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100 | 13,937 | 2023-09-07 00:00:00 UTC | Warner Bros. Discovery's (WBD) SAVIOR COMPLEX to Debut on Sep 26 | AAPL | https://www.nasdaq.com/articles/warner-bros.-discoverys-wbd-savior-complex-to-debut-on-sep-26 | null | null | Warner Bros. Discovery WBD announced that the HBO Original three-part documentary series, SAVIOR COMPLEX, is set to debut on Sep 26.
The first episode of the docuseries will be available on Sep 26 at 9 p.m. ET/PT on HBO, followed by episodes two and three airing on Sep 27 at 9 p.m. ET/PT. All three episodes will be available to stream on Max beginning Sep 26.
Directed by the Emmy-winning filmmaker Jackie Jesko and executive produced by Nick Capote, Alex Waterfield and Academy Award winner Roger Ross Williams, SAVIOR COMPLEX delves deeper into the contentious narrative of Renee Bach, a youthful American missionary who felt called by God to establish a charity for undernourished children in Jinja, Uganda.
However, as time passed, disturbing accusations emerged suggesting that Renee was personally providing medical treatment to the ailing children, despite lacking the necessary medical qualifications. In its exploration of Renee's polarizing path, the series also raises broader inquiries about the concept of white saviorism and moral considerations surrounding foreign aid work conducted in the name of humanitarian and religious ideals.
Warner Bros. Discovery, Inc. Price and Consensus
Warner Bros. Discovery, Inc. price-consensus-chart | Warner Bros. Discovery, Inc. Quote
WBD’s Upcoming Original Content to Fend Off Competition
Warner Bros. Discovery has been focusing on its original content recently. Its upcoming originals are expected to give a tough competition to giants like Netflix NFLX, Apple AAPL and Disney DIS.
Netflix has transformed from its origins as a movie rental service into the premier streaming platform. Some of its upcoming original releases include titles like Lift, Bodies and Choona.
Apple TV Plus is the most budget-friendly premium streaming service, offering an ad-free experience. However, it is distinct from other streaming services because it exclusively offers original content and lacks a library of previously released shows or movies to browse through. Its highly anticipated upcoming original releases are Invasion, Camp Snoopy and Super Models.
Disney has an extensive library which includes Pixar, Marvel and Star Wars movies. These movies regularly bring in original content to the platform. Some of its upcoming original releases include titles like Echo, Ironheart and Wish.
WBD’s Max has a strong selection of content for children, offering better control over content ratings on kids' profiles compared with many other streaming services, which is expected to aid viewer growth in the near term.
This company has an exciting lineup of original content which includes titles like Gentleman Jack, Avenue 5, The Regime, Hellraiser, Snow and Watchmen. This is expected to boost direct-to-consumer (DTC) subscribers and revenues in the upcoming quarters.
The Zacks Consensus Estimate for 2023 total DTC subscribers is pegged at 97,066, indicating year-over-year growth of 1%. The Zacks Consensus Estimate for revenues is pegged at $41.98 billion, indicating year-over-year growth of 24.13%.
Shares of WBD have gained 21.2% year to date compared with the Zacks Consumer Discretionary sector’s rise of 9.4% in the same period due to steady growth in DTC subscribers and revenues in the previous quarters.
However, this Zacks Rank #4 (Sell) company recently guided lower adjusted EBITDA for the full year in the range of $10.5-$11 billion due to the challenges posed by the ongoing strikes in the entertainment industry by the Writers Guild of America and Screen Actors Guild – American Federation of Television and Radio Artists.
This reflects a negative impact of approximately $300 million to $500 million, primarily due to the ongoing strikes affecting the timing and performance of the 2023 film slate and content production.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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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. | Its upcoming originals are expected to give a tough competition to giants like Netflix NFLX, Apple AAPL and Disney DIS. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Warner Bros. Directed by the Emmy-winning filmmaker Jackie Jesko and executive produced by Nick Capote, Alex Waterfield and Academy Award winner Roger Ross Williams, SAVIOR COMPLEX delves deeper into the contentious narrative of Renee Bach, a youthful American missionary who felt called by God to establish a charity for undernourished children in Jinja, Uganda. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Warner Bros. Its upcoming originals are expected to give a tough competition to giants like Netflix NFLX, Apple AAPL and Disney DIS. The Zacks Consensus Estimate for 2023 total DTC subscribers is pegged at 97,066, indicating year-over-year growth of 1%. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Warner Bros. Its upcoming originals are expected to give a tough competition to giants like Netflix NFLX, Apple AAPL and Disney DIS. Discovery, Inc. Quote WBD’s Upcoming Original Content to Fend Off Competition Warner Bros. | Its upcoming originals are expected to give a tough competition to giants like Netflix NFLX, Apple AAPL and Disney DIS. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report Warner Bros. Discovery, Inc. Quote WBD’s Upcoming Original Content to Fend Off Competition Warner Bros. | 4 |
101 | 13,948 | 2023-09-06 00:00:00 UTC | NVDA Stock: Nvidia Is Becoming the New Bitcoin | AAPL | https://www.nasdaq.com/articles/nvda-stock%3A-nvidia-is-becoming-the-new-bitcoin | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This article is an excerpt from the InvestorPlace Digest newsletter. To get news like this delivered straight to your inbox, click here.
Nvidia’s (NASDAQ:NVDA) second-quarter results on Aug. 23 should have been a triumph for AI enthusiasts. The Silicon Valley chipmaker beat revenue estimates by 20.3% and net profits by 29.5%. These stunning figures would ordinarily send any stock soaring. Or at least give bulls some hope for future earnings growth.
But investors would have been disappointed on both counts. Nvidia’s stock rose less than 1% over the following week — a tiny fraction of what bulls might have expected. And instead of future developments, Nvidia’s management announced a $25 billion stock buyback program. These programs are typically designed to shrink companies and boost earnings per share once growth begins to slow. Apple (NASDAQ:AAPL), for instance, started its share buyback program in 2013 just as iPhone profits reached a downward inflection point.
Instead, the real winners of Nvidia’s boom have been options traders… or at least its market makers. These speculators often care little about what an underlying company does. As long as the underlying asset promises to move in a predictable direction, these gamblers are more than happy to buy in. Activity in Nvidia’s options has risen eightfold since 2021, and InvestorPlace.com contributor Michael Gayed has gone as far as to call Nvidia a “source of liquidity” — a term usually reserved for either the Federal Reserve or “The Bank of Mom and Dad.”
This isn’t the first time a new technology has become a zero-sum betting game. In 2017, Bitcoin (BTC-USD) became a de facto casino after its futures were listed on the highly liquid Chicago Mercantile Exchange. Over $50 trillion in Bitcoin has since changed hands despite the crypto’s inability to find many real-world uses. Japanese real estate in the 1990s and Chinese tech stocks of the 2000s share many similarities. At the height of the 2008 and 2014 Chinese stock market bubbles, many day traders admitted to only knowing their investments by their six-digit tickers. As the mystique of artificial intelligence grows, Nvidia’s shares risk falling into the same trap.
Castles in the Sky
First, it’s important to note that Nvidia has some significant differences from cryptocurrencies. The former is a business that generates cash flow; analysts expect Nvidia to generate up to $30 billion in free cash flow this year. The chipmaker is also a picks-and-shovels play on artificial intelligence, a field with fewer established alternatives to crypto payments. Meanwhile, Bitcoin and other cryptos typically generate no internal cash flows. (Cash generated from staking is more like money-lending). Real-world adoption of these coins also remains limited to a handful of companies and super-fans.
But Nvidia and Bitcoin also share a lot in common.
Consider valuation. Today, Nvidia’s $1.13 trillion valuation represents a 240X multiple of trailing earnings, making it the most expensive tech stock based on normalized figures. Even if the chipmaker raises its net income 8X from $4.37 billion to $37.96 billion by fiscal 2026, the company would have to keep increasing that figure by 7.3% per year for the next two decades to justify its current share price of $470.
As for its lofty $622 Wall Street price target? Nvidia will have to generate $145 billion of free cash flow by 2042 to justify that valuation, 2.5X more than what Microsoft (NASDAQ:MSFT) makes today.
There’s also growing evidence that traders are piling into NVDA stock to gamble. According to Fintel, net gamma exposure to Nvidia’s stock reached as high as $636.61 earlier this week after speculators bought an enormous number of bullish call options. For every 1% Nvidia’s stock price rises, market makers will now lose roughly $636.61 million, compared to $0 in 2022. The entire market capitalization of Nvidia now also turns over once every 30 days, compared to 65-80 days in previous years.
That makes Nvidia more like Bitcoin than a promising semiconductor stock. As Josh Enomoto notes on our free news site, InvestorPlace.com, target prices are getting driven ever higher by credulous Wall Street analysts.
Management Knows Nvidia Isn’t Worth $1.13 Trillion
Nvidia’s management clearly understands the disconnect. During the company’s Q2earnings call chief financial officer Colette Kress announced that the board approved an additional $25 billion for stock repurchases to add to its remaining $4 billion authorization. The firm also returned roughly $3.4 billion to shareholders during the quarter through share repurchases and dividends. To them, it’s more important to return cash to shareholders at high valuations than it is to hold onto a large war chest.
This tells us that management has little use for the excess cash that the AI gold rush is creating. Nvidia is a fabless chip designer that outsources its production to third-party providers. Unlike Intel (NASDAQ:INTC), Nvidia does not need to spend billions on creating “fab” chip factories. It also sees little potential to acquire future growth, like what Advanced Micro Devices (NASDAQ:AMD) did in its $49 billion acquisition of networking giant Xilinx.
But speculators seem to care little for such truths. To them, Nvidia is an investment in AI. And the only direction it can go is up.
According to data from Refinitiv, open interest for bullish call options has exploded in recent weeks. The number of $500 calls due January 2024 has risen more than 175%, even as Nvidia’s stock has flatlined. These risky bets pay nothing unless the stock rises above $500 by early next year.
Bitcoin saw similarly bullish bets during its 2021 run. Futures contracts for the cryptocurrency traded as high as $65,900 toward the bubble’s peak as investors continued expecting more gains. That story ended as most bubbles do.
What Is Nvidia Stock Worth?
Realistic estimates now peg Nvidia’s justified value at around $350 per share. This assumes that its free cash flow peaks in 2026 at $52.5 billion before declining to $42.5 billion by 2046 as competitors eat away at the lower end of the market. These figures are still well above Intel’s peak earnings power in the 2010s.
There’s also a great deal of potential downside. If companies like Microsoft and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) successfully develop in-house GPUs, Nvidia’s free cash flow could recede to the $5 billion to $10 billion range, sending the stock’s justified value into the $200 range. And if free cash flow collapses back to 2020-22 levels, NVDA stock could sink as low as $110.
Of course, none of this matters in the short term. The chipmaker is riding a tidal wave of positive sentiment, which means its stock could rise to $600… $800… $1,000… or more. Nothing stopped Bitcoin from peaking at a $1.27 trillion valuation, or altcoins from rising even further. We know from history that speculative assets tend to keep going up in the short run.
But when the AI hangover eventually comes, we can expect financial historians to ask the age-old question:
“What were they thinking?”
That’s why investors should view Nvidia’s near-$500 price tag with deep suspicion. Companies like Qualcomm (NASDAQ:QCOM) and Intel trade for roughly a tenth of its valuation from a price-to-earnings standpoint. And though Nvidia is winning the AI revolution so far, history also tells us that no castle in the sky has ever stayed aloft forever.
As of this writing, Tom Yeung held a LONG position in GOOG, GOOGL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Tom Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.
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The post NVDA Stock: Nvidia Is Becoming the New Bitcoin 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 (NASDAQ:AAPL), for instance, started its share buyback program in 2013 just as iPhone profits reached a downward inflection point. Today, Nvidia’s $1.13 trillion valuation represents a 240X multiple of trailing earnings, making it the most expensive tech stock based on normalized figures. According to Fintel, net gamma exposure to Nvidia’s stock reached as high as $636.61 earlier this week after speculators bought an enormous number of bullish call options. | Apple (NASDAQ:AAPL), for instance, started its share buyback program in 2013 just as iPhone profits reached a downward inflection point. And instead of future developments, Nvidia’s management announced a $25 billion stock buyback program. The former is a business that generates cash flow; analysts expect Nvidia to generate up to $30 billion in free cash flow this year. | Apple (NASDAQ:AAPL), for instance, started its share buyback program in 2013 just as iPhone profits reached a downward inflection point. The former is a business that generates cash flow; analysts expect Nvidia to generate up to $30 billion in free cash flow this year. Nvidia will have to generate $145 billion of free cash flow by 2042 to justify that valuation, 2.5X more than what Microsoft (NASDAQ:MSFT) makes today. | Apple (NASDAQ:AAPL), for instance, started its share buyback program in 2013 just as iPhone profits reached a downward inflection point. Meanwhile, Bitcoin and other cryptos typically generate no internal cash flows. Nvidia will have to generate $145 billion of free cash flow by 2042 to justify that valuation, 2.5X more than what Microsoft (NASDAQ:MSFT) makes today. | null |
102 | 13,989 | 2023-09-05 00:00:00 UTC | Dow Analyst Moves: AAPL | AAPL | https://www.nasdaq.com/articles/dow-analyst-moves%3A-aapl-6 | null | null | The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #9 analyst pick. Apple also comes in above the median of analyst picks among the broader S&P 500 index components, claiming the #128 spot out of 500.
Looking at the stock price movement year to date, Apple is showing a gain of 45.8%.
VIDEO: Dow Analyst Moves: AAPL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | VIDEO: Dow Analyst Moves: AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #9 analyst pick. Apple also comes in above the median of analyst picks among the broader S&P 500 index components, claiming the #128 spot out of 500. | VIDEO: Dow Analyst Moves: AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #9 analyst pick. Apple also comes in above the median of analyst picks among the broader S&P 500 index components, claiming the #128 spot out of 500. | VIDEO: Dow Analyst Moves: AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #9 analyst pick. Apple also comes in above the median of analyst picks among the broader S&P 500 index components, claiming the #128 spot out of 500. | VIDEO: Dow Analyst Moves: AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #9 analyst pick. Apple also comes in above the median of analyst picks among the broader S&P 500 index components, claiming the #128 spot out of 500. | null |
103 | 14,006 | 2023-09-04 00:00:00 UTC | Is Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-goldman-sachs-activebeta-world-low-vol-plus-equity-etf-glov-a-strong-etf-right-now-4 | null | null | Designed to provide broad exposure to the World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
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.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
GLOV is managed by Goldman Sachs Funds, and this fund has amassed over $725.20 million, which makes it one of the larger ETFs in the World ETFs. GLOV seeks to match the performance of the GOLDMAN SACHS ACTBT WORLD LW VL PL EQ ID before fees and expenses.
The Goldman Sachs ActiveBeta World Low Vol Plus Equity Index delivers exposure to large and mid-capitalization equity securities of developed market issuers, including the United States.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.25% for this ETF, which makes it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 2.02%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 3.30% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY).
Its top 10 holdings account for approximately 3.3% of GLOV's total assets under management.
Performance and Risk
The ETF has gained about 9.25% and was up about 11.22% so far this year and in the past one year (as of 09/04/2023), respectively. GLOV has traded between $34.82 and $42.10 during this last 52-week period.
The ETF has a beta of 0.76 and standard deviation of 15.50% for the trailing three-year period. With about 396 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares MSCI ACWI ETF (ACWI) tracks MSCI All Country World Index and the Vanguard Total World Stock ETF (VT) tracks FTSE Global All Cap Index. IShares MSCI ACWI ETF has $17.96 billion in assets, Vanguard Total World Stock ETF has $28.86 billion. ACWI has an expense ratio of 0.32% and VT charges 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report
iShares MSCI ACWI ETF (ACWI): ETF Research Reports
Vanguard Total World Stock ETF (VT): ETF Research Reports
To read this article on Zacks.com click here.
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. | When you look at individual holdings, Apple Inc (AAPL) accounts for about 3.30% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. 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. | Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 3.30% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Designed to provide broad exposure to the World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022. | Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 3.30% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Designed to provide broad exposure to the World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022. | When you look at individual holdings, Apple Inc (AAPL) accounts for about 3.30% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022. | null |
104 | 14,011 | 2023-09-03 00:00:00 UTC | 3 Mega-Cap Stocks to Buy in September | AAPL | https://www.nasdaq.com/articles/3-mega-cap-stocks-to-buy-in-september | null | null | Technology stocks have had a historic run in 2023, recovering from a disappointing performance in 2022 that was marked by rapid interest rate hikes and a slowing economy. Momentum turned around sharply for the group in 2023, fueled in large part by an AI-driven rally.
However, the Nasdaq Composite ($NASX) hit a hurdle in mid-July, pressured by a mixed earnings season and the looming prospect of additional rate hikes. But with shares now finding their footing and turning higher from recent lows, it looks like an opportune time to scoop up quality names from the outperforming tech sector.
Backed by strong fundamentals, dividend payouts, and positive analyst sentiments, here are three stocks from the mega-cap tech sector worth adding to your portfolio at current levels.
Microsoft
Gone are the days when Microsoft (MSFT) was just a software company making operating systems for computers. With interests in fields from cloud computing to generative AI, Microsoft's wide-ranging credentials in the tech space are hard to dispute.
Along with the broader market, shares of the $2.43 trillion company have stumbled slightly over the past month. Microsoft stock lost 2.2% during the month of August, just a little wider than the Nasdaq's fall of 2.1% over the same period. Year-to-date, MSFT is now up 37%, edging past a 34% return for the Nasdaq.
www.barchart.com
On the earnings front, Microsoft's numbers for the fiscal fourth quarter surpassed Street expectations. Revenues for the April-June period came in at $56.2 billion, up 8% from the prior year and above the consensus estimate of $55.5 billion. EPS growth was even sharper at 21% YoY to $2.69, which topped the consensus estimate of $2.55. Impressively, the company's EPS has been above Street estimates in four out of the past five quarters.
Meanwhile, Microsoft's prowess in the AI space is well-documented. Recently, news emerged that ChatGPT - the generative platform into which Microsoft has poured billions - surpassed an annual revenue run-rate of $1 billion. Further, ChatGPT recently introduced a version for large businesses which offers “enterprise-grade security and privacy.”
Moreover, Microsoft plans to integrate its generative AI tool Copilot into its suite of Microsoft 365 apps, such as Word and Excel. This provides an additional revenue stream for the company on top of its existing Microsoft 365 subscription fees, reflecting strong pricing power.
With a dividend yield of 0.83%, Microsoft is competitive with its fellow tech peers Alphabet (GOOGL) and Amazon (AMZN). On a forward price/earnings (p/e) basis, Microsoft is trading at 30.08, lower than Amazon at 62.35 but higher than Alphabet at 24.29. On a price/book (p/b) basis, Microsoft is at 11.85 - north of Amazon's 8.26 and Alphabet's 6.42, but not alarmingly so.
Analysts are upbeat about the earnings growth prospects for Microsoft, predicting 12.8% growth for the current quarter and 11.1% for FY 2023.
www.barchart.com
Overall, analysts have handed out a “Strong Buy” rating on the stock, with a mean target price of $383.49. This indicates an upside potential of about 16% from current levels. Out of 35 analysts covering the stock, 29 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, 2 have a “Hold” rating, and 1 has a “Strong Sell” rating.
www.barchart.com
Apple
Next up on our list is the most valuable tech company in the world, with a market cap of $2.93 trillion - Apple (AAPL). The Cupertino-based tech titan has revolutionized consumer behavior over the past couple of decades with industry-leading products such as its iPhone, iPad, Apple Watch, and Macbook, among others. In recent years, the company has also made a significant splash with its subscription services such as Apple Music and Apple Pay.
Apple stock, which has a dividend yield of 0.50%, shed over 4% in August due to a mixed set of numbers for the fiscal third quarter, though it's still up 46% year-to-date.
www.barchart.com
The company reported net sales of $81.8 billion - which surpassed the consensus estimate of $81.69 billion, but marked the third consecutive quarter of declining sales for Apple. Additionally, iPhone sales - Apple's biggest contributor to revenue - fell 2.5% to $39.67 billion, arriving just short of estimates.
However, EPS grew by 5% from the prior year to $1.26, and topped the consensus estimate of $1.19. In fact, EPS has come in above Street expectations in four out of the past five quarters.
That said, the company's moves in the AI space leave a lot to be desired when considering the competition. Although Apple leverages the technology in its digital assistant Siri and in smart photo rendering, it pales in comparison to the scale of its peers. However, it's rumored that the upcoming iPhone 15 (launching this month) will make significant use of AI in Apple's Health App.
Moreover, at the latestearnings conference call Apple CEO Tim Cook revealed that a sizeable portion of its R&D expenses for the year will be allocated towards the development of generative AI solutions. In fact, a recent report by Bloomberg revealed that Apple is developing its own ChatGPT-like AI chatbot, which engineers call “Apple GPT.” However, a product announcement is not expected before 2024.
Since Apple operates along a number of businesses, the closest identifiable peer seems to be Google parent Alphabet. Apple is trading at a forward p/e of 30.99, a tad bit higher than Alphabet's 24.29. The valuation gap narrows when it comes to p/s, with Apple at 7.75 and Alphabet at 6.03. Finally, Apple is trading at a p/cf of 25.95, compared to Alphabet at 17.31.
Looking ahead, analysts are expecting earnings growth of 7.7% for the current quarter, and a decline of nearly 1% for FY 2023.
www.barchart.com
Overall, though, analysts are cautiously optimistic about Apple stock. This is reflected in its “Moderate Buy” rating with a mean target price of $205.07, indicating an upside potential of about 8% from current levels. Out of 29 analysts covering the stock, 18 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, and 8 have a “Hold” rating.
www.barchart.com
Broadcom
How can we conclude our list of mega-cap tech stocks without including a semiconductor company - the lifeblood of any AI operation? Founded in 1961, California-based Broadcom (AVGO) is a global technology company that designs, develops, and supplies semiconductor and infrastructure software solutions.
With a dividend yield of 1.94% and a market cap of $380 billion, Broadcom is the only company on this list that gained ground in August. The stock added 2.7% for the month, bucking a broader negative trend for the Nasdaq - but with the shares pulling back after earnings, there's still an opportunity to pick up AVGO at a discount to its recently set 52-week high.
www.barchart.com
On Thursday night, Broadcom reported net revenues of $8.8 billion for the quarter ended July 30, up roughly 5% from the prior year. EPS grew slightly from the year-ago period to $10.54, and surpassed the consensus estimate of $10.42. Impressively, the company's EPS has surpassed expectations in each of the past five quarters.
Unsurprisingly for a semiconductor company, a significant chunk of Broadcom's business is derived from AI. In fact, Broadcom forecasts revenue of $800 million from its AI-deployed Ethernet switches in 2023, up from $200 million in 2022. More broadly, the company expects to generate 25% of its revenues from generative AI by the end of 2024, compared to 15% now.
On the valuation front, Broadcom carries a premium to some of its chip sector peers. AVGO's forward p/e of 26.03 is higher than both Taiwan Semiconductor (TSM) at 19.47 and Qualcomm (QCOM) at 17.31. On a p/s basis, Broadcom is trading at 10.50 compared to TSM at 6.32 and QCOM at 3.28. Finally, on a p/cf basis, Broadcom is trading at 20.99, compared to TSM at 9.70 and Qualcomm at 14.61.
In terms of earnings growth, analysts expect Broadcom to boost its bottom line by 3.9% and 9.2% in the current quarter and FY 2023, respectively.
www.barchart.com
Analysts remain bullish about the stock, judging by the consensus “Strong Buy” rating. However, given its searing rally so far this year (up 58% YTD), the mean target price of $878.35 is only 0.6% away from current levels.
On the far bullish end of the spectrum, though, the Street-high target price of $1,010 points to an upside potential of more than 15%. Meanwhile, out of 20 analysts covering AVGO, 15 have a “Strong Buy” rating and 5 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. | www.barchart.com Apple Next up on our list is the most valuable tech company in the world, with a market cap of $2.93 trillion - Apple (AAPL). Backed by strong fundamentals, dividend payouts, and positive analyst sentiments, here are three stocks from the mega-cap tech sector worth adding to your portfolio at current levels. Moreover, at the latestearnings conference call Apple CEO Tim Cook revealed that a sizeable portion of its R&D expenses for the year will be allocated towards the development of generative AI solutions. | www.barchart.com Apple Next up on our list is the most valuable tech company in the world, with a market cap of $2.93 trillion - Apple (AAPL). www.barchart.com On the earnings front, Microsoft's numbers for the fiscal fourth quarter surpassed Street expectations. Out of 35 analysts covering the stock, 29 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, 2 have a “Hold” rating, and 1 has a “Strong Sell” rating. | www.barchart.com Apple Next up on our list is the most valuable tech company in the world, with a market cap of $2.93 trillion - Apple (AAPL). Analysts are upbeat about the earnings growth prospects for Microsoft, predicting 12.8% growth for the current quarter and 11.1% for FY 2023. www.barchart.com Overall, analysts have handed out a “Strong Buy” rating on the stock, with a mean target price of $383.49. Out of 35 analysts covering the stock, 29 have a “Strong Buy” rating, 3 have a “Moderate Buy” rating, 2 have a “Hold” rating, and 1 has a “Strong Sell” rating. | www.barchart.com Apple Next up on our list is the most valuable tech company in the world, with a market cap of $2.93 trillion - Apple (AAPL). Analysts are upbeat about the earnings growth prospects for Microsoft, predicting 12.8% growth for the current quarter and 11.1% for FY 2023. www.barchart.com Overall, analysts have handed out a “Strong Buy” rating on the stock, with a mean target price of $383.49. In fact, EPS has come in above Street expectations in four out of the past five quarters. | null |
105 | 14,013 | 2023-09-02 00:00:00 UTC | 2 Spectacular Warren Buffett Stocks to Buy in September | AAPL | https://www.nasdaq.com/articles/2-spectacular-warren-buffett-stocks-to-buy-in-september | null | null | Berkshire Hathaway CEO Warren Buffett turned 93 on Aug. 30, and it would be an understatement to say that he's lived an incredible life. The famous moneyman stands as one of the most successful investors in history, and he's delivered incredible returns for his company's shareholders and has been a source of wisdom and information for millions of people around the globe.
If you're looking to take a page out of the Oracle of Omaha's investing playbook, read on to see why two Motley Fool contributors think buying these Buffett-backed stocks would be a smart move this month.
Buffett's favorite stock -- by far
Keith Noonan: Buffett has said that most people should just invest in an exchange-traded fund that tracks the S&P 500 index for diversified exposure to the stock market. Given that statement, it might come as a surprise to hear that he's not actually a big fan of diversification, at least not for his own company's stock holdings.
Buffett has described diversification as a "protection against ignorance," and his company has actually taken a highly concentrated approach to its equity portfolio composition. With Apple (NASDAQ: AAPL) accounting for roughly 47% of Berkshire Hathaway's total stock holdings, there's little doubt as to which stock is Buffett's favorite. And his incredible vote of confidence in the tech company has paid off big time.
Apple stock is up 230% over the last five years and 600% since Berkshire began buying shares in the company back in the first quarter of 2016. More so than any other stock in its portfolio, Apple has played a driving role in pushing Berkshire to market-beating performance over the last seven years.
