.6 billion units by 2050, according to the International Energy Agency.
(Reporting by Sam Nussey; Editing by Jamie Freed)
(([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. | As tech heavyweights such as Apple AAPL.O and Amazon AMZN.O spend heavily on custom cutting-edge chips, companies using legacy chips are also looking to introduce custom silicon. By Sam Nussey and Miho Uranaka TOKYO, Dec 1 (Reuters) - Japanese air conditioner maker Daikin Industries 6367.T is turning to custom-made semiconductors to eke out energy savings, as companies increasingly look to bespoke chip designs to enhance performance. The custom chips, to be made by Taiwan's TSMC 2330.TW, cost more than off-the-shelf alternatives but offer better energy efficiency and allow a reduction in the use of other components, according to a Daikin executive. | As tech heavyweights such as Apple AAPL.O and Amazon AMZN.O spend heavily on custom cutting-edge chips, companies using legacy chips are also looking to introduce custom silicon. By Sam Nussey and Miho Uranaka TOKYO, Dec 1 (Reuters) - Japanese air conditioner maker Daikin Industries 6367.T is turning to custom-made semiconductors to eke out energy savings, as companies increasingly look to bespoke chip designs to enhance performance. Osaka-headquartered Daikin, which expects to make 10 million home air conditioners in the current financial year, said it is partnering with a Japanese design company to customise logic chips for inverters used in its air conditioners. | As tech heavyweights such as Apple AAPL.O and Amazon AMZN.O spend heavily on custom cutting-edge chips, companies using legacy chips are also looking to introduce custom silicon. By Sam Nussey and Miho Uranaka TOKYO, Dec 1 (Reuters) - Japanese air conditioner maker Daikin Industries 6367.T is turning to custom-made semiconductors to eke out energy savings, as companies increasingly look to bespoke chip designs to enhance performance. Osaka-headquartered Daikin, which expects to make 10 million home air conditioners in the current financial year, said it is partnering with a Japanese design company to customise logic chips for inverters used in its air conditioners. | As tech heavyweights such as Apple AAPL.O and Amazon AMZN.O spend heavily on custom cutting-edge chips, companies using legacy chips are also looking to introduce custom silicon. By Sam Nussey and Miho Uranaka TOKYO, Dec 1 (Reuters) - Japanese air conditioner maker Daikin Industries 6367.T is turning to custom-made semiconductors to eke out energy savings, as companies increasingly look to bespoke chip designs to enhance performance. Osaka-headquartered Daikin, which expects to make 10 million home air conditioners in the current financial year, said it is partnering with a Japanese design company to customise logic chips for inverters used in its air conditioners. |
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