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12043.0 | 2023-12-16 04:00:00 UTC | Apple To Halt Sale Of Watch Series 9 And Ultra 2 | AAPL | https://www.nasdaq.com/articles/apple-to-halt-sale-of-watch-series-9-and-ultra-2 | (RTTNews) - Tech giant Apple Inc. (AAPL) has announced that it will halt sales of its flagship Apple Watch models in the United States.
According to 9to5Mac, the Apple Watch Series 9 and Apple Watch Ultra 2 will no longer be available to purchase from Apple starting later this week.
The Apple Watch Ultra 2 and Apple Watch Series 9 will no longer be available to order from Apple's website in the U.S. after 3 p.m. ET on Thursday, December 21. In-store inventory will no longer be available from Apple retail locations after December 24.
The decision is based on an ITC ruling related to a patent dispute between Apple and medical technology company Masimo around the Apple Watch's blood oxygen sensor technology.
The International Trade Commission announced its ruling in October, upholding a judge's decision from January. This sent the case to the Biden administration for a 60-day Presidential Review Period.
During this process, President Biden could veto the ruling, although this has not yet occurred. The Presidential Review Period expires on December 25, and Apple is making this announcement today to "preemptively" take steps to comply with the ITC's decision.
In a statement, Masimo said the ban "demonstrates that even the world's most powerful company must abide by the law."
"The ITC found that Apple stole Masimo's patented pulse oximetry technology, which measures blood oxygen," the company said. "The ITC undertook a thorough legal process and its expert judgment in this matter should be respected, protecting intellectual property rights and maintaining public trust in the United States' patent system."
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Tech giant Apple Inc. (AAPL) has announced that it will halt sales of its flagship Apple Watch models in the United States. The Presidential Review Period expires on December 25, and Apple is making this announcement today to "preemptively" take steps to comply with the ITC's decision. "The ITC found that Apple stole Masimo's patented pulse oximetry technology, which measures blood oxygen," the company said. | (RTTNews) - Tech giant Apple Inc. (AAPL) has announced that it will halt sales of its flagship Apple Watch models in the United States. According to 9to5Mac, the Apple Watch Series 9 and Apple Watch Ultra 2 will no longer be available to purchase from Apple starting later this week. The Apple Watch Ultra 2 and Apple Watch Series 9 will no longer be available to order from Apple's website in the U.S. after 3 p.m. | (RTTNews) - Tech giant Apple Inc. (AAPL) has announced that it will halt sales of its flagship Apple Watch models in the United States. According to 9to5Mac, the Apple Watch Series 9 and Apple Watch Ultra 2 will no longer be available to purchase from Apple starting later this week. The Apple Watch Ultra 2 and Apple Watch Series 9 will no longer be available to order from Apple's website in the U.S. after 3 p.m. | (RTTNews) - Tech giant Apple Inc. (AAPL) has announced that it will halt sales of its flagship Apple Watch models in the United States. According to 9to5Mac, the Apple Watch Series 9 and Apple Watch Ultra 2 will no longer be available to purchase from Apple starting later this week. The Apple Watch Ultra 2 and Apple Watch Series 9 will no longer be available to order from Apple's website in the U.S. after 3 p.m. |
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12068.0 | 2023-12-15 00:00:00 UTC | Guru Fundamental Report for AAPL | AAPL | https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-28 | 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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12078.0 | 2023-12-14 00:00:00 UTC | Want to Be in the AI Millionaires Club? 3 Top Stocks You Need to Own Now | AAPL | https://www.nasdaq.com/articles/want-to-be-in-the-ai-millionaires-club-3-top-stocks-you-need-to-own-now | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Artificial intelligence (AI) has been the dominant trade in 2023, with no shortage of AI stocks to buy. Just about any stock linked to AI has risen over the last 12 months, from heavyweights such as Microsoft (NASDAQ:MSFT) to smaller start-ups such as C3.ai (NYSE:AI). While some analysts say AI is played out and fully priced into the market, don’t believe it.
As technology that is in its infancy and likely to continue dominating society for the foreseeable future, AI can be expected to be a stock market driver for many years. Most companies are only now beginning to monetize the technology. And Fortune Business Insights expects theglobal marketfor AI to quadruple to $2 trillion by 2030. Want to be in the AI millionaires club? Here are three top stocks you need to own now.
Adobe (ADBE)
Source: Tattoboo / Shutterstock
Admittedly, its guidance for the coming year wasn’t great, but software giant Adobe (NASDAQ:ADBE) remains a great bet on the future of AI. Investors can now buy ADBE stock a little cheaper, with the share price down 6% after the company issued a weak outlook for 2024. Lost in the concern over the guidance was that Adobe’s fiscal fourth quarter earnings beat Wall Street forecasts, with the company reporting earnings per share (EPS) of $4.27 compared to the $4.14 that was anticipated.
Revenue in the latest quarter totaled $5.05 billion versus $5.03 billion that analysts estimated. The company’s revenue grew 12% from a year ago while its net income increased 26% to $1.48 billion, or $3.23 per share. During the quarter, Adobe increased the costs of some of its software subscriptions, notably those that now include AI. In the most recent quarter, Adobe’s Firefly generative AI feature became available in the company’s Photoshop and Illustrator programs, and it is now monetizing AI.
ADBE stock has increased 74% in 2023.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
For a less obvious AI play, consider consumer electronics giant Apple (NASDAQ:AAPL). In early 2024, the company will release its Vision Pro mixed reality headset, Apple’s first entirely new product since the launch of the Apple Watch in 2014. There’s speculation that the Vision Pro headset could be Apple’s push into video games and that the company is eyeing AI-based gaming as a future endeavor. Apple CEO Tim Cook has said that the company is investing in AI and already makes its own microchips for its iPhones and MacBook computers.
While we wait for Apple to clarify its intentions for AI, it’s important to note that the stock is on a tear, recently closing at an all-time high on a split-adjusted basis. Apple’s share price has now risen 59% in 2023, putting the company’s market capitalization at $3.08 trillion, the biggest of any publicly traded company. Over the past year, Apple’s market value has grown by nearly $1 trillion. Analysts see continued catalysts for AAPL stock from renewed growth in its iPhone sales and the continued expansion of its services arm, which includes its streaming platform. Plus, new AI products.
Advanced Micro Devices (AMD)
Source: Pamela Marciano / Shutterstock.com
Now for more or a slam dunk when it comes to AI. That would be chipmaker Advanced Micro Devices (NASDAQ:AMD). The company’s share price has gained 20% since the start of December when the company introduced a new series of microchips called the “Ryzen 8040,” aimed at boosting AI applications by up to 60%. The new chips will be incorporated into laptops and personal computers (PCs) made by companies such as Dell Technologies (NYSE:DELL) starting in early 2024.
AMD also announced that its new MI300X accelerator microchip is now available for sale. That chip is used in data centers and directly competes with Nvidia’s (NASDAQ:NVDA) AI data center chips. While investors and analysts love the new AI chips, they are also responding to AMD executives who recently said that they expect the AI data center chip to generate $2 billion of revenue for all of 2024. AMD stock is up 120% in 2023 with continued momentum behind it.
On the date of publication, Joel Baglole held long positions in MSFT, AAPL and NVDA. 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. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com For a less obvious AI play, consider consumer electronics giant Apple (NASDAQ:AAPL). Analysts see continued catalysts for AAPL stock from renewed growth in its iPhone sales and the continued expansion of its services arm, which includes its streaming platform. On the date of publication, Joel Baglole held long positions in MSFT, AAPL and NVDA. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com For a less obvious AI play, consider consumer electronics giant Apple (NASDAQ:AAPL). Analysts see continued catalysts for AAPL stock from renewed growth in its iPhone sales and the continued expansion of its services arm, which includes its streaming platform. On the date of publication, Joel Baglole held long positions in MSFT, AAPL and NVDA. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com For a less obvious AI play, consider consumer electronics giant Apple (NASDAQ:AAPL). Analysts see continued catalysts for AAPL stock from renewed growth in its iPhone sales and the continued expansion of its services arm, which includes its streaming platform. On the date of publication, Joel Baglole held long positions in MSFT, AAPL and NVDA. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com For a less obvious AI play, consider consumer electronics giant Apple (NASDAQ:AAPL). Analysts see continued catalysts for AAPL stock from renewed growth in its iPhone sales and the continued expansion of its services arm, which includes its streaming platform. On the date of publication, Joel Baglole held long positions in MSFT, AAPL and NVDA. |
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12097.0 | 2023-12-13 00:00:00 UTC | US STOCKS-Wall St subdued, day after rally on Fed statement | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-st-subdued-day-after-rally-on-fed-statement | By Caroline Valetkevitch
NEW YORK, Dec 14 (Reuters) - The S&P 500 edged higher and the Nasdaq fell Thursday afternoon as investors took a breather a day after a sharp rally on signals from the Federal Reserve that borrowing costs would drop next year.
Apple AAPL.O shares were down 0.2% after hitting a record high in the session.
Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement. They were last down at 3.94%.
"The market by any measure and any metric is overbought and has been overbought, and a consolidation or a pause has been expected, especially after yesterday's surge," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
"While the market celebrates lower rates, it can question why yields are below 4%" as investors weigh the economic outlook, she added.
The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming "into view."
The Dow Jones Industrial Average .DJI rose 86.67 points, or 0.23%, to 37,176.91, the S&P 500 .SPX gained 5.34 points, or 0.11%, at 4,712.43 and the Nasdaq Composite .IXIC dropped 7.85 points, or 0.05%, to 14,726.12.
Among other decliners, AdobeADBE.O shed 7.1% after the Photoshop maker forecast annual and quarterly revenue below estimates.
U.S. retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the Commerce Department reported on Thursday.
Advancing issues outnumbered decliners on the NYSE by a 3.98-to-1 ratio; on Nasdaq, a 2.30-to-1 ratio favored advancers.
The S&P 500 posted 94 new 52-week highs and no new lows; the Nasdaq Composite recorded 246 new highs and 55 new lows.
Fed rate cut expectations https://tmsnrt.rs/41oElWr
(Additional reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai and Richard Chang)
(([email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple AAPL.O shares were down 0.2% after hitting a record high in the session. By Caroline Valetkevitch NEW YORK, Dec 14 (Reuters) - The S&P 500 edged higher and the Nasdaq fell Thursday afternoon as investors took a breather a day after a sharp rally on signals from the Federal Reserve that borrowing costs would drop next year. Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement. | Apple AAPL.O shares were down 0.2% after hitting a record high in the session. The Dow Jones Industrial Average .DJI rose 86.67 points, or 0.23%, to 37,176.91, the S&P 500 .SPX gained 5.34 points, or 0.11%, at 4,712.43 and the Nasdaq Composite .IXIC dropped 7.85 points, or 0.05%, to 14,726.12. The S&P 500 posted 94 new 52-week highs and no new lows; the Nasdaq Composite recorded 246 new highs and 55 new lows. | Apple AAPL.O shares were down 0.2% after hitting a record high in the session. By Caroline Valetkevitch NEW YORK, Dec 14 (Reuters) - The S&P 500 edged higher and the Nasdaq fell Thursday afternoon as investors took a breather a day after a sharp rally on signals from the Federal Reserve that borrowing costs would drop next year. The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming "into view." | Apple AAPL.O shares were down 0.2% after hitting a record high in the session. By Caroline Valetkevitch NEW YORK, Dec 14 (Reuters) - The S&P 500 edged higher and the Nasdaq fell Thursday afternoon as investors took a breather a day after a sharp rally on signals from the Federal Reserve that borrowing costs would drop next year. Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement. |
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12136.0 | 2023-12-12 00:00:00 UTC | Should You Invest in the iShares Expanded Tech Sector ETF (IGM)? | AAPL | https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-expanded-tech-sector-etf-igm-10 | The iShares Expanded Tech Sector ETF (IGM) was launched on 03/13/2001, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $3.62 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. IGM seeks to match the performance of the S&P North American Technology Sector Index before fees and expenses.
The S&P North American Expanded Technology Sector Index comprises of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.41%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.38%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 80.50% of the portfolio, followed by Telecom.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
The top 10 holdings account for about 52.57% of total assets under management.
Performance and Risk
The ETF has added about 54.16% so far this year and is up roughly 47.67% in the last one year (as of 12/12/2023). In that past 52-week period, it has traded between $272.77 and $430.71.
The ETF has a beta of 1.16 and standard deviation of 26.11% for the trailing three-year period, making it a medium risk choice in the space. With about 285 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Expanded Tech Sector ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IGM is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $56.83 billion in assets, Vanguard Information Technology ETF has $57.19 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Apple Inc. (AAPL) : Free Stock Analysis Report
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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 8.65% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $3.62 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. | Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). The S&P North American Expanded Technology Sector Index comprises of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors. | Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. The iShares Expanded Tech Sector ETF (IGM) was launched on 03/13/2001, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market. |
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12149.0 | 2023-12-11 00:00:00 UTC | Can Shiba Inu Reach $0.01? | AAPL | https://www.nasdaq.com/articles/can-shiba-inu-reach-%240.01-4 | Even though Shiba Inu (CRYPTO: SHIB) has likely been one of the most volatile cryptocurrencies out there, it has still been a big winner for those daring speculators who put their money behind it. Although the token is 89% below its peak price, it has crushed the stock market since its launch back in 2020.
Some fervent Shiba Inu bulls probably have their sights set on a much higher price target, though.
Can this dog-inspired cryptocurrency one day reach $0.01? This would translate to a monster gain of more than 1,000-fold from today's price. Let's dive in and find out if this is a possibility.
Overview of Shiba Inu
Shiba Inu was created to be more functional than its dog-themed rival, Dogecoin, which is its own blockchain. Shiba Inu, by contrast, was built on top of the Ethereum network. Because of this design decision, Shiba Inu works with smart contracts and decentralized applications.
People can use Shiba Inu's token to send or receive payments to others. And perhaps more meaningful, the token can be used to pay for things at select merchants. But according to cryptwerk.com, only 792 businesses accept payment with Shiba Inu, so it has barely made any headway in this area.
Developers recently launched Shibarium, which is a Layer-2 scaling solution that is meant to improve transaction speeds and lower fees for users. There has been heightened excitement around this update. And it could propel Shiba Inu's adoption in terms of non-fungible tokens or the metaverse. At least that's the hope of the network's supporters.
Despite the aims to raise the utility of Shiba Inu, it's worth mentioning that this token has really only been used as a tool for financial speculation. This is the case with all cryptocurrencies out there, including Bitcoin and Ethereum.
Missing the rally
It's disheartening for Shiba Inu believers to see that the token hasn't performed that well in 2023, rising just 20% (as of Dec. 12). The overall crypto market, on the other hand, has been a huge winner, going from $800 billion at the start of the year to almost $1.6 trillion today.
Moreover, both Bitcoin and Ethereum, as well as some of the largest tech stocks, have had wonderful runs this year.
Amid a resurgence in investor optimism and a risk-seeking attitude, it makes you wonder why Shiba Inu hasn't participated more in the stock and crypto rallies in 2023. If the token can't rise in this environment, what will it take for Shiba Inu to grow?
Avoid this token
Now that readers have a better understanding of Shiba Inu and its recent price performance, it's time to think critically about the possibility of the token soaring more than 1,000-fold and reaching $0.01.
To be clear, I don't think this is a possibility. And I wouldn't bet any money on this outcome happening.
Based on Shiba Inu's current token supply of 589 trillion, at a price of $0.01 per token, the total market cap would be roughly $5.9 trillion. It's wild to believe that a token with virtually no real-world utility can command this type of valuation.
Based on that gargantuan figure, Shiba Inu would be worth more than Apple, maybe the most successful business of all time based on its market valuation of about $3 trillion. This tech giant is a cultural icon with a powerful brand that sells incredibly popular hardware and software products. There's no rational way to believe that Shiba Inu is worth double that of an enterprise like this.
It's best not to get sucked into the hype and the allure of financial speculation. Investors should avoid this crypto like the plague.
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Neil Patel and his clients have positions in Bitcoin. The Motley Fool has positions in and recommends Apple, Bitcoin, and Ethereum. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Even though Shiba Inu (CRYPTO: SHIB) has likely been one of the most volatile cryptocurrencies out there, it has still been a big winner for those daring speculators who put their money behind it. Developers recently launched Shibarium, which is a Layer-2 scaling solution that is meant to improve transaction speeds and lower fees for users. Amid a resurgence in investor optimism and a risk-seeking attitude, it makes you wonder why Shiba Inu hasn't participated more in the stock and crypto rallies in 2023. | Overview of Shiba Inu Shiba Inu was created to be more functional than its dog-themed rival, Dogecoin, which is its own blockchain. Avoid this token Now that readers have a better understanding of Shiba Inu and its recent price performance, it's time to think critically about the possibility of the token soaring more than 1,000-fold and reaching $0.01. Based on Shiba Inu's current token supply of 589 trillion, at a price of $0.01 per token, the total market cap would be roughly $5.9 trillion. | Overview of Shiba Inu Shiba Inu was created to be more functional than its dog-themed rival, Dogecoin, which is its own blockchain. Avoid this token Now that readers have a better understanding of Shiba Inu and its recent price performance, it's time to think critically about the possibility of the token soaring more than 1,000-fold and reaching $0.01. Based on Shiba Inu's current token supply of 589 trillion, at a price of $0.01 per token, the total market cap would be roughly $5.9 trillion. | Despite the aims to raise the utility of Shiba Inu, it's worth mentioning that this token has really only been used as a tool for financial speculation. Avoid this token Now that readers have a better understanding of Shiba Inu and its recent price performance, it's time to think critically about the possibility of the token soaring more than 1,000-fold and reaching $0.01. To be clear, I don't think this is a possibility. |
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12179.0 | 2023-12-10 00:00:00 UTC | Conspiracy theorist Alex Jones reinstated on X after Musk poll | AAPL | https://www.nasdaq.com/articles/conspiracy-theorist-alex-jones-reinstated-on-x-after-musk-poll | By Mrinmay Dey and Jyoti Narayan
Dec 10 (Reuters) - Social media platform X, formerly known as Twitter,on Sunday showed the account of U.S. right-wing conspiracy theorist Alex Jones to have been reinstated as a poll organized by owner Elon Musk backed his return after a ban of nearly five years.
Close to 2 million votes were cast by the time the poll closed, with about 70% voting in favor of Jones' reinstatement.
"The people have spoken and so it shall be," Musk wrote in the reply to the poll that ended on Sunday.
Soon after reappearing on the platform, Jones' account began accumulating followers and currently has about 1 million. He has yet to post anything original, but has reposted two messages.
Jones' account with username "@RealAlexJones" now shows his last original post was on Sept. 6, 2018, the same day the social media platform's previous owners permanently banned his account and website Infowars, saying they had violated its behavior policies.
The ban came weeks after Apple AAPL.O, Alphabet's GOOGL.O YouTube and Facebook META.O took down podcasts and channels from Jones, citing community standards.
Reuters could not verify if X reinstated the Infowars account.
X and Infowars did not respond to a request asking for confirmation on Jones' account. Jones could not be immediately reached.
Right after Musk's takeover of Twitter, the social media platform implemented several modification, including changing its name and revisiting its policies. It also reinstated previously suspended accounts including that of former U.S. President Donald Trump.
The billionaire has since sought to reassure users and advertisers that such a decision would be made with the consideration of a content moderation council composed of people with "widely diverse viewpoints" and no account reinstatements would happen before the council convened.
Separately, Musk in November cursed out advertisers that have fled X over antisemitic content.
Several companies including Comcast CMCSA.O and Walt Disney DIS.N paused their advertisements on X after Musk agreed with a post that falsely claimed that Jewish people were stoking hatred against white people.
(Reporting by Jyoti Narayan and Mrinmay Dey in Bengaluru; Editing by Miral Fahmy, David Goodman, Louise Heavens and Mark Porter)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The ban came weeks after Apple AAPL.O, Alphabet's GOOGL.O YouTube and Facebook META.O took down podcasts and channels from Jones, citing community standards. By Mrinmay Dey and Jyoti Narayan Dec 10 (Reuters) - Social media platform X, formerly known as Twitter,on Sunday showed the account of U.S. right-wing conspiracy theorist Alex Jones to have been reinstated as a poll organized by owner Elon Musk backed his return after a ban of nearly five years. Right after Musk's takeover of Twitter, the social media platform implemented several modification, including changing its name and revisiting its policies. | The ban came weeks after Apple AAPL.O, Alphabet's GOOGL.O YouTube and Facebook META.O took down podcasts and channels from Jones, citing community standards. By Mrinmay Dey and Jyoti Narayan Dec 10 (Reuters) - Social media platform X, formerly known as Twitter,on Sunday showed the account of U.S. right-wing conspiracy theorist Alex Jones to have been reinstated as a poll organized by owner Elon Musk backed his return after a ban of nearly five years. Jones' account with username "@RealAlexJones" now shows his last original post was on Sept. 6, 2018, the same day the social media platform's previous owners permanently banned his account and website Infowars, saying they had violated its behavior policies. | The ban came weeks after Apple AAPL.O, Alphabet's GOOGL.O YouTube and Facebook META.O took down podcasts and channels from Jones, citing community standards. By Mrinmay Dey and Jyoti Narayan Dec 10 (Reuters) - Social media platform X, formerly known as Twitter,on Sunday showed the account of U.S. right-wing conspiracy theorist Alex Jones to have been reinstated as a poll organized by owner Elon Musk backed his return after a ban of nearly five years. Jones' account with username "@RealAlexJones" now shows his last original post was on Sept. 6, 2018, the same day the social media platform's previous owners permanently banned his account and website Infowars, saying they had violated its behavior policies. | The ban came weeks after Apple AAPL.O, Alphabet's GOOGL.O YouTube and Facebook META.O took down podcasts and channels from Jones, citing community standards. By Mrinmay Dey and Jyoti Narayan Dec 10 (Reuters) - Social media platform X, formerly known as Twitter,on Sunday showed the account of U.S. right-wing conspiracy theorist Alex Jones to have been reinstated as a poll organized by owner Elon Musk backed his return after a ban of nearly five years. Jones' account with username "@RealAlexJones" now shows his last original post was on Sept. 6, 2018, the same day the social media platform's previous owners permanently banned his account and website Infowars, saying they had violated its behavior policies. |
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12185.0 | 2023-12-09 00:00:00 UTC | This Is the Most Important AI Company You've Never Heard Of | AAPL | https://www.nasdaq.com/articles/this-is-the-most-important-ai-company-youve-never-heard-of | Artificial intelligence (AI) is the talk of the market, and a handful of stocks, like Nvidia (NASDAQ: NVDA) and Microsoft (NASDAQ: MSFT), have jumped on the year's AI developments. But there's one company that's more critical to AI than you might think.
In this video, Travis Hoium covers Taiwan Semiconductor's (NYSE: TSM) role in the industry and shows why it's one of the safer ways to play AI development today.
*Stock prices used were end-of-day prices of Dec. 6, 2023. The video was published on Dec. 8, 2023.
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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. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Apple. The Motley Fool has positions in and recommends 10x Genomics, Amazon, Apple, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. Travis Hoium 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 this video, Travis Hoium covers Taiwan Semiconductor's (NYSE: TSM) role in the industry and shows why it's one of the safer ways to play AI development today. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends 10x Genomics, Amazon, Apple, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. | Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Taiwan Semiconductor Manufacturing wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends 10x Genomics, Amazon, Apple, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. | Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Taiwan Semiconductor Manufacturing wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends 10x Genomics, Amazon, Apple, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. | In this video, Travis Hoium covers Taiwan Semiconductor's (NYSE: TSM) role in the industry and shows why it's one of the safer ways to play AI development today. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. The Motley Fool has positions in and recommends 10x Genomics, Amazon, Apple, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. |
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12188.0 | 2023-12-08 00:00:00 UTC | Apple (AAPL) Rises Higher Than Market: Key Facts | AAPL | https://www.nasdaq.com/articles/apple-aapl-rises-higher-than-market%3A-key-facts-0 | Apple (AAPL) closed the latest trading day at $195.71, indicating a +0.74% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.41% for the day. Meanwhile, the Dow experienced a rise of 0.36%, and the technology-dominated Nasdaq saw an increase of 0.45%.
Shares of the maker of iPhones, iPads and other products have appreciated by 6.5% over the course of the past month, outperforming the Computer and Technology sector's gain of 5.9% and the S&P 500's gain of 4.91%.
Market participants will be closely following the financial results of Apple in its upcoming release. It is anticipated that the company will report an EPS of $2.08, marking a 10.64% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $117.31 billion, indicating a 0.13% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.56 per share and revenue of $393.42 billion, which would represent changes of +7.01% and +2.65%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Apple. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.22% upward. Apple currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Apple is presently being traded at a Forward P/E ratio of 29.6. This indicates a premium in contrast to its industry's Forward P/E of 11.72.
Also, we should mention that AAPL has a PEG ratio of 2.68. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Mini computers industry had an average PEG ratio of 2.68 as trading concluded yesterday.
The Computer - Mini computers industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) closed the latest trading day at $195.71, indicating a +0.74% change from the previous session's end. Also, we should mention that AAPL has a PEG ratio of 2.68. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. | Apple (AAPL) closed the latest trading day at $195.71, indicating a +0.74% change from the previous session's end. Also, we should mention that AAPL has a PEG ratio of 2.68. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. | Apple (AAPL) closed the latest trading day at $195.71, indicating a +0.74% change from the previous session's end. Also, we should mention that AAPL has a PEG ratio of 2.68. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. | Apple (AAPL) closed the latest trading day at $195.71, indicating a +0.74% change from the previous session's end. Also, we should mention that AAPL has a PEG ratio of 2.68. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. |
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12210.0 | 2023-12-07 00:00:00 UTC | Guru Fundamental Report for AAPL | AAPL | https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-25 | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
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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12220.0 | 2023-12-06 00:00:00 UTC | 3 Stocks to Watch From the Prospering Computer Industry | AAPL | https://www.nasdaq.com/articles/3-stocks-to-watch-from-the-prospering-computer-industry | The Zacks Computer – Mini Computers industry is benefiting from steady demand for enterprise devices, including laptops, tablets and smartphones. Industry participants like Apple AAPL, HP HPQ and 3D Systems DDD are benefiting from these trends. The improving availability of 5G-enabled smartphones has been a key catalyst for the industry participants. The launch of foldable, and AI and ML-infused smartphones, tablets, wearables and hearables is another major growth driver for the industry participants. Robust demand for production printers, materials and software bodes well for 3-D printing solution providers. However, waning demand for consumer PCs and geopolitical challenges, including raging inflation and high interest, are major headwinds.
Industry Description
The Zacks Computer – Mini Computers industry comprises companies that offer smartphones, desktops, laptops, printers, wearables and 3-D printers. Such devices are based either on iOS, MacOS, iPadOS, WatchOS, Microsoft Windows, or Google Chrome and Android operating systems. The companies predominantly use processors from Apple, Intel, AMD, Qualcomm, NVIDIA and Samsung. Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones. This has been well-supported by faster mobile processors. Laptops, both consumer and commercial, benefit from faster processors, sleek designs and expanded storage facilities. The addition of healthcare features has been driving the demand for wearables.
3 Mini Computer Industry Trends to Watch
Enterprise Adoption Remains Healthy: Strong enterprise demand has been benefiting the industry participants. The growing adoption of a hybrid working environment bodes well for the players, as demand for laptops and tablets is expected to increase. Demand for smart devices that offer facial recognition, retina scans or finger impressions to verify the user for biometrics is gaining traction as enterprises enhance security.
Impressive Form Factor Drives Demand: Expanding screen size, better display and enhanced storage capabilities have been the key catalysts driving the rapid proliferation of smartphones and tablets. This has been well-supported by faster mobile processors from the likes of Qualcomm, NVIDIA, Apple and Samsung. Improved Internet penetration and speed, along with the evolution of mobile apps, have made smartphones indispensable for consumers. Improved graphics quality is making smartphones suitable for playing sophisticated games. This is driving the demand for high-end smartphones and opening up significant opportunities for device makers.
PCs Face Extinction Risk: Personal computers (desktops and laptops), be it Windows or Apple’s MacOS-based ones, have been facing the risk of extinction due to the rapid proliferation of smartphones and tablets. Stiff competition from smartphones has compelled global PC makers to not only upgrade hardware frequently but also add apps and cloud-based services to attract consumers. Nevertheless, the emergence of 5G, AI, machine learning and foldable computers is likely to be the key catalysts in expanding the total addressable market of PCs.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Computer – Mini Computers industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #37, which places it in the top 15% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential. Since Oct 31, 2023, the Zacks Consensus Estimate for this industry’s 2024 earnings has moved up 0.3%.
Given the bullish outlook, there are a few stocks worth watching in the sector. But before we present those stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Lags Sector Beats S&P 500
The Zacks Computer – Mini Computers industry has underperformed the broader Zacks Computer and Technology sector but beat the S&P 500 index over the past year.
The industry has gained 33.9% over this period compared with the S&P 500’s return of 16.4% and the broader sector’s rise of 37.8%.
One-Year Price Performance
Industry's Current Valuation
On the basis of forward 12-month P/E, which is a commonly used multiple for valuing computer stocks, we see that the industry is currently trading at 27.81X compared with the S&P 500’s 19.17X and the sector’s 24.04X.
Over the last five years, the industry has traded as high as 32.32X and as low as 11.49X, with the median being 24.43X, as the chart below shows.
Forward 12-Month Price-to-Earnings (P/E) Ratio
3 Computer Stocks to Watch Right Now
3D Systems: This Zacks Rank #1 (Strong Buy) company expects the dental market to stabilize amid the high inventory level in the supply chain and weakness in consumer discretionary spending. You can see the complete list of today’s Zacks #1 Rank stocks here.
3D System expects a slower recovery in 2024 than its earlier expectation. Dental sales are expected to benefit from the continuing migration of orthodontic solutions from metal brackets and wires to clear aligners in the long run. Improved asset management and resource utilization are anticipated to reduce its total inventory significantly in 2024.
The Zacks Consensus Estimate for 2023 loss has narrowed by 7 cents to 13 cents per share over the past 30 days. The stock has declined 38.5% in the year-to-date period.
Price and Consensus: DDD
Apple: This Zacks Rank #3 (Hold) company is benefiting from a steady demand for iPhone devices, as well as an expanding footprint in emerging markets. A growing subscriber base and improving customer engagement are tailwinds for the services business.
Apple currently has more than 1 billion paid subscribers across its Services portfolio. The App Store continues to draw the attention of prominent developers worldwide, helping it offer appealing new apps that drive the App Store’s traffic. A growing number of AI-infused apps will attract subscribers to the App Store.
The Zacks Consensus Estimate for fiscal 2024 earnings has increased by a penny to $6.56 per share over the past 30 days. The stock has gained 37.2% in the year-to-date period.
Price and Consensus: AAPL
HP: This Zacks Rank #3 company’s sustained focus on launching the latest and innovative products is likely to help it stay afloat in the current uncertain macroeconomic environment.
Product innovation and differentiations are the key drivers that have helped HPQ maintain its leading position in the PC and printer markets.
The Zacks Consensus Estimate for fiscal 2023 earnings has decreased 1.2% to $3.43 per share over the past 30 days. HP shares have gained 3.7% year to date.
Price and Consensus: HPQ
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
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Apple Inc. (AAPL) : Free Stock Analysis Report
HP Inc. (HPQ) : Free Stock Analysis Report
3D Systems Corporation (DDD) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Price and Consensus: AAPL HP: This Zacks Rank #3 company’s sustained focus on launching the latest and innovative products is likely to help it stay afloat in the current uncertain macroeconomic environment. Industry participants like Apple AAPL, HP HPQ and 3D Systems DDD are benefiting from these trends. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report 3D Systems Corporation (DDD) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report 3D Systems Corporation (DDD) : Free Stock Analysis Report To read this article on Zacks.com click here. Industry participants like Apple AAPL, HP HPQ and 3D Systems DDD are benefiting from these trends. Price and Consensus: AAPL HP: This Zacks Rank #3 company’s sustained focus on launching the latest and innovative products is likely to help it stay afloat in the current uncertain macroeconomic environment. | Industry participants like Apple AAPL, HP HPQ and 3D Systems DDD are benefiting from these trends. Price and Consensus: AAPL HP: This Zacks Rank #3 company’s sustained focus on launching the latest and innovative products is likely to help it stay afloat in the current uncertain macroeconomic environment. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report 3D Systems Corporation (DDD) : Free Stock Analysis Report To read this article on Zacks.com click here. | Industry participants like Apple AAPL, HP HPQ and 3D Systems DDD are benefiting from these trends. Price and Consensus: AAPL HP: This Zacks Rank #3 company’s sustained focus on launching the latest and innovative products is likely to help it stay afloat in the current uncertain macroeconomic environment. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report 3D Systems Corporation (DDD) : Free Stock Analysis Report To read this article on Zacks.com click here. |
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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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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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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
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Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. |
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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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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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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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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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12346.0 | 2023-11-29 00:00:00 UTC | ANALYSIS-After Munger's death, Berkshire succession comes into focus | AAPL | https://www.nasdaq.com/articles/analysis-after-mungers-death-berkshire-succession-comes-into-focus-0 | By Jonathan Stempel
Nov 29 (Reuters) - The death of Berkshire Hathaway's BRKa.NCharlie Munger heralds the end of an era, leaving Warren Buffett as the conglomerate's lone investing legend and shining the spotlight on managers who have largely operated in their shadow.
Few companies have been so closely associated with their leaders as Berkshire has with Buffett and Munger, who knew each other for more than six decades, the last 45 years as the Omaha, Nebraska-based conglomerate's chairman and vice chairman.
Munger's death on Tuesday, five weeks shy of his 100th birthday, leaves Berkshire Vice Chairmen Greg Abel and Ajit Jain, who respectively oversee its non-insurance and insurance businesses, as the 93-year-old Buffett's top advisers and sounding boards.
They became vice chairmen in 2018, started taking a more prominent public role only at the most recent of Berkshire's annual meetings, and will have bigger boots to fill than at almost any other company.
Managers have said Abel fully embraces Berkshire's culture, which includes an extreme decentralization that gives business units broad autonomy.
That means big units such as the BNSF railroad and Geico car insurer, each with tens of thousands of employees, and small units such as Borsheims jewelry, with about 142 employees, can run without interference from Berkshire headquarters, which employs only about 26 people.
But Abel and Jain have different styles from Buffett and Munger.
At the 2021 annual meeting, Jain was asked how he and Abel interact with each other.
"There is no question that the relationship Warren has with Charlie is unique and it's not going to be duplicated," Jain said. "We don't interact with each other as often as Warren and Charlie do. But every quarter we will talk to each other about our respective businesses."
Abel said he and Jain regularly consulted with one another, and in particular when something unusual was happening at one of Berkshire's businesses.
Investors say they have faith.
"I can’t imagine investors haven't thought about what happens when Buffett is gone as well," said Bill Stone, chief investment officer at Glenview Trust. "You don’t need them to be as good as Buffett or Munger to make Berkshire a good company and arguably a great company."
Berkshire did not immediately respond to a request for comment outside business hours.
CEO-DESIGNATE
Berkshire has had a succession plan since at least 2006 when Buffett, then 75, told shareholders the company he has run since 1965 would be prepared for his departure.
Munger inadvertently signaled during Berkshire's 2021 annual meeting that Abel, a 61-year-old Edmonton, Alberta, native who spent a quarter century at what is now Berkshire Hathaway Energy, was the CEO designate.
Jain, 72, would retain oversight of insurance operations.
Buffett has praised both executives, calling Abel "a first-class human being" in a 2013 video message and referring to Jain as a "superstar."
A lifelong hockey fan, Abel graduated in 1984 from the University of Alberta, worked at PricewaterhouseCoopers and energy firm CalEnergy and joined the company, then known as MidAmerican Energy, in 1992, which Berkshire took over in 2000.
Abel became MidAmerican's chief in 2008 and benefited from its ability, unusual in the utility industry, to retain earnings rather than pay dividends. That freed him to make acquisitions, and expand into renewable energy.
Investors will have to wait until Abel takes over to see his willingness to shed businesses that are underperforming or have mediocre outlooks - his predecessors liked to buy and hold businesses forever - or whether Berkshire might pay its first dividend since 1967.
Jain, who was born in the Indian state of Odisha, has specialized in pricing for risk, especially large risks such as natural catastrophes. He joined Berkshire in 1986.
Besides the two top executives, Berkshire's plan also calls for Buffett's eldest son Howard Buffett to become non-executive chairman, charged mainly with preserving Berkshire's culture.
Todd Combs and Ted Weschler, who help Buffett run Berkshire's $300 billion-plus common stock portfolio - about half of which is in one stock, Apple AAPL.O - appear in line to take over all of it.
"Berkshire has talented people there that will help with the stock picking," said Bill Smead, chief investment officer at Smead Capital Management in Phoenix. "But it will never be the same."
LOSS OF LEGACY
For shareholders, a signature in Berkshire's universe is its annual meeting, a pilgrimage known as "Woodstock for Capitalists," where Buffett and Munger would answer more than five hours of shareholder questions.
It is a weekend of shopping, investor conferences and events that draws tens of thousands of people to Omaha in early May, even though fans can watch it streamed on their home computers or smartphones.
Many shareholders, especially local, have said they will continue going, but others have been less sure.
"What really glued us to these men was their advice on living a full life by instructing people how to think clearly, to be honest with oneself, to learn from mistakes and to avoid calamities," said Whitney Tilson, an investor who previously ran T2 Partners and Kase Capital and has attended many meetings.
In May 2020, at the height of the pandemic, Buffett held the meeting virtually from Omaha. Munger didn't attend.
"It particularly doesn't feel like an annual meeting because my partner of 60 years, Charlie Munger, is not sitting up here," Buffett said. "I think most of the people who come to our meeting really come to listen to Charlie."
(Reporting by Jonathan Stempel in New York; editing by Megan Davies, Paritosh Bansal and Stephen Coates)
(([email protected]; +1 646 223 6317; 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. | Todd Combs and Ted Weschler, who help Buffett run Berkshire's $300 billion-plus common stock portfolio - about half of which is in one stock, Apple AAPL.O - appear in line to take over all of it. By Jonathan Stempel Nov 29 (Reuters) - The death of Berkshire Hathaway's BRKa.NCharlie Munger heralds the end of an era, leaving Warren Buffett as the conglomerate's lone investing legend and shining the spotlight on managers who have largely operated in their shadow. Munger's death on Tuesday, five weeks shy of his 100th birthday, leaves Berkshire Vice Chairmen Greg Abel and Ajit Jain, who respectively oversee its non-insurance and insurance businesses, as the 93-year-old Buffett's top advisers and sounding boards. | Todd Combs and Ted Weschler, who help Buffett run Berkshire's $300 billion-plus common stock portfolio - about half of which is in one stock, Apple AAPL.O - appear in line to take over all of it. By Jonathan Stempel Nov 29 (Reuters) - The death of Berkshire Hathaway's BRKa.NCharlie Munger heralds the end of an era, leaving Warren Buffett as the conglomerate's lone investing legend and shining the spotlight on managers who have largely operated in their shadow. "You don’t need them to be as good as Buffett or Munger to make Berkshire a good company and arguably a great company." | Todd Combs and Ted Weschler, who help Buffett run Berkshire's $300 billion-plus common stock portfolio - about half of which is in one stock, Apple AAPL.O - appear in line to take over all of it. Munger's death on Tuesday, five weeks shy of his 100th birthday, leaves Berkshire Vice Chairmen Greg Abel and Ajit Jain, who respectively oversee its non-insurance and insurance businesses, as the 93-year-old Buffett's top advisers and sounding boards. Munger inadvertently signaled during Berkshire's 2021 annual meeting that Abel, a 61-year-old Edmonton, Alberta, native who spent a quarter century at what is now Berkshire Hathaway Energy, was the CEO designate. | Todd Combs and Ted Weschler, who help Buffett run Berkshire's $300 billion-plus common stock portfolio - about half of which is in one stock, Apple AAPL.O - appear in line to take over all of it. But Abel and Jain have different styles from Buffett and Munger. For shareholders, a signature in Berkshire's universe is its annual meeting, a pilgrimage known as "Woodstock for Capitalists," where Buffett and Munger would answer more than five hours of shareholder questions. |
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12355.0 | 2023-11-28 00:00:00 UTC | AAPL Quantitative Stock Analysis | AAPL | https://www.nasdaq.com/articles/aapl-quantitative-stock-analysis-7 | 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.
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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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12370.0 | 2023-11-27 00:00:00 UTC | 3 Music Streaming Stocks Set to Hit the Right Notes in 2024 | AAPL | https://www.nasdaq.com/articles/3-music-streaming-stocks-set-to-hit-the-right-notes-in-2024 | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
These music streaming stocks should be on your watchlist. What I like about these companies is that their valuations are fair, and many of them have great future prospects. Music streaming stocks are anticipated to rise steadily in the future along with their number of monetized users, thus making them worthy of belonging in your portfolio.
So, if you are in the market to buy the best music streaming stocks for 2024 and beyond, then keep reading. Here are three of the best companies to consider.
Spotify (SPOT)
Source: Kaspars Grinvalds / Shutterstock.com
Spotify (NYSE:SPOT) continues to be a dominant force in the global music streaming market with a vast library of songs, podcasts, and user-generated playlists, giving it a competitive edge over its peers.
The bull case for SPOT is built on a combination of operational efficiency and strategic innovation. The company has reported a significant improvement in profitability, demonstrated by better-than-expected earnings in the third quarter and an operating profit of 32 million euros, a reversal from the previous year’s loss.
New features like AI DJ and AI Voice Translation have fueled Spotify’s growth.
Looking ahead, Spotify’s positive trajectory will continue. The recent performance has reinforced investor confidence, supported by a 26% year-over-year increase in MAUs and sign that the company is on track to exceed 600 million users for the year. This then makes SPOT one of those music streaming stocks to buy.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Through its service, Apple Music, Apple (NASDAQ:AAPL) is a key competitor in the streaming industry, offering an array of music and exclusive content.
Apple Music has contributed to Apple’s significant financial milestone of surpassing 1 billion paid subscriptions across all its services and apps.
This achievement, which includes subscriptions from Apple-branded offerings like Apple Music and Apple TV+ as well as third-party app services, marks a 150 million increase year over year. In the June 2023 quarter, Apple’s services unit, which Apple Music is part of, saw an 8.2% growth, reaching a revenue of $21.21 billion.
The growth in Apple Music and other services is part of an overarching strategy that offsets softer sales in other areas, like a slight dip in iPhone sales. This then gives investors a strong reason to buy up AAPL shares if they want to buy both an excellent mobile phone and music streaming stock.
Tencent Music Entertainment Group (TME)
Source: Ralf Liebhold / Shutterstock.com
Tencent Music Entertainment Group (NYSE:TME) is a Chinese entertainment platform that has been expanding its user base significantly, showcasing a strong increase in paying users.
There’s good reason to consider adding TME stock to your portfolio. The company reported a notable increase in revenue from its online music services.
This growth has outpaced market estimates, particularly in the company’s online music platform. Furthermore, the revenue from music subscriptions alone saw a 37% year-over-year increase, reaching $399 million. Tencent Music’s advertising services supplement this growth.
Looking forward, the company is investing in artificial intelligence to optimize features and recommendation engines, and there’s an industry-wide push toward higher-resolution streaming, which could further enhance the user experience.
Tencent Music has already made significant improvements to its services, focusing on listening features, recommendation functions, and sound quality.
TME stock is therefore one of those music streaming stocks to buy.
On the date of publication, Matthew Farley did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.
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The post 3 Music Streaming Stocks Set to Hit the Right Notes in 2024 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Through its service, Apple Music, Apple (NASDAQ:AAPL) is a key competitor in the streaming industry, offering an array of music and exclusive content. This then gives investors a strong reason to buy up AAPL shares if they want to buy both an excellent mobile phone and music streaming stock. The recent performance has reinforced investor confidence, supported by a 26% year-over-year increase in MAUs and sign that the company is on track to exceed 600 million users for the year. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Through its service, Apple Music, Apple (NASDAQ:AAPL) is a key competitor in the streaming industry, offering an array of music and exclusive content. This then gives investors a strong reason to buy up AAPL shares if they want to buy both an excellent mobile phone and music streaming stock. Spotify (SPOT) Source: Kaspars Grinvalds / Shutterstock.com Spotify (NYSE:SPOT) continues to be a dominant force in the global music streaming market with a vast library of songs, podcasts, and user-generated playlists, giving it a competitive edge over its peers. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Through its service, Apple Music, Apple (NASDAQ:AAPL) is a key competitor in the streaming industry, offering an array of music and exclusive content. This then gives investors a strong reason to buy up AAPL shares if they want to buy both an excellent mobile phone and music streaming stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips These music streaming stocks should be on your watchlist. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Through its service, Apple Music, Apple (NASDAQ:AAPL) is a key competitor in the streaming industry, offering an array of music and exclusive content. This then gives investors a strong reason to buy up AAPL shares if they want to buy both an excellent mobile phone and music streaming stock. Here are three of the best companies to consider. |
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12384.0 | 2023-11-26 00:00:00 UTC | Wall St Week Ahead-Broadening of U.S. stock rally feeds investor optimism | AAPL | https://www.nasdaq.com/articles/wall-st-week-ahead-broadening-of-u.s.-stock-rally-feeds-investor-optimism-0 | By Lewis Krauskopf, David Randall and Saqib Iqbal Ahmed
NEW YORK, Nov 24 (Reuters) - Signs the U.S. stock market rally is broadening from the so-called Magnificent Seven of mega-cap growth and technology companies is bolstering investor hopes for a rally through year-end.
Equities have risen sharply, with the S&P 500 .SPX up over 8% in November, on the cusp of a new high for 2023, fueled by falling Treasury yields and cooling inflation readings that could signal the end of Federal Reserve rate hikes. Yields fall when Treasury prices rise, and the lower returns on guaranteed fixed-income investments make stocks more appealing.
In one encouraging sign, about 55% of the S&P 500 were trading above their 200-day moving averages as of Monday. That level breached 50% last week for the first time in nearly two months, according to LPL Financial.
"Breadth is finally starting to broaden out to levels more commensurate with bull markets," said Adam Turnquist, chief technical strategist at LPL Financial. "This has been one of the keys to calling this recovery sustainable."
Among other signs, the equal-weight S&P 500 .SPXEW -- a proxy for the average stock in the index -- rose 3.24% last week. That was substantially more than the 2.24% rise for the market-cap weighted S&P 500 .SPX, the biggest percentage point outperformance for the equal-weight index in nearly five months.
Even so, the S&P 500 equal-weight index has gained just 3% in 2023 against an 18% rise for the overall S&P 500 -- on pace for the biggest such annual percentage-point gap in 25 years.
Much of that underperformance is due to the outsized gain in the Magnificent Seven stocks, which collectively hold a 28% weight in the S&P 500 index: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvdia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. Overall, the group of stocks makes up nearly 50% of the weighting of the Nasdaq 100, which is up nearly 47% for the year to date.
Struggling small-cap and bank stocks have perked up, especially after last week's U.S. consumer price data for October was unchanged from the prior month.
The small-cap Russell 2000 .RUT is up 5.5% since the CPI data with the S&P 500 banks index .SPXBK up 6.5%, versus a 3% rise for the S&P 500. Year-to-date, the Russell 2000 is up 2%, while the S&P 500 banks index has fallen over 6%.
Mona Mahajan, senior investment strategist at Edward Jones, said an environment that could be conducive for a broadening of the rally "is starting to take shape."
“This environment where rates are cooling, inflation is moderating and the Fed is on the sidelines, that is typically a good backdrop for risk assets,” Mahajan said.
“Typically when rates start to move lower, you get valuation expansion and the areas that we could see some more meaningful valuation expansion is outside of large-cap tech,” she said.
The equal-weight S&P 500 is trading at a 5% discount to its 10-year average forward price-to-earnings ratio, according to Edward Jones.
Still, there are reasons to think that the market rally is not on the verge of a sustained broadening.
Investors will get further readings of consumer confidence and inflation next week. Stronger than expected data could spur a selloff in Treasuries, sending yields higher.
At the same time, the sharp rally in stocks for the week ended Nov. 17 was accompanied by high demand for upside call options, particularly in parts of the market that have underperformed this year, such as the small-caps focused iShares Russell 2000 ETF IWM.P.
Some of that has already started to unwind.
"We saw a huge pickup in expectations for IWM, but now those seem to have stabilized," said Steve Sosnick, chief strategist at Interactive Brokers.
The recent surge, which has pushed the broad S&P 500 up approximately 10% over the last three weeks, may not last as investors prepare to close their books for the year, said Jason Draho, head of asset allocation Americas at UBS Global Wealth Management.
"A lot of good news is already priced in and investors may be reluctant to chase the rally," he said.
Joining the party https://tmsnrt.rs/40S10KG
(Reporting by David Randall, Lewis Krauskopf, Saqib Iqbal Ahmed; editing by Megan Davies and David Gregorio)
(([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. | Much of that underperformance is due to the outsized gain in the Magnificent Seven stocks, which collectively hold a 28% weight in the S&P 500 index: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvdia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. Equities have risen sharply, with the S&P 500 .SPX up over 8% in November, on the cusp of a new high for 2023, fueled by falling Treasury yields and cooling inflation readings that could signal the end of Federal Reserve rate hikes. At the same time, the sharp rally in stocks for the week ended Nov. 17 was accompanied by high demand for upside call options, particularly in parts of the market that have underperformed this year, such as the small-caps focused iShares Russell 2000 ETF IWM.P. | Much of that underperformance is due to the outsized gain in the Magnificent Seven stocks, which collectively hold a 28% weight in the S&P 500 index: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvdia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. By Lewis Krauskopf, David Randall and Saqib Iqbal Ahmed NEW YORK, Nov 24 (Reuters) - Signs the U.S. stock market rally is broadening from the so-called Magnificent Seven of mega-cap growth and technology companies is bolstering investor hopes for a rally through year-end. Equities have risen sharply, with the S&P 500 .SPX up over 8% in November, on the cusp of a new high for 2023, fueled by falling Treasury yields and cooling inflation readings that could signal the end of Federal Reserve rate hikes. | Much of that underperformance is due to the outsized gain in the Magnificent Seven stocks, which collectively hold a 28% weight in the S&P 500 index: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvdia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. By Lewis Krauskopf, David Randall and Saqib Iqbal Ahmed NEW YORK, Nov 24 (Reuters) - Signs the U.S. stock market rally is broadening from the so-called Magnificent Seven of mega-cap growth and technology companies is bolstering investor hopes for a rally through year-end. Among other signs, the equal-weight S&P 500 .SPXEW -- a proxy for the average stock in the index -- rose 3.24% last week. | Much of that underperformance is due to the outsized gain in the Magnificent Seven stocks, which collectively hold a 28% weight in the S&P 500 index: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvdia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. By Lewis Krauskopf, David Randall and Saqib Iqbal Ahmed NEW YORK, Nov 24 (Reuters) - Signs the U.S. stock market rally is broadening from the so-called Magnificent Seven of mega-cap growth and technology companies is bolstering investor hopes for a rally through year-end. "Breadth is finally starting to broaden out to levels more commensurate with bull markets," said Adam Turnquist, chief technical strategist at LPL Financial. |
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12386.0 | 2023-11-25 00:00:00 UTC | Take My Money! 3 Stocks to Buy Hand Over Fist | AAPL | https://www.nasdaq.com/articles/take-my-money-3-stocks-to-buy-hand-over-fist | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Everyone’s definition of a must-buy stock is different.
I remember writing about Church & Dwight (NYSE:CHD) in 2016 when it was on one heck of a heater, as they say in sports—up 9% year to date (YTD) through April, working on its 11th consecutive year of market gains.
I suggested it was still a buy despite gaining 411% over the previous decade. It proceeded to gain another 121% over the next five years. That was a must-buy stock. It’s since cooled off, but if its Q3 2023 results indicate, it’s about to heat up again.
So, what stocks should you buy hand over fist right now? Well, that depends on your opinion of whether stocks are overvalued or not.
The Business Insider recently reported that several billionaires believe U.S. stocks are overpriced. Jeremy Grantham thinks the S&P 500 will fall by as much as 50%. However, Wharton finance professor Jeremy Siegel thinks the opposite is true, given the current earnings yield of 6%.
“Stocks are still priced for much better long-term returns and a 3% equity premium, while lower than it was for last decade, does not mean stocks are above fair value. They are now underpriced in my estimation,” CNBC reported Siegel’s comments.
Therefore, let’s explore stocks to buy with an earnings yield above 6%.
PulteGroup (PHM)
Source: rafapress / Shutterstock.com
PulteGroup (NYSE:PHM) has bounced back nicely in 2023, up nearly 90% on the year, after losing 20% of its value in 2022. However, over the past five years, it’s up a whopping 237%, not too far off Apple’s (NASDAQ:AAPL) return.
In Q2 2023, Warren Buffett took up positions in three of PHM’s competitors. Those included D.R. Horton (NYSE:DHI), Lennar (NYSE:LEN), and NVR (NYSE:NVR). He did so because of the housing shortage in this country. Increasing the housing supply is the only way housing affordability will return to the marketplace.
In fact, PulteGroup is the third-largest homebuilder in the U.S., with homes in 40 major markets. Since its founding more than 70 years ago, it’s delivered nearly 800,000 homes. As of Q3 2023, it had a backlog of 13,547 homes worth an estimated $8.13 billion.
While the backlog is smaller than in previous quarters, its net new orders continue to grow like weeds. In Q3, they were 7,065, 43% higher year over year (YOY), with an average sales price of $549,000.
PulteGroup has a rock-solid balance sheet with a net debt-to-capital ratio of less than 1%. It will likely take years for the housing supply to catch up with demand.
Devon Energy (DVN)
Source: Jeff Whyte / Shutterstock.com
Devon Energy (NYSE:DVN) stock is down 34% over the past year. As a result, its dividend yield has increased to a very high 9.3%.
Recently, Devon was included in a trio of energy stocks to buy for income, after it reported Q3 2023 earnings. On the top line, it missed analyst expectations by $190 million. However, on the bottom line, it earned $1.65 a share on an adjusted basis, 9 cents better than the consensus.
Production is up, pushing free cash flow higher. It expects to generate $3.2 billion in free cash flow in 2024. Its profit margin remains high with a $40 breakeven and prices around $76. Based on an enterprise value of $34.7 billion, it has a free cash flow yield of 9.2%.
The company remains one of the top acquisition targets of the large integrated oil and gas companies other than Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX).
United Rentals (URI)
Source: Casimiro PT / Shutterstock.com
United Rentals (NYSE:URI) owns an impressive $21 billion fleet of equipment. It rents out to businesses to get their projects completed, giving it the top market share in the U.S. at 17%. Approximately 52% of its customers are construction-related businesses. The other 48% are industrial businesses such as utilities and manufacturing.
Founded in 1997, United has steadily grown its specialty business over the past decade. In 2012, the division’s revenue was $297 million. Fast forward to 2022, it was more than 10x at $3.45 billion. With 569 specialty locations worldwide, it accounts for nearly 30% of the company’s overall revenue, up from 7.2% a decade ago.
As a result of the ongoing growth of residential and non-residential construction, United’s revenue’s compound annual growth rate (CAGR) over the past five years was 11.9%. In 2023, it’s expected to be 22.0%. And, its adjusted earnings per share have grown 25.1% annually over the past five years, more than double the S&P 500.
Further, since going public in 1997, it’s generated a cumulative return of 2,908%, a 13% CAGR.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post Take My Money! 3 Stocks to Buy Hand Over Fist 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. | However, over the past five years, it’s up a whopping 237%, not too far off Apple’s (NASDAQ:AAPL) return. However, Wharton finance professor Jeremy Siegel thinks the opposite is true, given the current earnings yield of 6%. Recently, Devon was included in a trio of energy stocks to buy for income, after it reported Q3 2023 earnings. | However, over the past five years, it’s up a whopping 237%, not too far off Apple’s (NASDAQ:AAPL) return. PulteGroup (PHM) Source: rafapress / Shutterstock.com PulteGroup (NYSE:PHM) has bounced back nicely in 2023, up nearly 90% on the year, after losing 20% of its value in 2022. Devon Energy (DVN) Source: Jeff Whyte / Shutterstock.com Devon Energy (NYSE:DVN) stock is down 34% over the past year. | However, over the past five years, it’s up a whopping 237%, not too far off Apple’s (NASDAQ:AAPL) return. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Everyone’s definition of a must-buy stock is different. I remember writing about Church & Dwight (NYSE:CHD) in 2016 when it was on one heck of a heater, as they say in sports—up 9% year to date (YTD) through April, working on its 11th consecutive year of market gains. | However, over the past five years, it’s up a whopping 237%, not too far off Apple’s (NASDAQ:AAPL) return. Therefore, let’s explore stocks to buy with an earnings yield above 6%. Recently, Devon was included in a trio of energy stocks to buy for income, after it reported Q3 2023 earnings. |
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12395.0 | 2023-11-24 00:00:00 UTC | Active Growth ETF TCHP a Top 5 Performer YTD | AAPL | https://www.nasdaq.com/articles/active-growth-etf-tchp-a-top-5-performer-ytd | If 2023 has been the year of active, the T. Rowe Price Blue Chip ETF (TCHP) has been a key contributor. The active growth ETF has not only surpassed significant AUM thresholds, passing $400 million, but also led based on YTD returns. Among nonleveraged, hedged, or inverse active ETFs with more than $300 million in AUM, TCHP has been a top-five performer, per VettaFi data. That may invite investors to take a closer look at the strategy ahead of 2024.
2023 has seen active ETFs cap off three years of picking up significant flows relative to their AUM. Since October 2020, actives picked up 14% of net flows despite representing just 3.5% of the ETF market. A combination of investors looking to active to ride out a turbulent few years, active mutual fund investors looking to swap to ETFs’ tax advantages, and a crowded indexed ETF space have boosted active ETFs’ year.
See more: "T. Rowe Price’s Active ETF Suite Hits $2 Billion AUM"
Together, those have contributed to a strong overall performance and some notable organic growth for active strategies versus their passive rivals. So what, then, can investors attribute TCHP’s performance to, specifically? The active growth ETF has benefited not only from investing in market leaders that fit its “blue chip” approach but also from its flexibility.