The tech giant is one of the world's most profitable companies, and much of its earnings power stems from its dominant position in the mobile market. The company's iPhone now accounts for 55% of the U.S. smartphone market and 45% of total global revenue in the category. Even more staggering, Apple's iPhone lines are capturing approximately 85% of total operating profits made on all smartphones sold around the world.
Apple's dominance in the mobile market has also helped it launch and expand a highly profitable software and services segment, accounting for roughly 26% of the company's $81.8 billion in total revenue last quarter. The company isn't resting on its laurels either.
The tech leader will be launching augmented reality glasses and generative artificial intelligence applications in the not-too-distant future and is reportedly working on a smart car. Buffett's massive investment in the stock makes it clear that the famously successful investor is excited about the tech leader's future.
A master in profits
Parkev Tatevosian: One of my favorite Warren Buffett stocks to buy right now is Mastercard (NYSE: MA). The payment services company has a few characteristics that attract my attention: excellent profitability and a competitive advantage. Additionally, the stock is not trading at a prohibitively expensive valuation. Coincidentally, these are characteristics Warren Buffett also appreciates.
Let's start with Mastercard's profitability. In the last decade, its operating profit margin has averaged 54.5%. That rate of profitability is near the top of the charts for businesses worldwide. Mastercard can generate this margin because of the asset-lite business model. It spent decades developing the merchant and buyer network and is now reaping the benefits of years of effort.
That brings me to my next point: its competitive advantage. Any rival wishing to encroach on Mastercard's business cannot do so quickly. Visa, the other big financial services company with similar size and scale, has chosen not to compete against Mastercard on price. This stable business environment allows Mastercard to focus on serving its customers while earning robust profits.
MA PE Ratio (Forward 1y) data by YCharts. PE Ratio = price-to-earnings ratio.
Of course, that sounds great, but if the stock were expensive, it would not be as attractive as an investment. Thankfully, Mastercard is trading at a forward price-to-earnings ratio of 28.4, which, in my opinion, is a fair price for an excellent business like Mastercard.
Apple and Mastercard have strong competitive advantages
Much of Buffett's investing success through the years can be traced to the importance he's placed on backing companies with sustainable competitive advantages. Both Apple and Mastercard have powerful strengths in their respective industries, and competitors will have a very hard time disrupting their businesses. Building positions in both stocks looks like a smart move for those looking to emulate the Oracle of Omaha's investing style.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Mastercard, and Visa. 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. | With Apple (NASDAQ: AAPL) accounting for roughly 47% of Berkshire Hathaway's total stock holdings, there's little doubt as to which stock is Buffett's favorite. The famous moneyman stands as one of the most successful investors in history, and he's delivered incredible returns for his company's shareholders and has been a source of wisdom and information for millions of people around the globe. Apple's dominance in the mobile market has also helped it launch and expand a highly profitable software and services segment, accounting for roughly 26% of the company's $81.8 billion in total revenue last quarter. | With Apple (NASDAQ: AAPL) accounting for roughly 47% of Berkshire Hathaway's total stock holdings, there's little doubt as to which stock is Buffett's favorite. Apple's dominance in the mobile market has also helped it launch and expand a highly profitable software and services segment, accounting for roughly 26% of the company's $81.8 billion in total revenue last quarter. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Mastercard, and Visa. | With Apple (NASDAQ: AAPL) accounting for roughly 47% of Berkshire Hathaway's total stock holdings, there's little doubt as to which stock is Buffett's favorite. Buffett's favorite stock -- by far Keith Noonan: Buffett has said that most people should just invest in an exchange-traded fund that tracks the S&P 500 index for diversified exposure to the stock market. Apple and Mastercard have strong competitive advantages Much of Buffett's investing success through the years can be traced to the importance he's placed on backing companies with sustainable competitive advantages. | With Apple (NASDAQ: AAPL) accounting for roughly 47% of Berkshire Hathaway's total stock holdings, there's little doubt as to which stock is Buffett's favorite. Thankfully, Mastercard is trading at a forward price-to-earnings ratio of 28.4, which, in my opinion, is a fair price for an excellent business like Mastercard. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Mastercard, and Visa. | 4 |
106 | 14,016 | 2023-09-01 00:00:00 UTC | Surging Stocks That Can Keep Taking Market Share | AAPL | https://www.nasdaq.com/articles/surging-stocks-that-can-keep-taking-market-share | null | null | Taking market share is crucial for companies and their stocks as a large market cap has numerous advantages.
Large-cap companies can secure cheaper financing and have a consistent stream of revenue while capitalizing on the recognition of their brand. This allows a company to operate on a greater scale which can increase profitability in correlation with economies of scale.
Typically for stocks, large-cap companies are valued at $10 billion or higher and tend to have the greatest trading liquidity. Higher trading liquidity allows large-cap stocks to be traded on the stock market quickly, without having a significant effect on their price.
Furthermore, market cap allows investors to compare the size, growth potential, income, and risk of different companies.
Let’s take a look at a few surging stocks that may be able to keep taking market share and boost investors' portfolios.
Technology Leaders with a Large Market Share
With this year’s surge in tech stocks, there are a number of companies that are retaining or growing their hefty valuations.
It's hard to not have this conversation without mentioning Apple AAPL or Nvidia NVDA with a market cap of roughly $3 trillion and $1.2 trillion respectively.
Apple is the highest-valued company on U.S. stock exchanges with Nvidia the fifth largest and continuing to take market share among chipmakers. Nvidia’s market cap is now 122% above the Zacks Semiconductor-General Markets' $54.82 billion average which alludes to why NVDA shares have kept climbing over the years.
Image Source: Zacks Investment Research
Nvidia currently sports a Zacks Rank #1 (Strong Buy) and has soared +223% this year. More astonishing, NVDA shares are now up 12,000% over the last decade and this somewhat unending stellar performance could continue with Nvidia’s chips powering the AI revolution.
As for Apple, its stock has climbed +43% this year and currently lands a Zacks Rank #3 (Hold). Of course, Apple can only fall out of the top spot in terms of market cap but the company’s $48 billion cash pile is indicative of the benefits of taking market share. Furthermore, with a pipeline of famous tech products Apple stock is up +963% in the last 10 years and is usually a viable option for longer-term investors.
Image Source: Zacks Investment Research
A Retail Company Poised to Take Market-Cap
Looking at smaller companies that may be on their way to taking market share or eventually achieving large-cap status is always beneficial. This could correlate with lofty stock market gains and Urban Outfitters URBN stands out in this regard.
With a Zacks Rank #1 (Strong Buy), Urban Outfitters is a popular fashion retailer that caters its apparel and merchandise to younger generations. Urban Outfitters has shown signs of taking market cap in the past hitting a peak of $6.25 billion back in 2018.
While Urban Outfitters' market cap is currently at $3 billion, we can see from the chart below that this is now on par with its Zacks industry further suggesting the company is a sound investment in the space and may have a chance at being a disrupter (and has already been so).
Image Source: Zacks Investment Research
Plus, Urban Outfitters' steady growth is reason to believe it might be taking real market share along the way. Urban Outfitters' stock has climbed +39% YTD as earnings are forecasted to pop 82% in its current fiscal 2024 to $3.18 a share compared to $1.75 per share a year ago.
More importantly to seeing continued brand growth, sales are expected to be up 6% in FY24 and rise another 4% in FY25 to $5.30 billion. Better still, FY25 sales projections would represent 55% growth over the last five years with FY21 sales at $3.45 billion.
Image Source: Zacks Investment Research
Bottom Line
Taking market share puts companies in a position to offer shareholders unprecedented returns in regard to their stocks. This makes keeping an eye on a stock's market cap beneficial to investors as well. To that point, Apple, Nvidia, and Urban Outfitters are three stocks to watch.
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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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It's hard to not have this conversation without mentioning Apple AAPL or Nvidia NVDA with a market cap of roughly $3 trillion and $1.2 trillion respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report To read this article on Zacks.com click here. Technology Leaders with a Large Market Share With this year’s surge in tech stocks, there are a number of companies that are retaining or growing their hefty valuations. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report To read this article on Zacks.com click here. It's hard to not have this conversation without mentioning Apple AAPL or Nvidia NVDA with a market cap of roughly $3 trillion and $1.2 trillion respectively. Image Source: Zacks Investment Research Nvidia currently sports a Zacks Rank #1 (Strong Buy) and has soared +223% this year. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report To read this article on Zacks.com click here. It's hard to not have this conversation without mentioning Apple AAPL or Nvidia NVDA with a market cap of roughly $3 trillion and $1.2 trillion respectively. Image Source: Zacks Investment Research A Retail Company Poised to Take Market-Cap Looking at smaller companies that may be on their way to taking market share or eventually achieving large-cap status is always beneficial. | It's hard to not have this conversation without mentioning Apple AAPL or Nvidia NVDA with a market cap of roughly $3 trillion and $1.2 trillion respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report To read this article on Zacks.com click here. Nvidia’s market cap is now 122% above the Zacks Semiconductor-General Markets' $54.82 billion average which alludes to why NVDA shares have kept climbing over the years. | 4 |
107 | 14,028 | 2023-08-31 00:00:00 UTC | Arm prepares to meet investors ahead of blockbuster IPO -sources | AAPL | https://www.nasdaq.com/articles/arm-prepares-to-meet-investors-ahead-of-blockbuster-ipo-sources | null | null | By Anirban Sen
NEW YORK, Aug 31 (Reuters) - Arm Holdings Ltd plans to launch its roadshow for investors after Labor Day, as the chip designer prepares for its much-anticipated initial public offering (IPO) in September, according to people familiar with the matter.
Arm, owned by SoftBank Group Corp , is expected to set a price range for its offering next week, the sources said, adding the company plans to price its shares on Sept. 13, with stock trading to start the following day.
SoftBank plans to sell about 10% of Arm's shares in the IPO at a valuation of $60 billion to $70 billion, Reuters has previously reported. SoftBank decided to sell fewer Arm shares in the IPO after buying the 25% stake in Arm it did not directly own from its Vision Fund unit.
Several customers of Arm have held talks about taking a piece of the IPO including Apple , Amazon.com , Intel , Nvidia , Alphabet , Microsoft , Samsung Electronics and TSMC , Reuters has previously reported. Arm and SoftBank have set aside 10% of the shares to be sold in the IPO for its clients.
A successful IPO for Arm would be a boon for SoftBank, which in August reported its third consecutive quarterly loss, hit by declines in valuations of major holdings such as Chinese e-commerce firm Alibaba Group , German telecommunications company Deutsche Telekom and U.S. wireless carrier T-Mobile U.S. .
Goldman Sachs Group , JPMorgan Chase , Barclays and Mizuho Financial Group are the lead underwriters for the offering. Arm's shares will be listed on the Nasdaq and trade under the ticker symbol 'ARM'.
Bloomberg reported on Arm's IPO timeline earlier on Thursday. (Reporting by Anirban Sen in New York; Editing by David Gregorio) ((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters Messaging: Signal/Telegram/Whatsapp - +1-646-705-9409)) Keywords: ARM IPO/
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Anirban Sen NEW YORK, Aug 31 (Reuters) - Arm Holdings Ltd plans to launch its roadshow for investors after Labor Day, as the chip designer prepares for its much-anticipated initial public offering (IPO) in September, according to people familiar with the matter. Several customers of Arm have held talks about taking a piece of the IPO including Apple , Amazon.com , Intel , Nvidia , Alphabet , Microsoft , Samsung Electronics and TSMC , Reuters has previously reported. A successful IPO for Arm would be a boon for SoftBank, which in August reported its third consecutive quarterly loss, hit by declines in valuations of major holdings such as Chinese e-commerce firm Alibaba Group , German telecommunications company Deutsche Telekom and U.S. wireless carrier T-Mobile U.S. . | By Anirban Sen NEW YORK, Aug 31 (Reuters) - Arm Holdings Ltd plans to launch its roadshow for investors after Labor Day, as the chip designer prepares for its much-anticipated initial public offering (IPO) in September, according to people familiar with the matter. Arm, owned by SoftBank Group Corp , is expected to set a price range for its offering next week, the sources said, adding the company plans to price its shares on Sept. 13, with stock trading to start the following day. SoftBank plans to sell about 10% of Arm's shares in the IPO at a valuation of $60 billion to $70 billion, Reuters has previously reported. | SoftBank plans to sell about 10% of Arm's shares in the IPO at a valuation of $60 billion to $70 billion, Reuters has previously reported. SoftBank decided to sell fewer Arm shares in the IPO after buying the 25% stake in Arm it did not directly own from its Vision Fund unit. A successful IPO for Arm would be a boon for SoftBank, which in August reported its third consecutive quarterly loss, hit by declines in valuations of major holdings such as Chinese e-commerce firm Alibaba Group , German telecommunications company Deutsche Telekom and U.S. wireless carrier T-Mobile U.S. . | By Anirban Sen NEW YORK, Aug 31 (Reuters) - Arm Holdings Ltd plans to launch its roadshow for investors after Labor Day, as the chip designer prepares for its much-anticipated initial public offering (IPO) in September, according to people familiar with the matter. Arm, owned by SoftBank Group Corp , is expected to set a price range for its offering next week, the sources said, adding the company plans to price its shares on Sept. 13, with stock trading to start the following day. SoftBank plans to sell about 10% of Arm's shares in the IPO at a valuation of $60 billion to $70 billion, Reuters has previously reported. | 4 |
108 | 14,058 | 2023-08-30 00:00:00 UTC | Will A New $1,200 iPhone Help Apple Vendors Like Jabil Stock? | AAPL | https://www.nasdaq.com/articles/will-a-new-%241200-iphone-help-apple-vendors-like-jabil-stock | null | null | Our Theme of Apple Component Supplier Stocks, which includes a diverse set of companies that supply components for Apple’s devices, has gained about 12% year-to-date, underperforming the S&P 500 which remains up by 15% and Apple stock (NASDAQ: AAPL), which has gained about 40% year-to-date. Now, Apple’s recent performance has actually been pretty mixed. Over Q3 FY’23, the most recently reported quarter, the company saw overall revenues shrink year-over-year, as demand for core computing products including the iPhone, iPad, and Mac fell as tailwinds seen through Covid-19 eased. Major suppliers like Jabil and Qorvo have seen revenue decline or flatten year-over-year.
Notably, AAPL stock had a Sharpe Ratio of 1.1 since early 2017, which is higher than the figure of 0.6 for the S&P 500 Index over the same period. Compare this with the Sharpe of 1.2 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
That being said, there are some near-term positives for the theme. Apple is slated to unveil its next-generation iPhones sometime in early September. The new smartphone is expected to feature meaningful upgrades and possibly design changes versus the iPhone 14, boding well for suppliers from a component content per-device perspective. Multiple reports indicate that Apple will raise pricing on the Pro devices by $100 to $200 this time around, implying that prices for Apple’s flagship phones will start at as much as $1,200. This is long overdue, given that Apple has held the starting price of its premium devices at $1,000 over the last six years. Higher average iPhone prices should give suppliers some more room to negotiate better deals with Apple. Separately, the supply chain issues faced by semiconductor players through Covid-19 is also easing, and this could also help the theme.
Within our theme, Jabil stock (NYSE:JBL), a company known for making casings for Apple’s iDevices, has been the strongest performer, rising by about 67% year-to-date. On the other side, Texas Instruments (NASDAQ:TXN) – which supplies semiconductor components for the iPhone – has been one of the weaker performers with its stock up by just about 3% year-to-date.
Returns Aug 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
AAPL Return -8% 39% 522%
S&P 500 Return -3% 15% 98%
Trefis Reinforced Value Portfolio -6% 29% 563%
[1] Month-to-date and year-to-date as of 8/29/2023
[2] Cumulative total returns since the end of 2016
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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. | Our Theme of Apple Component Supplier Stocks, which includes a diverse set of companies that supply components for Apple’s devices, has gained about 12% year-to-date, underperforming the S&P 500 which remains up by 15% and Apple stock (NASDAQ: AAPL), which has gained about 40% year-to-date. Notably, AAPL stock had a Sharpe Ratio of 1.1 since early 2017, which is higher than the figure of 0.6 for the S&P 500 Index over the same period. Total [2] AAPL Return -8% 39% 522% S&P 500 Return -3% 15% 98% Trefis Reinforced Value Portfolio -6% 29% 563% [1] Month-to-date and year-to-date as of 8/29/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Our Theme of Apple Component Supplier Stocks, which includes a diverse set of companies that supply components for Apple’s devices, has gained about 12% year-to-date, underperforming the S&P 500 which remains up by 15% and Apple stock (NASDAQ: AAPL), which has gained about 40% year-to-date. Total [2] AAPL Return -8% 39% 522% S&P 500 Return -3% 15% 98% Trefis Reinforced Value Portfolio -6% 29% 563% [1] Month-to-date and year-to-date as of 8/29/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Notably, AAPL stock had a Sharpe Ratio of 1.1 since early 2017, which is higher than the figure of 0.6 for the S&P 500 Index over the same period. | Our Theme of Apple Component Supplier Stocks, which includes a diverse set of companies that supply components for Apple’s devices, has gained about 12% year-to-date, underperforming the S&P 500 which remains up by 15% and Apple stock (NASDAQ: AAPL), which has gained about 40% year-to-date. Total [2] AAPL Return -8% 39% 522% S&P 500 Return -3% 15% 98% Trefis Reinforced Value Portfolio -6% 29% 563% [1] Month-to-date and year-to-date as of 8/29/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Notably, AAPL stock had a Sharpe Ratio of 1.1 since early 2017, which is higher than the figure of 0.6 for the S&P 500 Index over the same period. | Our Theme of Apple Component Supplier Stocks, which includes a diverse set of companies that supply components for Apple’s devices, has gained about 12% year-to-date, underperforming the S&P 500 which remains up by 15% and Apple stock (NASDAQ: AAPL), which has gained about 40% year-to-date. Notably, AAPL stock had a Sharpe Ratio of 1.1 since early 2017, which is higher than the figure of 0.6 for the S&P 500 Index over the same period. Total [2] AAPL Return -8% 39% 522% S&P 500 Return -3% 15% 98% Trefis Reinforced Value Portfolio -6% 29% 563% [1] Month-to-date and year-to-date as of 8/29/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 4 |
109 | 14,076 | 2023-08-29 00:00:00 UTC | Stocks Rally on Improved Prospects for a Pause in Fed Rate Hikes | AAPL | https://www.nasdaq.com/articles/stocks-rally-on-improved-prospects-for-a-pause-in-fed-rate-hikes | null | null | What you need to know…
The S&P 500 Index ($SPX) (SPY) Tuesday closed up +1.45%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.85%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +2.15%.
Stocks on Tuesday moved higher throughout the day, with the S&P 500 posting a 2-1/2 week high, the Dow Jones Industrials posting a 1-1/2 week high, and the Nasdaq 100 posting a 3-week high. Stocks rallied after weaker-than-expected U.S. economic news Tuesday on July JOLTS job openings and August consumer confidence knocked bond yields lower and bolstered the prospects for the Fed to pause its rate hike campaign.
A rally in the Shanghai Composite by more than +1% Tuesday also provided some carryover support to global bourses on hopes that an increase in stimulus measures by China will bolster confidence in its markets. Bloomberg reported that China is poised to cut interest rates on trillions of yuan of outstanding home mortgages for the first time since the global financial crisis. Also, Bloomberg reported that Chinese state-owned banks will soon cut deposit rates for the third time in a year to boost their margins.
The U.S. Jun S&P CoreLogic composite-20 home price index rose +0.92% m/m and fell -1.17% y/y, stronger than expectations of +0.80% m/m and -1.60% y/y.
The U.S. Jul JOLTS job openings fell -338,000 to a nearly 2-1/2 year low of 8.827 million, weaker than expectations of 9.500 million.
The Conference Board U.S. Aug consumer confidence index fell -7.9 to 106.1, weaker than expectations of 116.0.
Bitcoin (^BTCUSD) rallied more than +7% to a 1-1/2 week high after Greyscale Investments LLC won a legal fight in its push to launch a Bitcoin exchange-traded fund. A U.S. appeals court overturned a decision by the SEC to block Grayscale Investments from starting a Bitcoin ETF, which paves the way for the first Bitcoin ETF and may spark a flurry of brokerage firms and wealth management companies from filing applications to start their own Bitcoin ETFs.
The markets are discounting the odds at 14% for a +25 bp rate hike at the September 20 FOMC meeting and 51% for that +25 bp rate hike at the November 1 FOMC meeting.
Global bond yields on Tuesday moved lower. The 10-year T-note yield fell to a 2-week low of 4.104% and finished down -9.0 bp at 4.112%. The 10-year German bund yield fell -5.5 bp at 2.510%. The 10-year UK gilt yield fell -1.9 bp to 4.422%.
Overseas stock markets Tuesday settled higher. The Euro Stoxx 50 closed up +0.76%. China’s Shanghai Composite Index closed up +1.20%. Japan’s Nikkei Stock Index closed up +0.18%.
Today’s stock movers…
Alphabet (GOOGL) closed up more than +2%, and Nvidia (NVDA) closed up more than +3% after Alphabet announced new AI infrastructure and software as part of an expanded partnership with Nvidia.
Mega-cap technology stocks rallied Tuesday to lift technology stocks and the broader market. Tesla (TSLA) closed up more than +7% to lead gainers in the S&P 500. Also, Apple (AAPL) and Meta Platforms (META) closed up more than +2%. In addition, Amazon.com (AMZN) and Microsoft (MSFT) closed up more than +1%.
A decline in the 10-year T-note yield to a 2-week low on Tuesday sparked a rally in chip stocks. As a result, On Semiconductor (ON) closed up more than +4%. Also, Advanced Micro Devices (AMD), Applied Materials (AMAT), Broadcom (AVGO), Globalfoundries (GFS), and NXP Semiconductors NV (NXPI) closed up more than +3%. In addition, Intel (INTC), Lam Research (LRCX), KLA Corp (KLAC), and Microchip Technology (MCHP) closed up more than +2%.
Catalent (CTLT) closed up more than +4% after it said its board had established a committee to review its business, strategy, and capital-allocation priorities to maximize long-term value.
Verizon Communications (VZ) closed up more than +3% to lead gainers in the Dow Jones Industrials after Citigroup upgraded the stock to buy from neutral.
PDD Holdings (PDD) closed up more than +15% to lead gainers in the Nasdaq 100 after reporting Q2 revenue of 52.28 billion yuan, well above the consensus of 43.28 billion yuan.
AT&T (T) closed up more than +3% after Citigroup upgraded the stocks to buy from neutral with a price target of $17.
Best Buy (BBY) closed up more than +3% after it said a sales slump in consumer electronics and household appliances is starting to show signs of easing.
JM Smucker (SJM) closed up more than +2% after reporting Q1 adjusted EPS of $2.21, better than the consensus of $2.04, and raising its 2024 adjusted EPS forecast to $9.45-$9.85 from a prior view of $9.20-$9.60, stronger than the consensus of $9.44.
Paccar (PCAR) closed down more than -2% to lead losers in the S&P 500 and Nasdaq 100 after a FreightWaves report said results from major trucking lender Bank of Montreal showed a deterioration in the credit rating of its trucking customers. Cummins (CMI) closed down more than -1% on the news.
Norfolk Southern (NSC) closed down more than -1% after it said it expects a now-resolved hardware-related technology outage to impact its rail operations for at least a couple of weeks.
Heico (HEI) closed down more than -1 % after reporting Q3 Ebitda of $179.8 million, below the consensus of $181.2 million.
Across the markets…
September 10-year T-notes (ZNU23) Tuesday closed up +22 ticks, and the 10-year T-note yield fell -9.0 bp to 4.112%. Sep T-notes Tuesday rallied to a 2-week high, and the 10-year T-note yield dropped to a 2-week low of 4.104%. Weaker-than-expected U.S. economic news Tuesday on Jul JOLTS job openings and Aug consumer confidence are dovish for Fed policy and sparked a rally in T-notes. Also, easing inflation expectations are bullish for T-notes after the 10-year breakeven inflation rate Tuesday declined to a 5-week low of 2.274%.
T-note prices raced to their highs Tuesday afternoon on signs of strong demand for the Treasury’s $36 billion auction of 7-year T-note. The auction had a bid-to-cover ratio of 2.66, well above the 10-auction average of 2.49 and a sign of exceptional demand.
More Stock Market News from Barchart
Dollar Under Pressure as Weak U.S. Economic May Prompt a Fed Pause
Crude Rallies on Dollar Weakness and China Stimulus
Nat-Gas Prices Fall Back on a Mixed U.S. Weather Forecast
3 Retailers Hitting 52-Week High: Care to Guess Which Is the Buy?
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Also, Apple (AAPL) and Meta Platforms (META) closed up more than +2%. Stocks rallied after weaker-than-expected U.S. economic news Tuesday on July JOLTS job openings and August consumer confidence knocked bond yields lower and bolstered the prospects for the Fed to pause its rate hike campaign. A rally in the Shanghai Composite by more than +1% Tuesday also provided some carryover support to global bourses on hopes that an increase in stimulus measures by China will bolster confidence in its markets. | Also, Apple (AAPL) and Meta Platforms (META) closed up more than +2%. Stocks rallied after weaker-than-expected U.S. economic news Tuesday on July JOLTS job openings and August consumer confidence knocked bond yields lower and bolstered the prospects for the Fed to pause its rate hike campaign. Weaker-than-expected U.S. economic news Tuesday on Jul JOLTS job openings and Aug consumer confidence are dovish for Fed policy and sparked a rally in T-notes. | Also, Apple (AAPL) and Meta Platforms (META) closed up more than +2%. What you need to know… The S&P 500 Index ($SPX) (SPY) Tuesday closed up +1.45%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.85%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +2.15%. Stocks rallied after weaker-than-expected U.S. economic news Tuesday on July JOLTS job openings and August consumer confidence knocked bond yields lower and bolstered the prospects for the Fed to pause its rate hike campaign. | Also, Apple (AAPL) and Meta Platforms (META) closed up more than +2%. Stocks on Tuesday moved higher throughout the day, with the S&P 500 posting a 2-1/2 week high, the Dow Jones Industrials posting a 1-1/2 week high, and the Nasdaq 100 posting a 3-week high. PDD Holdings (PDD) closed up more than +15% to lead gainers in the Nasdaq 100 after reporting Q2 revenue of 52.28 billion yuan, well above the consensus of 43.28 billion yuan. | 4 |
110 | 14,101 | 2023-08-28 00:00:00 UTC | Is Schwab Fundamental U.S. Large Company Index ETF (FNDX) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-schwab-fundamental-u.s.-large-company-index-etf-fndx-a-strong-etf-right-now-8 | null | null | The Schwab Fundamental U.S. Large Company Index ETF (FNDX) made its debut on 08/13/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
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.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Charles Schwab. It has amassed assets over $11.61 billion, making it one of the larger ETFs in the Style Box - Large Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the Russell RAFI US Large Co. Index.
The Russell RAFI US Large Company Index measures the performance of the large company size segment by fundamental overall company scores.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for this ETF are 0.25%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.95%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 18.40% of the portfolio. Financials and Healthcare round out the top three.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.77% of the fund's total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB).
FNDX's top 10 holdings account for about 20.85% of its total assets under management.
Performance and Risk
The ETF has added roughly 8.15% so far this year and it's up approximately 4.35% in the last one year (as of 08/28/2023). In the past 52-week period, it has traded between $47.76 and $59.78.
The fund has a beta of 1.01 and standard deviation of 17.15% for the trailing three-year period, which makes FNDX a medium risk choice in this particular space. With about 733 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental U.S. Large Company Index 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 $49.88 billion in assets, Vanguard Value ETF has $100.20 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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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, Apple Inc (AAPL) accounts for about 4.77% of the fund's total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $11.61 billion, making it one of the larger ETFs in the Style Box - Large Cap Value. | Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.77% of the fund's total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). Alternatives Schwab Fundamental U.S. Large Company Index 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 Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.77% of the fund's total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). The Schwab Fundamental U.S. Large Company Index ETF (FNDX) made its debut on 08/13/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market. | Taking into account individual holdings, Apple Inc (AAPL) accounts for about 4.77% of the fund's total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRKB). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The Schwab Fundamental U.S. Large Company Index ETF (FNDX) made its debut on 08/13/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market. | 4 |
111 | 14,104 | 2023-08-27 00:00:00 UTC | Trust the Oracle: 3 Warren Buffett Stocks to Buy for Long-Term Gains | AAPL | https://www.nasdaq.com/articles/trust-the-oracle%3A-3-warren-buffett-stocks-to-buy-for-long-term-gains | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Warren Buffett is undoubtedly one of the greatest investors of all time.
The Berkshire Hathaway (NYSE:BRK-B) CEO has one of the best long-term investing track records and seen as a guru among many in the investing community.
This stellar track record means many investors follow Buffett’s buying activity closely. As a steadfast buy-and-hold advocate, his recent moves raise interest. Though he’s trimmed holdings in sectors facing challenges, his remaining holdings reveal where the Oracle of Omaha wants to be positioned right now.
Certainly, independent research is essential. Relying on a single individual or source is unwise. Still, Buffett’s extensive experience counts. As far as his current portfolio holdings are concerned, here are three stocks I think are worth consideration as long-term picks, particularly if any material declines are seen moving forward.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) stock is a staple in many hedge funds due to its strong, consistent growth, high margins, and loyal customer base. Its closed-loop ecosystem further solidifies its position as a safe, long-term investment.
Predicting Apple’s stock direction is challenging, yet investors have historically benefited, unlike short sellers. After earnings, AAPL’s decline results from overly high expectations. Despite claims, Apple’s iPhone sales only dropped 2.4%, considering inflation. Additionally, its $81.8 billion revenue was down just 1% and matched Wall Street’s estimate.
In Q3 2023, Apple’s revenue dipped by 1.4%, and MacBook sales fell by 7%. However, services revenue surged by 8% to $21.2 billion sequentially. That’s the most important factor that concerns most long-term investors, as Apple continues to transition from a mainly hardware maker to a services company.
Given the company continues to move in the right direction (with a solid balance sheet), Apple remains a top defensive option in the world of mega-cap tech worth buying now.
Occidental Petroleum (OXY)
Source: T. Schneider / Shutterstock.com
Buffett continues to increase his investment in Occidental Petroleum (NYSE:OXY), owning almost 25% of the company’s stock, valued at around $12 billion. His optimism in Occidental’s future, including its transition to sustainable energy, warrants attention. This move could also yield short-term gains due to volatile oil markets affected by production disputes among major countries.
It’s important to highlight that Occidental is among the energy players showing strong growth and profitability. Its diversification also shouldn’t be overlooked, with divisions like OxyChem contributing in a big way to the company’s record earnings before interest and tax (EBIT) of $2.5 billion in 2022. If these diversified operational segments can continue to outperform, Occidental may become a different discussion among many investors.
Buffett expresses optimism about Occidental’s future, praising its leadership’s strategic vision earlier this year. He reassures investors of the company’s potential and competent management during a May shareholder meeting. With OXY stock trading around the $61 level, and at a price-earnings ratio of around 10-times, this is a stock worth loading up on right now, in my view.
Bank of America (BAC)
Source: PL Gould / Shutterstock.com
Amid uncertainties in the banking sector, Buffett has scaled back on bank stocks like Bank of New York Mellon (NYSE:BK) and U.S. Bancorp (NYSE:USB), but he maintained his holdings in Bank of America (NYSE:BAC).
Despite caution, he endorsed Bank of America at a shareholder meeting, highlighting his confidence in its management. His stake is valued at over $32 billion, around 13% of the company, reflecting his trust in the bank’s strength and market position.
The company’s Q2 results showcased robust operations and a strong balance sheet. Bank of America gained $7.4 billion post-tax, representing 21% year-over-year earnings per share growth. Earnings excelled across segments, with the company’s consumer segment seeing its 18th positive new account quarter, adding 157,000 customers. Impressively, the lender’s Global Wealth division added 12,000 new relationships.
Bank of America exceeded expectations in both earnings per share and revenue, driven by rising interest rates on loans. Despite slowing loan growth, its resilience and long-term potential are notable.
On the date of publication, Chris MacDonald has a LONG position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) stock is a staple in many hedge funds due to its strong, consistent growth, high margins, and loyal customer base. After earnings, AAPL’s decline results from overly high expectations. On the date of publication, Chris MacDonald has a LONG position in AAPL. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) stock is a staple in many hedge funds due to its strong, consistent growth, high margins, and loyal customer base. After earnings, AAPL’s decline results from overly high expectations. On the date of publication, Chris MacDonald has a LONG position in AAPL. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) stock is a staple in many hedge funds due to its strong, consistent growth, high margins, and loyal customer base. After earnings, AAPL’s decline results from overly high expectations. On the date of publication, Chris MacDonald has a LONG position in AAPL. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) stock is a staple in many hedge funds due to its strong, consistent growth, high margins, and loyal customer base. After earnings, AAPL’s decline results from overly high expectations. On the date of publication, Chris MacDonald has a LONG position in AAPL. | 1 |
112 | 14,110 | 2023-08-26 00:00:00 UTC | Is Trouble Brewing for 3M Investors? | AAPL | https://www.nasdaq.com/articles/is-trouble-brewing-for-3m-investors | null | null | I think there's good reason to believe industrial giant 3M's (NYSE: MMM) full-year sales outlook could be under significant pressure, and management could, yet again, miss its full-year expectations based on its initial guidance. There is an investment case for buying the stock, but it makes sense to weigh the risks and rewards before investing money.
Why 3M could miss its sales guidance
There are three interconnected reasons why investors need to be cautious about the matter:
Having started the year forecasting full-year organic sales to decline 3% to being flat on 2022, management told investors (in late July) that it now expects sales at the "lower end" of the range for 2023. Momentum is against 3M.
China is a key end market for 3M, and the recovery in that country has turned out weaker than many expected going into 2023.
3M's sales are threatened by anecdotal signs of weakness in the industrial sector, notably in key industry verticals it sells into, and the likelihood of industrial companies reducing inventory.
Declining sales momentum and China
The cut in full-year sales expectations (although not a cut in guidance because management said it would likely come in at the lower end of the range) is disappointing, particularly as 3M's management doesn't have a good track record of meeting its sales guidance.
That said, there's little management can do about a deteriorating end-market outlook in 2023, starting with China.
Many industrial companies, including 3M, hoped China's industrial output would bounce back as pandemic-related restrictions were lifted in 2023. The following chart, taken from the official National Bureau of Statistics in China, shows how the bounce occurred in the first quarter but has gradually petered out as the year progressed (a reading above 50 indicates growth). Not only are Chinese purchasing managers reporting a slowdown in conditions (as measured by the purchasing manager index), but also new orders.
That's an issue for 3M because, as CFO Monish Patolawala said on the first-quarterearnings callin April, "our full-year guidance, as I have talked about, assumes overall recovery in all economies in the second half, including China." For reference, the Asia Pacific region contributed nearly 29% of 3M's sales in 2022, significantly larger than Europe, Middle East, and Africa contribution of 17.3%.
Data source: National Bureau of Statistics in China. Chart by author.
Industrial sector and 3M sector-specific weakness
Discussing the reason for the downgrade to expectations on the second-quarterearnings call Patolawala cited a lack of improvement in key end markets like "electronics, consumer retail, industrial, and China."
3M has broad-based exposure to the industrial sector through its sales of abrasives, adhesives/tapes, advanced materials, and electronics materials, with notable exposure to electronics, semiconductors, smartphones, and automotive end markets. In addition, it has exposure to consumer retail through home improvement and home care product sales.
What companies are saying
I want to highlight what two companies recently said about consumer electronics and semiconductors. Cognex (NASDAQ: CGNX) manufactures and sells machine vision systems manufacturers use, and Keysight Technologies (NYSE: KEYS) makes design and test solutions. Both are interesting because they tend to have short-cycle orders that come through when customers ramp up activity.
For example, Apple (a Cognex customer) might order more machine vision equipment to help it ramp up production of phones in the third and fourth quarters ahead of Thanksgiving and Christmas.
Image source: Getty Images.
Cognex's CEO Rob Willett recently told investors of slower manufacturing activity "including Germany and the United States," noting that "customers remain cautious with their capital investments, particularly in consumer electronics and semi where we have seen the steepest decline in demand."
It's a similar story at Keysight, where CEO Satish Dhanasekaran recently said, "Demand was incrementally weaker in Asia this quarter as customers deferred manufacturing-related spending in semiconductor, general electronics, and automotive markets in many cases well into next year."
Meanwhile, rising interest rates continue to pressure U.S. consumer sales in rate-sensitive areas like housing.
A stock to buy?
There's no way to sugarcoat this. The weakness in short-cycle orders at companies like Cognex and Keysight points to near-term issues in some of 3M's key end markets, notably in China. As such, don't be surprised if 3M misses its full-year sales guidance.
Long-term investors shouldn't worry too much, as a few quarters of slowing sales won't matter to the big picture because management is actively restructuring the business and pointing to underlying improvements in its margin profile. Still, end-market conditions will likely worsen before they get better for 3M, which should be factored into investor perceptions of the stock.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That's an issue for 3M because, as CFO Monish Patolawala said on the first-quarterearnings callin April, "our full-year guidance, as I have talked about, assumes overall recovery in all economies in the second half, including China." Cognex's CEO Rob Willett recently told investors of slower manufacturing activity "including Germany and the United States," noting that "customers remain cautious with their capital investments, particularly in consumer electronics and semi where we have seen the steepest decline in demand." It's a similar story at Keysight, where CEO Satish Dhanasekaran recently said, "Demand was incrementally weaker in Asia this quarter as customers deferred manufacturing-related spending in semiconductor, general electronics, and automotive markets in many cases well into next year." | 3M has broad-based exposure to the industrial sector through its sales of abrasives, adhesives/tapes, advanced materials, and electronics materials, with notable exposure to electronics, semiconductors, smartphones, and automotive end markets. Cognex (NASDAQ: CGNX) manufactures and sells machine vision systems manufacturers use, and Keysight Technologies (NYSE: KEYS) makes design and test solutions. The weakness in short-cycle orders at companies like Cognex and Keysight points to near-term issues in some of 3M's key end markets, notably in China. | Why 3M could miss its sales guidance There are three interconnected reasons why investors need to be cautious about the matter: Having started the year forecasting full-year organic sales to decline 3% to being flat on 2022, management told investors (in late July) that it now expects sales at the "lower end" of the range for 2023. Declining sales momentum and China The cut in full-year sales expectations (although not a cut in guidance because management said it would likely come in at the lower end of the range) is disappointing, particularly as 3M's management doesn't have a good track record of meeting its sales guidance. Industrial sector and 3M sector-specific weakness Discussing the reason for the downgrade to expectations on the second-quarterearnings call Patolawala cited a lack of improvement in key end markets like "electronics, consumer retail, industrial, and China." | Declining sales momentum and China The cut in full-year sales expectations (although not a cut in guidance because management said it would likely come in at the lower end of the range) is disappointing, particularly as 3M's management doesn't have a good track record of meeting its sales guidance. Industrial sector and 3M sector-specific weakness Discussing the reason for the downgrade to expectations on the second-quarterearnings call Patolawala cited a lack of improvement in key end markets like "electronics, consumer retail, industrial, and China." * They just revealed what they believe are the ten best stocks for investors to buy right now... and 3M wasn't one of them! | 3 |
113 | 14,123 | 2023-08-25 00:00:00 UTC | Noteworthy Friday Option Activity: ENPH, GS, AAPL | AAPL | https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-enph-gs-aapl | null | null | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Enphase Energy Inc. (Symbol: ENPH), where a total of 56,108 contracts have traded so far, representing approximately 5.6 million underlying shares. That amounts to about 135% of ENPH's average daily trading volume over the past month of 4.2 million shares. Particularly high volume was seen for the $123 strike call option expiring August 25, 2023, with 2,322 contracts trading so far today, representing approximately 232,200 underlying shares of ENPH. Below is a chart showing ENPH's trailing twelve month trading history, with the $123 strike highlighted in orange:
Goldman Sachs Group Inc (Symbol: GS) options are showing a volume of 22,071 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 123.9% of GS's average daily trading volume over the past month, of 1.8 million shares. Especially high volume was seen for the $325 strike call option expiring August 25, 2023, with 1,989 contracts trading so far today, representing approximately 198,900 underlying shares of GS. Below is a chart showing GS's trailing twelve month trading history, with the $325 strike highlighted in orange:
And Apple Inc (Symbol: AAPL) options are showing a volume of 598,562 contracts thus far today. That number of contracts represents approximately 59.9 million underlying shares, working out to a sizeable 105% of AAPL's average daily trading volume over the past month, of 57.0 million shares. Especially high volume was seen for the $175 strike put option expiring August 25, 2023, with 57,740 contracts trading so far today, representing approximately 5.8 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $175 strike highlighted in orange:
For the various different available expirations for ENPH options, GS options, or AAPL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
TIO shares outstanding history
CCXX YTD Return
DISH Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $175 strike put option expiring August 25, 2023, with 57,740 contracts trading so far today, representing approximately 5.8 million underlying shares of AAPL. Below is a chart showing GS's trailing twelve month trading history, with the $325 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 598,562 contracts thus far today. That number of contracts represents approximately 59.9 million underlying shares, working out to a sizeable 105% of AAPL's average daily trading volume over the past month, of 57.0 million shares. | Below is a chart showing GS's trailing twelve month trading history, with the $325 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 598,562 contracts thus far today. That number of contracts represents approximately 59.9 million underlying shares, working out to a sizeable 105% of AAPL's average daily trading volume over the past month, of 57.0 million shares. Especially high volume was seen for the $175 strike put option expiring August 25, 2023, with 57,740 contracts trading so far today, representing approximately 5.8 million underlying shares of AAPL. | That number of contracts represents approximately 59.9 million underlying shares, working out to a sizeable 105% of AAPL's average daily trading volume over the past month, of 57.0 million shares. Below is a chart showing GS's trailing twelve month trading history, with the $325 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 598,562 contracts thus far today. Especially high volume was seen for the $175 strike put option expiring August 25, 2023, with 57,740 contracts trading so far today, representing approximately 5.8 million underlying shares of AAPL. | Especially high volume was seen for the $175 strike put option expiring August 25, 2023, with 57,740 contracts trading so far today, representing approximately 5.8 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $175 strike highlighted in orange: For the various different available expirations for ENPH options, GS options, or AAPL options, visit StockOptionsChannel.com. Below is a chart showing GS's trailing twelve month trading history, with the $325 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 598,562 contracts thus far today. | 4 |
114 | 14,153 | 2023-08-24 00:00:00 UTC | 1 Pricey FAANG Stock Billionaires Are Buying Hand Over Fist and 2 They're Surprisingly Selling | AAPL | https://www.nasdaq.com/articles/1-pricey-faang-stock-billionaires-are-buying-hand-over-fist-and-2-theyre-surprisingly | null | null | As an investor, it's easy to become overwhelmed by the amount of data at your disposal. Corporate earnings releases and economic data make it easy to potentially miss important announcements. On Monday, Aug. 14, one of those important data releases may have slipped below investors' radars.
August 14 marked the last day for fund managers with at least $100 million under management to file Form 13F with the Securities and Exchange Commission. A 13F provides a snapshot of what stocks and exchange-traded funds the top institutional investors and hedge funds were holding in the most recent quarter. In other words, it's a way for everyday investors to see what Wall Street's smartest investors have been buying and selling.
The latest round of 13Fs showed some very interesting buying and selling activity among the popular FAANG stocks.
Image source: Getty Images.
By "FAANG," I'm referring to:
Facebook, which is now a subsidiary of parent Meta Platforms (NASDAQ: META)
Apple (NASDAQ: AAPL)
Amazon (NASDAQ: AMZN)
Netflix (NASDAQ: NFLX)
Google, which is now a subsidiary of parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
Over the trailing decade, the FAANG stocks have vastly outperformed the benchmark S&P 500 and are primarily responsible for the huge rally in the Nasdaq Composite on a year-to-date basis.
These five companies are also leaders within their respective industries. For instance, Meta Platforms owns four of the world's most popular social media destinations (Facebook, WhatsApp, Instagram, and Facebook Messenger), which helped it draw 3.88 billion unique monthly users in the second quarter. Meanwhile, Netflix dominates domestic and international streaming service market share. Buying leaders with impenetrable moats or first-mover advantages has often been a smart move for investors.
However, billionaires have a mixed view of the FAANG stocks -- at least based on recently filed 13Fs. One of the priciest FAANG stocks was an exceptionally popular buy, while two perceived values were pretty aggressively sold by billionaire money managers.
The sensationalist FAANG stock billionaires are buying hand over fist: Apple
Among the five FAANG stocks, the one that billionaire money managers couldn't stop buying in the June-ended quarter is tech giant Apple. All told, a half-dozen billionaire investors piled in, including (number of shares purchased in Q2 listed in parenthesis):
Jim Simons at Renaissance Technologies (4,912,234 shares)
John Overdeck and David Siegel at Two Sigma Investments (1,003,490 shares)
Israel Englander at Millennium Management (559,040 shares)
David Tepper at Appaloosa Management (480,000 shares)
Ken Fisher at Fisher Asset Management (417,648 shares)
Billionaires' love of Apple likely has to do with its brand, innovation, and capital-return program. In terms of the former, Apple is viewed as one of the most recognized and valuable brands in the world. Its exceptionally loyal customer base has translated into big-time sales growth.
With regard to innovation, Apple is delivering from a physical product and subscription services standpoint. The company's iPhone is far and away the leading smartphone sold in the United States. Meanwhile, Apple's services revenue continues to grow by the quarter and should provide a way to minimize sales fluctuations often seen during iPhone replacement cycles.
It also doesn't hurt that Apple has repurchased around $600 billion worth of its stock since the beginning of 2013. A reduced outstanding share count has helped lift Apple's earnings per share over time.
But when push comes to shove, Apple is one of the priciest FAANG stocks. It's trading at roughly 24 times cash flow, yet is fully expected to report a low-single-digit decline in sales and profits for fiscal 2023 (Apple's fiscal year ends in late September). What makes this sales decline even more eye-popping is that inflation has been well above-average. Even with meaningful pricing power and innovation as tailwinds, Apple's growth engine has stalled.
FAANG stock No. 1 billionaire investors are surprisingly selling: Alphabet
On the other side of the aisle, billionaire fund managers were surprising big-time sellers of Alphabet, the parent company of internet search engine Google, streaming platform YouTube, and autonomous vehicle company Waymo. Four prominent billionaires were sellers of Alphabet's Class A shares (GOOGL), including (number of shares sold in Q2 listed in parenthesis):
Chase Coleman at Tiger Global Management (4,551,949 shares)
Dan Loeb at Third Point (3,325,000 shares)
Steven Cohen at Point72 Asset Management (3,299,177 shares)
Ray Dalio at Bridgewater Associates (348,344 shares)
The most logical reason for billionaires to be skeptical of Alphabet in the short term is the company's reliance on advertising for the bulk of its revenue. Though the U.S. economy has proved more resilient than most people expected, numerous economic data points and predictive tools still suggest that a downturn is likely. Advertisers are usually quick to reduce spending at the first signs of weakness, which wouldn't be good news for Alphabet.
However, this is a relatively short-term concern for a company that's cheap and dominating in so many other aspects. For example, internet search engine Google has accounted for no less than 90% of worldwide search share every month for more than eight years. Its moat appears impenetrable, giving the company a rock-solid foundation to generate operating cash flow.
We're also seeing plenty of momentum from Alphabet's operating segments beyond Google. YouTube is the second-most-visited site globally and has seen daily YouTube Short views skyrocket. Meanwhile, Google Cloud has delivered back-to-back quarters of operating profits and controls approximately 9% of the worldwide cloud infrastructure service market share. Keep in mind that enterprise cloud spending is still in its early stages.
Lastly, Alphabet is cheap. Over the past five years, Alphabet's stock has traded at a multiple to cash flow of a little over 18. Investors can buy the stock's Class A shares right now for less than 14 times Wall Street's consensus cash flow for 2024.
Image source: Amazon.
FAANG stock No. 2 billionaire investors are surprisingly selling: Amazon
The second FAANG stock that endured big-time selling pressure from billionaires during the June-ended quarter is e-commerce company Amazon. A whopping 10 prominent billionaire asset managers were busy pressing the sell button, including (number of shares sold in Q2 listed in parenthesis):
Jim Simons at Renaissance Technologies (8,999,016 shares)
Terry Smith at Fundsmith (6,777,831 shares)
Chase Coleman at Tiger Global Management (5,989,891 shares)
Ole Andreas Halvorsen at Viking Global Investors (3,226,907 shares)
Stephen Mandel at Lone Pine Capital (1,709,767 shares)
John Overdeck and David Siegel at Two Sigma Investments (1,443,520 shares)
Israel Englander at Millennium Management (1,159,561 shares)
Steven Cohen at Point72 Asset Management (994,294 shares)
Ken Fisher at Fisher Asset Management (678,708 shares)
As with Alphabet, the likeliest reason for this selling is the expectation of economic weakness. Most of Amazon's revenue derives from its world-leading online marketplace. If the U.S. economy and/or China continue to weaken, consumers may be less willing to open their wallets.
The other issue for Amazon is its valuation. Even looking out to 2024, Amazon is sporting a lofty multiple of 43 times forward earnings.
However, valuing Amazon based solely on its e-commerce marketplace is a terrible idea. Although it's the company's top revenue generator, online retail sales offer very low margins. By comparison, three of Amazon's ancillary segments generate virtually all its operating income -- subscription services, advertising services, and Amazon Web Services (AWS).
Without question, AWS is the most important operating segment for Amazon. Despite only accounting for around a sixth of net sales, AWS is responsible for $10.5 billion out of Amazon's $12.5 billion in operating income through the first six months of 2023. As noted, enterprise cloud service spending has a long growth runway.
Amazon is also historically inexpensive relative to its cash flow. While the price-to-earnings (P/E) ratio is helpful when valuing slow-growing businesses, a company like Amazon, which reinvests most of its operating cash flow, is best valued by analyzing its cash flow. After trading at a year-end multiple of 23 to 37 times cash flow from 2010 through 2019, Amazon looks like an amazing deal at just 12 times forward-year cash flow, based on Wall Street's consensus.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet, Amazon.com, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, and Netflix. 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. | By "FAANG," I'm referring to: Facebook, which is now a subsidiary of parent Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Over the trailing decade, the FAANG stocks have vastly outperformed the benchmark S&P 500 and are primarily responsible for the huge rally in the Nasdaq Composite on a year-to-date basis. One of the priciest FAANG stocks was an exceptionally popular buy, while two perceived values were pretty aggressively sold by billionaire money managers. Meanwhile, Apple's services revenue continues to grow by the quarter and should provide a way to minimize sales fluctuations often seen during iPhone replacement cycles. | By "FAANG," I'm referring to: Facebook, which is now a subsidiary of parent Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Over the trailing decade, the FAANG stocks have vastly outperformed the benchmark S&P 500 and are primarily responsible for the huge rally in the Nasdaq Composite on a year-to-date basis. All told, a half-dozen billionaire investors piled in, including (number of shares purchased in Q2 listed in parenthesis): Jim Simons at Renaissance Technologies (4,912,234 shares) John Overdeck and David Siegel at Two Sigma Investments (1,003,490 shares) Israel Englander at Millennium Management (559,040 shares) David Tepper at Appaloosa Management (480,000 shares) Ken Fisher at Fisher Asset Management (417,648 shares) Billionaires' love of Apple likely has to do with its brand, innovation, and capital-return program. Four prominent billionaires were sellers of Alphabet's Class A shares (GOOGL), including (number of shares sold in Q2 listed in parenthesis): Chase Coleman at Tiger Global Management (4,551,949 shares) Dan Loeb at Third Point (3,325,000 shares) Steven Cohen at Point72 Asset Management (3,299,177 shares) Ray Dalio at Bridgewater Associates (348,344 shares) The most logical reason for billionaires to be skeptical of Alphabet in the short term is the company's reliance on advertising for the bulk of its revenue. | By "FAANG," I'm referring to: Facebook, which is now a subsidiary of parent Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Over the trailing decade, the FAANG stocks have vastly outperformed the benchmark S&P 500 and are primarily responsible for the huge rally in the Nasdaq Composite on a year-to-date basis. All told, a half-dozen billionaire investors piled in, including (number of shares purchased in Q2 listed in parenthesis): Jim Simons at Renaissance Technologies (4,912,234 shares) John Overdeck and David Siegel at Two Sigma Investments (1,003,490 shares) Israel Englander at Millennium Management (559,040 shares) David Tepper at Appaloosa Management (480,000 shares) Ken Fisher at Fisher Asset Management (417,648 shares) Billionaires' love of Apple likely has to do with its brand, innovation, and capital-return program. Four prominent billionaires were sellers of Alphabet's Class A shares (GOOGL), including (number of shares sold in Q2 listed in parenthesis): Chase Coleman at Tiger Global Management (4,551,949 shares) Dan Loeb at Third Point (3,325,000 shares) Steven Cohen at Point72 Asset Management (3,299,177 shares) Ray Dalio at Bridgewater Associates (348,344 shares) The most logical reason for billionaires to be skeptical of Alphabet in the short term is the company's reliance on advertising for the bulk of its revenue. | By "FAANG," I'm referring to: Facebook, which is now a subsidiary of parent Meta Platforms (NASDAQ: META) Apple (NASDAQ: AAPL) Amazon (NASDAQ: AMZN) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Over the trailing decade, the FAANG stocks have vastly outperformed the benchmark S&P 500 and are primarily responsible for the huge rally in the Nasdaq Composite on a year-to-date basis. Corporate earnings releases and economic data make it easy to potentially miss important announcements. However, billionaires have a mixed view of the FAANG stocks -- at least based on recently filed 13Fs. | 4 |
115 | 14,167 | 2023-08-23 00:00:00 UTC | Indexes end sharply higher; AI chip maker Nvidia up ahead of results | AAPL | https://www.nasdaq.com/articles/indexes-end-sharply-higher-ai-chip-maker-nvidia-up-ahead-of-results | null | null | By Caroline Valetkevitch
NEW YORK, Aug 23 (Reuters) - U.S. stocks ended sharply higher on Wednesday as shares of Nvidia NVDA.O gained ahead of quarterly results from the company whose chips are widely used for artificial intelligence (AI) computing.
Investors expect that another strong outlook from Nvidia could fuel a further rally in tech stocks. It is due to report after the closing bell.