The Active Growth ETF TCHP's Approach
TCHP holds the likes of Apple (AAPL) and Nvidia (NVDA), of course. But it also holds other robust firms that receive less notice, like cloud computing firm ServiceNow (NOW). For only 57 basis points (bps), TCHP actively seeks out firms with seasoned management, dividend growth, strong fundamentals, and leading market positions. In doing so, it has returned 45.1% YTD, the fifth most among traditional (those without leverage, hedging, or inverse screens). In sum, it may be worth considering entering the new year.
For more news, information, and analysis, visit the Active ETF Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Active Growth ETF TCHP's Approach TCHP holds the likes of Apple (AAPL) and Nvidia (NVDA), of course. The active growth ETF has not only surpassed significant AUM thresholds, passing $400 million, but also led based on YTD returns. The active growth ETF has benefited not only from investing in market leaders that fit its “blue chip” approach but also from its flexibility. | The Active Growth ETF TCHP's Approach TCHP holds the likes of Apple (AAPL) and Nvidia (NVDA), of course. If 2023 has been the year of active, the T. Rowe Price Blue Chip ETF (TCHP) has been a key contributor. Among nonleveraged, hedged, or inverse active ETFs with more than $300 million in AUM, TCHP has been a top-five performer, per VettaFi data. | The Active Growth ETF TCHP's Approach TCHP holds the likes of Apple (AAPL) and Nvidia (NVDA), of course. A combination of investors looking to active to ride out a turbulent few years, active mutual fund investors looking to swap to ETFs’ tax advantages, and a crowded indexed ETF space have boosted active ETFs’ year. See more: "T. Rowe Price’s Active ETF Suite Hits $2 Billion AUM" Together, those have contributed to a strong overall performance and some notable organic growth for active strategies versus their passive rivals. | The Active Growth ETF TCHP's Approach TCHP holds the likes of Apple (AAPL) and Nvidia (NVDA), of course. If 2023 has been the year of active, the T. Rowe Price Blue Chip ETF (TCHP) has been a key contributor. A combination of investors looking to active to ride out a turbulent few years, active mutual fund investors looking to swap to ETFs’ tax advantages, and a crowded indexed ETF space have boosted active ETFs’ year. |
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12406.0 | 2023-11-23 00:00:00 UTC | ANALYSIS-Britain's Black Friday shoppers go second-hand in hunt for value | AAPL | https://www.nasdaq.com/articles/analysis-britains-black-friday-shoppers-go-second-hand-in-hunt-for-value | By Richa Naidu and Helen Reid
LONDON, Nov 23 (Reuters) - As Black Friday kicks off the holiday shopping season, retailers and manufacturers anticipate a growing number of British consumers will be hunting for refurbished and pre-owned bargains to save cash and shop more sustainably.
As persistent inflation and high mortgage rates dent shoppers' ability to spend, second-hand sellers like e-commerce firm eBay Inc EBAY.O and British charity Oxfam say they are anticipating increased sales of used items from vacuum cleaners to clothes.
Acknowledging that their new products remain out of reach for many shoppers, more manufacturers are offering refurbished merchandise at a lower profit margin, following a trend set by Apple AAPL.O. Luxury speaker company Sonos and exercise bike maker Peloton PTON.O are both selling refurbished goods on eBay UK this year, despite the risk it could cannibalise sales of their new products.
Nine out of eBay UK's top 10 deals last Black Friday were refurbished items. This year, discounts will be deeper on refurbished products, including Sonos SONO.O speakers and Peloton bikes, Eve Williams, general manager of eBay's business in the UK, said in an interview.
"People don't have the savings they had after COVID so they have to be savvier than ever," she said.
Vacuum maker Dyson has in recent years tied up with eBay UK to sell officially refurbished products at a hefty discount to the price of new ones.
While a new Dyson V11 Animal Cordless Vacuum retails at around 499 pounds ($622), refurbished ones will be on the platform this Friday for 218.99 pounds, eBay said.
The global refurbished electronics market is worth about $48 billion and is expected to grow about 10% each year until 2030, according to data from Coherent Market Insights. In comparison, the global electronics market, worth $723 billion, is forecast to grow nearly 6% each year until 2032, according to data from Precedence Research.
Some 23% of consumers globally say they are buying more second-hand products, according to the EY Future Consumer Index, a survey of 22,000 consumers published earlier this month.
Retailers as diverse as Sweden's fashion seller H&M HMb.ST and upmarket UK department store Selfridges are responding to the change in consumer behaviour.
Selfridges is aiming for almost half its customer interactions to be based on resale, repair, rental or refills by 2030, it said last year. H&M last month opened a second-hand clothing section in its flagship Regent Street store in London.
GROWING TREND
Traditional thrift stores are also benefiting as second-hand shopping loses its stigma and British aid organization Oxfam is offering 40% Black Friday discounts to woo consumers.
One third of British shoppers are planning to gift pre-owned items this year, according to a survey of 3,000 people commissioned by the charity, compared with one in four two years ago.
"We've seen a trend of people looking to buy secondhand gifts for many reasons: one is to save money, the other is because they're looking to make more sustainable choices," Oxfam's director of retail, Lorna Fallon, said.
Lucy Baker, a 19-year-old student, says she regularly buys second-hand Christmas gifts for her family, including clothes, books, homewares and board games.
"I found a waistcoat for my dad in a charity shop in Peckham the other day – I saw it and I thought I have to get it, he's going to love it," Baker said as she browsed in a Crisis charity shop in Camberwell, south-east London.
"It's definitely becoming more of a trend," she added.
Part of the draw is price, she said, as her student budget makes it hard to buy new items from high street stores. Sustainability is another factor.
"I like the idea of rewearing and reusing as much as possible," Baker said.
In the fourth quarter of last year, sales in UK charity shops grew by 8.6% compared the previous year, according to the Charity Retail Association. Meanwhile, the market size of Britain's apparel industry has declined 3.9% per year on average between 2017 and 2022, according to data firm IBISWorld.
Oxfam is targeting a 6% increase in holiday season sales this year compared with the year before, it told Reuters.
Lesley Wright, a volunteer at an Oxfam shop in Brighton, England, is gearing up for her "busiest-ever" holiday season.
"We're already seeing it on weekends," said Wright, 63, who has been volunteering for Oxfam since the mid 1980s.
"People with families have to feed and clothe children, with the stressful, extra burden of Christmas gifts."
(Reporting by Richa Naidu and Helen Reid; Editing by Matt Scuffham and Elaine Hardcastle)
(([email protected]; Follow me on X https://twitter.com/Richa_Writes; +44 755 755 9587;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Acknowledging that their new products remain out of reach for many shoppers, more manufacturers are offering refurbished merchandise at a lower profit margin, following a trend set by Apple AAPL.O. As persistent inflation and high mortgage rates dent shoppers' ability to spend, second-hand sellers like e-commerce firm eBay Inc EBAY.O and British charity Oxfam say they are anticipating increased sales of used items from vacuum cleaners to clothes. This year, discounts will be deeper on refurbished products, including Sonos SONO.O speakers and Peloton bikes, Eve Williams, general manager of eBay's business in the UK, said in an interview. | Acknowledging that their new products remain out of reach for many shoppers, more manufacturers are offering refurbished merchandise at a lower profit margin, following a trend set by Apple AAPL.O. By Richa Naidu and Helen Reid LONDON, Nov 23 (Reuters) - As Black Friday kicks off the holiday shopping season, retailers and manufacturers anticipate a growing number of British consumers will be hunting for refurbished and pre-owned bargains to save cash and shop more sustainably. As persistent inflation and high mortgage rates dent shoppers' ability to spend, second-hand sellers like e-commerce firm eBay Inc EBAY.O and British charity Oxfam say they are anticipating increased sales of used items from vacuum cleaners to clothes. | Acknowledging that their new products remain out of reach for many shoppers, more manufacturers are offering refurbished merchandise at a lower profit margin, following a trend set by Apple AAPL.O. By Richa Naidu and Helen Reid LONDON, Nov 23 (Reuters) - As Black Friday kicks off the holiday shopping season, retailers and manufacturers anticipate a growing number of British consumers will be hunting for refurbished and pre-owned bargains to save cash and shop more sustainably. One third of British shoppers are planning to gift pre-owned items this year, according to a survey of 3,000 people commissioned by the charity, compared with one in four two years ago. | Acknowledging that their new products remain out of reach for many shoppers, more manufacturers are offering refurbished merchandise at a lower profit margin, following a trend set by Apple AAPL.O. By Richa Naidu and Helen Reid LONDON, Nov 23 (Reuters) - As Black Friday kicks off the holiday shopping season, retailers and manufacturers anticipate a growing number of British consumers will be hunting for refurbished and pre-owned bargains to save cash and shop more sustainably. Nine out of eBay UK's top 10 deals last Black Friday were refurbished items. |
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12420.0 | 2023-11-22 00:00:00 UTC | Apple Stock (NASDAQ:AAPL): Can Siri Keep Up in the ChatGPT Age? | AAPL | https://www.nasdaq.com/articles/apple-stock-nasdaq%3Aaapl%3A-can-siri-keep-up-in-the-chatgpt-age | Apple (NASDAQ:AAPL) stock may be perceived as less AI-savvy than its rivals in the Magnificent Seven. Undoubtedly, the company's virtual assistant, Siri, doesn't seem too impressive in the age of ChatGPT. Though generative AI technologies, like large language models (LLMs), have been touted by many firms, Apple has continued to stay on the down-low regarding its AI ambitions. Nonetheless, various reports suggest Apple is investing heavily in AI to keep up with the likes of Microsoft (NASDAQ:MSFT) and ChatGPT-maker OpenAI.
Reportedly, Apple has a big stake in the generative AI game and is en route to spending around $1 billion on its development, according to a recent Bloomberg report. For now, it's impossible to tell where Apple stands in the generative AI race. Given its size and ability to innovate (and dominate markets it enters), I'd certainly not be surprised if the firm has an AI product — next-gen Siri, Apple GPT, or something else — that's even more capable than the latest iteration of ChatGPT.
As Apple quietly invests in its own take on AI, I continue to be bullish on the stock, even as the doubters doubt and the stock slowly begins to flirt with new all-time highs again.
Apple is an AI Stock, Even if the Market Doubts Its Potential
At the end of the day, Apple is famous for letting its hardware and software do the hype-building for it. Looking ahead, expect Apple to continue taking on a more product- and consumer-oriented approach rather than letting AI hog the podium — something other AI-savvy tech firms seem to be doing of late.
Undoubtedly, this entails treating AI not as the main focal point but as something working behind the scenes to make the lives of its customers easier. At the end of the day, the features that generative AI technologies make possible are a part of the magic of new tech-driven features. And as you may know, Apple is all about delivering products and experiences that work almost "like magic." In that regard, a truly fantastic magician never reveals the full extent of his secrets.
Could Apple's App Store be Pressured by OpenAI's GPTs?
OpenAI's recent DevDay unveiled some pretty exciting new features, including GPTs, which allow for customizable chatbots. However, more recently, the board's short-lived ousting of CEO Sam Altman was the bombshell that hogged all the attention. As the situation settles and Altman returns to the corner office over at OpenAI, expect the focus to return to the firm's latest and greatest innovations, which may very well lay down the foundation for its own ecosystem or App Store for AI, as some folks are putting it.
Undoubtedly, if you can use a chatbot to order food, answer questions, and carry out various tasks, smartphone app usage could take a bit of a hit. ARK Invest's Cathie Wood seems to think ChatGPT could be a disruptor to Apple. While Wood has been known to make extremely forward-looking comments, I do think the advent of GPTs could evolve to become a credible threat to Apple's App Store if it's complacent.
Fortunately for Apple shareholders, the company does not seem to be taking the potential of AI lightly, not in the slightest. As Apple continues spending a pretty penny on generative AI tech, the company may be keeping up, stride for stride, with the likes of the market's most-rewarded AI companies. Further, what ultimately succeeds Apple's App Store may very well be something of its own creation.
Remember, Apple is a firm that's more than willing to cannibalize its own business as new tech rolls around. The advent of Apple Music may have eaten into iTunes' sales. But at the end of the day, Apple has a heck of a lot more to gain than lose from the rise of new nascent technologies.
As for when Siri will be ready for the ChatGPT era, a recent report by Mark Gurman suggests that Siri may be in for its big upgrade next year. Additionally, Apple may be ready to sprinkle AI across its offerings (Pages, Numbers, Keynote, Apple Music, and Xcode) in the near future.
Is AAPL Stock a Buy, According to Analysts?
On TipRanks, AAPL stock comes in as a Strong Buy. Out of 33 analyst ratings, there are 25 Buys and eight Hold recommendations. The average Apple stock price target is $201.99, implying upside potential of 5.6%. Analyst price targets range from a low of $150.00 per share to a high of $240.00 per share.
The Bottom Line on AAPL Shares
Apple has a lot on the line as generative AI continues to take off. Though 2023 may be a slow year for AI innovations, 2024 could be a year where the firm really makes up for lost time, perhaps allowing it to pull ahead of rivals like Microsoft.
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 may be perceived as less AI-savvy than its rivals in the Magnificent Seven. Is AAPL Stock a Buy, According to Analysts? On TipRanks, AAPL stock comes in as a Strong Buy. | The Bottom Line on AAPL Shares Apple has a lot on the line as generative AI continues to take off. Apple (NASDAQ:AAPL) stock may be perceived as less AI-savvy than its rivals in the Magnificent Seven. Is AAPL Stock a Buy, According to Analysts? | Apple (NASDAQ:AAPL) stock may be perceived as less AI-savvy than its rivals in the Magnificent Seven. Is AAPL Stock a Buy, According to Analysts? On TipRanks, AAPL stock comes in as a Strong Buy. | Apple (NASDAQ:AAPL) stock may be perceived as less AI-savvy than its rivals in the Magnificent Seven. Is AAPL Stock a Buy, According to Analysts? On TipRanks, AAPL stock comes in as a Strong Buy. |
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12435.0 | 2023-11-21 00:00:00 UTC | Apple (NASDAQ:AAPL): Boring, But Commands Massive Pricing Power | AAPL | https://www.nasdaq.com/articles/apple-nasdaq%3Aaapl%3A-boring-but-commands-massive-pricing-power | As one of the top consumer technology companies in the world, Apple (NASDAQ:AAPL) faces a distinct conundrum. Being a mature and established enterprise lends Apple to criticism that it’s boring. At the same time, pressure on the consumer economy implies a loss of relevance. Still, the company commands massive pricing power, making it a worthwhile investment to consider. I am bullish on AAPL stock for its resilience under pressure.
Breaking Down AAPL's Recent Results
For starters, Apple’s most recent earnings print for its fourth quarter of Fiscal 2023 provided a confidence boost for investors. Heading into the report, confidence was generally high. However, analysts pointed to concerns about weakness in the company’s hardware sales. That’s not surprising, given global demand worries – particularly in China – as well as supply constraint issues. Still, Apple delivered the goods like it usually does.
As TipRanks contributor Abdulrasaq Ariwoola reported, earnings per share landed at $1.46, beating the consensus target of $1.39 per share. On the top line, sales did happen to decrease 0.7% on a year-over-year basis to $89.46 billion. Nevertheless, this tally slightly exceeded analysts’ expectations, which called for $89.28 billion.
As for the hardware components, Apple’s iPhone sales rang up $43.81 billion, in line with Wall Street’s projections. In addition, this print represented a 2% lift from the year-ago quarter’s tally. Similarly, iPad revenue enjoyed an encouraging performance, reaching $6.44 billion, which beat the consensus view of $6.07 billion.
In fairness, it wasn’t all positive for AAPL stock. Sales related to Apple’s Mac computers slipped, coming out to $7.61 billion against an expected $8.63 billion. Further, to Ariwoola’s point, shares initially fell in after-hours trading following the earnings disclosure.
That could be due to options market dynamics. Both before and after the disclosure, options flow data showed bearish trades – both bought puts and sold calls – that may have impacted sentiment. Still, it appears that the power of the fundamentals has taken over the narrative.
Gross Margin Trend Confirms Apple’s Pricing Power
As impressive as the Fiscal Q4 print was for Apple, what could really drive AAPL stock higher for the long haul could be its pricing power. To be clear, no company is completely immune from outside pressures. For example, inflation remains stubbornly high. If the Federal Reserve wants to take the gloves off with aggressively higher interest rates, that could roil the economy.
Nevertheless, the company’s gross margin continues to march higher despite obvious headwinds impacting the consumer economy. In Fiscal Q4, Apple posted a gross margin of 45.2%. In the year-ago quarter, this metric sat at 42.3%. This is a strong indicator that, irrespective of increased prices, consumers will continue to buy Apple products. That bodes very well for AAPL stock.
Since Q4 of Fiscal 2020, when Apple’s gross margin landed at 38.2%, this metric has witnessed a dramatic surge higher. In a hyperbolic sense, the company enjoys the license to print money. Of course, as the Mac sales decline shows, Apple can’t afford to casually drop the ball. However, the fact that so many people continue to buy the firm's products in large quantities demonstrates practically unparalleled influence.
Let’s face it – there’s not much distinguishing one smart device brand from another these days. Nevertheless, Apple benefits from a social cachet that its rivals lack. Not even inflationary economic conditions can dent this market presence. That’s a huge positive for AAPL stock.
Not Cheap, but Effective
If one knock does exist about AAPL stock, it’s that the security trades at a high earnings premium. Right now, the market prices AAPL at about a trailing-year multiple of 31x. Generally speaking, Apple falls under the computer hardware sector, which runs a price/earnings ratio of 18.5x.
At the same time, the bullish argument for AAPL stock centers on the predictability of the earnings trajectory. Facing uncertain market conditions, business predictability should command a higher premium over enterprises that are merely cheap. Given Apple’s consistent strengths amid widespread pressure, that’s a premium worth absorbing.
Is AAPL Stock a Buy, According to Analysts?
Turning to Wall Street, AAPL stock has a Strong Buy consensus rating based on 25 Buys, eight Holds, and zero Sell ratings. The average AAPL stock price target is $201.99, implying 5.95% upside potential.
The Takeaway: AAPL Stock is Boring but Dependable
As an established player, no one should expect AAPL stock to be an exciting investment. However, for those concerned about the ambiguities of what may lie ahead in the new year, Apple brings a strong platform to the table. With the company consistently attracting consumer dollars despite significant headwinds, AAPL stock is worthy of consideration.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As one of the top consumer technology companies in the world, Apple (NASDAQ:AAPL) faces a distinct conundrum. I am bullish on AAPL stock for its resilience under pressure. Breaking Down AAPL's Recent Results For starters, Apple’s most recent earnings print for its fourth quarter of Fiscal 2023 provided a confidence boost for investors. | Turning to Wall Street, AAPL stock has a Strong Buy consensus rating based on 25 Buys, eight Holds, and zero Sell ratings. As one of the top consumer technology companies in the world, Apple (NASDAQ:AAPL) faces a distinct conundrum. I am bullish on AAPL stock for its resilience under pressure. | As one of the top consumer technology companies in the world, Apple (NASDAQ:AAPL) faces a distinct conundrum. Gross Margin Trend Confirms Apple’s Pricing Power As impressive as the Fiscal Q4 print was for Apple, what could really drive AAPL stock higher for the long haul could be its pricing power. The Takeaway: AAPL Stock is Boring but Dependable As an established player, no one should expect AAPL stock to be an exciting investment. | Gross Margin Trend Confirms Apple’s Pricing Power As impressive as the Fiscal Q4 print was for Apple, what could really drive AAPL stock higher for the long haul could be its pricing power. Is AAPL Stock a Buy, According to Analysts? As one of the top consumer technology companies in the world, Apple (NASDAQ:AAPL) faces a distinct conundrum. |
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12446.0 | 2023-11-20 00:00:00 UTC | 2 Beaten-Down Growth Stocks That Could Rocket 42% to 67% Higher, According to Wall Street | AAPL | https://www.nasdaq.com/articles/2-beaten-down-growth-stocks-that-could-rocket-42-to-67-higher-according-to-wall-street | Individual investors who go looking for stocks that can deliver dramatic gains in a short amount of time want to turn their attention to tech, and biotechnology. Right now, sell-side analysts are pounding the table on a pair of stocks from these industries that could make big moves in the near term.
Consensus price targets issued by the investment bank analysts who follow these stocks suggest they can rocket 42% to 67% higher in the year ahead.
Image source: Getty Images.
Before you risk any of your hard-earned money on these stocks, it's important to realize investment bank analysts who set attention-getting price targets have nothing to lose but their reputations if things don't work out as expected. Here's a closer look to see if they're appropriate for your portfolio.
Opera Limited
Shares of Opera Limited (NASDAQ: OPRA) are down about 56% from the peak they set this summer. Wall Street analysts expect it to start bouncing back soon. The average price target on the stock implies a 67% gain over the next 12 months.
Opera has been making web browsers for decades, but its share of the global browser market in October was just 3.31% or fourth place, behind Alphabet's Chrome, Apple's Safari, and Microsoft's Edge browser. Despite a limited share of the browser market, the business has raised revenue by more than 20% year over year for 11 straight quarters.
Opera launched Opera One, a new browser with heaps of integrated AI features, in June. It also sports an increasingly popular gaming browser, Opera GX, that added millions of users in the third quarter to reach 26.1 million at the end of September.
As this is a tech company with heaps of room to grow, you might expect Opera Limited to plow all of its profits back into growth initiatives, but it isn't following the typical Silicon Valley playbook. Opera is headquartered in Norway and is majority-owned by a Chinese investment company that clearly favors focusing on its bottom line and returning profits to shareholders. The company initiated a semiannual dividend of $0.40 per share earlier this year, and at recent prices, the stock offers a juicy 6.5% yield.
Shares of Opera have been trading for around 15.4 times trailing free cash flow. This is a low multiple for a company growing so quickly, but investors still want to tread lightly with this stock. Earnings are on the rise now, but it's not hard for internet users to just switch browsers if Opera starts leaning too heavily on advertising.
Editas Medicine
The past month has been a great one for Editas Medicine (NASDAQ: EDIT), but the stock is still down about 89% from the peak it reached in 2021. Wall Street analysts who follow the biotechnology business are expecting a comeback. The average analyst following the stock expects a 42% gain over the next 12 months.
Editas Medicine is hot on the heels of CRISPR Therapeutics with EDIT-301, an experimental gene therapy for patients with sickle cell disease or beta-thalassemia. Both companies are developing new treatments for these patients that employ CRISPR-based techniques. EDIT-301 is the only one using an enzyme called AdCas12a to edit patients' stem cells so they'll produce fetal hemoglobin.
Regulators in the UK have already approved exa-cel from CRISPR Therapeutics and its collaboration partner, Vertex Pharmaceuticals. The U.S. Food and Drug Administration (FDA) is expected to issue an approval decision for exa-cel on or before Dec. 8. Editas hasn't even submitted an application for EDIT-301 yet.
Editas Medicine will share clinical trial updates from the EDIT-301 program in December, but investors should know that it's still enrolling patients who will need more than a year of follow-up observation before we know if the candidate can join exa-cel and another competing gene therapy from bluebird bio.
Wall Street's price targets aren't unreasonable, but investors should understand that this is a very risky stock. At recent prices, Editas has a big $799 million market cap even though it will be at least a couple of years before the company can record any product sales.
10 stocks we like better than Opera
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, CRISPR Therapeutics, Editas Medicine, Microsoft, and Vertex Pharmaceuticals. The Motley Fool recommends Bluebird Bio. 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. | Before you risk any of your hard-earned money on these stocks, it's important to realize investment bank analysts who set attention-getting price targets have nothing to lose but their reputations if things don't work out as expected. As this is a tech company with heaps of room to grow, you might expect Opera Limited to plow all of its profits back into growth initiatives, but it isn't following the typical Silicon Valley playbook. Editas Medicine will share clinical trial updates from the EDIT-301 program in December, but investors should know that it's still enrolling patients who will need more than a year of follow-up observation before we know if the candidate can join exa-cel and another competing gene therapy from bluebird bio. | Consensus price targets issued by the investment bank analysts who follow these stocks suggest they can rocket 42% to 67% higher in the year ahead. Opera Limited Shares of Opera Limited (NASDAQ: OPRA) are down about 56% from the peak they set this summer. The Motley Fool has positions in and recommends Alphabet, Apple, CRISPR Therapeutics, Editas Medicine, Microsoft, and Vertex Pharmaceuticals. | Editas Medicine The past month has been a great one for Editas Medicine (NASDAQ: EDIT), but the stock is still down about 89% from the peak it reached in 2021. 10 stocks we like better than Opera When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of November 15, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. | As this is a tech company with heaps of room to grow, you might expect Opera Limited to plow all of its profits back into growth initiatives, but it isn't following the typical Silicon Valley playbook. The average analyst following the stock expects a 42% gain over the next 12 months. The Motley Fool has positions in and recommends Alphabet, Apple, CRISPR Therapeutics, Editas Medicine, Microsoft, and Vertex Pharmaceuticals. |
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12455.0 | 2023-11-19 00:00:00 UTC | $248 Billion of Warren Buffett's Portfolio Is Invested in 7 Stocks That Check Off This 1 Important Box | AAPL | https://www.nasdaq.com/articles/%24248-billion-of-warren-buffetts-portfolio-is-invested-in-7-stocks-that-check-off-this-1 | What does Warren Buffett really, really like to see in a stock? We could read all of his annual letters to Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholders to find out. We could also go back to the many interviews the legendary investor has given through the years.
But perhaps the best approach is to examine what Buffett has done instead of what he's said. How? Check out the stocks that are actually in Berkshire's portfolio. Roughly $248 billion of Buffett's $354 billion portfolio is invested in seven stocks that check off one important box.
Cash flow is king
Let's first address the important common denominator for the seven stocks. You've probably heard the adage, "Cash is king." I suspect that Buffett would tweak the expression to say, "Cash flow is king." In particular, free cash flow ranks as a critical metric for evaluating a stock.
Buffett prefers to use the term "owner's earnings" for what many investors call free cash flow. That's a good way of thinking about the financial metric. It measures the cash left over after a company pays all of its operating costs and makes any capital expenditures. In other words, free cash flow basically is the earnings that the company's owners (for a public company, its shareholders) ultimately have available.
Free cash flow can be used to invest in growing the business. It can be used to pay dividends. It can also be used in stock buybacks, which boost the value of existing shares.
Buffett's "Magnificent Seven"
Buffett once stated, "We are trying to look at businesses in terms of what kind of cash can they produce if we're buying all of them, or will they produce, if we're buying part of them." The Oracle of Omaha definitely appears to put Berkshire's money where his mouth is. The table below shows the seven stocks in Berkshire's portfolio that generate a massive amount of free cash flow.
STOCK FREE CASH FLOW VALUE OF BERKSHIRE STAKE
Apple (NASDAQ: AAPL) $99.6 billion $173.5 billion
Bank of America (NYSE: BAC) $43.3 billion $30.2 billion
American Express (NYSE: AXP) $18.6 billion $24.0 billion
Chevron (NYSE: CVX) $20.4 billion $15.6 billion
Visa (NYSE: V) $19.7 billion $2.1 billion
Amazon (NASDAQ: AMZN) $16.9 billion $1.4 billion
Capital One Financial (NYSE: COF) $20.6 billion $1.3 billion
Total $248.4 billion
Data sources: YCharts, CNBC. Values of Berkshire stakes as of Nov. 16, 2023.
Apple is obviously the 800-pound gorilla in Berkshire's portfolio. Not so coincidentally, the tech giant also ranks as the biggest free cash flow machine among the conglomerate's holdings. Apple's iPhone ecosystem continues to churn out cash quarter after quarter.
Winners all around
It's not surprising that all seven of these Buffett stocks have been huge winners over the long term. Most have delivered impressive gains over the last decade.
Granted, some of them have experienced challenges at times. Bank of America has been negatively impacted by the banking crisis this year. Chevron's fortunes ebb and flow with oil and gas price swings.
However, the strong free cash flow generated by these stocks reflects their solid underlying businesses. Several of them claim exceptional economic boats (Apple, Amazon, and Visa especially stand out on this front).
Investors looking for great long-term stocks to buy should be able to find excellent ideas from Buffett's "Magnificent Seven." Companies like Apple, Bank of America, American Express, Chevron, Visa, Amazon, and Capital One are likely to continue delivering growth and rewarding shareholders through dividends and/or stock buybacks for years to come.
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American Express is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Amazon, Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has positions in and recommends Amazon, Apple, Bank of America, Berkshire Hathaway, and Visa. The Motley Fool recommends Chevron. 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) $99.6 billion $173.5 billion Bank of America (NYSE: BAC) $43.3 billion $30.2 billion American Express (NYSE: AXP) $18.6 billion $24.0 billion Chevron (NYSE: CVX) $20.4 billion $15.6 billion Visa (NYSE: V) $19.7 billion $2.1 billion Amazon (NASDAQ: AMZN) $16.9 billion $1.4 billion Capital One Financial (NYSE: COF) $20.6 billion $1.3 billion Total $248.4 billion Data sources: YCharts, CNBC. Not so coincidentally, the tech giant also ranks as the biggest free cash flow machine among the conglomerate's holdings. Companies like Apple, Bank of America, American Express, Chevron, Visa, Amazon, and Capital One are likely to continue delivering growth and rewarding shareholders through dividends and/or stock buybacks for years to come. | Apple (NASDAQ: AAPL) $99.6 billion $173.5 billion Bank of America (NYSE: BAC) $43.3 billion $30.2 billion American Express (NYSE: AXP) $18.6 billion $24.0 billion Chevron (NYSE: CVX) $20.4 billion $15.6 billion Visa (NYSE: V) $19.7 billion $2.1 billion Amazon (NASDAQ: AMZN) $16.9 billion $1.4 billion Capital One Financial (NYSE: COF) $20.6 billion $1.3 billion Total $248.4 billion Data sources: YCharts, CNBC. Companies like Apple, Bank of America, American Express, Chevron, Visa, Amazon, and Capital One are likely to continue delivering growth and rewarding shareholders through dividends and/or stock buybacks for years to come. The Motley Fool has positions in and recommends Amazon, Apple, Bank of America, Berkshire Hathaway, and Visa. | Apple (NASDAQ: AAPL) $99.6 billion $173.5 billion Bank of America (NYSE: BAC) $43.3 billion $30.2 billion American Express (NYSE: AXP) $18.6 billion $24.0 billion Chevron (NYSE: CVX) $20.4 billion $15.6 billion Visa (NYSE: V) $19.7 billion $2.1 billion Amazon (NASDAQ: AMZN) $16.9 billion $1.4 billion Capital One Financial (NYSE: COF) $20.6 billion $1.3 billion Total $248.4 billion Data sources: YCharts, CNBC. Companies like Apple, Bank of America, American Express, Chevron, Visa, Amazon, and Capital One are likely to continue delivering growth and rewarding shareholders through dividends and/or stock buybacks for years to come. See the 10 stocks *Stock Advisor returns as of November 15, 2023 American Express is an advertising partner of The Ascent, a Motley Fool company. | Apple (NASDAQ: AAPL) $99.6 billion $173.5 billion Bank of America (NYSE: BAC) $43.3 billion $30.2 billion American Express (NYSE: AXP) $18.6 billion $24.0 billion Chevron (NYSE: CVX) $20.4 billion $15.6 billion Visa (NYSE: V) $19.7 billion $2.1 billion Amazon (NASDAQ: AMZN) $16.9 billion $1.4 billion Capital One Financial (NYSE: COF) $20.6 billion $1.3 billion Total $248.4 billion Data sources: YCharts, CNBC. Buffett prefers to use the term "owner's earnings" for what many investors call free cash flow. Companies like Apple, Bank of America, American Express, Chevron, Visa, Amazon, and Capital One are likely to continue delivering growth and rewarding shareholders through dividends and/or stock buybacks for years to come. |
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12458.0 | 2023-11-18 00:00:00 UTC | This Magnificent Artificial Intelligence (AI) Stock Is About to Step on the Gas, and It Is Cheap Right Now | AAPL | https://www.nasdaq.com/articles/this-magnificent-artificial-intelligence-ai-stock-is-about-to-step-on-the-gas-and-it-is | Shares of Taiwan Semiconductor Manufacturing (NYSE: TSM) received a big boost last week after the company, which is popularly known as TSMC, reported a terrific surge in its monthly revenue for October.
The Taiwan-based foundry giant reported October revenue of 243.2 billion Taiwanese dollars ($7.7 billion), up 16% year over year. The increase was particularly impressive on a sequential basis, as TSMC's revenue jumped almost 35% month over month. Investors were overjoyed to see the company's healthy growth, as it has struggled to grow its revenue in 2023 so far due to a weak smartphone market.
TSMC's revenue has dropped 6% year over year in the first nine months of 2023 to NT$1.54 trillion ($49.7 billion). But the company's latest monthly revenue report suggests that it could end the year strongly, and even sustain its momentum for a long time to come.
Let's see what powered TSMC's latest revenue surge.
Apple may have powered its sales surge
Apple is reportedly TSMC's largest customer, accounting for 23% of its revenue in 2022. As Apple recently released the latest generation of its iPhones, the tech giant must have ideally placed more orders for chips that TSMC makes for it.
Apple's iPhone 15 Pro and Pro Max models are powered by a 3-nanometer (nm) chip. TSMC management pointed out on the company's October earnings conference call that it is witnessing a "strong ramp of our industry-leading 3-nanometer technology," suggesting that the company was increasing production of these chips in preparation for Apple's iPhone launch.
More importantly, TSMC estimates that the sales of its 3nm chips will continue to ramp up in the fourth quarter, and management remains confident that this node could drive long-term growth for the company. TSMC got 6% of its revenue from selling 3nm chips last quarter, but it won't be surprising to see this technology move the needle in a bigger way for the company.
After all, TSMC estimates that the market for 3nm chips could be worth a whopping $1.5 trillion in five years of entering volume production. One reason why that may be the case is because of the advantages of smaller process nodes over larger ones in terms of computing performance, power consumption, and the real estate they occupy.
That's why it won't be surprising to see 3nm chips being deployed for powering artificial intelligence (AI) servers, which need a lot of computing power, and need to be power-efficient at the same time so that they can run cooler. Reports suggest that AI chip leader Nvidia is reportedly going to adopt TSMC's 3nm process as the foundation for its Blackwell architecture to manufacture its next-generation AI processor in 2024.
It is worth noting that Nvidia is already a TSMC customer, as its highly popular H100 AI graphics processing unit (GPU) is based on the latter's 5nm manufacturing node. Nvidia's data center GPUs, which are used for powering AI servers, have witnessed massive performance jumps each time the company has moved to a smaller process node. As a result, it won't be surprising to see it adopting TSMC's 3nm node that Apple currently uses to make more powerful processors.
Moreover, TSMC is having a hard time keeping up with AI-related demand. CEO C.C. Wei pointed out on the company'searnings callthat TSMC has "a capacity limitation to support" AI demand. As a result, the company is busy expanding its capacity to produce AI chips. Wei says that TSMC is on track to more than double its advanced packaging capacity by the end of 2024 because of "very high demand" from a particular customer. That customer is likely Nvidia, as the latter has been placing more orders for TSMC chips.
Nvidia reportedly produced 6% of TSMC's top line last year. However, it won't be surprising to see it becoming a bigger customer thanks to AI, and that could enable TSMC to make the most of the huge end-market opportunity in 3nm chips.
How much upside can investors expect?
TSMC's top line is anticipated to grow at a healthy pace over the next couple of years. As the following chart shows, its top line could inch closer to $100 billion by 2025.
TSM Revenue Estimates for Current Fiscal Year data by YCharts
Assuming the company does hit the $96 billion revenue that's being estimated by Wall Street analysts and trades at its five-year average sales multiple of 8.5 at that time, its market capitalization could increase to $816 billion in the next three years. That would be a 59% increase from current levels. Given that TSMC is trading at a relatively cheaper 7.6 times sales right now, investors are getting a good deal on the stock.
What's more, TSMC is cheaper than the likes of Nvidia considering the impressive growth that it's on track to deliver. That's why investors looking to buy an AI stock before it steps on the gas should consider buying it before it becomes expensive.
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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool recommends Apple, 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. | Shares of Taiwan Semiconductor Manufacturing (NYSE: TSM) received a big boost last week after the company, which is popularly known as TSMC, reported a terrific surge in its monthly revenue for October. More importantly, TSMC estimates that the sales of its 3nm chips will continue to ramp up in the fourth quarter, and management remains confident that this node could drive long-term growth for the company. Nvidia's data center GPUs, which are used for powering AI servers, have witnessed massive performance jumps each time the company has moved to a smaller process node. | But the company's latest monthly revenue report suggests that it could end the year strongly, and even sustain its momentum for a long time to come. Nvidia's data center GPUs, which are used for powering AI servers, have witnessed massive performance jumps each time the company has moved to a smaller process node. As a result, it won't be surprising to see it adopting TSMC's 3nm node that Apple currently uses to make more powerful processors. | TSMC management pointed out on the company's October earnings conference call that it is witnessing a "strong ramp of our industry-leading 3-nanometer technology," suggesting that the company was increasing production of these chips in preparation for Apple's iPhone launch. Reports suggest that AI chip leader Nvidia is reportedly going to adopt TSMC's 3nm process as the foundation for its Blackwell architecture to manufacture its next-generation AI processor in 2024. TSM Revenue Estimates for Current Fiscal Year data by YCharts Assuming the company does hit the $96 billion revenue that's being estimated by Wall Street analysts and trades at its five-year average sales multiple of 8.5 at that time, its market capitalization could increase to $816 billion in the next three years. | As a result, it won't be surprising to see it adopting TSMC's 3nm node that Apple currently uses to make more powerful processors. Nvidia reportedly produced 6% of TSMC's top line last year. TSM Revenue Estimates for Current Fiscal Year data by YCharts Assuming the company does hit the $96 billion revenue that's being estimated by Wall Street analysts and trades at its five-year average sales multiple of 8.5 at that time, its market capitalization could increase to $816 billion in the next three years. |
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12466.0 | 2023-11-17 00:00:00 UTC | After Hours Most Active for Nov 17, 2023 : MMM, QQQ, MATV, AAPL, NU, VCSH, MSFT, STRO, AMZN, KEY, VZ, BAC | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-nov-17-2023-%3A-mmm-qqq-matv-aapl-nu-vcsh-msft-stro-amzn-key-vz | The NASDAQ 100 After Hours Indicator is down -17.07 to 15,820.92. The total After hours volume is currently 90,330,083 shares traded.
The following are the most active stocks for the after hours session:
3M Company (MMM) is unchanged at $95.34, with 4,398,341 shares traded. MMM's current last sale is 90.37% of the target price of $105.5.
Invesco QQQ Trust, Series 1 (QQQ) is -0.27 at $385.77, with 3,562,042 shares traded. This represents a 48.53% increase from its 52 Week Low.
Mativ Holdings, Inc. (MATV) is unchanged at $13.71, with 3,402,922 shares traded. As reported by Zacks, the current mean recommendation for MATV is in the "strong buy range".
Apple Inc. (AAPL) is +0.09 at $189.78, with 3,138,577 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $1.59. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Nu Holdings Ltd. (NU) is unchanged at $8.07, with 2,492,283 shares traded. As reported by Zacks, the current mean recommendation for NU is in the "buy range".
Vanguard Short-Term Corporate Bond ETF (VCSH) is unchanged at $75.77, with 2,294,246 shares traded. This represents a 1.8% increase from its 52 Week Low.
Microsoft Corporation (MSFT) is -1.59 at $368.26, with 2,231,678 shares traded. Over the last four weeks they have had 13 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $2.75. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Sutro Biopharma, Inc. (STRO) is unchanged at $2.69, with 1,857,662 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $-0.81. As reported by Zacks, the current mean recommendation for STRO is in the "buy range".
Amazon.com, Inc. (AMZN) is -0.09 at $145.09, with 1,804,116 shares traded. Over the last four weeks they have had 12 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.77. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
KeyCorp (KEY) is -0.02 at $12.30, with 1,493,925 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $0.26. KEY's current last sale is 94.62% of the target price of $13.
Verizon Communications Inc. (VZ) is +0.04 at $36.27, with 1,489,000 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024. The consensus EPS forecast is $1.17. VZ's current last sale is 88.46% of the target price of $41.
Bank of America Corporation (BAC) is -0.0003 at $29.98, with 1,214,143 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $0.79. BAC's current last sale is 88.18% of the target price of $34.
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 +0.09 at $189.78, with 3,138,577 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for MATV is in the "strong buy range". | Apple Inc. (AAPL) is +0.09 at $189.78, with 3,138,577 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. | Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. Apple Inc. (AAPL) is +0.09 at $189.78, with 3,138,577 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". | Apple Inc. (AAPL) is +0.09 at $189.78, with 3,138,577 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 -17.07 to 15,820.92. |
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12488.0 | 2023-11-16 00:00:00 UTC | Is WisdomTree U.S. LargeCap Dividend ETF (DLN) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-wisdomtree-u.s.-largecap-dividend-etf-dln-a-strong-etf-right-now-11 | Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the WisdomTree U.S. LargeCap Dividend ETF (DLN) is a smart beta exchange traded fund launched on 06/16/2006.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
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.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Managed by Wisdomtree, DLN has amassed assets over $3.51 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. DLN, before fees and expenses, seeks to match the performance of the WisdomTree U.S. LargeCap Dividend Index.
The WisdomTree U.S. LargeCap Dividend Index is a fundamentally weighted index that measures the performance of the large-capitalization segment of the U.S. dividend-paying market.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.28% for DLN, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.52%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 19.90% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.42% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM).
Its top 10 holdings account for approximately 26.68% of DLN's total assets under management.
Performance and Risk
So far this year, DLN has added about 3.74%, and is up roughly 2.77% in the last one year (as of 11/16/2023). During this past 52-week period, the fund has traded between $58.89 and $65.66.
The fund has a beta of 0.89 and standard deviation of 14.23% for the trailing three-year period, which makes DLN a medium risk choice in this particular space. With about 300 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
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 $49.72 billion in assets, Vanguard Value ETF has $99.15 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
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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WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : 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.
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 4.42% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : 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. Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the WisdomTree U.S. LargeCap Dividend ETF (DLN) is a smart beta exchange traded fund launched on 06/16/2006. | Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : 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. Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.42% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Alternatives WisdomTree U.S. LargeCap Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. | Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : 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. Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.42% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the WisdomTree U.S. LargeCap Dividend ETF (DLN) is a smart beta exchange traded fund launched on 06/16/2006. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.42% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : 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. DLN, before fees and expenses, seeks to match the performance of the WisdomTree U.S. LargeCap Dividend Index. |
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12501.0 | 2023-11-15 00:00:00 UTC | US lawmakers question Apple over Jon Stewart's China content | AAPL | https://www.nasdaq.com/articles/us-lawmakers-question-apple-over-jon-stewarts-china-content-0 | By Patricia Zengerle and Michael Martina
WASHINGTON, Nov 15 (Reuters) - U.S. lawmakers asked Apple Inc to explain the abrupt end of political comedian Jon Stewart's television show on its streaming service, according to a letter made public on Wednesday, citing concerns that content related to China was behind the cancellation.
The New York Times reported last month that Stewart's show on Apple's streaming service was ending, the result of creative differences. The newspaper said Stewart told members of his staff that potential show topics related to China and artificial intelligence were causing concern to Apple executives.
Apple AAPL.O declined comment to the Times.
"While companies have the right to determine what content is appropriate for their streaming service, the coercive tactics of a foreign power should not be directly or indirectly influencing these determinations," the Republican and Democratic leaders of the House of Representatives' Select Committee on Competition with the Chinese Communist Party said in the letter to Apple Chief Executive Tim Cook.
The letter asked representatives of Apple for a briefing on its concerns by Dec. 15, 2023. It said the committee also expected to speak with representatives of Stewart.
"To reassure the creative community in light of these reports, we also respectfully request that Apple publicly commit that content that could be perceived as critical of the CCP or the PRC is welcome on Apple TV+ and other Apple services," said the letter, signed by the panel's Republican chairperson, Representative Michael Gallagher, and Representative Raja Krishnamoorthi, the panel's ranking Democrat.
Representatives for Stewart and Apple did not respond to Reuters' requests for comment.
The letter was released ahead of a dinner expected on Wednesday night at which top U.S. business leaders were to dine with Chinese President Xi Jinping in San Francisco as he seeks to court American companies and counter his country's recent struggles to entice foreign investment.
The dinner on the margins of the Asia-Pacific Economic Cooperation (APEC) forum would follow a day of talks between Xi and U.S. President Joe Biden, aimed at stabilizing fraught ties between the world's two largest economies.
The House committee has made China's controls on media a focus of its work.
U.S. lawmakers have long expressed concerns about potential Chinese government censorship given the ruling Communist Party’s strict media controls. The concern is particularly acute for Hollywood films, as some studios have altered or self-censored scripts to appease Chinese government minders and gain access to the country’s market.
(Reporting by Patricia Zengerle and Michael Martina; Additional reporting by Stephen Nellis and Dawn Chmielewski; Editing by Stephen Coates)
(([email protected], www.twitter.com/ReutersZengerle; 001-202-898-8390;))
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.O declined comment to the Times. By Patricia Zengerle and Michael Martina WASHINGTON, Nov 15 (Reuters) - U.S. lawmakers asked Apple Inc to explain the abrupt end of political comedian Jon Stewart's television show on its streaming service, according to a letter made public on Wednesday, citing concerns that content related to China was behind the cancellation. The letter was released ahead of a dinner expected on Wednesday night at which top U.S. business leaders were to dine with Chinese President Xi Jinping in San Francisco as he seeks to court American companies and counter his country's recent struggles to entice foreign investment. | Apple AAPL.O declined comment to the Times. By Patricia Zengerle and Michael Martina WASHINGTON, Nov 15 (Reuters) - U.S. lawmakers asked Apple Inc to explain the abrupt end of political comedian Jon Stewart's television show on its streaming service, according to a letter made public on Wednesday, citing concerns that content related to China was behind the cancellation. The New York Times reported last month that Stewart's show on Apple's streaming service was ending, the result of creative differences. | Apple AAPL.O declined comment to the Times. By Patricia Zengerle and Michael Martina WASHINGTON, Nov 15 (Reuters) - U.S. lawmakers asked Apple Inc to explain the abrupt end of political comedian Jon Stewart's television show on its streaming service, according to a letter made public on Wednesday, citing concerns that content related to China was behind the cancellation. "While companies have the right to determine what content is appropriate for their streaming service, the coercive tactics of a foreign power should not be directly or indirectly influencing these determinations," the Republican and Democratic leaders of the House of Representatives' Select Committee on Competition with the Chinese Communist Party said in the letter to Apple Chief Executive Tim Cook. | Apple AAPL.O declined comment to the Times. By Patricia Zengerle and Michael Martina WASHINGTON, Nov 15 (Reuters) - U.S. lawmakers asked Apple Inc to explain the abrupt end of political comedian Jon Stewart's television show on its streaming service, according to a letter made public on Wednesday, citing concerns that content related to China was behind the cancellation. "While companies have the right to determine what content is appropriate for their streaming service, the coercive tactics of a foreign power should not be directly or indirectly influencing these determinations," the Republican and Democratic leaders of the House of Representatives' Select Committee on Competition with the Chinese Communist Party said in the letter to Apple Chief Executive Tim Cook. |
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12519.0 | 2023-11-14 00:00:00 UTC | Pre-Market Most Active for Nov 14, 2023 : THRX, AAPL, PLTR, SQQQ, AMD, TSLA, TQQQ, BMY, SE, ONON, NIO, KO | AAPL | https://www.nasdaq.com/articles/pre-market-most-active-for-nov-14-2023-%3A-thrx-aapl-pltr-sqqq-amd-tsla-tqqq-bmy-se-onon-nio | The NASDAQ 100 Pre-Market Indicator is up 239.61 to 15,722.4. The total Pre-Market volume is currently 32,805,643 shares traded.
The following are the most active stocks for the pre-market session:
Theseus Pharmaceuticals, Inc. (THRX) is +0.8598 at $3.00, with 3,197,940 shares traded.THRX is scheduled to provide an earnings report on 11/16/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -0.35 per share, which represents a -38 percent increase over the EPS one Year Ago
Apple Inc. (AAPL) is +0.5 at $185.30, with 2,727,093 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $1.59.
Palantir Technologies Inc. (PLTR) is +0.08 at $19.79, with 2,450,095 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024. The consensus EPS forecast is $0.04.
ProShares UltraPro Short QQQ (SQQQ) is -0.16 at $17.28, with 2,003,795 shares traded. This represents a 5.49% increase from its 52 Week Low.
Advanced Micro Devices, Inc. (AMD) is +0.3 at $117.09, with 1,811,711 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024. The consensus EPS forecast is $0.81.
Tesla, Inc. (TSLA) is +4.05 at $227.76, with 1,794,193 shares traded.
ProShares UltraPro QQQ (TQQQ) is +0.36 at $40.76, with 1,791,967 shares traded. This represents a 153.17% increase from its 52 Week Low.
Bristol-Myers Squibb Company (BMY) is -0.05 at $50.10, with 1,592,064 shares traded.
Sea Limited (SE) is -5.57 at $40.46, with 1,091,946 shares traded.
On Holding AG (ONON) is -1.61 at $24.95, with 1,005,077 shares traded.
NIO Inc. (NIO) is -0.08 at $7.14, with 869,640 shares traded.NIO is scheduled to provide an earnings report on 11/16/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -0.43 per share, which represents a -36 percent increase over the EPS one Year Ago
Coca-Cola Company (The) (KO) is -0.07 at $56.86, with 867,629 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2024. The consensus EPS forecast is $0.8.
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 +0.5 at $185.30, with 2,727,093 shares traded. Theseus Pharmaceuticals, Inc. (THRX) is +0.8598 at $3.00, with 3,197,940 shares traded.THRX is scheduled to provide an earnings report on 11/16/2023, for the fiscal quarter ending Sep2023. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. | Apple Inc. (AAPL) is +0.5 at $185.30, with 2,727,093 shares traded. The consensus earnings per share forecast is -0.35 per share, which represents a -38 percent increase over the EPS one Year Ago NIO Inc. (NIO) is -0.08 at $7.14, with 869,640 shares traded.NIO is scheduled to provide an earnings report on 11/16/2023, for the fiscal quarter ending Sep2023. | Apple Inc. (AAPL) is +0.5 at $185.30, with 2,727,093 shares traded. The consensus earnings per share forecast is -0.35 per share, which represents a -38 percent increase over the EPS one Year Ago NIO Inc. (NIO) is -0.08 at $7.14, with 869,640 shares traded.NIO is scheduled to provide an earnings report on 11/16/2023, for the fiscal quarter ending Sep2023. | Apple Inc. (AAPL) is +0.5 at $185.30, with 2,727,093 shares traded. The NASDAQ 100 Pre-Market Indicator is up 239.61 to 15,722.4. The consensus earnings per share forecast is -0.35 per share, which represents a -38 percent increase over the EPS one Year Ago |
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12553.0 | 2023-11-13 00:00:00 UTC | Should Invesco NASDAQ 100 ETF (QQQM) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-invesco-nasdaq-100-etf-qqqm-be-on-your-investing-radar-9 | Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Invesco NASDAQ 100 ETF (QQQM) is a passively managed exchange traded fund launched on 10/13/2020.
The fund is sponsored by Invesco. It has amassed assets over $15.33 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Large cap companies typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Also, growth stocks are a type of equity that carries more risk compared to others. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.15%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.63%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 50% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.06% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 49.11% of total assets under management.
Performance and Risk
QQQM seeks to match the performance of the NASDAQ-100 INDEX before fees and expenses. The NASDAQ-100 Index includes securities of 100 of the largest domestic and international nonfinancial companies listed on Nasdaq.
The ETF has added about 42.75% so far this year and was up about 34.74% in the last one year (as of 11/13/2023). In the past 52-week period, it has traded between $107 and $158.70.
The ETF has a beta of 1.16 and standard deviation of 23.58% for the trailing three-year period. With about 103 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco NASDAQ 100 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, QQQM is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $95.55 billion in assets, Invesco QQQ has $210.90 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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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 11.06% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Invesco NASDAQ 100 ETF (QQQM) is a passively managed exchange traded fund launched on 10/13/2020. | Click to get this free report Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.06% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Invesco NASDAQ 100 ETF (QQQM) is a passively managed exchange traded fund launched on 10/13/2020. | Click to get this free report Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.06% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives Invesco NASDAQ 100 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 11.06% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks. |
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12560.0 | 2023-11-12 00:00:00 UTC | The ‘iPhone For AI’: Betting Big On Artificial Intelligence | AAPL | https://www.nasdaq.com/articles/the-iphone-for-ai%3A-betting-big-on-artificial-intelligence | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Editor’s note: “The ‘iPhone For AI’: Betting Big On Artificial Intelligence” was previously published in October 2023. It has since been updated to include the most relevant information available.
Despite all the hype surrounding the internet throughout the 1990s and early 2000s, the internet didn’t really take off until Steve Jobs introduced the iPhone in 2007.
Until the iPhone’s release, the internet was something a few people used for work and even fewer used at home.
Then Apple’s (AAPL) iPhone put the power of the internet in the palm of our hand. And suddenly, the internet had gone mainstream, and internet companies started making money hand over fist.
Sure, internet stocks did fine before the iPhone’s launch. But as a group, internet stocks only rose 60% between the late 1990s and January 2007, when Jobs introduced the first iPhone.
Yet from January 2007 to today, internet stocks have soared more than 450%.
And the iPhone is what thrusted internet stocks into hyperdrive.
So, why is this important from where we sit? Well, I believe we’re about to get the iPhone for AI.
In many ways, AI parallels the internet. The two are both productivity game-changers. Like the internet, AI will allow us to do things faster, better, and cheaper.
Over the next 20 years, AI will unequivocally change society, just like the internet has over the past 20 years.
But even the internet didn’t go mainstream and truly change the world until the iPhone launched.
Similarly, AI won’t go mainstream and truly change the world until it has its own “iPhone moment.”
And we think that moment is coming very soon.
AI Is Swiftly Approaching Its ‘iPhone Moment’
OpenAI is arguably the top AI firm in the world. After all, it is the company that developed ChatGPT, the buzzy AI chatbot that kickstarted this whole AI Boom just under a year ago.
Now OpenAI is working to develop the iPhone for AI.
And it’s not going at it alone. In fact, it’s actually creating a global tech “super team” to build this AI iPhone.
For this mammoth project, the firm is teaming up with Jony Ive – the lead designer of the original iPhone – and Softbank CEO Masa Son – the world’s largest tech investor.
OpenAI is providing its AI technology. Ive is providing the design expertise. And Son is providing a whopping $1 billion in funding.
This is a tech super team embarking on a tech super project.
And the result will change the world. Thanks to the work of this super team, we’ll soon have a device that will put the power of AI in everyone’s hands, just as the iPhone did for the internet 15 years ago.
What will such a device look like?
No one knows – but we do have some clues.
Putting AI in the Palm of Our Hand
OpenAI’s biggest investor is tech titan Microsoft (MSFT). And both Microsoft and OpenAI are huge investors in another AI startup, Humane.
Humane was founded by two former Apple employees. And for years, the startup has been working to develop the next evolution of the iPhone.
Recently, Humane unveiled the culmination of its work: the Humane AI Pin.
Essentially, this wearable device – no bigger than a police badge – has all capabilities of an iPhone compacted into a shirt pin. There’s no screen, no keyboard, no headset or goggles.
It’s just a pin. And it uses cameras, sensors, projectors, and a microphone to interact with its wearer and their surroundings.
Now, details on this AI pin remain scant. But in Humane’s recent presentation, one of the firm’s founders used the pin to take a call, translate English to French, ask about the health specifications of a candy bar, and summarize the daily news.
Source: Humane
A full unveiling of the Humane AI Pin is expected in a month. Rumor has it that the company will also start selling the pin in November, too.
Is this pin the future? Will OpenAI’s “iPhone for AI” take a similar form?
We think so.
The Final Word
But we believe that what OpenAI builds with Jony Ive’s design input and Masa’s funding will be far superior.
Regardless, the future is sprinting toward us.
Some folks are calling AI a bubble – a fad or “hype train” just like NFTs were a few years ago.
Do so at your own peril.
History will be as unkind to those folks as it was to the people who laughed at the internet in the 1990s.
We’re confident that AI will change the world even more than the internet did.
And the pace of that change will skyrocket once OpenAI, Jony Ive, and Masa unveil the “iPhone for AI.”
To prepare for that pivotal moment, do everything you can to invest in the AI Boom before that vision becomes a reality.
And we think we have the best way for you to do just that.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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The post The ‘iPhone For AI’: Betting Big On Artificial Intelligence 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. | Then Apple’s (AAPL) iPhone put the power of the internet in the palm of our hand. For this mammoth project, the firm is teaming up with Jony Ive – the lead designer of the original iPhone – and Softbank CEO Masa Son – the world’s largest tech investor. But in Humane’s recent presentation, one of the firm’s founders used the pin to take a call, translate English to French, ask about the health specifications of a candy bar, and summarize the daily news. | Then Apple’s (AAPL) iPhone put the power of the internet in the palm of our hand. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Editor’s note: “The ‘iPhone For AI’: Betting Big On Artificial Intelligence” was previously published in October 2023. In fact, it’s actually creating a global tech “super team” to build this AI iPhone. | Then Apple’s (AAPL) iPhone put the power of the internet in the palm of our hand. AI Is Swiftly Approaching Its ‘iPhone Moment’ OpenAI is arguably the top AI firm in the world. Thanks to the work of this super team, we’ll soon have a device that will put the power of AI in everyone’s hands, just as the iPhone did for the internet 15 years ago. | Then Apple’s (AAPL) iPhone put the power of the internet in the palm of our hand. Well, I believe we’re about to get the iPhone for AI. Thanks to the work of this super team, we’ll soon have a device that will put the power of AI in everyone’s hands, just as the iPhone did for the internet 15 years ago. |
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12563.0 | 2023-11-11 00:00:00 UTC | Firing on All Cylinders Indeed | AAPL | https://www.nasdaq.com/articles/firing-on-all-cylinders-indeed | In this podcast, Motley Fool host Dylan Lewis and analysts Ron Gross and Matt Argersinger discuss:
Why interest rate and unemployment news helped stocks.