Shares of Nvidia rose ahead of the report, adding to recent gains. Its stock is up more than 220% for the year so far.
Adding to Wall Street's upbeat mood, the yield on the 10-year U.S. Treasury note US10YT=RR eased from near 16-year highs after weak business activity data from the United States and the euro zone.
"What's troubled this market has been the persistent rise in rates at the longer end," said Rick Meckler, partner, Cherry Lane Investments, a family investment office in New Vernon, New Jersey.
U.S. Federal Reserve Chair Jerome Powell's comments on Friday at the Jackson Hole conference will be scrutinized for clues on the U.S. central bank's interest rate path.
According to preliminary data, the S&P 500 .SPX gained 48.84 points, or 1.11%, to end at 4,436.39 points, while the Nasdaq Composite .IXIC gained 215.16 points, or 1.59%, to 13,721.03. The Dow Jones Industrial Average .DJI rose 188.50 points, or 0.55%, to 34,477.33.
Nvidia's report and comments will be key to the broad market, Meckler said.
"Not just their numbers, but what they say in the conference call about what's happening in AI is going to have a big impact on market sentiment," he said.
Nvidia is part of the so-called Magnificent Seven group of megacap stocks including Apple AAPL.O and Tesla TSLA.O that have powered the S&P 500's sharp gains this year, and investors fear a selloff if the company fails to meet expectations.
According to strategists in a Reuters poll, the S&P 500 will eke out only marginal gains between now and year end, after its strong move up already this year. The index was forecast to end the year at 4,496.
Shares of drugmakers Gilead Sciences GILD.O and Merck & Co MRK.N advanced after Swiss rival Roche ROG.S inadvertently published positive lung cancer drug trial data.
Nvidia shares soar in 2023 https://tmsnrt.rs/3Pa6Xi0
(Reporting by Caroline Valetkevitch; additonal reporting by Amruta Khandekar and Shristi Achar A; Editing by Shinjini Ganguli, Anil D'Silva and David Gregorio)
((caroline.valetkevitch@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Nvidia is part of the so-called Magnificent Seven group of megacap stocks including Apple AAPL.O and Tesla TSLA.O that have powered the S&P 500's sharp gains this year, and investors fear a selloff if the company fails to meet expectations. By Caroline Valetkevitch NEW YORK, Aug 23 (Reuters) - U.S. stocks ended sharply higher on Wednesday as shares of Nvidia NVDA.O gained ahead of quarterly results from the company whose chips are widely used for artificial intelligence (AI) computing. Adding to Wall Street's upbeat mood, the yield on the 10-year U.S. Treasury note US10YT=RR eased from near 16-year highs after weak business activity data from the United States and the euro zone. | Nvidia is part of the so-called Magnificent Seven group of megacap stocks including Apple AAPL.O and Tesla TSLA.O that have powered the S&P 500's sharp gains this year, and investors fear a selloff if the company fails to meet expectations. Shares of Nvidia rose ahead of the report, adding to recent gains. According to preliminary data, the S&P 500 .SPX gained 48.84 points, or 1.11%, to end at 4,436.39 points, while the Nasdaq Composite .IXIC gained 215.16 points, or 1.59%, to 13,721.03. | Nvidia is part of the so-called Magnificent Seven group of megacap stocks including Apple AAPL.O and Tesla TSLA.O that have powered the S&P 500's sharp gains this year, and investors fear a selloff if the company fails to meet expectations. By Caroline Valetkevitch NEW YORK, Aug 23 (Reuters) - U.S. stocks ended sharply higher on Wednesday as shares of Nvidia NVDA.O gained ahead of quarterly results from the company whose chips are widely used for artificial intelligence (AI) computing. According to preliminary data, the S&P 500 .SPX gained 48.84 points, or 1.11%, to end at 4,436.39 points, while the Nasdaq Composite .IXIC gained 215.16 points, or 1.59%, to 13,721.03. | Nvidia is part of the so-called Magnificent Seven group of megacap stocks including Apple AAPL.O and Tesla TSLA.O that have powered the S&P 500's sharp gains this year, and investors fear a selloff if the company fails to meet expectations. Shares of Nvidia rose ahead of the report, adding to recent gains. Its stock is up more than 220% for the year so far. | 4 |
116 | 14,189 | 2023-08-22 00:00:00 UTC | QQQ vs. RSP : Which Is the Better ETF Investment Now? | AAPL | https://www.nasdaq.com/articles/qqq-vs.-rsp-%3A-which-is-the-better-etf-investment-now-0 | null | null | (1:30) - What Is Driving QQQ Outperformance?
(8:30) - What Could Help Drive Positive Performance For The Rest of The Year?
(13:20) - Has QQQ Become Too Expensive Right Now or Is It Reasonably Priced?
(16:15) - The Innovation Suite: What Kind of R&D Spending Is Happening Right Now Within The QQQ?
(18:05) - The QQQ Rebalancing: Everything Investors Should Know
(26:00) - How Should Investors Be Using These Investment Products?
(29:15) - Invesco S&P 500 Equal Weight ETF: RSP
(33:45) - How Concentrated Is The S&P 500 Right Now?
(37:35) - Why Should Investors Consider Adding RSP To Their Portfolios?
(43:20) - Breaking Down Invesco’s Suite of Equal Weight ETFs
(51:15) - Episode Roundup: QQQ, QQQM, RSP, RSPT, RSPC
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Invesco strategists Paul Schroeder and Chris Dahlin about the ultra-popular Invesco QQQ QQQ, and the S&P 500 Equal Weight ETF RSP.
QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA. From March 10, 1999, to June 30, 2023, the Nasdaq-100 Index, which has become synonymous with growth and innovation, returned over 780%.
However, mega-cap stocks now dominate the popular market-cap benchmarks, leading to concerns about overconcentration of these indexes. Further, we have seen these giants struggle a bit lately, and a wider group of the market is outperforming the largest companies.
RSP, the first smart beta ETF, has significantly outperformed the market- capitalization-weighted S&P 500 since its inception in 2003. The fund has seen a lot of interest from investors this year. With equal-weighting, investors get higher exposure to old economy sectors that are quite attractively valued compared to technology.
The quarterly rebalancing ensures trimming expensive stocks and buying potentially cheaper stocks that have declined in price. Invesco also offers 11 equal-weight sector ETFs, which were rebranded recently.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@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. | QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA. 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 Invesco QQQ (QQQ): ETF Research Reports Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. However, mega-cap stocks now dominate the popular market-cap benchmarks, leading to concerns about overconcentration of these indexes. | QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA. 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 Invesco QQQ (QQQ): ETF Research Reports Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. (43:20) - Breaking Down Invesco’s Suite of Equal Weight ETFs (51:15) - Episode Roundup: QQQ, QQQM, RSP, RSPT, RSPC Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Invesco strategists Paul Schroeder and Chris Dahlin about the ultra-popular Invesco QQQ QQQ, and the S&P 500 Equal Weight ETF RSP. | 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 Invesco QQQ (QQQ): ETF Research Reports Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA. (18:05) - The QQQ Rebalancing: Everything Investors Should Know (26:00) - How Should Investors Be Using These Investment Products? | 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 Invesco QQQ (QQQ): ETF Research Reports Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA. (1:30) - What Is Driving QQQ Outperformance? | 4 |
117 | 14,204 | 2023-08-21 00:00:00 UTC | QQQ vs. RSP : Which Is the Better ETF Investment Now? | AAPL | https://www.nasdaq.com/articles/qqq-vs.-rsp-%3A-which-is-the-better-etf-investment-now | null | null | (1:30) - What Is Driving QQQ Outperformance?
(8:30) - What Could Help Drive Positive Performance For The Rest of The Year?
(13:20) - Has QQQ Become Too Expensive Right Now or Is It Reasonably Priced?
(16:15) - The Innovation Suite: What Kind of R&D Spending Is Happening Right Now Within The QQQ?
(18:05) - The QQQ Rebalancing: Everything Investors Should Know
(26:00) - How Should Investors Be Using These Investment Products?
(29:15) - Invesco S&P 500 Equal Weight ETF: RSP
(33:45) - How Concentrated Is The S&P 500 Right Now?
(37:35) - Why Should Investors Consider Adding RSP To Their Portfolios?
(43:20) - Breaking Down Invesco’s Suite of Equal Weight ETFs
(51:15) - Episode Roundup: QQQ, QQQM, RSP, RSPT, RSPC
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Invesco strategists Paul Schroeder and Chris Dahlin about the ultra-popular Invesco QQQ QQQ, and the S&P 500 Equal Weight ETF RSP.
QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA. From March 10, 1999, to June 30, 2023, the Nasdaq-100 Index, which has become synonymous with growth and innovation, returned over 780%.
However, mega-cap stocks now dominate the popular market-cap benchmarks, leading to concerns about overconcentration of these indexes. Further, we have seen these giants struggle a bit lately, and a wider group of the market is outperforming the largest companies.
RSP, the first smart beta ETF, has significantly outperformed the market- capitalization-weighted S&P 500 since its inception in 2003. The fund has seen a lot of interest from investors this year. With equal-weighting, investors get higher exposure to old economy sectors that are quite attractively valued compared to technology.
The quarterly rebalancing ensures trimming expensive stocks and buying potentially cheaper stocks that have declined in price. Invesco also offers 11 equal-weight sector ETFs, which were rebranded recently.
Tune in to the podcast to learn more.
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To read this article on Zacks.com click here.
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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. | QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA. 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 Invesco QQQ (QQQ): ETF Research Reports Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. However, mega-cap stocks now dominate the popular market-cap benchmarks, leading to concerns about overconcentration of these indexes. | QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA. 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 Invesco QQQ (QQQ): ETF Research Reports Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. (43:20) - Breaking Down Invesco’s Suite of Equal Weight ETFs (51:15) - Episode Roundup: QQQ, QQQM, RSP, RSPT, RSPC Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Invesco strategists Paul Schroeder and Chris Dahlin about the ultra-popular Invesco QQQ QQQ, and the S&P 500 Equal Weight ETF RSP. | 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 Invesco QQQ (QQQ): ETF Research Reports Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA. (18:05) - The QQQ Rebalancing: Everything Investors Should Know (26:00) - How Should Investors Be Using These Investment Products? | 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 Invesco QQQ (QQQ): ETF Research Reports Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. QQQ surged almost 40% in the first half of 2023, thanks to the "Magnificent Seven" — Alphabet GOOG, Amazon AMZN, Apple AAPL, Meta META, Microsoft MSFT, Nvidia NVDA, and Tesla TSLA. (1:30) - What Is Driving QQQ Outperformance? | 4 |
118 | 14,218 | 2023-08-20 00:00:00 UTC | Should Apple Buy ESPN From Disney? Wall Street Analyst Dan Ives Thinks It's a "No-Brainer" | AAPL | https://www.nasdaq.com/articles/should-apple-buy-espn-from-disney-wall-street-analyst-dan-ives-thinks-its-a-no-brainer | null | null | Many view ESPN as the crown jewel of Walt Disney's (NYSE: DIS) TV empire. But now one prominent analyst believes that Disney will give up that crown jewel in the not-too-distant future to Apple (NASDAQ: AAPL).
Wedbush's Dan Ives stated on CNBC's Last Call program last week, "I believe it's a matter of when, not if, ESPN and Apple get together." Ives is cheering on a deal, recently writing to clients that it's "a no-brainer."
Is he right?
Why Apple might be motivated
There have been rumors for years that Apple could acquire Disney outright. Ives doesn't think such a large transaction is likely. However, he believes that Apple would love to have ESPN.
Apple has already moved into streaming TV in a major way with Apple TV+. While Apple TV+ has attracted viewers with high-quality productions such as Ted Lasso and Severance, it has also expanded into live sports.
This move is already paying off nicely for Apple. MLS Season Pass subscriptions on Apple TV+ doubled since Lionel Messi joined Major League Soccer's Inter Miami franchise.
Ives argued on CNBC that "live sports content is the golden goose." ESPN ranks as the longtime leader in providing live sports content at the college and professional levels. The Wedbush analyst thinks that Apple and ESPN make "a perfect fit."
Big money for a big buy
Would Disney be interested in selling ESPN to Apple? Maybe not. Disney CEO Bob Iger said in the quarterly update earlier this month that the company is "considering potential strategic partnerships for ESPN, looking at distribution, technology, marketing, and content opportunities where we retain control of ESPN."
It's possible that Apple could be the strategic partner that Disney seeks. Ives, though, believes that an outright acquisition of ESPN by Apple is more likely.
Perhaps the right price could entice Iger to put ESPN up for sale. How much would a deal cost Apple? Probably in the ballpark of $50 billion, according to Ives.
That price tag isn't too much of a stretch for Apple. The tech giant's cash stockpile totaled nearly $59 billion as of July 1. Apple is on track to generate operating cash flow of around $120 billion in its current fiscal year.
A no-brainer deal?
Ives told CNBC, "[W]e believe an acquisition could clearly happen here as we look into the next six to nine months." However, there are a few reasons why Apple acquiring ESPN from Disney might not be such a no-brainer deal for either company.
As Iger's comments in the recent quarterly conference call indicate, Disney is looking for a partner for ESPN, not a buyer. He said that the company has already "received notable interest from many different entities."
The integration between ESPN and ABC (which Disney also owns) could also present a problem. Iger has stated that all options are on the table with its linear networks, including a potential sale. However, ABC's value could be lower with access to ESPN's content. If Apple acquired ESPN without also buying ABC, it could complicate matters for Disney.
Apple could be more reluctant to fork out $50 billion or more to get ESPN than Ives thinks. The company's biggest acquisition so far was buying Beats in 2014 for $3 billion. Apple clearly hasn't been willing to pull the trigger on huge deals in the past.
A wild card
I do, however, think there's one wild card that just might tip the scales in favor of Apple acquiring ESPN: Apple plans to launch its Vision Pro mixed-reality headset next year.
Disney's streaming service, Disney+, will be integrated with Vision Pro in several ways. The opportunities to tie in live sports with the mixed-reality device could be so appealing that Apple decides to acquire ESPN.
Granted, Apple and Disney will probably work together on such integration anyway. One big hint: A video shown at Apple's 2023 Worldwide Developers Conference introducing Vision Pro showed a 3D view of a basketball game. However, if Apple owned ESPN, it would have full control over how it offers a huge array of sports content with Vision Pro.
So will Apple acquire ESPN? I'm not sure. Even if the deal doesn't happen, though, I'd be shocked if Apple doesn't at least walk away as the major strategic partner for ESPN that Disney says it wants. Either way, it could be good news for Apple shareholders.
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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. | But now one prominent analyst believes that Disney will give up that crown jewel in the not-too-distant future to Apple (NASDAQ: AAPL). MLS Season Pass subscriptions on Apple TV+ doubled since Lionel Messi joined Major League Soccer's Inter Miami franchise. One big hint: A video shown at Apple's 2023 Worldwide Developers Conference introducing Vision Pro showed a 3D view of a basketball game. | But now one prominent analyst believes that Disney will give up that crown jewel in the not-too-distant future to Apple (NASDAQ: AAPL). Many view ESPN as the crown jewel of Walt Disney's (NYSE: DIS) TV empire. If Apple acquired ESPN without also buying ABC, it could complicate matters for Disney. | But now one prominent analyst believes that Disney will give up that crown jewel in the not-too-distant future to Apple (NASDAQ: AAPL). Why Apple might be motivated There have been rumors for years that Apple could acquire Disney outright. However, there are a few reasons why Apple acquiring ESPN from Disney might not be such a no-brainer deal for either company. | But now one prominent analyst believes that Disney will give up that crown jewel in the not-too-distant future to Apple (NASDAQ: AAPL). Ives, though, believes that an outright acquisition of ESPN by Apple is more likely. However, there are a few reasons why Apple acquiring ESPN from Disney might not be such a no-brainer deal for either company. | 4 |
119 | 14,222 | 2023-08-19 00:00:00 UTC | Elon Musk says X will strip ability to block accounts | AAPL | https://www.nasdaq.com/articles/elon-musk-says-x-will-strip-ability-to-block-accounts | null | null | Aug 18 (Reuters) - Social media company X, formerly known as Twitter, will remove a protective feature that lets users block other accounts, owner Elon Musk said on Friday in another controversial move for the company he bought last year.
The block function on X allows a user to restrict specific accounts from contacting them, seeing their posts or following them.
"Block is going to be deleted as a 'feature', except for DMs," Musk said in a post on the platform, referring to direct messages.
He said X would retain the mute function, which screens a user from seeing specified accounts but, unlike blocking, does not alert the other account to the action.
The billionaire owner has described himself as a free speech absolutist, but some critics have said his approach is irresponsible. Researchers have found an increase in hate speech and antisemitic content on the platform since he took over, and some governments have accused the company of not doing enough to moderate its content.
Removing or limiting the block feature might bring X into conflict with guidelines incorporated by Apple's AAPL.O App Store and Alphabet's GOOGL.O Google Play.
Apple says apps with user-generated content must have the ability to block abusive users. Google Play Store says apps must provide an in-app system for blocking user-generated content and users.
X, Google and Apple did not immediately reply to requests for comment.
Responding to a post from anti-bullying activist Monica Lewinsky urging X to keep the "critical tool to keep people safe online", Chief Executive Linda Yaccarino defended Musk's move.
"Our users' safety on X is our number one priority. And we're building something better than the current state of block and mute. Please keep the feedback coming," Yaccarino posted.
The company has said Musk would lead the product and engineering teams, while Yaccarino would lead all other teams, including legal and sales.
(Reporting by Mrinmay Dey in Bengaluru; Editing by William Mallard)
((Mrinmay.Dey@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Removing or limiting the block feature might bring X into conflict with guidelines incorporated by Apple's AAPL.O App Store and Alphabet's GOOGL.O Google Play. Google Play Store says apps must provide an in-app system for blocking user-generated content and users. Responding to a post from anti-bullying activist Monica Lewinsky urging X to keep the "critical tool to keep people safe online", Chief Executive Linda Yaccarino defended Musk's move. | Removing or limiting the block feature might bring X into conflict with guidelines incorporated by Apple's AAPL.O App Store and Alphabet's GOOGL.O Google Play. Aug 18 (Reuters) - Social media company X, formerly known as Twitter, will remove a protective feature that lets users block other accounts, owner Elon Musk said on Friday in another controversial move for the company he bought last year. Google Play Store says apps must provide an in-app system for blocking user-generated content and users. | Removing or limiting the block feature might bring X into conflict with guidelines incorporated by Apple's AAPL.O App Store and Alphabet's GOOGL.O Google Play. Aug 18 (Reuters) - Social media company X, formerly known as Twitter, will remove a protective feature that lets users block other accounts, owner Elon Musk said on Friday in another controversial move for the company he bought last year. Apple says apps with user-generated content must have the ability to block abusive users. | Removing or limiting the block feature might bring X into conflict with guidelines incorporated by Apple's AAPL.O App Store and Alphabet's GOOGL.O Google Play. He said X would retain the mute function, which screens a user from seeing specified accounts but, unlike blocking, does not alert the other account to the action. Apple says apps with user-generated content must have the ability to block abusive users. | 4 |
120 | 14,235 | 2023-08-18 00:00:00 UTC | Top Stock Reports for Apple, NVIDIA & Bank of America | AAPL | https://www.nasdaq.com/articles/top-stock-reports-for-apple-nvidia-bank-of-america | null | null | Friday, August 18, 2023
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), NVIDIA Corporation (NVDA) and Bank of America Corporation (BAC). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Apple shares have struggled lately, with the stock losing losing -11.6% of its value since the start of August, lagging the Zacks Tech sector's -7.3% decline and the S&P 500 index's -4.6% pullback. This recent weakness notwithstanding, the stock has been a standout performer this year, handily outperforming the Tech sector as well as the broader market.
The company is benefiting from increasing customer engagement in the services segment. The expanding content portfolio of Apple TV+ and Apple Arcade, as well as the launch of its high-yield savings account with Apple Card, helped in driving subscriber growth.
Apple’s results also benefited from strong growth in emerging markets and growing adoption among enterprises. Apple expects iPhone and Services’ year-over-year growth to accelerate in fiscal fourth-quarter as compared with the June quarter.
However, revenues for both Mac and iPad are expected to decline by double digits on a year-over-year basis due to difficult comparison. Unfavorable forex is expected to hurt top-line.
(You can read the full research report on Apple here >>>)
As is the case with Apple, NVIDIA shares have struggled lately as well, with the stock lagging the Tech sector as well as the S&P 500 index this month (-9.4% vs. -7.3% for the Tech sector & -4.6% for the index). That said, Nvidia's performance this year is one for the record books, with the stock up +192.9% this year vs. +32.7% for the Tech sector and +15.2% for the market.
Nvidia has literally been in a league of its own since its last quarterly release on May 24th when it raised guidance by a magnitude that we have never seen from another company. With the company on deck to report results on Wednesday, August 23rd, it is under the spotlight as to whether the preceding quarter's numbers were a one-off or the start of a sustained period of outperformance.
The company is gaining from strong growth of artificial intelligence, high-performance computing and accelerated computing, which is boosting its Compute & Networking revenues.
A surge in Hyperscale demand and a solid uptake of artificial intelligence-based smart cockpit infotainment solutions are acting as tailwinds. Collaboration with Mercedes-Benz and Audi is likely to advance its presence in autonomous vehicles and other automotive electronics space.
However, NVDA’s near-term prospects look gloomy due to weakening demand for chips used in gaming and professional visualization end markets. While macroeconomic headwinds are impacting gaming and professional visualization chip demand, higher channel inventory levels are hurting chip prices.
(You can read the full research report on NVIDIA here >>>)
Shares of Bank of America have underperformed the Zacks Banks - Major Regional industry over the past six months (-10.9% vs. -15.9%). The tough economic backdrop is expected to keep weighing on investment banking (IB) business. This, along with the volatile nature of the capital markets, might hurt non-interest income. Moreover, inflationary pressure will likely result in mounting expenses.
Nevertheless, Higher interest rates and decent loan demand will likely keep aiding the company’s net interest income (NII) growth. The opening of financial centers and improving digital capabilities is expected to bolster the top line.
(You can read the full research report on Bank of America here >>>)
Other noteworthy reports we are featuring today include SAP SE (SAP), NIKE, Inc. (NKE) and Prologis, Inc. (PLD).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Robust Portfolio, Services Strength to Benefit Apple (AAPL)
NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships
Rate Hikes Aid Bank of America (BAC) Amid Market Volatility
Featured Reports
Solid Momentum in Cloud Business Driving SAP's Performance
Per the Zacks Analyst, SAP's performance is gaining from its strengthening cloud business, mainly Rise with SAP solution. However, weak uptake of software licenses and support offerings is a concern.
Improved Traffic & Digital Trends Aid NIKE (NKE) Direct
Per the Zacks analyst, the NIKE Direct business benefits from the steady normalization of the owned retail business on improved traffic. Gains in Digital business are also aiding growth at NIKE Direct
E-commerce Adoption, High Inventory to Aid Prologis (PLD)
Per the Zacks analyst, the fast adoption of e-commerce and high inventory levels will drive demand for Prologis' facilities in key markets. Rising supply and high interest rates are worrisome.
Solid Demand Aids Northrop (NOC), Supply Chain Turmoil Woes
Per the Zacks analyst, strong global demand for its products like Triton and E-2D Advanced Hawkeyes steadily boosts Northrop. Yet COVID-19 induced supply chain disruption might hurt the stock.
Sun Life Financial (SLF) Set to Grow on Solid Asia Business
Per the Zacks analyst, Sun Life is set for grow on the strength of its Asia business that are expected to provide higher return and growth as well as expanding global asset management business.
Yum China (YUMC) Banks on Digital Initiatives, High Costs Ail
Per the Zacks analyst, Yum China's focus on digital enhancements, logistics center openings and supply-chain security bode well. However, wage inflation is a concern.
Paramount Global (PARA) Banks on Paramount+, Streaming Portfolio
Per the Zacks analyst, Paramount is benefiting from strong viewership for its solid portfolio of streaming services including Paramount+ and PlutoTV
New Upgrades
Dupixent Profits Fuels Regeneron (REGN), Eylea Decline A Woe
Per the Zacks analyst, stellar performance of Dupixent fuels Regeneron even as lead drug Eylea face disruption. The company's progress with the oncology portfolio & other candidates is also impressive
Diamondback (FANG) to Benefit from Low Breakeven Costs
The Zacks analyst thinks Diamondback Energy's extremely low breakeven oil prices, which require the commodity to trade for just $50 per barrel in order for the business to turn a profit.
Air Transport Services (ATSG) Soars on Freighter Demand
Air Transport Services is benefiting from an upbeat demand for mid-size air freighters. The Zacks analyst believes that the demand uptick is attributable to e-commerce growth.
New Downgrades
High Debt & Expenses Ail Canadian Pacific Kansas City (CP)
The Zacks analyst is worried about escalating operating expenses. Also, Canadian Pacific Kansas City's liquidity position is concerning.
Lower Construction Activities to Hurt Westlake (WLK)
Per the Zacks analyst, softer construction and industrial activities will continue to put pressure on Westlake's PVC resin, caustic soda and epoxy sales.
Lower COVID Sales Hurt Thermo Fisher (TMO), Forex Woes Ail
Per Zacks analyst, Thermo Fisher is experiencing a continuous decline in COVID testing-related demand and is expected to continue at much lower levels in 2023. Foreign exchange woes remain a concern.
4 Oil Stocks with Massive Upsides
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Bank of America Corporation (BAC) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
NIKE, Inc. (NKE) : Free Stock Analysis Report
Prologis, Inc. (PLD) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
SAP SE (SAP) : 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. | Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), NVIDIA Corporation (NVDA) and Bank of America Corporation (BAC). If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships Rate Hikes Aid Bank of America (BAC) Amid Market Volatility Featured Reports Solid Momentum in Cloud Business Driving SAP's Performance Per the Zacks Analyst, SAP's performance is gaining from its strengthening cloud business, mainly Rise with SAP solution. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report Prologis, Inc. (PLD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report To read this article on Zacks.com click here. | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships Rate Hikes Aid Bank of America (BAC) Amid Market Volatility Featured Reports Solid Momentum in Cloud Business Driving SAP's Performance Per the Zacks Analyst, SAP's performance is gaining from its strengthening cloud business, mainly Rise with SAP solution. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report Prologis, Inc. (PLD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), NVIDIA Corporation (NVDA) and Bank of America Corporation (BAC). | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships Rate Hikes Aid Bank of America (BAC) Amid Market Volatility Featured Reports Solid Momentum in Cloud Business Driving SAP's Performance Per the Zacks Analyst, SAP's performance is gaining from its strengthening cloud business, mainly Rise with SAP solution. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report Prologis, Inc. (PLD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), NVIDIA Corporation (NVDA) and Bank of America Corporation (BAC). | If you want an email notification each time Sheraz publishes a new article, please click here>>> Today's Must Read Robust Portfolio, Services Strength to Benefit Apple (AAPL) NVIDIA (NVDA) Rides on Strong Adoption of GPUs, Partnerships Rate Hikes Aid Bank of America (BAC) Amid Market Volatility Featured Reports Solid Momentum in Cloud Business Driving SAP's Performance Per the Zacks Analyst, SAP's performance is gaining from its strengthening cloud business, mainly Rise with SAP solution. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc. (AAPL), NVIDIA Corporation (NVDA) and Bank of America Corporation (BAC). Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report Prologis, Inc. (PLD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report To read this article on Zacks.com click here. | 4 |
121 | 14,265 | 2023-08-17 00:00:00 UTC | 54.5% of Warren Buffett's $360 Billion Stock Portfolio Is in These 2 Blue Chip Stocks | AAPL | https://www.nasdaq.com/articles/54.5-of-warren-buffetts-%24360-billion-stock-portfolio-is-in-these-2-blue-chip-stocks | null | null | Berkshire Hathaway CEO Warren Buffett has done an incredible job guiding his company to market-crushing success through the decades. Today, the investment giant has a market capitalization of more than $786 billion, ranks as the world's eighth-largest company, and has a stock portfolio worth roughly $360 billion.