Starbucks' triple-shot growth plan, Apple's flat growth, and why Shopify is firing on all cylinders.
Huge reactions to earnings reports from DoorDash and Roku.
Match's struggle to hold on to singles.
Two stocks worth watching: WK Kellogg and Quest Diagnostics.
Economist Marc Robinson breaks down the negotiations between the United Auto Workers and automakers Ford, Stellantis, and General Motors.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Starbucks
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Starbucks wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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This video was recorded on Nov. 03, 2023.
Dylan Lewis: We've got the latest on three household names and three stocks that are down big, but might be poised for a turnaround. Motley Fool Money starts now. It's the Motley fool Money radio show. I'm Dylan Lewis. Joining me over the airwaves, it's Motley Fool senior analyst, Matt Argersinger, Ron Gross. Gentlemen, great to have you both with.
Ron Gross: How are you doing Dylan?
Dylan Lewis: We've got some big earnings to run through, but first we're going to take a snapshot of the big macro. Ron, we had a Fed meeting this week. We had jobs data this week, what did you see?
Ron Gross: It's been an interesting week, a lot of volatility. On Wednesday, the Fed unanimously easy for me to say, agreed to hold rates steady. As you will recall, that's following a string of 11 rate hikes, four in 2023, and Chair Jerome Powell said, getting inflation down to 2% has a "long way to go". Obviously, the investors, Wall Street are hearing higher longer and they don't typically like higher or longer, but toward the end of the week, we got some interesting data that caused treasury yields to back off and they had been very high, as high as since 2007, which is part of the cause for the weakness we're seeing in the market. We saw a weaker than expected jobs report come in. We saw wage inflation moderating. Two things that say, maybe the economy is cooling off, maybe the Fed is doing a good job in lowering our inflation rate, somewhere down closer to two. The unemployment rate ticked up a bit to 3.9%. Yields came down, stock market shot up later in the week, Thursday and Friday. Let's see what next week brings, but this week ended very strong.
Dylan Lewis: We saw some big time earnings results from some big time companies. We can get the earnings beat started and talk through some of those big reactions we saw Ron. Let's start with Starbucks. Shares up over 10% after the company reported earnings and revenue ahead of expectations. Matt, we joked earlier, I think maybe a couple of weeks ago, about the absurdity of the high priced Starbucks menu items. Are those double shot drinks doing the heavy lifting here?
Matt Argersinger: They are. The good news is yes, they are and Starbucks has been really able to pass along price increases, unlike a lot of other companies we'll probably talk about, but the good news is, it's coming from pol places. It's not just price increases, it's also coming from transactions. It hasn't felt really good to be a Starbucks shareholder lately. Going into the earnings report, you had a stock that's been mostly flat over the past three years. It's really underperformed the market. There's been uncertainty about who was going to be CEO and how long Howard Schultz would stay around, and of course, growth has stagnated, particularly in China, but here we go. Today it feels pretty good to be a shareholder. The Q4 results are really solid. Global, comparable store sales were up 8% and as I mentioned, it wasn't just average ticket, it was also transactions. It's not like Starbucks is seeing any drop off in customer traffic or transactions. We've seen a lot of companies report growth that's been totally based on price and not on volumes. Starbucks is winning on both ends. US comps were up 8%. China has been a little bit of struggle comps, there were up 5% and total revenue was up 11% to 9.4 billion. Probably the best part of the report in the Q4 was the operating margin which was up 300 basis points, earnings per share, up 31% to $1.06. All these figures were way ahead of a consensus. Finally the 90 day after rewards member is something I'd pay attention to. That number was up 14% in the US to 32.6 million members. Quite a strong finish to fiscal 2023 for Starbucks.
Dylan Lewis: Those are incredibly strong results and I know it's not all that Starbucks had for the Street this week. Their CEO Laxman Narasimhan unveiled the company's new long term strategy for the coffee chain. Matt, what's the plan?
Matt Argersinger: Yes, Narasimhan and the team held a special call with Starbucks shareholders. He outlined his new long term strategy and he's calling it, wait for it, the triple shot reinvention with two pumps. [LAUGHTER] This beverage order has five elements to it guys. One, elevating the brand. Two, strengthening and scaling the company's digital presence. Three, becoming truly global. Then here are the two pumps. We got one pump for unlocking efficiencies and a second pump for reinvigorating the partner culture. Don't have a lot of time to go into the details and context behind each of these, but there are a lot of investors who are probably wincing a bit, and I was certainly at the tortured coffee metaphor here, but they probably didn't wince at the company's guidance for fiscal 2024, so comps growth between 5 and 7%. Revenue growth between 10 12%. Earnings growth between 15 and 20%, and Narasimhan thinks those numbers are actually pretty sustainable for the next several years, not just in this new fiscal year. If Starbucks can meet these kinds of growth rates, I think shareholders are going to be feeling pretty good.
Ron Gross: I'd advocate for a third pump where we put the milk back out on the counter so I can put my own milk in my coffee once again, like we used to do pre-COVID.
Dylan Lewis: I would call that an efficiency gain, Ron. That's going to help through putting that milk out there. I'm 100% with you. I want to be able to dictate the color of my own coffee. We had results from Apple as well this week. Another company that needs no introduction, Ron. We just talked Starbucks results. The story there was some strength in China. Not exactly the case with Apple's results.
Ron Gross: No, really the opposite. Dylan, it ain't easy being a $2.7 trillion company. Why don't you try it sometime. A lot of stuff has to go right, and in this case, not everything is going well. Earnings were better than expected, and we'll talk about that in a second. Sales were disappointing, guidance was disappointing. Sales were down slightly, but this was the fourth consecutive quarter of declines. For market leading Apple, that's not what investors are looking to see. The iPhone business was up 2.8% for new iPhone 15 introduced in September, but all other categories basically showed weakness. Mac down 34%. iPad down 10%. Wearables down 3%. Only bright spot in addition to the iPhone was the service segment, which was up about 16%, that's Apple Care, iCloud storage, app store sales deals with Google. That was OK. That's actually the second largest segment now behind iPhone. It's important that that had some strength, but as you said, China, one of the bigger challenges. Apple reported its lowest revenue from the Greater China region since mid 2022. iPhone demand was strong, but Mac and iPad were very weak. Overall, China revenue fell 2.5%. Boiling all this down, you got some help from a lower tax rate, you got some help from the fact that they buy shares back, so shares outstanding were down. Earnings per share actually managed to grow pretty nicely at 13%. Not too bad. Company continues to return cash to shareholders, has $162 billion in the bank. Twenty-seven times forward earnings got to see if some growth folks, otherwise that starts to look pretty expensive.
Matt Argersinger: You hit that, the last point about valuation run and that's where I was going to go. Just if you looked at Apple entering the year, it was trading for around 21, 22 times earnings. A slight premium to the overall market, definitely always justified for something like Apple. But the stock is up 35% year to date. Even through these earnings, I didn't realize it had such a good year. Now, as you mentioned, about 27 times earnings feels like a premium valuation. Even Warren Buffett, who of course owns and loves Apple, is probably a little nervous about where the stock is trading. I notice Berkshire Hathaway was a steady buyer of the stock in last year and coming into the year, but he hasn't bought any shares over the last couple of quarters. I'm wondering if he's seeing the same valuation concerns that we are.
Ron Gross: It could be. A lot of the Talking Heads are focused on the fact that it's down 10, 11% from it's higher earlier in the year, but as you mentioned, still up 35% despite that pullback and selling rather richly at the moment. One of my biggest positions though, so I've got my fingers crossed. [laughs]
Dylan Lewis: Our final name for the big earnings wrap up, Shopify. The company's shares are up 25% this week after a strong earnings report pushed them higher. Matt, what is behind the big pop?
Matt Argersinger: Well yeah, hard to find anything not to like about Shopify results. Gross merchandise volume up 22% to 56.2 billion. That's a big number. The merchant solutions business which is the biggest revenue segment, it's where Shopify help sellers with payments, shipping, and working capital. Revenue there was up 24% and a big reason for that was Shopify payments. The gross payments volume grew to 32.8 billion and accounted for 58% of Shopify's gross merchandise volume. Their payments infrastructure is definitely gain an attraction within their customer base. You turn to subscription solutions, revenue there was up 29%, and part of the growth here was really about pricing. Shopify raised prices on its basic and premium plans and didn't note any meaningful drop-off in subscribers after doing that. Monthly recurring revenue was up 32%. Now, investors have gotten used to these growth rates on the top line, which are obviously still very impressive. But I think what's new with Shopify is just the profitability now. We know the company sold its logistics business to a partner over the summer, so taking all those operating and CapEx costs out of the equation has really boosted the company's cash flow. Operating income in the quarter was 122 million. That compares to an operating loss of 346 million a year ago. Free cash flow was 276 million and free cash flow margin was 16% and management noted that they expect that cash flow margin to remain in the high teens in the current quarter as well. This is a fast-growing company, but also a much more profitable company. I think that is what has investors excited. The only thing I would say is this is still a company that does a lot of stock-based compensation, over 100 million in the third quarter alone, so you have to take that free cash flow with a little grain of salt. Ron Shopify President Harley Finkelstein appeared on CNBC this week and I think he might owe you five bucks, because he said a company was firing on all cylinders, talking about the strong growth, the cost, discipline, and continuing to see some big brands coming over. I want to hear it from the man himself though. Do you agree with the assessment?
Ron Gross: I saw some of that interview and I agree that they certainly at the moment they're firing on all cylinders. He was very happy to be reporting those results to the interviewer for sure.
Dylan Lewis: Well, now you is your royalty, so it's great you go around. The show pays for itself. Coming up after the break, we've got one company riding the trend of convenience and a foul stock up 40% since reporting stay right here. This is Motley Fool Money.
Dylan Lewis: Welcome back to Motley Fool Money. I'm Dylan Lewis, Joined again over the airwaves by Matt Argersinger and Ron Gross. We're going to pick up right where we left off with earnings this time though, checking on three companies that have had a bit of a rough run over the past few years but might be showing some signs of life. Ron, first one up is DoorDash Company shares up nearly 20% after the leading food delivery company reported recent orders on the platform that we're hitting record levels. Based on the company's guidance, Ron seems like they're expecting some good times to continue.
Ron Gross: Yes, but stock's up 80% this year. Thirty-five billion dollar market gap for DoorDash. Does that sound right? Let's get into some of the numbers and we can discuss that they did post their strongest quarter since going public in 2020. Good for them. I am a customer, probably use it too often, so I'm with them. They projected better than expected growth and adjusted earnings for the current quarter. That's strong guidance as well. Part of the reason that we really saw the stock take off. Total order value on the app and total number of orders both rose 24% strong business, restaurants stayed strong, grocery business doubled. Revenue was up 27% as a result. Expenses were managed well and they managed to trim overall losses to 75 million. I will remind you it's a $35 billion market gap and they're trimming losses. They do have adjusted EBITDA dial. We play with some of the numbers and we see that it came in at 344 million, its strongest ever. It's a four fold increase over last year, 878 million in free cash flow on a trailing 12 month basis. Not profitable yet, but they are producing free cash flow if we do some adjusting, 35 times adjusted EBITDA though here. They've got to grow into this value in a humongous way. Can they do it? That's going to take some time I think, but it'll be fun to watch.
Dylan Lewis: Yeah, we might help them grow into that valuation. Ron is this idea of the macro trend of convenience. CEO Tony Ju has talked about that. It sounds like you're helping them out with some of those orders yourself, but generally the gist is consumers seem pretty happy to sit at home and if they can find some of those categories like grocery and expand beyond conventional food delivery, there might be something there for them.
Ron Gross: I think so. I think this is a business and I think it will be a profitable business if expenses are controlled appropriately. I just don't know if a 35 billion market cap is appropriate. Time will tell.
Dylan Lewis: We have a rough week for match shareholders. The online dating company down over 10% after reporting third-quarter earnings. Matt, it seemed like the key area of concern here was user growth trends especially with tender.
Matt Argersinger: That's the story. If you compare the stock chart of Match group with Zoom over the past five years, you'll see almost what looks like a perfect correlation. Like Zoom, Match was that perfect pandemic stock. People stuck at home. There wasn't a opportunities for social interactions. Match's services really boomed and the stock really behaved like that for a year or so. But now stock is down more than 80% of its high. It's close to a seven year low. I couldn't believe it when I looked at it. I think the results will tell you that unlike a Starbucks or a Shopify, subscribers here tend to be pretty price sensitive. Match group has raised or as management says, optimize pricing over the past year for many of its services, including tender, and I think that's helped revenue in the short term. But subscriber numbers are way down across the board. Paying members fell 800,000-15.7 million, in the third quarter. Tinder was the big loser, paying members there fell 6%, and revenue guidance for the current quarters was below management's prior guidance. All that taken together really hit the stock hard. I think this is somewhat of a network effects type of business. I'm not a user, I can't confirm that. But I think when you start losing subscribers in a business like this, the momentum of the business can really fall off. On the positive side, margins are higher, that's what the price hikes are doing. The business is generating a lot of free cash, but I think unless they can get subscriber growth going again. I don't know, there might be a lower floor for the stock.
Dylan Lewis: We'll wrap with another name in convenience, Roku. Shares of the streaming and ad company up 40%, four 0% following earning. Ron, this report felt like a company that had some good news and desperately needed some good news.
Ron Gross: It really did. Times have been tough here and there, but up 100% this year, the stock. It's getting some love for sure from investors. This was a strong report with signs of an advertising rebound and cost cutting. Helping the bottom line and future guidance, which I think really has got investors excited. Revenue was up 20%, platform revenue, which includes their ad sales and their distribution deals, and the Roku channel was up 18%, Roku added 2.3 million active accounts in the quarter. That's up 16% revenue per active user was down 7% year over year, but it was actually up 1% on a sequential basis. Moving in the right direction, we've got to get that number moving a little bit more quickly, more strongly. Gross margins narrowed a bit. Device margin growth was offset by narrowing platform gross margins, led to an adjusted EBITDA number. Again, adjusted, we have to play with some of the numbers to get this of $43 billion positive. Management said it remains cautious and certain amid an uncertain macro environment and an uneven ad market recovery. But they did guide to adjusted eta of $10 million for the fourth quarter. This is an $11 billion market cap company. Not putting up great numbers but maybe they're on track right now, they remain committed to positive adjusted EBITDA for full year 2024.
Dylan Lewis: Ron, I look at this name and some of the others and I think it's possible that we might be seeing some bottoming with some of these big growth text stock names. Is that what you're seeing here?
Ron Gross: Bottoming, it's interesting though, in the current interest rates environment, you've got to put up some strong numbers, still support some of these market caps. They're still pretty high. Just not as high as they were.
Dylan Lewis: Ron and Matt, we'll see you guys a little bit later in the show. Up next we've got a breakdown of the winds the United Auto workers notched in their deals with Ford, Stellantis, and GM. Stay right here. You're listening to Motley Fool Money
Ron Gross:Well, now Lord, Mr. Ford, I just wish that you could see what your simple horseless carriage has become.
Dylan Lewis: Welcome back to Motley Fool Money. I'm Dylan Lewis. Detroit might be able to breathe a sigh of relief as of weeks end, Ford, GM, and Stellantis all have established tentative deals with the United Auto Workers Union. The details are down and now it's up to union members to accept the contracts. We went to economist Marc Robinson, who worked for GM for over three decades, advising on negotiations, labor, and strategy for a breakdown on how the deals came together and lessons from these negotiations. Marc, we spoke with you in early October, and at the time, the conversation with the UAW and the automakers was these two sides and how they are angling in their negotiations. Very different story now.
Last week, we saw that there was a deal struck with Ford. We have news that there's a deal with Stellantis and GM. What happened over the last couple of weeks since we last checked in with you?
Marc Robinson: Well, they went through their escalation strategy, which they've been telegraphing for a while. They stopped firing shots across the bow and walked out of a negotiation session with Ford a couple of weeks ago, and struck Ford's most profitable plant, its Kentucky Truck Plant. They then waited actually two weeks to strike GM and Stellantis as most profitable plant. The day after they struck the GM's most profitable plant, they announced a tentative agreement with Ford. Some of this was kabuki, it was show, Shawn Fain had to demonstrate to its members that they had, as he put it on Sunday, gotten every last dime that was on the table. Looking at the deal, he got a lot of dimes. He got so many major advances for the members, but despite this extraordinary agreement, he still had to be and is today still concerned about ratification.
Dylan Lewis: Marc, let's talk a little bit about some of the advances that you were talking about there. I think if you're looking at the UAW side, from my perspective, it seems like the major wins that we're seeing based on what we know about these deals are significant pay raises, the return of cost of living adjustments, family relief. Are there some other things that really jump out to you as big wins for the UAW?
Marc Robinson: Yes. It was not just that they got significant wage increases overall. They essentially got rid of the two tier system, and it was actually multi tier system. The Detroit 3 had agreed, essentially, over the years, to bring some jobs back in or keep some plants open basically under concessions that the union made about wages and work rules. They just undid that. If I were the companies, I wouldn't expect that kind of possibility to be out there in the future, and that they may have some remorse about the decisions they made back then. They also covered these, in some cases, plants that didn't even exist yet. These joint venture battery plants that the Detroit 3 had in unprecedented fashion, set up with Korean battery suppliers, Samsung and LG Chem. Even though they weren't under the national agreement, in theory, the companies didn't even have to talk about them with the UAW as part of these national negotiations. They agreed to bring them under the national contract at assembly plant wages. In the case of Ford and Stellantis, who hadn't even opened up their plants yet, they agreed through essentially a sleight of hand to instantly have them be unionized and have them be under again at the national agreement wages. That was a massive win for the UAW, it's a big strategic defeat for the Detroit automakers. They may end up even rethinking their long-term battery strategy as a result of this.
Dylan Lewis: Marc, it seems like this was generally something that led to a lot of advances for the UAW. From the automaker perspective, are there wins? Because so much of the coverage and the press that I see on this is basically the UAW got a lot of what they were looking for.
Marc Robinson: I can't see any major wins that the automakers got. The only thing they were able to not agree to some things that the UAW demanded, like defined benefit pensions for new or higher workers, and big increases in existing pensions, and 32-hour work week, which the union I think never was very serious about. My rough farmers math is that each of the companies has another two billion dollars a year in labor cost by the end of the agreement. That's more than 33% increase in their labor costs, maybe up to 40%. That's a massive hit. The other thing is that, Ford, for example, was very proud of its non-confrontational relationship with the union and they viewed that as a competitive advantage over General Motors. Well, not only did Ford get struck, which is already a defeat for that strategy, but Shawn Fain went out of his way to diss the chairman and the CEO of Ford. He stood up Bill Ford, the chairman of the board, who was coming in for a special conversation with him in advance of the strike. He walked out 10 minutes into an important negotiation session and struck for his most profitable plan. That's not gentlemanly behavior, which I'm sure Shawn Fain would be perfectly comfortable being ungentlemanly. But there are hard feelings in the companies about this strike.
Dylan Lewis: You mentioned Shawn Fain there and the approach from the UAW with this strike was new and different, and Shawn Fain is a very new and different union leader. Do you think that contributed to the success of the negotiations?
Marc Robinson: Yes. I think that his style and aggressiveness contributed. There was a very interesting story in the Wall Street Journal about the 330 something advisors that Shawn Fain hired, not union members, I mean they came in as staffers. The combination of that fresh thinking and more strategic thinking and more nimble communications clearly had an impact on the strike. I think that some of the negotiation tactics were similar to things I've heard about for how Donald Trump negotiates. For example, GM, before it signed the tentative agreement, the UAW escalated and struck yet another plant just before the deal. That couldn't have been because GM was unwilling to sign the pattern. GM would have agreed to the pattern economics. A week earlier hey were said they were very close to a deal. What I think happened is that the union negotiators came into that session trying to get all three deals done at once. Again, there's no tradition around that. They then said, we want more here and we want more there. They had already agreed to not take more, but they grabbed it and that led to more confrontation, and probably more concessions from the Detroit three. But it's not a way they are used to negotiating and it may have some long term consequences for how they approach the union in the future.
Dylan Lewis: Do you think that there are tactics that other labor groups and maybe other industries might borrow from with what the UAW did?
Marc Robinson: Shawn Fain is hoping that in May 1, 2028, there are many union contracts that expire on the same day. He wants to call a general strike. He wants to change the way unions are perceived and bargain in America. Not sure he'll succeed, but definitely he wants to be leading a revitalized labor movement. His advisors, there's apparently a playbook that they published that they more or less followed. My guess is other unions will be downloading copies of that playbook.
Dylan Lewis: You have a C-Suite newsletter that you write. Right after the Ford deal was announced, you wrote that the gains were incredibly impressive. This is a record contract by any measure. However, it is something that still needs to be ratified. This is what we need to put to an end here. Are there reasons to worry about that?
Marc Robinson: Absolutely. Shawn Fain has raised expectations extraordinarily high. That may be some of the downside of his tactics is that the companies basically knew that the workers were going to be had very high expectations, and they wouldn't be able to get out of this with a cheaper contract just by waiting a couple more weeks. Just recently, the union members rejected a proposed agreement, a tentative agreement at Mack Trucks. Now it wasn't nearly as rich as the Detroit 3 agreement, which is in fact part of his problem. In 2015, what's now slants rejected a national agreement. There is history of it, there's a risk of it. One thing that Fain is clearly trying to do is to create the sense that the strike is over with his members by getting, reaching tentative agreements at all three, and ratifying all three and calling the workers back to work before ratification. He's trying to create a fait accompli, he may succeed, but there's a risk that he won't and if he doesn't, if there's a failed ratification at any one of the three, it's chaos.
Dylan Lewis: You're a game theorist and last time we had Jan, you were talking about how these are economic conversations and financial conversations, certainly for the union workers, but also, there is political posturing that goes on here and, right after the Ford deal was announced in principle, the company revealed that they expect it will add about $850 per vehicle to their manufacturing costs. For our audience as an investing audience is a financial disclosure. But I'm curious, is that also political posturing as we start thinking about things like ratification and the relationship between these automakers and their workers going forward?
Marc Robinson: Yes. They're also coming out with statements about how much the strike costs them. I would take those statements with a grain of salt because there have been very few people who have walked away from a dealership not having a car or truck that they wanted even with these strikes. Seems as though they could probably, with a little bit of overtime, make up for a large fraction of whatever they lost in a production during the strike. I think the accounting may allow them to show smaller earnings impact down the road. Then the headline figure on the cost of the strike would suggest.
Dylan Lewis: Marc, we're certainly not rooting for any more labor disputes or for people to be on the sidelines not working. But if that's the case, we'll be coming back to you and talking again soon. I really appreciate your time.
Marc Robinson: Pleasure talking to you.
Dylan Lewis: Listeners, you can catch Marc's latest writings at C-Suite on substack, and if you're interested in stock ideas, the Motley Fool has you covered there too, especially if you're interested in dividends. Our analysts at Motley Fool stock advisor put together a list of five quality dividend payers that are also recommendations in our stock advisor service. This report is free to you with no purchase necessary. You just need to go to fool.com/dividends and we'll email it directly to your inbox. That's fool.com/dividends with an S and we've got more stock. Talk ahead coming up after the break. Matt Argersinger and Ron Gross return with a couple stocks on their radar. Stay right here. You're listening to Motley Fool Money.
Dylan Lewis: As always, people on the program may have interests in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy or sell anything based solely on what you hear. I'm Bill Lewis, joined again by Matt Argersinger and Ron Gross. Let's get over to stocks on our radar. Our man behind the glass, Rick Engdahl, is going to hit you with a question for our radar stocks round. Ron, you're up first. What are you looking at this week?
Ron Gross: This is an interesting one that caught my eye from our friends over at our microcap service firecrackers and it's WK, Kellogg, KLG. It's the number two seller of ready to eat cereal in America, Number 1 in Canada and the Caribbean and owns nine of the top 20 brands. That's Frosted Flakes, Rice Krispies, Raisin Bran, Fruit Loops, Frosted Mini-Wheats, and Special K. I happen to love cereal. Don't eat enough, but I should. It's delicious. It's still the top breakfast choice for kids. But there's a lot of competition out there from healthier food, so there has been some weakness here. It was recently spun off from the parent company, which is now known as Kellanova ticker, symbol K. They hold onto some of the international brands and they kept a rice crispy treat business that was smart because they are delicious. But we're left with this small microcap company, Kellogg. They've definitely had some problems. The shares are off significantly since it went public. That could create an opportunity. It's only a $900 million market cap company. So if they can put up add numbers of what they're hoping, which could be up to 400 million annually for a $900 million market cap company, this could be very interesting. It's a little dicey though, because it is in a category that is showing declines and we really don't see any significant catalyst from a business perspective in the foreseeable future.
Dylan Lewis: Rick, sounds like we've got a pure play cereal company here. What's your question?
Rick Engdahl: Yeah, I can't imagine a world without fruit loops that's clear. [laughs] Ron.
Ron Gross: Yes.
Rick Engdahl: I know the answer, but cereal first or milk first?
Ron Gross: Definitely cereal first, right?
Rick Engdahl: I've heard arguments the other way and I just don't believe it's. I just wanted to see if there was.
Dylan Lewis: You want the milk to water fall down over the cereal so that you don't want to dry stuff on top. I mean, we're all sensible people here. We know how this works.
Ron Gross: Not anarchy. [laughs]
Dylan Lewis: Matt, what is on your radar this week?
Matt Argersinger: I'm looking at Quest Diagnostics, tickers, DGX. It's a leading diagnostics and blood testing company. Think of Theranos, except legal and ethical. It pretty much operates at duopoly with Lab Corp, so most hospitals and clinics will use one or the other or both to outsource blood tests. Obviously quest revenue really soared in 2020, 2021 because of COVID 19 testing. No surprise that's fallen off big time. In fact, their COVID 19 testing revenue fell 92% year over year in the third quarter. But what's been great about the company and the results is just how well their base or non COVID testing business has held up volumes there were up almost 6% in the quarter that was well ahead of what management was expecting. Because of that resilience, management keeps raising full year guidance. Earnings per share are not expected to be between $8.65 and $8.75 for the full year. They're also expecting to generate at least 900 million in free cash flow. This is a really cash flow heavy business. Management tends to use that free cash flow to either make acquisitions pay a steady dividend, which they do, and buy back shares, and I think at less than 16 times earnings, it trades for a below market multiple. Yet it's a very strong cash flowing business with a really good competitive position, so I like where quest diagnostics is right now.
Dylan Lewis: Rick, a question about quest.
Rick Engdahl: Yes, but, [laughs] so in my extensive research for this segment here, I went to the website and the first thing that popped up was a photograph of a very healthy woman working on a laptop while doing a plank and smiling and I'm wondering, is this company just over promising? [laughs]
Dylan Lewis: It could be, but it's, it's aspirational and it's just showing you, what we're all hoping to achieve in life.
Rick Engdahl: Yeah.
Dylan Lewis: It's a lifestyle brand, Rick.
Rick Engdahl: Exactly.
Dylan Lewis: Which one's going on your watch list?
Rick Engdahl: I think I got to go with the fruit loops.
Dylan Lewis: Got to. How can you turn that down?
Rick Engdahl: I might do a plank while I'm meeting them.
Dylan Lewis: That's good balance. Rick, thanks for weighing in on our radar stocks. Matt and Ron thank you for bringing them to us. That's gonna do it for this week's Smart Fool Money radio show. Thanks for listening. We'll catch you next time.
Dylan Lewis has positions in Match Group and Shopify. Matthew Argersinger has positions in Match Group, Quest Diagnostics, Roku, Shopify, Starbucks, and Zoom Video Communications and has the following options: short November 2023 $130 puts on Quest Diagnostics. Rick Engdahl has positions in Apple, Berkshire Hathaway, Match Group, Roku, Shopify, Starbucks, and Zoom Video Communications. Ron Gross has positions in Apple, Berkshire Hathaway, and Starbucks. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, DoorDash, Match Group, Roku, Shopify, Starbucks, and Zoom Video Communications. The Motley Fool recommends General Motors, Quest Diagnostics, Stellantis, and WK Kellogg and recommends the following options: long January 2025 $25 calls on General Motors. 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. | Ron Shopify President Harley Finkelstein appeared on CNBC this week and I think he might owe you five bucks, because he said a company was firing on all cylinders, talking about the strong growth, the cost, discipline, and continuing to see some big brands coming over. Management tends to use that free cash flow to either make acquisitions pay a steady dividend, which they do, and buy back shares, and I think at less than 16 times earnings, it trades for a below market multiple. Rick Engdahl: Yes, but, [laughs] so in my extensive research for this segment here, I went to the website and the first thing that popped up was a photograph of a very healthy woman working on a laptop while doing a plank and smiling and I'm wondering, is this company just over promising? | In this podcast, Motley Fool host Dylan Lewis and analysts Ron Gross and Matt Argersinger discuss: Why interest rate and unemployment news helped stocks. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, DoorDash, Match Group, Roku, Shopify, Starbucks, and Zoom Video Communications. The Motley Fool recommends General Motors, Quest Diagnostics, Stellantis, and WK Kellogg and recommends the following options: long January 2025 $25 calls on General Motors. | In this podcast, Motley Fool host Dylan Lewis and analysts Ron Gross and Matt Argersinger discuss: Why interest rate and unemployment news helped stocks. Dylan Lewis: We saw some big time earnings results from some big time companies. Dylan Lewis: As always, people on the program may have interests in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy or sell anything based solely on what you hear. | Dylan Lewis: We saw some big time earnings results from some big time companies. Ron Gross: Yes, but stock's up 80% this year. Dylan Lewis: Ron and Matt, we'll see you guys a little bit later in the show. |
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12583.0 | 2023-11-10 00:00:00 UTC | Nearly Half of Warren Buffett's More Than $6 Billion in Annual Dividend Income Comes From Just 3 Stocks | AAPL | https://www.nasdaq.com/articles/nearly-half-of-warren-buffetts-more-than-%246-billion-in-annual-dividend-income-comes-from | For nearly six decades, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been dazzling Wall Street and everyday investors with his investing prowess. Even with an occasional bad trade mixed in, the Oracle of Omaha has delivered an aggregate return of better than 4,300,000% for his company's Class A shares (BRK.A) spanning a little over 58 years.
What's great about Buffett's success is his willingness to share his investment philosophy. His "recipe" often involves buying brand-name companies with sustained moats and trusted management teams, and hanging on these stakes for the long haul.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
But what's commonly overlooked about Buffett's investment portfolio is his focus on dividend stocks and portfolio concentration. Even though the Oracle of Omaha and his investing lieutenants are overseeing a $343 billion portfolio that has stakes in over 50 securities, just a handful of these businesses account for the bulk of Berkshire's invested assets -- as well as its dividend income.
Over the next year, Warren Buffett and his team are expected to oversee the collection of more than $6 billion in dividend income. However, nearly half of this amount ($2.83 billion) will come from just three stocks.
Bank of America: $991,537,926 in annual dividend income
The Berkshire Hathaway holding that's bringing home more proverbial bacon for Warren Buffett and his team than any other stock is Bank of America (NYSE: BAC), which is commonly referred to as "BofA." The more than 1 billion shares of BofA held by Buffett's company are expected to produce north of $991 million in dividend income over the coming 12 months.
There's, arguably, no industry the Oracle of Omaha is more knowledgeable about than banking. That's probably why Bank of America is Berkshire's second-largest holding by market cap.
What makes bank stocks so special in Buffett's eyes is their ability to use time to their advantage. Even though financial stocks are cyclical and therefore exposed to higher loan losses and credit delinquencies during recessions, economic downturns tend to be short-lived. By comparison, the U.S. economy tends to expand for multiple years at a time, if not a full decade. Banks like BofA are able to take advantage of these long-winded periods of expansion by growing their loan portfolios and asset management segments.
The factor that sets Bank of America apart from its peers is the company's interest rate sensitivity. Changes in interest rates will increase or lower BofA's net interest income more than any other large U.S. bank. With the Federal Reserve raising its federal funds rate at the fastest pace in four decades to tackle historically high inflation, Bank of America has been a prime beneficiary. This rate-hiking cycle has added billions in net interest income each quarter, and the Fed doesn't appear to be particularly close to lowering rates anytime soon.
Credit should also be given to Bank of America's technology investments. As of the end of September 2023, just shy of three-quarters of its customers were banking online or via mobile app. Digital transactions and online loan sales are considerably less costly for banks than in-person or phone-based interactions. As consumers shift more of their banking to digital channels, BofA has the luxury of consolidating some of its branches and reducing its expenses.
Occidental Petroleum: $964,196,739 in annual dividend income (includes preferred stock dividends)
A second Warren Buffett stock that's generating an absolute boatload of annual dividend income is energy stock Occidental Petroleum (NYSE: OXY). Based on the more than 228 million shares of Occidental common stock owned by Berkshire Hathaway, the company's $0.72 base annual payout equates to about $164.2 million in annual income.
However, Buffett's company also owns $10 billion worth of Occidental preferred stock that yields 8% annually. Berkshire received this preferred stock (along with warrants for common shares of Occidental) in exchange for handing over $10 billion that helped facilitate Occidental Petroleum's acquisition of Anadarko in 2019. Collectively, Berkshire is netting more than $964 million in annual income from Occidental.
The core catalyst for this sizable investment is the expectation that the spot price for crude oil will rise. Fueling this thesis is multiple years of capital underinvestment by energy majors during the COVID-19 pandemic. When coupled with Russia's invasion of Ukraine and the uncertainty this invasion creates for Europe's energy supply needs, there's a strong possibility of global crude oil supply constraints for years to come. Tight supply should provide an upward lift on the spot price of crude oil.
Despite being an integrated energy company that operates downstream chemical plants, Occidental derives most of its revenue from the drilling side of the equation. In other words, Occidental is something of a leveraged play among integrated operators, based on the spot price of crude oil. If the price rises, Occidental should disproportionately benefit relative to its peers. But if it declines, the opposite is true.
The other thing that's noteworthy about this investment is that Occidental is carrying around quite a bit of net debt (nearly $19.7 billion). The Oracle of Omaha typically invests in businesses that have pristine balance sheets and plenty of financial flexibility. That isn't the case with Occidental. It'll require a sustained high spot price for crude oil to continue reducing its outstanding debt.
Image source: Apple.
Apple: $878,937,967 in annual dividend income
The third Buffett stock that collectively, with Bank of America and Occidental Petroleum, accounts for nearly half of Berkshire Hathaway's annual dividend income is tech stock Apple (NASDAQ: AAPL).
By itself, Apple represents more than 47% of Berkshire's $343 billion in invested assets. Perhaps it's no surprise that the nearly 915.6 million shares of Apple owned by the Oracle of Omaha's company are yielding almost $879 million in annual dividend income. Given Apple's mammoth operating cash flow, there's a good chance its base annual payout will head even higher over time.
Apple's primary catalyst has long been its innovation. The advent of the iPhone has put Apple on the leading edge of smartphone innovation for more than a decade. Since introducing a 5G-capable version of the iPhone during the fourth quarter of 2020, Apple has maintained around half (if not more) of the U.S. smartphone market share.
The next step in Apple's evolution is its ongoing development as a platforms company. CEO Tim Cook is spearheading this transition that emphasizes subscription services. The benefit of a subscription-driven segment is consistent operating cash flow, a higher long-term operating margin, and eventually less revenue volatility associated with major iPhone upgrade cycles.
But the primary reason Warren Buffett is so infatuated with Apple, which he's referred to as "better business than any we own," might be its capital-return program. On top of having the second-largest nominal-dollar dividend in the U.S., behind only Microsoft, Apple has repurchased more than $600 billion worth of its common stock since kicking off its buyback program 10 years ago. These repurchases are steadily increasing Berkshire's stake in Apple over time.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Microsoft. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple: $878,937,967 in annual dividend income The third Buffett stock that collectively, with Bank of America and Occidental Petroleum, accounts for nearly half of Berkshire Hathaway's annual dividend income is tech stock Apple (NASDAQ: AAPL). The more than 1 billion shares of BofA held by Buffett's company are expected to produce north of $991 million in dividend income over the coming 12 months. This rate-hiking cycle has added billions in net interest income each quarter, and the Fed doesn't appear to be particularly close to lowering rates anytime soon. | Apple: $878,937,967 in annual dividend income The third Buffett stock that collectively, with Bank of America and Occidental Petroleum, accounts for nearly half of Berkshire Hathaway's annual dividend income is tech stock Apple (NASDAQ: AAPL). Occidental Petroleum: $964,196,739 in annual dividend income (includes preferred stock dividends) A second Warren Buffett stock that's generating an absolute boatload of annual dividend income is energy stock Occidental Petroleum (NYSE: OXY). Based on the more than 228 million shares of Occidental common stock owned by Berkshire Hathaway, the company's $0.72 base annual payout equates to about $164.2 million in annual income. | Apple: $878,937,967 in annual dividend income The third Buffett stock that collectively, with Bank of America and Occidental Petroleum, accounts for nearly half of Berkshire Hathaway's annual dividend income is tech stock Apple (NASDAQ: AAPL). Bank of America: $991,537,926 in annual dividend income The Berkshire Hathaway holding that's bringing home more proverbial bacon for Warren Buffett and his team than any other stock is Bank of America (NYSE: BAC), which is commonly referred to as "BofA." Occidental Petroleum: $964,196,739 in annual dividend income (includes preferred stock dividends) A second Warren Buffett stock that's generating an absolute boatload of annual dividend income is energy stock Occidental Petroleum (NYSE: OXY). | Apple: $878,937,967 in annual dividend income The third Buffett stock that collectively, with Bank of America and Occidental Petroleum, accounts for nearly half of Berkshire Hathaway's annual dividend income is tech stock Apple (NASDAQ: AAPL). Even though the Oracle of Omaha and his investing lieutenants are overseeing a $343 billion portfolio that has stakes in over 50 securities, just a handful of these businesses account for the bulk of Berkshire's invested assets -- as well as its dividend income. Bank of America: $991,537,926 in annual dividend income The Berkshire Hathaway holding that's bringing home more proverbial bacon for Warren Buffett and his team than any other stock is Bank of America (NYSE: BAC), which is commonly referred to as "BofA." |
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12591.0 | 2023-11-09 00:00:00 UTC | 3 Tech Stocks to Buy in the ‘Green Zone’ | AAPL | https://www.nasdaq.com/articles/3-tech-stocks-to-buy-in-the-green-zone | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With top names in the tech sector rallying lately, you may be curious to know which are the tech stocks to buy.
One way to get started is through TradeSmith. TradeSmith offers investors valuable tools for determining which stocks to buy. A good example is its Health Indicator feature. This comprehensive indicator provides an overall picture of a stock’s current health.
Using this metric, you can quickly find potential opportunities to explore. Broken down into three “zones” (green, yellow, and red), you’ll have a general idea about whether it’s best to be bullish, bearish, or neutral on a particular stock.
As you may have guessed, stocks in the “Green Zone” are performing well, with little indication that the trend is on the verge of shifting.
A stock in the “Yellow Zone” has corrected by more than 50% of its volatility quotient (VQ), a proprietary TradeSmith metric that helps measure a stock’s risk. When a stock in your portfolio goes from green to yellow, it may be a good time to reassess whether to maintain the position.
Stocks entering the “Red Zone” have corrected by more than their calculated volatility quotient. VQ can be useful when adding stop losses to your positions. View any move into the “Red Zone” as a warning sign to exit your position for now.
These three tech stocks to buy are currently in the “Green Zone.”
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL), one of the top tech stocks to buy, recently became one of the “Green Zone” stocks, having entered the “Green Zone” just over a week ago. Shares in the iPhone maker initially stumbled at the start of November, following the release of results for the quarter ending Sept. 30, 2023.
Mostly, due to the company’s underwhelming guidance for the current quarter. However, since then, AAPL stock has gotten back on an upward trajectory, suggesting investors are focusing now more on the tech giant’s solid results, and the prospect of demand for the company’s products and services continuing to bounce back.
As CEO Tim Cook discussed in the earnings release, Apple reported record iPhone and Services sales for the quarter. Earnings per share jumped 13% year over year, and results came in ahead of sell-side forecasts. TradeSmith’s volatility quotient for AAPL is 22.3%, which makes it a medium risk stock.
Salesforce (CRM)
Source: Sundry Photography / Shutterstock.com
Salesforce (NYSE:CRM) has been in the “Green Zone” for over five months. Like other tech stocks, shares in the enterprise software provider pulled back slightly during the late summer and early fall, as macroeconomic concerns like high interest rates and a possible 2024 recession weighed on the markets.
Yet with investor sentiment bouncing back, CRM stock has begun climbing back toward its 52-week high. Salesforce’s next earnings results may bode well for shares from here. Why? Although analysts have already upped their forecasts for last quarter, the company could still report an earnings topper.
If Salesforce beats these forecasts, provides an upward revision to full-year guidance, or unveils more details about its efforts to capitalize on the generative AI trends, current price trends may continue following earnings. TradeSmith’s volatility quotient for CRM is 28.47%, which makes it a medium risk stock.
Yelp (YELP)
Source: BigTunaOnline / Shutterstock.com
Yelp (NYSE:YELP) has been in the “Green Zone” for over five months. So far this year, shares in the consumer review portal operator have performed strongly, which has made it one of the tech stocks to buy. This comes following an extended period of underperformance during 2021 and 2022.
What’s been driving this strong performance for YELP stock in 2023? While at first zooming higher after the emergence of activist investor involvement in the stock back in May, the reporting of strong quarterly results and updates to outlook have helped to extend this rally.
Even as YELP has rallied by roughly 60% year to date, given improving results, a relatively low valuation (13 times forward earnings), and the continued push from the above-mentioned activist to sell the company, present trends could continue. TradeSmith’s volatility quotient for YELP is 31.66%, which makes it a high risk stock.
The TradeSmith Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
TradeSmith’s mission is to put easy-to-use, technology-based tools into the hands of individual, self-directed investors. TradeSmith began as a simple way to track portfolios using trailing stops and has evolved to become a powerful suite of risk-management and portfolio analysis tools.
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The post 3 Tech Stocks to Buy in the ‘Green Zone’ 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. | These three tech stocks to buy are currently in the “Green Zone.” Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL), one of the top tech stocks to buy, recently became one of the “Green Zone” stocks, having entered the “Green Zone” just over a week ago. However, since then, AAPL stock has gotten back on an upward trajectory, suggesting investors are focusing now more on the tech giant’s solid results, and the prospect of demand for the company’s products and services continuing to bounce back. TradeSmith’s volatility quotient for AAPL is 22.3%, which makes it a medium risk stock. | These three tech stocks to buy are currently in the “Green Zone.” Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL), one of the top tech stocks to buy, recently became one of the “Green Zone” stocks, having entered the “Green Zone” just over a week ago. However, since then, AAPL stock has gotten back on an upward trajectory, suggesting investors are focusing now more on the tech giant’s solid results, and the prospect of demand for the company’s products and services continuing to bounce back. TradeSmith’s volatility quotient for AAPL is 22.3%, which makes it a medium risk stock. | These three tech stocks to buy are currently in the “Green Zone.” Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL), one of the top tech stocks to buy, recently became one of the “Green Zone” stocks, having entered the “Green Zone” just over a week ago. However, since then, AAPL stock has gotten back on an upward trajectory, suggesting investors are focusing now more on the tech giant’s solid results, and the prospect of demand for the company’s products and services continuing to bounce back. TradeSmith’s volatility quotient for AAPL is 22.3%, which makes it a medium risk stock. | These three tech stocks to buy are currently in the “Green Zone.” Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL), one of the top tech stocks to buy, recently became one of the “Green Zone” stocks, having entered the “Green Zone” just over a week ago. However, since then, AAPL stock has gotten back on an upward trajectory, suggesting investors are focusing now more on the tech giant’s solid results, and the prospect of demand for the company’s products and services continuing to bounce back. TradeSmith’s volatility quotient for AAPL is 22.3%, which makes it a medium risk stock. |
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12629.0 | 2023-11-08 00:00:00 UTC | AMD and Intel Respond to CPU Competitors Qualcomm and Apple | AAPL | https://www.nasdaq.com/articles/amd-and-intel-respond-to-cpu-competitors-qualcomm-and-apple | In today's video, I discuss recent CPU updates affecting Advanced Micro Devices (NASDAQ: AMD), Intel (NASDAQ: INTC), Qualcomm (NASDAQ: QCOM), and Apple (NASDAQ: AAPL). 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 Nov. 7, 2023. The video was published on Nov. 8, 2023.
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Jose Najarro has positions in Advanced Micro Devices and Qualcomm. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, and Qualcomm. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In today's video, I discuss recent CPU updates affecting Advanced Micro Devices (NASDAQ: AMD), Intel (NASDAQ: INTC), Qualcomm (NASDAQ: QCOM), and Apple (NASDAQ: AAPL). Check out the short video to learn more, consider subscribing, and click the special offer link below. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Advanced Micro Devices wasn't one of them! | In today's video, I discuss recent CPU updates affecting Advanced Micro Devices (NASDAQ: AMD), Intel (NASDAQ: INTC), Qualcomm (NASDAQ: QCOM), and Apple (NASDAQ: AAPL). The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, and Qualcomm. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. | In today's video, I discuss recent CPU updates affecting Advanced Micro Devices (NASDAQ: AMD), Intel (NASDAQ: INTC), Qualcomm (NASDAQ: QCOM), and Apple (NASDAQ: AAPL). See the 10 stocks *Stock Advisor returns as of November 6, 2023 Jose Najarro has positions in Advanced Micro Devices and Qualcomm. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. | In today's video, I discuss recent CPU updates affecting Advanced Micro Devices (NASDAQ: AMD), Intel (NASDAQ: INTC), Qualcomm (NASDAQ: QCOM), and Apple (NASDAQ: AAPL). 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 6, 2023 Jose Najarro has positions in Advanced Micro Devices and Qualcomm. |
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12643.0 | 2023-11-07 00:00:00 UTC | US STOCKS-S&P 500, Nasdaq poised for longest win streak in 2 years on rate hopes | AAPL | https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-poised-for-longest-win-streak-in-2-years-on-rate-hopes | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Fed speakers maintain focus on inflation
Uber gains after Q3 results
Datadog jumps on annual forecast raise
Indexes up: Dow 0.13%, S&P 0.31%, Nasdaq 0.99%
Updated at 2:44 p.m. ET/1844 GMT
Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq on track for their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks and investors sought more clarity on interest rates from the Federal Reserve.
The benchmark 10-year Treasury note yield US10YT=RR was on pace for its fifth decline in six sessions on expectations the Fed is done with its rate hike cycle. Yields extended losses after a solid auction of $48 billion in 3-year notes US3YT=RR with auctions of the 10-year note and 30-year bond US30YT=RR due later this week.
Expectations that the Fed's rate hike cycle is at an end have increased in recent days, but the market remains sensitive to the possibility of more hikes, and central bank officials have been cautious in comments on the future rate path.
Fed Governor Christopher Waller said on Tuesday that third-quarter U.S. economic growth, at an annualized 4.9% rate, was a "blowout" performance that warrants watching as the central bank considers its next policy moves. Fellow Governor Michelle Bowman said she took the recent Gross Domestic Product number as evidence the economy not only "remained strong," but might have gained speed and requires a higher Fed policy rate.
Both Federal Reserve Bank of Minneapolis President Neel Kashkari and Chicago Fed President Austan Goolsbee also refused to rule out rate cuts.
Fed Chair Jerome Powell is set to speak on Wednesday and Thursday.
"That is the story today, that the Fed is done, but yesterday it was maybe not. Powell is going to speak on Thursday so that is going to leave the door open," said Ken Polcari, managing partner at Kace Capital Advisors in Boca Raton, Florida.
"But what the market is telling you - the market, traders - are pushing for is we're all done, it's a rate cut, almost as if they are trying to force the hand."
The pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.5%, and Apple AAPL.O, up 1.7%, as the biggest boosts to both the S&P 500 and Nasdaq.
The Dow Jones Industrial Average .DJI rose 45.28 points, or 0.13%, to 34,141.14, the S&P 500 .SPX gained 13.11 points, or 0.31 %, at 4,379.94 and the Nasdaq Composite .IXIC gained 135.13 points, or 0.99 %, at 13,652.76.
Energy .SPNY, the worst performing sector, fell 2.4% as crude prices settled down more than 4% on demand concerns and a firmer dollar.
Also due to speak on Tuesday was New York Fed President John Williams.
The S&P 500 .SPX is on pace for its seventh straight day in the green, with the Nasdaq .IXIC on track to rise for the eighth day in a row, the longest such streak for each index in two years. The Dow is up for a seventh straight session, its longest since a 13-session run in July.
Uber TechnologiesUBER.N rose 3% as the ride-hailing firmprojected fourth-quarter adjusted core profit above estimates.
DatadogDDOG.O surged 28.2% after raising its forecast for annual adjusted profit and revenue.
Declining issues outnumbered advancers by a 1.3-to-1 ratio on the NYSE while on the Nasdaq, advancing issues outnumbered decliners by a 1-to-1 ratio on the Nasdaq.
The S&P 500 posted 13 new 52-week highs and three new lows while the Nasdaq recorded 43 new highs and 132 new lows.
(Reporting by Amruta Khandekar and Shristi Achar A in Bengaluru; Editing by Maju Samuel and Richard Chang)
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.5%, and Apple AAPL.O, up 1.7%, as the biggest boosts to both the S&P 500 and Nasdaq. Fed Governor Christopher Waller said on Tuesday that third-quarter U.S. economic growth, at an annualized 4.9% rate, was a "blowout" performance that warrants watching as the central bank considers its next policy moves. Fellow Governor Michelle Bowman said she took the recent Gross Domestic Product number as evidence the economy not only "remained strong," but might have gained speed and requires a higher Fed policy rate. | The pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.5%, and Apple AAPL.O, up 1.7%, as the biggest boosts to both the S&P 500 and Nasdaq. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Fed speakers maintain focus on inflation Uber gains after Q3 results Datadog jumps on annual forecast raise Indexes up: Dow 0.13%, S&P 0.31%, Nasdaq 0.99% Updated at 2:44 p.m. ET/1844 GMT Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq on track for their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks and investors sought more clarity on interest rates from the Federal Reserve. The benchmark 10-year Treasury note yield US10YT=RR was on pace for its fifth decline in six sessions on expectations the Fed is done with its rate hike cycle. | The pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.5%, and Apple AAPL.O, up 1.7%, as the biggest boosts to both the S&P 500 and Nasdaq. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Fed speakers maintain focus on inflation Uber gains after Q3 results Datadog jumps on annual forecast raise Indexes up: Dow 0.13%, S&P 0.31%, Nasdaq 0.99% Updated at 2:44 p.m. ET/1844 GMT Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq on track for their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks and investors sought more clarity on interest rates from the Federal Reserve. Expectations that the Fed's rate hike cycle is at an end have increased in recent days, but the market remains sensitive to the possibility of more hikes, and central bank officials have been cautious in comments on the future rate path. | The pullback in yields helped lift megacap growth names such as Microsoft MSFT.O, up 1.5%, and Apple AAPL.O, up 1.7%, as the biggest boosts to both the S&P 500 and Nasdaq. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Fed speakers maintain focus on inflation Uber gains after Q3 results Datadog jumps on annual forecast raise Indexes up: Dow 0.13%, S&P 0.31%, Nasdaq 0.99% Updated at 2:44 p.m. ET/1844 GMT Nov 7 (Reuters) - U.S. stocks rose on Tuesday, with the S&P 500 and Nasdaq on track for their longest streak of gains in two years, as a retreat in U.S. Treasury yields buoyed megacap growth stocks and investors sought more clarity on interest rates from the Federal Reserve. The benchmark 10-year Treasury note yield US10YT=RR was on pace for its fifth decline in six sessions on expectations the Fed is done with its rate hike cycle. |
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12657.0 | 2023-11-06 00:00:00 UTC | Analyzing the S&P 500 index, NASDAQ and the Russell 2000 charts | AAPL | https://www.nasdaq.com/articles/analyzing-the-sp-500-index-nasdaq-and-the-russell-2000-charts | The U.S. stock market benchmark indexes have declined since peaking in the summer months of July and August 2023. Interest rate hikes are slowing down as inflation cools off. Consensus is growing regarding whether the economy may avert a recession as the potential for a soft landing rises.
Despite the inverted yield curve and a strong job market, bears argue we are edging closer to a 1987-like market crash. Sentiment changes daily. The breadth of the market continues to be weak on bounces. We'll take a technical analysis-based look at how the major indexes are faring in 2023. We will use exchange-traded funds (ETFs) for each index.
SPDR S&P 500 ETF Trust (NYSEARCA: SPY)
The S&P 500 index is the most widely followed benchmark index to gauge the overall market performance. Unfortunately, as a market cap-weighted index, most of its gains can be impacted by the highest market-cap companies. The Magnificent Seven club comprises Meta Platforms Inc. (NASDAQ: META), Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOGL), Nvidia Co. (NASDAQ: NVDA), Amacon.com Inc. (NASDAQ: AMZN), Microsoft Co. (NASDAQ: MSFT) and Tesla Inc. (NASDAQ: TSLA) comprises nearly 30% of the market cap of the S&P 500.
At its high, the SPY was up 15% in July 2023. It has returned nearly half the gains with a 7.8% year-to-date (YTD) performance. The SPY fell 2.5% in the past week, causing it to fall into correction territory again as it pulled back more than 10% from its highs.
Daily Inverse Cup and Handle Breakdown
The daily candlestick chart on SPY illustrates an inverse cup and handle breakdown. The cup lip lines commenced on June 1, 2023, at $420.18. SPY rose to a peak of $457.82 on July 27, 2023, as it turned back down. The SPY fell to bounced off the inverse cup lip line on Oct. 3, 2023, to a high of $435.14. The handle formed as shares fell back down to retest and break the inverse cup lip line, which also overlaps with the daily 200-period moving average at $420.18. The daily market structure low (MSL) trigger support is $410.74. The daily relative strength index (RSI) has again slipped to the oversold 30-band. The key pullback support areas are $400.87, $390.85, $386.59 and $379.39, which is the cup and handle downside extended target.
Invesco QQQ (NASDAQ: QQQ)
The Nasdaq 100 index can be tracked with the QQQ ETF. The Nasdaq 100 is a modified market-cap weighted index that performed a rebalancing on July 24, 2023.
The QQQ is the strongest-performing U.S. benchmark index, reaching a performance high of 38.7% in July 2023. Its gains have been trimmed down to 30.6% YTD. The Magnificent Seven stocks accounted for just over 55% of the Nasdaq 100 before rebalancing on July 24, 2023. Due to the adjustments, the Magnificent Seven group has an adjusted weighting of nearly 43%, which is a higher weighting than the S&P 500 index.
Daily inverse cup
The daily candlestick chart on the QQQ is similar to the SPY, but it hasn't tested the daily 200-period moving average at $338.54 yet. The inverse cup lip line is at $340.05. The daily MSL trigger is up at $359.91. Completing the daily inverse cup may cause a breakdown or a rebound off the lip line to form a handle. If the handle forms on a bounce and plunges back down through the lip line, the inverse cup and handle would form with a target near $293.20. Key pullback support levels are $340.05, $328.63, $314.23, $303.92 and $293.20.
iShares Russell 2000 ETF (NYSEARCA: IWM)
The Russell 2000 is a small-cap benchmark index. Small-caps are riskier and more volatile than large-cap stocks. While the Russell 2000 is a market-cap-weighted index like the SPY, having 2,000 stocks helps to prevent a small handful of stocks from overly impacting the index. At the high, IWM was 11.4% in July 2023. Currently, the IWM is down 6.45% YTD. However, it was trading down 33.6% from its high of $244.46 in November 2021. The bear market trigger price is $195.56, which equates to a 20% pullback from its highs. IWM fell under there on Aug. 4, 2023. The two-month minimum under the 20% pullback period cuts off on Oct. 4, 2023. The IWM has been in a bear market since Oct. 4, 2023.
Daily head and shoulders breakdown
The daily candlestick chart on IWM illustrates the extensive collapse from the head and shoulders breakdown collapsing through the 200-period MA near $182. IWM has been in bear market territory since peaking and falling under $195.96 on Aug. 4, 2023, at the 20% pullback level from its highs. IWM is now down 33.6%, firmly in bear market territory, having fallen under the $166.21 November 2020 gap-fill support level. The daily RSI has slipped back down to test the 30-band again. Near-term pullback support levels are $153.27, $148.71 and $143.17.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Magnificent Seven club comprises Meta Platforms Inc. (NASDAQ: META), Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOGL), Nvidia Co. (NASDAQ: NVDA), Amacon.com Inc. (NASDAQ: AMZN), Microsoft Co. (NASDAQ: MSFT) and Tesla Inc. (NASDAQ: TSLA) comprises nearly 30% of the market cap of the S&P 500. The SPY fell 2.5% in the past week, causing it to fall into correction territory again as it pulled back more than 10% from its highs. The handle formed as shares fell back down to retest and break the inverse cup lip line, which also overlaps with the daily 200-period moving average at $420.18. | The Magnificent Seven club comprises Meta Platforms Inc. (NASDAQ: META), Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOGL), Nvidia Co. (NASDAQ: NVDA), Amacon.com Inc. (NASDAQ: AMZN), Microsoft Co. (NASDAQ: MSFT) and Tesla Inc. (NASDAQ: TSLA) comprises nearly 30% of the market cap of the S&P 500. Daily Inverse Cup and Handle Breakdown The daily candlestick chart on SPY illustrates an inverse cup and handle breakdown. iShares Russell 2000 ETF (NYSEARCA: IWM) The Russell 2000 is a small-cap benchmark index. | The Magnificent Seven club comprises Meta Platforms Inc. (NASDAQ: META), Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOGL), Nvidia Co. (NASDAQ: NVDA), Amacon.com Inc. (NASDAQ: AMZN), Microsoft Co. (NASDAQ: MSFT) and Tesla Inc. (NASDAQ: TSLA) comprises nearly 30% of the market cap of the S&P 500. Daily Inverse Cup and Handle Breakdown The daily candlestick chart on SPY illustrates an inverse cup and handle breakdown. Daily inverse cup The daily candlestick chart on the QQQ is similar to the SPY, but it hasn't tested the daily 200-period moving average at $338.54 yet. | The Magnificent Seven club comprises Meta Platforms Inc. (NASDAQ: META), Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOGL), Nvidia Co. (NASDAQ: NVDA), Amacon.com Inc. (NASDAQ: AMZN), Microsoft Co. (NASDAQ: MSFT) and Tesla Inc. (NASDAQ: TSLA) comprises nearly 30% of the market cap of the S&P 500. The Nasdaq 100 is a modified market-cap weighted index that performed a rebalancing on July 24, 2023. Daily inverse cup The daily candlestick chart on the QQQ is similar to the SPY, but it hasn't tested the daily 200-period moving average at $338.54 yet. |
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12682.0 | 2023-11-05 00:00:00 UTC | Wall Street Is Hating on Apple Right Now. Here Are 5 Reasons I'm Not. | AAPL | https://www.nasdaq.com/articles/wall-street-is-hating-on-apple-right-now.-here-are-5-reasons-im-not. | Apple (NASDAQ: AAPL) delivered what should objectively be viewed as a solid performance with its fiscal 2023 fourth-quarter results reported on Thursday. The tech giant beat analysts' estimates on both the top and bottom lines. So were those analysts happy? Nope.