Much of Buffett's investing success has come from backing top blue chip stocks -- highly regarded companies that have many years of profitable operations under their belt and regularly pay dividends to shareholders. With that in mind, read on for a look at the two blue chip stocks that Warren Buffett has incredible confidence in.
1. Apple
Apple (NASDAQ: AAPL) accounts for an eye-catching share of Berkshire Hathaway's total stock portfolio. Buffett's company first began investing in the mobile hardware leader in 2016, and it has continued to regularly buy shares through the years. Today, Apple stock accounts for 45.6% of Berkshire's portfolio -- making it the company's biggest stock holding by a wide margin.
Not only does Apple consistently serve up profits, it often ranks as the world's most profitable company. The blue chip tech company's dominant position in the smartphone market has been and continues to be the biggest driver of its success.
Thanks to its incredible brand strength and ability to reliably deliver products that delight consumers, the company's iPhone now accounts for roughly 55% of total smartphone unit sales in the U.S. Globally, the company is capturing 45% of total revenue in the category.
But just looking at the unit sales picture would actually undersell how powerful Apple is in the mobile market. The tech giant's iPhones account for 85% of total operating profits on smartphone sales worldwide. While most other players in the space have been pressured by commodification trends, Apple's sales cut and profitability in the category have continued to increase through the years.
And even though the iPhone is undoubtedly the centerpiece of the business, Apple is far from being a one-trick pony. In addition to other hardware devices including tablets, computers, and wearables, the company also has a highly profitable software and services business. The segment now has more than 1 billion subscription customers globally and recorded revenue of $21.8 billion last quarter -- about 26% of the $81.8 billion in sales posted in the period.
AAPL Dividend data by YCharts
Incredible sales and profits also helped Apple ramp up the amount of cash it returns to shareholders. The company has raised its payout 153.6% since initiating a dividend in 2012, and 84.6% since Berkshire started buying the stock in Q1 2016.
Apple's incredible share price gains mean that the company's dividend yield has been pushed down to roughly 0.5%. But additional payout increases will mean that Buffett's company will continue to enjoy rising yield on shares it's already purchased.
2. Bank of America
Bank of America (NYSE: BAC) ranks as Berkshire's second-largest stock holding and currently accounts for 8.9% of the investment giant's portfolio. With a dividend yield of about 2.9%, it's also one of Buffett's biggest income generators.
Berkshire Hathaway currently owns more than 1.03 billion shares of B of A stock. Based on the bank's current annual dividend payout of $0.96 per share, Berkshire will receive just under $1 billion in annual payouts from its position. Given that Bank of America is such a large holding and cash generator for Berkshire, it's interesting to note that Buffett actually sold all of his company's position in the stock back in 2010.
At the start of the last decade, Bank of America was struggling as it dealt with conditions related to the financial crash and the Great Recession. In response to the challenges at hand, the company slashed its dividend, and Buffett closed out Berkshire's position in the stock in the fourth quarter of 2010.
But the Oracle of Omaha got in contact with Bank of America's CEO the following year to offer an investment olive branch that would provide the financial giant with some funding support. Berkshire wound up purchasing $5 billion worth of the company's preferred stock and received warrants to purchase 700 million shares of common stock at a price of $7.14 per share.
BAC Dividend data by YCharts
Roughly six years later, Bank of America stock was trading above $24 per share. Buffett exercised the warrants and immediately scored a massive paper profit on the deal. The move made his company Bank of America's largest shareholder. Berkshire has continued to increase its stake through the years, and it's continued to benefit from the bank's return to dividend growth.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Apple (NASDAQ: AAPL) accounts for an eye-catching share of Berkshire Hathaway's total stock portfolio. AAPL Dividend data by YCharts Incredible sales and profits also helped Apple ramp up the amount of cash it returns to shareholders. Much of Buffett's investing success has come from backing top blue chip stocks -- highly regarded companies that have many years of profitable operations under their belt and regularly pay dividends to shareholders. | Apple Apple (NASDAQ: AAPL) accounts for an eye-catching share of Berkshire Hathaway's total stock portfolio. AAPL Dividend data by YCharts Incredible sales and profits also helped Apple ramp up the amount of cash it returns to shareholders. Thanks to its incredible brand strength and ability to reliably deliver products that delight consumers, the company's iPhone now accounts for roughly 55% of total smartphone unit sales in the U.S. Globally, the company is capturing 45% of total revenue in the category. | Apple Apple (NASDAQ: AAPL) accounts for an eye-catching share of Berkshire Hathaway's total stock portfolio. AAPL Dividend data by YCharts Incredible sales and profits also helped Apple ramp up the amount of cash it returns to shareholders. Today, Apple stock accounts for 45.6% of Berkshire's portfolio -- making it the company's biggest stock holding by a wide margin. | Apple Apple (NASDAQ: AAPL) accounts for an eye-catching share of Berkshire Hathaway's total stock portfolio. AAPL Dividend data by YCharts Incredible sales and profits also helped Apple ramp up the amount of cash it returns to shareholders. Much of Buffett's investing success has come from backing top blue chip stocks -- highly regarded companies that have many years of profitable operations under their belt and regularly pay dividends to shareholders. | 4 |
122 | 14,279 | 2023-08-16 00:00:00 UTC | These 3 Stocks Get High Grades for 2023 Back-to-School Shopping | AAPL | https://www.nasdaq.com/articles/these-3-stocks-get-high-grades-for-2023-back-to-school-shopping | null | null | Yes, it’s that time of year already.
The National Retail Federation (NRF) estimates that Americans will spend a record $41.5 billion on back-to-school shopping this year, 5% more than last year. Back-to-college shopping is forecast to surge 27% to $94 billion.
Like holiday shopping, consumers are getting an earlier start these days with memories of pandemic era ‘out of stock’ signs still fresh. And nowadays, BTS shopping is about more than new clothes, backpacks and pencils.
The NRF’s annual back-to-school survey revealed that 69% of shoppers expect to purchase electronics and computer accessories, the most in survey history. For K-12 students, laptops, tablets and calculators have become integral parts of the learning process. In addition, new phones and dorm room furnishings will be big outlays for college students.
The anticipated spending on big-ticket items is an unusual phenomenon. In an economy challenged by inflation and higher interest rates, consumers are paring back their discretionary spending in just about every other product category. But with classrooms back in session, retailers are finally getting the spending spree they’ve missed all year.
Make no mistake; frugality is the mantra of the 2023 BTS shopping season. Even as inflation cools, prices are still up. This means consumers will be seeking deals, using coupons, opting for private labels and doing online comparison shopping like never before.
So with price sensitivity the theme of this year’s major shopping event, stores that are all about lower prices should benefit — especially these three retailers.
What Is the Best Stock for Back-to-School Shopping?
Walmart Inc. (NYSE: WMT) wasted no time rolling out the BTS campaigns. During the first week of July, the world’s biggest retailer announced that it will offer backpacks and classroom supplies at 2022 prices. A ‘school supply basket’ of the 14 most popular school essentials for $12.94 is sure to be a big hit with budget-minded parents.
The company also launched Classroom Registry, a digital portal geared towards teachers that helps reduce expenses on classroom essentials. The tool lets teachers plan, shop and share their wish lists, which could have a snowball effect among like-minded educators.
Walmart has the electronics well-covered too. Its online store features more than 400 computers, laptops and tablets at consumer-friendly prices. A dedicated back-to-college hub packed with tech items and dorm essentials, including a $124 mini-fridge, is sure to be a popular online destination. And with physical retail locations strategically located within 10 miles of hundreds of college campuses, Walmart will be dishing out the savings and generating some serious revenue in the weeks ahead.
Is Amazon a Good Back-to-School Play?
Amazon.com (NASDAQ: AMZN) has long been the way to play the online comparison shopping trend, and this year’s BTS season is no exception. The company waited to launch its back-to-school marketing campaign until mid-July, but it has packed plenty of punch. Starring actor Randall Park, a series of TV, online video and social media ads encourage parents to take advantage of Amazon deals and spend less on school supplies.
With the e-commerce giant enacting mass layoffs and other cost-cutting measures of its own, it is well aware that saving people money is paramount to its BTS success. The BTS push follows Amazon's highly successful Prime Day event, during which shoppers bought more than 375 million items and made July 11 the company’s biggest sales day yet.
Earlier this month, Amazon introduced a limited-time ‘Stock Up and Save’ deal that gives Prime members 20% off when they spend $40 on school supplies. The offer includes over 1,000 items, including Amazon’s private label Basics and Basic Care brands. A record two-day Prime event and Prime savings for BTS shoppers should lead to some strong third-quarter results.
Is Costco Stock a BTS Winner?
Costco Wholesale Corporation (NASDAQ: COST) should also be a beneficiary of BTS frugality. A Deloitte back-to-school survey showed that 80% of shoppers will flock to mass merchants this season because of their competitive prices. This bodes well for several retailers, but especially a warehouse club like Costco.
Its wide assortment of low-priced electronics and BTS essentials make it an attractive one-stop shop for American families. And with most items offered in bulk quantities, parents, students and teachers may find it more economical to stock up for the entire school year rather than make smaller repeat purchases — especially when it comes to non-perishable groceries for school lunches.
This month, Costco reported that July 2023 sales were up 4.5% to $17.6 billion, with growth in both physical and online retail in all geographic regions. A big portion of sales undoubtedly went toward BTS electronics. The wholesaler is touting an extensive lineup of Apple iPads, MacBooks and AirPods for high-tech learners as well as cheap TVs for the dorm room. And with classes starting earlier than ever, Costco's expansion of same-day delivery could make it a go-to for last-minute shopping — and help it earn an A+ this BTS season.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Starring actor Randall Park, a series of TV, online video and social media ads encourage parents to take advantage of Amazon deals and spend less on school supplies. The wholesaler is touting an extensive lineup of Apple iPads, MacBooks and AirPods for high-tech learners as well as cheap TVs for the dorm room. And with classes starting earlier than ever, Costco's expansion of same-day delivery could make it a go-to for last-minute shopping — and help it earn an A+ this BTS season. | The National Retail Federation (NRF) estimates that Americans will spend a record $41.5 billion on back-to-school shopping this year, 5% more than last year. The offer includes over 1,000 items, including Amazon’s private label Basics and Basic Care brands. A record two-day Prime event and Prime savings for BTS shoppers should lead to some strong third-quarter results. | The National Retail Federation (NRF) estimates that Americans will spend a record $41.5 billion on back-to-school shopping this year, 5% more than last year. Amazon.com (NASDAQ: AMZN) has long been the way to play the online comparison shopping trend, and this year’s BTS season is no exception. The BTS push follows Amazon's highly successful Prime Day event, during which shoppers bought more than 375 million items and made July 11 the company’s biggest sales day yet. | What Is the Best Stock for Back-to-School Shopping? During the first week of July, the world’s biggest retailer announced that it will offer backpacks and classroom supplies at 2022 prices. Earlier this month, Amazon introduced a limited-time ‘Stock Up and Save’ deal that gives Prime members 20% off when they spend $40 on school supplies. | 4 |
123 | 14,286 | 2023-08-15 00:00:00 UTC | Technology Sector Update for 08/15/2023: JMIA, SE, WLDS, AAPL, RUM | AAPL | https://www.nasdaq.com/articles/technology-sector-update-for-08-15-2023%3A-jmia-se-wlds-aapl-rum | null | null | Tech stocks were lower late Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 1.2% and the Philadelphia Semiconductor index falling 1.7%.
In company news, Jumia Technologies (JMIA) shares slumped almost 17% after the company's Q2 revenue dropped from a year earlier.
Sea (SE) shares slumped almost 30% after the company's Q2 revenue fell short of market expectations.
Wearable Devices (WLDS) jumped almost 20%. The company said Tuesday it completed the initial commercial production batch of the Mudra Band for Apple's (AAPL) Watch and expects to start delivery in the coming weeks.
Rumble (RUM) shares were down nearly 15% after the company logged a wider Q2 loss year-over-year.
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 said Tuesday it completed the initial commercial production batch of the Mudra Band for Apple's (AAPL) Watch and expects to start delivery in the coming weeks. Tech stocks were lower late Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 1.2% and the Philadelphia Semiconductor index falling 1.7%. Sea (SE) shares slumped almost 30% after the company's Q2 revenue fell short of market expectations. | The company said Tuesday it completed the initial commercial production batch of the Mudra Band for Apple's (AAPL) Watch and expects to start delivery in the coming weeks. In company news, Jumia Technologies (JMIA) shares slumped almost 17% after the company's Q2 revenue dropped from a year earlier. Sea (SE) shares slumped almost 30% after the company's Q2 revenue fell short of market expectations. | The company said Tuesday it completed the initial commercial production batch of the Mudra Band for Apple's (AAPL) Watch and expects to start delivery in the coming weeks. In company news, Jumia Technologies (JMIA) shares slumped almost 17% after the company's Q2 revenue dropped from a year earlier. 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 said Tuesday it completed the initial commercial production batch of the Mudra Band for Apple's (AAPL) Watch and expects to start delivery in the coming weeks. Tech stocks were lower late Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) decreasing 1.2% and the Philadelphia Semiconductor index falling 1.7%. In company news, Jumia Technologies (JMIA) shares slumped almost 17% after the company's Q2 revenue dropped from a year earlier. | 1 |
124 | 14,306 | 2023-08-14 00:00:00 UTC | Should You Buy the Dip in Apple Stock? | AAPL | https://www.nasdaq.com/articles/should-you-buy-the-dip-in-apple-stock | null | null | Apple (AAPL) has been a bona fide wealth creator for its investors over the years. The Cupertino-based tech titan has launched numerous revolutionary products that have significantly changed the way we lead our lives - including industry-leading smartphones (iPhone), tablets (iPad), smartwatches (Apple Watch), personal computers (Macbook, iMac) and services (Apple Music, Apple Pay). With a devoted user base and widespread adoption across the globe, Apple became the first U.S. company to achieve a trillion-dollar market cap in August 2018.
In 2023 so far, Apple stock is up 38%, outperforming the S&P 500's ($SPX) rise of 16.7% and the 31% surge of Nasdaq ($NASX).
However, signs of slower iPhone demand in Apple's latest quarterly report sent the stock sharply lower the session after earnings, and AAPL has yet to fill its bear gap on the charts.
www.barchart.com
So, as the shares trade near two-month lows, is Apple a buy right now - or is it too soon to jump on the stock's post-earnings weakness?
Muted Results for the Latest Quarter
Apple's results for fiscal Q3 topped expectations, but investors sold the news on indications of a revenue slowdown that may extend to Q4. Total net sales for the quarter came in at $81.8 billion, down 1.4% from the previous year (versus the consensus estimate of $81.69 billion). EPS grew by 5% from the previous year to $1.26, which also came in above the consensus estimate of $1.19.
Notably, product sales at the end of the third quarter stood at $60.6 billion, down 4.4% from the year before. Sales of iPhones were down 2.5% year-over-year to $39.7 billion in the quarter, and below the consensus estimate of $39.91 billion.
Apple's revenues have followed a fairly predictable cyclical pattern in recent years, as sales peak in the September and December quarters, and then taper off through the rest of the year. The expected launch of new iPhone models and the holiday season are key drivers for this annual trend. However, Apple compounded the blow of its iPhone sales miss by warning that it expects to announce another year-over-year revenue decline for its September quarter.
The fall in iPhone sales, which still makes up almost half of the company's total quarterly net sales, can be attributed to two reasons. First, higher inflation and interest rates have shifted the spending habits of many potential customers away from discretionary purchases like smartphones in 2023. Second, the new iPhone 15 models are set to launch in September, as per Apple's tradition. Consequently, customers may have delayed iPhone purchases during the quarter at a higher rater than normal.
Critically, sales in the U.S. market - which is the company's largest, in terms of revenue - fell 5.6% from the prior year to $35.4 billion. Sales in the Asia Pacific segment - which includes India, a market the company is betting on heavily to drive sales growth - were down 8% to $5.6 billion.
Worryingly, on a nine-month basis, the company's cash generation from its operating activities fell 9.3% from the prior year to $88.9 billion.
However, growth in revenue from services emerged as a bright spot for the company. Services net sales grew by 8.2% from the prior year to $21.2 billion, and came in above the consensus estimate of $20.76 billion.
Valuation
In terms of personal computing, Apple appears to be relatively overvalued when compared to its peers. Apple is currently trading at a forward p/e of 29.37, p/s of 7.34 and p/cf of 24.58, all of which are much higher than the comparable p/e, p/s and p/cf of Dell (DELL) (19.22, 0.43 and 7.37), and HP (HPQ) (11.04, 0.58 and 11.07), respectively.
Alphabet (GOOGL) might be the biggest competitor of Apple in terms of smartphones and mobile operating systems. Here too, Apple appears to be more richly valued when compared to its fellow tech giant. Alphabet is currently trading at a forward p/e of 23.17, p/s of 5.75 and p/cf of 16.51.
Analyst Estimates
Analysts are expecting Apple's earnings to grow 6.2% and 9.04% in the current quarter and next quarter, respectively. After an overall 0.98% decline in earnings for FY 2023, the consensus is calling for a return to 8.93% growth in fiscal 2024.
www.barchart.com
Overall, analysts remain cautiously optimistic about Apple stock. The consensus rating is “Moderate Buy” with a mean target price of $205.07, indicating an upside potential of about 14% from current levels. Out of 29 analysts covering the stock, 18 have a “Strong Buy" rating, 3 have a “Moderate Buy” rating and 8 have a “Hold” rating.
www.barchart.com
Final Takeaway
Apple has revolutionized the consumer tech industry. Each time Apple has debuted a new product, whether it has been the Macbook or the iPhone, a tectonic shift has been experienced in the way consumers use tech in their daily lives. Although the company charges a premium for its devices, the utility has far outweighed the cons for many loyal consumers.
However, Apple has slowed down somewhat in terms of its product innovation in recent times. Its mixed-reality headset - the Vision Pro, announced in June 2023 - was its first new product in a long while. However, I believe the headset, which will tentatively be available in early 2024, will take some time to gain traction among consumers, even hardcore loyal Apple enthusiasts - due to its price point as well as the nascent stage of adoption for the wider metaverse space.
Moreover, a slowdown in sales of its flagship product - the iPhone - coupled with expensive valuations and persistent economic headwinds, makes me skeptical about adding Apple to my portfolio, at least for the near term at current levels.
However, I believe the company's innovative DNA makes it a good long term buy, which will eventually propel the stock to newer heights. So my suggestion is for investors to stay on the sidelines until AAPL retracts further and then initiate an averaging down investment strategy.
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. | However, signs of slower iPhone demand in Apple's latest quarterly report sent the stock sharply lower the session after earnings, and AAPL has yet to fill its bear gap on the charts. Apple (AAPL) has been a bona fide wealth creator for its investors over the years. So my suggestion is for investors to stay on the sidelines until AAPL retracts further and then initiate an averaging down investment strategy. | Apple (AAPL) has been a bona fide wealth creator for its investors over the years. However, signs of slower iPhone demand in Apple's latest quarterly report sent the stock sharply lower the session after earnings, and AAPL has yet to fill its bear gap on the charts. So my suggestion is for investors to stay on the sidelines until AAPL retracts further and then initiate an averaging down investment strategy. | Apple (AAPL) has been a bona fide wealth creator for its investors over the years. However, signs of slower iPhone demand in Apple's latest quarterly report sent the stock sharply lower the session after earnings, and AAPL has yet to fill its bear gap on the charts. So my suggestion is for investors to stay on the sidelines until AAPL retracts further and then initiate an averaging down investment strategy. | Apple (AAPL) has been a bona fide wealth creator for its investors over the years. However, signs of slower iPhone demand in Apple's latest quarterly report sent the stock sharply lower the session after earnings, and AAPL has yet to fill its bear gap on the charts. So my suggestion is for investors to stay on the sidelines until AAPL retracts further and then initiate an averaging down investment strategy. | 4 |
125 | 14,322 | 2023-08-13 00:00:00 UTC | Guru Fundamental Report for AAPL - Warren Buffett | AAPL | https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-warren-buffett-60 | null | null | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
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.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
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About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
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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. | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. | Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL). | Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL). | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. | 4 |
126 | 14,327 | 2023-08-12 00:00:00 UTC | 1 Apple Chip Supplier Might Hold the Key to Understanding When iPhone Sales Rebound | AAPL | https://www.nasdaq.com/articles/1-apple-chip-supplier-might-hold-the-key-to-understanding-when-iphone-sales-rebound | null | null | Thanks to guidance from mobile chipmakers in recent months, it was no surprise that Apple (NASDAQ: AAPL) reported sluggish iPhone sales for its quarter ended June 2023. The tech titan's phone revenue declined 2% year over year or notched a slight increase when excluding the effects of foreign currency exchange rates.
To this day, the iPhone still represents more than half of all of Apple's revenue ($157 billion of the $294 billion total through the first nine months of Apple's current fiscal year). More robust, profitable iPhone growth will be a must for Apple stock to justify its high premium of 30 times trailing-12-month earnings (or 28 times free cash flow). Top mobile chip supplier Skyworks Solutions (NASDAQ: SWKS) provides some hints on what could lay ahead.
Betting on something other than iPhone
Skyworks Solutions is a top designer and manufacturer of mobile chips -- the stuff that enables devices like smartphones to connect to a wireless network or Wi-Fi. This makes it especially reliant on consumer electronics sales, an area of the semiconductor industry that has been beaten up badly after massive household spending during the first two years of the pandemic.
Apple is responsible for much of this consumer electronics exposure, with 64% of Skyworks' total revenue of $1.07 billion in its own June 2023 quarter tied to Apple (so, about $685 million in sales from Apple). Of that total, about 85% comes from the iPhone specifically, with devices like the iPad, Mac, and Apple Watch making up the rest.
Suffice it to say the iPhone is an important product for Skyworks. This is a reliance Skyworks has been working hard to diversify for many years but to limited success thus far.
Apple has said it expects some sequential increases in iPhone sales for the next quarter, which will end in September, and Skyworks seems to confirm this. However, this is largely a seasonal effect from new iPhone model launches as well as device manufacturing ramping up through the year in support of the holiday shopping frenzy every late autumn and early winter. Skyworks said its September revenue is expected to be $1.215 billion at the midpoint of guidance, up about 13% to 14% from last quarter, but importantly, down about 14% from the same period in 2022.
In a further hint that Skyworks' diversification efforts, and not the Apple iPhone, are what's driving the sequential increase (but annual decline), Skyworks' CEO, Liam Griffin, rattled off a number of new chip product launches. Wi-Fi 6E and early Wi-Fi 7 modems are rolling out. 5G network infrastructure buildout is ongoing. And chips for smart home devices like Samsung soundbars and wearable tech like earbuds are growing markets for Skyworks.
Most notable, perhaps, is Skyworks' steady ramp into automotive, which it jump-started with the purchase of designs from peer Silicon Labs two years ago. Griffin said sales to automakers are now well over a $200 million-per-year run rate.
Is iPhone growth done for?
When adding up the sum of all commentary, it's safe to assume that Apple's marquee iPhone business shouldn't be relied upon as a key growth driver anymore -- at least, not anytime soon. Smartphones have matured into a more stable, though highly profitable, source of income for Apple and its suppliers like Skyworks.
New devices will propel growth going forward. For Apple, maybe it will be Vision Pro, which Skyworks undoubtedly will supply connectivity chips for. And for Skyworks, it still has work to do to diversify its business. But early work in automotive continues to look promising. Late in 2022, Skyworks' management had commented that auto sales were at about $200 million per year, so Griffin's recent dialogue indicates smart cars are a modest growth outlet.
For myself and my ownership of both Apple and Skyworks shares, I rank both as a hold. Apple has a high premium it will need to prove with a return to growth in 2024. Until then, I believe the Apple stock run-up is mostly over.
As for Skyworks, it has a far cheaper valuation at less than 17 times trailing-12-month earnings and just 12 times free cash flow. However, overall it isn't a growth business anymore -- at least, not until it can scale up its non-smartphone and non-Apple business to a more significant level. For now, Skyworks needs an iPhone rebound, and that doesn't exactly look like a promising bet for 2023.
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Nicholas Rossolillo and his clients have positions in Apple and Skyworks Solutions. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Silicon Laboratories and Skyworks Solutions. 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. | Thanks to guidance from mobile chipmakers in recent months, it was no surprise that Apple (NASDAQ: AAPL) reported sluggish iPhone sales for its quarter ended June 2023. Betting on something other than iPhone Skyworks Solutions is a top designer and manufacturer of mobile chips -- the stuff that enables devices like smartphones to connect to a wireless network or Wi-Fi. However, this is largely a seasonal effect from new iPhone model launches as well as device manufacturing ramping up through the year in support of the holiday shopping frenzy every late autumn and early winter. | Thanks to guidance from mobile chipmakers in recent months, it was no surprise that Apple (NASDAQ: AAPL) reported sluggish iPhone sales for its quarter ended June 2023. More robust, profitable iPhone growth will be a must for Apple stock to justify its high premium of 30 times trailing-12-month earnings (or 28 times free cash flow). Top mobile chip supplier Skyworks Solutions (NASDAQ: SWKS) provides some hints on what could lay ahead. | Thanks to guidance from mobile chipmakers in recent months, it was no surprise that Apple (NASDAQ: AAPL) reported sluggish iPhone sales for its quarter ended June 2023. To this day, the iPhone still represents more than half of all of Apple's revenue ($157 billion of the $294 billion total through the first nine months of Apple's current fiscal year). Apple is responsible for much of this consumer electronics exposure, with 64% of Skyworks' total revenue of $1.07 billion in its own June 2023 quarter tied to Apple (so, about $685 million in sales from Apple). | Thanks to guidance from mobile chipmakers in recent months, it was no surprise that Apple (NASDAQ: AAPL) reported sluggish iPhone sales for its quarter ended June 2023. Betting on something other than iPhone Skyworks Solutions is a top designer and manufacturer of mobile chips -- the stuff that enables devices like smartphones to connect to a wireless network or Wi-Fi. Apple is responsible for much of this consumer electronics exposure, with 64% of Skyworks' total revenue of $1.07 billion in its own June 2023 quarter tied to Apple (so, about $685 million in sales from Apple). | 4 |
127 | 14,341 | 2023-08-11 00:00:00 UTC | Warren Buffett's Latest $1.3 Billion Buy Brings His Total Investment in This Stock to More Than $71 Billion in 5 Years | AAPL | https://www.nasdaq.com/articles/warren-buffetts-latest-%241.3-billion-buy-brings-his-total-investment-in-this-stock-to-more | null | null | There's little question that Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett will go down as one of the greatest investors of our time. In the roughly 58 years since taking the reins at Berkshire Hathaway, he's overseen a greater-than 4,300,000% aggregate return in his company's Class A shares (BRK.A) as well as doubled-up the annualized total return, including dividends paid, of the benchmark S&P 500 (19.8% vs. 9.9%) as of the end of 2022.
This sustained long-term outperformance, coupled with the Oracle of Omaha's willingness to share what factors he looks for in an investment, is why investors are eager to see what Warren Buffett is buying and selling. After all, riding Buffett's coattails has made investors a boatload of money for nearly 60 years.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
Following Warren Buffett's investment activity has been a moneymaking strategy for decades
For the most part, tracking Warren Buffett's trading activity is easy. Institutional investors and money managers with over $100 million in assets under management (AUM) are required to file Form 13F with the Securities and Exchange Commission (SEC) no later than 45 days following the end of a quarter. A 13F provides a snapshot of what Wall Street's brightest minds bought and sold in the most recent quarter.
Though we'll be getting a closer look at Berkshire's second-quarter 13F on Monday, Aug. 14, previous filings from the Oracle of Omaha show that he and his investment team have been piling into a handful of stocks.
For instance, oil stock Occidental Petroleum (NYSE: OXY) has been a consistent buy for Buffett and his investing lieutenants, Ted Weschler and Todd Combs, since the start of 2022. Berkshire has purchased more than 224 million shares of Occidental common stock.
Having more than $14 billion invested in the common stock of an energy company suggests that Buffett and his team expect the spot price of oil to remain elevated. The ongoing war in Ukraine, along with more than three years of capital underinvestment by energy majors tied to COVID-19 uncertainties, has created a tight supply market for oil that may keep the West Texas Intermediate Crude price above historic norms.
This is noteworthy given that Occidental Petroleum generates the bulk of its revenue from drilling. Although it's an integrated operator with downstream chemical plants, it's far more reliant on its upstream operations for success. If the price of crude oil rallies, Occidental Petroleum should disproportionately benefit.
The Oracle of Omaha, Combs, and Weschler also can't stop buying shares of Apple (NASDAQ: AAPL). As of Aug. 14, Wall Street's largest publicly traded company by market cap comprised a whopping 45.5% of Berkshire Hathaway's $366 billion of invested assets.
During Berkshire Hathaway's annual shareholder meeting, Buffett referred to Apple as "a better business than any we own." He certainly didn't make this comment lightly. He values Apple for its phenomenally strong brand, its years of innovation, and the company's steadfastly loyal customer base.
To add, Warren Buffett is also a huge fan of Apple's capital-return program. In addition to doling out one of the world's largest nominal-dollar dividends ($15.1 billion per year), Apple has bought back around $600 billion worth of its common stock since the start of 2013. Not only do buybacks improve earnings per share for companies (like Apple) with steady or growing net income, but they can also increase the ownership stakes of existing investors.
Image source: Getty Images.
The Oracle of Omaha has spent north of $71 billion buying shares of this stock
But here's a news flash that may come as a surprise to a lot of investors: Neither Apple nor Occidental Petroleum is Warren Buffett's most-purchased stock over the past five years. In fact, the company Buffett has piled more than $71 billion into since the start of July 2018 won't be found in Berkshire Hathaway's quarterly 13F filings.
To locate the stock that truly has the Oracle of Omaha's attention, you'll want to pull up page 53 (slide 54 in PDF format) of Berkshire Hathaway's Q2 operating results. That's the page where you'll find the company's share-repurchase activity. That's right...Warren Buffett's favorite stock to buy is none other than his own company, Berkshire Hathaway. Don't you love a good plot twist?
Prior to July 17, 2018, Warren Buffett and Executive Vice Chairman Charlie Munger were hamstrung by one specific component of Berkshire Hathaway's share-repurchase criteria. Specifically, they were only allowed to pull the trigger on buybacks if Berkshire Hathaway's stock traded at or below 120% of book value -- i.e., no more than 20% above its book value, as reported in the most recent quarter. For more than a half-decade leading up to July 2018, the company's stock never fell below this book value threshold, which meant that Berkshire's dynamic duo couldn't conduct any buybacks.
Thankfully, Berkshire Hathaway's Board of Directors made some adjustments. The new criteria to conduct buybacks that was passed on July 17, 2018 allowed Buffett and Munger to repurchase Berkshire Hathaway stock if:
The company has at least $30 billion in cash, cash equivalents, and U.S. Treasuries on its balance sheet.
Buffett and Munger agree that the company's stock is intrinsically cheap.
If these criteria are met, buybacks can be undertaken with no set cap or timeline.
During the recently completed second quarter, Berkshire Hathaway repurchased 1,042 Class A shares (BRK.A) and 2,354,444 Class B shares (BRK.B). Based on the average purchase price of these buybacks as reported by the company, Buffett and his team oversaw $1,302,648,276.48 in repurchases in Q2.
More impressively, this marks the 20th consecutive quarter that Warren Buffett and Charlie Munger have OK'd the repurchase of Berkshire Hathaway stock. Collectively, more than $71 billion worth of stock has been repurchased in 17 days shy of five years.
The way I see it, Berkshire Hathaway's mammoth buyback program serves three key purposes. First, it's a way to reward the company's long-term investors. Just as Berkshire has seen its stake in Apple grow larger over time due to buybacks, reducing Berkshire's outstanding share count through buybacks is increasing the ownership stakes of its faithful shareholders.
Second, reducing Berkshire's outstanding share count via buybacks should increase the company's earnings per share over time. In other words, it's making an already fundamentally attractive stock that much more appealing.
The third reason for such an aggressive share-repurchase program is to emphasize the faith Warren Buffett and Charlie Munger have in the company they've built over many decades. As I've stated previously, Berkshire's investment portfolio is loaded with cyclical businesses. Since the U.S. and global economy spend far more time growing than contracting, it means Berkshire Hathaway is well positioned to take advantage of domestic and global growth over the long run.
Until Berkshire Hathaway's 13Fs prove otherwise, Berkshire Hathaway is Warren Buffett's unquestioned favorite stock to buy.
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Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Oracle of Omaha, Combs, and Weschler also can't stop buying shares of Apple (NASDAQ: AAPL). For instance, oil stock Occidental Petroleum (NYSE: OXY) has been a consistent buy for Buffett and his investing lieutenants, Ted Weschler and Todd Combs, since the start of 2022. The ongoing war in Ukraine, along with more than three years of capital underinvestment by energy majors tied to COVID-19 uncertainties, has created a tight supply market for oil that may keep the West Texas Intermediate Crude price above historic norms. | The Oracle of Omaha, Combs, and Weschler also can't stop buying shares of Apple (NASDAQ: AAPL). The new criteria to conduct buybacks that was passed on July 17, 2018 allowed Buffett and Munger to repurchase Berkshire Hathaway stock if: The company has at least $30 billion in cash, cash equivalents, and U.S. Treasuries on its balance sheet. Just as Berkshire has seen its stake in Apple grow larger over time due to buybacks, reducing Berkshire's outstanding share count through buybacks is increasing the ownership stakes of its faithful shareholders. | The Oracle of Omaha, Combs, and Weschler also can't stop buying shares of Apple (NASDAQ: AAPL). The Oracle of Omaha has spent north of $71 billion buying shares of this stock But here's a news flash that may come as a surprise to a lot of investors: Neither Apple nor Occidental Petroleum is Warren Buffett's most-purchased stock over the past five years. That's right...Warren Buffett's favorite stock to buy is none other than his own company, Berkshire Hathaway. | The Oracle of Omaha, Combs, and Weschler also can't stop buying shares of Apple (NASDAQ: AAPL). The Oracle of Omaha has spent north of $71 billion buying shares of this stock But here's a news flash that may come as a surprise to a lot of investors: Neither Apple nor Occidental Petroleum is Warren Buffett's most-purchased stock over the past five years. That's right...Warren Buffett's favorite stock to buy is none other than his own company, Berkshire Hathaway. | 4 |
128 | 14,349 | 2023-08-10 00:00:00 UTC | Invest Like Warren Buffett with These Stocks & ETFs | AAPL | https://www.nasdaq.com/articles/invest-like-warren-buffett-with-these-stocks-etfs | null | null | (1:30) - How Did Warren Buffett Get Started In Investing?
(7:10) - How Has Berkshire Hathaway’s Investing Changed Over The Years?
(12:20) - Breaking Down Warren Buffett’s Current Portfolio Holdings
(19:30) - Creating Your Own Mini Berkshire Hathaway Portfolio: What Stocks Should You Consider?
(23:40) - First Trust RBA American Industrial Renaissance ETF: AIRR
(28:50) - Episode Roundup: FAST,MTZ, URI, MOAT, VOO, IVV, SPLG, QUS
Podcast@Zacks.com
In this episode of ETF Spotlight, I speak with Tracey Ryniec, Zacks Senior Equity Strategist, about investing like Warren Buffett, one of the greatest and most respected investors of all time.
Berkshire Hathaway (BRK.A) reported excellent earnings last week, sending its class A shares to an all-time high. The stock is up more than 25,000 times since Buffett took control of the company in 1965, according to Barron's.
Most investors would like to emulate Buffett's investing style in their portfolios, which is not easy, but we can certainly learn from his strategies. In the past, Buffett invested in undervalued companies with great potential, which he called "cigar butts." However, his thinking later evolved to "it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
The Oracle of Omaha avoided investing in tech companies earlier in his career but changed his stance later. Apple AAPL, which is now Berkshire's largest stock investment, was praised by Buffett as "a better business than any we own."
The SPDR MSCI USA StrategicFactors ETF QUS seeks to invest in high-quality firms with durable balance sheets and stable cash flows, trading at reasonable valuations.
The legendary investor likes companies with "economic moats," that allow a company to outperform others in the same industry over time. The VanEck Morningstar Wide Moat ETF MOAT invests in attractively priced companies with sustainable competitive advantages.
Buffett has long recommended that most investors should stick with low-cost index funds. The iShares Core S&P 500 ETF IVV and Vanguard S&P 500 ETF VOO charge just 0.03% each, but SPDR Portfolio S&P 500 ETF SPLG's new fee of 0.02% makes it the cheapest in the space.
Fastenal FAST, MasTec MTZ and United Rentals URI are among Berkshire-like companies that investors may want to consider.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@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, which is now Berkshire's largest stock investment, was praised by Buffett as "a better business than any we own." Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Fastenal Company (FAST) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.A) : Free Stock Analysis Report United Rentals, Inc. (URI) : Free Stock Analysis Report MasTec, Inc. (MTZ) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports VanEck Morningstar Wide Moat ETF (MOAT): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports To read this article on Zacks.com click here. (23:40) - First Trust RBA American Industrial Renaissance ETF: AIRR (28:50) - Episode Roundup: FAST,MTZ, URI, MOAT, VOO, IVV, SPLG, QUS Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Tracey Ryniec, Zacks Senior Equity Strategist, about investing like Warren Buffett, one of the greatest and most respected investors of all time. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Fastenal Company (FAST) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.A) : Free Stock Analysis Report United Rentals, Inc. (URI) : Free Stock Analysis Report MasTec, Inc. (MTZ) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports VanEck Morningstar Wide Moat ETF (MOAT): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL, which is now Berkshire's largest stock investment, was praised by Buffett as "a better business than any we own." (23:40) - First Trust RBA American Industrial Renaissance ETF: AIRR (28:50) - Episode Roundup: FAST,MTZ, URI, MOAT, VOO, IVV, SPLG, QUS Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Tracey Ryniec, Zacks Senior Equity Strategist, about investing like Warren Buffett, one of the greatest and most respected investors of all time. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Fastenal Company (FAST) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.A) : Free Stock Analysis Report United Rentals, Inc. (URI) : Free Stock Analysis Report MasTec, Inc. (MTZ) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports VanEck Morningstar Wide Moat ETF (MOAT): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL, which is now Berkshire's largest stock investment, was praised by Buffett as "a better business than any we own." (23:40) - First Trust RBA American Industrial Renaissance ETF: AIRR (28:50) - Episode Roundup: FAST,MTZ, URI, MOAT, VOO, IVV, SPLG, QUS Podcast@Zacks.com In this episode of ETF Spotlight, I speak with Tracey Ryniec, Zacks Senior Equity Strategist, about investing like Warren Buffett, one of the greatest and most respected investors of all time. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Fastenal Company (FAST) : Free Stock Analysis Report Berkshire Hathaway Inc. (BRK.A) : Free Stock Analysis Report United Rentals, Inc. (URI) : Free Stock Analysis Report MasTec, Inc. (MTZ) : Free Stock Analysis Report Vanguard S&P 500 ETF (VOO): ETF Research Reports VanEck Morningstar Wide Moat ETF (MOAT): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports SPDR MSCI USA StrategicFactors ETF (QUS): ETF Research Reports SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL, which is now Berkshire's largest stock investment, was praised by Buffett as "a better business than any we own." (7:10) - How Has Berkshire Hathaway’s Investing Changed Over The Years? | 4 |
129 | 14,390 | 2023-08-09 00:00:00 UTC | A Bull Market Is Coming: 2 Warren Buffett Stocks to Buy and Hold Forever | AAPL | https://www.nasdaq.com/articles/a-bull-market-is-coming%3A-2-warren-buffett-stocks-to-buy-and-hold-forever | null | null | Few investors are better known than Warren Buffett, who is widely regarded as the greatest stock picker of all time. One of Buffett's signature qualities is his long-term approach to investing. He has been quoted as saying that his favorite holding period is forever. It's not surprising then that his conglomerate, Berkshire Hathaway, has an investment portfolio full of stocks worth holding on to for good.
Let's discuss two of them: Johnson & Johnson (NYSE: JNJ) and Apple (NASDAQ: AAPL). Whether a bull market is on the way or already present, here's why investors can safely park both stocks in their portfolios and forget about them through the next market run and well beyond.
JNJ data by YCharts
1. Johnson & Johnson
Johnson & Johnson doesn't feature prominently among Buffett's holdings -- that is, it isn't among the largest. Still, the drugmaker found its way there for a reason. J&J is the epitome of longevity in business. While few companies last over a couple of decades, Johnson & Johnson's rich history spans more than 100 years.
There are at least two factors that explain Johnson & Johnson's durability. First, as a healthcare company, it markets products that are always in demand, such as drugs and medical devices. Second, Johnson & Johnson has successfully created an internal culture of innovation. The company spends billions of dollars every year on research and development, typically leading to it constantly developing newer and better products.
These two factors should continue to drive Johnson & Johnson shares higher. The need for the products it sells won't subside anytime soon. It will only increase due to the world's aging population. On the other hand, Johnson & Johnson should remain committed to innovation. The dozens of products in its pipeline are a great sign of that.
Within its medtech segment, the company is looking to profit from the exciting robotic-assisted surgery (RAS) market with its robot device, Ottava. RAS devices allow physicians to perform minimally invasive surgeries with advantages such as less cutting of the skin, less bleeding and scarring, faster recovery times, and shorter hospital stays. Intuitive Surgical currently dominates this field, but there is an important long-term opportunity for Johnson & Johnson to exploit.
And then there is the company's dividend, which it has raised for the last 61 years straight. That makes Johnson & Johnson a Dividend King. The company is unlikely to risk ending that impressive streak, so expect more payout raises regularly.
Johnson & Johnson isn't without its risks. The company's recent legal challenges are particularly noteworthy. But in my view, they do little to hinder its long-term prospects. Johnson & Johnson is an excellent stock to buy and hold through bull and bear markets and should continue to deliver steady financial results.
2. Apple
Apple is probably Buffett's favorite stock, perhaps other than Berkshire Hathaway itself. While the company doesn't offer necessary goods, it has built a powerful reputation, brand name, and ecosystem. That's why people continue to buy Apple's costly gadgets even when the economy isn't doing so well. The company hasn't always delivered blowout results over the past two years, with its revenue even dropping slightly in its latest quarterly update.
But given that hardly anyone truly needs a new iPhone, not to mention the fact that there are plenty of cheaper alternatives, Apple's performance amid all the economic problems consumers have faced is impressive. That's one of the reasons why it is an outstanding stock to buy and hold.
Here is another: Apple's installed base of more than 2 billion devices. And it is hard to leave once you're plugged into the company's network. That's because Apple offers a range of services that are easy to access on its devices but not so easy to use once a customer jumps ship. Something as seemingly simple as transferring data and pictures from an iPhone to an Android device can be a headache.
In other words, Apple benefits from high switching costs. With the vast number of devices in its ecosystem, the company will continue expanding its high-margin services segment to squeeze more money out of its massive user base. The company has made solid headway into the fintech business, for instance. Elsewhere, it is also delving into health, notably by trying to integrate glucose monitoring into the Apple Watch.
This would likely represent a relatively small opportunity (in terms of revenue potential) for Apple, but the important point is that the company is working on more and more ways to serve its user base better. The company should remain an innovator that records excellent financial results for a long time, so investors can safely buy its stock and hold on to it for good.
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Prosper Junior Bakiny has positions in Intuitive Surgical and Johnson & Johnson. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Intuitive Surgical. The Motley Fool recommends Johnson & Johnson. 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. | Let's discuss two of them: Johnson & Johnson (NYSE: JNJ) and Apple (NASDAQ: AAPL). RAS devices allow physicians to perform minimally invasive surgeries with advantages such as less cutting of the skin, less bleeding and scarring, faster recovery times, and shorter hospital stays. But given that hardly anyone truly needs a new iPhone, not to mention the fact that there are plenty of cheaper alternatives, Apple's performance amid all the economic problems consumers have faced is impressive. | Let's discuss two of them: Johnson & Johnson (NYSE: JNJ) and Apple (NASDAQ: AAPL). Johnson & Johnson is an excellent stock to buy and hold through bull and bear markets and should continue to deliver steady financial results. The company should remain an innovator that records excellent financial results for a long time, so investors can safely buy its stock and hold on to it for good. | Let's discuss two of them: Johnson & Johnson (NYSE: JNJ) and Apple (NASDAQ: AAPL). Johnson & Johnson Johnson & Johnson doesn't feature prominently among Buffett's holdings -- that is, it isn't among the largest. Johnson & Johnson is an excellent stock to buy and hold through bull and bear markets and should continue to deliver steady financial results. | Let's discuss two of them: Johnson & Johnson (NYSE: JNJ) and Apple (NASDAQ: AAPL). Johnson & Johnson isn't without its risks. Apple Apple is probably Buffett's favorite stock, perhaps other than Berkshire Hathaway itself. | 4 |
130 | 14,406 | 2023-08-08 00:00:00 UTC | AAPL Quantitative Stock Analysis - Warren Buffett | AAPL | https://www.nasdaq.com/articles/aapl-quantitative-stock-analysis-warren-buffett-4 | null | null | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
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.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
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About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
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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. | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. | Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL). | Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL). | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. | 2 |
131 | 14,429 | 2023-08-07 00:00:00 UTC | Stock Market News for Aug 7, 2023 | AAPL | https://www.nasdaq.com/articles/stock-market-news-for-aug-7-2023 | null | null | U.S. stocks closed lower on Friday, with the Nasdaq and S&P 500 recording their fourth straight session of losses and notching their worst weeks since March as investors digested July jobs data and the latest corporate earnings from some of the biggest tech companies. All three major indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) shed 0.4% or 150.27 points to end at 35,065.62 points, recording its third straight day of losses.
The S&P 500 slid 0.5% or 23.86 points to close at 4,478.03 points, notching their fourth consecutive day of losses. Tech and utility stocks were the biggest losers.
The Technology Select Sector SPDR (XLK) declined 1.24%. The Utilities Select Sector SPDR (XLU) fell 1.2%, while the Consumer Staples Select Sector SPDR (XLP) dropped 1%. Eight of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq declined 0.4% or 50.48 points to finish at 13,902 points, falling for the fourth straight day.
The fear-gauge CBOE Volatility Index (VIX) was up 7.41% to 17.10. Advancers outnumbered decliners on the NYSE by a 1.22-to-1 ratio. On Nasdaq, a 1.14-to-1 ratio favored declining issues. A total of 11.39 billion shares were traded on Friday, higher than the last 20-session average of 10.87 billion.
Investors Parse Jobs Report, Big Tech Earnings
Stocks fell on Friday after initial gains as fresh labor-market data showed that the U.S. economy continued to add jobs in massive numbers in July. Data also showed that average hourly wages increased in July.
Besides, the unemployment rate also fell in July, according to the Bureau of Labor Statistics. Although the number of jobs created in July was softer than in June, it is still high. Slower job growth has raised hopes that the Fed's aggressive rate hike stance has been having its impact and with inflation slowing, the economy could have a softer landing.
However, many are also concerned that the rise in hourly wages might raise worries for the Fed. Treasury yields fell following the release of the jobs report. The 10-year Treasury Yield fell 12.06 basis points to 4.06%, the largest daily drop since May.
Investors are now waiting for the July inflation data, which is scheduled for release next week.
Investors also digested corporate earnings from a batch of companies. Shares of Amazon.com, Inc. (AMZN) jumped 8.3%, its highest level in almost a year after the company reported a solid earnings beat. Amazon reported quarterly earnings of $0.63 per share, beating the Zacks Consensus Estimate of $0.34 per share. Amazon has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Apple, Inc’s (AAPL) shares fell 4.8% after the iPhone maker reported lower revenues compared to the year-ago quarter. Apple reported third-quarter fiscal 2023 earnings of $1.26 per share, beating the Zacks Consensus Estimate of $1.19 per share. However, its net sales totaled $81.8 billion compared to $82.96 billion year-ago quarter, declining 1.4%.
Economic Data
The Bureau of Labor Statistics said that the U.S. economy added 187,000 jobs in July, lower than the economists’ expectations of 200,000. However, the unemployment rate also dropped to 3.5% in July from June’s 3.6%.
Although job additions softened, hourly wages increased 0.4% in July, increasing 4.4% from the past year.
Weekly Roundup
All the major indexes ended lower for the week. The Dow closed 1.1% down for the week. The S&P 500 ended 2.3% lower, while the Nasdaq finished 2.8% down for the week. The Dow and the S&P 500 their three straight weeks of gains. The S&P 500 and Nasdaq recorded their biggest weekly percentage losses since March.
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It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent 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, Inc’s (AAPL) shares fell 4.8% after the iPhone maker reported lower revenues compared to the year-ago quarter. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks closed lower on Friday, with the Nasdaq and S&P 500 recording their fourth straight session of losses and notching their worst weeks since March as investors digested July jobs data and the latest corporate earnings from some of the biggest tech companies. | Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple, Inc’s (AAPL) shares fell 4.8% after the iPhone maker reported lower revenues compared to the year-ago quarter. U.S. stocks closed lower on Friday, with the Nasdaq and S&P 500 recording their fourth straight session of losses and notching their worst weeks since March as investors digested July jobs data and the latest corporate earnings from some of the biggest tech companies. | Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple, Inc’s (AAPL) shares fell 4.8% after the iPhone maker reported lower revenues compared to the year-ago quarter. U.S. stocks closed lower on Friday, with the Nasdaq and S&P 500 recording their fourth straight session of losses and notching their worst weeks since March as investors digested July jobs data and the latest corporate earnings from some of the biggest tech companies. | Apple, Inc’s (AAPL) shares fell 4.8% after the iPhone maker reported lower revenues compared to the year-ago quarter. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. U.S. stocks closed lower on Friday, with the Nasdaq and S&P 500 recording their fourth straight session of losses and notching their worst weeks since March as investors digested July jobs data and the latest corporate earnings from some of the biggest tech companies. | null |
132 | 14,439 | 2023-08-06 00:00:00 UTC | Wall St Week Ahead-Inflation report, bond yields in focus as U.S. stocks rally pauses | AAPL | https://www.nasdaq.com/articles/wall-st-week-ahead-inflation-report-bond-yields-in-focus-as-u.s.-stocks-rally-pauses-0 | null | null | By Carolina Mandl
NEW YORK, Aug 4 (Reuters) - A highly awaited inflation report and elevated bond yields offer the latest test to a U.S. stock rally that has delivered hefty gains this year.
The benchmark S&P 500 index is up 16.6% year to date, fueled by an improving economic outlook, excitement over developments in artificial intelligence and signs that the Federal Reserve is close to ending its market-bruising U.S. interest rate hikes.
Stocks' near-term trajectory, however, may depend on whether next week's inflation report shows consumer prices remaining subdued. Investors are also closely watching the path of Treasury yields, which rattled equity markets in recent days by rising to fresh year highs. The S&P 500 fell 2.27% this week, its biggest weekly decline since March 10.
"After a massive run-up in equities ... any sort of blip in terms of any of the macro data (is) probably going to be a reason for people to take profits," said Jack Janasiewicz, lead portfolio strategist and portfolio manager at Natixis Investment Managers.
While consumer prices have not been rising as fast lately, some investors worry stubborn inflation may force the Fed to leave rates at current levels longer than expected. The U.S. reports consumer price data on Aug. 10.
On Friday, U.S. employment data showed the economy maintained a moderate pace of job growth. Yet wages grew at a faster-than-expected annual clip of 4.4%. Many fear that is too high to be consistent with the Fed's 2% inflation target.
Janasiewicz of Natixis said a stronger-than-expected consumer price reading next week could spark a decline of up to 5% in the S&P 500. He said such a drop would be “healthy” given the index's big runup this year.
Other investors have been taking profits. Concerns over rising stock valuations pushed Aaron Chan, a managing partner at equity hedge fund Recurve Capital, to trim stakes in shares of companies including Amazon.com AMZN.O, which is up 68% this year, and Norwegian Cruise Line NCLH.N, up 47%.
The S&P 500 is trading at about 19.5 times forward 12-month earnings estimates, much pricier than its long-term average of about 15.6 times, according to Refinitiv Datastream.
Prices for Brent crude were on track for their sixth straight week of gains, up roughly 17% in that period on signs of tightening global supply and rising demand.
"As long as CPI remains flat to trending down, the market will accept it thoroughly," said Ann Miletti, Allspring's head of active equity. "If we do see upticks, it is really dependent on where the upticks are and whether or not investors believe they're temporary in nature."
Miletti is growing more bullish on corners of the market that have underperformed, including small cap stocks.
A stronger-than-expected inflation number next week could also boost Treasury yields further. Yields, which move inversely to bond prices, spiked this week following a downgrade of the U.S. credit rating by Fitch and on the prospect of a flood of Treasury supply in the third quarter. The benchmark 10-year yield fell sharply after Friday's jobs report but remained above 4%, a level last seen in November 2022.
Rising yields on Treasuries, viewed as among the world's safest investments because they are backed by the U.S. government, can dull the allure of stocks. Projected company cash flows are also worth less in current dollars when interest rates rise.
"The move in the 10-year U.S. Treasury yield above the 4% level will likely act as a headwind to further expansion in already lofty equity valuations," Keith Lerner, co-chief investment officer at Truist Advisory Services, wrote this week.
There is still plenty of good news to keep the rally going. Earnings from Wall Street heavyweights AmazonAMZN.O and Google-parent AlphabetGOOGL.O have exceeded analysts expectations, though disappointing earnings from Apple AAPL.O sent the stock tumbling 4.8% on Friday.