There were two main complaints. First, Apple's total revenue declined for the fourth quarter in a row. Second, CFO Luca Maestri hinted that the company might not return to growth in the next quarter as analysts expected.
Wall Street appears to be hating on Apple to some extent after its latest quarterly update. Here are five reasons I'm not.
1. Strongest September quarter for iPhone ever
The general rule of thumb is that as the iPhone goes, so goes Apple. After all, iPhones generate more than half of the company's total net sales.
You probably wouldn't know it from Apple stock's drop on Friday, but the September quarter was the strongest ever for iPhone sales. Apple recorded $43.8 billion in iPhone sales in its fiscal Q4, up nearly 3% year over year.
2. Services business is booming
It wasn't just iPhone sales hitting a record high. The company's services business also set an all-time revenue record in the September quarter. Even more impressive, Apple CEO Tim Cook stated in the quarterly conference call, "Every main service hit a record." Those main services include the App Store, iCloud, Apple Music, and Apple Pay.
Total services revenue jumped more than 16% year over year to $22.3 billion. The consensus among analysts surveyed by LSEG (formerly Refinitiv) was that Apple would record services revenue of just under $21.3 billion.
3. Installed base at an all-time high
There's a good reason to be optimistic that Apple's services growth will continue its strong momentum. Why? The company's active installed base of devices reached an all-time high as well.
Maestri said in the press release announcing the latest results that this achievement is "thanks to the strength of our ecosystem and unparalleled customer loyalty." I think he's exactly right. And the more Apple devices being used, the more that customers will spend on services.
4. Improving margins
One thing that I like more than an attractive margin is an attractive margin that's growing. That's exactly what Apple delivered in its fiscal Q4.
The company's gross margin in its latest quarter was 45.2%. This result was better than the 44.5% expected by analysts and reflected an increase from a gross margin of 42.3% in the prior-year period.
What about net profit margin? It looked great, too. Apple reported a net profit margin in fiscal Q4 of 25.6%, up from 22.9% in the same quarter of fiscal 2023.
5. Next quarter could be better than analysts think
I also suspect that next quarter could be better than analysts think. Sure, Maestri commented that Apple looks for its revenue in the December quarter to "be similar to" the level from last year. But there are a few things to note.
Importantly, the coming quarter will have one fewer week than last year's fiscal Q1 did. Cook said in an interview with CNBC that in the September quarter, the new iPhone 15 outperformed sales for the iPhone 14 in the prior-year period. That's encouraging for the upcoming quarter.
Cook also expressed his opinion that the Mac "is going to have a significantly better quarter in the December quarter." The new M3 chips powering Macs are likely to provide a nice boost in sales despite what Cook referred to as a "challenging" PC market.
162 billion other reasons
There are roughly 162 billion other reasons why I still like Apple. I'm referring to the company's cash stockpile of a little over $162 billion at the end of September. That's a staggering amount of cash, cash equivalents, and marketable securities, especially considering that Apple returned nearly $25 billion to shareholders in its latest quarter through dividends and stock buybacks.
Maybe the negative reactions to Apple's latest update will push the stock even lower. That would give the company a great opportunity to use some of its cash for additional share repurchases. If you believe in Apple's long-term prospects as I do, that would be money well spent. In my opinion, Wall Street hating on Apple right now could be great news for long-term investors.
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Keith Speights has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) delivered what should objectively be viewed as a solid performance with its fiscal 2023 fourth-quarter results reported on Thursday. Even more impressive, Apple CEO Tim Cook stated in the quarterly conference call, "Every main service hit a record." Installed base at an all-time high There's a good reason to be optimistic that Apple's services growth will continue its strong momentum. | Apple (NASDAQ: AAPL) delivered what should objectively be viewed as a solid performance with its fiscal 2023 fourth-quarter results reported on Thursday. Apple recorded $43.8 billion in iPhone sales in its fiscal Q4, up nearly 3% year over year. Services business is booming It wasn't just iPhone sales hitting a record high. | Apple (NASDAQ: AAPL) delivered what should objectively be viewed as a solid performance with its fiscal 2023 fourth-quarter results reported on Thursday. You probably wouldn't know it from Apple stock's drop on Friday, but the September quarter was the strongest ever for iPhone sales. Apple reported a net profit margin in fiscal Q4 of 25.6%, up from 22.9% in the same quarter of fiscal 2023. | Apple (NASDAQ: AAPL) delivered what should objectively be viewed as a solid performance with its fiscal 2023 fourth-quarter results reported on Thursday. The company's services business also set an all-time revenue record in the September quarter. Next quarter could be better than analysts think I also suspect that next quarter could be better than analysts think. |
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12685.0 | 2023-11-04 00:00:00 UTC | AAPL and GOOGL’s Post-Earnings Slump: Time to Buy? | AAPL | https://www.nasdaq.com/articles/aapl-and-googls-post-earnings-slump%3A-time-to-buy | Shares of Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) were rocked following their respective quarterly earnings reports. And though the results weren't as impressive as the likes of other "Magnificent Seven" members, I view the weak post-earnings action as more of a chance for contrarians to buy rather than a red flag that should spark a rush to the exits.
Undoubtedly, if you're looking for a reason to sell after recent earnings, the quarters of Apple and Alphabet gave you some reasons. However, if you were looking for positives, each quarter had that, too. Both companies delivered some pretty decent earnings.
That said, the market has set a high bar this time of year, with macro and rate risks atop everyone's radar. Though Apple and Alphabet didn't deliver spectacular results, I don't think they were bad enough to spark a dip.
Therefore, let's stack up the two tech titans using TipRanks' Comparison Tool.
Apple: A Good Quarter Showcased to a Tough Crowd
After clocking in its fourth straight quarter of sagging sales while setting a low bar for the December quarter — CFO Luca Maestri is looking for revenue to be similar to last year — shares of Apple dipped over 3% in the after-hours session of trade, only to recover most of the lost ground the very next day.
Ultimately, though, Apple ended down just 0.5% following a quarter that I thought had quite a few positives (like record Services revenue). A flat-ish move post-earnings may not seem terrible until you consider the fact that it didn't participate in what was a strong rally for broader markets on Friday that saw the S&P 500 rise almost a full percentage point.
Indeed, four straight quarters of sales in the red may be a horrific headline for some Apple skeptics. However, such stagnation is likely in the rear-view mirror as the consumer looks to heal and Apple looks to put the finishing touches on its Apple Vision Pro headset before it formally launches in a few months.
Neuburger Berman analyst Daniel Flax is just one of the bulls that sees Apple's growth re-accelerating from here. If the upcoming Vision Pro mixed-reality headset is a hit and the iPhone 15 makes up for lost time in the new year, I think the stage could be set for an AAPL stock breakout.
And while Greater China numbers were also flat, thanks in part to competitive pressures from domestic smartphone maker Huawei, I think China concerns are overblown.
Competition is nothing new for Apple. And to think Apple will fail to stay up to speed against Huawei would be to heavily discount the Apple brand. There's still a great deal of brand affinity for Apple and other American brands in China. As such, I view flat Chinese sales as a mere hiccup than the start of a troubling trend. China is still Apple's third-largest market, and it's one in which Apple has room to run.
Apart from the strong brand, I believe Apple's hardware prowess will help it catch up to the likes of Huawei in China over the coming years. Apple Silicon is already building chips on the 3nm process with an intense focus on per-watt performance. My bet is that Apple will widen the per-watt performance gap from here.
Given the stock is trading at where it was two years ago, I don't view Apple as ripe for a continuation of its correction; It already had one.
What is the Price Target for AAPL Stock?
Apple's a Moderate Buy, according to analysts, with 22 Buys and nine Holds assigned in the past three months. The average AAPL stock price target of $201.47 implies 14.1% upside potential.
Alphabet: Weak Cloud Growth Clouding the AI Story
Alphabet stock was slapped with a brutal two-day plunge of around 12%, even as the firm clocked in better-than-expected earnings results. For the quarter, Alphabet reported third-quarter earnings per share of $1.55, comfortably ahead of the $1.46 estimate. Weakness in its Cloud division cast a dark shadow over the quarter, though, with cloud sales rising just 22%, down from 28% in the last two quarters.
Indeed, Microsoft's (NASDAQ:MSFT) Azure may very well take share away from Google Cloud as it continues sprinkling in generative AI across its broad suite of products. AI plus Azure may be the perfect combo to take Microsoft's cloud business to the next level. That said, don't forget that Alphabet is an AI-savvy titan itself. Though Alphabet may be slower to effectively monetize AI versus Microsoft, I think Alphabet will make up ground once it's ready to flex its own AI muscles.
For now, Google is hard at work pushing out new AI products, like Bard and Duet AI, which seems to mirror what Microsoft is doing with Bing and Copilot. The AI wars are not over yet -- not by a long shot.
GOOGL trades at just 24.8 times trailing price-to-earnings (P/E), making it the cheapest of the Magnificent Seven stocks. I view Alphabet stock as a relative bargain while the distraction of the antitrust trial plays out in the background. Who says you need to pay a fat premium for top-of-the-line AI exposure?
What is the Price Target for GOOGL Stock?
Alphabet is a Strong Buy, according to analysts, with 26 Buys and seven Holds assigned in the past three months. The average GOOGL stock price target of $152.67 implies 18.3% upside potential.
Conclusion
The so-called Santa Claus rally may be arriving earlier this year, but the real gift, I believe, is the recent weakness in Apple and Alphabet. I'm bullish on both companies, as most other investors overweigh the near-term negatives over the long-term positives.
Disclosure
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 upcoming Vision Pro mixed-reality headset is a hit and the iPhone 15 makes up for lost time in the new year, I think the stage could be set for an AAPL stock breakout. Shares of Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) were rocked following their respective quarterly earnings reports. What is the Price Target for AAPL Stock? | The average AAPL stock price target of $201.47 implies 14.1% upside potential. Shares of Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) were rocked following their respective quarterly earnings reports. If the upcoming Vision Pro mixed-reality headset is a hit and the iPhone 15 makes up for lost time in the new year, I think the stage could be set for an AAPL stock breakout. | Shares of Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) were rocked following their respective quarterly earnings reports. If the upcoming Vision Pro mixed-reality headset is a hit and the iPhone 15 makes up for lost time in the new year, I think the stage could be set for an AAPL stock breakout. What is the Price Target for AAPL Stock? | Shares of Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) were rocked following their respective quarterly earnings reports. If the upcoming Vision Pro mixed-reality headset is a hit and the iPhone 15 makes up for lost time in the new year, I think the stage could be set for an AAPL stock breakout. What is the Price Target for AAPL Stock? |
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12713.0 | 2023-11-03 00:00:00 UTC | After Hours Most Active for Nov 3, 2023 : XOM, QQQ, CD, RSI, RTX, ENB, ING, PAGP, NU, AAPL, CSCO, AMZN | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-nov-3-2023-%3A-xom-qqq-cd-rsi-rtx-enb-ing-pagp-nu-aapl-csco-amzn | The NASDAQ 100 After Hours Indicator is down -3.15 to 15,096.34. The total After hours volume is currently 63,664,449 shares traded.
The following are the most active stocks for the after hours session:
Exxon Mobil Corporation (XOM) is +0.01 at $107.79, with 6,475,862 shares traded. As reported by Zacks, the current mean recommendation for XOM is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.3 at $368.01, with 3,237,680 shares traded. This represents a 42.04% increase from its 52 Week Low.
Chindata Group Holdings Limited (CD) is unchanged at $9.00, with 3,012,286 shares traded. As reported in the last short interest update the days to cover for CD is 8.286115; this calculation is based on the average trading volume of the stock.
Rush Street Interactive, Inc. (RSI) is +0.19 at $3.99, with 3,010,289 shares traded. As reported by Zacks, the current mean recommendation for RSI is in the "buy range".
RTX Corporation (RTX) is -0.12 at $82.60, with 2,853,606 shares traded. RTX's current last sale is 96.61% of the target price of $85.5.
Enbridge Inc (ENB) is -0.08 at $33.75, with 2,413,233 shares traded. ENB's current last sale is 83.4% of the target price of $40.47.
ING Group, N.V. (ING) is unchanged at $13.26, with 2,000,372 shares traded. As reported by Zacks, the current mean recommendation for ING is in the "buy range".
Plains GP Holdings, L.P. (PAGP) is unchanged at $16.24, with 1,778,443 shares traded. PAGP's current last sale is 95.53% of the target price of $17.
Nu Holdings Ltd. (NU) is +0.01 at $8.49, with 1,758,095 shares traded., following a 52-week high recorded in today's regular session.
Apple Inc. (AAPL) is +0.06 at $176.71, with 1,529,669 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Cisco Systems, Inc. (CSCO) is unchanged at $53.01, with 1,153,565 shares traded. CSCO's current last sale is 91.4% of the target price of $58.
Amazon.com, Inc. (AMZN) is -0.1195 at $138.48, with 1,061,744 shares traded. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.76. As reported by Zacks, the current mean recommendation for AMZN 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 +0.06 at $176.71, with 1,529,669 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Chindata Group Holdings Limited (CD) is unchanged at $9.00, with 3,012,286 shares traded. | Apple Inc. (AAPL) is +0.06 at $176.71, with 1,529,669 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 63,664,449 shares traded. | Apple Inc. (AAPL) is +0.06 at $176.71, with 1,529,669 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 63,664,449 shares traded. | Apple Inc. (AAPL) is +0.06 at $176.71, with 1,529,669 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for RSI is in the "buy range". |
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12738.0 | 2023-11-02 00:00:00 UTC | Apple's Loaded Product Lineup Headed Into the Holidays Is Good News for Investors | AAPL | https://www.nasdaq.com/articles/apples-loaded-product-lineup-headed-into-the-holidays-is-good-news-for-investors | Apple (NASDAQ: AAPL) isn't messing around this holiday season. The tech company added to an already exhaustive lineup of new products this week, announcing new chips and Macs, including 14-inch and 16-inch MacBook Pros in a new "space black" finish. The new devices build on a range of new product introductions headed into the holidays, including updated smartphones and smartwatches. Apple even brought to market a new Apple Pencil.
All of this positions Apple strategically to capture wallet share from increasingly strapped consumers who are pressured by inflation and high interest rates. More importantly, Apple's latest round of new products increases the odds of the iPhone maker returning to growth during a quarter in which it typically rakes in the lion's share of its annual net income.
Apple's new space black laptop is key
On the surface, Apple's product event on Oct. 30 may seem unimportant. After all, it was a Mac-focused event, and Mac only accounted for about 10.2% of Apple's fiscal 2022 revenue. But investors shouldn't count out this product event as a key catalyst for the holidays yet. There are several reasons new Mac products could be important catalysts for Apple when combined with the already-robust lineup of new products Apple has going into the holidays.
First, other than Apple's move in the summer of 2022 to update its 13-inch MacBook Pro to include a new processor, the company's MacBook Pro lineup was an aging product line going into the holidays last year. For instance, the last major refreshes to its 14-inch and 16-inch MacBook Pro devices were in October of 2021. With the help of these new products, Apple's Mac business grew 25% year over year during the calendar 2021 holiday quarter. Indeed, Apple management specifically credited the segment's growth to the "newly redesigned MacBook Pro" during theearnings callfor the period. While 25% growth from Mac during the holiday quarter is unlikely, given the current macroeconomic backdrop, Apple's well-timed refresh of the MacBook Pro will almost undoubtedly help the important period's results in some fashion, particularly since Apple is going up against a period last year when the Mac lineup was aging.
Additionally, it's worth noting that Apple's MacBook Pro lineup commands some serious pricing power. The 16-inch MacBook Pro, for instance, starts at $2,499. Strong orders and shipments of the new product could really move the needle for not only Apple's Mac segment but its entire business.
Finally, something tells me Apple's new space black color will be popular with pro users. Call it speculation, but that's my hunch.
A healthy supply chain
There's also something to be said about an improving global supply chain. As the world recovers from COVID-19-related factory shutdowns, Apple is likely better prepared to build and ship more products going into the holidays this year than it was in the year-ago period. Indeed, this is likely one key reason why Apple has introduced so many new products leading up to the holidays. Chances are, Apple's new MacBook Pro will both solicit strong demand but also be followed up with good production volume -- at least compared to recent years, which often saw manufacturing interrupted by sudden and unplanned factory shutdowns due to China's zero-COVID policies at the time and some disruptions in other markets as well.
An easy comparison
Finally, it's worth emphasizing that Apple is going up against an easy comparison during the holiday quarter (the first fiscal quarter of 2024) particularly when it comes to Mac. Apple's total revenue fell 5% year over year in its first quarter of fiscal 2023 (the fiscal quarter coinciding with the fourth calendar quarter of 2022), with Mac revenue declining about 29% year over year.
Apple's new space black MacBook Pro, along with its refreshed iMacs, could be the determining factor for the company returning to year-over-year revenue growth in the holiday quarter.
Fortunately, however, Apple isn't entirely dependent on the MacBook Pro for a good holiday quarter. It has overhauled other major products going into the final calendar quarter as well. This loaded product pipeline will help Apple grab as much share from consumers' holiday-spending budgets as possible.
Investors may get some insight into what Apple expects from its holiday quarter when the company reports earnings for its fiscal Q4 after market close on Thursday, Nov. 2.
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*Stock Advisor returns as of October 30, 2023
Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) isn't messing around this holiday season. More importantly, Apple's latest round of new products increases the odds of the iPhone maker returning to growth during a quarter in which it typically rakes in the lion's share of its annual net income. Chances are, Apple's new MacBook Pro will both solicit strong demand but also be followed up with good production volume -- at least compared to recent years, which often saw manufacturing interrupted by sudden and unplanned factory shutdowns due to China's zero-COVID policies at the time and some disruptions in other markets as well. | Apple (NASDAQ: AAPL) isn't messing around this holiday season. First, other than Apple's move in the summer of 2022 to update its 13-inch MacBook Pro to include a new processor, the company's MacBook Pro lineup was an aging product line going into the holidays last year. With the help of these new products, Apple's Mac business grew 25% year over year during the calendar 2021 holiday quarter. | Apple (NASDAQ: AAPL) isn't messing around this holiday season. There are several reasons new Mac products could be important catalysts for Apple when combined with the already-robust lineup of new products Apple has going into the holidays. First, other than Apple's move in the summer of 2022 to update its 13-inch MacBook Pro to include a new processor, the company's MacBook Pro lineup was an aging product line going into the holidays last year. | Apple (NASDAQ: AAPL) isn't messing around this holiday season. First, other than Apple's move in the summer of 2022 to update its 13-inch MacBook Pro to include a new processor, the company's MacBook Pro lineup was an aging product line going into the holidays last year. Apple's new space black MacBook Pro, along with its refreshed iMacs, could be the determining factor for the company returning to year-over-year revenue growth in the holiday quarter. |
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12793.0 | 2023-11-01 00:00:00 UTC | The Wealth Builder’s Toolkit: Top 3 Stocks to Supercharge Your Portfolio | AAPL | https://www.nasdaq.com/articles/the-wealth-builders-toolkit%3A-top-3-stocks-to-supercharge-your-portfolio | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
I’m tasked with coming up with three stocks to buy that will supercharge your portfolio. These are companies whose stocks will build wealth over time.
Call it patient capital. Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) makes the grade. But that’s an obvious choice.
To come up with the three names, I’ll use three criteria reflecting quality businesses with rock-solid financials that generate sustainable growth.
Criteria # 1: The company has a strong balance sheet. That’s especially important in today’s higher interest rate environment. What’s a strong balance sheet? I prefer businesses with net cash or, at the very least, net debt less than 25% of their market capitalization.
Criteria # 2: The company has an above-average return on invested capital (ROIC). This is defined, according to MarketWatch’s Philip van Doorn, as “its profit divided by the sum of the carrying value of its common stock, preferred stock, long-term debt and capitalized lease obligations.”
Criteria # 3: The company has a CEO who’s been in their job for at least five years, preferably longer. A long tenure is generally the sign of someone who can lead through different economic cycles.
While there are plenty of quality smaller companies, I’ve limited my selections to stocks with a market cap of at least $10 billion.
Fortinet (FTNT)
Source: Sundry Photography / Shutterstock.com
Fortinet (NASDAQ:FTNT) qualifies with $2.32 billion in net cash, an average ROIC over the past 12 quarters of 55.39%, and Fortinet CEO Ken Xie has held the top job since co-founding the company in October 2000 with his brother Michael Xie.
The cybersecurity company has over 680,000 global customers, generating more than $1.5 billion in quarterly billings from its 50+ enterprise cybersecurity products. It reports earnings on Nov. 2 after the markets close. The company is expected to deliver $1.35 billion in revenue — 20% higher year-over-year (YOY) — with earnings per share of $0.36 (10% higher YOY).
Of the 30 analysts covering its stock, 21 rate it a Buy or Strong Buy, with a $72.41 target price, 27% higher than where it’s currently trading. FTNT shares are up 294% over the past five years, over 3x the Nasdaq.
“Fortinet has been GAAP profitable and free cash flow positive every year since its IPO in 2009,” states pg. 5 of the company’s September 2023 presentation.
The company aims to deliver annually on the “Rule of 40”, defined as the combination of revenue growth and non-GAAP operating margin. In 2023, it expects it to be 48%. While down from 60% in 2022, it’s still well above 40%. Since 2009, it has met the rule in all but three years.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) qualifies with $46.8 billion in net debt, an average ROIC over the past 12 quarters of 52.26%, and CEO Tim Cook has held the top job since 2011.
It’s hard to add anything new to what’s already been written about the iPhone maker in recent years. So, I’m returning to something I said about Apple in July 2014.
“I see growth investors coming back to AAPL stock when it can consistently deliver gross margins of 40% or more while also growing top-line revenue by double digits. If the iWatch and iTV along with a bigger iPhone 6 are all well-received, it’s a certainty that growth investors will return to the flock,” I wrote on July 25, 2014.
How’d that work out?
In the nine months ended July 1, 2023, its gross margin was 43.8%, 20 basis points higher than a year earlier. While top-line revenue will likely fall in 2023 due to lower sales across all its products, offset by higher services revenue, it has increased annual sales by double digits multiple times since 2014.
While we’re still waiting on an Apple TV and Apple Car, the iWatch and iPhone have certainly delivered for shareholders.
Apple reports Q4 results on Nov. 2 after the close. It won’t be pretty, but consider 2023 a reset year for the company. I’m sure Warren Buffett does.
AutoZone (AZO)
Source: Memory Stockphoto/ShutterStock.com
AutoZone (NYSE:AZO) qualifies with $10.2 billion in net debt (23% of its market cap), an average ROIC over the past 12 quarters of 38.60%, and CEO Bill Rhodes has held the top job since 2005.
It’s not been a stellar year for AZO stock. It’s up just 1.9% year-to-date and down more than 2% over the past 52 weeks. However, AutoZone shares are up 226% over the past five years, more than 4x the S&P 500.
Of the 27 analysts covering its stock, 12 rate it a Buy or Strong Buy, with a $2,849.75 target price, 15% higher than where it’s currently trading.
In 2023, it generated $17.46 billion in revenue, 7.4% higher than in 2022, with an operating profit of $3.47 billion, 6.1% higher than a year earlier. These are workmanlike, unspectacular numbers, so its shares are trading at 2.71x sales, its lowest multiple since 2020.
The retailer of automotive aftermarket parts expects 2024 to be a better year. It finished fiscal 2023 (August 26) with 6,300 stores in the U.S., 740 in Mexico and 100 in Brazil. As Rhodes said in its Q4 2023 press release, “[W]e continued to be pleased with our International stores’ performance and we are excited about future growth prospects across both Mexico and Brazil.”
The need for replacement parts is never going away. That’s about as good a guarantee as you’ll get in business. Its quality management takes care of the rest.
AutoZone is the sleeper stock of the three.
On the date of publication, Will Ashworth did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | “I see growth investors coming back to AAPL stock when it can consistently deliver gross margins of 40% or more while also growing top-line revenue by double digits. Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) qualifies with $46.8 billion in net debt, an average ROIC over the past 12 quarters of 52.26%, and CEO Tim Cook has held the top job since 2011. As Rhodes said in its Q4 2023 press release, “[W]e continued to be pleased with our International stores’ performance and we are excited about future growth prospects across both Mexico and Brazil.” The need for replacement parts is never going away. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) qualifies with $46.8 billion in net debt, an average ROIC over the past 12 quarters of 52.26%, and CEO Tim Cook has held the top job since 2011. “I see growth investors coming back to AAPL stock when it can consistently deliver gross margins of 40% or more while also growing top-line revenue by double digits. Fortinet (FTNT) Source: Sundry Photography / Shutterstock.com Fortinet (NASDAQ:FTNT) qualifies with $2.32 billion in net cash, an average ROIC over the past 12 quarters of 55.39%, and Fortinet CEO Ken Xie has held the top job since co-founding the company in October 2000 with his brother Michael Xie. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) qualifies with $46.8 billion in net debt, an average ROIC over the past 12 quarters of 52.26%, and CEO Tim Cook has held the top job since 2011. “I see growth investors coming back to AAPL stock when it can consistently deliver gross margins of 40% or more while also growing top-line revenue by double digits. This is defined, according to MarketWatch’s Philip van Doorn, as “its profit divided by the sum of the carrying value of its common stock, preferred stock, long-term debt and capitalized lease obligations.” Criteria # 3: The company has a CEO who’s been in their job for at least five years, preferably longer. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) qualifies with $46.8 billion in net debt, an average ROIC over the past 12 quarters of 52.26%, and CEO Tim Cook has held the top job since 2011. “I see growth investors coming back to AAPL stock when it can consistently deliver gross margins of 40% or more while also growing top-line revenue by double digits. FTNT shares are up 294% over the past five years, over 3x the Nasdaq. |
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12801.0 | 2023-10-31 00:00:00 UTC | Can Q4 Earnings Give a New Lease of Life to Apple ETFs? | AAPL | https://www.nasdaq.com/articles/can-q4-earnings-give-a-new-lease-of-life-to-apple-etfs | All eyes are on the technology giant Apple AAPL, which is set to release fourth-quarter fiscal 2023 results on Nov 2 after market close. Since Apple accounts for nearly 7% of the total market capitalization of the entire technology sector on the S&P 500 Index, it is worth taking a look at its fundamentals ahead of its quarterly results.
Apple has shed about 13% over the past three months, underperforming the industry’s decline of 12.1%. The trend might reverse if the company’s earnings beat estimates in the soon-to-be-reported quarter (see: all the Technology ETFs here).
This has put investors’ focus on ETFs having the largest allocation to the tech titan. Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #1 (Strong Buy).
Inside Our Methodology
Apple has an Earnings ESP of -1.13% and a Zacks Rank #3 (Hold). According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Apple saw no earnings estimate revision over the past 30 days for the fiscal fourth quarter. The company has a strong track record of positive earnings surprises. It delivered an average earnings surprise of 2.81% in the trailing four quarters. The tech titan is expected to report the fourth consecutive decline in revenues that could spread fears of pessimism. The Zacks Consensus Estimate indicates modest year-over-year growth of 7.75% for earnings and a decline of 1.5% for revenues.
The stock belongs to a top-ranked Zacks Industry (top 21%) and has a solid Growth Score of B. Apple currently has an average brokerage recommendation (ABR) of 1.71 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell etc.) made by 29 brokerage firms. The current ABR compares to an ABR of 1.64 a month ago based on 29 recommendations.
Of the 29 recommendations deriving the current ABR, 17 are Strong Buy and three are Buy. Strong Buy and Buy, respectively, account for 58.62% and 10.34% of all recommendations. A month ago, Strong Buy made up 62.07%, while Buy represented 10.34% (read: 5 Inverse Tech ETFs That Rose on Nasdaq Entry Into Correction).
Based on short-term price targets offered by 26 analysts, the average price target for Apple comes to $205.46. The forecasts range from a low of $140.00 to a high of $240.00.
What to Watch
On the lastearnings call the tech giant expected fiscal fourth-quarter year-over-year revenues to be “down,” similar to the third quarter. An additional drop in revenues would mark the longest streak of declines in two decades — a surprising slowdown for the world’s most valuable company.
What’s New?
The iPhone maker unveiled its most powerful chips ever in the M3 range during its “Scary Fast” event on Oct 30. It also announced an updated line of its Macs and MacBooks, powered by the next-generation family of custom-made processors — the M3, M3 Pro and M3 Pro Max — just ahead of the fourth-quarter earnings. Prices for the new models will range from $649 for the new Mac mini to $1,599 for the 14" and 16" MacBook Pro, likely to be available a month from now.
The release of the new Mac line comes a month after its new iPhone 15 went on sale (read: Apple ETFs in Focus Post iPhone 15 Launch).
ETFs in Focus
Technology Select Sector SPDR Fund (XLK): The fund has AUM of $46.6 billion and has declined 8.3% over the past three months. Apple makes up 23.3% of the assets.
Vanguard Information Technology ETF (VGT): It has AUM of $48.1 billion and has lost 1.3% over the past three months. Here, AAPL has a 21.2% share.
MSCI Information Technology Index ETF (FTEC): With AUM of $6.7 billion, the ETF allocates a 22.3% share in Apple stock. It has plunged 9.7% over the past three months.
iShares US Technology ETF (IYW): The fund has amassed $11.2 billion in its asset base and shed 8.9% in the past three months. Apple accounts for 18.2% of the assets.
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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 eyes are on the technology giant Apple AAPL, which is set to release fourth-quarter fiscal 2023 results on Nov 2 after market close. Here, AAPL has a 21.2% share. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. All eyes are on the technology giant Apple AAPL, which is set to release fourth-quarter fiscal 2023 results on Nov 2 after market close. Here, AAPL has a 21.2% share. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. All eyes are on the technology giant Apple AAPL, which is set to release fourth-quarter fiscal 2023 results on Nov 2 after market close. Here, AAPL has a 21.2% share. | All eyes are on the technology giant Apple AAPL, which is set to release fourth-quarter fiscal 2023 results on Nov 2 after market close. Here, AAPL has a 21.2% share. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. |
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12852.0 | 2023-10-30 00:00:00 UTC | After Hours Most Active for Oct 30, 2023 : RTX, AMBP, PINS, AYX, QQQ, AAPL, ING, GOOGL, GMED, AMZN, MSFT, AMD | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-oct-30-2023-%3A-rtx-ambp-pins-ayx-qqq-aapl-ing-googl-gmed-amzn | The NASDAQ 100 After Hours Indicator is down -11.84 to 14,323.67. The total After hours volume is currently 69,826,877 shares traded.
The following are the most active stocks for the after hours session:
RTX Corporation (RTX) is unchanged at $78.57, with 5,347,188 shares traded. RTX's current last sale is 93.54% of the target price of $84.
Ardagh Metal Packaging S.A. (AMBP) is +0.05 at $3.50, with 4,162,029 shares traded. AMBP's current last sale is 87.5% of the target price of $4.
Pinterest, Inc. (PINS) is +2.55 at $27.65, with 4,021,005 shares traded. As reported by Zacks, the current mean recommendation for PINS is in the "buy range".
Alteryx, Inc. (AYX) is unchanged at $31.68, with 2,989,665 shares traded.AYX is scheduled to provide an earnings report on 11/6/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -0.76 per share, which represents a -95 percent increase over the EPS one Year Ago
Invesco QQQ Trust, Series 1 (QQQ) is -0.24 at $348.96, with 2,492,062 shares traded. This represents a 34.69% increase from its 52 Week Low.
Apple Inc. (AAPL) is -0.22 at $170.07, with 2,368,625 shares traded.AAPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 1.39 per share, which represents a 129 percent increase over the EPS one Year Ago
ING Group, N.V. (ING) is +0.005 at $12.87, with 2,357,549 shares traded.ING is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 0.59 per share, which represents a 26 percent increase over the EPS one Year Ago
Alphabet Inc. (GOOGL) is -0.28 at $124.18, with 2,308,606 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
Globus Medical, Inc. (GMED) is unchanged at $45.58, with 2,142,649 shares traded. GMED's current last sale is 74.11% of the target price of $61.5.
Amazon.com, Inc. (AMZN) is -0.09 at $132.64, with 1,984,954 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.71. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Microsoft Corporation (MSFT) is +0.31 at $337.62, with 1,312,242 shares traded. Over the last four weeks they have had 11 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $2.74. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Advanced Micro Devices, Inc. (AMD) is +0.07 at $96.25, with 1,248,431 shares traded.AMD is scheduled to provide an earnings report on 10/31/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is 0.49 per share, which represents a 54 percent increase over the EPS one Year Ago
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 -0.22 at $170.07, with 2,368,625 shares traded.AAPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. Alteryx, Inc. (AYX) is unchanged at $31.68, with 2,989,665 shares traded.AYX is scheduled to provide an earnings report on 11/6/2023, for the fiscal quarter ending Sep2023. Advanced Micro Devices, Inc. (AMD) is +0.07 at $96.25, with 1,248,431 shares traded.AMD is scheduled to provide an earnings report on 10/31/2023, for the fiscal quarter ending Sep2023. | Apple Inc. (AAPL) is -0.22 at $170.07, with 2,368,625 shares traded.AAPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -0.76 per share, which represents a -95 percent increase over the EPS one Year Ago The consensus earnings per share forecast is 1.39 per share, which represents a 129 percent increase over the EPS one Year Ago | Apple Inc. (AAPL) is -0.22 at $170.07, with 2,368,625 shares traded.AAPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. The consensus earnings per share forecast is -0.76 per share, which represents a -95 percent increase over the EPS one Year Ago The consensus earnings per share forecast is 1.39 per share, which represents a 129 percent increase over the EPS one Year Ago | Apple Inc. (AAPL) is -0.22 at $170.07, with 2,368,625 shares traded.AAPL is scheduled to provide an earnings report on 11/2/2023, for the fiscal quarter ending Sep2023. Amazon.com, Inc. (AMZN) is -0.09 at $132.64, with 1,984,954 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. |
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12863.0 | 2023-10-29 00:00:00 UTC | 3 No-Brainer Vanguard ETFs to Buy Now | AAPL | https://www.nasdaq.com/articles/3-no-brainer-vanguard-etfs-to-buy-now | Exchange-traded funds, or ETFs for short, can be wonderful investing vehicles. ETFs are cost and tax-efficient, trade-like individual stocks, and can provide instant diversification across a wide swath of the broader market, or within a specific theme. Not all ETFs are table-pounding buys, however. Some funds come with hefty expense ratios, which can diminish future returns.
Fortunately, there is a simple solution to this problem: Vanguard ETFs. Vanguard ETFs are designed to be investor friendly, evinced by their remarkably low expensive ratios. In fact, the firm's broad family of ETFs sport expense ratios that are 80% lower, on average, compared to the broader industry. Best of all, most Vanguard funds have 10-year performance records comparable, and often superior, to many actively managed funds, or even other types of passively managed funds.
Image Source: Getty Images.
Which low-cost Vanguard funds are no-brainer buys right now? If you have a 10 to 20-year investing horizon, the following three funds ought to be on your radar right now.
Vanguard Dividend Appreciation Index Fund
Although dividend investing hasn't been a winning strategy in 2023 due to sticky inflation, dramatic interest rate hikes, and the possibility of a recession, companies that frequently boost their dividend have a proven track record as top capital appreciation vehicles over long periods of time (10 to 20 years).
This strategy, known as dividend growth investing, isn't new by any stretch of the imagination but it is highly effective. The one drawback associated with it is that sometimes companies with normally reliable dividends get hit with an unexpected setback, resulting in slower dividend growth, or worse still, a dividend reduction. This is where dividend appreciation ETFs come into play.
The Vanguard Dividend Appreciation Index Fund (NYSEMKT: VIG) (aka VIG) tracks the performance of the S&P U.S. Dividend Growers Index. The VIG comes with a tiny expense ratio of 0.06%, it only requires a minimal investment of $1, and it has delivered phenomenal returns over the prior 10 years (up 172.4%).
The VIG's top five holdings (in rank order) are Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), ExxonMobil, UnitedHealth Group, and JPMorgan Chase. Most of its holdings are large to mega-cap companies with enormous cash positions, healthy free cash flows, and reasonable levels of debt. As such, this low-cost ETF provides exposure to a wide range of blue chip companies, making it an ultra-low-risk dividend growth vehicle.
Vanguard 500 Index Fund
Stock investing doesn't have to be difficult. Many of the best investors in the world – including Warren Buffett – have often advised average investors to keep it simple by regularly buying shares of a low-cost index fund that tracks the benchmark S&P 500. The Vanguard 500 Index Fund (NYSEMKT: VOO), or VOO, ticks both of those boxes.
The fund invests in companies in the S&P 500 and it comes with an ultra-low expense ratio of 0.03%. Its five top holdings are Apple, Microsoft, Amazon, Nvidia, and Alphabet. Over the past 10 years, the VOO has delivered cumulative returns in excess of 200% for shareholders. That's a pretty amazing return on investment for a passive index fund.
Vanguard Growth Index Fund
Want exposure to some of the most innovative and fastest-growing companies on the planet? Meet the Vanguard Growth Index Fund (NYSEMKT: VUG), or VUG in common parlance. The VUG tracks the CRSP US Large Cap Growth Index and it comes with a bargain basement expense ratio of 0.04%. Since its inception in 2004, this large-cap growth ETF has delivered a blistering 544% total return on investment for shareholders. This year, the fund has dramatically outperformed the broader market, posting a remarkable 23.7% total return year-to-date.
VUG Total Return Level data by YCharts
What's in the VUG? The fund's top five holdings consist of Apple, Microsoft, Amazon, Nvidia, and Alphabet. Now, the VUG does lean heavily into pricey tech stocks, and some of these names may be due for a pullback from recent highs. Over the long term, though, these financially sound growth companies should continue to deliver strong top and bottom-line growth. The VUG, for its part, allows investors an easy way to benefit from this underlying growth trend without having to pick favorites.
10 stocks we like better than Vanguard Index Funds-Vanguard Growth ETF
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. George Budwell has positions in Apple and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, JPMorgan Chase, Microsoft, Nvidia, Vanguard Index Funds-Vanguard Growth ETF, Vanguard S&P 500 ETF, and Vanguard Specialized Funds-Vanguard Dividend Appreciation ETF. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The VIG's top five holdings (in rank order) are Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), ExxonMobil, UnitedHealth Group, and JPMorgan Chase. ETFs are cost and tax-efficient, trade-like individual stocks, and can provide instant diversification across a wide swath of the broader market, or within a specific theme. In fact, the firm's broad family of ETFs sport expense ratios that are 80% lower, on average, compared to the broader industry. | The VIG's top five holdings (in rank order) are Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), ExxonMobil, UnitedHealth Group, and JPMorgan Chase. The Vanguard Dividend Appreciation Index Fund (NYSEMKT: VIG) (aka VIG) tracks the performance of the S&P U.S. Dividend Growers Index. Meet the Vanguard Growth Index Fund (NYSEMKT: VUG), or VUG in common parlance. | The VIG's top five holdings (in rank order) are Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), ExxonMobil, UnitedHealth Group, and JPMorgan Chase. Vanguard Dividend Appreciation Index Fund Although dividend investing hasn't been a winning strategy in 2023 due to sticky inflation, dramatic interest rate hikes, and the possibility of a recession, companies that frequently boost their dividend have a proven track record as top capital appreciation vehicles over long periods of time (10 to 20 years). The Vanguard Dividend Appreciation Index Fund (NYSEMKT: VIG) (aka VIG) tracks the performance of the S&P U.S. Dividend Growers Index. | The VIG's top five holdings (in rank order) are Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), ExxonMobil, UnitedHealth Group, and JPMorgan Chase. Vanguard 500 Index Fund Stock investing doesn't have to be difficult. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Vanguard Index Funds-Vanguard Growth ETF wasn't one of them! |
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12870.0 | 2023-10-28 00:00:00 UTC | Verizon's Stock Is Now Too Good to Pass Up | AAPL | https://www.nasdaq.com/articles/verizons-stock-is-now-too-good-to-pass-up | Verizon's (NYSE: VZ) period of worsening cash flow and investment in the 5G network is turning around, and the cash flow machine is starting to work in overdrive. Third-quarter 2023 results showed continued improvements across the board for the business, and the single-digit price-to-earnings multiple and dividend yield of over 7% now seem too good to pass up.
In this video, Travis Hoium goes over the results and covers why he's so bullish on the stock.
*Stock prices used were end-of-day prices of Oct. 24, 2023. The video was published on Oct. 25, 2023.
10 stocks we like better than Verizon Communications
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Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool has positions in and recommends Apple and Walt Disney. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy. Travis Hoium 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. | Third-quarter 2023 results showed continued improvements across the board for the business, and the single-digit price-to-earnings multiple and dividend yield of over 7% now seem too good to pass up. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Verizon Communications wasn't one of them! | See the 10 stocks *Stock Advisor returns as of October 23, 2023 Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool has positions in and recommends Apple and Walt Disney. The Motley Fool recommends Verizon Communications. | 10 stocks we like better than Verizon Communications When our analyst team has a stock tip, it can pay to listen. 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 October 23, 2023 Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. | See the 10 stocks *Stock Advisor returns as of October 23, 2023 Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool recommends Verizon Communications. Their opinions remain their own and are unaffected by The Motley Fool. |
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12883.0 | 2023-10-27 00:00:00 UTC | Tata to make iPhones in India after buying Wistron business | AAPL | https://www.nasdaq.com/articles/tata-to-make-iphones-in-india-after-buying-wistron-business | NEW DELHI, Oct 27 (Reuters) - Tata Group is set to start assembling Apple AAPL.O iPhones in India after Wistron Corp 3231.TW approved the sale of its Indian manufacturing unit to the salt-to-software conglomerate, a minister said on Friday.
A Tata company will start making iPhones in India for domestic and global markets, Deputy Minister for Information Technology Rajeev Chandrasekhar said on social media platform X.
The Wistron board approved the sale of Wistron InfoComm Manufacturing India Private Limited to Tata Electronics Private Limited for an estimated $125 million, according to a statement from the Taiwan-based supplier shared by the minister.
Wistron did not immediately respond to requests for comment.
Apple has been touting India as its next big growth driver as it looks to move some production away from China.
The tech giant began iPhone assembly in the country with Wistron in 2017, before expanding through contracts with firms including Foxconn 2354.TW, and Pegatron Corp 4938.TW.
In December 2020, the Wistron plant in Karnataka state's Narasapura was forced to shut for three months after workers destroyed property during protests over non-payment of wages, causing millions of dollars in losses.
(Reporting by Munsif Vengattil; Writing by Blassy Boben; Editing by Alexander Smith)
(([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. | NEW DELHI, Oct 27 (Reuters) - Tata Group is set to start assembling Apple AAPL.O iPhones in India after Wistron Corp 3231.TW approved the sale of its Indian manufacturing unit to the salt-to-software conglomerate, a minister said on Friday. A Tata company will start making iPhones in India for domestic and global markets, Deputy Minister for Information Technology Rajeev Chandrasekhar said on social media platform X. In December 2020, the Wistron plant in Karnataka state's Narasapura was forced to shut for three months after workers destroyed property during protests over non-payment of wages, causing millions of dollars in losses. | NEW DELHI, Oct 27 (Reuters) - Tata Group is set to start assembling Apple AAPL.O iPhones in India after Wistron Corp 3231.TW approved the sale of its Indian manufacturing unit to the salt-to-software conglomerate, a minister said on Friday. A Tata company will start making iPhones in India for domestic and global markets, Deputy Minister for Information Technology Rajeev Chandrasekhar said on social media platform X. The Wistron board approved the sale of Wistron InfoComm Manufacturing India Private Limited to Tata Electronics Private Limited for an estimated $125 million, according to a statement from the Taiwan-based supplier shared by the minister. | NEW DELHI, Oct 27 (Reuters) - Tata Group is set to start assembling Apple AAPL.O iPhones in India after Wistron Corp 3231.TW approved the sale of its Indian manufacturing unit to the salt-to-software conglomerate, a minister said on Friday. The Wistron board approved the sale of Wistron InfoComm Manufacturing India Private Limited to Tata Electronics Private Limited for an estimated $125 million, according to a statement from the Taiwan-based supplier shared by the minister. (Reporting by Munsif Vengattil; Writing by Blassy Boben; Editing by Alexander Smith) (([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. | NEW DELHI, Oct 27 (Reuters) - Tata Group is set to start assembling Apple AAPL.O iPhones in India after Wistron Corp 3231.TW approved the sale of its Indian manufacturing unit to the salt-to-software conglomerate, a minister said on Friday. A Tata company will start making iPhones in India for domestic and global markets, Deputy Minister for Information Technology Rajeev Chandrasekhar said on social media platform X. Wistron did not immediately respond to requests for comment. |
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12894.0 | 2023-10-26 00:00:00 UTC | Is WisdomTree U.S. Quality Dividend Growth ETF (DGRW) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-wisdomtree-u.s.-quality-dividend-growth-etf-dgrw-a-strong-etf-right-now-9 | Launched on 05/22/2013, the WisdomTree U.S. Quality Dividend Growth ETF (DGRW) 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?
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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
DGRW is managed by Wisdomtree, and this fund has amassed over $9.75 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. DGRW seeks to match the performance of the WisdomTree U.S. Quality Dividend Growth Index before fees and expenses.
The WisdomTree U.S. Quality Dividend Growth Index is a fundamentally weighted index that consists of dividend-paying stocks with growth characteristics.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Annual operating expenses for DGRW are 0.28%, which makes it on par with most peer products in the space.
DGRW's 12-month trailing dividend yield is 1.94%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
DGRW's heaviest allocation is in the Information Technology sector, which is about 30.20% of the portfolio. Its Consumer Staples and Industrials round out the top three.
Taking into account individual holdings, Microsoft Corp (MSFT) accounts for about 8.85% of the fund's total assets, followed by Apple Inc (AAPL) and Broadcom Inc (AVGO).
DGRW's top 10 holdings account for about 35.91% of its total assets under management.
Performance and Risk
Year-to-date, the WisdomTree U.S. Quality Dividend Growth ETF has added roughly 5.32% so far, and is up about 9.32% over the last 12 months (as of 10/26/2023). DGRW has traded between $58.09 and $68.50 in this past 52-week period.
DGRW has a beta of 0.88 and standard deviation of 14.67% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 297 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. Quality Dividend Growth ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $22.54 billion in assets, Vanguard Dividend Appreciation ETF has $65.20 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.06%.
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
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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WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
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Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports
iShares Core Dividend Growth ETF (DGRO): ETF Research Reports
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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. | Taking into account individual holdings, Microsoft Corp (MSFT) accounts for about 8.85% of the fund's total assets, followed by Apple Inc (AAPL) and Broadcom Inc (AVGO). Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Launched on 05/22/2013, the WisdomTree U.S. Quality Dividend Growth ETF (DGRW) 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 WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Microsoft Corp (MSFT) accounts for about 8.85% of the fund's total assets, followed by Apple Inc (AAPL) and Broadcom Inc (AVGO). Launched on 05/22/2013, the WisdomTree U.S. Quality Dividend Growth ETF (DGRW) 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 WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Microsoft Corp (MSFT) accounts for about 8.85% of the fund's total assets, followed by Apple Inc (AAPL) and Broadcom Inc (AVGO). Launched on 05/22/2013, the WisdomTree U.S. Quality Dividend Growth ETF (DGRW) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market. | Taking into account individual holdings, Microsoft Corp (MSFT) accounts for about 8.85% of the fund's total assets, followed by Apple Inc (AAPL) and Broadcom Inc (AVGO). Click to get this free report WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Launched on 05/22/2013, the WisdomTree U.S. Quality Dividend Growth ETF (DGRW) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market. |
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12936.0 | 2023-10-25 00:00:00 UTC | NEWSMAKER-Foxconn founder Terry Gou lies low in Taiwan election as China tax probe reverberates | AAPL | https://www.nasdaq.com/articles/newsmaker-foxconn-founder-terry-gou-lies-low-in-taiwan-election-as-china-tax-probe | TAIPEI, Oct 25 (Reuters) - After mastering making iPhones, Taiwan's Terry Gou, the billionaire founder of major Apple APPL.O supplier Foxconn 2317.TW, wanted to turn his entrepreneurial skills elsewhere - to be the island's next president.
But three months out from the election, Gou, whose net worth is estimated by Forbes at $6.7 billion, has gone to ground.
He last appeared at a campaign event on Sunday night, the day a Chinese newspaper said authorities had begun a tax probe into Foxconn's operations in China, even though he stepped back from running the world's largest contract manufacturer four years ago.
He cancelled a Monday event without explanation and had no public arrangements for Tuesday or Wednesday, unusual given the previous frequency of his rallies.
The tax investigation was first reported by the state-backed, strongly nationalist Chinese tabloid the Global Times, but in its English version of the story it suggested what China was actually unhappy with was Gou running for president as an independent, a decision he announced in August.
That was because, the paper said, Gou would split the opposition vote and "in the end favour secessionist" Taiwan Vice President Lai Ching-te, making his victory more certain.
China claims Taiwan as its own and believes Lai, who leads opinion polls, is a separatist bent on a formal declaration of independence. Lai says he will maintain the status quo and that only Taiwan's people can decide their future.
Since the Global Times report came out, Gou's team has declined to comment, referring questions to Foxconn itself.
Gou, 72, has continued to post on his Facebook account, but not mentioned the probe.
Late on Tuesday, Gou posted about late Apple founder Steve Jobs, whom he called his idol, and how he "cherished" their relationship even with often tricky requests when it came to making iPhones.
"If I had thought of quitting because Steve Jobs was too picky and the tasks given by Apple were too difficult, and had given up on doing Apple orders, I would have probably lost a great opportunity to participate in Apple's innovation in the future," he wrote.
"Think big, but don't lose sight of details - this is the personality trait I noticed in Jobs. This is the trait in recent years I have come to expect in myself and encourage in every colleague around me."
Foxconn said in a statement on Sunday legal compliance was a "fundamental principle" of its operations, and it would "actively cooperate with the relevant units on the related work and operations".
'TAIWAN'S CEO'
Gou has positioned himself as "Taiwan's CEO" saying he wants to unite a fractured opposition amid rising tensions with China, which he blames on the ruling Democratic Progressive Party's (DPP) hostility to Beijing.
The DPP-led government has repeatedly offered talks with Beijing, but been rebuffed, and has blamed China for the tensions.
But Gou has languished in the polls and the two main opposition parties, the Kuomintang and Taiwan People's Party, have instead been talking to each other about a possible joint ticket, though those talks have foundered.
Gou was not born wealthy. After graduating from university, he worked in a series of factory jobs, as Taiwan in the late 1960s and early 1970s began using its cheap labour force to churn out consumer goods for the rich Western world.
He founded Hon Hai Precision Industry Co Ltd, better known as Foxconn, in 1974 with 11 elderly workers and a $7,500 loan from his mother. He first made cheap plastic parts for black-and-white television sets for a Chicago TV manufacturer, before a major deal in 1980 making joystick connectors for Atari games consoles.
In 2000, Foxconn won an order to make Apple's redesigned iMacs, after making a variety of parts for the likes of U.S. personal computer vendor Dell.
Foxconn eventually became one of the world's largest private-sector employers with at times over a million workers assembling devices for global brands such as Sony Corp 6758.T, Nintendo Co Ltd 7974.T and Microsoft Corp MSFT.O.
Gou remains a lauded figure at Foxconn after stepping down as chairman in 2019, referred to reverentially as "the founder".
His connections reached as high as Chinese President Xi Jinping, whom he met in 2014 in Beijing, and whom in 2017 he described as a great leader, Taiwan media reported.
Gou's parents were born in China and were of the generation that fled to Taiwan after the Communists won China's civil war in 1949, a year before Gou's birth on the island.
In an interview with the Communist Party's official People's Daily in 2018 to mark China's 40th anniversary of landmark economic reform, Gou said he was happy to have witnessed the changes.
Earlier this year, Gou vowed to start negotiations with China if he was elected president on the basis that both sides belong to one single China but each can interpret what that means.
Still, in August when announcing his run he struck a tougher tone when asked if his Foxconn shareholdings meant China could simply tell him what to do if he became president.
"I have never been under the control of the People's Republic of China," he said. "I don't follow their instructions."
FACTBOX-Who is running to be Taiwan's next president?
(Reporting by Ben Blanchard; Editing by Sonali Paul)
(([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, Oct 25 (Reuters) - After mastering making iPhones, Taiwan's Terry Gou, the billionaire founder of major Apple APPL.O supplier Foxconn 2317.TW, wanted to turn his entrepreneurial skills elsewhere - to be the island's next president. He last appeared at a campaign event on Sunday night, the day a Chinese newspaper said authorities had begun a tax probe into Foxconn's operations in China, even though he stepped back from running the world's largest contract manufacturer four years ago. The tax investigation was first reported by the state-backed, strongly nationalist Chinese tabloid the Global Times, but in its English version of the story it suggested what China was actually unhappy with was Gou running for president as an independent, a decision he announced in August. | TAIPEI, Oct 25 (Reuters) - After mastering making iPhones, Taiwan's Terry Gou, the billionaire founder of major Apple APPL.O supplier Foxconn 2317.TW, wanted to turn his entrepreneurial skills elsewhere - to be the island's next president. He last appeared at a campaign event on Sunday night, the day a Chinese newspaper said authorities had begun a tax probe into Foxconn's operations in China, even though he stepped back from running the world's largest contract manufacturer four years ago. Late on Tuesday, Gou posted about late Apple founder Steve Jobs, whom he called his idol, and how he "cherished" their relationship even with often tricky requests when it came to making iPhones. | TAIPEI, Oct 25 (Reuters) - After mastering making iPhones, Taiwan's Terry Gou, the billionaire founder of major Apple APPL.O supplier Foxconn 2317.TW, wanted to turn his entrepreneurial skills elsewhere - to be the island's next president. The tax investigation was first reported by the state-backed, strongly nationalist Chinese tabloid the Global Times, but in its English version of the story it suggested what China was actually unhappy with was Gou running for president as an independent, a decision he announced in August. Gou's parents were born in China and were of the generation that fled to Taiwan after the Communists won China's civil war in 1949, a year before Gou's birth on the island. | The tax investigation was first reported by the state-backed, strongly nationalist Chinese tabloid the Global Times, but in its English version of the story it suggested what China was actually unhappy with was Gou running for president as an independent, a decision he announced in August. Since the Global Times report came out, Gou's team has declined to comment, referring questions to Foxconn itself. Gou's parents were born in China and were of the generation that fled to Taiwan after the Communists won China's civil war in 1949, a year before Gou's birth on the island. |
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12958.0 | 2023-10-24 00:00:00 UTC | 3 AI Stocks to Buy Now to Turn $5,000 Into $15,000 | AAPL | https://www.nasdaq.com/articles/3-ai-stocks-to-buy-now-to-turn-%245000-into-%2415000 | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s nearly impossible to keep up with all the advancements in artificial intelligence (AI) stocks. In fact, as noted by TechXplore.com, “It has become nearly impossible for human researchers to keep track of the overwhelming abundance of scientific publications in the field of artificial intelligence and to stay up-to-date with advances.”
What we do know is the AI story won’t slow any time soon. Instead, the AI boom — which could be worth $1.8 trillion by 2030 — is already changing just about everything, including drug discovery, education, finances, legal issues and cyber threats. In short, the AI boom is just getting started, and there’s still plenty of money to be made from it.
Here are three hot stocks you may want to consider today.
AI Stocks: Apple (AAPL)
Source: askarim / Shutterstock
Apple (NASDAQ:AAPL) may be a $173 stock at the moment but it could easily double — even triple. That could happen while it attempts to catch up with generative AI companies, like Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN).
In fact, according to Bloomberg, Apple will spend about $1 billion a year developing generative AI products just to catch its competitors. Granted, the company uses AI in some of its products, but it hasn’t launched a generative AI product like OpenAI, for example. Right now, all we know is Apple may want to integrate AI into Siri and Apple Music.
Better, as noted by Seeking Alpha, “Apple’s software engineering teams are also reportedly looking at integrating generative AI into development tools like Xcode, which could help app developers write new applications more quickly.”
SoundHound AI (SOUN)
Source: Tada Images / Shutterstock
SoundHound AI (NASDAQ:SOUN) — which I’ve mentioned a few times — is a leader in conversational intelligence, offering voice AI solutions that allow businesses to offer conversational experiences to their customers.
Granted, that may not sound exciting but consider this.
At the moment, the company is working to integrate voice assistants into vehicles and restaurants. As I noted on June 27, both of these could bring in more than $500 million a year in revenue for the company. Even better, according to Automotive World, about 90% of new vehicles are expected to have embedded voice assistants by 2028 — another massive catalyst for SOUN.
The company also estimates its total addressable market could be up to $160 billion by 2026. Two, it is growing its revenue by 40% year-over-year. Three, SOUN is inking big deals with companies such as Oracle (NYSE:ORCL), Toast (NYSE:TOST), Block (NYSE:SQ), Hyundai (OTCMKTS:HYMTF) and Stellantis (NYSE:STLA).
Roundhill Generative AI & Technology ETF (CHAT)
Source: Andrey Suslov / Shutterstock.com
Or, if you want to diversify with 36 top generative AI stocks, look at an ETF such as Roundhill Generative AI & Technology ETF (NYSEARCA:CHAT). With an expense ratio of 0.75%, the ETF provides exposure to companies involved in generative AI and related technologies, as noted by Roundhill Investments.
Some of its top holdings include Nvidia (NASDAQ:NVDA), Microsoft, Alphabet, Adobe (NASDAQ:ADBE), Meta Platforms (NASDAQ:META) and Advanced Micro Devices (NASDAQ:AMD) — to name a few. While its chart isn’t too attractive at the moment, thanks to market volatility, give it time. With patience, we’d like to see the CHAT ETF run from its current price of $26 back to $30.50 — initially.
On the date of publication, Ian Cooper did not hold (directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
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The post 3 AI Stocks to Buy Now to Turn $5,000 Into $15,000 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AI Stocks: Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) may be a $173 stock at the moment but it could easily double — even triple. In fact, as noted by TechXplore.com, “It has become nearly impossible for human researchers to keep track of the overwhelming abundance of scientific publications in the field of artificial intelligence and to stay up-to-date with advances.” What we do know is the AI story won’t slow any time soon. Instead, the AI boom — which could be worth $1.8 trillion by 2030 — is already changing just about everything, including drug discovery, education, finances, legal issues and cyber threats. | AI Stocks: Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) may be a $173 stock at the moment but it could easily double — even triple. Better, as noted by Seeking Alpha, “Apple’s software engineering teams are also reportedly looking at integrating generative AI into development tools like Xcode, which could help app developers write new applications more quickly.” SoundHound AI (SOUN) Source: Tada Images / Shutterstock SoundHound AI (NASDAQ:SOUN) — which I’ve mentioned a few times — is a leader in conversational intelligence, offering voice AI solutions that allow businesses to offer conversational experiences to their customers. Some of its top holdings include Nvidia (NASDAQ:NVDA), Microsoft, Alphabet, Adobe (NASDAQ:ADBE), Meta Platforms (NASDAQ:META) and Advanced Micro Devices (NASDAQ:AMD) — to name a few. | AI Stocks: Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) may be a $173 stock at the moment but it could easily double — even triple. That could happen while it attempts to catch up with generative AI companies, like Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN). Better, as noted by Seeking Alpha, “Apple’s software engineering teams are also reportedly looking at integrating generative AI into development tools like Xcode, which could help app developers write new applications more quickly.” SoundHound AI (SOUN) Source: Tada Images / Shutterstock SoundHound AI (NASDAQ:SOUN) — which I’ve mentioned a few times — is a leader in conversational intelligence, offering voice AI solutions that allow businesses to offer conversational experiences to their customers. | AI Stocks: Apple (AAPL) Source: askarim / Shutterstock Apple (NASDAQ:AAPL) may be a $173 stock at the moment but it could easily double — even triple. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It’s nearly impossible to keep up with all the advancements in artificial intelligence (AI) stocks. In fact, according to Bloomberg, Apple will spend about $1 billion a year developing generative AI products just to catch its competitors. |
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12979.0 | 2023-10-23 00:00:00 UTC | Taiwan presidential frontrunner assails China over Foxconn probe | AAPL | https://www.nasdaq.com/articles/taiwan-presidential-frontrunner-assails-china-over-foxconn-probe | Adds quotes, details, Foxconn stock performance
TAIPEI, Oct 24 (Reuters) - Taiwan Vice President Lai Ching-te on Tuesday hit out at China over its probe of major Apple AAPL.O supplier Foxconn 2317.TW, saying Beijing should "cherish" Taiwanese companies and not put pressure on them during an election.
Foxconn is facing a tax probe in China, two sources close to the company said on Monday, confirming a report in China's state-backed Global Times.
The sources said they believed it was disclosed for political reasons tied to Taiwan's January elections where the company's founder Terry Gou is running as an independent candidate for president.
The Global Times, in an English-language story late on Sunday, said by running, Gou might split the opposition vote, potentially ensuring a victory for Lai who is already leading in the polls.
Beijing detests Lai, whom it believes is a separatist. He says only Taiwan's people can decide their future, and Beijing has rebuffed his offers of talks.
Speaking at a news conference in Taipei and asked about Beijing's probe into Foxconn, Lai said China should "cherish and treasure" Taiwanese companies given their help in that country's economic development.
Foxconn's shares extended their declines on Tuesday, down more than 2% during mid-morning trade compared to a flat broader market .TWII. Shares closed 2.9% lower on Monday.
(Reporting by Ben Blanchard and Jeanny Kao; Editing by Jacqueline Wong and 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. | Adds quotes, details, Foxconn stock performance TAIPEI, Oct 24 (Reuters) - Taiwan Vice President Lai Ching-te on Tuesday hit out at China over its probe of major Apple AAPL.O supplier Foxconn 2317.TW, saying Beijing should "cherish" Taiwanese companies and not put pressure on them during an election. The sources said they believed it was disclosed for political reasons tied to Taiwan's January elections where the company's founder Terry Gou is running as an independent candidate for president. The Global Times, in an English-language story late on Sunday, said by running, Gou might split the opposition vote, potentially ensuring a victory for Lai who is already leading in the polls. | Adds quotes, details, Foxconn stock performance TAIPEI, Oct 24 (Reuters) - Taiwan Vice President Lai Ching-te on Tuesday hit out at China over its probe of major Apple AAPL.O supplier Foxconn 2317.TW, saying Beijing should "cherish" Taiwanese companies and not put pressure on them during an election. Foxconn is facing a tax probe in China, two sources close to the company said on Monday, confirming a report in China's state-backed Global Times. Speaking at a news conference in Taipei and asked about Beijing's probe into Foxconn, Lai said China should "cherish and treasure" Taiwanese companies given their help in that country's economic development. | Adds quotes, details, Foxconn stock performance TAIPEI, Oct 24 (Reuters) - Taiwan Vice President Lai Ching-te on Tuesday hit out at China over its probe of major Apple AAPL.O supplier Foxconn 2317.TW, saying Beijing should "cherish" Taiwanese companies and not put pressure on them during an election. Foxconn is facing a tax probe in China, two sources close to the company said on Monday, confirming a report in China's state-backed Global Times. Speaking at a news conference in Taipei and asked about Beijing's probe into Foxconn, Lai said China should "cherish and treasure" Taiwanese companies given their help in that country's economic development. | Adds quotes, details, Foxconn stock performance TAIPEI, Oct 24 (Reuters) - Taiwan Vice President Lai Ching-te on Tuesday hit out at China over its probe of major Apple AAPL.O supplier Foxconn 2317.TW, saying Beijing should "cherish" Taiwanese companies and not put pressure on them during an election. Foxconn is facing a tax probe in China, two sources close to the company said on Monday, confirming a report in China's state-backed Global Times. The sources said they believed it was disclosed for political reasons tied to Taiwan's January elections where the company's founder Terry Gou is running as an independent candidate for president. |
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13002.0 | 2023-10-22 00:00:00 UTC | Where Will TSMC Stock Be in 1 Year? | AAPL | https://www.nasdaq.com/articles/where-will-tsmc-stock-be-in-1-year-1 | TSMC's (NYSE: TSM) stock popped 4% on Oct. 19 after the chipmaking giant posted its third-quarter earnings report. Its revenue declined 15% year over year to $17.28 billion but exceeded analysts' expectations by $580 million. Its earnings per ADS slipped 28% in U.S. dollar terms to $1.29, but also cleared the consensus forecast by $0.13.
TSMC's slowdown wasn't surprising, since the semiconductor market has been stuck in the mud over the past year. But over the past 12 months TSMC's stock has rallied nearly 50% in anticipation of its eventual recovery. Will those tailwinds kick in over the next 12 months and drive TSMC's stock back toward its all-time highs?
Image source: TSMC.
Focus on the sequential improvements
As the world's largest and most advanced contract chipmaker, TSMC's growth generally follows the broader semiconductor market. Over the past year, the post-pandemic slowdown of the PC market, the cooling upgrade cycle in 5G smartphones, and other macro headwinds throttled the market's demand for new chips. Western export curbs on advanced chip sales to China exacerbated that cyclical slowdown.
That's why TSMC's revenue declined year over year for three consecutive quarters. But on a sequential basis, its revenue actually rose 10% in the third quarter. It expects its revenue to rise another 11.1% sequentially in the fourth quarter. That quarter-over-quarter growth suggests the semiconductor market is finally bottoming out.
METRIC
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Revenue Growth (QOQ)
11.4%
(1.5%)
(16.1%)
(6.2%)
10.2%
Revenue Growth (YOY)
35.9%
26.7%
(4.8%)
(13.7%)
(14.6%)
Data source: TSMC. USD terms. QOQ = Quarter-over-quarter. YOY = Year-over-year.
TSMC is still heavily dependent on the smartphone market, which accounted for 39% of its revenue during the third quarter, as well as its largest customer Apple (NASDAQ: AAPL). But according to IDC, global smartphone shipments could rise 5.9% in 2024 -- compared to a 1.1% decline in 2023 -- as the macro environment improves.
TSMC also produces chips for high-performance computing (HPC) clients like Nvidia (NASDAQ: NVDA). That market accounted for 42% of its top line -- up three percentage points from a year ago -- as the AI market expanded.
Production of newer chips will squeeze margins
TSMC's gross margin expanded sequentially in the third quarter as higher utilization rates and favorable exchange rates offset the higher costs from its production of 3nm chips. However, higher R&D expenses from the development of its latest 3nm and 2nm chips still reduced its operating margin sequentially and year over year.
METRIC
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Gross Margin
60.4%
62.2%
56.3%
54.1%
54.3%
Operating Margin
50.6%
52%
45.5%
42%
41.7%
Data source: TSMC.
For the fourth quarter, TSMC expects its gross margin to dip to 51.5%-53.5% as its operating margin drops to 39.5%-41.5%. But that compression isn't surprising, since it needs to ramp up its spending to start mass producing 2nm chips by 2025.
TSMC remains ahead of Intel in the process race
One of the main threats to TSMC's market dominance is Intel (NASDAQ: INTC), which believes it can catch up to TSMC in the "process race" to manufacture smaller, denser, and more power-efficient chips by 2025. However, all of the latest developments suggest TSMC remains at least one full chip generation ahead of Intel.
TSMC started mass producing 3nm chips in late 2022, and generated 6% of its total revenue from those top-tier chips in the third quarter of 2023. Intel doesn't plan to launch its comparable "Intel 3" chips -- which are technically 5nm chips that provide transistor density and performance comparable to that of TSMC's 3nm node -- until 2024.
TSMC generated 37% of its revenue from its 5nm chips and another 16% from its 7nm chips during the third quarter. The remaining 41% came from its older and larger nodes.
Where will TSMC's stock be in a year?
TSMC's fourth-quarter guidance implies its revenue will dip about 9% in USD terms for the full year, compared to analysts' expectations for a 13% decline. Analysts are expecting its earnings per ADS to drop 25%.
But in 2024 they expect its revenue (based on TSMC's own full-year forecast) and earnings to grow 17% and 21%, respectively, as the semiconductor market warms up again. That's a bright outlook for a stock that trades at just 16 times forward earnings. Intel, which faces more headwinds than TSMC, has a forward multiple of 20.
Therefore, barring a major escalation of trade and military tensions between China and Taiwan, I believe TSMC's stock should head higher over the next 12 months. It faces some near-term challenges as it ramps up its development of 2nm chips, but it's still the "best in breed" play on the secular growth of the semiconductor sector.
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Leo Sun has positions in Apple. The Motley Fool has positions in and recommends Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. 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. | TSMC is still heavily dependent on the smartphone market, which accounted for 39% of its revenue during the third quarter, as well as its largest customer Apple (NASDAQ: AAPL). Focus on the sequential improvements As the world's largest and most advanced contract chipmaker, TSMC's growth generally follows the broader semiconductor market. TSMC's fourth-quarter guidance implies its revenue will dip about 9% in USD terms for the full year, compared to analysts' expectations for a 13% decline. | TSMC is still heavily dependent on the smartphone market, which accounted for 39% of its revenue during the third quarter, as well as its largest customer Apple (NASDAQ: AAPL). Revenue Growth (QOQ) 11.4% (1.5%) (16.1%) (6.2%) 10.2% Revenue Growth (YOY) 35.9% 26.7% (4.8%) (13.7%) (14.6%) Data source: TSMC. However, all of the latest developments suggest TSMC remains at least one full chip generation ahead of Intel. | TSMC is still heavily dependent on the smartphone market, which accounted for 39% of its revenue during the third quarter, as well as its largest customer Apple (NASDAQ: AAPL). Production of newer chips will squeeze margins TSMC's gross margin expanded sequentially in the third quarter as higher utilization rates and favorable exchange rates offset the higher costs from its production of 3nm chips. TSMC remains ahead of Intel in the process race One of the main threats to TSMC's market dominance is Intel (NASDAQ: INTC), which believes it can catch up to TSMC in the "process race" to manufacture smaller, denser, and more power-efficient chips by 2025. | TSMC is still heavily dependent on the smartphone market, which accounted for 39% of its revenue during the third quarter, as well as its largest customer Apple (NASDAQ: AAPL). Revenue Growth (QOQ) 11.4% (1.5%) (16.1%) (6.2%) 10.2% Revenue Growth (YOY) 35.9% 26.7% (4.8%) (13.7%) (14.6%) Data source: TSMC. However, all of the latest developments suggest TSMC remains at least one full chip generation ahead of Intel. |
||
13008.0 | 2023-10-21 00:00:00 UTC | 3 Top Stocks To Buy Now and Hold Forever | AAPL | https://www.nasdaq.com/articles/3-top-stocks-to-buy-now-and-hold-forever-0 | It was a chaotic end to the trading week on Friday, as investors considered the latest round of troubling headlines. With geopolitical tensions flaring in the Middle East, trade rhetoric ramping up again between the U.S. and China, and hawkish comments from Fed Chair Jerome Powell all hitting the market, the 10-year yield soared over 5% for the first time since 2007, while “safe haven” gold futures (GCZ23) spiked above $2,000 an ounce on rising risk aversion.
While it may seem counterintuitive, buying top-quality stocks on market pullbacks is often one of the best strategies for investors with a long-term mindset. By seeking out companies with strong fundamentals, dominant market positions, and proven track records of navigating through various business cycles, investors can take advantage of the opportunity to snap up these blue chips at a relative discount.
In this piece, we'll highlight three top “forever” stocks with impressive histories of success, top analyst ratings, and solid dividends to help shore up your portfolio - now and indefinitely.
Apple
This Cupertino, Calif.-based tech behemoth hardly needs any introduction. Having revolutionized the tech industry with its innovative products - headlined by the iPhone - Apple (AAPL) has been a ubiquitous brand for decades, and is still going strong.
Along with its hardware, Apple's subscription-based services - like Apple Music, Apple TV, and Apple Arcade - have also gained huge popularity over the years. The most valuable publicly listed company in the world, Apple's market cap currently stands at a gigantic $2.74 trillion.
Apple stock, which offers a dividend yield of 0.54%, is up 33% on a YTD basis.
www.barchart.com
Although a slowdown in iPhone sales troubled investors last quarter, Apple's EPS still managed to beat expectations. The company reported earnings of $1.26, up 5% from the prior year, and better than the consensus estimate of $1.20. Net sales of $81.8 billion were down 14% from the prior year, but edged past the consensus forecast. Notably, the company's EPS has surpassed expectations in four out of the past five quarters.
Further, Apple continues to make strides in the buzzy generative artificial intelligence (AI) space, albeit in a lowkey manner. With 2 billion active devices worldwide, the iPhone presents a ready market for Apple's impending AI tools. Apple is apparently spending millions of dollars daily to develop a conversational AI model along the lines of Open AI's ChatGPT, and a Bloomberg report says the so-called Apple GPT is more powerful than OpenAI's GPT 3.5 model.
Analysts have a “Moderate Buy” rating on the stock with a mean target price of $206.03. This indicates an upside potential of roughly 18% from current levels. Out of 29 analysts covering the stock, 17 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, and 9 have a “Hold” rating.
www.barchart.com
Microsoft
We continue our list with another tech titan, the software giant Microsoft (MSFT). Microsoft, most popular for its Windows operating system for computers, has expanded its range of offerings over the years with productivity applications, business software, and video games. The company is also a major player in the enterprise cloud computing market with its Azure platform.
With a massive market cap of $2.46 trillion, Microsoft continues to dominate with its legacy product suite - and remains at the forefront of the tech revolution through its major investments in the exciting field of AI, as well.
Microsoft's share price has zoomed 37.1% so far in 2023. The stock also offers a dividend yield of 0.82%, and Microsoft recently raised its dividend by 10%.
www.barchart.com
In its fiscal Q4, Microsoft reported revenues of $56.2 billion - up 8% from the previous year on robust cloud revenues of $30.3 billion (up 21% YoY). EPS came in at $2.69, up 20.6% from the year-ago period. Just like Apple, Microsoft has topped analysts' EPS estimates in four out of the past five quarters, with its next quarterly release set for Oct. 24.
Microsoft's AI credentials are significant. Following its multi-billion dollar investment in ChatGPT maker OpenAI, Microsoft has been steadily integrating AI into its suite of Office 365 products. This is expected to increase business productivity substantially for the existing user base of 345 million. Plus, its search engine Bing's integration with OpenAI's ChatGPT could result in it becoming a serious challenger to Google in the search engine market in the upcoming years.
Analysts are unsurprisingly upbeat about MSFT, assigning it a “Strong Buy” rating with a mean target price of $384.71. This indicates an upside potential of roughly 17% from current levels. Out of 35 analysts covering the stock, 29 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, and 3 have a “Hold” rating.
www.barchart.com
Visa
We wrap up our list with payments giant Visa (V). Founded in 1958, Visa is a global payments technology company that connects consumers, businesses, financial institutions, and governments in over 200 countries and territories. It processes over 200 billion transactions annually and has a global network of over 80 million merchants. Its market cap currently stands at $435.31 billion.
Visa's share price is up nearly 13% on a YTD basis, and it offers a dividend yield of 0.77%.
www.barchart.com
Visa's fiscal Q3 revenues of $8.12 billion were up 12% from the prior year. Meanwhile, its EPS of $2.16 rose by 9% from the previous year, and managed to surpass the consensus estimate of $2.12. The company also reported 9% and 10% improvement in payment volume and processed transactions, respectively, for Q3 2023.
In fact, Visa's EPS has beaten expectations in each of the past five quarters, with the credit card issuer set to release its next quarterly results on Oct. 24.
Visa is a true market leader in the payments space, with a 61% share in issuing debit and credit cards in the U.S. Although a projected rise in credit card delinquencies due to rising debt has the potential to become a concern for the company, its strong liquidity position ($15.6 billion cash reserves) along with its industry-high gross margins leave Visa well-positioned to navigate the environment.
Meanwhile, Visa also recently launched a $100 million AI initiative that will invest in companies focused on developing generative AI technologies and applications to make the processing of payments easier for users.
Analysts have an overall rating of “Strong Buy” for Visa, with a mean target price of $260.85. This denotes an upside potential of roughly 11.8% from current levels. Out of 24 analysts covering the stock, 17 have a “Strong Buy” rating, 4 have a “Moderate Buy” rating, and 3 have a “Hold” 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. | Having revolutionized the tech industry with its innovative products - headlined by the iPhone - Apple (AAPL) has been a ubiquitous brand for decades, and is still going strong. With geopolitical tensions flaring in the Middle East, trade rhetoric ramping up again between the U.S. and China, and hawkish comments from Fed Chair Jerome Powell all hitting the market, the 10-year yield soared over 5% for the first time since 2007, while “safe haven” gold futures (GCZ23) spiked above $2,000 an ounce on rising risk aversion. By seeking out companies with strong fundamentals, dominant market positions, and proven track records of navigating through various business cycles, investors can take advantage of the opportunity to snap up these blue chips at a relative discount. | Having revolutionized the tech industry with its innovative products - headlined by the iPhone - Apple (AAPL) has been a ubiquitous brand for decades, and is still going strong. Out of 29 analysts covering the stock, 17 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, and 9 have a “Hold” rating. Out of 35 analysts covering the stock, 29 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, and 3 have a “Hold” rating. | Having revolutionized the tech industry with its innovative products - headlined by the iPhone - Apple (AAPL) has been a ubiquitous brand for decades, and is still going strong. Out of 29 analysts covering the stock, 17 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, and 9 have a “Hold” rating. Out of 35 analysts covering the stock, 29 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, and 3 have a “Hold” rating. | Having revolutionized the tech industry with its innovative products - headlined by the iPhone - Apple (AAPL) has been a ubiquitous brand for decades, and is still going strong. www.barchart.com Although a slowdown in iPhone sales troubled investors last quarter, Apple's EPS still managed to beat expectations. www.barchart.com Visa We wrap up our list with payments giant Visa (V). |
||
13020.0 | 2023-10-20 00:00:00 UTC | "Magnificent Seven" Earnings Underway: ETFs in Spotlight | AAPL | https://www.nasdaq.com/articles/magnificent-seven-earnings-underway%3A-etfs-in-spotlight | We are in the thick of the third-quarter earnings season and the so-called "Magnificent Seven" are in focus. This is especially true as these have driven nearly all of the S&P 500’s 12% year-to-date gains because of their outsized weighting in the index. However, the seven stocks have stumbled in the third quarter as a surge in yields threatens to dull the allure of equities.
The seven stocks are Apple AAPL, Microsoft MSFT, Alphabet (GOOG, GOOGL), Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms META. Tesla came up with dismal results, pushing shares down by more than 9%. (read: Tesla Posts Weak Q3 Earnings: ETFs in Focus).
Among the remaining companies, some are expected to report next week and others thereafter.
Overall, the big seven companies are a big contributor to S&P earnings. Third-quarter earnings of this group of companies are expected to grow 34.9% from the same period last year on 11.2% higher revenues.
Microsoft and Alphabet are expected to release results on Oct 24 after market close, while Meta Platforms is expected to report on Oct 25. Amazon will report on Oct 26 and Apple on Nov 2. Nvidia is expected to come up with earnings on Nov 15 (see: all the Technology ETFs here).
Microsoft
Microsoft has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Microsoft saw no earnings estimate revision over the past 30 days for the to-be-reported quarter. Its earnings track is impressive, with the four-quarter earnings surprise being 5.27%, on average. The Zacks Consensus Estimate indicates earnings growth of 12.8% and modest revenue growth of 8.6% from the year-ago quarter. Microsoft belongs to a bottom-ranked Zacks industry (bottom 44%) and has shed 2.3% over the past three months. It has a solid Growth Score of B.
Alphabet
Alphabet has an Earnings ESP of +0.89% and Zacks Rank #3. It saw no earnings estimate revision over the past 30 days for the to-be-reported quarter. The company’s earnings surprise track record over the past four quarters is not good, with the negative earnings surprise being 0.91%, on average. Earnings are expected to increase 36.8%, while revenues are expected to grow 10.2% from the year-ago quarter. Alphabet has a solid Growth Score of A and falls under a top-ranked Zacks industry (top 37%). The Internet behemoth has climbed 6.7% in the last three months.
Meta Platforms
Meta Platforms has an Earnings ESP of +3.98% and Zacks Rank #3. The social media giant saw positive earnings estimate revision of 4 cents for the to-be-reported quarter over the past 30 days. Analysts raising estimates right before earnings — with the most up-to-date information possible — is a good indicator for the stock.
The current Zacks Consensus Estimate for the yet-to-be-reported quarter indicates massive year-over-year earnings growth of 117.7%. Revenues are also expected to increase 20.6%. Meta Platforms delivered an earnings surprise of 18.99%, on average, in the last four quarters. The stock has a solid Growth Score of A and belongs to a top-ranked Zacks industry (top 29%). Shares of META have surged about 6% over the past three months.
Amazon
Amazon has an Earnings ESP of 0.00% and a Zacks Rank #2. The stock saw no earnings estimate revision over the past 30 days for the third quarter. The Zacks Consensus Estimate indicates whopping year-over-year earnings growth of 190% and substantial revenue growth of 11.4% for the to-be-reported quarter. Additionally, Amazon’s earnings surprise history is impressive, with the four-quarter average surprise being 40.96%. The stock has a solid Growth Score of A but falls under a top-ranked Zacks industry (top 37%).
Apple
Apple has an Earnings ESP of 0.00% and a Zacks Rank #3. Apple saw no earnings estimate revision over the past 30 days for the fiscal fourth quarter. The iPhone maker has a strong track record of positive earnings surprise. It delivered an average earnings surprise of 2.6815% in the trailing four quarters. The Zacks Consensus Estimate indicates a modest year-over-year increase of 7.7% for earnings and a decrease of 1.3% for revenues. Apple belongs to a top-ranked Zacks Industry (top 21%) and has a solid Growth Score of B.
Nvidia
Nvidia currently has an Earnings ESP of +6.93% and a Zacks Rank #1. This videogame-gear specialist saw a positive earnings estimate revision of a couple of cents over the past 30 days for the third quarter of fiscal 2024. Nvidia’s earnings surprise history is good as it delivered an earnings surprise of 9.79%, on average, in the last four quarters. Nvidia is expected to post earnings and revenue growth of 475.9% and 171.7%, respectively, for the to-be-reported quarter. The stock belongs to a top-ranked Zacks Industry (top 21%) and has a solid Growth Score of A.
ETFs to Tap
Given this, investors may want to play these stocks with the help of ETFs. Below, we have highlighted some ETFs having the largest exposure to "Magnificent Seven."
Roundhill BIG Tech ETF (BIGT)
Roundhill BIG Tech ETF offers investors precise exposure to the “Magnificent Seven.” It has amassed $5.9 million in its asset base and charges 29 bps in fees per year. It trades in an average daily volume of 6,000 shares.
MicroSectors FANG+ ETN (FNGS)
This ETN is linked to the performance of the NYSE FANG+ Index, which is equal-dollar weighted and designed to provide exposure to a group of highly traded growth stocks of next-generation technology and tech-enabled companies. The note accounts for a 10% share in each of these seven stocks. MicroSectors FANG+ ETN has accumulated $133.3 million in its asset base and charges 58 bps in annual fees. It trades in a moderate volume of 178,000 shares a day on average and has a Zacks ETF Rank #3 (Hold) (read: 5 ETFs That Are Up More Than 40% So Far This Year).
Vanguard Mega Cap Growth ETF (MGK)
Vanguard Mega Cap Growth ETF tracks the CRSP US Mega Cap Growth Index. It holds 88 securities in its basket, with "Magnificent Seven" collectively accounting for 56.6% of the total assets. Vanguard Mega Cap Growth ETF charges 7 bps in annual fees and trades in a good volume of around 300,000 shares a day on average. The fund has AUM of $14.2 billion and a Zacks ETF Rank #2 (Buy).
Invesco S&P 500 Top 50 ETF (XLG)
Invesco S&P 500 Top 50 ETF follows the S&P 500 Top 50 ETF Index, which measures the cap-weighted performance of 50 of the largest companies on the S&P 500 Index, reflecting the performance of the U.S. mega-cap stocks. It holds 55 stocks in its basket and "Magnificent Seven" accounts for a combined 49.2% share. Invesco S&P 500 Top 50 ETF has been able to manage assets worth $2.5 billion but trades in a good volume of about 468,000 shares a day on average. XLG charges 20 bps in annual fees and has a Zacks ETF Rank #3.
iShares S&P 100 ETF (OEF)
iShares S&P 100 ETF offers exposure to 101 largest U.S. companies. "Magnificent Seven" accounts for a combined 41.1% share. iShares S&P 100 ETF has amassed $8.6 million in its asset base and charges 20 bps in annual fees. It trades in average daily volume of 185,000 shares and has a Zacks ETF Rank #3.
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Alphabet Inc. (GOOG) : Free Stock Analysis Report
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Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports
Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports
iShares S&P 100 ETF (OEF): ETF Research Reports
MicroSectors FANG+ ETN (FNGS): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
Roundhill BIG Tech ETF (BIGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The seven stocks are Apple AAPL, Microsoft MSFT, Alphabet (GOOG, GOOGL), Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms META. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports iShares S&P 100 ETF (OEF): ETF Research Reports MicroSectors FANG+ ETN (FNGS): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Roundhill BIG Tech ETF (BIGT): ETF Research Reports To read this article on Zacks.com click here. Roundhill BIG Tech ETF offers investors precise exposure to the “Magnificent Seven.” It has amassed $5.9 million in its asset base and charges 29 bps in fees per year. | The seven stocks are Apple AAPL, Microsoft MSFT, Alphabet (GOOG, GOOGL), Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms META. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports iShares S&P 100 ETF (OEF): ETF Research Reports MicroSectors FANG+ ETN (FNGS): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Roundhill BIG Tech ETF (BIGT): ETF Research Reports To read this article on Zacks.com click here. Roundhill BIG Tech ETF offers investors precise exposure to the “Magnificent Seven.” It has amassed $5.9 million in its asset base and charges 29 bps in fees per year. | Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports iShares S&P 100 ETF (OEF): ETF Research Reports MicroSectors FANG+ ETN (FNGS): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Roundhill BIG Tech ETF (BIGT): ETF Research Reports To read this article on Zacks.com click here. The seven stocks are Apple AAPL, Microsoft MSFT, Alphabet (GOOG, GOOGL), Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms META. Apple belongs to a top-ranked Zacks Industry (top 21%) and has a solid Growth Score of B. Nvidia Nvidia currently has an Earnings ESP of +6.93% and a Zacks Rank #1. | The seven stocks are Apple AAPL, Microsoft MSFT, Alphabet (GOOG, GOOGL), Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms META. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco S&P 500 Top 50 ETF (XLG): ETF Research Reports Vanguard Mega Cap Growth ETF (MGK): ETF Research Reports iShares S&P 100 ETF (OEF): ETF Research Reports MicroSectors FANG+ ETN (FNGS): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report Roundhill BIG Tech ETF (BIGT): ETF Research Reports To read this article on Zacks.com click here. Shares of META have surged about 6% over the past three months. |
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13048.0 | 2023-10-19 00:00:00 UTC | Should Fidelity Nasdaq Composite Index ETF (ONEQ) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-fidelity-nasdaq-composite-index-etf-oneq-be-on-your-investing-radar-8 | Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Fidelity Nasdaq Composite Index ETF (ONEQ) is a passively managed exchange traded fund launched on 09/25/2003.
The fund is sponsored by Fidelity. It has amassed assets over $4.85 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Further, growth stocks have a higher level of volatility associated with them. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.21%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.82%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 47% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.34% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 54.01% of total assets under management.
Performance and Risk
ONEQ seeks to match the performance of the NASDAQ Composite Index before fees and expenses. The NASDAQ Composite TR USD is the market capitalization-weighted index of over 3,300 common equities listed on the Nasdaq stock exchange.
The ETF has added roughly 28.66% so far this year and is up about 25.15% in the last one year (as of 10/19/2023). In the past 52-week period, it has traded between $40.02 and $56.43.
The ETF has a beta of 1.12 and standard deviation of 23.22% for the trailing three-year period, making it a medium risk choice in the space. With about 1200 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity Nasdaq Composite Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, ONEQ is an outstanding option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $90.59 billion in assets, Invesco QQQ has $202.94 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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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 13.34% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Fidelity Nasdaq Composite Index ETF (ONEQ) is a passively managed exchange traded fund launched on 09/25/2003. | Click to get this free report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.34% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Fidelity Nasdaq Composite Index ETF (ONEQ) is a passively managed exchange traded fund launched on 09/25/2003. | Click to get this free report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.34% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives Fidelity Nasdaq Composite Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 13.34% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report Fidelity Nasdaq Composite Index ETF (ONEQ): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the Fidelity Nasdaq Composite Index ETF (ONEQ) is a passively managed exchange traded fund launched on 09/25/2003. |
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13060.0 | 2023-10-18 00:00:00 UTC | Notable Wednesday Option Activity: AAPL, TMO, ENPH | AAPL | https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-aapl-tmo-enph | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 675,020 contracts have traded so far, representing approximately 67.5 million underlying shares. That amounts to about 125.4% of AAPL's average daily trading volume over the past month of 53.8 million shares. Particularly high volume was seen for the $175 strike put option expiring October 20, 2023, with 76,111 contracts trading so far today, representing approximately 7.6 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $175 strike highlighted in orange:
Thermo Fisher Scientific Inc (Symbol: TMO) saw options trading volume of 16,682 contracts, representing approximately 1.7 million underlying shares or approximately 123.6% of TMO's average daily trading volume over the past month, of 1.3 million shares. Particularly high volume was seen for the $560 strike put option expiring January 19, 2024, with 3,760 contracts trading so far today, representing approximately 376,000 underlying shares of TMO. Below is a chart showing TMO's trailing twelve month trading history, with the $560 strike highlighted in orange:
And Enphase Energy Inc. (Symbol: ENPH) options are showing a volume of 40,272 contracts thus far today. That number of contracts represents approximately 4.0 million underlying shares, working out to a sizeable 112.5% of ENPH's average daily trading volume over the past month, of 3.6 million shares. Especially high volume was seen for the $134 strike call option expiring October 20, 2023, with 2,052 contracts trading so far today, representing approximately 205,200 underlying shares of ENPH. Below is a chart showing ENPH's trailing twelve month trading history, with the $134 strike highlighted in orange:
For the various different available expirations for AAPL options, TMO options, or ENPH options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Consumer Services Dividend Stocks
TXMD Stock Predictions
MNDY YTD Return
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 $175 strike put option expiring October 20, 2023, with 76,111 contracts trading so far today, representing approximately 7.6 million underlying shares of AAPL. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 675,020 contracts have traded so far, representing approximately 67.5 million underlying shares. That amounts to about 125.4% of AAPL's average daily trading volume over the past month of 53.8 million shares. | Particularly high volume was seen for the $175 strike put option expiring October 20, 2023, with 76,111 contracts trading so far today, representing approximately 7.6 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $175 strike highlighted in orange: Thermo Fisher Scientific Inc (Symbol: TMO) saw options trading volume of 16,682 contracts, representing approximately 1.7 million underlying shares or approximately 123.6% of TMO's average daily trading volume over the past month, of 1.3 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 675,020 contracts have traded so far, representing approximately 67.5 million underlying shares. | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 675,020 contracts have traded so far, representing approximately 67.5 million underlying shares. Particularly high volume was seen for the $175 strike put option expiring October 20, 2023, with 76,111 contracts trading so far today, representing approximately 7.6 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $175 strike highlighted in orange: Thermo Fisher Scientific Inc (Symbol: TMO) saw options trading volume of 16,682 contracts, representing approximately 1.7 million underlying shares or approximately 123.6% of TMO's average daily trading volume over the past month, of 1.3 million shares. | Particularly high volume was seen for the $175 strike put option expiring October 20, 2023, with 76,111 contracts trading so far today, representing approximately 7.6 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $175 strike highlighted in orange: Thermo Fisher Scientific Inc (Symbol: TMO) saw options trading volume of 16,682 contracts, representing approximately 1.7 million underlying shares or approximately 123.6% of TMO's average daily trading volume over the past month, of 1.3 million shares. Below is a chart showing ENPH's trailing twelve month trading history, with the $134 strike highlighted in orange: For the various different available expirations for AAPL options, TMO options, or ENPH options, visit StockOptionsChannel.com. |
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13079.0 | 2023-10-17 00:00:00 UTC | Magnificent 7 Earnings Charts Ranked | AAPL | https://www.nasdaq.com/articles/magnificent-7-earnings-charts-ranked | For the first time in several years, there is no more FAANG or FANGMAN to talk about during the earnings season. It has been retired from the lexicon and has been replaced with the “Magnificent 7.”
While some of the players remain the same, it includes some new names that never fit into the FANGMAN grouping, mainly Tesla. It also gets rid of Netflix, which had been the best performing S&P 500 stock from 2010 to 2020.
Being An Earnings All-Star
It’s not easy to beat every quarter, or nearly every quarter for 5 years, or more. It takes great communication by management to the analysts.
Even among the Magnificent 7 companies, not all are interested in playing the earnings surprise game. Jeff Bezos famously didn’t even attend the earnings conference calls towards the end of his tenure as CEO of Amazon.
But the earnings surprise track record is just another tool that traders, and investors, can look to with a stock. During earnings season, it, obviously, takes on extra importance.
Which of the Magnificent 7 companies have the best, and the worst, earnings surprise track records?
Which Are the Best, and Worst, of the Magnificent 7?
1. Amazon.com, Inc. (AMZN)
Amazon has beat 3 out of the last 4 quarters. It has missed 7 times in the last 5 years but 3 of those were in 2022, which is when Amazon also did a big round of layoffs.
The average surprise over the last four quarters, however, is a whopping 41%, the highest average among the Magnificent 7. Amazon has put together three big beats in a row. For the third quarter, 2 estimates are higher in the last 60 days but none have been raising this week.
Will analysts be behind the curve again on Amazon this quarter?
2. Alphabet Inc. (GOOGL)
Alphabet has beat just 2 quarters in a row. Prior to those beats, it missed 4 quarters in a row in both 2022 and early 2023.
It’s not a surprise, with all those misses in the mix, that Alphabet’s average surprise over the last 4 quarters is in the red by 0.9%.
However, the analysts are bullish on Alphabet heading into the report. 1 estimate is higher, and none are lower, in the last week. The Zacks Consensus has risen to $1.45 from $1.34 in the last 90 days.
Will Alphabet keep its earnings surprise momentum for a third quarter in a row?
3. Tesla, Inc. (TSLA)
Tesla has put together an impressive earnings surprise track record. It has beat 10 quarters in a row. Tesla’s last earnings miss was in early 2021.
Tesla has an average surprise over the last 4 quarters of 7.9%. But despite beating 10 quarters in a row, analysts are bearish heading into this report. 1 estimate has been cut on Tesla in the last week. The Zacks Consensus for the quarter has fallen to $0.73 from $0.86 in the last 3 months.
Will Tesla still make it 11 quarters in a row this week?
4. Apple Inc. (AAPL)
Apple has only missed one time in the last 5 years. That’s extremely impressive given the pandemic and supply chain issues during that time. That miss was in early 2023 however, so it is impacting the average surprise, which is just 2.8%, over the last 4 quarters.
Prior to the miss in 2023, the last miss was all the way back in 2016. Analysts are not bearish going into this report. 1 estimate has been cut, and 2 have been raised, for the quarter over the last 60 days. There haven’t been any changes made to estimates over the last week.
Is Apple sure to beat again?
5. Microsoft Corp. (MSFT)
Microsoft also has a fantastic earnings surprise track record. It also has just one miss in the last 5 years, but it was in mid-2022, so it isn’t still impacting the average surprise data which covers the last 4 quarters. Microsoft’s average surprise was 5.3% during that time.
Prior to the 2022 miss, Microsoft’s last miss was, like Apple’s, also in 2016. But the analysts aren’t betting against Microsoft this quarter. There haven’t been any changes to the quarterly estimates over the last 60 days, neither up or down.
Will another earnings beat send Microsoft’s shares to new all-time highs?
Tune into the video to find out where each company ranks. Who is the king of earnings season in the Magnificent 7?
[In full disclosure, Tracey owns shares of AMZN, GOOGL and MSFT in her personal portfolio.]
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Inc. (AAPL) Apple has only missed one time in the last 5 years. 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 Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. It has been retired from the lexicon and has been replaced with the “Magnificent 7.” While some of the players remain the same, it includes some new names that never fit into the FANGMAN grouping, mainly Tesla. | 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 Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc. (AAPL) Apple has only missed one time in the last 5 years. Which of the Magnificent 7 companies have the best, and the worst, earnings surprise track records? | 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 Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc. (AAPL) Apple has only missed one time in the last 5 years. Being An Earnings All-Star It’s not easy to beat every quarter, or nearly every quarter for 5 years, or more. | Apple Inc. (AAPL) Apple has only missed one time in the last 5 years. 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 Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Will Alphabet keep its earnings surprise momentum for a third quarter in a row? |
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13101.0 | 2023-10-16 00:00:00 UTC | 3 Stocks I Want to Own for the Rest of My Life | AAPL | https://www.nasdaq.com/articles/3-stocks-i-want-to-own-for-the-rest-of-my-life | Many successful investors will tell you that their biggest mistake involved selling a great company too soon. Indeed, no less of an investor than Warren Buffett has said that his favorite holding period is "forever". That showcases the incredible potential that long-term investors might find if they manage to simply hold on to the incredibly strong businesses that they already own.
Still, it can be tough to find companies that really seem worthy of holding onto for decades to come. With that in mind, three Motley Fool contributors searched their own investments for ones that seem like they could very well be among that elite cadre of investment. They picked MercadoLibre (NASDAQ: MELI), Apple (NASDAQ: AAPL), and Enbridge (NYSE: ENB). Read on to find out why, then decide for yourself if one or more of them deserves a place in your portfolio for the long haul.
Image source: Getty Images
A trend that will last longer than me
Jason Hall (MercadoLibre): If there's one common thread that ties most of my investments together, it's trends. And no, I don't mean the latest fashion or other ephemeral shiny object; I mean real, lasting, durable trends that can take many years -- even decades -- to play out. And one that's likely to take more decades than I have left on earth is the economic development of Latin America. And this makes MercadoLibre exactly the sort of stock that I intend to own for the rest of my life.
First, why MercadoLibre. To start, its lead in Latin America, while not insurmountable, is significant. It operates in 18 countries in the region, and has a massive head start over the competition. It also operates Mercado Pago, an electronics payments platform, which actually does more transaction volume off its platform than on it; that's a very sticky platform used by millions of people to do things like pay bills, in addition to shopping with MercadoLibre.
And it's built these platforms profitably; over the trailing 12 months, MercadoLibre earned $757 in net income, and generated $4.1 billion in free cash flow. In other words, it's in a position to self-fund growth, without having to rely on fickle and expensive capital markets for funding.
Lastly, its prospects going forward are tremendous. The average American is almost 40, while the median age in Latin and Caribbean countries is 31. The demographic dividend is also delivering in much of Latin America: Median life expectancies are on the rise while fertility rates fall, resulting in more of the population joining the workforce for longer, generating more disposable income. Few companies anywhere are positioned as well as MercadoLibre to grow profitably for as many years to come.
A giant tech company that wins on both hardware and software transactions
Eric Volkman (Apple): Is there anyone in the stock investing universe who thinks Apple will stumble and fall? I sure don't. I bought into the company years ago, and as time has gone by, I've become more convinced that it will only grow its already massive footprint.
The beauty of Apple's business model is that there are numerous levers it can pull to keep pushing its results ever higher.
Its endlessly state-of-the-art products rightfully attract loyalists -- and I'm one of them, having owned and (over-) used iPhones since 2007. The upgrade cycle alone is enough to bring in waves of revenue every time it crests. Apple products are perennially hot items; witness the heavy demand for the recently launched iPhone 15.
The tech giant has also very cleverly positioned itself as a middleman in a great many transactions involving software produced for Apple devices by outside developers. Want that cool new game for your phone? Apple will typically take 30% of what you're paying the company behind it, thank you very much.
The services category continues to balloon for Apple. In the quarter that ended July 1 -- which many considered a disappointment due to continued (but minor) year-over-year revenue declines and other unimportant factors -- services revenue climbed to an all-time quarterly record. The category's take rose by almost 12% to $6.2 billion.
Meanwhile, Apple is pushing into other potential revenue-spinners, as it ever does. It's plowing much of its research and development into generative artificial intelligence (AI). Its home-cooked Apple GPT is already being harnessed by the company as a behind-the-curtain technology powering numerous functionalities.
Apple is a sure bet to continue drawing money from its already very deep and wide revenue streams. And it's got enormous potential in others that have only begun to flow. This stock is staying firmly anchored in my portfolio.
Love it or hate it, its services should still be in demand decades from now
Chuck Saletta (Enbridge): Enbridge is a Canada-based energy infrastructure titan that owns oil and natural gas pipelines that crisscross much of North America. Whether you love or hate the fossil fuel industry it serves, the reality is that it will be with us for decades to come.
The U.S. Energy Information Agency regularly publishes an energy outlook. In its 2023 edition, it forecasts essentially flat oil and natural gas demand in the United States through 2050. In essence, its projections call for renewables to basically cover the increase in energy demand over the next few decades. So while other energy sources will likely continue to grow over time, there is good reason to believe that the core demand will continue to be there for Enbridge to provide its energy transportation services.
In addition, while it is expensive and politically difficult to build new pipeline infrastructure these days, those challenges can actually work in favor of large, established players like Enbridge. After all, the fewer other pipelines get built, the more attractive Enbridge's existing infrastructure looks by comparison. With fewer alternate pipeline routes, Enbridge's competition becomes railroads and trucks, both of which tend to be costlier than pipelines where that infrastructure exists.
Thanks to that long-term structural demand, Enbridge can pay out a whopping 8% yield, on a dividend that consumes less than 60% of its operating cash flow. Not only can Enbridge pay that dividend, it also has a 28-year long streak of annually increasing that payment.
There are very few companies out there that look capable of potentially paying a high and growing dividend for many decades into the future. With its entrenched infrastructure, high likelihood of continued demand, and the expansion challenges that help keep competition at bay, Enbridge just might find itself on that list. That combination makes it a stock I hope to be able to hold onto for the rest of my life.
What do all three of these companies have in common?
While it may not seem like MercadoLibre, Apple, and Enbridge have a lot in common on the surface, what unites them is the fact that they have each built businesses that look like they can have legitimate long-term staying power. Should that anticipated future come to pass, decades from now, future investors might still be calling them companies worthy of being held for the long haul.
No matter what the future may bring, to get the potential rewards of long-term ownership, you first have to make that initial investment. There's no time like the present to take that first step toward owning companies you might want to hold onto for the rest of your life. Make today the day you decide whether one of these companies may very well be worthy of winding up a one-decision investment for yourself.
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Chuck Saletta has positions in Enbridge and has the following options: long January 2025 $37.50 calls on Enbridge, short January 2025 $37.50 puts on Enbridge, short November 2023 $32.50 puts on Enbridge, and short November 2023 $42.50 calls on Enbridge. Eric Volkman has positions in Apple. Jason Hall has positions in MercadoLibre. The Motley Fool recommends Apple, Enbridge, and MercadoLibre. 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. | They picked MercadoLibre (NASDAQ: MELI), Apple (NASDAQ: AAPL), and Enbridge (NYSE: ENB). And it's built these platforms profitably; over the trailing 12 months, MercadoLibre earned $757 in net income, and generated $4.1 billion in free cash flow. The demographic dividend is also delivering in much of Latin America: Median life expectancies are on the rise while fertility rates fall, resulting in more of the population joining the workforce for longer, generating more disposable income. | They picked MercadoLibre (NASDAQ: MELI), Apple (NASDAQ: AAPL), and Enbridge (NYSE: ENB). Image source: Getty Images A trend that will last longer than me Jason Hall (MercadoLibre): If there's one common thread that ties most of my investments together, it's trends. Love it or hate it, its services should still be in demand decades from now Chuck Saletta (Enbridge): Enbridge is a Canada-based energy infrastructure titan that owns oil and natural gas pipelines that crisscross much of North America. | They picked MercadoLibre (NASDAQ: MELI), Apple (NASDAQ: AAPL), and Enbridge (NYSE: ENB). A giant tech company that wins on both hardware and software transactions Eric Volkman (Apple): Is there anyone in the stock investing universe who thinks Apple will stumble and fall? Love it or hate it, its services should still be in demand decades from now Chuck Saletta (Enbridge): Enbridge is a Canada-based energy infrastructure titan that owns oil and natural gas pipelines that crisscross much of North America. | They picked MercadoLibre (NASDAQ: MELI), Apple (NASDAQ: AAPL), and Enbridge (NYSE: ENB). Still, it can be tough to find companies that really seem worthy of holding onto for decades to come. Love it or hate it, its services should still be in demand decades from now Chuck Saletta (Enbridge): Enbridge is a Canada-based energy infrastructure titan that owns oil and natural gas pipelines that crisscross much of North America. |
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13114.0 | 2023-10-15 00:00:00 UTC | The ‘Millionaire Playbook’ for Easy Profits in the AI Boom | AAPL | https://www.nasdaq.com/articles/the-millionaire-playbook-for-easy-profits-in-the-ai-boom | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Editor’s note: “The ‘Millionaire Playbook’ for Easy Profits in the AI Boom” was previously published in August 2023. It has since been updated to include the most relevant information available.
At this point, it’s quickly becoming clear that AI is the real deal. And over the next few years, as it continues its ascent and transforms the world in profound ways, investors that buy AI stocks today will make fortunes.
But one major question still remains…
What are the best AI stocks to buy today?
Should you chase the rally in red-hot AI chipmaker Nvidia (NVDA)? Or maybe buy the breakout in the AI software company C3.ai (AI)? Or is a hardware play like Tesla (TSLA) the best AI stock to buy right now?
The answer to those questions may be rooted in a historical analysis of previous technological paradigm shifts.
Indeed, every new technological paradigm shift – like the one we’re seeing with AI right now – follows a similar pattern.
They evolve in three distinct “profit waves.”
The ‘Millionaire Playbook’
The first profit wave emerges in the “picks-and-shovels” suppliers of the new tech – the companies that make the stuff that powers the technology.
The second profit wave emerges in the infrastructure makers for the new tech – the companies that take those picks and shovels and make new devices.
And the third profit wave emerges in the software and services developers for the new tech – the companies that create cool, usable applications on top of the new devices.
Makes sense, right?
First, there’s a gold rush for materials to build new tech. Then, there’s a gold rush for new devices that are built with that tech. Then, once everyone has one of those devices, there’s a gold rush for creating applications and services on top of them.
Take the mobile internet boom of the 2010s, for example.
In that time, we saw a profit boom in semiconductor companies like Qualcomm (QCOM), which was selling the chips that powered smartphones.
A few years later, we saw a profit boom in device-making companies like Apple (AAPL), which took those Qualcomm chips and made ultra-popular iPhones.
By 2015, a profit boom emerged in software and services companies like Alphabet (GOOGL) and Amazon (AMZN). Once smartphones were ubiquitous, those companies built really cool mobile internet applications for those devices.
In other words, the best way to play the internet boom of the 2010s was to buy semiconductor stocks in 2010, sell them in 2011, roll the profits into infrastructure stocks, sell those in 2013, then roll those profits into software and services stocks.
That was the “Millionaire Playbook” for the mobile internet boom of the 2010s.
Monetizing the AI Revolution
It is also the “Millionaire Playbook” for every major technological revolution of the past 50 years. Every new tech revolution emerges in three distinct profit waves: Suppliers first, device-makers second, and software developers third.
The AI Revolution will play out no differently.
We’re already seeing the first profit wave emerge today. AI chip supplier stocks – paced by Nvidia – are soaring right now.
This boom will last for a year or so. Then, it’ll be the AI hardware makers who experience a profit surge. After that, the AI software developers will start to soar.
The Final Word on AI Stocks
This is the “Millionaire Playbook” to follow for the AI Revolution.
Buy the AI supplier stocks first, hardware stocks second, and software stocks third.
Follow this playbook, and you could mint fortunes in the AI Revolution of the 2020s.
The AI suppliers have already had their profit wave. That means it is time to move on to the AI hardware makers, and even the AI software developers.
Those are the AI stocks you want to be buying today – not Nvidia.
And we’ve compiled some picks that may be the best AI stocks to buy for the wave of mega profits.
Find out all the details.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
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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. | A few years later, we saw a profit boom in device-making companies like Apple (AAPL), which took those Qualcomm chips and made ultra-popular iPhones. And over the next few years, as it continues its ascent and transforms the world in profound ways, investors that buy AI stocks today will make fortunes. And the third profit wave emerges in the software and services developers for the new tech – the companies that create cool, usable applications on top of the new devices. | A few years later, we saw a profit boom in device-making companies like Apple (AAPL), which took those Qualcomm chips and made ultra-popular iPhones. And the third profit wave emerges in the software and services developers for the new tech – the companies that create cool, usable applications on top of the new devices. In other words, the best way to play the internet boom of the 2010s was to buy semiconductor stocks in 2010, sell them in 2011, roll the profits into infrastructure stocks, sell those in 2013, then roll those profits into software and services stocks. | A few years later, we saw a profit boom in device-making companies like Apple (AAPL), which took those Qualcomm chips and made ultra-popular iPhones. In other words, the best way to play the internet boom of the 2010s was to buy semiconductor stocks in 2010, sell them in 2011, roll the profits into infrastructure stocks, sell those in 2013, then roll those profits into software and services stocks. Buy the AI supplier stocks first, hardware stocks second, and software stocks third. | A few years later, we saw a profit boom in device-making companies like Apple (AAPL), which took those Qualcomm chips and made ultra-popular iPhones. In other words, the best way to play the internet boom of the 2010s was to buy semiconductor stocks in 2010, sell them in 2011, roll the profits into infrastructure stocks, sell those in 2013, then roll those profits into software and services stocks. Every new tech revolution emerges in three distinct profit waves: Suppliers first, device-makers second, and software developers third. |
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13126.0 | 2023-10-14 00:00:00 UTC | 3 Reasons to Buy Apple Stock and Never Sell | AAPL | https://www.nasdaq.com/articles/3-reasons-to-buy-apple-stock-and-never-sell | Any list of the most successful companies of all time would no doubt include Apple (NASDAQ: AAPL). By focusing on design and the user experience, Apple created innovative and disruptive products that consistently joined the cultural zeitgeist. The iPod was the first of its products to achieve mass adoption, but Apple continued an unprecedented winning streak with the iPhone, iPad, Apple Watch, and AirPods.
These fan-favorite products weren't the first to market, but each soon dominated their respective categories. As a result of its long history of success, Apple has the distinction of being the world's most valuable company, the first U.S. company to achieve market caps of $1 trillion, $2 trillion, and $3 trillion, respectively.
Recent data released by Piper Sandler includes three reasons investors should buy Apple stock and never sell.
Image source: Apple.
The underlying data
Just this week, Piper Sandler released its 46th semi-annual Taking Stock With Teens survey, which tallied responses from 9,193 teens in Generation Z. The report assesses discretionary spending, fashion trends, technology, and brand and media preferences of high school students across the U.S.
As in previous surveys, Apple products and services featured prominently, which points to the enduring attraction of the company's devices and the continuing utility of its services. Three key points in the survey should be of keen interest to Apple investors.
1. Generational demand for the iPhone
The word "dominate" is often thrown around pretty freely, but in this case, it isn't merely hyperbole. A whopping 87% of teens reported owning an iPhone, a percentage that has been consistently rising in recent years. In the fall of 2017, 78% of teens reported owning an iPhone, which illustrates the increasing appeal of the iconic device. Furthermore, 88% of teens expect their next mobile device to be an iPhone, up from 82% in 2017.
This is important to Apple investors as the iPhone represents the lion's share of the company's sales. For the company's fiscal 2022 (ended Sept. 24, 2022), the iPhone was responsible for 52% of Apple's revenue. That trend continues. For the first nine months of fiscal 2023 (ended July 1), iPhone accounted for 53% of Apple's revenue.
The iPhone is the foundational product in Apple's ecosystem, and all other products and services revolve around it.
2. The iPhone is a gateway product
Once a consumer owns an iPhone, chances increase significantly that they will purchase other Apple products, many of which are designed to augment the iPhone experience. 34% of the teens surveyed reported owning an Apple Watch, which is largely a companion product whose functionality is deeply integrated with the iPhone.
During the fall of 2016, just 5% of teens planned to buy an Apple Watch, a percentage that has steadily increased in each successive survey. In fact, by early 2021, Apple Watch overtook Rolex as the favorite watch brand of upper-income teens and has retained the No. 1 position ever since.
3. The Apple ecosystem makes the iPhone even stickier
It's hard to overstate the importance of Apple's growing ecosystem and how pervasive its products and services can be. Take something as simple as paying for retail purchases. While many older consumers still rely on credit and debit cards, payment apps are the order of the day for teens.
This is another area where Apple ranked supreme. Apple Pay was the No. 1 payment app used over the past month, at 42%. For context, Block's Cash App came in second with 27%. This helps illustrate how much of a lead Apple has amassed over its fintech rivals.
What all this means for Apple
The importance of Apple's appeal to younger buyers can't be overstated. While teens aren't yet the primary wage earners, they are establishing their likes and dislikes, which will help inform their buying patterns for years to come.
The sheer dominance of the iPhone among teens and the strong demand for ancillary products and services illustrates that -- all things being equal -- demand for Apple products should continue for years to come.
That's good news for Apple -- and its investors.
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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. | Any list of the most successful companies of all time would no doubt include Apple (NASDAQ: AAPL). By focusing on design and the user experience, Apple created innovative and disruptive products that consistently joined the cultural zeitgeist. 34% of the teens surveyed reported owning an Apple Watch, which is largely a companion product whose functionality is deeply integrated with the iPhone. | Any list of the most successful companies of all time would no doubt include Apple (NASDAQ: AAPL). Recent data released by Piper Sandler includes three reasons investors should buy Apple stock and never sell. In the fall of 2017, 78% of teens reported owning an iPhone, which illustrates the increasing appeal of the iconic device. | Any list of the most successful companies of all time would no doubt include Apple (NASDAQ: AAPL). The iPod was the first of its products to achieve mass adoption, but Apple continued an unprecedented winning streak with the iPhone, iPad, Apple Watch, and AirPods. The iPhone is a gateway product Once a consumer owns an iPhone, chances increase significantly that they will purchase other Apple products, many of which are designed to augment the iPhone experience. | Any list of the most successful companies of all time would no doubt include Apple (NASDAQ: AAPL). In the fall of 2017, 78% of teens reported owning an iPhone, which illustrates the increasing appeal of the iconic device. The iPhone is a gateway product Once a consumer owns an iPhone, chances increase significantly that they will purchase other Apple products, many of which are designed to augment the iPhone experience. |
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13140.0 | 2023-10-13 00:00:00 UTC | Wait, Is the DOJ Lawsuit Actually Bullish For Alphabet? | AAPL | https://www.nasdaq.com/articles/wait-is-the-doj-lawsuit-actually-bullish-for-alphabet | The government continues to go after the big technology companies. In September, the Department of Justice's (DOJ) antitrust case against Google's search engine monopoly began its trial, with testimonies from various business leaders illuminating the workings of the important sector. Alphabet (NASDAQ: GOOG) -- parent company of Google -- has an estimated 90% share of the search engine market and has wiped the floor with any competitor for years. The DOJ is arguing that its distribution deals with hardware makers like Apple harm competition and unfairly enforce its monopolistic position.