More broadly, more than 79% of S&P 500 companies have beaten estimates for the second quarter so far, the highest beat rate since the third quarter of 2021, data from Refinitiv I/B/E/S showed.
Still, some market participants believe investors may have to endure some near-term turbulence.
"Our expectation is that the market takes some time to digest the strong year-to-date gains and moves into a choppy period," Lerner said.
(Reporting by Carolina Mandl in New York; Additional reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David Gregorio)
((carolina.mandl@thomsonreuters.com; +1 (917) 891-4931;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earnings from Wall Street heavyweights AmazonAMZN.O and Google-parent AlphabetGOOGL.O have exceeded analysts expectations, though disappointing earnings from Apple AAPL.O sent the stock tumbling 4.8% on Friday. By Carolina Mandl NEW YORK, Aug 4 (Reuters) - A highly awaited inflation report and elevated bond yields offer the latest test to a U.S. stock rally that has delivered hefty gains this year. The benchmark S&P 500 index is up 16.6% year to date, fueled by an improving economic outlook, excitement over developments in artificial intelligence and signs that the Federal Reserve is close to ending its market-bruising U.S. interest rate hikes. | Earnings from Wall Street heavyweights AmazonAMZN.O and Google-parent AlphabetGOOGL.O have exceeded analysts expectations, though disappointing earnings from Apple AAPL.O sent the stock tumbling 4.8% on Friday. Stocks' near-term trajectory, however, may depend on whether next week's inflation report shows consumer prices remaining subdued. "After a massive run-up in equities ... any sort of blip in terms of any of the macro data (is) probably going to be a reason for people to take profits," said Jack Janasiewicz, lead portfolio strategist and portfolio manager at Natixis Investment Managers. | Earnings from Wall Street heavyweights AmazonAMZN.O and Google-parent AlphabetGOOGL.O have exceeded analysts expectations, though disappointing earnings from Apple AAPL.O sent the stock tumbling 4.8% on Friday. By Carolina Mandl NEW YORK, Aug 4 (Reuters) - A highly awaited inflation report and elevated bond yields offer the latest test to a U.S. stock rally that has delivered hefty gains this year. Stocks' near-term trajectory, however, may depend on whether next week's inflation report shows consumer prices remaining subdued. | Earnings from Wall Street heavyweights AmazonAMZN.O and Google-parent AlphabetGOOGL.O have exceeded analysts expectations, though disappointing earnings from Apple AAPL.O sent the stock tumbling 4.8% on Friday. Stocks' near-term trajectory, however, may depend on whether next week's inflation report shows consumer prices remaining subdued. The U.S. reports consumer price data on Aug. 10. | null |
133 | 14,456 | 2023-08-05 00:00:00 UTC | 3 Red-Hot Tech Stocks | AAPL | https://www.nasdaq.com/articles/3-red-hot-tech-stocks | null | null | There are some big-name stocks that have performed incredibly well in 2023. But they're getting very expensive. In this video, Travis Hoium tells why at least two of these hot stocks may be too expensive to buy today.
*Stock prices used were end-of-day prices of Aug. 1, 2023. The video was published on Aug. 2, 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. Travis Hoium has positions in Apple and Shopify. The Motley Fool has positions in and recommends Apple, Meta Platforms, Nvidia, and Shopify. 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 tells why at least two of these hot stocks may be too expensive to buy today. 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 August 1, 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. | After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Travis Hoium has positions in Apple and Shopify. The Motley Fool has positions in and recommends Apple, Meta Platforms, Nvidia, and Shopify. | In this video, Travis Hoium tells why at least two of these hot stocks may be too expensive to buy today. 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 August 1, 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. | In this video, Travis Hoium tells why at least two of these hot stocks may be too expensive to buy today. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Nvidia wasn't one of them! Their opinions remain their own and are unaffected by The Motley Fool. | null |
134 | 14,472 | 2023-08-04 00:00:00 UTC | US STOCKS-U.S. stocks rises on Amazon boost; bond yields fall | AAPL | https://www.nasdaq.com/articles/us-stocks-u.s.-stocks-rises-on-amazon-boost-bond-yields-fall | null | null | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
U.S. jobs growth slows in July
IPhone sales slump weighs on Apple
Amazon sees bright Q3 on resilient cloud sales, shopping trends
Fortinet drops on forecast cut
Indexes up: Dow 0.55%, S&P 500 0.51%, Nasdaq 0.86%
Updated at 1:53 p.m. ET/5:53 p.m. GMT
By Echo Wang
Aug 4 (Reuters) - Wall Street gained and bond yields fell on Friday after July jobs data showed a slowing in the U.S. labor market with wage gains.
U.S. employers added 187,000 jobs in July, according to the Labor Department's employment report on Friday. Data for June additions was revised lower to 185,000 jobs, from 209,000 reported previously.
“There’s been this building narrative as of recent.. (that) the soft landing is a sure thing, the economy is not going to slow materially”, said Charlie Ripley, senior investment strategist for Allianz Investment Management in Minneapolis, “Loosening up of the labor market is a sign that shows that the economy is slowing to some extent.”
Average hourly earnings rose 0.4% in July, unchanged from the previous month, exceeding expectations, taking the year-on-year increase in wages to 4.4%.
The yield on the 10-year benchmark note US10YT=RR dipped on Friday after the jobs data, but still remained above 4%, partly boosting some megacap stocks.
“This buildup that nonfarm payrolls were going to exceed expectations - Clearly, it didn't - drove the rest of the bond market that we're seeing”, said Ripley,"we are kind of seeing equity market reaction to that as well. It's a little bit more bullish for equities.”
Giving solid boost to the S&P 500 index, Amazon.com shares AMZN.O surged 10.5% after the company issued an upbeat third-quarter outlook. Apple's shares AAPL.Odipped 3.2% as the iPhone maker forecast a continued slide in sales.
Shares of peers Microsoft MSFT.O, Alphabet GOOGL.O and Snowflake SNOW.N rose between 1% and 5% after Amazon's cloud business segment beat sales estimates.
At 1:53 p.m. ET, the Dow Jones Industrial Average .DJI rose 192.75 points, or 0.55%, to 35,408.64, the S&P 500 .SPX gained 23.17 points, or 0.51%, to 4,525.06 and the Nasdaq Composite .IXIC added 120.23 points, or 0.86%, to 14,079.94.
All three major indexes were on course to end the week lower, with the tech-heavy Nasdaq leading losses.
Stocks closed marginally lower on Thursday, weighed down by the last batch of economic data and some disappointing earnings.
Of the 422 companies in the S&P 500 that have reported quarterly earnings as of Friday, 79.1% have beat analysts' estimates, according to Refinitiv data.
Carl Icahn-owned investment firm Icahn EnterprisesIEP.O shed 23.3% after the company halved its quarterly payout, months after short-seller Hindenburg Research accused it of operating a "Ponzi-like" structure to pay dividends.
Fortinet FTNT.Otumbled24.4% after the cybersecurity firm cut its annual revenue forecast as spending from enterprise clients remained tight amid a turbulent economy.
Shares of Tupperware TUP.N, known for its plastic airtight storage containers and bowls, rallied 48.3% after the company finalized an agreement with its lenders to restructure its debt obligations in an effort to turn around the business.
Amgen AMGN.O added 6.4% after it reported a higher quarterly profit on strong sales of its cholesterol, osteoporosis and other drugs.
DraftKings' DKNG.O shares rose 2% after the sports-betting firm raised its fiscal year 2023 revenue outlook.
Advancing issues outnumbered declining ones on the NYSE by a 2.89-to-1 ratio; on Nasdaq, a 1.63-to-1 ratio favored advancers.
The S&P 500 posted 19 new 52-week highs and 6 new lows; the Nasdaq Composite recorded 52 new highs and 69 new lows.
Monthly change in U.S. jobs https://tmsnrt.rs/3OFX0Zi
(Reporting by Echo Wang in New York, Shubham Batra and Bansari Mayur Kamdar in Bengaluru; Editing by Savio D'Souza, Shounak Dasgupta, Shinjini Ganguli and Louise Heavens)
((Shubham.Batra@thomsonreuters.com))
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 shares AAPL.Odipped 3.2% as the iPhone maker forecast a continued slide in sales. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window U.S. jobs growth slows in July IPhone sales slump weighs on Apple Amazon sees bright Q3 on resilient cloud sales, shopping trends Fortinet drops on forecast cut Indexes up: Dow 0.55%, S&P 500 0.51%, Nasdaq 0.86% Updated at 1:53 p.m. ET/5:53 p.m. GMT By Echo Wang Aug 4 (Reuters) - Wall Street gained and bond yields fell on Friday after July jobs data showed a slowing in the U.S. labor market with wage gains. Carl Icahn-owned investment firm Icahn EnterprisesIEP.O shed 23.3% after the company halved its quarterly payout, months after short-seller Hindenburg Research accused it of operating a "Ponzi-like" structure to pay dividends. | Apple's shares AAPL.Odipped 3.2% as the iPhone maker forecast a continued slide in sales. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window U.S. jobs growth slows in July IPhone sales slump weighs on Apple Amazon sees bright Q3 on resilient cloud sales, shopping trends Fortinet drops on forecast cut Indexes up: Dow 0.55%, S&P 500 0.51%, Nasdaq 0.86% Updated at 1:53 p.m. ET/5:53 p.m. GMT By Echo Wang Aug 4 (Reuters) - Wall Street gained and bond yields fell on Friday after July jobs data showed a slowing in the U.S. labor market with wage gains. U.S. employers added 187,000 jobs in July, according to the Labor Department's employment report on Friday. | Apple's shares AAPL.Odipped 3.2% as the iPhone maker forecast a continued slide in sales. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window U.S. jobs growth slows in July IPhone sales slump weighs on Apple Amazon sees bright Q3 on resilient cloud sales, shopping trends Fortinet drops on forecast cut Indexes up: Dow 0.55%, S&P 500 0.51%, Nasdaq 0.86% Updated at 1:53 p.m. ET/5:53 p.m. GMT By Echo Wang Aug 4 (Reuters) - Wall Street gained and bond yields fell on Friday after July jobs data showed a slowing in the U.S. labor market with wage gains. “There’s been this building narrative as of recent.. (that) the soft landing is a sure thing, the economy is not going to slow materially”, said Charlie Ripley, senior investment strategist for Allianz Investment Management in Minneapolis, “Loosening up of the labor market is a sign that shows that the economy is slowing to some extent.” Average hourly earnings rose 0.4% in July, unchanged from the previous month, exceeding expectations, taking the year-on-year increase in wages to 4.4%. | Apple's shares AAPL.Odipped 3.2% as the iPhone maker forecast a continued slide in sales. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window U.S. jobs growth slows in July IPhone sales slump weighs on Apple Amazon sees bright Q3 on resilient cloud sales, shopping trends Fortinet drops on forecast cut Indexes up: Dow 0.55%, S&P 500 0.51%, Nasdaq 0.86% Updated at 1:53 p.m. ET/5:53 p.m. GMT By Echo Wang Aug 4 (Reuters) - Wall Street gained and bond yields fell on Friday after July jobs data showed a slowing in the U.S. labor market with wage gains. Of the 422 companies in the S&P 500 that have reported quarterly earnings as of Friday, 79.1% have beat analysts' estimates, according to Refinitiv data. | null |
135 | 14,525 | 2023-08-03 00:00:00 UTC | US STOCKS-S&P 500, Dow slip in volatile session as yields rise, earnings disappoint | AAPL | https://www.nasdaq.com/articles/us-stocks-sp-500-dow-slip-in-volatile-session-as-yields-rise-earnings-disappoint | null | null | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Moderna sees up to $8 bln in 2023 COVID shot sales, shares up
Gloomy Spirit, Expedia results drag travel stocks lower
PayPal drops after weak Q2 margins
Qualcomm tumbles on signaling more pain from smartphone slump
Indexes: Dow off 0.13%, S&P slips 0.18%, Nasdaq up 0.05%
Updated at 11:33 a.m. ET/1533 GMT
By Shubham Batra and Bansari Mayur Kamdar
Aug 3 (Reuters) - The Dow and the S&P 500 slipped in choppy trading on Thursday as a jump in bonds yields, downbeat corporate earnings and a slew of economic data pointing to stubborn inflation kept investors on edge.
Market participants have been keeping a close watch on data as they fear the Federal Reserve may stick to its rate-hike path if it fails to bring inflation within its targeted range.
A report on Thursday showed the number of Americans filing new claims for unemployment benefits rose slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight.
Another report showed the U.S. services sector slowed in July, but businesses faced higher prices for inputs as demand continued to hold up, suggesting a long and slow road to low inflation.
The yield on the 10-year benchmark note rose to 4.169% after the data to a nine-month high, extending its climb from a day earlier when Fitch's downgrade of top-tier U.S. credit rating and strong private employment data supported its upward move.
All eyes are now on July's employment report, which is scheduled to be released on Friday.
"What financial markets have been anticipating is that the Fed has completed its rate hike campaign," said Quincy Krosby, chief global strategist at LPL Financial.
"With the underlying strength in the economy coupled with prices inching higher, the pullback in the market may need to see yields on the 10-year Treasury ease in order to restore momentum."
Richmond Federal Reserve President Thomas Barkin said on Thursday U.S. inflation remained too high, although recent readings indicated an easing of price pressures.
At 11:33 a.m. ET, the Dow Jones Industrial Average .DJI was down 46.72 points, or 0.13%, at 35,235.80, the S&P 500 .SPX was down 8.34 points, or 0.18%, at 4,505.05, and the Nasdaq Composite .IXIC was up 6.53 points, or 0.05%, at 13,979.98.
The Cboe Volatility Index .VIX, Wall Street's fear gauge, briefly hit a two-month high and was last up at 16.33.
Earnings are also in focus, with Apple AAPL.Oand Amazon.com AMZN.O due to report quarterly results after market close.
The iPhone maker slipped 0.3%, while the e-commerce giant added 0.6%, respectively.
Second-quarter earnings are now expected to fall 5% from a year earlier, according to Refinitiv data.
QualcommQCOM.O tumbled 10.2% after a gloomy forecast signaled more pain for the biggest maker of smartphone chips from the ongoing slump in the consumer electronics market.
PayPal HoldingsPYPL.O shed 10.7% as investors were disappointed by the payments firm's quarterly operating margin, even as executives said they expect improvement towards the end of the year.
U.S. travel stocks fell on downbeat quarterly reports from Spirit Airlines SAVE.N and Expedia EXPE.O that amplified concerns domestic demand may be easing after a strong rebound from pandemic lows.
Meanwhile, ModernaMRNA.O gained 1.1% as the company raised its annual forecast for COVID-19 vaccine sales to up to $8 billion.
Declining issues outnumbered advancers for a 2.08-to-1 ratio on the NYSE and a 1.28-to-1 ratio on the Nasdaq.
The S&P index recorded nine new 52-week highs and four new lows, while the Nasdaq recorded 37 new highs and 63 new lows.
(Reporting by Shubham Batra and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva)
((Shubham.Batra@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earnings are also in focus, with Apple AAPL.Oand Amazon.com AMZN.O due to report quarterly results after market close. Moderna sees up to $8 bln in 2023 COVID shot sales, shares up Gloomy Spirit, Expedia results drag travel stocks lower PayPal drops after weak Q2 margins Qualcomm tumbles on signaling more pain from smartphone slump Indexes: Dow off 0.13%, S&P slips 0.18%, Nasdaq up 0.05% Updated at 11:33 a.m. ET/1533 GMT By Shubham Batra and Bansari Mayur Kamdar Aug 3 (Reuters) - The Dow and the S&P 500 slipped in choppy trading on Thursday as a jump in bonds yields, downbeat corporate earnings and a slew of economic data pointing to stubborn inflation kept investors on edge. A report on Thursday showed the number of Americans filing new claims for unemployment benefits rose slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight. | Earnings are also in focus, with Apple AAPL.Oand Amazon.com AMZN.O due to report quarterly results after market close. Moderna sees up to $8 bln in 2023 COVID shot sales, shares up Gloomy Spirit, Expedia results drag travel stocks lower PayPal drops after weak Q2 margins Qualcomm tumbles on signaling more pain from smartphone slump Indexes: Dow off 0.13%, S&P slips 0.18%, Nasdaq up 0.05% Updated at 11:33 a.m. ET/1533 GMT By Shubham Batra and Bansari Mayur Kamdar Aug 3 (Reuters) - The Dow and the S&P 500 slipped in choppy trading on Thursday as a jump in bonds yields, downbeat corporate earnings and a slew of economic data pointing to stubborn inflation kept investors on edge. (Reporting by Shubham Batra and Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva) ((Shubham.Batra@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Earnings are also in focus, with Apple AAPL.Oand Amazon.com AMZN.O due to report quarterly results after market close. Moderna sees up to $8 bln in 2023 COVID shot sales, shares up Gloomy Spirit, Expedia results drag travel stocks lower PayPal drops after weak Q2 margins Qualcomm tumbles on signaling more pain from smartphone slump Indexes: Dow off 0.13%, S&P slips 0.18%, Nasdaq up 0.05% Updated at 11:33 a.m. ET/1533 GMT By Shubham Batra and Bansari Mayur Kamdar Aug 3 (Reuters) - The Dow and the S&P 500 slipped in choppy trading on Thursday as a jump in bonds yields, downbeat corporate earnings and a slew of economic data pointing to stubborn inflation kept investors on edge. A report on Thursday showed the number of Americans filing new claims for unemployment benefits rose slightly last week, while layoffs dropped to an 11-month low in July as labor market conditions remain tight. | Earnings are also in focus, with Apple AAPL.Oand Amazon.com AMZN.O due to report quarterly results after market close. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Moderna sees up to $8 bln in 2023 COVID shot sales, shares up Gloomy Spirit, Expedia results drag travel stocks lower PayPal drops after weak Q2 margins Qualcomm tumbles on signaling more pain from smartphone slump Indexes: Dow off 0.13%, S&P slips 0.18%, Nasdaq up 0.05% Updated at 11:33 a.m. ET/1533 GMT By Shubham Batra and Bansari Mayur Kamdar Aug 3 (Reuters) - The Dow and the S&P 500 slipped in choppy trading on Thursday as a jump in bonds yields, downbeat corporate earnings and a slew of economic data pointing to stubborn inflation kept investors on edge. | null |
136 | 14,573 | 2023-08-02 00:00:00 UTC | INSIGHT-World battles to loosen China's grip on vital rare earths for clean energy transition | AAPL | https://www.nasdaq.com/articles/insight-world-battles-to-loosen-chinas-grip-on-vital-rare-earths-for-clean-energy | null | null | By Ernest Scheyder and Eric Onstad
Aug 2 (Reuters) - Refining rare earths for the green energy transition is hard. Just ask MP Materials and Lynas.
The world's two biggest rare earths companies outside of China are facing challenges turning rock from their mines into the building blocks for magnets used across the global economy, from Apple's AAPL.O iPhone to Tesla's TSLA.O Model 3 to Lockheed Martin's LMT.N F-35 fighter jet.
The West's push to develop independent supplies of critical minerals took on greater urgency after Beijing imposed export controls last month on the strategic metals gallium and germanium, raising global fears that China could block exports of rare earths or processing technology next.
Recent struggles by MP MP.N, Lynas LYC.AX and other companies to refine their own rare earths highlight the difficult task the rest of the world faces to break China's stranglehold on the key group of 17 metals needed for the clean energy transition, interviews with more than a dozen consultants, executives, investors and industry analysts showed.
Technical complexities, partnership strains and pollution concerns are hampering companies' ability to wrest market share away from China, which according to the International Energy Agency controls 87% of global rare earths refining capacity.
If projects continue to struggle, several economies could fail to meet their goal of cutting carbon emissions to net zero 2050 to minimize climate change's impact, without Beijing's involvement.
Plans for Australia's Lynas to build a U.S. rare earths refinery with a Texas-based partner have collapsed, according to two sources familiar with the matter. Lynas has said it is trying to finish a rare earths refinery in Western Australia that has faced hurdles and is building its own plant elsewhere in Texas.
MP's goal of refining its own rare earth metals in 2020 was snagged by COVID-19 pandemic and technical challenges, shifting its target to the end of 2023. Updates could come on Thursday when the company is expected to report its quarterly results.
Late last year, U.S.-based MP said it was commissioning refining equipment near its California mine as part of an intricate calibration process that has so far not succeeded, leaving the company reliant on China for refining and thus nearly all of its revenue. MP is also building a Texas magnet facility to supply General MotorsGM.N that will require the California refining equipment to be operational.
"The (rare earths) commissioning process is painstaking, with stops and starts," Jim Litinsky, MP's CEO and largest shareholder, told investors in May.
MP, whose second-largest shareholder is China's Shenghe Resources 600392.SS, declined to comment ahead of its results.
"The rare earths refining process can be very finicky," said Kray Luxbacker, who heads the University of Arizona's mining and geological engineering department and is unaffiliated with MP or its peers. "There are just so many complex steps."
Rare earths magnets turn power into motion and are the essential components in an electric vehicle's motor. They are lighter and can handle far higher temperatures than traditional magnets, in part due to their unique chemical properties.
Rare earths refineries must contend with 17 metals, depending on a deposit's geology, each of which are nearly the same size and atomic weight, making separation complex. Those rare earths must be teased out in a specific order, preventing MP and its peers from cherry-picking specific elements they may want.
To extract neodymium and praseodymium to build EV magnets, for example, MP must first remove the less-desirable lanthanum and cerium that compose about 83% of its California deposit in a process that relies on an intricate cocktail of acids, bases and other chemicals that are tailored to the mine's geology.
While MP relied on Chinese expertise to restart its mine— bought in 2017—that know-how is less helpful when it comes to tailoring refining equipment. Similar issues could plague about half a dozen other companies aiming to refine independently elsewhere in the world, analysts said.
"What's happened in China over many years is that they've invested heavily and cleverly in the processing capacity to convert the (rare earths) material all the way from the mine through to the magnet," said Allan Walton, a metallurgy professor at the University of Birmingham.
ECONOMIC CONTROL
China's refining expertise has allowed the country to engineer rare earths prices at different stages in the processing chains to its advantage, including low prices for finished products, to inhibit foreign competition, analysts said.
Rare earths refining "is not really being addressed even by those who are developing magnet capacity," said Ryan Castilloux, a minerals consultant at Adamas Intelligence.
By strategically focusing on industries that use the magnets—built with rare earths refined in China at profit margins purposefully kept low—Beijing can boost its booming EV industry, Castilloux added.
China's model came into sharp relief last month when rare earths prices sank to their lowest level in nearly three years, due in part to rising Chinese supply. China also offers a 13% export rebate to magnet manufacturers using its material, furthering its dominance.
Beijing for years has allowed imports of lightly processed rock known as rare earths concentrate for refining. The strategy helps ensure prices that incentivize other countries to dig new mines but not build processing plants that can also produce radioactive waste, analysts said.
MP shipped about 43,000 metric tons of concentrate to China last year for refining. Regulatory filings show it has also been selling China fluoride waste—at a loss—left by a previous owner at its site in California, which has stringent storage regulations for the material.
Myanmar, Vietnam and others also ship concentrate to China for refining.
Lynas refines concentrate in Malaysia that it produces in Australia, but authorities in Kuala Lumpur plan to block the imports next year, citing concerns the Lynas plant leaks radioactive waste, a charge Lynas disputes. It aims to open a replacement processing plant in Australia later this year.
The company has long sold rare earth metals in the United States to privately held Blue Line to process into specialized materials.
In 2019, the pair agreed to build refining facilities near San Antonio, Texas and discussed with Trump administration officials their plans to be "the only large scale producer of separated (rare earth elements) in the world outside of China," according to emails obtained by Reuters.
But that effort, funded in part by the Pentagon, has since collapsed, two sources told Reuters. Reasons for the collapse, which has not been previously reported, could not be immediately determined.
Blue Line deferred comment to Lynas. The Pentagon said it would not be able to immediately comment. Lynas referred to past press releases but declined further comment. Meanwhile, Lynas this week updated plans for other refining facilities it is building along the Texas coast with $258 million in Pentagon funding.
Elsewhere, projects across Sweden, South Africa, Australia and other countries aim to extract rare earths from mine waste and byproducts that could supply 8% of global demand successful, according to Adamas Intelligence.
Benchmark Mineral Intelligence, a market data provider, estimates that China refines 89% of the world's neodymium and praseodymium, the key metals for EV magnets, a dominance that by 2028 is expected to dip to 75%.
China's global control of dysprosium refining is forecast by Benchmark to slip from 99% in 2023 to 94% by 2028. Dysprosium helps retain magnetization at high temperatures.
CLEANER TECH
Crucial innovation is also needed to break China's stranglehold on the sector without sacrificing environmental quality, industry analysts said, with concerns over current processes' toxic waste impeding projects.
Efforts by Leading Edge Materials LEM.V to develop Sweden's Norra Karr rare earths deposit were halted in 2016 over concerns that chemicals could leach into drinking water. The company reworked the mine plans to make them more sustainable and submitted a new environmental application this year.
Tesla in May announced plans to make EV magnets without rare earths, citing "environmental and health risks" in the existing process.
"China made a strategic decision decades ago to develop its rare earth processing capability, despite the environmental consequences of the available technology," said Melissa Sanderson, president of American Rare Earths ARR.AX, which is developing several U.S. rare earths projects.
American Rare Earths is working with U.S. government scientists at the Lawrence Livermore Laboratory to develop bacteria that could process rare earths. Privately held Locus Mining and Aether Bio are also studying ways to use biosurfactants and nanotechnology, respectively.
UCore Rare Metals UCU.V, Mosaic MOS.N and privately held USA Rare Earth are also studying various processing technologies.
Still, cleaner solutions are years from production.
"If you can innovate and bring solutions to market that produce rare earths efficiently, you have a tremendous market opportunity," said Nathan Picarsic, co-founder of the geopolitical consulting firm Horizon Advisory.