While antitrust cases can lead to regulation and future profit losses, strangely, in this case, Alphabet may actually benefit if the DOJ wins its antitrust suit. Here's why.
What's actually happening
This DOJ case centers around three technology giants: Apple, Alphabet (Google), and Microsoft. There are a few other parts to the suit, but the most important topic by far is Alphabet's distribution deal with Apple. Alphabet pays Apple a handsome sum every year -- some estimate upwards of $20 billion -- to have Google be the default search engine on its Safari browser. This does not make Google the only search engine Apple users can try, but the one that is pre-installed onto the Safari engine.
With over a billion Apple users around the globe that skew toward higher incomes, Google finds it valuable to pay Apple this fat distribution tax every year. It hasn't hurt its profitability one bit, with its overall operating income hitting $22 billion just last quarter. The company also pays a distribution tax to other hardware makers, such as Samsung, although a much smaller amount.
So, where does Microsoft come in? As second in market share with its Bing search engine, executives at the company argued at the trial that Google and Apple's agreement unfairly cements them as the dominant search engine on mobile devices. In fact, Microsoft admitted that it offered Apple a deal to have Bing be its default search engine but couldn't make the economics work like Google. They and the DOJ are arguing that this is an unfair agreement that no other company in the world can match, even one the size of Microsoft.
Why Google wins (even if it loses)
If the DOJ prevails in its case, Alphabet may be forced to stop paying Apple, opening it up to more competitive threats. Investors may see this as a sign of a weakening competitive advantage and a risk for Alphabet shareholders as Google Search may start to lose market share to other search engines, such as Bing or DuckDuckGo, around the world.
But let's reiterate: This outcome would force Alphabet to stop spending tens of billions each year on search engine distribution. If the DOJ wins, Alphabet will eliminate all of this money from its operating expenses each year. Of course, if it loses more in revenue than it saves in expenses, this will be a net loss for Google. There are also rumors that Apple is working on its own search engine as a backup plan if the Google distribution agreement falls through, which they would clearly default to on Apple devices -- scary stuff.
Good news for investors: We have historical evidence of how successful Google can be when competing with an integrated search engine provider. Today, Google has just under 85% market share in search for desktop computers. Microsoft's Windows operating system is one of the leaders in the desktop computing space and defaults users to its Edge internet browser and Bing search engine (some may argue anticompetitively, but that's another story). The company has also apparently spent $100 billion over the years on its Bing segment to try and gain market share.
If Google search gets back to a level playing field competitively -- or perhaps even disadvantaged on Apple if it releases an in-house search engine -- investors shouldn't worry about the company losing much market share. The company has locked in users for years due to free services such as Gmail, Google Drive, Chrome, and Google Maps that connect back to the Google Search engine. This is why the company succeeds on Windows even though Microsoft defaults to its Bing search engine. I wouldn't expect anything different on Apple devices.
To sum things up, if Alphabet and Apple win this lawsuit, Google will retain its current position. If they lose, Google will likely only lose a little bit in market share. Neither scenario should hurt Alphabet financially. In fact, one might argue that the company will generate even more earnings if it stops paying so much in distribution fees every year.
AAPL Operating Income (TTM) data by YCharts.
The real loser may be Apple
Counterintuitively, the company that may actually get hurt here is Apple. Apple's distribution tax on Google is $20 billion in revenue it earns every year with virtually 100% profit margins. Over the last 12 months, it generated $112 billion in operating income, meaning the Google tax is an estimated 18% of Apple's overall profits if the $20 billion payment figure is accurate. If that goes away, its operating income will immediately fall by that 18% number. Shareholders will not like this.
The DOJ lawsuit against Alphabet may shake up the big tech landscape. Just not in the way you think. Apple is at more risk here financially than Alphabet.
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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, 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. | AAPL Operating Income (TTM) data by YCharts. In September, the Department of Justice's (DOJ) antitrust case against Google's search engine monopoly began its trial, with testimonies from various business leaders illuminating the workings of the important sector. Alphabet (NASDAQ: GOOG) -- parent company of Google -- has an estimated 90% share of the search engine market and has wiped the floor with any competitor for years. | AAPL Operating Income (TTM) data by YCharts. Alphabet pays Apple a handsome sum every year -- some estimate upwards of $20 billion -- to have Google be the default search engine on its Safari browser. As second in market share with its Bing search engine, executives at the company argued at the trial that Google and Apple's agreement unfairly cements them as the dominant search engine on mobile devices. | AAPL Operating Income (TTM) data by YCharts. As second in market share with its Bing search engine, executives at the company argued at the trial that Google and Apple's agreement unfairly cements them as the dominant search engine on mobile devices. Investors may see this as a sign of a weakening competitive advantage and a risk for Alphabet shareholders as Google Search may start to lose market share to other search engines, such as Bing or DuckDuckGo, around the world. | AAPL Operating Income (TTM) data by YCharts. As second in market share with its Bing search engine, executives at the company argued at the trial that Google and Apple's agreement unfairly cements them as the dominant search engine on mobile devices. Investors may see this as a sign of a weakening competitive advantage and a risk for Alphabet shareholders as Google Search may start to lose market share to other search engines, such as Bing or DuckDuckGo, around the world. |
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13158.0 | 2023-10-12 00:00:00 UTC | US STOCKS-Futures rise as Treasury yields drop ahead of inflation data | AAPL | https://www.nasdaq.com/articles/us-stocks-futures-rise-as-treasury-yields-drop-ahead-of-inflation-data | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.29%, S&P 0.35%, Nasdaq 0.34%
Oct 12 (Reuters) - Futures for Wall Street's main stock indexes rose on Thursday as Treasury yields eased, while investors looked forward to crucial inflation data to gauge the Federal Reserve's interest-rate outlook.
The Labor Department report, due at 8:30 a.m. ET, is expected to show consumer prices rising 0.3% in September according to economists polled by Reuters.
Prices are seen rising to 3.6% in the 12 months through September. The core figure, which excludes volatile food and energy prices, is expected to rise 0.3% last month.
Meanwhile, the yield on the benchmark 10-year note US10YT=RR fell for the third straight day, helping megacap stocks, including Apple AAPL.O, Alphabet GOOGL.O, Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Amazon.com AMZN.O, advance between 0.2% and 0.6% in premarket trading.
Fed Bank of Boston President Susan Collins, who does not have a vote on the rate setting Federal Open Market Committee (FOMC) this year, said the economy was yet to feel the full impact of the rate hike cycle, while reiterating that the central bank is not done with rate hikes.
Minutes from the Fed's September policy meeting showed that policymakers were turning cautious due to the growing uncertainty around the path of the U.S. economy, as well as volatile data and tightening financial markets posing risks to growth.
"The words 'proceed carefully' and 'risks to achieving the goals had become more two-sided' speak to the view of the centrists on the FOMC," strategists at Societe Generale said in a note.
"Barring a surprise for CPI today on the scale of non-farm payrolls last week, one must assume another hawkish pause or skip on Nov. 1 is now a done deal."
Traders put the chance of interest rates remaining unchanged in November and December at around 91% and around 72%, respectively, according to CME's FedWatch tool.
Meanwhile, Israel said there would be no humanitarian break to its siege of the Gaza Strip until all its hostages were freed.
At 5:20 a.m. ET, Dow e-minis 1YMcv1 were up 99 points, or 0.29%, S&P 500 e-minis EScv1 were up 15.25 points, or 0.35%, and Nasdaq 100 e-minis NQcv1 were up 52.75 points, or 0.34%.
All three major U.S. stock indexes closed higher for the fourth straight session on Wednesday.
Quarterly earnings from fast food chain Domino's Pizza DPZ.N, pharmacy chain operator Walgreens Boots Alliance WBA.O and Delta Air Lines DAL.N are due before the markets open.
Ford MotorF.N dipped 1.9% after United Auto Workers shut down the company's biggest plant globally.
Birkenstock HoldingBIRK.N added 0.5% after the German sandal maker's stock ended more than 12% below its initial public offering price on its market debut on Wednesday.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Arun Koyyur)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Meanwhile, the yield on the benchmark 10-year note US10YT=RR fell for the third straight day, helping megacap stocks, including Apple AAPL.O, Alphabet GOOGL.O, Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Amazon.com AMZN.O, advance between 0.2% and 0.6% in premarket trading. Minutes from the Fed's September policy meeting showed that policymakers were turning cautious due to the growing uncertainty around the path of the U.S. economy, as well as volatile data and tightening financial markets posing risks to growth. Birkenstock HoldingBIRK.N added 0.5% after the German sandal maker's stock ended more than 12% below its initial public offering price on its market debut on Wednesday. | Meanwhile, the yield on the benchmark 10-year note US10YT=RR fell for the third straight day, helping megacap stocks, including Apple AAPL.O, Alphabet GOOGL.O, Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Amazon.com AMZN.O, advance between 0.2% and 0.6% in premarket trading. The core figure, which excludes volatile food and energy prices, is expected to rise 0.3% last month. Fed Bank of Boston President Susan Collins, who does not have a vote on the rate setting Federal Open Market Committee (FOMC) this year, said the economy was yet to feel the full impact of the rate hike cycle, while reiterating that the central bank is not done with rate hikes. | Meanwhile, the yield on the benchmark 10-year note US10YT=RR fell for the third straight day, helping megacap stocks, including Apple AAPL.O, Alphabet GOOGL.O, Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Amazon.com AMZN.O, advance between 0.2% and 0.6% in premarket trading. Futures up: Dow 0.29%, S&P 0.35%, Nasdaq 0.34% Oct 12 (Reuters) - Futures for Wall Street's main stock indexes rose on Thursday as Treasury yields eased, while investors looked forward to crucial inflation data to gauge the Federal Reserve's interest-rate outlook. Fed Bank of Boston President Susan Collins, who does not have a vote on the rate setting Federal Open Market Committee (FOMC) this year, said the economy was yet to feel the full impact of the rate hike cycle, while reiterating that the central bank is not done with rate hikes. | Meanwhile, the yield on the benchmark 10-year note US10YT=RR fell for the third straight day, helping megacap stocks, including Apple AAPL.O, Alphabet GOOGL.O, Tesla TSLA.O, Nvidia NVDA.O, Meta Platforms META.O and Amazon.com AMZN.O, advance between 0.2% and 0.6% in premarket trading. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures up: Dow 0.29%, S&P 0.35%, Nasdaq 0.34% Oct 12 (Reuters) - Futures for Wall Street's main stock indexes rose on Thursday as Treasury yields eased, while investors looked forward to crucial inflation data to gauge the Federal Reserve's interest-rate outlook. |
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13182.0 | 2023-10-11 00:00:00 UTC | Is Apple Priced to Perfection, Based on Its Current P/E? | AAPL | https://www.nasdaq.com/articles/is-apple-priced-to-perfection-based-on-its-current-p-e | Has Apple Inc. (NASDAQ: AAPL) gotten too expensive for its own good?
The largest S&P 500 component has notched small gains in recent weeks, but is down 6% in the past three months.
Even so, the stock has a price-to-earnings ratio of 30, indicating that it still may be priced too high.
However, take a look at MarketBeat’s Apple analyst ratings. The consensus view is “moderate buy” with a price target of $200.54, an upside of 12.42%.
If Apple achieves that level in the next 12 to 18 months, which is well within the realm of possibility, it would have cleared its current consolidation, below a buy point of $198.33.
Digging into the ratings a little more, you see that the majority of analysts have a price target above the stock’s current price, although brokerage firm Sanford C. Bernstein has a target of $167, and Morningstar estimates fair value at $150 a share.
Single-Digit Revenue Growth
Morningstar’s Brian Colello says he views shares as undervalued, and that he foresees “only mid-single-digit revenue growth for the company over the next few years.”
That revenue growth rate is key to the stock’s potential for price appreciation. Revenue slowed in each of the past three quarters, the company’s longest sales slump since 2016.
Analysts have been lowering their revenue estimates in recent months. This year, Wall Street expects earnings to decline by 1% to $6.07 a share.
One culprit behind the slowdown: The new iPhone 15, released on September 22, got off to a somewhat disappointing start, amid a global slowdown in smartphone sales.
Sales of all iPhones fell by 2.4% in the most recent quarter, coming in $500 million below analysts’ forecasts of $40.2 billion.
PC Sales Declined in Q3
Meanwhile, market intelligence firm IDC found that global personal computer sales declined in the third quarter. “While most of the top 5 vendors experienced double-digit declines during the quarter, Apple's outsized decline was the result of unfavorable year-over-year comparisons as the company recovered from a COVID-related halt in production during 3Q22,” IDC said in an October 9 report.
IDC reported that Apple Mac shipments fell 23.1% in the third quarter.
P/E Aligned with Growth Expectations?
A stock is said to be priced to perfection when its P/E ratio reflects a balance between the company’s growth expectations and current market sentiment.
In the priced-to-perfection scenario, the P/E ratio aligns with the company's growth prospects, implying that investors anticipate consistent and robust earnings growth. When that happens, the stock’s P/E ratio is often at the higher end of its historical range or industry average.
For example, Apple’s historical P/E, over the past decade, is 19.5. It peaked at 35.19 in December 2020. You could consider the current P/E as being pretty close to that high, although that’s happening while revenue and earnings expectations are being lowered.
But here’s a big problem when revenue and earnings are dropping, and the P/E remains fairly high: In that situation, with any stock, not just Apple, investors believe the company can sustain its growth trajectory without hiccups, making it a compelling investment.
Perfectly Priced, or Vulnerable to Decline?
However, any deviation from these rosy expectations can lead to a sharp correction, underscoring the fine line between perfection and vulnerability.
So what would it take for Apple to go back into strong rally mode?
One thing that will continue to attract investors is the Apple dividend. The stock’s yield is 0.54%, not the best of the bunch, but it’s an additional incentive for investors to hold shares, as they get paid even while they wait for the next uptrend.
In addition, Apple is among an elite group of quintessential institutional quality stocks. Analysts expect earnings growth to resume in 2024, with a gain of 8%, to $6.57 a share. Wall Street expects part of that growth to come from an uptick in sales of the iPhone 15.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Has Apple Inc. (NASDAQ: AAPL) gotten too expensive for its own good? A stock is said to be priced to perfection when its P/E ratio reflects a balance between the company’s growth expectations and current market sentiment. But here’s a big problem when revenue and earnings are dropping, and the P/E remains fairly high: In that situation, with any stock, not just Apple, investors believe the company can sustain its growth trajectory without hiccups, making it a compelling investment. | Has Apple Inc. (NASDAQ: AAPL) gotten too expensive for its own good? Analysts have been lowering their revenue estimates in recent months. PC Sales Declined in Q3 Meanwhile, market intelligence firm IDC found that global personal computer sales declined in the third quarter. | Has Apple Inc. (NASDAQ: AAPL) gotten too expensive for its own good? Single-Digit Revenue Growth Morningstar’s Brian Colello says he views shares as undervalued, and that he foresees “only mid-single-digit revenue growth for the company over the next few years.” That revenue growth rate is key to the stock’s potential for price appreciation. A stock is said to be priced to perfection when its P/E ratio reflects a balance between the company’s growth expectations and current market sentiment. | Has Apple Inc. (NASDAQ: AAPL) gotten too expensive for its own good? Analysts have been lowering their revenue estimates in recent months. A stock is said to be priced to perfection when its P/E ratio reflects a balance between the company’s growth expectations and current market sentiment. |
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13191.0 | 2023-10-10 00:00:00 UTC | US STOCKS-Wall Street gains as Fed officials strike dovish tone | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-gains-as-fed-officials-strike-dovish-tone-0 | By Shashwat Chauhan and Ankika Biswas
Oct 10 (Reuters) - The S&P 500 and the Nasdaq touched three-week highs on Tuesday as dovish comments from U.S. Federal Reserve officials pushed Treasury yields lower, while investors kept a close eye on the latest developments amid escalating tensions in the Middle East.
Following the comments from top Fed officials on Monday, Atlanta Fed President Raphael Bostic said the U.S. central bank does not need to raise interest rates any further, and sees no recession ahead.
The 10-year Treasury yield US10YT=RR came off its 16-year peak on Tuesday, on track for its steepest single-day drop in nearly seven months, as trading resumed in the U.S. bond market after Columbus Day, also known as Indigenous Peoples' Day.
"The larger picture is that the Fed is clearly shifting away from the prospect of a November rate hike," said Thierry Wizman, global FX and interest rates strategist at Macquarie.
Megacap stocks Apple AAPL.O, Microsoft MSFT.O, Nvidia NVDA.O, Amazon.com AMZN.O, Tesla TSLA.O and Meta Platforms META.O rose between 0.2% and 3.0%.
At 12:00 p.m. ET, the Dow Jones Industrial Average .DJI was up 267.48 points, or 0.80%, at 33,872.13, the S&P 500 .SPX was up 47.13 points, or 1.09%, at 4,382.79, and the Nasdaq Composite .IXIC was up 165.62 points, or 1.23%, at 13,649.86.
Traders put the chance of interest rates remaining unchanged in November and December at around 88% and 74%, respectively, according to CME's FedWatch tool.
Remarks from a few more Fed officials including Minneapolis' Neel Kashkari, San Francisco's Mary Daly and Board Governor Christopher Waller are also expected during the day.
All 11 major S&P 500 sectors were trading higher, with consumer discretionary .SPLRCD leading gains, while energy .SPNY and healthcare .SPXHC lagged.
Israel hammered the Gaza Strip with the fiercest air strikes in its 75-year conflict with the Palestinians, razing entire districts despite a threat from Hamas militants to execute a captive for each home hit.
Israel's embassy in Washington said the death toll from the weekend Hamas attacks had surpassed 1,000, while Gaza's health ministry said Israel's retaliatory strikes had killed at least 830 people.
Later in the week, focus will turn to inflation readings including September producer price and consumer price indexes as well as the Fed's September meeting minutes.
Among stocks, PepsiCoPEP.O rose 1.5% after the company raised its annual profit forecast for a third time this year. Rival Coca-Cola KO.N was also up 2.3%.
Truist FinancialTFC.N gained 6.7% after a report said the bank is in talks to sell its insurance brokerage unit to private equity firm Stone Point for about $10 billion.
Rivian Automotive RIVN.O advanced 5.4% after UBS upgraded the EV maker's stock to "buy" from "neutral".
Advancing issues outnumbered decliners for a 5.30-to-1 ratio on the NYSE and a 3.22-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and two new lows, while the Nasdaq recorded 46 new highs and 129 new lows.
(Reporting by Shashwat Chauhan and Ankika Biswas in Bengaluru; Additional reporting by Terence Gabriel; Editing by Arun Koyyur and Shounak Dasgupta)
(([email protected]; [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 stocks Apple AAPL.O, Microsoft MSFT.O, Nvidia NVDA.O, Amazon.com AMZN.O, Tesla TSLA.O and Meta Platforms META.O rose between 0.2% and 3.0%. By Shashwat Chauhan and Ankika Biswas Oct 10 (Reuters) - The S&P 500 and the Nasdaq touched three-week highs on Tuesday as dovish comments from U.S. Federal Reserve officials pushed Treasury yields lower, while investors kept a close eye on the latest developments amid escalating tensions in the Middle East. Remarks from a few more Fed officials including Minneapolis' Neel Kashkari, San Francisco's Mary Daly and Board Governor Christopher Waller are also expected during the day. | Megacap stocks Apple AAPL.O, Microsoft MSFT.O, Nvidia NVDA.O, Amazon.com AMZN.O, Tesla TSLA.O and Meta Platforms META.O rose between 0.2% and 3.0%. Later in the week, focus will turn to inflation readings including September producer price and consumer price indexes as well as the Fed's September meeting minutes. The S&P index recorded 10 new 52-week highs and two new lows, while the Nasdaq recorded 46 new highs and 129 new lows. | Megacap stocks Apple AAPL.O, Microsoft MSFT.O, Nvidia NVDA.O, Amazon.com AMZN.O, Tesla TSLA.O and Meta Platforms META.O rose between 0.2% and 3.0%. By Shashwat Chauhan and Ankika Biswas Oct 10 (Reuters) - The S&P 500 and the Nasdaq touched three-week highs on Tuesday as dovish comments from U.S. Federal Reserve officials pushed Treasury yields lower, while investors kept a close eye on the latest developments amid escalating tensions in the Middle East. Following the comments from top Fed officials on Monday, Atlanta Fed President Raphael Bostic said the U.S. central bank does not need to raise interest rates any further, and sees no recession ahead. | Megacap stocks Apple AAPL.O, Microsoft MSFT.O, Nvidia NVDA.O, Amazon.com AMZN.O, Tesla TSLA.O and Meta Platforms META.O rose between 0.2% and 3.0%. By Shashwat Chauhan and Ankika Biswas Oct 10 (Reuters) - The S&P 500 and the Nasdaq touched three-week highs on Tuesday as dovish comments from U.S. Federal Reserve officials pushed Treasury yields lower, while investors kept a close eye on the latest developments amid escalating tensions in the Middle East. The 10-year Treasury yield US10YT=RR came off its 16-year peak on Tuesday, on track for its steepest single-day drop in nearly seven months, as trading resumed in the U.S. bond market after Columbus Day, also known as Indigenous Peoples' Day. |
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13206.0 | 2023-10-09 00:00:00 UTC | Should new tech rules apply to Microsoft's Bing, Apple's iMessage, EU asks | AAPL | https://www.nasdaq.com/articles/should-new-tech-rules-apply-to-microsofts-bing-apples-imessage-eu-asks | By Foo Yun Chee
BRUSSELS, Oct 9 (Reuters) - EU antitrust regulators are asking Microsoft's MSFT.O users and rivals whether Bing should comply with new tough tech rules and also whether that should be the case for Apple's AAPL.O iMessage, people familiar with the matter said on Monday.
The European Commission in September opened investigations to assess whether Microsoft's Bing, Edge and Microsoft Advertising as well as Apple's iMessage should be subject to the Digital Markets Act (DMA).
The probes came after the companies contested the EU competition regulator labelling these services as core platform services under the DMA.
The DMA requires Microsoft, Apple, Alphabet's GOOGL.O Google, Amazon AMZN.O, Meta Platforms META.O and ByteDance to allow for third-party apps or app stores on their platforms and to make it easier for users to switch from default apps to rivals, among other obligations.
The Commission sent out questionnaires earlier this month, asking rivals and users to rate the importance of Microsoft's three services and Apple's iMessage versus competing services.
The people familiar with the matter said the EU watchdog asked if there was anything specific to the services that business users rely on and how they fit into the companies' ecosystems.
It also asked for the number of users using the services.
Respondents were given less than a week to provide feedback. The Commission wants to complete its investigation within five months.
(Reporting by Foo Yun Chee, editing by Deborah Kyvrikosaios and Angus MacSwan)
(([email protected]; +32 2 585 2866; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Foo Yun Chee BRUSSELS, Oct 9 (Reuters) - EU antitrust regulators are asking Microsoft's MSFT.O users and rivals whether Bing should comply with new tough tech rules and also whether that should be the case for Apple's AAPL.O iMessage, people familiar with the matter said on Monday. The people familiar with the matter said the EU watchdog asked if there was anything specific to the services that business users rely on and how they fit into the companies' ecosystems. (Reporting by Foo Yun Chee, editing by Deborah Kyvrikosaios and Angus MacSwan) (([email protected]; +32 2 585 2866; Reuters Messaging: [email protected])) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Foo Yun Chee BRUSSELS, Oct 9 (Reuters) - EU antitrust regulators are asking Microsoft's MSFT.O users and rivals whether Bing should comply with new tough tech rules and also whether that should be the case for Apple's AAPL.O iMessage, people familiar with the matter said on Monday. The probes came after the companies contested the EU competition regulator labelling these services as core platform services under the DMA. The Commission sent out questionnaires earlier this month, asking rivals and users to rate the importance of Microsoft's three services and Apple's iMessage versus competing services. | By Foo Yun Chee BRUSSELS, Oct 9 (Reuters) - EU antitrust regulators are asking Microsoft's MSFT.O users and rivals whether Bing should comply with new tough tech rules and also whether that should be the case for Apple's AAPL.O iMessage, people familiar with the matter said on Monday. The DMA requires Microsoft, Apple, Alphabet's GOOGL.O Google, Amazon AMZN.O, Meta Platforms META.O and ByteDance to allow for third-party apps or app stores on their platforms and to make it easier for users to switch from default apps to rivals, among other obligations. The Commission sent out questionnaires earlier this month, asking rivals and users to rate the importance of Microsoft's three services and Apple's iMessage versus competing services. | By Foo Yun Chee BRUSSELS, Oct 9 (Reuters) - EU antitrust regulators are asking Microsoft's MSFT.O users and rivals whether Bing should comply with new tough tech rules and also whether that should be the case for Apple's AAPL.O iMessage, people familiar with the matter said on Monday. The Commission sent out questionnaires earlier this month, asking rivals and users to rate the importance of Microsoft's three services and Apple's iMessage versus competing services. The people familiar with the matter said the EU watchdog asked if there was anything specific to the services that business users rely on and how they fit into the companies' ecosystems. |
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13232.0 | 2023-10-08 00:00:00 UTC | The Nasdaq Might Bottom in October, According to This Wall Street Veteran -- 2 Super Stocks to Buy Hand Over Fist | AAPL | https://www.nasdaq.com/articles/the-nasdaq-might-bottom-in-october-according-to-this-wall-street-veteran-2-super-stocks-to | The stock market has entered October after two very difficult months, particularly for the technology sector. August and September delivered a combined 7.4% loss for the technology-laden Nasdaq Composite.
But those months tend to be weak each year due to seasonal factors. Many Wall Street bankers and fund managers are away on vacation, leaving fewer buyers to step in and support dips in the market. Investors are also navigating a surge in interest rates, especially in government bonds, which could trigger weakness in the broader economy.
But in an interview with CNBC earlier this week, Wall Street veteran Art Cashin described October as "the month of bottoms." He would know! He's the Director of Floor Operations at the New York Stock Exchange for UBS, and he has worked on the Street since 1959.
Interestingly, October also marked the end of a major decline in stocks in 2022. And research by analyst Eric Krull suggests October has the best track record for forming new bullish trends. If Cashin -- and history -- are correct, here are two stocks investors will want in their portfolios.
Image source: Getty Images.
1. Apple: Keep it simple!
There's no need to get adventurous during such a turbulent period in the stock market. Owning a stake in the world's largest company, Apple (NASDAQ: AAPL), not only presents a growth opportunity but also protects against downside risks because the organization is in such a strong financial position. Plus, Apple just released a slate of hot new products that could drive growth into the new year.
Its flagship iPhone 15 smartphone, which was unveiled on Sept. 12, appears to be in high demand. Early projections suggest initial sales could top 80 million units, and that would be a 6% improvement over the launch of the iPhone 14 last year. The iPhone 15 comes with the new A17 chip, which is Apple's most powerful ever, and it could even be the most powerful in the entire smartphone market right now.
The A17 is capable of rapidly handling predictive processes when using the keyboard, the camera, and Siri, for example, which are features underpinned by artificial intelligence (AI). Similarly, Apple's latest S9 chip allows its smartwatches to recognize finger gestures which introduces a whole new dynamic to the platform. Both chips process AI on-device rather than in the cloud, which leads to more responsive results.
Apple is coming off three consecutive quarters of declining revenue which, combined with the recent market sell-off, is the reason its stock is down 12% from its all-time high. But Wall Street is forecasting a return to growth on an annual basis in fiscal 2024 (which just began in October). Apple could generate $403 billion for the year, which would be a 6% increase from the $383 billion in fiscal 2023 revenue that analysts expect to see when the company reports its final results later this month.
But one of the best reasons to own Apple stock is because it returns truckloads of money to shareholders -- it's one of Warren Buffett's favorite things about the company, in fact. Through the first nine months of fiscal 2023 (ended July 1), Apple has paid $11.2 billion in dividends to its investors, and it has spent a whopping $56.5 billion on share buybacks.
The latter is key because share buybacks can serve as a support mechanism for Apple's stock price. The company is consistently purchasing billions of dollars' worth of its own shares to shrink the float and, theoretically, increase the price per share.
Apple's fundamentals look solid going into the new year on the back of its recent product releases, but the company's focus on shareholders is a great feature to have in an investment during an uncertain time in the market.
2. Oracle: A great investment in the future of technology
With technology stocks suffering broad declines, this might also be a great time for investors to set their portfolios up for the future. Oracle (NYSE: ORCL) offers a great opportunity to do just that, and it's anchored by a track record spanning almost five decades because the company has been at the forefront of the tech sector since it was founded in 1977.
Oracle has come a long way since its origins in developing database management software because today, it's a leading provider of cloud computing infrastructure and technology. It offers an entire portfolio of cloud-based software applications for businesses in just about every industry, from healthcare to retail to financial services. However, the company has also invested heavily in best-in-class data center infrastructure, which is serving as a foundation for its entry into the emerging artificial intelligence industry.
AI has been a focus for Oracle this year as it races to compete with other tech giants jostling for leadership positions in the space. AI applications are developed, trained, and deployed in the cloud, so Oracle has partnered with leading semiconductor giant Nvidia to build advanced data center hardware specifically for those activities.
Oracle's co-founder and chairman, Larry Ellison, says the company's interconnected Nvidia superclusters can train AI models at twice the speed and half the cost of other cloud providers. Its investments in this area are already paying off because, in the recent second quarter of 2023 (ended June 30), Oracle said it had secured $4 billion in commitments from generative AI developers for its new Gen2 Cloud infrastructure -- that number doubled from $2 billion in just three months.
But demand from developers might still be in the early stages because, according to Cathie Wood's Ark Investment Management, AI software companies will be fighting over a revenue pie worth $14 trillion by 2030, so they'll need all the computing power they can get.
In Q2, Oracle said it had $65 billion worth of remaining performance obligations across its business, but demand is far outpacing supply, so it's racing to build more data centers, which it says should lead to an acceleration in its revenue growth toward the end of 2023.
Oracle stock hit an all-time high this year, but it's trading 18% below that level amid the broader tech sell-off. That's a great opportunity for investors to take a long-term position.
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Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Nvidia, and Oracle. 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. | Owning a stake in the world's largest company, Apple (NASDAQ: AAPL), not only presents a growth opportunity but also protects against downside risks because the organization is in such a strong financial position. AI applications are developed, trained, and deployed in the cloud, so Oracle has partnered with leading semiconductor giant Nvidia to build advanced data center hardware specifically for those activities. But demand from developers might still be in the early stages because, according to Cathie Wood's Ark Investment Management, AI software companies will be fighting over a revenue pie worth $14 trillion by 2030, so they'll need all the computing power they can get. | Owning a stake in the world's largest company, Apple (NASDAQ: AAPL), not only presents a growth opportunity but also protects against downside risks because the organization is in such a strong financial position. Apple is coming off three consecutive quarters of declining revenue which, combined with the recent market sell-off, is the reason its stock is down 12% from its all-time high. Apple's fundamentals look solid going into the new year on the back of its recent product releases, but the company's focus on shareholders is a great feature to have in an investment during an uncertain time in the market. | Owning a stake in the world's largest company, Apple (NASDAQ: AAPL), not only presents a growth opportunity but also protects against downside risks because the organization is in such a strong financial position. Apple is coming off three consecutive quarters of declining revenue which, combined with the recent market sell-off, is the reason its stock is down 12% from its all-time high. Apple could generate $403 billion for the year, which would be a 6% increase from the $383 billion in fiscal 2023 revenue that analysts expect to see when the company reports its final results later this month. | Owning a stake in the world's largest company, Apple (NASDAQ: AAPL), not only presents a growth opportunity but also protects against downside risks because the organization is in such a strong financial position. The stock market has entered October after two very difficult months, particularly for the technology sector. If Cashin -- and history -- are correct, here are two stocks investors will want in their portfolios. |
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13238.0 | 2023-10-07 00:00:00 UTC | Forget Disney. Apple (NASDAQ:AAPL) Should Buy Nintendo to Jolt iPhone, Vision Pro Sales | AAPL | https://www.nasdaq.com/articles/forget-disney.-apple-nasdaq%3Aaapl-should-buy-nintendo-to-jolt-iphone-vision-pro-sales | It's hard to avoid the rumors surrounding Apple (NASDAQ:AAPL) and how a Disney (NYSE:DIS) acquisition would pan out. Though there are many ways Disney could enhance Apple's ecosystem, I'd argue that the iPhone maker would be better off buying Japanese video game maker Nintendo (OTC:NTDOY) to potentially jolt the iPhone and Vision Pro as it looks to move further into the gaming waters. Either way, I am bullish on Apple stock as shares cool for autumn.
Undoubtedly, there are some serious troubles at the House of Mouse right now. The stock is heavily discounted, now down around 60% from its all-time high hit back in 2021. Still, the $152 billion behemoth isn't just too large to be an acquisition target (maybe except by titans like Apple), but there are too many moving parts to the business, and they don't appear to be moving gracefully together these days.
Add succession issues into the equation, as CEO Bob Iger looks to turn the tides under yet another tenure, and it's clear that Disney may not be the juiciest Apple (please forgive the pun) of Apple's eye at this point in time.
Why Apple Probably Won't Buy Disney in Whole
The Apple Vision Pro reveal gave a bit of time to Disney and its top boss, Bob Iger, to discuss the possibilities for Disney in the age of spatial computing. And while Disney's streaming platform, deep library of content, and ESPN sports channel would fit well in the Apple TV+ arsenal, we can't forget about the Theme Parks and Cruises business, which isn't precisely within Apple's circle of competence!
Even if bought Disney in whole, what would it do with parks? I'm not so sure it wants to get into that business. Though, I suppose anything is possible if the price is right.
Iger recently announced the firm's intention to double down on its Parks business, which seems like a pretty wise move, given that it seems to need to do more to justify ticket price hikes. In any case, I wouldn't get my hopes up for a Disney-Apple deal, as it doesn't seem to make a lot of sense, in my humble opinion. However, I do think pursuing ESPN could prove wise, given how incredible the sports content looked on Vision Pro during its big reveal back in June.
Back to Nintendo. Nintendo seems to "rhyme" with Disney but in the world of video games. The company has a strong, time-tested library of content, characters, and expertise. And though it has Nintendo World theme parks, which recently opened in Universal Studios Hollywood earlier this year, I'd argue that parks are an incredibly small part of the overall pie, at least compared to Disney.
Video Gaming Could be More of a Game-Changer for Apple
I view gaming as an area that could mean the difference between a mild Vision Pro launch and a scorching hot one. Additionally, it's hard to look past the graphical capabilities of the iPhone 15 Pro and iPhone 15 Pro Max. With console-worthy game titles (like Resident Evil 4 and Resident Evil Village) now playable on the iPhone 15, Apple seems to have advanced on the hardware front such that it now makes sense to double-down in the realm of triple-A gaming to make the most of the hardware.
Indeed, the latest line of console-grade games look impressive when played on the latest iPhone. However, there's one small thing that could prevent the iPhone from eating into the share of the PC or console gaming market -- a lack of titles.
Apple could acquire its way to solve the problem. Given that Nintendo has a ton of impressive family-friendly exclusives that we all know and love, I view Nintendo as the perfect piece to the puzzle.
It's not just the iPhone that could be a disruptive triple-A gaming platform. The Vision Pro's hardware looks to be best-in-class, but on the front of gaming, I'm sure you could give the edge to Meta Platforms (NASDAQ:META) and its Meta Quest 3 headset.
A recent FastCompany article I came across gave praise to Meta's plan to beat Apple, noting that Meta's offering is cheaper, faster, and more fun. In the power versus affordability debate, I think power wins every step of the way (one point for Apple Vision Pro). Still, at this juncture, it's hard to deny that Meta's offering looks more fun, given how much emphasis was placed on gaming. Apple has the power to change things, however, and all it could take is a few major partnerships or one big acquisition.
Is Apple Stock a Buy, According to Analysts?
On TipRanks, AAPL stock comes in as a Moderate Buy. Out of 29 analyst ratings, there are 20 Buys and nine Holds. The average Apple stock price target is $207.69, implying upside potential of 17%. Analyst price targets range from a low of $167.00 per share to a high of $240.00 per share.
The Bottom Line
Buying Disney would give Apple a nice edge as it continues investing in its Apple TV+ business. Still, I'd argue Nintendo would give the iPhone maker a better bang for its buck, as exclusive games and characters would enable the firm to better showcase the potential of its graphically-capable hardware.
Additionally, the only thing that may stop the Vision Pro from being a mainstream success may be how "fun" it is for users. Sure, its $3,500 sticker price is a shocker, but if it has some exclusive games on it, I'd bet a lot of people will be itching to get their hands on one anyway.
Disclosure
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 hard to avoid the rumors surrounding Apple (NASDAQ:AAPL) and how a Disney (NYSE:DIS) acquisition would pan out. On TipRanks, AAPL stock comes in as a Moderate Buy. Iger recently announced the firm's intention to double down on its Parks business, which seems like a pretty wise move, given that it seems to need to do more to justify ticket price hikes. | It's hard to avoid the rumors surrounding Apple (NASDAQ:AAPL) and how a Disney (NYSE:DIS) acquisition would pan out. On TipRanks, AAPL stock comes in as a Moderate Buy. Though there are many ways Disney could enhance Apple's ecosystem, I'd argue that the iPhone maker would be better off buying Japanese video game maker Nintendo (OTC:NTDOY) to potentially jolt the iPhone and Vision Pro as it looks to move further into the gaming waters. | It's hard to avoid the rumors surrounding Apple (NASDAQ:AAPL) and how a Disney (NYSE:DIS) acquisition would pan out. On TipRanks, AAPL stock comes in as a Moderate Buy. Though there are many ways Disney could enhance Apple's ecosystem, I'd argue that the iPhone maker would be better off buying Japanese video game maker Nintendo (OTC:NTDOY) to potentially jolt the iPhone and Vision Pro as it looks to move further into the gaming waters. | It's hard to avoid the rumors surrounding Apple (NASDAQ:AAPL) and how a Disney (NYSE:DIS) acquisition would pan out. On TipRanks, AAPL stock comes in as a Moderate Buy. And while Disney's streaming platform, deep library of content, and ESPN sports channel would fit well in the Apple TV+ arsenal, we can't forget about the Theme Parks and Cruises business, which isn't precisely within Apple's circle of competence! |
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13253.0 | 2023-10-06 00:00:00 UTC | Microsoft Stock: Don't Overlook This AI Pick Hiding in Plain Sight | AAPL | https://www.nasdaq.com/articles/microsoft-stock%3A-dont-overlook-this-ai-pick-hiding-in-plain-sight | Shares of Microsoft (MSFT) have been strong this year - now up 33% year to date - thanks primarily to the artificial intelligence (AI) rush. What's more impressive than its stake in ChatGPT parent OpenAI is that the firm seems to have melded generative AI across its broader range of offerings, from its search engine Bing — which appears to be utilizing ChatGPT-4 as a weapon to be more competitive with Alphabet's (GOOG) Google Search — to its Office suite, its flagship Windows operating system, and even Azure.
Undoubtedly, there's a gigantic opportunity to monetize Microsoft's offerings further as generative AI looks poised to enhance productivity in the workplace. Even with the threat of antitrust, though, Microsoft doesn't want to hinder its pace as it preserves its first-mover advantage in the field of generative AI.
Microsoft Is the AI Play of the Day - But Alphabet Wants the Title
Of course, Microsoft isn't the only company that's aggressively pulling the AI-evolution lever. Alphabet has been introducing new AI innovations rapidly, and is ready to implant them across its everyday productivity offerings, just like Microsoft.
Certainly, the second thing (after search) that likely comes to mind when you think of Google at this point is AI. And though allowing Microsoft to be a frontrunner in AI may have its fair share of downsides, it may also have some pluses.
In its current state, even the most powerful large language models (think ChatGPT-4 and the like) are way too confident in the responses they provide - including the embarrassingly erroneous ones. Indeed, adding sources to Bing AI seems shrewd. But it's not a surefire resolution to evade "hallucinations."
In any case, it's clear that Microsoft has its fair share of rivals who are more than willing to replicate its profoundly impressive AI rollout strategy as they seek to tackle problems as they arise. But that doesn't mean they'll have any success at topping Microsoft anytime soon.
As it stands, Microsoft stock remains the AI play of the day - at least in my books.
Microsoft's Nadella Goes to Washington
Recently, Microsoft CEO Satya Nadella testified on search before the U.S. Department of Justice amid its antitrust case against Google. Though Bing has improved by leaps and bounds with the inclusion of its ChatGPT, Nadella noted that Microsoft's rival product is still having a tough time competing against Google Search.
There's no doubt that Google Search has a wide moat that may take more than just an intriguing LLM to penetrate. Further, Google has its own LLM that's every bit as capable. And that's not the only factor keeping users from "Binging" it instead of "Googling." As you may know, Google has quite an impressive ecosystem of productivity tools. Just how entrenched are its users?
Though the Google ecosystem may pale in comparison to Apple's (AAPL) walled garden, I still think it's all too easy to stick with Google Search if you're also a user of its productivity tools, like Gmail, Sheets, Docs, and more. And let's not forget the habit of taking to Google for prompts that have been built over the course of decades. Certainly, entering “google.com” on your web browser is pretty much muscle memory for many of us at this point!
Of course, LLM's propensity to “hallucinate” is another reason to take to Google for serious searches (based on real facts) over Bing, regardless of how much better it is with ChatGPT-4 enabled.
"You get up in the morning, you brush your teeth, and you search on Google," Nadella said in front of the Department of Justice. "With that level of habit forming, the only way to change is by changing defaults."
He's right. It takes more than just AI innovation to change consumer behavior. Apple may be the company that can bring forth the real sea change in the search space. Reportedly, Microsoft pitched Bing to Apple as a replacement for its default search option way back in 2020. Ultimately, Microsoft pointed the finger at Google for the deal's ultimate demise.
So far, Nadella is doing a great job of redirecting anti-trust scrutiny away from his firm and towards one of its biggest rivals - at least in the area of search. As it stands, Bing does not look like a Google-killer, even with the power of ChatGPT on its side. It's not even close.
The Bottom Line
Microsoft stock may be one of the more "obvious" AI picks right here. The same goes for Alphabet. That said, markets may still be underestimating the behemoth's potential, especially after the latest 12% pullback in MSFT.
www.barchart.com
Wells Fargo's Michael Turrin thinks Microsoft stock is worthy of his firm's Tactical Ideas List, thanks to its "favorable path" forward and further upside due to AI. Turrin has a $400 price target, suggesting the stock could make a more than 25% upward move from here.
Turrin could be right to pound the table on shares. Microsoft may be one of the most "obvious" AI plays right now. But that doesn't mean it's not an opportunity hiding in plain sight.
On the date of publication, Joey Frenette had a position in: MSFT , AAPL , GOOG . 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. | Though the Google ecosystem may pale in comparison to Apple's (AAPL) walled garden, I still think it's all too easy to stick with Google Search if you're also a user of its productivity tools, like Gmail, Sheets, Docs, and more. On the date of publication, Joey Frenette had a position in: MSFT , AAPL , GOOG . In any case, it's clear that Microsoft has its fair share of rivals who are more than willing to replicate its profoundly impressive AI rollout strategy as they seek to tackle problems as they arise. | Though the Google ecosystem may pale in comparison to Apple's (AAPL) walled garden, I still think it's all too easy to stick with Google Search if you're also a user of its productivity tools, like Gmail, Sheets, Docs, and more. On the date of publication, Joey Frenette had a position in: MSFT , AAPL , GOOG . What's more impressive than its stake in ChatGPT parent OpenAI is that the firm seems to have melded generative AI across its broader range of offerings, from its search engine Bing — which appears to be utilizing ChatGPT-4 as a weapon to be more competitive with Alphabet's (GOOG) Google Search — to its Office suite, its flagship Windows operating system, and even Azure. | Though the Google ecosystem may pale in comparison to Apple's (AAPL) walled garden, I still think it's all too easy to stick with Google Search if you're also a user of its productivity tools, like Gmail, Sheets, Docs, and more. On the date of publication, Joey Frenette had a position in: MSFT , AAPL , GOOG . What's more impressive than its stake in ChatGPT parent OpenAI is that the firm seems to have melded generative AI across its broader range of offerings, from its search engine Bing — which appears to be utilizing ChatGPT-4 as a weapon to be more competitive with Alphabet's (GOOG) Google Search — to its Office suite, its flagship Windows operating system, and even Azure. | Though the Google ecosystem may pale in comparison to Apple's (AAPL) walled garden, I still think it's all too easy to stick with Google Search if you're also a user of its productivity tools, like Gmail, Sheets, Docs, and more. On the date of publication, Joey Frenette had a position in: MSFT , AAPL , GOOG . Microsoft Is the AI Play of the Day - But Alphabet Wants the Title Of course, Microsoft isn't the only company that's aggressively pulling the AI-evolution lever. |
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13270.0 | 2023-10-05 00:00:00 UTC | 3 Unstoppable Nasdaq Stocks to Buy and Hold for the Next Decade | AAPL | https://www.nasdaq.com/articles/3-unstoppable-nasdaq-stocks-to-buy-and-hold-for-the-next-decade | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In Q2 2023, U.S. household wealth hit an all-time high at $154.3 trillion, marking a crucial milestone for the stock market. This achievement signals the full rebound of consumer wealth after facing challenges linked to inflation-driven fluctuations in real estate and stock prices.
Positive U.S. economic data in September, including retail sales and producer prices, may deter Fed rate hikes. Low jobless claims also indicate a robust labor market. Indeed, these trends could benefit undervalued stocks, particularly various high-growth Nasdaq stocks that continue to dominate many index funds.
As the wealth of the average investor grows, the market-cap-weighted nature of many ETFs suggests investors may have no choice but to continue adding to these top stocks. As it happens, the three Nasdaq stocks to buy and hold that I’ve listed below are also among the most profitable big-cap tech companies with the best margins and competitive advantages.
Let’s dive into why these three companies are worth buying and holding for the next decade.
Alphabet (GOOG/GOOGL)
Source: Benny Marty / Shutterstock.com
Alphabet (NASDAQ:GOOG)/(NASDAQ:GOOGL), a leader in internet services and products, is best known for its key Google Services and Google Cloud segments. The search company boasts strong financial metrics, with a high net income margin, impressive free cash flow and return on capital employed (ROCE) metrics, outperforming industry averages.
Alphabet boasts a massive user base through YouTube, Google products and Android. It serves over half a billion users across 15 Google platforms, with 6 currently seeing over 2 billion active users. Additionally, the company has intensified AI development this year, spurred by heightened interest. Alphabet introduced Bard, its version of ChatGPT, in March, though it faced challenges during its initial launch.
Alphabet and peers show Q2 2023 recovery in digital ad business. Continued growth may boost the company’s stock, but October earnings will confirm. Alphabet’s cost-cutting measures and efficiency decisions could contribute to ongoing earnings beats. In my view, this is a steady “rock of Gibraltar” kind of stock investors can own in good times and bad, and I’m considering buying some on potential dips moving forward.
Meta Platforms (META)
Source: Blue Planet Studio / Shutterstock.com
Meta Platforms (NASDAQ:META) experienced 145% year-to-date growth, rebounding from $124 to roughly $300 per share. That followed an 11% year-over-year revenue boost and a 16% net income rise in Q2. Notably, these results came despite ongoing metaverse investments, something that’s hampered the stock in the past. Now, it seems most investors are looking past the company’s long-term investments and are focusing on the cash flow-producing core businesses that drive the company’s value instead.
Indeed, Meta is among the most attractive mega-cap tech stocks given the AI boom, and a solid choice for your portfolio among the so-called “Magnificent 7” stocks. The company’s generative AI relies on the cloud’s computational power, with major investments flowing into cloud infrastructure. Meta alone invested $7.1 billion in Q1 2023. Owning market share in the fast-growing world of cloud computing is akin to controlling a valuable resource, much like an oilfield or a large factory complex in previous generations.
In recent META news, Mark Zuckerberg launched Meta’s Connect developer conference, introducing AI products like smart glasses, image-generating bots and an updated VR headset. If any one (or all) of these products are hits, perhaps this company’s growth rate could reaccelerate, something that could take this stock on a nice run over the next decade.
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
Despite a market decline, Apple (NASDAQ:AAPL) shares stood out, closing at $174.79, up 0.49%, as the iPhone 15 launched. Apple has outperformed, rising 39% year-to-date, while tech peers grapple with interest rate concerns amid a Fed battle against inflation.
However, the recent market selloff has made Apple’s shares more affordable, with a lower price-earnings ratio compared to many tech companies. That presents a potential buying opportunity for long-term investors, particularly those who think economic conditions will improve over the course of the next decade.
Apple is not only offering an appealing stock price but also diversifying its business. It plans to release the Vision Pro, its first VR/AR headset, next year. Moreover, Apple is significantly investing in India to expand its manufacturing operations, reducing its reliance on China and mitigating supply chain risks. Apple’s strategic diversification makes it a compelling investment for the month and possibly the year, especially if its stock continues to decline.
On the date of publication, Chris MacDonald has a long position in AAPL and META. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The 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: Eric Broder Van Dyke / Shutterstock.com Despite a market decline, Apple (NASDAQ:AAPL) shares stood out, closing at $174.79, up 0.49%, as the iPhone 15 launched. On the date of publication, Chris MacDonald has a long position in AAPL and META. In my view, this is a steady “rock of Gibraltar” kind of stock investors can own in good times and bad, and I’m considering buying some on potential dips moving forward. | Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Despite a market decline, Apple (NASDAQ:AAPL) shares stood out, closing at $174.79, up 0.49%, as the iPhone 15 launched. On the date of publication, Chris MacDonald has a long position in AAPL and META. The search company boasts strong financial metrics, with a high net income margin, impressive free cash flow and return on capital employed (ROCE) metrics, outperforming industry averages. | Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Despite a market decline, Apple (NASDAQ:AAPL) shares stood out, closing at $174.79, up 0.49%, as the iPhone 15 launched. On the date of publication, Chris MacDonald has a long position in AAPL and META. InvestorPlace - Stock Market News, Stock Advice & Trading Tips In Q2 2023, U.S. household wealth hit an all-time high at $154.3 trillion, marking a crucial milestone for the stock market. | Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Despite a market decline, Apple (NASDAQ:AAPL) shares stood out, closing at $174.79, up 0.49%, as the iPhone 15 launched. On the date of publication, Chris MacDonald has a long position in AAPL and META. Continued growth may boost the company’s stock, but October earnings will confirm. |
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13292.0 | 2023-10-04 00:00:00 UTC | Here's the Latest Must-See News From These 2 Dow Jones Stocks | AAPL | https://www.nasdaq.com/articles/heres-the-latest-must-see-news-from-these-2-dow-jones-stocks | Investors have had to deal with some tough times lately, and even the Dow Jones Industrial Average (DJINDICES: ^DJI) hasn't been immune to the forces acting on the stock market. On Wednesday morning, however, the Dow briefly saw a bit of a bounce, opening slightly higher after dealing with steep declines in recent days. Yet even the early gains seemed tenuous.
The 30 companies in the Dow Jones Industrials are among the largest in the world, and you can find several tech stocks within the Dow. Two of those stocks made news on Wednesday morning, as Intel (NASDAQ: INTC) announced a restructuring, while Apple (NASDAQ: AAPL) got some downbeat comments from stock analysts. Here's what you need to know.
Intel looks to break off a piece of its business
Shares of Intel were up about 1% early Wednesday. The semiconductor pioneer said late Tuesday that it would look to separate one of its business units from the rest of the company, with the intent of eventually creating a new publicly traded stock for those interested in the unit.
Intel said it would separate its programmable solutions group (PSG) into a stand-alone business. In Intel's view, the move will more effectively give PSG the autonomy and flexibility it needs in order to compete among other providers of field programmable gate arrays and other programmable products.
Already, PSG serves customers in the data center, communications, industrial, automotive, and aerospace & defense industries, and programmable solutions are becoming ever more important as technological innovation moves forward.
As part of the move, executive vice president Sandra Rivera will become the CEO of the PSG business. The semiconductor company expects PSG to operate independently as of Jan. 1, although it is likely to take longer for the two businesses to separate themselves fully from each other.
Currently, Intel believes it will do an initial public offering of the PSG business within the next two to three years, but it might also look to bring on institutional investors in the interim to accelerate PSG's growth while it remains as a privately held business.
Intel appears to be focusing heavily on making its existing businesses more appealing to investors. That's laudable, but Intel also needs to make sure it doesn't get left behind as many of its semiconductor rivals home in on huge demand for AI chips in the rush to capitalize on artificial intelligence.
Apple gets a downgrade
Elsewhere, shares of Apple were little changed Wednesday morning. The consumer electronics company has seen its stock fall about 12% since the beginning of August, and members of the Wall Street community appear to be losing confidence in the company's ability to keep growing at the pace they would like to see.
The downgrade came from KeyBanc Capital Markets, which cut its rating on the stock from overweight to sector weight. The primary motivation for the downgrade was rising concern about Apple's ability to keep generating revenue growth.
The launch of the iPhone 15 has faced a few hitches, and macroeconomic pressures in key markets like the U.S. could weigh on consumer demand for high-priced electronics more broadly. KeyBanc is also skeptical that current iPhone users will upgrade to the 15 models.
KeyBanc isn't the only Wall Street analyst company that's nervous about Apple's near-term sales. The combination of questionable demand and some potential issues with production throughput is particularly challenging, and few see the iPhone 15 as incorporating major changes with must-have features.
Apple's longer-term prospects arguably depend more on getting users to adopt its associated services than on its hardware sales. Nevertheless, that's a transition that will take a long time to play out. In the interim, you can expect further share-price volatility as sales figures come out.
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Dan Caplinger has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. 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. | Two of those stocks made news on Wednesday morning, as Intel (NASDAQ: INTC) announced a restructuring, while Apple (NASDAQ: AAPL) got some downbeat comments from stock analysts. Investors have had to deal with some tough times lately, and even the Dow Jones Industrial Average (DJINDICES: ^DJI) hasn't been immune to the forces acting on the stock market. That's laudable, but Intel also needs to make sure it doesn't get left behind as many of its semiconductor rivals home in on huge demand for AI chips in the rush to capitalize on artificial intelligence. | Two of those stocks made news on Wednesday morning, as Intel (NASDAQ: INTC) announced a restructuring, while Apple (NASDAQ: AAPL) got some downbeat comments from stock analysts. The semiconductor company expects PSG to operate independently as of Jan. 1, although it is likely to take longer for the two businesses to separate themselves fully from each other. KeyBanc isn't the only Wall Street analyst company that's nervous about Apple's near-term sales. | Two of those stocks made news on Wednesday morning, as Intel (NASDAQ: INTC) announced a restructuring, while Apple (NASDAQ: AAPL) got some downbeat comments from stock analysts. Currently, Intel believes it will do an initial public offering of the PSG business within the next two to three years, but it might also look to bring on institutional investors in the interim to accelerate PSG's growth while it remains as a privately held business. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. | Two of those stocks made news on Wednesday morning, as Intel (NASDAQ: INTC) announced a restructuring, while Apple (NASDAQ: AAPL) got some downbeat comments from stock analysts. Intel looks to break off a piece of its business Shares of Intel were up about 1% early Wednesday. Currently, Intel believes it will do an initial public offering of the PSG business within the next two to three years, but it might also look to bring on institutional investors in the interim to accelerate PSG's growth while it remains as a privately held business. |
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13310.0 | 2023-10-03 00:00:00 UTC | US STOCKS-Futures fall as 10-year yields hit fresh 16-yr highs; jobs data in focus | AAPL | https://www.nasdaq.com/articles/us-stocks-futures-fall-as-10-year-yields-hit-fresh-16-yr-highs-jobs-data-in-focus | By Ankika Biswas and Shashwat Chauhan
Oct 3 (Reuters) - U.S. stock index futures fell on Tuesday as prospects of an extended restrictive monetary policy pushed 10-year Treasury yields to a fresh 16-year high, while investors awaited key employment data to gauge the Federal Reserve's rate path.
Investors will closely monitor the Job Openings and Labor Turnover Survey (JOLTS), due at 10 a.m. ET, while a slew of other data including the ADP National Employment numbers and the more comprehensive non-farms payrolls will also be on their radar later this week.
The S&P 500 .SPX ended flat on Monday with utilities, often considered as a bond proxy, falling sharply on uncertainty over the U.S. interest rate path, with the 10-year Treasury yield US10-YT=RR scaling a 16-year peak following an agreement to avert a government shutdown.
"U.S. equities begin the fourth quarter as the tug-of-war between bull and bear camps remains," U.S. Bank Asset Management analysts wrote in a note.
"Persistent inflation, elevated interest rates and uncertainty over the pace of earnings growth in 2023 and 2024 remain headwinds to advancing equity prices."
Megacap growth stocks were largely mixed in Tuesday's premarket trading, with Apple AAPL.O, Tesla TSLA.O, Alphabet GOOGL.O, Microsoft MSFT.O and Amazon.com AMZN.O falling between 0.3% and 1.0%.
Megacaps have had a stellar first half this year driven by the Artificial Intelligence (AI) hype, though some believe these stocks could lose momentum as yields continue to rise.
Fed officials reiterated the for "some time" with indications of another likely hike this year.
Investors would also look out for remarks from Atlanta Fed President Raphael Bostic later in the day.
Traders' bets for at least a 25-basis-point rate hike in November stood at close to 26%, while they have priced in a 45% chance for a hike in December, according to the CME Group's FedWatch Tool.
At 7:21 a.m. ET, Dow e-minis 1YMcv1 were down 86 points, or 0.26%, S&P 500 e-minis EScv1 were down 12.5 points, or 0.29%, and Nasdaq 100 e-minis NQcv1 were down 56.75 points, or 0.38%.
Supporting sentiment, oil prices extended their decline in early trade after falling to a three-week low on Monday due to strength in the dollar, rising bond yields and mixed supply signals.
Among individual stocks, Airbnb ABNB.O fell 2.4% after Keybanc downgraded the vacation lodging platform's stock to "sector weight".
Point Biopharma GlobalPNT.O surged 84.7% as Eli Lilly and Co LLY.N is set to buy the cancer therapy developer for $1.4 billion, both companies said.
McCormickMKC.N dipped 3.0% after the spice maker missed third quarter sales estimates.
(Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru Editing by Vinay Dwivedi)
(([email protected]; [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 were largely mixed in Tuesday's premarket trading, with Apple AAPL.O, Tesla TSLA.O, Alphabet GOOGL.O, Microsoft MSFT.O and Amazon.com AMZN.O falling between 0.3% and 1.0%. By Ankika Biswas and Shashwat Chauhan Oct 3 (Reuters) - U.S. stock index futures fell on Tuesday as prospects of an extended restrictive monetary policy pushed 10-year Treasury yields to a fresh 16-year high, while investors awaited key employment data to gauge the Federal Reserve's rate path. The S&P 500 .SPX ended flat on Monday with utilities, often considered as a bond proxy, falling sharply on uncertainty over the U.S. interest rate path, with the 10-year Treasury yield US10-YT=RR scaling a 16-year peak following an agreement to avert a government shutdown. | Megacap growth stocks were largely mixed in Tuesday's premarket trading, with Apple AAPL.O, Tesla TSLA.O, Alphabet GOOGL.O, Microsoft MSFT.O and Amazon.com AMZN.O falling between 0.3% and 1.0%. By Ankika Biswas and Shashwat Chauhan Oct 3 (Reuters) - U.S. stock index futures fell on Tuesday as prospects of an extended restrictive monetary policy pushed 10-year Treasury yields to a fresh 16-year high, while investors awaited key employment data to gauge the Federal Reserve's rate path. The S&P 500 .SPX ended flat on Monday with utilities, often considered as a bond proxy, falling sharply on uncertainty over the U.S. interest rate path, with the 10-year Treasury yield US10-YT=RR scaling a 16-year peak following an agreement to avert a government shutdown. | Megacap growth stocks were largely mixed in Tuesday's premarket trading, with Apple AAPL.O, Tesla TSLA.O, Alphabet GOOGL.O, Microsoft MSFT.O and Amazon.com AMZN.O falling between 0.3% and 1.0%. By Ankika Biswas and Shashwat Chauhan Oct 3 (Reuters) - U.S. stock index futures fell on Tuesday as prospects of an extended restrictive monetary policy pushed 10-year Treasury yields to a fresh 16-year high, while investors awaited key employment data to gauge the Federal Reserve's rate path. ET, Dow e-minis 1YMcv1 were down 86 points, or 0.26%, S&P 500 e-minis EScv1 were down 12.5 points, or 0.29%, and Nasdaq 100 e-minis NQcv1 were down 56.75 points, or 0.38%. | Megacap growth stocks were largely mixed in Tuesday's premarket trading, with Apple AAPL.O, Tesla TSLA.O, Alphabet GOOGL.O, Microsoft MSFT.O and Amazon.com AMZN.O falling between 0.3% and 1.0%. "Persistent inflation, elevated interest rates and uncertainty over the pace of earnings growth in 2023 and 2024 remain headwinds to advancing equity prices." Fed officials reiterated the for "some time" with indications of another likely hike this year. |
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13343.0 | 2023-10-02 00:00:00 UTC | Stocks Mixed on Higher Bond Yields and Strength in Big Tech | AAPL | https://www.nasdaq.com/articles/stocks-mixed-on-higher-bond-yields-and-strength-in-big-tech | What you need to know…
The S&P 500 Index ($SPX) (SPY) today is down -0.23%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.48%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.47%.
Stocks this morning are mixed as rising bond yields weigh on the broader market. Hawkish comments from Fed Governor Bowman pushed bond yields higher today when she said, "I continue to expect that further interest rate increases will likely be needed to return inflation to 2% in a timely way as high energy prices could reverse some of the progress we have seen on inflation in recent months."
T-note yields remained higher after the Sep ISM manufacturing index rose more than expected. Strength in mega-cap technology stocks is keeping the Nasdaq 100 in positive territory.
Stock index futures initially moved higher in overnight trading after U.S. lawmakers late Saturday night reached a deal to avoid a government shutdown, sparking a relief rally in stock index futures.
Adding to positive sentiment is better-than-expected Chinese economic news that supports global growth after China Sep manufacturing and Sep non-manufacturing activity expanded more than expected.
Goldman Sachs today said mega-cap U.S. tech stocks are likely to do well during the Q3 earnings season after a recent selloff led to lower valuations and "The divergence between falling valuations and improving fundamentals represents an opportunity for investors."
The U.S. Sep ISM manufacturing index rose +1.4 to 49.0, stronger than expectations of 47.9.
U.S. Aug construction spending rose +0.5% m/m, right on expectations.
The markets are discounting a 33% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting that ends on November 1, and a 51% chance for that +25 bp rate hike at the following meeting that ends on December 13. The markets are then expecting the FOMC to begin cutting rates in the second half of 2024 in response to an expected slowdown in the U.S. economy.
U.S. and European bond yields today are moving higher. The 10-year T-note yield is up +10.5 bp at 4.677%. The 10-year German bund yield is up +7.7 bp at 2.915%. The 10-year UK gilt yield rose to a 1-1/4 month high of 4.568% and is up +11.5 bp at 4.552%.
The China Sep manufacturing PMI rose +0.5 to a 6-month high of 50.2, stronger than expectations of 50.1. Also, the Sep non-manufacturing PMI rose +0.7 to 51.7, stronger than expectations of 51.6.
Overseas stock markets are lower. The Euro Stoxx 50 is down -1.27%. China’s Shanghai Composite Index was closed for the Golden Week holidays. Japan’s Nikkei 225 today closed -0.31%.
Today’s stock movers…
Strength in mega-cap technology stocks is supportive of the overall market. Alphabet (GOOGL) is up more than +2%. Also, Apple (AAPL), Metal Platforms (META), Amazon.com (AMZN), and Microsoft (MSFT) are up more than +1%.
Discover Financial Services (DFS) climbed more than +3% in pre-market trading after agreeing to improve its consumer compliance management system and enhance related corporate governance and enterprise risk management practices as part of a consent order issued by the FDIC.
Viatris (VTRS) is up more than +4% after it said it received an offer of $2.17 billion for its over-the-counter health business from Cooper Consumer Health, a company owned by CVC Capital Partners.
Zscaler (ZS) is up more than +3% to lead gainers in the Nasdaq 100 after Piper Sandler upgraded the stock to overweight from neutral with a price target of $190.
Nvidia (NVDA) is up more than +2% after Goldman Sachs added the stock to its Conviction List, saying it sees strong long-term growth prospects for the company.
Xylem (XYL) is up more than +1% after Melius Research upgraded the stock to buy from hold with a price target of $122.
Macerich (MAC) is up more than +1% after Piper Sandler upgraded the stock to neutral from underweight.
Utility stocks are under pressure today from higher T-note yields. As a result, American Electric Power (AEP), CenterPoint Energy (CNP), Eversource Energy (ES), Exelon Corp (EXC), FirstEnergy (FE), and PPL Corp (PPL) are down more than -2%.
Norfolk Southern (NSC) is down more than -3% after Bank of America Global Research downgraded the stock to neutral from buy.
Target (TGT) is down more than -2% after Bank of America Global Research cut its price target on the stock to $120 from $135.
Fidelity National Financial (FNF) is down more than -2% after Keefe, Bruyette & Woods downgraded the stock to market perform from outperform.
Tesla (TSLA) is down nearly -1% after reporting Q3 vehicle deliveries of 435,059, below the consensus of 456,722.
United Parcel Service (UPS) is down more than -1% after Susquehanna Financial cut its price target on the stock to $160 from $173.
Toast (TOST) is down more than -1% after Mizuho Securities downgraded the stock to neutral from buy.
Across the markets…
December 10-year T-notes (ZNZ23) today are down -23 ticks, and the 10-year T-note yield is up +10.5 bp at 4.677%. Dec T-notes today are under pressure after U.S. lawmakers late Saturday night passed legislation to avert a government shutdown, which reduced the safe-haven demand for T-notes. Losses in T-notes accelerated on this morning’s stronger-than-expected Sep ISM manufacturing index and hawkish comments from Fed Governor Bowman, who said she expects additional Fed rate hikes.
The dollar index (DXY00) today is up by +0.54% at a 10-month high. The dollar index today is climbing on support from higher T-note yields. Also, weakness in the yen is supportive for the dollar after the BOJ announced additional bond purchases, which knocked the yen down to an 11-1/4 month low against the dollar. The dollar extended its gains after the U.S. Sep ISM manufacturing index rose more than expected, a hawkish factor for Fed policy.
EUR/USD (^EURUSD) today is down by -0.59%. A stronger dollar today has sparked long liquidation pressure in the euro. The downside for EUR/US is limited after ECB Vice President Guindos said talk of rate cuts by the ECB is premature.
The Eurozone Aug unemployment rate fell -0.1 to match the record low of 6.4%, right on expectations.
ECB Vice President Guindos said interest rates at their current levels will help bring down inflation to the ECB's 2% target, and talk of rate cuts by the ECB is premature.
USD/JPY (^USDJPY) is up by +0.31%. The yen today tumbled to an 11-1/4 month low against the dollar. Higher T-note yields today are bearish for the yen. Also, today’s action by the BOJ to announce an extra bond-buying plan of five- to 10-year bonds for this week undercut the yen. Losses in the yen were contained after the Japan Q3 Tankan large manufacturing business conditions rose more than expected and after the 10-year JGB bond yield rose to a 10-year high of 0.783%, strengthening the yen’s interest rate differentials.
The Japan Q3 Tankan large manufacturing business conditions rose +4 to 9, stronger than expectations of 6.
The Japan Sep Jibun Bank manufacturing PMI was revised downward by -0.1 to 48.5 from the initially reported 48.6, the steepest pace of contraction in 7 months.
December gold (GCZ3) today is down -20.4 (-1.09%), and Dec silver (SIZ23) is down -0.900 (-4.01%). Precious metals prices this morning are sharply lower, with gold sinking to a 6-3/4 month low and silver dropping to a 6-1/2 month low. Today’s jump in the dollar index to a 10-month high is undercutting metals prices. Also, higher global bond yields are bearish for precious metals. In addition, hawkish central bank comments were bearish for precious metals after ECB Vice President Guindos said any talks of rate cuts by the ECB are premature. Finally, long liquidation pressures are weighing on gold after long gold holdings in ETFs fell to a 3-1/2 year low last Friday.
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On the date of publication, Rich Asplund 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. | Also, Apple (AAPL), Metal Platforms (META), Amazon.com (AMZN), and Microsoft (MSFT) are up more than +1%. Zscaler (ZS) is up more than +3% to lead gainers in the Nasdaq 100 after Piper Sandler upgraded the stock to overweight from neutral with a price target of $190. Nvidia (NVDA) is up more than +2% after Goldman Sachs added the stock to its Conviction List, saying it sees strong long-term growth prospects for the company. | Also, Apple (AAPL), Metal Platforms (META), Amazon.com (AMZN), and Microsoft (MSFT) are up more than +1%. Stock index futures initially moved higher in overnight trading after U.S. lawmakers late Saturday night reached a deal to avoid a government shutdown, sparking a relief rally in stock index futures. Losses in T-notes accelerated on this morning’s stronger-than-expected Sep ISM manufacturing index and hawkish comments from Fed Governor Bowman, who said she expects additional Fed rate hikes. | Also, Apple (AAPL), Metal Platforms (META), Amazon.com (AMZN), and Microsoft (MSFT) are up more than +1%. Hawkish comments from Fed Governor Bowman pushed bond yields higher today when she said, "I continue to expect that further interest rate increases will likely be needed to return inflation to 2% in a timely way as high energy prices could reverse some of the progress we have seen on inflation in recent months." Losses in the yen were contained after the Japan Q3 Tankan large manufacturing business conditions rose more than expected and after the 10-year JGB bond yield rose to a 10-year high of 0.783%, strengthening the yen’s interest rate differentials. | Also, Apple (AAPL), Metal Platforms (META), Amazon.com (AMZN), and Microsoft (MSFT) are up more than +1%. T-note yields remained higher after the Sep ISM manufacturing index rose more than expected. Today’s stock movers… Strength in mega-cap technology stocks is supportive of the overall market. |
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13347.0 | 2023-10-01 00:00:00 UTC | Wall St Week Ahead-US stock market’s powerhouses tested by soaring bond yields | AAPL | https://www.nasdaq.com/articles/wall-st-week-ahead-us-stock-markets-powerhouses-tested-by-soaring-bond-yields-0 | By Lewis Krauskopf and Saqib Iqbal Ahmed
NEW YORK, Sept 29 (Reuters) - Surging bond yields are rattling U.S. stocks, and some investors worry the richly valued shares of giant technology and growth companies may be another weak spot.
Seven megacap stocks -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O -- have led broader markets higher this year. As of Tuesday, these stocks accounted for more than 80% of the S&P 500's total return for 2023.
Investors see many of the stocks as major beneficiaries of advances in artificial intelligence. Earlier this year, megacaps' strong balance sheets and business models also attracted those looking for a safe haven when regional banking turmoil shook the financial system.
Their rising stock prices ballooned valuations, however, and some investors say the megacaps could be vulnerable if climbing bond yields keep pressuring stocks. The so-called Magnificent Seven stocks trade at an average price-to-earnings ratio of 31.8 based on earnings estimates for the next 12 months, according to LSEG Datastream. That far surpasses the S&P 500's ratio of 18.1.
With a collective weighting of 27% in the S&P 500, weakness in the megacaps could further deflate the broader index, now down 6.6% from its July highs, investors said. Year-to-date, the S&P 500 is up over 11%.
"When the big tech stocks start going down ... the indexes go down," said Matt Maley, chief market strategist at Miller Tabak. "Then people get nervous and sell their mutual funds or their ETFs, and ... the whole thing snowballs.”
The recent stock selloff has already dented some megacaps, with Apple -- the largest company by market value -- dropping about 13% since late July. High-flier Nvidia fell nearly 12% in September. Apple remains up 32% for the year, with Nvidia up nearly 200%.
PRESSURE FROM YIELDS
Higher yields on Treasuries - which are sensitive to rate expectations and seen as risk free - offer more investment competition to stocks while raising the cost of borrowing for corporations and households.
Shares of tech and growth companies, which often have significant expected profit growth in the years ahead, tend to be hit particularly hard when yields rise because their future projected earnings are discounted more severely.
“Because (the megacaps) are more highly valued, that just means that they are going to be more sensitive to changes in real interest rates,” said Matt Stucky, senior portfolio manager at Northwestern Mutual Wealth Management Co.
Options markets show elevated concern among investors. Thirty-day implied volatility for the Nasdaq-100-tracking Invesco QQQ ETF QQQ.O - a measure of how much traders expect the shares to gyrate in the near term - recently climbed to 22, the highest since mid-April, according to options analytics service Trade Alert.
Still, strategists point out that the rise in implied volatility for tech stocks is no more than for the broader market. That sense of complacency makes tech stocks vulnerable to increased volatility should market declines accelerate from here, said Chris Murphy, Susquehanna Financial Group co-head of derivative strategy.
To be sure, some megacap stocks have held up relatively well in the S&P 500's latest slide, including Alphabet, whose shares are down only slightly since late July.
The Nasdaq 100 .NDX, a proxy for a broader swath of big tech and growth stocks, has fallen roughly in line with the S&P 500 since late July and remains up some 35% this year. It is down 7% from its highs.
Investors also see other risks for megacap stocks.
A U.S. antitrust lawsuit filed this week against Amazon created a “new line of worry in the megacap space,” said Rick Meckler, partner at Cherry Lane Investments in New Jersey.
And while optimism about increased use of AI applications has helped tech stocks this year, there is some question about the ultimate boost to profits, said J. Bryant Evans, portfolio manager at Cozad Asset Management.
"The whole promise of AI hasn’t... reached fruition yet,” Evans said.
(Reporting by Lewis Krauskopf; additional reporting by Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and David Gregorio)
(([email protected]; 646-223-6082; Reuters Messaging: [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. | Seven megacap stocks -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O -- have led broader markets higher this year. By Lewis Krauskopf and Saqib Iqbal Ahmed NEW YORK, Sept 29 (Reuters) - Surging bond yields are rattling U.S. stocks, and some investors worry the richly valued shares of giant technology and growth companies may be another weak spot. "Then people get nervous and sell their mutual funds or their ETFs, and ... the whole thing snowballs.” The recent stock selloff has already dented some megacaps, with Apple -- the largest company by market value -- dropping about 13% since late July. | Seven megacap stocks -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O -- have led broader markets higher this year. By Lewis Krauskopf and Saqib Iqbal Ahmed NEW YORK, Sept 29 (Reuters) - Surging bond yields are rattling U.S. stocks, and some investors worry the richly valued shares of giant technology and growth companies may be another weak spot. (Reporting by Lewis Krauskopf; additional reporting by Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and David Gregorio) (([email protected]; 646-223-6082; Reuters Messaging: [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. | Seven megacap stocks -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O -- have led broader markets higher this year. By Lewis Krauskopf and Saqib Iqbal Ahmed NEW YORK, Sept 29 (Reuters) - Surging bond yields are rattling U.S. stocks, and some investors worry the richly valued shares of giant technology and growth companies may be another weak spot. Their rising stock prices ballooned valuations, however, and some investors say the megacaps could be vulnerable if climbing bond yields keep pressuring stocks. | Seven megacap stocks -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O -- have led broader markets higher this year. Still, strategists point out that the rise in implied volatility for tech stocks is no more than for the broader market. The Nasdaq 100 .NDX, a proxy for a broader swath of big tech and growth stocks, has fallen roughly in line with the S&P 500 since late July and remains up some 35% this year. |
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13354.0 | 2023-09-30 00:00:00 UTC | Apple Has an iPhone Problem | AAPL | https://www.nasdaq.com/articles/apple-has-an-iphone-problem | The iPhone has been the product that's driven Apple (NASDAQ: AAPL) for 15 years, but it's now such a good product that new models are only slight upgrades from previous versions. Combine that with prices that make the iPhone extremely expensive, and you face a challenge growing a company the size of Apple.
In this video, Travis Hoium covers the iPhone's slowing growth rate and why services and accessories are now the real growth drivers of Apple's business.
*Stock prices used were end-of-day prices of Sept. 26, 2023. The video was published on Sept. 27, 2023.
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Travis Hoium has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy. Travis Hoium 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. | The iPhone has been the product that's driven Apple (NASDAQ: AAPL) for 15 years, but it's now such a good product that new models are only slight upgrades from previous versions. Combine that with prices that make the iPhone extremely expensive, and you face a challenge growing a company the size of Apple. Find out why Apple is one of the 10 best stocks to buy now Our analyst team has spent more than a decade beating the market. | The iPhone has been the product that's driven Apple (NASDAQ: AAPL) for 15 years, but it's now such a good product that new models are only slight upgrades from previous versions. In this video, Travis Hoium covers the iPhone's slowing growth rate and why services and accessories are now the real growth drivers of Apple's business. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | The iPhone has been the product that's driven Apple (NASDAQ: AAPL) for 15 years, but it's now such a good product that new models are only slight upgrades from previous versions. In this video, Travis Hoium covers the iPhone's slowing growth rate and why services and accessories are now the real growth drivers of Apple's business. *Stock Advisor returns as of September 25, 2023 Travis Hoium has positions in Apple. | The iPhone has been the product that's driven Apple (NASDAQ: AAPL) for 15 years, but it's now such a good product that new models are only slight upgrades from previous versions. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. |
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13368.0 | 2023-09-29 00:00:00 UTC | Hopes rise for IPO recovery after September deal rush | AAPL | https://www.nasdaq.com/articles/hopes-rise-for-ipo-recovery-after-september-deal-rush | By Echo Wang and Pablo Mayo Cerqueiro
NEW YORK/LONDON, Sept 29 (Reuters) - Bankers and investors are embracing a degree of optimism for the IPO market following a slew of major market debuts in September that made for one of the busiest months since the start of 2022.
So far this year there have been $423 billion worth of equity capital markets transactions, a 5% increase from the same period last year, according to Dealogic data, though this total remains a far cry from the record levels of 2021.
The performance of a spate of high-profile IPOs is being closely watched as an indicator of investors' appetite for new issues.
In the last four weeks, at least 25 companies in the United States and Europe have joined the stock market, raising hopes that a recovery may be in sight after a lengthy drought in fresh listings.
"We're definitely seeing a bit of a soft open in the IPO market", said Lizzie Reed, global head of the ECM syndicate desk at Goldman Sachs. "The last cohort of IPOs ... provided a case study for issuers who might be contemplating markets access."
British chip designer Arm Holdings ARM.O, marketing automation firm Klaviyo KVYO.N and grocery delivery app Instacart CART.O raised more than $6 billion combined in their September debuts in New York, accounting for over a fifth of total proceeds raised by IPOs in the U.S. and Europe this year.
All three companies priced their IPOs at the top end, or above, their indicated price range, highlighting support from investors.
But while shares rallied on their first day of trading, they have since retreated. Arm and Instacart shares briefly fell below their issue price, suggesting there is still some way before the IPO market fully recovers.
REBUILD MODE
"We're still in a rebuild mode for the market more than an absolute bull market," said Robert Stowe, head of Americas ECM at Barclays. "But we are starting to see more engagement (in IPOs) from both sides."
Bankers are not expecting a deluge of deals to rush to market as a result of the recent issues.
"It's encouraging to see deals being priced, but it will continue to be a gradual re-opening of the market rather than the floodgates opening," said Suneel Hargunani, co-head of ECM at Citigroup for Europe, the Middle East and Africa (EMEA).
In the last month, technology has been the dominant sector for new issues in the U.S., but the full quarter has offered a more varied IPO class.
Medical glass producer Schott Pharma 1SXP.F debuted on the Frankfurt Stock Exchange on Thursday, with shares closing 16% above the IPO price. In July, German hydrogen firm ThyssenKrupp Nucera NCH2.DE and Romanian energy producer Hidrolectrica went public in their home countries.
IPO candidates on both sides of the Atlantic share a common characteristic - they are either already profitable or show a clear path to profitability.
Arm, Instacart and Klaviyo were all profitable at the time of their listings. Klaviyo's shares are now trading at a 21% premium to their IPO price.
"The success of (the) Klaviyo (IPO) is a strong affirmation of profitable growth being a path towards a rewarding valuation by the public markets," said Ross Devor, partner at Thoma Bravo, a software-focused private equity firm.
“Most of the companies in the pipeline, if they're not profitable, they have a definitive path to profitability.” said Samir A. Gandhi, a capital markets lawyer at Sidley Austin.
STABLE OWNERSHIP
Notably, some of this year's most emblematic IPOs have attracted cornerstone investors as a way to reduce risk and ensure stable ownership.
"For companies that are market leaders in their sector and have a long-term thematic element, we find that investors are more likely to consider a cornerstone investment," said Stephane Gruffat, co-head of ECM in EMEA at Deutsche Bank.
That was the case of Arm, a leader in chip technology, which saw an array of clients including Nvidia and Apple snap up shares, and Schott Pharma, which attracted the Qatar Investment Authority, as it pushes into the growing market for injectable drugs.
A narrowing gap between buyers' and sellers' views in valuation has also paved the way for more IPOs to come to market.
Instacart agreed to sell shares to investors at a $9.9 billion valuation in its IPO, a fraction of the $39 billion it fetched in a private fundraising round in March 2021 amid a pandemic-induced boom for online grocery deliveries.
For its part, SoftBank bought the 25% it did not already own in Arm at a $64 billion valuation in August to then sell shares at a lower price a month later.
"For the IPO market to open more broadly in the first quarter in 2024 ... we need the 2023 IPO cohort to continue to perform well," said Josh Weismer, head of U.S. ECM, Mizuho Americas. "And the market needs a bit more clarity from the Fed."
Year-to-Date Global ECM Volumes: 2018-2023 https://tmsnrt.rs/48zw1GD
(Reporting by Echo Wang in New York and Pablo Mayo Cerqueiro in London; Editing by Anousha Sakoui and David Holmes)
(([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. | "It's encouraging to see deals being priced, but it will continue to be a gradual re-opening of the market rather than the floodgates opening," said Suneel Hargunani, co-head of ECM at Citigroup for Europe, the Middle East and Africa (EMEA). "The success of (the) Klaviyo (IPO) is a strong affirmation of profitable growth being a path towards a rewarding valuation by the public markets," said Ross Devor, partner at Thoma Bravo, a software-focused private equity firm. That was the case of Arm, a leader in chip technology, which saw an array of clients including Nvidia and Apple snap up shares, and Schott Pharma, which attracted the Qatar Investment Authority, as it pushes into the growing market for injectable drugs. | By Echo Wang and Pablo Mayo Cerqueiro NEW YORK/LONDON, Sept 29 (Reuters) - Bankers and investors are embracing a degree of optimism for the IPO market following a slew of major market debuts in September that made for one of the busiest months since the start of 2022. British chip designer Arm Holdings ARM.O, marketing automation firm Klaviyo KVYO.N and grocery delivery app Instacart CART.O raised more than $6 billion combined in their September debuts in New York, accounting for over a fifth of total proceeds raised by IPOs in the U.S. and Europe this year. Year-to-Date Global ECM Volumes: 2018-2023 https://tmsnrt.rs/48zw1GD (Reporting by Echo Wang in New York and Pablo Mayo Cerqueiro in London; Editing by Anousha Sakoui and David Holmes) (([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 Echo Wang and Pablo Mayo Cerqueiro NEW YORK/LONDON, Sept 29 (Reuters) - Bankers and investors are embracing a degree of optimism for the IPO market following a slew of major market debuts in September that made for one of the busiest months since the start of 2022. British chip designer Arm Holdings ARM.O, marketing automation firm Klaviyo KVYO.N and grocery delivery app Instacart CART.O raised more than $6 billion combined in their September debuts in New York, accounting for over a fifth of total proceeds raised by IPOs in the U.S. and Europe this year. "For the IPO market to open more broadly in the first quarter in 2024 ... we need the 2023 IPO cohort to continue to perform well," said Josh Weismer, head of U.S. ECM, Mizuho Americas. | Arm, Instacart and Klaviyo were all profitable at the time of their listings. Klaviyo's shares are now trading at a 21% premium to their IPO price. "For the IPO market to open more broadly in the first quarter in 2024 ... we need the 2023 IPO cohort to continue to perform well," said Josh Weismer, head of U.S. ECM, Mizuho Americas. |
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13397.0 | 2023-09-28 00:00:00 UTC | Case Builds for Tech Dividends | AAPL | https://www.nasdaq.com/articles/case-builds-for-tech-dividends | It’s not a stretch to say a generation, perhaps two, of investors are hardwired to believe technology isn’t the sector dividends investors should embrace. However, that scenario has markedly improved in recent years.
Indeed, exchange traded funds such as the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM) sport tiny dividend yields. Yet that belies impressive dividend growth among tech stocks (nearly half of those ETFs’ rosters). In dollar terms, technology is now the largest dividend-paying sector in the S&P 500.
That’s good news for QQQ and QQQM investors. The “cohort of companies that make a long-term decision to pay an annually recurring dividend [is what would lead] to longer-term appreciation, inclusion in large cap indexes (survivorship bias), and lower volatility during market downturns,” said Morgan Stanley in its newly released 2023 Dividend Playbook.
More Reasons to Consider QQQ, QQQM Dividends Potency
In the 2023 Dividend Playbook, Morgan Stanley examined the impact of dividend payers on the various GICS sectors. The bank noted dividends, broadly speaking are “detrimental” to the consumer discretionary sector – the third-largest sector weight in QQQ and QQQM. It also noted that tech dividend payers outperformed rivals that don’t have payouts.
The notion that tech dividend payers outperform their rivals that don’t pay dividends is solidified by Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). Those two tech giants have rapidly grown payouts in recent years. That’s good news for QQQ and QQQM investors because those stocks combine for more than 20% of the ETFs’ rosters.
Still, only half, including Apple and Microsoft, of the top 10 holdings in the Invesco ETFs are dividend payers. Some market observers believe other companies should get in on the act. In a recent article, Al Root of Barron’s argues that Amazon (NASDAQ: AMZN), Google parent Alphabet (NASDAQ: GOOG), and Facebook parent Meta Platforms (NASDAQ: META) are overdue to become dividend payers.
“Going by Apple and Microsoft, somewhere between 10 and 15 years after an IPO seems like a good idea. By that standard, the tech giants are lagging. Amazon went public in 1997, some 26 years ago. Alphabet went public in 2004, about 19 years ago. Meta, the relative newbie, went public in 2012, 11 years ago. It’s about time they started paying dividends,” wrote Root.
That trio of stocks, which have the free cash flow to support dividends, combine for more than 15% of the QQQ and QQQM lineups.
For more news, information, and analysis, visit the ETF Education Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The notion that tech dividend payers outperform their rivals that don’t pay dividends is solidified by Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). The “cohort of companies that make a long-term decision to pay an annually recurring dividend [is what would lead] to longer-term appreciation, inclusion in large cap indexes (survivorship bias), and lower volatility during market downturns,” said Morgan Stanley in its newly released 2023 Dividend Playbook. Still, only half, including Apple and Microsoft, of the top 10 holdings in the Invesco ETFs are dividend payers. | The notion that tech dividend payers outperform their rivals that don’t pay dividends is solidified by Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). It also noted that tech dividend payers outperformed rivals that don’t have payouts. In a recent article, Al Root of Barron’s argues that Amazon (NASDAQ: AMZN), Google parent Alphabet (NASDAQ: GOOG), and Facebook parent Meta Platforms (NASDAQ: META) are overdue to become dividend payers. | The notion that tech dividend payers outperform their rivals that don’t pay dividends is solidified by Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). More Reasons to Consider QQQ, QQQM Dividends Potency In the 2023 Dividend Playbook, Morgan Stanley examined the impact of dividend payers on the various GICS sectors. In a recent article, Al Root of Barron’s argues that Amazon (NASDAQ: AMZN), Google parent Alphabet (NASDAQ: GOOG), and Facebook parent Meta Platforms (NASDAQ: META) are overdue to become dividend payers. | The notion that tech dividend payers outperform their rivals that don’t pay dividends is solidified by Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). That’s good news for QQQ and QQQM investors. That’s good news for QQQ and QQQM investors because those stocks combine for more than 20% of the ETFs’ rosters. |
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13413.0 | 2023-09-27 00:00:00 UTC | Apple (AAPL) Stock Sinks As Market Gains: What You Should Know | AAPL | https://www.nasdaq.com/articles/apple-aapl-stock-sinks-as-market-gains%3A-what-you-should-know-6 | Apple (AAPL) closed at $170.43 in the latest trading session, marking a -0.89% move from the prior day. This change lagged the S&P 500's daily gain of 0.02%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, added 0.22%.
Heading into today, shares of the maker of iPhones, iPads and other products had lost 6.6% over the past month, lagging the Computer and Technology sector's loss of 3.18% and the S&P 500's loss of 2.86% in that time.
Wall Street will be looking for positivity from Apple as it approaches its next earnings report date. On that day, Apple is projected to report earnings of $1.39 per share, which would represent year-over-year growth of 7.75%. Meanwhile, our latest consensus estimate is calling for revenue of $88.87 billion, down 1.42% from the prior-year quarter.
AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.05 per share and revenue of $382.66 billion. These results would represent year-over-year changes of -0.98% and -2.96%, respectively.
Investors might also notice recent changes to analyst estimates for Apple. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. Apple is currently a Zacks Rank #3 (Hold).
In terms of valuation, Apple is currently trading at a Forward P/E ratio of 28.44. Its industry sports an average Forward P/E of 11.22, so we one might conclude that Apple is trading at a premium comparatively.
Investors should also note that AAPL has a PEG ratio of 2.51 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AAPL's industry had an average PEG ratio of 2.51 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) closed at $170.43 in the latest trading session, marking a -0.89% move from the prior day. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.05 per share and revenue of $382.66 billion. Investors should also note that AAPL has a PEG ratio of 2.51 right now. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple (AAPL) closed at $170.43 in the latest trading session, marking a -0.89% move from the prior day. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.05 per share and revenue of $382.66 billion. | AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.05 per share and revenue of $382.66 billion. Apple (AAPL) closed at $170.43 in the latest trading session, marking a -0.89% move from the prior day. Investors should also note that AAPL has a PEG ratio of 2.51 right now. | Apple (AAPL) closed at $170.43 in the latest trading session, marking a -0.89% move from the prior day. AAPL's full-year Zacks Consensus Estimates are calling for earnings of $6.05 per share and revenue of $382.66 billion. Investors should also note that AAPL has a PEG ratio of 2.51 right now. |
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13460.0 | 2023-09-26 00:00:00 UTC | French authorities received a software update for Apple's iPhone 12 - ministry source | AAPL | https://www.nasdaq.com/articles/french-authorities-received-a-software-update-for-apples-iphone-12-ministry-source-0 | By Elizabeth Pineau
PARIS, Sept 26 (Reuters) - French authorities have received a software update from Apple AAPL.O for its iPhone 12 and are reviewing it, a source at the French digital ministry told Reuters on Tuesday.
The U.S. tech company had pledged to update the software to defuse a row over radiation levels. It had until Wednesday to do so after France suspended sales of iPhone 12 handsets following tests it said found breaches of radiation exposure limits.
Apple contested the findings, saying the iPhone 12 was certified by multiple international bodies as compliant with global standards, but said on Sept.15 it would issue a software update to accommodate the testing methods used in France.
Researchers have conducted a vast number of studies over the last two decades to assess the health risks of mobile phones. According to the World Health Organisation, no adverse health effects have been established as being caused by them.
But the radiation warning in France, based on results of tests that differ from those carried out in other countries, has prompted concerns across Europe and other countries, including Belgium, which asked to benefit from the software upgrade too.
Industry experts said there were no safety risks as regulatory limits, based on the risk of burns or heatstroke from the phone's radiation, were set well below levels where scientists have found evidence of harm.
Apple launched the iPhone 15 earlier this month and the iPhone 12 is not available to buy from Apple directly. It can, however, be bought from third parties that have inventory, or trade old phones.
A bigger issue would have been a potential recall, which France had threatened if Apple had refused to do a software update.
(Reporting by Elizabeth Pineau; Writing by Benoit Van Overstraeten and Ingrid Melander; Editing by Sharon Singleton)
(([email protected]; +33149495339;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Elizabeth Pineau PARIS, Sept 26 (Reuters) - French authorities have received a software update from Apple AAPL.O for its iPhone 12 and are reviewing it, a source at the French digital ministry told Reuters on Tuesday. It had until Wednesday to do so after France suspended sales of iPhone 12 handsets following tests it said found breaches of radiation exposure limits. Apple contested the findings, saying the iPhone 12 was certified by multiple international bodies as compliant with global standards, but said on Sept.15 it would issue a software update to accommodate the testing methods used in France. | By Elizabeth Pineau PARIS, Sept 26 (Reuters) - French authorities have received a software update from Apple AAPL.O for its iPhone 12 and are reviewing it, a source at the French digital ministry told Reuters on Tuesday. It had until Wednesday to do so after France suspended sales of iPhone 12 handsets following tests it said found breaches of radiation exposure limits. Apple contested the findings, saying the iPhone 12 was certified by multiple international bodies as compliant with global standards, but said on Sept.15 it would issue a software update to accommodate the testing methods used in France. | By Elizabeth Pineau PARIS, Sept 26 (Reuters) - French authorities have received a software update from Apple AAPL.O for its iPhone 12 and are reviewing it, a source at the French digital ministry told Reuters on Tuesday. Apple contested the findings, saying the iPhone 12 was certified by multiple international bodies as compliant with global standards, but said on Sept.15 it would issue a software update to accommodate the testing methods used in France. Industry experts said there were no safety risks as regulatory limits, based on the risk of burns or heatstroke from the phone's radiation, were set well below levels where scientists have found evidence of harm. | By Elizabeth Pineau PARIS, Sept 26 (Reuters) - French authorities have received a software update from Apple AAPL.O for its iPhone 12 and are reviewing it, a source at the French digital ministry told Reuters on Tuesday. Apple contested the findings, saying the iPhone 12 was certified by multiple international bodies as compliant with global standards, but said on Sept.15 it would issue a software update to accommodate the testing methods used in France. Researchers have conducted a vast number of studies over the last two decades to assess the health risks of mobile phones. |
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13466.0 | 2023-09-25 00:00:00 UTC | 3 Stocks Under $2 That Could Rally More Than 90%, According to Wall Street | AAPL | https://www.nasdaq.com/articles/3-stocks-under-%242-that-could-rally-more-than-90-according-to-wall-street | Cheap or lower-priced stocks have the potential to deliver exponential gains to shareholders over time. Typically, stocks priced below $5 are referred to as “penny stocks,” which might make investors wary of buying into these companies. However, mega-cap tech giants like Apple (AAPL) and Amazon (AMZN) were once penny stocks, too, and ultimately helped early shareholders build generational wealth over time.
While there are always risks associated with investing in equities, no matter how low-priced, here's a spotlight on three stocks under $2 that could be poised to deliver money-doubling returns over the long term, according to Wall Street.
Pagaya Technologies
Valued at a market cap of $1.15 billion, Pagaya Technologies (PGY) is a fintech company that develops and implements artificial intelligence (AI)-powered software solutions for enterprises. Its proprietary portfolio of products is used by banks, auto finance providers, real estate service providers, and other lending companies to assist them in the loan origination process.
PGY is currently priced at $1.62, and shares are trading about 95% below their all-time highs.
www.barchart.com
The company ended Q2 of 2023 with a network volume of $1.96 billion - which was higher than its earlier guidance, primarily driven by growth in the personal loan segment and new partners in verticals such as auto and point-of-sale.
Sales grew by 8% year-over-year to $195.6 million in Q2, and Pagaya is on track to end 2023 with revenue of $799 million. While still unprofitable, the loss per share is expected to narrow substantially from $0.69 in 2022 to $0.03 in 2024.
Pagaya raised $3.1 billion across seven asset-backed securitizations in the first two quarters of 2023, and was recognized as the number one player in this segment in the U.S. in terms of issuance size.
Out of the six analysts tracking PGY, four recommend “ strong buy,” and two recommend “hold.” Wall Street has an average price target of $3.43, which is 111% above current trading prices.
www.barchart.com
Ginkgo Bioworks
Ginkgo Bioworks (DNA) is engaged in the cell programming segment. Its platform is used to program cells that enable the biological production of novel therapeutics, petroleum-derived chemicals, and food ingredients.
The company leverages its genetic engineering capabilities to produce microorganisms that are used in different industrial applications, and Ginkgo serves multiple end markets, ranging from specialty chemicals, agriculture, consumer products, and pharmaceuticals. Widening demand for foundry services has allowed Gingko to end Q2 with 63 active customers, up from 36 in the year-ago quarter.
Priced at $1.75 per share, Gingko is valued at a market cap of $3.71 billion.
Out of the eight analysts covering DNA, three recommend “strong buy,” one recommends “moderate buy,” two recommend “hold,” one recommends “moderate sell,” and one has a “strong sell” recommendation. The average analyst price target is $3.38, indicating upside potential of 93%.
www.barchart.com
Canoo
The final stock on my list is Canoo (GOEV), a mobility technology company. It designs, engineers, and manufactures electric vehicles (EVs) that include multi-purpose delivery vehicles and pickups.
Canoo has famously struggled to generate revenue, let alone profits - but is forecast to end 2024 with revenue of $625 million.
The EV segment is growing rapidly, but is also attracting competition from new and legacy auto manufacturers. Moreover, the auto segment is capital intensive, which suggests Canoo will have to keep raising capital to sustain its cash burn rate before it turns profitable and benefits from economies of scale. As a result, the small automaker has been floated as a potential takeover target, with Apple (AAPL) repeatedly emerging as a rumored suitor.
Canoo ended Q2 with $5 million in cash, and expects to invest between $70 million and $100 million in capital expenditures. In August, it raised $56.2 million via a convertible stock offering, diluting existing shareholder wealth.
Out of the four analysts tracking GOEV, three recommend “strong buy,” and one recommends “hold.” The average price target for Canoo stock is $3.11, which is a 623% premium to the stock's current price.
www.barchart.com
On the date of publication, Aditya Raghunath 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. | However, mega-cap tech giants like Apple (AAPL) and Amazon (AMZN) were once penny stocks, too, and ultimately helped early shareholders build generational wealth over time. As a result, the small automaker has been floated as a potential takeover target, with Apple (AAPL) repeatedly emerging as a rumored suitor. www.barchart.com The company ended Q2 of 2023 with a network volume of $1.96 billion - which was higher than its earlier guidance, primarily driven by growth in the personal loan segment and new partners in verticals such as auto and point-of-sale. | However, mega-cap tech giants like Apple (AAPL) and Amazon (AMZN) were once penny stocks, too, and ultimately helped early shareholders build generational wealth over time. As a result, the small automaker has been floated as a potential takeover target, with Apple (AAPL) repeatedly emerging as a rumored suitor. Out of the six analysts tracking PGY, four recommend “ strong buy,” and two recommend “hold.” Wall Street has an average price target of $3.43, which is 111% above current trading prices. | However, mega-cap tech giants like Apple (AAPL) and Amazon (AMZN) were once penny stocks, too, and ultimately helped early shareholders build generational wealth over time. As a result, the small automaker has been floated as a potential takeover target, with Apple (AAPL) repeatedly emerging as a rumored suitor. Out of the six analysts tracking PGY, four recommend “ strong buy,” and two recommend “hold.” Wall Street has an average price target of $3.43, which is 111% above current trading prices. | However, mega-cap tech giants like Apple (AAPL) and Amazon (AMZN) were once penny stocks, too, and ultimately helped early shareholders build generational wealth over time. As a result, the small automaker has been floated as a potential takeover target, with Apple (AAPL) repeatedly emerging as a rumored suitor. Out of the six analysts tracking PGY, four recommend “ strong buy,” and two recommend “hold.” Wall Street has an average price target of $3.43, which is 111% above current trading prices. |
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13486.0 | 2023-09-24 00:00:00 UTC | 3 Chip Stocks Crushing the Market With More Room to Run | AAPL | https://www.nasdaq.com/articles/3-chip-stocks-crushing-the-market-with-more-room-to-run | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The semiconductor field evolves rapidly, requiring yearly product upgrades. It’s a complex, costly and vital industry, particularly in the AI and Web 3.0 era, offering growth and security opportunities for top-performing companies. Accordingly, the top chip stocks to buy now continue to outperform, as barriers to entry amplify these market share advantages.
In this article, I will discuss three of the chip stocks to buy now that are crushing the market and still have plenty of room to run.
Nvidia (NVDA)
Source: Poetra.RH / Shutterstock.com
Nvidia (NASDAQ:NVDA) plays a vital role in the AI-driven computing shift, leveraging GPUs for accelerated computing. This has driven rapid revenue growth and a 190% year-to-date stock price increase.
Nvidia, once famous for its GPUs, now leads digital innovation in multiple sectors. The company has posted impressive financial results with quarterly sales hitting $13.5 billion, a remarkable 101.5% annual growth rate. Nvidia’s IV spectrum shows complexity: lower end activity for protection, surges from $500 to $980 signal optimism. Additionally, a number of large trades for high-upside call bets have been placed by institutional giants. Analysts are bullish, with an average target of $636.32 (45% upside). A bolder view targets $1,100 (150.57% potential gain), for those who believe these smart money investors are right.
Notably, Nvidia is a company that’s not only beating expectations on the top-line, but also by 63 cents per share in profits. Additionally, Nvidia’s Omniverse platform stands out, going beyond a typical metaverse platform.
For those thinking long-term, there are plenty of growth catalysts to support additional upside with Nvidia from here, making it a great option in chip stocks to buy now.
Advanced Micro Devices (AMD)
Source: JHVEPhoto / Shutterstock.com
While Nvidia gets attention, Advanced Micro Devices (NASDAQ:AMD) is making strides in AI chips with its Instinct MI300X GPUs. AMD has secured substantial supply chain commitments, and customer interest in its AI offerings surged, with a seven-fold increase in AI cluster engagements last quarter.
PC demand might rise during the holiday season, but significant growth isn’t expected until the 2025 replacement cycle. AMD is a long-term hold, a key rival to Nvidia in AI data center GPUs, with Intel lagging. AMD is also expanding into embedded computing for IoT devices.
Despite August’s inflation concerns, AMD is rebounding with a 4% gain since September 11, 2023. Its Mipsology acquisition enhances AI capabilities and partnerships for automotive safety, using AMD’s system-on-a-chip, offering long-term growth potential.
Intel Corp (INTC)
Source: JHVEPhoto / Shutterstock.com
Intel’s (NASDAQ:INTC) growth strategy emphasizes AI as a “superpower” across diverse applications, aiming to lead in the expanding AI market. The company’s bold strategy is paying off and it’s on track to regain chip manufacturing leadership by releasing the advanced Intel 18A process node ahead of schedule, attracting significant interest from a mystery customer, possibly Apple (NASDAQ:AAPL) or Arm Holdings (NASDAQ:ARM).
Intel’s AI chips, competitively priced and in high demand, could challenge Nvidia’s offerings, potentially leading to substantial revenue and profits. It anticipates benefiting from the growing demand for PCs optimized for AI applications. They are expanding manufacturing capacity with investments in facilities in Germany and a new assembly and test facility in Poland.
Moreover, Intel’s IDM 2.0 strategy involves investments to strengthen its semiconductor position and foundry business. Intel Foundry Services (IFS) enhances its role in the AI market, diversifying the global supply chain with leading-edge capacity beyond Asia.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The post 3 Chip Stocks Crushing the Market With More Room to Run 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 company’s bold strategy is paying off and it’s on track to regain chip manufacturing leadership by releasing the advanced Intel 18A process node ahead of schedule, attracting significant interest from a mystery customer, possibly Apple (NASDAQ:AAPL) or Arm Holdings (NASDAQ:ARM). For those thinking long-term, there are plenty of growth catalysts to support additional upside with Nvidia from here, making it a great option in chip stocks to buy now. Intel Foundry Services (IFS) enhances its role in the AI market, diversifying the global supply chain with leading-edge capacity beyond Asia. | The company’s bold strategy is paying off and it’s on track to regain chip manufacturing leadership by releasing the advanced Intel 18A process node ahead of schedule, attracting significant interest from a mystery customer, possibly Apple (NASDAQ:AAPL) or Arm Holdings (NASDAQ:ARM). Advanced Micro Devices (AMD) Source: JHVEPhoto / Shutterstock.com While Nvidia gets attention, Advanced Micro Devices (NASDAQ:AMD) is making strides in AI chips with its Instinct MI300X GPUs. AMD has secured substantial supply chain commitments, and customer interest in its AI offerings surged, with a seven-fold increase in AI cluster engagements last quarter. | The company’s bold strategy is paying off and it’s on track to regain chip manufacturing leadership by releasing the advanced Intel 18A process node ahead of schedule, attracting significant interest from a mystery customer, possibly Apple (NASDAQ:AAPL) or Arm Holdings (NASDAQ:ARM). Advanced Micro Devices (AMD) Source: JHVEPhoto / Shutterstock.com While Nvidia gets attention, Advanced Micro Devices (NASDAQ:AMD) is making strides in AI chips with its Instinct MI300X GPUs. Intel Corp (INTC) Source: JHVEPhoto / Shutterstock.com Intel’s (NASDAQ:INTC) growth strategy emphasizes AI as a “superpower” across diverse applications, aiming to lead in the expanding AI market. | The company’s bold strategy is paying off and it’s on track to regain chip manufacturing leadership by releasing the advanced Intel 18A process node ahead of schedule, attracting significant interest from a mystery customer, possibly Apple (NASDAQ:AAPL) or Arm Holdings (NASDAQ:ARM). Advanced Micro Devices (AMD) Source: JHVEPhoto / Shutterstock.com While Nvidia gets attention, Advanced Micro Devices (NASDAQ:AMD) is making strides in AI chips with its Instinct MI300X GPUs. Intel Corp (INTC) Source: JHVEPhoto / Shutterstock.com Intel’s (NASDAQ:INTC) growth strategy emphasizes AI as a “superpower” across diverse applications, aiming to lead in the expanding AI market. |
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13489.0 | 2023-09-23 00:00:00 UTC | Tim Cook and Apple Are Running Circles Around Mark Zuckerberg's Metaverse Vision | AAPL | https://www.nasdaq.com/articles/tim-cook-and-apple-are-running-circles-around-mark-zuckerbergs-metaverse-vision | Meta (NASDAQ: META) has spent tens of billions of dollars building out virtual reality and metaverse technology, but Apple (NASDAQ: AAPL) is already commercializing products that are easy to use and reach millions more customers than Meta. In this video, Travis Hoium covers why Apple and Tim Cook are running circles around Mark Zuckerberg's Meta.
*Stock prices used were end-of-day prices of Sept. 15, 2023. The video was published on Sept. 18, 2023.
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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. | Meta (NASDAQ: META) has spent tens of billions of dollars building out virtual reality and metaverse technology, but Apple (NASDAQ: AAPL) is already commercializing products that are easy to use and reach millions more customers than Meta. In this video, Travis Hoium covers why Apple and Tim Cook are running circles around Mark Zuckerberg's Meta. Find out why Apple is one of the 10 best stocks to buy now Our analyst team has spent more than a decade beating the market. | Meta (NASDAQ: META) has spent tens of billions of dollars building out virtual reality and metaverse technology, but Apple (NASDAQ: AAPL) is already commercializing products that are easy to use and reach millions more customers than Meta. 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 Apple and Meta Platforms. | Meta (NASDAQ: META) has spent tens of billions of dollars building out virtual reality and metaverse technology, but Apple (NASDAQ: AAPL) is already commercializing products that are easy to use and reach millions more customers than Meta. *Stock Advisor returns as of September 18, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Apple and Meta Platforms. | Meta (NASDAQ: META) has spent tens of billions of dollars building out virtual reality and metaverse technology, but Apple (NASDAQ: AAPL) is already commercializing products that are easy to use and reach millions more customers than Meta. In this video, Travis Hoium covers why Apple and Tim Cook are running circles around Mark Zuckerberg's Meta. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. |
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13497.0 | 2023-09-22 00:00:00 UTC | 3 Stocks Delivering $2.8 Billion in Dividends to Warren Buffett Each Year | AAPL | https://www.nasdaq.com/articles/3-stocks-delivering-%242.8-billion-in-dividends-to-warren-buffett-each-year | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Since becoming CEO of Berkshire Hathaway (NYSE:BRK-A NYSE:BRK-B) in 1965, Warren Buffett generated 3.7 million percent returns for investors. That’s a staggering statistic, considering the S&P 500 returned some 24.7 thousand percent. There is a good reason he’s referred to as the Oracle of Omaha. This has led to the rise of Warren Buffett dividend stocks to buy.
Yet a good part of Buffett’s success lies in his love of dividend stocks. Companies that pay dividends are often those that have stood the test of time. They are successful, profitable businesses that have gone through numerous cycles and come out ahead.
Of the 49 stocks in Buffett’s portfolio, 31 pay dividends. He will receive nearly $6 billion in dividends from those stocks in 2023.
But like a lot of Buffett’sinvestment advice it’s often a case of do as I say, not as I do. Because as much as Buffett loves dividends, he refuses to allow Berkshire Hathaway to pay any.
That doesn’t mean investors can’t still profit off of the dividends Buffett receives. They help juice the returns of Berkshire Hathaway, ultimately making it a good investment. But The Oracle will receive over $2.8 billion from just three companies, or 50% of all the dividends he collects. What follows are the top Warren Buffett dividend stocks Berkshire Hathaway owns.
Occidental Petroleum (OXY)
Source: T. Schneider / Shutterstock.com
Because Buffett only recently paused his shopping spree of Occidental Petroleum (NYSE:OXY) stock, he now owns more than 2.24 million shares of the oil and gas giant. That means Buffett’s ownership stake is 25%, and he has permission from the Securities & Exchange Commission to buy as much as 50%. His dividend payment ought to be around $961 million.
Yet Occidental’s dividend is $0.96 per share, so if you do the math, it looks like Buffett will only collect around $161 million in dividends from his shares. What many forget (or do not know) is that Berkshire Hathaway also bought $10 billion of preferred stock. Those shares yield 8% annually giving Buffett an additional $800 million in preferred dividends. However, Occidental did begin buying some of that stock back. Any redemptions Occidental makes require it to pay Berkshire any accrued and unpaid dividends. All in all, it’s one of those Warren Buffett dividend stocks to consider.
Buffett bought Occidental Petroleum because of its dominance in the Permian Basin. He said it was “a bet on the fact that the Permian Basin is what it is cracked up to be.” However, the U.S. Energy Information Administration recently reported that Permian was leading the way in new oil and gas production. It forecasts the region’s third straight month of production declines.
That’s partly due to the higher costs of drilling deep wells. Although deeper wells produce more oil per well, thus generating higher revenue, they are also more expensive to drill. It suggests the short and medium-depth wells oil companies are opting for will end up showing up on the income statement as reduced revenue. Profits might not be hurt too much, though, due to the cost savings.
Apple (AAPL)
Source: askarim / Shutterstock
Even though Apple (NASDAQ:AAPL) is Buffett’s favorite stock, comprising 46% of Berkshire Hathaway’s total portfolio, it’s not the top dividend-generating stock. Buffett owns over 915 million shares of the tech giant, but Apple’s dividend of $0.96 per share means he will collect just under $879 million worth of dividends this year.
Apple, of course, is the most valuable stock on the market. It is worth some $2.8 trillion dollars. Even if its shares were cut in half, it would still be one of the five most valuable companies. That’s because Apple remains the technological leader when it comes to products like the iPhone, Apple Watch, Mac, and other personal electronic gear.
It just revealed its new product lineup. Apple will be releasing the iPhone 15 that will sell for $799, some $50 cheaper than last year’s iPhone 14 (The Pro will cost $999). This comes as smartphone sales are expected to fall to their lowest level in the past decade. Shipments this year will hit 1.15 billion units, a 6% decline 6%, according to Counterpoint Research.
Apple continues to narrow the gap between it and Samsung inglobal marketshare. The iPhone now has a 17% share of the market, up from 14% last year, while Samsung’s share remained flat at 20%. With the iPhone 15’s release, that gap may narrow further. This make it one of those Warren Buffett dividend stocks you should keep on your watchlist.
Apple’s stock is off nearly 10% from its all-time highs. With a pricey valuation, shares could slip further if the new iPhone doesn’t catch on quickly. Apple manages to surprise naysayers, so keep an eye out for where they go.
Bank of America (BAC)
Source: FabrikaSimf / Shutterstock
Bank of America (NYSE:BAC) stock is faring even worse than Apple as a result of the financial crisis earlier this year. The seizure of Silicon Valley Bank, Signature Bank (OTCMKTS:SBNY), and others created a ripple effect of worry about the health of America’s banking system. It reached even to the biggest banks, such as Bank of America. Its stock tumbled 25% from its highs.
Buffett owns over one billion shares of the bank. He held on tight to the stock even as he shed the shares of other financial institutions.
The market shouldn’t be so worried. While rising interest rates increase the cost of liabilities and decrease the value of investment securities held as assets, they do give banks opportunities to increase earnings by pushing up rates charged on loans, increasing profits.
Moreover, the shaken consumer confidence in banks caused them to withdraw their money from smaller banks and put it into larger ones like Bank of America. It added 157,000 net new customers in the most recent quarter. It’s the 18th consecutive quarter of growth. Revenue of $10.5 billion was 15% higher than last year.
With Bank of America’s stock trading at just 90% of its book value, the stock is a bargain. It also pays a dividend of $0.96 per share yielding 3.4% annually. For Buffett’s one-billion-plus shares, he’s raking in a cool $991.5 billion in dividends. That makes Bank of America Berkshire Hathaway’s biggest dividend check of the year.
On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The 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: askarim / Shutterstock Even though Apple (NASDAQ:AAPL) is Buffett’s favorite stock, comprising 46% of Berkshire Hathaway’s total portfolio, it’s not the top dividend-generating stock. It suggests the short and medium-depth wells oil companies are opting for will end up showing up on the income statement as reduced revenue. On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. | Apple (AAPL) Source: askarim / Shutterstock Even though Apple (NASDAQ:AAPL) is Buffett’s favorite stock, comprising 46% of Berkshire Hathaway’s total portfolio, it’s not the top dividend-generating stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since becoming CEO of Berkshire Hathaway (NYSE:BRK-A NYSE:BRK-B) in 1965, Warren Buffett generated 3.7 million percent returns for investors. What follows are the top Warren Buffett dividend stocks Berkshire Hathaway owns. | Apple (AAPL) Source: askarim / Shutterstock Even though Apple (NASDAQ:AAPL) is Buffett’s favorite stock, comprising 46% of Berkshire Hathaway’s total portfolio, it’s not the top dividend-generating stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since becoming CEO of Berkshire Hathaway (NYSE:BRK-A NYSE:BRK-B) in 1965, Warren Buffett generated 3.7 million percent returns for investors. Buffett owns over 915 million shares of the tech giant, but Apple’s dividend of $0.96 per share means he will collect just under $879 million worth of dividends this year. | Apple (AAPL) Source: askarim / Shutterstock Even though Apple (NASDAQ:AAPL) is Buffett’s favorite stock, comprising 46% of Berkshire Hathaway’s total portfolio, it’s not the top dividend-generating stock. Yet Occidental’s dividend is $0.96 per share, so if you do the math, it looks like Buffett will only collect around $161 million in dividends from his shares. The iPhone now has a 17% share of the market, up from 14% last year, while Samsung’s share remained flat at 20%. |
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13518.0 | 2023-09-21 00:00:00 UTC | Netflix (NFLX) Resurrects Onimusha with Epic Anime Revival | AAPL | https://www.nasdaq.com/articles/netflix-nflx-resurrects-onimusha-with-epic-anime-revival | Netflix NFLX is bringing back the iconic Onimusha with an anime adaptation. Based on Capcom's renowned video game, the new series will premiere globally on Nov 2.
Takashi Miike, known for his groundbreaking swordplay in 13 Assassins and Blade of the Immortal, leads as supervising director, while director Shinya Sugai and animation studio Sublimation aim to bring a unique perspective to Onimusha, aiming to revolutionize anime.
The anime focuses on Miyamoto Musashi, inspired by Japanese legend Toshiro Mifune, during the peaceful Edo Period. An older Musashi embarks on a secret mission with the powerful "Oni Gauntlet," confronting hidden demons, and the emotional theme song THE LONELIEST by Maneskin enhances the story's depth.
Onimusha's fusion of cutting-edge 3D CGI character animations and exquisitely hand-drawn backgrounds stands out. This blending of traditional and modern animation techniques offers a fresh and immersive experience for both long-time fans and newcomers.
Expanding Portfolio & Partner Base Aids Growth
Netflix shares have returned 30.6% compared with the Zacks Consumer Discretionary sector’s increase of 7.2% year to date. The outperformance can be attributed to an expanding subscriber base and robust content offerings.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
It also outperformed Disney DIS but underperformed Amazon AMZN and Apple AAPL.
Shares of Apple and Amazon have returned 35.1% and 61.1%, respectively, on a year-to-date basis. Disney’s shares have declined 2.8%.
Netflix, which currently has a Zacks Rank #3 (Hold), is expected to benefit from its diversified content portfolio, attributable to heavy investments in the production and distribution of localized, foreign-language content. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It also benefits from an expanding portfolio that is helping Netflix keep subscribers engaged. On Aug 29, Netflix announced the launch of four new games - SNK Corporation’s Samurai Shodown, LEGO Legacy: Heroes Unboxed by Gameloft, WrestleQuest by Mega Cat Studios, and Cut the Rope Daily by Zeptolab.
Netflix now expects revenue growth to accelerate in the second half of 2023, driven by the launch of the paid sharing initiative and an expanding content offering. However, it anticipates foreign-exchange neutral average revenues per membership to be flat to slightly down year over year due to limited price increases over the past 12 months and immaterial revenues from advertising and paid-sharing.
For the third quarter of 2023, Netflix now forecasts earnings of $3.52 per share, indicating an almost 10% increase from the figure reported in the year-ago quarter. Total revenues are anticipated to be $8.52 billion, suggesting growth of 7% year over year and on a forex-neutral basis.
The Zacks Consensus Estimate for Netflix's third-quarter revenue is pegged at $8.53 billion, indicating 7.59 year-over-year growth. The consensus mark for earnings increased by a penny over the past 30 days to $3.49 per 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. | Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote It also outperformed Disney DIS but underperformed Amazon AMZN and Apple AAPL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. An older Musashi embarks on a secret mission with the powerful "Oni Gauntlet," confronting hidden demons, and the emotional theme song THE LONELIEST by Maneskin enhances the story's depth. | Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote It also outperformed Disney DIS but underperformed Amazon AMZN and Apple AAPL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Expanding Portfolio & Partner Base Aids Growth Netflix shares have returned 30.6% compared with the Zacks Consumer Discretionary sector’s increase of 7.2% year to date. | Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote It also outperformed Disney DIS but underperformed Amazon AMZN and Apple AAPL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Expanding Portfolio & Partner Base Aids Growth Netflix shares have returned 30.6% compared with the Zacks Consumer Discretionary sector’s increase of 7.2% year to date. | Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote It also outperformed Disney DIS but underperformed Amazon AMZN and Apple AAPL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Expanding Portfolio & Partner Base Aids Growth Netflix shares have returned 30.6% compared with the Zacks Consumer Discretionary sector’s increase of 7.2% year to date. |
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13549.0 | 2023-09-20 00:00:00 UTC | Apple France workers call strike ahead of iPhone 15 launch | AAPL | https://www.nasdaq.com/articles/apple-france-workers-call-strike-ahead-of-iphone-15-launch | PARIS, Sept 20 (Reuters) - Unions at the Apple AAPL.O France stores have called for a strike on Friday and Saturday ahead of the iPhone 15 launch, demanding better pay and working conditions.
"Management having decided to ignore our perfectly legitimate demands and concerns, the four unions of Apple Retail France ...call for a strike on Sept. 22 and 23," CGT Apple Retail said in a union front statement on social media platform X, formerly Twitter, account on Wednesday.
(Reporting by Geert De Clercq, Editing by Louise Heavens)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PARIS, Sept 20 (Reuters) - Unions at the Apple AAPL.O France stores have called for a strike on Friday and Saturday ahead of the iPhone 15 launch, demanding better pay and working conditions. "Management having decided to ignore our perfectly legitimate demands and concerns, the four unions of Apple Retail France ...call for a strike on Sept. 22 and 23," CGT Apple Retail said in a union front statement on social media platform X, formerly Twitter, account on Wednesday. (Reporting by Geert De Clercq, Editing by Louise Heavens) (([email protected];)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PARIS, Sept 20 (Reuters) - Unions at the Apple AAPL.O France stores have called for a strike on Friday and Saturday ahead of the iPhone 15 launch, demanding better pay and working conditions. "Management having decided to ignore our perfectly legitimate demands and concerns, the four unions of Apple Retail France ...call for a strike on Sept. 22 and 23," CGT Apple Retail said in a union front statement on social media platform X, formerly Twitter, account on Wednesday. (Reporting by Geert De Clercq, Editing by Louise Heavens) (([email protected];)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PARIS, Sept 20 (Reuters) - Unions at the Apple AAPL.O France stores have called for a strike on Friday and Saturday ahead of the iPhone 15 launch, demanding better pay and working conditions. "Management having decided to ignore our perfectly legitimate demands and concerns, the four unions of Apple Retail France ...call for a strike on Sept. 22 and 23," CGT Apple Retail said in a union front statement on social media platform X, formerly Twitter, account on Wednesday. (Reporting by Geert De Clercq, Editing by Louise Heavens) (([email protected];)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | PARIS, Sept 20 (Reuters) - Unions at the Apple AAPL.O France stores have called for a strike on Friday and Saturday ahead of the iPhone 15 launch, demanding better pay and working conditions. "Management having decided to ignore our perfectly legitimate demands and concerns, the four unions of Apple Retail France ...call for a strike on Sept. 22 and 23," CGT Apple Retail said in a union front statement on social media platform X, formerly Twitter, account on Wednesday. (Reporting by Geert De Clercq, Editing by Louise Heavens) (([email protected];)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
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13581.0 | 2023-09-19 00:00:00 UTC | 2 Stocks Warren Buffett Is Significantly Overweight In | AAPL | https://www.nasdaq.com/articles/2-stocks-warren-buffett-is-significantly-overweight-in | When famous investors share the wisdom they've gained from years of success, those of us on Main Street often sit up and take notice. And when these investors put their money where their mouths are, it's noteworthy -- especially with the Oracle of Omaha himself, Warren Buffett.
Buffett is hardly capricious about his stock purchases. Once a company finds its way into the Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio, it will likely remain there for an extended time. Therefore, it's a worthy exercise for these two fool.com contributors to take a close look at two of Berkshire Hathaway's positions: Apple (NASDAQ: AAPL) and Chevron (NYSE: CVX).
Apple is Berkshire Hathaway's core holding
Lee Samaha (Apple): Representing around 45% of Berkshire Hathaway's publicly-traded equity portfolio, Apple can justifiably be called a conviction Buffett holding. It's also fair to say that this year has been challenging for the company.
It's a challenging year for any company with heavy exposure to consumer electronics spending. A combination of rising interest rates pressuring consumer discretionary spending and a natural correction after the lockdown boom in consumer electronics puts Apple and others under pressure.
As such, it's no surprise to see the company report a year-over-year decline in Mac and iPad sales amid a 1.4% decline in overall sales to $81.8 billion. However, two things about the report highlighted the long-term attraction of the stock.
First, its core product is the iPhone. On a constant currency basis, the device's sales were up year over year in the quarter, a pretty good result under the circumstances and indicative of the strength of its competitive position.
Second, Apple's higher-margin services segment grew sales by 8.2% year over year to $21.2 billion, representing almost 26% of total sales, up from 23.6% last year. And the company has more than 1 billion paid subscribers across its services, up 150 million over the previous year.
As such, it's doing an excellent job of competing in the smartphone market and growing its service sales, and if the trend continues, then it will emerge from the consumer spending funk in a much stronger position than before it.
That will keep Warren Buffett happy.
Chevron greases the wheels of Buffett's passive income
Scott Levine (Chevron): While Berkshire Hathaway has reduced its position in Chevron recently, it continues to hold a sizable spot in Buffett's portfolio. Valued at about $25 billion, Berkshire Hathaway's position in Chevron makes it the fifth-largest holding in the portfolio.
The energy stalwart has an ample upstream business that was strengthened with the recent acquisition of PDC Energy, a transaction expected to yield $1 billion in annual free cash flow. It has a strong onshore presence in the Permian Basin, as well as numerous deepwater assets in the Gulf of Mexico, Western Africa, Australia, and the Eastern Mediterranean.
And the company's strong pipeline business and downstream operations give it a powerful presence throughout the value chain.
With Chevron's fundamentals, it's clear why Buffett chooses it to power the Berkshire Hathaway portfolio. For one, he values a company's ability to generate profits from shareholder equity, so its strong three-year average return on equity of 10.7% is attractive to him.
The company's conservative approach to leverage also appeals to Buffett. Chevron's debt-to-equity ratio of 0.13 stands out in comparison to its leading peers: ExxonMobil, Shell, and TotalEnergies.
XOM debt-to-equity ratio data by YCharts.
And Chevron's commitment to rewarding shareholders -- it has raised its dividend for 36 consecutive years -- is yet another draw for Buffett. The stock has a forward-yielding dividend of 3.9%, and management has said it's dedicated to keep growing the payout as long as the price of Brent crude remains above $50 per barrel.
Would you benefit from buying these Buffett stocks?
Both Apple and Chevron are alluring investments. Some might buy Apple simply because it's the largest position in the Berkshire Hathaway portfolio. But the company's commanding position in the smartphone market, its fervent customer loyalty, and considerable financial strengths are enough reasons to buy the stock.
Chevron, meanwhile, is a leading energy stock with strong financials and a commitment to returning capital to shareholders.
Find out why Apple is one of the 10 best stocks to buy now
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Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends Chevron. 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. | Therefore, it's a worthy exercise for these two fool.com contributors to take a close look at two of Berkshire Hathaway's positions: Apple (NASDAQ: AAPL) and Chevron (NYSE: CVX). As such, it's doing an excellent job of competing in the smartphone market and growing its service sales, and if the trend continues, then it will emerge from the consumer spending funk in a much stronger position than before it. It has a strong onshore presence in the Permian Basin, as well as numerous deepwater assets in the Gulf of Mexico, Western Africa, Australia, and the Eastern Mediterranean. | Therefore, it's a worthy exercise for these two fool.com contributors to take a close look at two of Berkshire Hathaway's positions: Apple (NASDAQ: AAPL) and Chevron (NYSE: CVX). Apple is Berkshire Hathaway's core holding Lee Samaha (Apple): Representing around 45% of Berkshire Hathaway's publicly-traded equity portfolio, Apple can justifiably be called a conviction Buffett holding. Chevron greases the wheels of Buffett's passive income Scott Levine (Chevron): While Berkshire Hathaway has reduced its position in Chevron recently, it continues to hold a sizable spot in Buffett's portfolio. | Therefore, it's a worthy exercise for these two fool.com contributors to take a close look at two of Berkshire Hathaway's positions: Apple (NASDAQ: AAPL) and Chevron (NYSE: CVX). Apple is Berkshire Hathaway's core holding Lee Samaha (Apple): Representing around 45% of Berkshire Hathaway's publicly-traded equity portfolio, Apple can justifiably be called a conviction Buffett holding. Second, Apple's higher-margin services segment grew sales by 8.2% year over year to $21.2 billion, representing almost 26% of total sales, up from 23.6% last year. | Therefore, it's a worthy exercise for these two fool.com contributors to take a close look at two of Berkshire Hathaway's positions: Apple (NASDAQ: AAPL) and Chevron (NYSE: CVX). Apple is Berkshire Hathaway's core holding Lee Samaha (Apple): Representing around 45% of Berkshire Hathaway's publicly-traded equity portfolio, Apple can justifiably be called a conviction Buffett holding. Second, Apple's higher-margin services segment grew sales by 8.2% year over year to $21.2 billion, representing almost 26% of total sales, up from 23.6% last year. |
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13593.0 | 2023-09-18 00:00:00 UTC | Keep on Buying Apple Stock as Initial iPhone 15 Pre-Orders Look Strong, Says Top Analyst | AAPL | https://www.nasdaq.com/articles/keep-on-buying-apple-stock-as-initial-iphone-15-pre-orders-look-strong-says-top-analyst | Apple’s (AAPL) newest versions of its flagship product, the iPhone 15, has been getting a bit of a lukewarm reception. The evidence can be seen in the muted recent share price performance. Since the start of the month, the stock is down by ~7.5%, with the new model’s launch failing to ignite a rally while concerns around a Chinese ban of government employees using iPhones have lingered.
That said, checking in with the initial pre-orders data, Wedbush analyst Dan Ives says it is coming in much better than he – or the Street - initially expected. iPhone 15 pre-orders kicked off last Friday, and so far, based on Ives’ analysis, are up roughly 10%-12% vs. the iPhone 14.
“The mix is heavily skewed towards iPhone 15 Pro/Pro Max with Pro Max exceptionally strong in the US, China, India, and parts of Europe,” says the 5-star analyst. “This is a clear positive for Apple with ASPs set to be a major tailwind for Cupertino in this iPhone 15 cycle with our expectation of an ASP in the ~$925 range and up roughly $100 over the last 12-15 months given heavy Pro mix model shifts.”
The iPhone 15 is set to make its Apple Store/retail debut on Friday (Sep 22), with Ives believing this cycle’s “clear standout” will be the iPhone 15 Max. According to Ives, pre-orders in India are showing a 25% year-over-year increase, and promisingly, in the face plenty of China-related noise, are looking strong in that region too. Despite growing Street skepticism, Ives remains confident market share gains “will remain steady” in China during this cycle.
Based on Asia supply checks, Ives sees around 85 million iPhone 15 units “out of the gates” with even 90 million within reach, boosted by “eye-popping” carrier promotions already taking place, which heading into the holiday season, should be a “major catalyst for upgrades.”
That said, there’s no need for an upgrade on Ives’ part right now. He sticks with an Outperform (i.e., Buy) rating and Street-high $240 price target. There’s potential upside of 37% from current levels. (To watch Ives’ track record, click here)
Most analysts agree with Ives’ stance but not all are on board. All told, the stock claims a Moderate Buy consensus rating, based on 22 Buys vs. 8 Holds. Going by the $207.39 average target, a year from now, the stock will be changing hands for an 18% premium. (See Apple stock forecast on TipRanks)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple’s (AAPL) newest versions of its flagship product, the iPhone 15, has been getting a bit of a lukewarm reception. Since the start of the month, the stock is down by ~7.5%, with the new model’s launch failing to ignite a rally while concerns around a Chinese ban of government employees using iPhones have lingered. According to Ives, pre-orders in India are showing a 25% year-over-year increase, and promisingly, in the face plenty of China-related noise, are looking strong in that region too. | Apple’s (AAPL) newest versions of its flagship product, the iPhone 15, has been getting a bit of a lukewarm reception. iPhone 15 pre-orders kicked off last Friday, and so far, based on Ives’ analysis, are up roughly 10%-12% vs. the iPhone 14. “The mix is heavily skewed towards iPhone 15 Pro/Pro Max with Pro Max exceptionally strong in the US, China, India, and parts of Europe,” says the 5-star analyst. | Apple’s (AAPL) newest versions of its flagship product, the iPhone 15, has been getting a bit of a lukewarm reception. “This is a clear positive for Apple with ASPs set to be a major tailwind for Cupertino in this iPhone 15 cycle with our expectation of an ASP in the ~$925 range and up roughly $100 over the last 12-15 months given heavy Pro mix model shifts.” The iPhone 15 is set to make its Apple Store/retail debut on Friday (Sep 22), with Ives believing this cycle’s “clear standout” will be the iPhone 15 Max. Based on Asia supply checks, Ives sees around 85 million iPhone 15 units “out of the gates” with even 90 million within reach, boosted by “eye-popping” carrier promotions already taking place, which heading into the holiday season, should be a “major catalyst for upgrades.” That said, there’s no need for an upgrade on Ives’ part right now. | Apple’s (AAPL) newest versions of its flagship product, the iPhone 15, has been getting a bit of a lukewarm reception. iPhone 15 pre-orders kicked off last Friday, and so far, based on Ives’ analysis, are up roughly 10%-12% vs. the iPhone 14. “The mix is heavily skewed towards iPhone 15 Pro/Pro Max with Pro Max exceptionally strong in the US, China, India, and parts of Europe,” says the 5-star analyst. |
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13608.0 | 2023-09-17 00:00:00 UTC | If You Invested $5,000 in Broadcom In 2009, This Is How Much You Would Have Today | AAPL | https://www.nasdaq.com/articles/if-you-invested-%245000-in-broadcom-in-2009-this-is-how-much-you-would-have-today | Broadcom (NASDAQ: AVGO) is one of the lesser-understood mega-caps in the semiconductor industry. As a B2B provider of semiconductors and enterprise software, it receives little exposure from the general public.
However, its success has taken its stock 5,100% higher since launching its IPO in 2009. And with demand for semiconductors and enterprise software increasing, it is likely to continue delivering significant returns for investors.
Broadcom's share price growth
Broadcom launched its IPO at an opportune time. The company, then known as Avago Technologies, debuted almost a year after the global financial crisis when stocks had begun a recovery from one of the most notable declines in history.
When it debuted, it sold for $15 per share, meaning an investor with $5,000 would have bought 333 shares. Today, the value of that investment would have grown to more than $283,000.
AVGO data by YCharts
Even better, that figure does not include dividend payments, which began in 2010. The payout has increased at least once annually since that time. Today, the annual dividend stands at $18.40 per share, a dividend yield of around 2.1%.
But that yield applies to new shareholders. Those who bought on the IPO day and held the shares will earn a cash return of $6,127 this year. That amounts to a 123% yearly return without selling a single share!
How it grew
The company now known as Broadcom began in Singapore as a semiconductor provider for businesses. Its strategy involved employing engineers near its largest customers. This way, the company would collaboratively design chips that met the needs of its clients.
Consumers typically do not interact with these products directly. However, one of its better-known chips supports the personal hotspot on Apple's iPhone.
It would also increase its capabilities by acquiring other companies, it applies to this day. Hence, its most notable purchase to date was likely the former Broadcom, which allowed the company to later adopt that name. With this move, it also would eventually move its headquarters from Singapore to San Jose.
Moreover, with the natural cyclicality of the chip industry affecting financials, Broadcom pivoted into the enterprise software industry with key acquisitions in 2018 and 2019.
Additionally, it has sought to grow this segment further by acquiring VMWare. If successful, this acquisition will mean software makes up approximately 40% of its revenue, up from just over 22% now. That purchase gives Broadcom considerable diversification away from semiconductors.
Broadcom's future
The good news is both its segments, semiconductor solutions and infrastructure software, should stay on a growth path. Fortune Business Insights forecasts a compound annual growth rate (CAGR) of 12% through 2029 for the chip industry. Also, Grand View Research predicts a CAGR for the enterprise software industry of 12% through 2030.
The company's growth has posted revenue growth consistent with those predictions. Although the chip industry has experienced a downturn, the $27 billion in revenue Broadcom reported in the first nine months of fiscal 2023 (ended July 30) rose 9% versus the same period in 2022.
Furthermore, slower growth in operating expenses resulted in a net income of nearly $11 billion during the period, rising 33% versus one year ago.
These increases have helped take Broadcom's market cap to more than $350 billion, a level making another 5,100% increase in the stock price unlikely to occur. Nonetheless, that long-term trend should continue to bolster both the semiconductor stock and the dividend. That means shareholders should continue to profit as Broadcom serves more business clients.
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Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Broadcom and VMware. 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 company, then known as Avago Technologies, debuted almost a year after the global financial crisis when stocks had begun a recovery from one of the most notable declines in history. Although the chip industry has experienced a downturn, the $27 billion in revenue Broadcom reported in the first nine months of fiscal 2023 (ended July 30) rose 9% versus the same period in 2022. Furthermore, slower growth in operating expenses resulted in a net income of nearly $11 billion during the period, rising 33% versus one year ago. | Broadcom's share price growth Broadcom launched its IPO at an opportune time. Moreover, with the natural cyclicality of the chip industry affecting financials, Broadcom pivoted into the enterprise software industry with key acquisitions in 2018 and 2019. The Motley Fool recommends Broadcom and VMware. | Broadcom's share price growth Broadcom launched its IPO at an opportune time. These increases have helped take Broadcom's market cap to more than $350 billion, a level making another 5,100% increase in the stock price unlikely to occur. See the 10 stocks *Stock Advisor returns as of September 11, 2023 Will Healy has no position in any of the stocks mentioned. | Today, the annual dividend stands at $18.40 per share, a dividend yield of around 2.1%. How it grew The company now known as Broadcom began in Singapore as a semiconductor provider for businesses. Moreover, with the natural cyclicality of the chip industry affecting financials, Broadcom pivoted into the enterprise software industry with key acquisitions in 2018 and 2019. |
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13621.0 | 2023-09-16 00:00:00 UTC | The 3 Most Undervalued AI Stocks to Buy in September 2023 | AAPL | https://www.nasdaq.com/articles/the-3-most-undervalued-ai-stocks-to-buy-in-september-2023 | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Although artificial intelligence has garnered tremendous interest for good reason, investors may want to focus more of their attention on undervalued AI stocks to buy. Don’t get me wrong – some of the hottest trades right now continue to impress, most noticeably Nvidia (NASDAQ:NVDA). However, these ideas are simply too hot to touch for most investors.
For those that are concerned about holding the bag should market sentiment suddenly go sour, the undervalued AI stocks make more sense. To be sure, no endeavor in the capital market operates without risk. Still, with the enterprises enjoying the machine learning spotlight carrying wildly aggressive multiples, it’s time to consider a discounted route. If that’s you, below are the less-appreciated but still power AI stocks to buy.
Qualcomm (QCOM)
Source: Akshdeep Kaur Raked / Shutterstock.com
While Qualcomm (NASDAQ:QCOM) hasn’t enjoyed the best outing this year – only gaining a bit more than 6% since the January opener – it’s worth putting on your radar for undervalued AI stocks to buy. No, it’s not just because of its poor chart performance. For one thing, Qualcomm unexpectedly got a boost when Apple (NASDAQ:AAPL) signed a new supply deal with the tech specialist.
Of course, it’s not clear how long such an arrangement will last. After all, Apple has long indicated that it wants to build its own modem chips for its flagship iPhone. Apparently, though, that’s easier said than done. Plus, even if Apple eventually separates from third-party suppliers, Qualcomm commands acumen that’s difficult to ignore. Plus, QCOM is one of the most attractively valued AI stocks. Right now, it trades at 12.41x forward earnings. In contrast, the sector median is 20.96x. Finally, analysts peg QCOM as a consensus moderate buy with a $135.82 price target, implying over 19% upside.
Teradyne (TER)
Source: Michael Vi / Shutterstock.com
An automatic test equipment designer and manufacturer, Teradyne (NASDAQ:TER) features many high-profile customers, including Qualcomm. While an important player in the broader tech ecosystem, Teradyne isn’t exactly a pure-play example of AI stocks to buy. However, it’s part of the semiconductor industry supply chain, which has benefitted from a post-pandemic demand surge.
Moving forward, Teradyne should play an increasingly important role in digital intelligence. As chip capacities increase, demand for various testing services and electronic equipment should rise. In addition, Teradyne sells robotic systems to customers in the manufacturing sector, according to Reuters.
On a financial basis, TER benefits from a stout balance sheet and excellent profit margins. Even with its superior bottom-line performance, TER trades at 16.44x forward earnings. Again, this rates much lower than the chip sector’s median 20.96x. Lastly, analysts peg TER as a moderate buy with a $119.15 price target, implying nearly 22% growth.
Baidu (BIDU)
Source: monticello / Shutterstock.com
A Chinese multinational technology firm, Baidu (NASDAQ:BIDU) is an interesting case because of the ongoing U.S.-China chip war. With tensions rising between the two biggest economies in the world, Baidu inherently presents risks. At the same time, acquiring AI stocks that trade at over 100x trailing earnings is another form of risk that many investors simply don’t want to take.
Fortunately, Baidu offers some enticing exposure for the adventurous. For example, another Reuters report noted that more than 70 large AI language models with over 1 billion parameters have been release in China. What’s more, Baidu is one of several Chinese companies that have launched AI chatbots recently following regulatory approval for mass market releases.
What makes BIDU stand out is its value proposition. Right now, the market prices shares at a forward earnings multiple of 13.88x. This compares favorably to the interactive media industry’s median value of 18.04x.
In closing, analysts peg BIDU as a consensus strong buy with a $185.07 price target, implying 35% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For one thing, Qualcomm unexpectedly got a boost when Apple (NASDAQ:AAPL) signed a new supply deal with the tech specialist. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. | For one thing, Qualcomm unexpectedly got a boost when Apple (NASDAQ:AAPL) signed a new supply deal with the tech specialist. Finally, analysts peg QCOM as a consensus moderate buy with a $135.82 price target, implying over 19% upside. Teradyne (TER) Source: Michael Vi / Shutterstock.com An automatic test equipment designer and manufacturer, Teradyne (NASDAQ:TER) features many high-profile customers, including Qualcomm. | For one thing, Qualcomm unexpectedly got a boost when Apple (NASDAQ:AAPL) signed a new supply deal with the tech specialist. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Although artificial intelligence has garnered tremendous interest for good reason, investors may want to focus more of their attention on undervalued AI stocks to buy. Qualcomm (QCOM) Source: Akshdeep Kaur Raked / Shutterstock.com While Qualcomm (NASDAQ:QCOM) hasn’t enjoyed the best outing this year – only gaining a bit more than 6% since the January opener – it’s worth putting on your radar for undervalued AI stocks to buy. | For one thing, Qualcomm unexpectedly got a boost when Apple (NASDAQ:AAPL) signed a new supply deal with the tech specialist. As chip capacities increase, demand for various testing services and electronic equipment should rise. Baidu (BIDU) Source: monticello / Shutterstock.com A Chinese multinational technology firm, Baidu (NASDAQ:BIDU) is an interesting case because of the ongoing U.S.-China chip war. |
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13625.0 | 2023-09-15 00:00:00 UTC | Apple delays high-end iPhone 15 models in China in sign of strong orders | AAPL | https://www.nasdaq.com/articles/apple-delays-high-end-iphone-15-models-in-china-in-sign-of-strong-orders | By Brenda Goh
Sept 15 (Reuters) - Buyers of Apple's new iPhone 15 Pro Max in China will need to wait for 4-5 weeks before receiving the smartphone, the company's website showed on Friday as it started taking pre-orders in an early sign of strong demand.
The wait is slightly shorter for iPhone 15 Pro at 2-3 weeks, while the company said it could deliver iPhone 15 by Sept. 22, the day the phone goes on sale in stores.
For the iPhone 15 Plus, the wait in China is 8 working days.
Meanwhile, more than 3.4 million reservations were placed on JD.com in total for the four models in the run-up to the e-commerce platform opening orders on Friday evening.
Ivan Lam, senior analyst at Counterpoint, said it was reasonable to expect such volumes on JD.com, one of Apple's biggest sale channels in China.
"Since the decline of Huawei, the iPhone has been able to attract a massive number of consumers in the more than $600 segment. The new iPhone 15 series, especially the Pro series, will be a good choice for the installed base who are using iPhone 11/12 and looking for an update replacement," he said.
"However, there's no doubt that the new Mate 60 series will be a challenge to the iPhone this year."
How the iPhone 15 series will fare in China, its third largest market, is being closely watched after former rival Huawei Technologies HWT.UL launched a new smartphone with an advanced chip late last month.
Huawei's Mate 60 series could mark a comeback for the Chinese tech firm, which was once the world's biggest smartphone maker before its business was decimated by U.S. export controls, analysts said.
State media reported this week that better-than-expected sales had prompted Huawei to raise its second-half shipment target for its Mate 60 series smartphone by 20% and its forecast for overall new smartphone shipments in 2023 to at least 40 million units.
Huawei's Mate 60 launch was unusual in that Huawei did not carry out any pre-marketing or organise a glitzy event. The company is set to hold an event on Sept. 25, where it is expected to discuss its new smartphone.
(Reporting by Brenda Goh in Shanghai and Yuvraj Malik in Bengaluru; Editing by Arun Koyyur)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Brenda Goh Sept 15 (Reuters) - Buyers of Apple's new iPhone 15 Pro Max in China will need to wait for 4-5 weeks before receiving the smartphone, the company's website showed on Friday as it started taking pre-orders in an early sign of strong demand. How the iPhone 15 series will fare in China, its third largest market, is being closely watched after former rival Huawei Technologies HWT.UL launched a new smartphone with an advanced chip late last month. Huawei's Mate 60 series could mark a comeback for the Chinese tech firm, which was once the world's biggest smartphone maker before its business was decimated by U.S. export controls, analysts said. | By Brenda Goh Sept 15 (Reuters) - Buyers of Apple's new iPhone 15 Pro Max in China will need to wait for 4-5 weeks before receiving the smartphone, the company's website showed on Friday as it started taking pre-orders in an early sign of strong demand. Huawei's Mate 60 series could mark a comeback for the Chinese tech firm, which was once the world's biggest smartphone maker before its business was decimated by U.S. export controls, analysts said. Huawei's Mate 60 launch was unusual in that Huawei did not carry out any pre-marketing or organise a glitzy event. | By Brenda Goh Sept 15 (Reuters) - Buyers of Apple's new iPhone 15 Pro Max in China will need to wait for 4-5 weeks before receiving the smartphone, the company's website showed on Friday as it started taking pre-orders in an early sign of strong demand. How the iPhone 15 series will fare in China, its third largest market, is being closely watched after former rival Huawei Technologies HWT.UL launched a new smartphone with an advanced chip late last month. State media reported this week that better-than-expected sales had prompted Huawei to raise its second-half shipment target for its Mate 60 series smartphone by 20% and its forecast for overall new smartphone shipments in 2023 to at least 40 million units. | By Brenda Goh Sept 15 (Reuters) - Buyers of Apple's new iPhone 15 Pro Max in China will need to wait for 4-5 weeks before receiving the smartphone, the company's website showed on Friday as it started taking pre-orders in an early sign of strong demand. The wait is slightly shorter for iPhone 15 Pro at 2-3 weeks, while the company said it could deliver iPhone 15 by Sept. 22, the day the phone goes on sale in stores. Huawei's Mate 60 launch was unusual in that Huawei did not carry out any pre-marketing or organise a glitzy event. |
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13676.0 | 2023-09-14 00:00:00 UTC | The Zacks Analyst Blog Highlights Apple, Technology Select Sector SPDR Fund, Vanguard Information Technology ETF, MSCI Information Technology Index ETF and iShares US Technology ETF | AAPL | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-technology-select-sector-spdr-fund-vanguard | For Immediate Release
Chicago, IL – September 14, 2023 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks and ETFs recently featured in the blog include: Apple AAPL, Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW.
Here are highlights from Wednesday’s Analyst Blog:
Apple ETFs in Focus Post-iPhone 15 Launch
At its annual California launch event, Apple revealed a suite of devices, catching the eye of its vast consumer base and the global tech community. The event took an unexpected turn in terms of pricing, with Apple maintaining its price range for most products, the notable exception being iPhone Max.
The event came just a few days after China imposed a ban on government officials using iPhones at work, leading to a sharp drop in Apple's market value by almost $200 billion. While Chinese pressure on Apple is a concern, it is expected to have a limited impact (read: What Lies Ahead for Apple ETFs After iPhone Use Ban?).
Given this, ETFs having the largest allocation to the tech giant are in focus. Technology Select Sector SPDR Fund, Vanguard Information Technology ETF, MSCI Information Technology Index ETF and iShares US Technology ETF have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Insights Into the Features of the New Devices
iPhone 15 Series: Apple introduced its latest range of smartphones, including iPhone 15, iPhone 15 Plus, iPhone 15 Pro and iPhone 15 Pro Max. The new set of iPhones is available in pink, yellow, green, blue, and black color options with 6.1 and 6.7-inch displays. The standout feature of this series is the shift to USB-C charging ports, adhering to new European Union regulations aimed at reducing e-waste. The revamped AirPods Pro will also sport this USB-C port.
iPhone 15 features a Super Retina XDR display and A16 Bionic chip, while iPhone 15 Pro introduces titanium construction and an A17 Pro chip. iPhone 15 starts at $799, with the iPhone 15 Plus slightly pricier at $899. For those seeking premium features, iPhone 15 Pro and Pro Max are priced at $999 and $1,199, respectively. Customers can start preordering from Sep 15, with the official release slated for Sep 22 (see:all the Technology ETFs here).
Apple Watch Innovations: The Apple Watch family saw new additions, including the Apple Watch Series 9 and the upscale Apple Watch Ultra 2. Both are available for pre-order now. While Apple Watch SE is available at a competitive rate of $249, Series 9 is priced at $399. Ultra 2 starts at $799.
The Apple Watch Series 9 boasts significant improvements, featuring the new S9 chip that Apple claims is 60% faster, coupled with a 30% faster GPU. Notably, new features include health data access with Siri, Name Drop for sharing information with nearby users, and Double Tap for watch control. In a move toward sustainability, Apple declared the Apple Watch Series 9 as its pioneer carbon-neutral product, showcasing the company’s commitment to the environment.
ETFs in Focus
Technology Select Sector SPDR Fund
Technology Select Sector SPDR Fund targets the broad technology sector and follows the Technology Select Sector Index. It holds about 65 securities in its basket, with Apple making up 21.8% share. Technology Select Sector SPDR Fund is the most popular and heavily traded ETF, with AUM of $50.3 billion and an average daily volume of 6 million shares. The fund charges 10 bps in fees per year.
Vanguard Information Technology ETF
Vanguard Information Technology ETF manages about $52.5 billion in its asset base and provides exposure to 323 technology stocks. It currently tracks the MSCI US Investable Market Information Technology 25/50 Index. Here, Apple accounts for a 22.7% share. Vanguard Information Technology ETF has an expense ratio of 0.10%, while volume is solid at nearly 541,000 shares (read: Don't Fear Higher Rates: Tech ETFs to Rule on Nvidia & Allies).
MSCI Information Technology Index ETF
MSCI Information Technology Index ETF is home to 311 technology stocks with AUM of $7.2 billion. It follows the MSCI USA IMI Information Technology Index. Apple accounts for a 22.3% allocation. MSCI Information Technology Index ETF has an expense ratio of 0.08%, while volume is solid at 226,000 shares a day.
iShares US Technology ETF
iShares Dow Jones US Technology ETF tracks the Russell 1000 Technology RIC 22.5/45 Capped Index, giving investors exposure to 135 U.S. electronics, computer software and hardware, and informational technology companies. Apple makes up 17.5% of the assets. iShares Dow Jones US Technology ETF has AUM of $11.2 billion and charges 40 bps in fees and expenses. Volume is good as it exchanges 912,000 shares a day.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks and ETFs recently featured in the blog include: Apple AAPL, Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. The event came just a few days after China imposed a ban on government officials using iPhones at work, leading to a sharp drop in Apple's market value by almost $200 billion. | Stocks and ETFs recently featured in the blog include: Apple AAPL, Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Technology Select Sector SPDR Fund, Vanguard Information Technology ETF, MSCI Information Technology Index ETF and iShares US Technology ETF have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). | Stocks and ETFs recently featured in the blog include: Apple AAPL, Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Technology Select Sector SPDR Fund, Vanguard Information Technology ETF, MSCI Information Technology Index ETF and iShares US Technology ETF have Apple as the top or second firm with a double-digit allocation and carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). | Stocks and ETFs recently featured in the blog include: Apple AAPL, Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, MSCI Information Technology Index ETF FTEC and iShares US Technology ETF IYW. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Fidelity MSCI Information Technology Index ETF (FTEC): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Apple Watch Innovations: The Apple Watch family saw new additions, including the Apple Watch Series 9 and the upscale Apple Watch Ultra 2. |
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13737.0 | 2023-09-13 00:00:00 UTC | Better Growth Stock: Apple vs. Microsoft | AAPL | https://www.nasdaq.com/articles/better-growth-stock%3A-apple-vs.-microsoft-1 | As the world's first and second most valuable companies by market capitalization, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are favorites on Wall Street. The tech giants have a long history of delivering consistent growth, with both companies' annual revenue rising by over 48% since 2018. Meanwhile, their stocks have climbed more than 200% in that period.
In 2023, Apple and Microsoft have made investors bullish with expansions into high-growth markets such as artificial intelligence (AI) and virtual/augmented reality (VR/AR). Despite potential macroeconomic headwinds, these companies have solid long-term outlooks thanks to their dominance in tech. As a result, it's not a bad idea to grow your portfolio by adding shares in Apple or Microsoft.
However, before you go all in on one of these companies, make the most of your investment by finding out which is the better buy. So, let's look at whether you're better off with Apple or Microsoft's stock.
Apple: Concerns over future sales in China
Shares in Apple tumbled about 6% in the first week of September after reports that China had banned government workers from using iPhones amid growing tensions with the U.S. The country is Apple's third-largest market, accounting for 18% of its total revenue in fiscal 2022. Consequently, a potential expansion of these regulations to the public caused panic among stockholders.
However, the dip may be overdone, creating an investment opportunity. On Friday, Morgan Stanley analyst Erik Woodring said that he believes China is unlikely to roll out these restrictions nationwide. And if it did, Apple's revenue would dip by 4%, with earnings per share down 3%. Meanwhile, JPMorgan similarly said that based on the material impact of past restrictions by China, it does expect this change to affect "consumer purchasing behavior."
Moreover, Apple is quickly expanding its digital services business, which allows it to lean less on product sales. Its services segment is the second-highest earning part of its business, with revenue rising 8% year over year in the second quarter of 2023. Its growth is outpacing iPhone revenue, strengthening Apple's earnings potential over the long term. Additionally, expanding ventures into AI, fintech, and VR/AR could further bolster Apple's business in the coming years.
Microsoft: A lucrative lead in AI
Microsoft's stock has climbed 40% year to date, steadily becoming one of the biggest names in AI. The company invested $1 billion in ChatGPT developer OpenAI in 2019, which granted Microsoft exclusive licenses on several of the start-up's AI models. As a result, the Windows company has brought AI upgrades to several of its services, including Word, Excel, Bing, and Azure.
Microsoft's swift rise in the industry has led it to announce that its AI venture could hit $10 billion in revenue faster than any of its other businesses did. The tech giant is home to a large library of potent brands, which thousands of businesses worldwide have come to rely on regularly. Meanwhile, AI-enabled releases in its Microsoft 365 Office suite will likely help countless companies adopt the technology in their daily workflows.
Microsoft has a lucrative opportunity in AI, combining its popular productivity platforms with OpenAI's technology. The company's revenue rose 7% year over year to $212 billion in its fiscal 2023 (ended in June). The growth was driven by a 9% increase in productivity and business-processes revenue, and a 17% boost in its intelligent cloud segment. Both divisions are heavily expanding in AI, giving Microsoft solid prospects in the industry.
Is Apple or Microsoft the better buy?
Apple and Microsoft are solid growth stocks, allowing investors to profit from the ever-evolving nature of the tech industry. However, Microsoft appears to be the more reliable option for now. As a software-first company, Microsoft is thriving amid a current AI boom as its cloud business and productivity platforms attract millions of users.
Meanwhile, Apple has experienced three consecutive quarters of revenue declines, burdened by reduced spending in its product segments during poor economic conditions. A large portion of Apple's research and development spending is owed to AI. However, the company has yet to carve out a solid position in the industry.
Furthermore, the iPhone company's issues in China are unlikely to affect its business significantly. However, with a potential recession still on investors' minds, investing in a software titan like Microsoft might be a safer bet. As a result, if you're having trouble deciding between these tech giants, Microsoft is the better stock this month and an excellent long-term investment.
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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. | As the world's first and second most valuable companies by market capitalization, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are favorites on Wall Street. Meanwhile, JPMorgan similarly said that based on the material impact of past restrictions by China, it does expect this change to affect "consumer purchasing behavior." As a software-first company, Microsoft is thriving amid a current AI boom as its cloud business and productivity platforms attract millions of users. | As the world's first and second most valuable companies by market capitalization, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are favorites on Wall Street. Its growth is outpacing iPhone revenue, strengthening Apple's earnings potential over the long term. Microsoft: A lucrative lead in AI Microsoft's stock has climbed 40% year to date, steadily becoming one of the biggest names in AI. | As the world's first and second most valuable companies by market capitalization, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are favorites on Wall Street. So, let's look at whether you're better off with Apple or Microsoft's stock. Microsoft: A lucrative lead in AI Microsoft's stock has climbed 40% year to date, steadily becoming one of the biggest names in AI. | As the world's first and second most valuable companies by market capitalization, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are favorites on Wall Street. So, let's look at whether you're better off with Apple or Microsoft's stock. Its services segment is the second-highest earning part of its business, with revenue rising 8% year over year in the second quarter of 2023. |
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13755.0 | 2023-09-12 00:00:00 UTC | Should Schwab U.S. Large-Cap ETF (SCHX) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-schwab-u.s.-large-cap-etf-schx-be-on-your-investing-radar-2 | Launched on 11/03/2009, the Schwab U.S. Large-Cap ETF (SCHX) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Charles Schwab. It has amassed assets over $33.92 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.45%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 28.10% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.96% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 28.06% of total assets under management.
Performance and Risk
SCHX seeks to match the performance of the Dow Jones U.S. Large-Cap Total Stock Market Index before fees and expenses. The Dow Jones U.S. Large-Cap Total Stock Market measures all U.S. equity securities with readily available prices. The index includes approximately the largest 750 stocks and is float-adjusted market-capitalization weighted.
The ETF has added about 18.43% so far this year and was up about 11.67% in the last one year (as of 09/12/2023). In the past 52-week period, it has traded between $42.25 and $54.21.
The ETF has a beta of 1.01 and standard deviation of 18.19% for the trailing three-year period, making it a medium risk choice in the space. With about 757 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab U.S. Large-Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SCHX is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $350.62 billion in assets, SPDR S&P 500 ETF has $413.19 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
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 6.96% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Launched on 11/03/2009, the Schwab U.S. Large-Cap ETF (SCHX) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market. | Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.96% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Sector Exposure and Top Holdings While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. | Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.96% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives Schwab U.S. Large-Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.96% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Launched on 11/03/2009, the Schwab U.S. Large-Cap ETF (SCHX) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market. |
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13813.0 | 2023-09-11 00:00:00 UTC | 1 Super Stock Set to Join Apple and Microsoft in the $2 Trillion Club | AAPL | https://www.nasdaq.com/articles/1-super-stock-set-to-join-apple-and-microsoft-in-the-%242-trillion-club | Fool.com contributor Parkev Tatevosian highlights one super stock that is close to reaching a coveted milestone.
*Stock prices used were the afternoon prices of Sept. 7, 2023. The video was published on Sept. 9, 2023.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Parkev Tatevosian, CFA has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his 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. | Fool.com contributor Parkev Tatevosian highlights one super stock that is close to reaching a coveted milestone. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. If you choose to subscribe through his link, he will earn some extra money that supports his channel. | 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 September 5, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Parkev Tatevosian, CFA has positions in Alphabet and Apple. | 10 stocks we like better than Alphabet When our analyst team has a stock tip, it can pay to listen. 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 September 5, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. | *Stock prices used were the afternoon prices of Sept. 7, 2023. Parkev Tatevosian, CFA has positions in Alphabet and Apple. His opinions remain his own and are unaffected by The Motley Fool. |
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13832.0 | 2023-09-10 00:00:00 UTC | Wall St Week Ahead-Investor hopes for US soft landing ride on inflation data | AAPL | https://www.nasdaq.com/articles/wall-st-week-ahead-investor-hopes-for-us-soft-landing-ride-on-inflation-data-0 | By David Randall
NEW YORK, Sept 8 (Reuters) - U.S. stock investors are turning their focus to next week’s inflation data, which could determine the near-term path of an equity rally that has wobbled in recent weeks.
Signs the U.S. economy is on track for a so-called soft landing, where the Federal Reserve is able to bring down inflation without badly damaging growth, have helped power the S&P 500’s .SPX 16% year-to-date gain.
Last week’s employment data played into that narrative, showing the job market remained robust, though not strong enough to spark worries that the Fed would need to hike interest rates more to fight inflation, moves that rocked markets last year.
Consumer price data next week may need to strike a similar balance, investors said. Too high a number could fan fears of the Fed leaving interest rates higher for longer or hiking them more in coming months. That would give investors less reason to hold onto stocks after a tech-led drop in which the S&P 500 lost about 5% from summer highs.
"This inflation demon is far from being destroyed," said Michael Purves, head of Tallbacken Capital Advisors, who expects signs of higher inflation will weigh on the multiples of megacap growth names that have powered the rally. "If we're hitting a structural shift with higher nominal GDP growth, that will come with some volatility and unintended consequences."
Investors trying to assess future Fed policy will watch other data in the coming week too, including a reading of the producer price index and retail sales.
The U.S. central bank is widely expected to hold benchmark rates steady at its Sept. 20 meeting. Markets are also pricing in a nearly 44% chance of a rate hike at the Fed’s Nov. meeting, up from 28% a month ago.
"If we get a high inflation print we will see those expectations pick right up" for September and November, said Randy Frederick, managing director of trading and derivatives for the Schwab Center for Financial Research.
OPTIMISTIC, BUT CAUTIOUS
Strategists and investors currently have largely held faith in the market despite stocks’ recent wobble. Some, though, are growing more cautious.
Reasons for optimism include the relative outperformance of the U.S. economy compared to Europe and China, and signs the so-called profit recession among S&P 500 companies may be over.
Still, worries over an economic slowdown in China and concerns that U.S. corporate margins will shrink have led some market participants to believe squeezing more gains out of stocks will grow more difficult.
The S&P 500 Information Technology sector lost more than 2% this week following news that Beijing had ordered central government employees to stop using iPhones for work. Apple AAPL.O shares fell 6% for the week on fears the company and its suppliers could take a hit from rising competition from China's Huawei.
"We think we are still in a bull market that will hit new highs before the end of the year, but it will be a choppy road," said Ed Clissold, Chief U.S. Strategist at Ned Davis Research.
The S&P 500 is down about 5% from its July highs, which has made stock valuations broadly more attractive given the low possibility of an imminent recession, said Jonathan Golub, senior equity strategist at Credit Suisse Securities.
Forward price to earnings multiples for 10 out of the 11 sector groups of the S&P 500 fell in August, he noted, though the P/E for the index as a whole remains near 20, compared with 17 at the end of 2022.
Still, much of the bull case for stocks hinges on softer inflation eventually pushing the Fed to lower interest rates.
"If we saw a further material rise in interest rates, the equity market would not take that well," said David Lefkowitz, head of U.S. equities at UBS Global Wealth Management.
(Reporting by David Randall; Editing by Ira Iosebashvili and David Gregorio)
(([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. | Apple AAPL.O shares fell 6% for the week on fears the company and its suppliers could take a hit from rising competition from China's Huawei. Signs the U.S. economy is on track for a so-called soft landing, where the Federal Reserve is able to bring down inflation without badly damaging growth, have helped power the S&P 500’s .SPX 16% year-to-date gain. "If we get a high inflation print we will see those expectations pick right up" for September and November, said Randy Frederick, managing director of trading and derivatives for the Schwab Center for Financial Research. | Apple AAPL.O shares fell 6% for the week on fears the company and its suppliers could take a hit from rising competition from China's Huawei. Last week’s employment data played into that narrative, showing the job market remained robust, though not strong enough to spark worries that the Fed would need to hike interest rates more to fight inflation, moves that rocked markets last year. Too high a number could fan fears of the Fed leaving interest rates higher for longer or hiking them more in coming months. | Apple AAPL.O shares fell 6% for the week on fears the company and its suppliers could take a hit from rising competition from China's Huawei. By David Randall NEW YORK, Sept 8 (Reuters) - U.S. stock investors are turning their focus to next week’s inflation data, which could determine the near-term path of an equity rally that has wobbled in recent weeks. Last week’s employment data played into that narrative, showing the job market remained robust, though not strong enough to spark worries that the Fed would need to hike interest rates more to fight inflation, moves that rocked markets last year. | Apple AAPL.O shares fell 6% for the week on fears the company and its suppliers could take a hit from rising competition from China's Huawei. By David Randall NEW YORK, Sept 8 (Reuters) - U.S. stock investors are turning their focus to next week’s inflation data, which could determine the near-term path of an equity rally that has wobbled in recent weeks. Last week’s employment data played into that narrative, showing the job market remained robust, though not strong enough to spark worries that the Fed would need to hike interest rates more to fight inflation, moves that rocked markets last year. |
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13842.0 | 2023-09-09 00:00:00 UTC | 2 Vanguard ETFs That Could Turn $200 per Month Into $395,000 or More | AAPL | https://www.nasdaq.com/articles/2-vanguard-etfs-that-could-turn-%24200-per-month-into-%24395000-or-more | Investing in the stock market is one of the most effective ways to build long-term wealth, but you'll need the right investments to maximize your earnings.
There's no single correct way to invest; everyone will have unique preferences and risk tolerance. If you're looking for a low-maintenance investment that requires next to no effort on your part, an exchange-traded fund (ETF) could be a smart option.
An ETF contains dozens or even hundreds of stocks, all bundled together into a single investment. This not only provides diversification and lowers your risk, but it also means you don't have to spend time researching and buying individual stocks.
While there are countless ETFs to choose from, these two Vanguard ETFs could turn just $200 per month into $395,000 or more.
1. Vanguard S&P 500 ETF
The Vanguard S&P 500 ETF (NYSEMKT: VOO) tracks the S&P 500 index. It includes stocks from 500 of the largest and strongest companies in the U.S., ranging from tech giants like Apple and Amazon to well-established brands like 3M and Procter & Gamble.
S&P 500 ETFs are among the safest types of investments, perfect for risk-averse investors. The index itself has a decades-long history of surviving even the worst market crashes and recessions, so it's extremely likely this ETF will recover from future volatility as well.
Despite its relative safety, this fund could also help you earn a lot of money over time. Historically, the S&P 500 itself has earned an average rate of return of around 10% per year, meaning the annual highs and lows have averaged out to roughly 10% per year over decades.
If you're investing $200 per month while earning a 10% average annual return, here's approximately how much you could accumulate over time depending on how many years you invest:
NUMBER OF YEARS TOTAL SAVINGS
20 $137,000
25 $236,000
30 $395,000
35 $650,000
40 $1,062,000
Data source: Author's calculations via Investor.gov.
To reach $395,000 in total savings, you'll need to invest consistently for 30 years. But if you're able to invest more per month or give your investments more time to grow, you could earn substantially more, potentially even reaching $1 million.
2. Vanguard Growth ETF
The Vanguard Growth ETF (NYSEMKT: VUG) contains 235 stocks from a wide variety of industries. Although around half of the fund is made up of stocks from the tech sector, this ETF still provides plenty of diversification that can help limit your risk.
The biggest difference between a growth ETF and an S&P 500 ETF is that a growth ETF contains stocks with the potential to earn above-average returns. While an S&P 500 ETF is designed to follow the market, a growth ETF is designed to beat the market.
This particular ETF, though, can help maximize your returns while still reducing risk. Around half of the fund is made up of blue chip stocks (such as Apple, Amazon, and Microsoft), while the other half is made up of stocks from up-and-coming companies.
While smaller stocks tend to carry more risk, they also have greater potential for explosive growth. Meanwhile, the behemoth blue chip stocks might see slower growth, but they're also far less risky.
Over the past 10 years, the Vanguard Growth ETF has earned an average rate of return of just under 15% per year. But to play it safe, let's assume your investment only earns a 12% average annual return. If you're investing $200 per month, here's approximately how much that could add up to over time:
NUMBER OF YEARS TOTAL SAVINGS
20 $173,000
25 $320,000
30 $579,000
35 $1,036,000
40 $1,841,000
Data source: Author's calculations via Investor.gov.
If you invest consistently for 30 years, you could accumulate around $579,000, compared to $395,000 with the S&P 500 ETF. And with just a few more years, you could nearly double your total earnings.
Which ETF is right for you?
Whether you choose to invest in the S&P 500 ETF, the growth ETF, or both depends on your personal preferences.
Growth ETFs are inherently riskier, because fast-growing stocks tend to be more volatile than their more established counterparts. There are also never any guarantees in the stock market, so there's always a chance this type of ETF might not actually beat the market at all.
S&P 500 ETFs are generally safer, but again, they often earn lower returns than a growth ETF. For some people, that's a worthwhile trade-off for an investment that's very likely to recover from downturns and see positive returns over time. But it won't be the right fit for everyone.
Where you choose to invest, then, will depend on your priorities. Both of these ETFs can be fantastic options, and with consistency and a long-term outlook, either one could help you earn hundreds of thousands of dollars or more.
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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. | This not only provides diversification and lowers your risk, but it also means you don't have to spend time researching and buying individual stocks. It includes stocks from 500 of the largest and strongest companies in the U.S., ranging from tech giants like Apple and Amazon to well-established brands like 3M and Procter & Gamble. The index itself has a decades-long history of surviving even the worst market crashes and recessions, so it's extremely likely this ETF will recover from future volatility as well. | Vanguard Growth ETF The Vanguard Growth ETF (NYSEMKT: VUG) contains 235 stocks from a wide variety of industries. Around half of the fund is made up of blue chip stocks (such as Apple, Amazon, and Microsoft), while the other half is made up of stocks from up-and-coming companies. The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard S&P 500 ETF. | Vanguard Growth ETF The Vanguard Growth ETF (NYSEMKT: VUG) contains 235 stocks from a wide variety of industries. The biggest difference between a growth ETF and an S&P 500 ETF is that a growth ETF contains stocks with the potential to earn above-average returns. The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard S&P 500 ETF. | If you're investing $200 per month while earning a 10% average annual return, here's approximately how much you could accumulate over time depending on how many years you invest: Which ETF is right for you? The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard S&P 500 ETF. |
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13881.0 | 2023-09-08 00:00:00 UTC | China stocks fall as investor optimism wanes, yuan weakens | AAPL | https://www.nasdaq.com/articles/china-stocks-fall-as-investor-optimism-wanes-yuan-weakens | SHANGHAI, Sept 8 (Reuters) - China stocks fell on Friday, as investor optimism toward the world's second-largest economy waned after the authorities' stimulus policy, while a weakening yuan pressured the stock market further.
Meanwhile, the Hong Kong stock exchange delayed trading in both the securities and the derivatives markets on Friday morning due to a black rainstorm warning.
** By the midday recess, the blue-chip CSI 300 Index .CSI300 was down 0.8%, while the Shanghai Composite Index .SSEC lost 0.4%.
** Trade numbers on Thursday showed a possible stabilisation in China's downturn, but economists said China's economy is still at risk of missing Beijing's annual growth target of about 5%. Some of the recent easing measures may have little impact on the slowing economy, they added.
** China's yuan weakened to the lowest level since December 2007 on Friday, as the widening services trade deficit and yield gap with other economies, particularly the United States, affected capital flows and trade.
** Most sectors fell, with shares in property developers .CSI000952, energy companies .CSIEN, and media firms .CSI399971 down between 1% and 2.5%.
** Semiconductor shares .CSIH30184 rose 0.8% on the launch of Huawei's Mate 60 Pro+ smartphone, which captured global attention for revealing the Chinese tech firm's success in beating back U.S. sanctions.
** Shenzhen Rongda Photosensitive & Technology Co 300576.SZ jumped nearly 10% to lead the gains, while Semiconductor Manufacturing International Corp (SMIC) 688981 added 0.7%.
** Shares of Apple AAPL.O suppliers fell, following reports that China had widened curbs on use of iPhones by state employees. Luxshare Precision Industry Co 002475.SZ dropped 3.4%.
(Reporting by Shanghai Newsroom; Editing by Janane Venkatraman)
(([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. | ** Shares of Apple AAPL.O suppliers fell, following reports that China had widened curbs on use of iPhones by state employees. Meanwhile, the Hong Kong stock exchange delayed trading in both the securities and the derivatives markets on Friday morning due to a black rainstorm warning. ** Semiconductor shares .CSIH30184 rose 0.8% on the launch of Huawei's Mate 60 Pro+ smartphone, which captured global attention for revealing the Chinese tech firm's success in beating back U.S. sanctions. | ** Shares of Apple AAPL.O suppliers fell, following reports that China had widened curbs on use of iPhones by state employees. SHANGHAI, Sept 8 (Reuters) - China stocks fell on Friday, as investor optimism toward the world's second-largest economy waned after the authorities' stimulus policy, while a weakening yuan pressured the stock market further. ** China's yuan weakened to the lowest level since December 2007 on Friday, as the widening services trade deficit and yield gap with other economies, particularly the United States, affected capital flows and trade. | ** Shares of Apple AAPL.O suppliers fell, following reports that China had widened curbs on use of iPhones by state employees. SHANGHAI, Sept 8 (Reuters) - China stocks fell on Friday, as investor optimism toward the world's second-largest economy waned after the authorities' stimulus policy, while a weakening yuan pressured the stock market further. ** Trade numbers on Thursday showed a possible stabilisation in China's downturn, but economists said China's economy is still at risk of missing Beijing's annual growth target of about 5%. | ** Shares of Apple AAPL.O suppliers fell, following reports that China had widened curbs on use of iPhones by state employees. SHANGHAI, Sept 8 (Reuters) - China stocks fell on Friday, as investor optimism toward the world's second-largest economy waned after the authorities' stimulus policy, while a weakening yuan pressured the stock market further. ** By the midday recess, the blue-chip CSI 300 Index .CSI300 was down 0.8%, while the Shanghai Composite Index .SSEC lost 0.4%. |
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