FACTBOX: The complexity of transforming rare earths from mine to magnet
Lynas Rare Earths signs updated contract with US govt for Texas facility, shares rise https://www.reuters.com/markets/commodities/lynas-rare-earths-signs-updated-contract-with-us-govt-texas-facility-2023-07-31/
(Reporting by Ernest Scheyder and Eric Onstad; additional reporting by Nick Carey and Melanie Burton; Editing by Veronica Brown and Susan Heavey)
((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder; +1-713-210-8512; Reuters Messaging: ernest.scheyder.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The world's two biggest rare earths companies outside of China are facing challenges turning rock from their mines into the building blocks for magnets used across the global economy, from Apple's AAPL.O iPhone to Tesla's TSLA.O Model 3 to Lockheed Martin's LMT.N F-35 fighter jet. Recent struggles by MP MP.N, Lynas LYC.AX and other companies to refine their own rare earths highlight the difficult task the rest of the world faces to break China's stranglehold on the key group of 17 metals needed for the clean energy transition, interviews with more than a dozen consultants, executives, investors and industry analysts showed. In 2019, the pair agreed to build refining facilities near San Antonio, Texas and discussed with Trump administration officials their plans to be "the only large scale producer of separated (rare earth elements) in the world outside of China," according to emails obtained by Reuters. | The world's two biggest rare earths companies outside of China are facing challenges turning rock from their mines into the building blocks for magnets used across the global economy, from Apple's AAPL.O iPhone to Tesla's TSLA.O Model 3 to Lockheed Martin's LMT.N F-35 fighter jet. Lynas refines concentrate in Malaysia that it produces in Australia, but authorities in Kuala Lumpur plan to block the imports next year, citing concerns the Lynas plant leaks radioactive waste, a charge Lynas disputes. FACTBOX: The complexity of transforming rare earths from mine to magnet Lynas Rare Earths signs updated contract with US govt for Texas facility, shares rise https://www.reuters.com/markets/commodities/lynas-rare-earths-signs-updated-contract-with-us-govt-texas-facility-2023-07-31/ (Reporting by Ernest Scheyder and Eric Onstad; additional reporting by Nick Carey and Melanie Burton; Editing by Veronica Brown and Susan Heavey) ((ernest.scheyder@thomsonreuters.com; Twitter: @ErnestScheyder; +1-713-210-8512; Reuters Messaging: ernest.scheyder.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The world's two biggest rare earths companies outside of China are facing challenges turning rock from their mines into the building blocks for magnets used across the global economy, from Apple's AAPL.O iPhone to Tesla's TSLA.O Model 3 to Lockheed Martin's LMT.N F-35 fighter jet. Recent struggles by MP MP.N, Lynas LYC.AX and other companies to refine their own rare earths highlight the difficult task the rest of the world faces to break China's stranglehold on the key group of 17 metals needed for the clean energy transition, interviews with more than a dozen consultants, executives, investors and industry analysts showed. "China made a strategic decision decades ago to develop its rare earth processing capability, despite the environmental consequences of the available technology," said Melissa Sanderson, president of American Rare Earths ARR.AX, which is developing several U.S. rare earths projects. | The world's two biggest rare earths companies outside of China are facing challenges turning rock from their mines into the building blocks for magnets used across the global economy, from Apple's AAPL.O iPhone to Tesla's TSLA.O Model 3 to Lockheed Martin's LMT.N F-35 fighter jet. Just ask MP Materials and Lynas. Lynas refines concentrate in Malaysia that it produces in Australia, but authorities in Kuala Lumpur plan to block the imports next year, citing concerns the Lynas plant leaks radioactive waste, a charge Lynas disputes. | null |
137 | 14,591 | 2023-08-01 00:00:00 UTC | 3 Growth Stocks to Buy Before the Big Bull Rally | AAPL | https://www.nasdaq.com/articles/3-growth-stocks-to-buy-before-the-big-bull-rally | null | null | It's a tricky time for investors. The economy seems like it's finding a footing that will allow it to sidestep a recession. But thanks to the S&P 500's 20% rally just since March's low, further gains could be a bit tougher to muster. A bunch of stocks already look and feel overvalued at their current price.
As the old adage goes, though, expect it when you least expect it. There's no particular reason the market can't follow its current path with even more bullishness, with or without suffering a pullback first. That's why you may not want to wait on the sidelines too long hoping for a big pullback before stepping into growth stocks.
Let's look at three such tickers to consider stepping into sooner rather than later. Spoiler alert: Two of these three names can be found on several lists of stocks to buy. While popular picks, that doesn't necessarily mean they're overcrowded trades right now.
1. Apple
Apple (NASDAQ: AAPL) is such a frequently recommended stock that it's almost become a cliche. Don't let that deter you from stepping into a position, though. This company is the real deal and will remain so for the foreseeable future.
You mostly know it by its biggest profit center, the iPhone. The popular smartphone not only accounts for roughly half of the company's total revenue, but it is also the single-best-selling smartphone brand in the world. Apple didn't reach that point and stay there with mere luck.
The reason the company is such a powerhouse (and the reason Apple is a perennial must-have stock) isn't just the high quality of its flagship device. It's the company's loyal customer base who are now fueling the growth of its digital ecosystem.
Consumer Intelligence Research Partners quantifies this with two telling data nuggets. First, of all consumers using Android-powered mobile devices, only 4% of them are former owners of Apple devices. Second, of all current iPhone owners, 14% of them are former Android users. The vast majority of Android-to-iPhone users switched because they had problems with their Android phones and were seeking a higher-quality device.
And once someone joins the iPhone fray, they tend to dive all the way into the use of their device. Numbers from Sensor Tower indicate iPhone and other iOS users collectively spend nearly twice as much on apps as Android users spend at the Google Play store.
The point is, Apple is building a much more compelling, seamless, revenue-extracting experience, and consumers are willing to pay a premium for it over and over again. That's why Apple has been one of the market's most rewarding stocks in recent years.
2. Etsy
If you think Etsy (NASDAQ: ETSY) is just a place for grandma to sell her hand-knitted hats, you may want to take a look at what the website's actually become since its launch back in 2005. It's now a place to purchase a variety of vintage (used), custom-made, one-of-a-kind clothing, decor, accessories, gifts, toys, and more.
More to the point, it's become quite "cool," providing a sales platform for handcrafters like no other platform out there.
That hasn't helped the stock of late. While shares soared during the COVID-19 pandemic simply because a massive amount of commerce moved online during that time, the bulk of that gain was given back last year. The stock's continued to drift lower this year, with most investors looking for more aggressive growth -- particularly from the tech sector. The lethargic economy hasn't helped.
Don't be fooled by this subpar performance, though. Etsy's doing what it's supposed to be doing. Sales are expected to improve 7% this year before accelerating to a growth rate of 10% in 2024. That should pump up 2022's projected bottom line of $2.38 per share to $3.05 per share next year. Then things should really take off. The analyst community is calling for per-share profits of nearly $8 by 2027 on a near-doubling of its current top line.
The key to this growth is a seismic shift in consumer preferences. Perhaps prompted by the pandemic, a bunch of former fans of mass-made merchandise sold through chain stores are now favoring more personalized, one-of-a-kind goods. Research from IMARC Group suggests the global handicraft market will grow at an annualized pace of more than 9% through 2028, playing right into the hand Etsy is holding.
3. Amazon
OK, Amazon (NASDAQ: AMZN) is at the extreme other end of the same spectrum Etsy's on, by virtue of being one of the mass market institutions some consumers are increasingly shunning. But keep things in perspective. Amazon is still the most convenient and cheapest place to purchase plenty of goods. Not everything you want is better if it's handmade.
And there are two huge other reasons Amazon stock is a compelling prospect right now. The first of these reasons is cooling inflation.
Investors keeping close tabs on the company's recent quarterly reports will likely know Amazon's e-commerce operations slipped into the red last year in the wake of soaring costs. These losses were more than offset by strong profit growth from its cloud computing arm Amazon Web Services.
We're finally starting to see some inflation relief, however. Amazon's North American arm quietly eased back to profitability in the first quarter of this year thanks to lower expenses, and price growth has further abated in the meantime. The Bureau of Economic Analysis' personal consumption expenditures index -- the inflation gauge the Federal Reserve watches most closely -- fell to a two-year-low growth rate (excluding food and energy) of only 4.1% in June. As such, look for Amazon's e-commerce operation to continue improving its profit margins.
And the second reason Amazon is a buy? That's the aforementioned Amazon Web Services. It's still an incredible growth engine and will be for a long while. During the first quarter of this year, Amazon Web Services' revenue grew another 16% year over year, and while its year-over-year operating profits actually fell in the quarter, that drop's purely a function of inflation as well. Once those costs start to cool off, Amazon Web Services' profit margins could explode back to pre-2022's impressive levels.
In this vein, know that Mordor Intelligence expects the cloud computing market to grow by more than 16% per year through 2028. As the cloud computing market leader, Amazon is positioned to win at least its fair share of that growth.
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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. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, and Etsy. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Apple (NASDAQ: AAPL) is such a frequently recommended stock that it's almost become a cliche. Investors keeping close tabs on the company's recent quarterly reports will likely know Amazon's e-commerce operations slipped into the red last year in the wake of soaring costs. Amazon's North American arm quietly eased back to profitability in the first quarter of this year thanks to lower expenses, and price growth has further abated in the meantime. | Apple Apple (NASDAQ: AAPL) is such a frequently recommended stock that it's almost become a cliche. These losses were more than offset by strong profit growth from its cloud computing arm Amazon Web Services. As such, look for Amazon's e-commerce operation to continue improving its profit margins. | Apple Apple (NASDAQ: AAPL) is such a frequently recommended stock that it's almost become a cliche. The reason the company is such a powerhouse (and the reason Apple is a perennial must-have stock) isn't just the high quality of its flagship device. During the first quarter of this year, Amazon Web Services' revenue grew another 16% year over year, and while its year-over-year operating profits actually fell in the quarter, that drop's purely a function of inflation as well. | Apple Apple (NASDAQ: AAPL) is such a frequently recommended stock that it's almost become a cliche. Second, of all current iPhone owners, 14% of them are former Android users. Sales are expected to improve 7% this year before accelerating to a growth rate of 10% in 2024. | 2,024 |
138 | 14,613 | 2023-07-31 00:00:00 UTC | Week Heavy on Labor Data Commences | AAPL | https://www.nasdaq.com/articles/week-heavy-on-labor-data-commences | null | null | We have an eventful week lined up for market participants, reaching a new level of Q2 earnings reports being released — which, by Friday morning, will put us on the back half of earnings season — as well as key economic prints, especially in the labor market. Pre-market levels are up modestly at this hour, staying in the green much the way we ended last week after taking a breather with last Thursday’s selloff.
Aside from ISM Manufacturing and Services, Construction Spending, Factory Orders and overall U.S. Productivity, this is Jobs Week: a new Job Openings and Labor Turnover Survey (JOLTS) on Tuesday, private-sector payrolls for July from Automatic Data Processing (ADP) are out Wednesday morning, Initial and Continuing Jobless Claims Thursday and the big non-farm payroll results from the U.S. Bureau of Labor Statistics (BLS) Friday morning, along with a new Household Survey bringing us a fresh Unemployment Rate.
Last month’s ADP headline was fairly astronomical, especially compared with expectations, where nearly half a million (497K) new private-sector payroll positions were reported. BLS figures for June came in at a more-reasonable 209K, with an Unemployment Rate ticking down to 3.6%. For July, ADP jobs totals are expected to reach 173K, whereas BLS estimates are for around 200K, with Unemployment staying at the same 3.6% rate and Average Hourly Earnings consistently up (not too high) at +0.4%.
When we look at Q2 earnings this week, the three biggest tech reports are all in the “A”s: Apple AAPL, Amazon AMZN and AMD AMD. Beyond these, we’ll hear from Qualcomm QCOM, Uber UBER and Pfizer PFE, to name but a few. So far we’ve seen overall decent performances this earnings season — far from breakout levels to the upside, but also far better than the crumbling-into-recession scenario many analysts had been predicting by the middle of 2023.
SoFi Technologies SOFI performed better than expected in Q2 this morning, posting a loss per share of -$0.06, beating estimates by a penny, on $488.8 million in sales which topped the Zacks consensus by +3%, a stellar +37% year over year for a financial institution. Total deposits grew +26% from Q2 2022, helping the stock up another +7.5% in today’s pre-market, adding to its superb gains of over +100% year to date, far outperforming the S&P 500’s +19%.
Also, On Semiconductor ON is out with Q2 earnings ahead of today’s opening bell, beating earnings expectations of $1.20 per share to $1.29 on headline, $1.33 adjusted for one-time charges. Revenues also came in ahead of estimates to $2.09 billion from $2.02 billion analysts were looking for, swinging to positive sales growth year over year from expectations. Even better, the company has ramped up expectations on both top and bottom lines for Q3: earnings of $1.27-1.41 on revenues of $2.1-2.19 billion are a nice improvement from the $1.21 per share and $2.05 billion expected, respectively.
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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. | When we look at Q2 earnings this week, the three biggest tech reports are all in the “A”s: Apple AAPL, Amazon AMZN and AMD AMD. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report To read this article on Zacks.com click here. Productivity, this is Jobs Week: a new Job Openings and Labor Turnover Survey (JOLTS) on Tuesday, private-sector payrolls for July from Automatic Data Processing (ADP) are out Wednesday morning, Initial and Continuing Jobless Claims Thursday and the big non-farm payroll results from the U.S. Bureau of Labor Statistics (BLS) Friday morning, along with a new Household Survey bringing us a fresh Unemployment Rate. | Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report To read this article on Zacks.com click here. When we look at Q2 earnings this week, the three biggest tech reports are all in the “A”s: Apple AAPL, Amazon AMZN and AMD AMD. For July, ADP jobs totals are expected to reach 173K, whereas BLS estimates are for around 200K, with Unemployment staying at the same 3.6% rate and Average Hourly Earnings consistently up (not too high) at +0.4%. | Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report To read this article on Zacks.com click here. When we look at Q2 earnings this week, the three biggest tech reports are all in the “A”s: Apple AAPL, Amazon AMZN and AMD AMD. We have an eventful week lined up for market participants, reaching a new level of Q2 earnings reports being released — which, by Friday morning, will put us on the back half of earnings season — as well as key economic prints, especially in the labor market. | Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report To read this article on Zacks.com click here. When we look at Q2 earnings this week, the three biggest tech reports are all in the “A”s: Apple AAPL, Amazon AMZN and AMD AMD. Productivity, this is Jobs Week: a new Job Openings and Labor Turnover Survey (JOLTS) on Tuesday, private-sector payrolls for July from Automatic Data Processing (ADP) are out Wednesday morning, Initial and Continuing Jobless Claims Thursday and the big non-farm payroll results from the U.S. Bureau of Labor Statistics (BLS) Friday morning, along with a new Household Survey bringing us a fresh Unemployment Rate. | null |
139 | 14,639 | 2023-07-30 00:00:00 UTC | MORNING BID ASIA-Asian markets face tough act to follow | AAPL | https://www.nasdaq.com/articles/morning-bid-asia-asian-markets-face-tough-act-to-follow | null | null | NEW YORK, July 31 (Reuters) - A look at the day ahead in Asian markets from Stephen Culp, financial markets columnist.
Goodbye, July.
Asian stocks could be in for a bumpy start to the week if they expect to outdo robust gains enjoyed the week prior, under the power of potential stimulus in China, Japan's biggest-ever minimum wage hike and the flickering optimism that the global economy might avoid recession.
Chinese stocks face the challenge of topping last week's 4.5% gain in the CSI 300 .CSI300, the index's biggest weekly jump since November.
The week also saw the Hang Seng .HSI and the Nikkei 225 .N225 gaining 4.4% and 1.4%, respectively, while MSCI's index of Asia Pacific shares outside of Japan .MIAPJ0000PUS advanced 2.5%.
Markets were rocked at the tail-end of the week when the Bank of Japan took its first step away from its decades-long monetary stimulus policy, allowing interest rates more freedom to move in harmony with inflation and economic growth.
The move coincided with a decision to implement Japan's biggest minimum wage hike in history in an effort to jolt the world's third largest economy out of the doldrums.
Market participants are also scrutinizing the other side of the Sea of Japan for signs of life in the Chinese economy.
On July 24, Beijing pledged to adjust its policies to jump-start the nation's lackluster post-COVID recovery, a move which helped solidify the yuan's near two-week high against the dollar, sent the CSI 300 leaping nearly 3% and the HSI surging 4.1%.
In the coming week in the United States, second-quarter earnings season gallops along, and a spate of high profile results in the coming days are expected to shed additional light on the global demand picture, particularly as it relates to China.
Megacaps Apple Inc AAPL.O and Amazon.com AMZN.O, along with chipmaker Western Digital Corp WDC.O, construction and mining equipment manufacturer Caterpillar Inc CAT.N, globally ubiquitous coffee chain Starbucks Corp SBUX.O, and wireless tech firm Qualcomm Inc QCOM.O are all on deck.
Earnings from Marriott International MAR.O, MGM Resorts International MGM.N and Host Hotels & Resorts HST.O will help illuminate the state of global travel and tourism demand.
Potentially market-moving U.S. indicators next week include manufacturing and services PMI. Beyond that, job openings, private payrolls, jobless claims and planned layoffs will set the stage for the closely watched July employment report on Friday.
Here are key developments that could provide more direction to markets on Monday:
- China's Caixin manufacturing PMI expected
- Japan to unveil consumer confidence, housing starts and unemployment data for June
- Australia due to release July manufacturing PMI, June building approvals
- South Korea on deck with July import/export growth report
The race to raise rates https://tmsnrt.rs/3Oaq21N
Asian stock market performance https://tmsnrt.rs/3YdZxNh
(Reporting by Stephen Culp; editing by Diane Craft)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Megacaps Apple Inc AAPL.O and Amazon.com AMZN.O, along with chipmaker Western Digital Corp WDC.O, construction and mining equipment manufacturer Caterpillar Inc CAT.N, globally ubiquitous coffee chain Starbucks Corp SBUX.O, and wireless tech firm Qualcomm Inc QCOM.O are all on deck. Markets were rocked at the tail-end of the week when the Bank of Japan took its first step away from its decades-long monetary stimulus policy, allowing interest rates more freedom to move in harmony with inflation and economic growth. On July 24, Beijing pledged to adjust its policies to jump-start the nation's lackluster post-COVID recovery, a move which helped solidify the yuan's near two-week high against the dollar, sent the CSI 300 leaping nearly 3% and the HSI surging 4.1%. | Megacaps Apple Inc AAPL.O and Amazon.com AMZN.O, along with chipmaker Western Digital Corp WDC.O, construction and mining equipment manufacturer Caterpillar Inc CAT.N, globally ubiquitous coffee chain Starbucks Corp SBUX.O, and wireless tech firm Qualcomm Inc QCOM.O are all on deck. Asian stocks could be in for a bumpy start to the week if they expect to outdo robust gains enjoyed the week prior, under the power of potential stimulus in China, Japan's biggest-ever minimum wage hike and the flickering optimism that the global economy might avoid recession. The move coincided with a decision to implement Japan's biggest minimum wage hike in history in an effort to jolt the world's third largest economy out of the doldrums. | Megacaps Apple Inc AAPL.O and Amazon.com AMZN.O, along with chipmaker Western Digital Corp WDC.O, construction and mining equipment manufacturer Caterpillar Inc CAT.N, globally ubiquitous coffee chain Starbucks Corp SBUX.O, and wireless tech firm Qualcomm Inc QCOM.O are all on deck. Asian stocks could be in for a bumpy start to the week if they expect to outdo robust gains enjoyed the week prior, under the power of potential stimulus in China, Japan's biggest-ever minimum wage hike and the flickering optimism that the global economy might avoid recession. In the coming week in the United States, second-quarter earnings season gallops along, and a spate of high profile results in the coming days are expected to shed additional light on the global demand picture, particularly as it relates to China. | Megacaps Apple Inc AAPL.O and Amazon.com AMZN.O, along with chipmaker Western Digital Corp WDC.O, construction and mining equipment manufacturer Caterpillar Inc CAT.N, globally ubiquitous coffee chain Starbucks Corp SBUX.O, and wireless tech firm Qualcomm Inc QCOM.O are all on deck. Asian stocks could be in for a bumpy start to the week if they expect to outdo robust gains enjoyed the week prior, under the power of potential stimulus in China, Japan's biggest-ever minimum wage hike and the flickering optimism that the global economy might avoid recession. Chinese stocks face the challenge of topping last week's 4.5% gain in the CSI 300 .CSI300, the index's biggest weekly jump since November. | null |
140 | 14,649 | 2023-07-29 00:00:00 UTC | 1 Unstoppable Growth ETF That Could Turn $100 a Week Into $1.15 Million | AAPL | https://www.nasdaq.com/articles/1-unstoppable-growth-etf-that-could-turn-%24100-a-week-into-%241.15-million | null | null | Investing in the stock market isn't always easy, but with the right investments, it's one of the safest and most effective ways to build long-term wealth.
While there's no single right way to invest, exchange-traded funds (ETFs) can be a smart option for many people.
Image source: Getty Images.
An ETF is a basket of securities rolled together into a single investment. So when you invest in just one ETF, you're actually investing in dozens of stocks, or even hundreds. Each ETF is slightly different, offering exposure to different types of stocks and industries.
A growth ETF contains stocks with the potential to earn above-average returns, making it an ideal choice for investors who want the relative safety and convenience of an ETF while still maximizing their earnings.
There are countless different ETFs to choose from, all with unique advantages and disadvantages. But there's one in particular that could help you turn just $100 per week into more than $1.15 million over time: the Vanguard Growth ETF (NYSEMKT: VUG).
Why this ETF is such a strong investment
The Vanguard Growth ETF contains 235 stocks across 11 different sectors, though around half of the fund is made up of technology stocks. It also offers a rock-bottom expense ratio of just 0.04%, which is far lower than many other ETFs and could save you thousands of dollars in fees over time.
One factor that sets this growth ETF apart from many others, though, is its mix of blue chip stocks and up-and-coming companies.
Roughly half of this ETF consists of the stocks of behemoths like Apple, Nvidia, and Visa. These might be less likely to experience explosive growth, but their sheer size and proven track record also make them lower-risk investments.
The rest of the fund is made up of dozens of stocks from smaller companies. These tend to carry more risk, but they also have more potential for substantial growth. If even one of these stocks skyrockets, you could see significant earnings.
Building a million-dollar portfolio
The key to making a lot of money in the stock market is to invest consistently and keep a long-term outlook. Even the best stocks won't make you a millionaire overnight, but over decades, your earnings will add up.
Over the past 10 years, the Vanguard Growth ETF has earned an average rate of return of just under 15% per year. To play it safe, though, let's assume your investments only earn average returns of 12% per year (which is just above the stock market's historic 10% annual average).
If you were to invest $100 per week while earning a 12% average annual return, here's approximately how much you would have over time:
NUMBER OF YEARS TOTAL SAVINGS
20 $346,000
25 $640,000
30 $1,158,000
35 $2,072,000
Data source: Author's calculations via Investor.gov.
To reach the million-dollar mark, you'll need to invest consistently for around 30 years. But if you have even five more years than that to invest, you could roughly double your total savings.
Just keep in mind that there are never any guarantees when investing, and how much you actually earn will depend on how this fund (and the market as a whole) performs over the coming decades. But by investing consistently and keeping a long-term outlook, you could earn more than you might think.
Risks to consider before you buy
No investment is perfect, so no matter what you buy, it's important to also think about the potential downsides.
One disadvantage to ETFs in general is that you have no control over the stocks within the fund. For many investors, the ease and simplicity of ETFs outweigh this factor. But if there are certain stocks you'd rather not own, there's no way to opt out of those specific companies.
Also, growth ETFs are generally riskier than broad-market funds, such as an S&P 500 ETF. This particular fund aims to reduce that risk with a healthy amount of diversification across multiple industries, but high-growth companies are often more volatile than their more-established counterparts.
A growth ETF can be a solid addition to your portfolio, but it's important to weigh the pros and cons before you buy. If you're looking for one that can help limit your risk while still giving you the potential for above-average returns, the Vanguard Growth ETF could be a smart option.
10 stocks we like better than Vanguard Index Funds-Vanguard Growth ETF
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Katie Brockman has positions in Vanguard Index Funds-Vanguard Growth ETF. The Motley Fool has positions in and recommends Apple, Nvidia, Vanguard Index Funds-Vanguard Growth ETF, and Visa. 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. | Building a million-dollar portfolio The key to making a lot of money in the stock market is to invest consistently and keep a long-term outlook. This particular fund aims to reduce that risk with a healthy amount of diversification across multiple industries, but high-growth companies are often more volatile than their more-established counterparts. The Motley Fool has positions in and recommends Apple, Nvidia, Vanguard Index Funds-Vanguard Growth ETF, and Visa. | A growth ETF contains stocks with the potential to earn above-average returns, making it an ideal choice for investors who want the relative safety and convenience of an ETF while still maximizing their earnings. * 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! The Motley Fool has positions in and recommends Apple, Nvidia, Vanguard Index Funds-Vanguard Growth ETF, and Visa. | A growth ETF contains stocks with the potential to earn above-average returns, making it an ideal choice for investors who want the relative safety and convenience of an ETF while still maximizing their earnings. Why this ETF is such a strong investment The Vanguard Growth ETF contains 235 stocks across 11 different sectors, though around half of the fund is made up of technology stocks. See the 10 stocks *Stock Advisor returns as of July 17, 2023 Katie Brockman has positions in Vanguard Index Funds-Vanguard Growth ETF. | A growth ETF contains stocks with the potential to earn above-average returns, making it an ideal choice for investors who want the relative safety and convenience of an ETF while still maximizing their earnings. The rest of the fund is made up of dozens of stocks from smaller companies. * 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! | 4 |
141 | 14,664 | 2023-07-28 00:00:00 UTC | Meta plans retention 'hooks' for Threads as more than half of users leave app | AAPL | https://www.nasdaq.com/articles/meta-plans-retention-hooks-for-threads-as-more-than-half-of-users-leave-app-0 | null | null | By Katie Paul and Sheila Dang
NEW YORK, July 27 (Reuters) - Meta Platforms META.O executives are heavily focused on boosting retention on their new Twitter rival Threads, after the app lost more than half of its users in the weeks following its buzzy launch, CEO Mark Zuckerberg told employees on Thursday.
Retention of users on the text-based app was better than executives had expected, though it was "not perfect," said Zuckerberg, speaking at an internal company town hall, the audio of which was heard by Reuters.
"Obviously, if you have more than 100 million people sign up, ideally it would be awesome if all of them or even half of them stuck around. We're not there yet," he said.
Zuckerberg said he considered the drop-off "normal" and expected retention to grow as the company adds more features to the app, including a desktop version and search functionality.
Meta is looking at adding more "retention-driving hooks" to entice users to return to the app, like "making sure people who are on the Instagram app can see important Threads," said Chief Product Officer Chris Cox.
A company spokesperson declined to comment on the meeting.
The executives' comments came a day after Meta wowed investors with a rosy revenue growth forecast, a sign of a comeback for a company that faced deep skepticism over its hefty spending on the metaverse last year as ad sales plummeted.
The disclosure sent Meta's shares surging 8% on Thursday.
Zuckerberg told employees on the call that he believed the company's work on the augmented and virtual reality technology that would power the metaverse was "not massively ahead of schedule, but on track."
Meta, he added, needed to get started investing in that work ahead of rivals such as Apple AAPL.O, Google and Microsoft MSFT.O, given their years of experience building operating systems for existing products.
"That way, we have all the tools ready for when this is ready for prime time," he said, predicting that mass adoption of metaverse technologies would take place in the 2030s.
Zuckerberg and Cox also highlighted the company's release of an artificial intelligence model called Llama 2 this month, which it made freely available for commercial use to any developer whose services had fewer than 700 million users.
The model has received more than 150,000 download requests in the week since its release, Cox said.
Responding to a question on the proposed "cage match" against Elon Musk, Zuckerberg said he was "not sure if it's going to come together."
(Reporting by Katie Paul in New York and Sheila Dang in Austin; Editing by Muralikumar Anantharaman)
((Katie.Paul@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Meta, he added, needed to get started investing in that work ahead of rivals such as Apple AAPL.O, Google and Microsoft MSFT.O, given their years of experience building operating systems for existing products. By Katie Paul and Sheila Dang NEW YORK, July 27 (Reuters) - Meta Platforms META.O executives are heavily focused on boosting retention on their new Twitter rival Threads, after the app lost more than half of its users in the weeks following its buzzy launch, CEO Mark Zuckerberg told employees on Thursday. The executives' comments came a day after Meta wowed investors with a rosy revenue growth forecast, a sign of a comeback for a company that faced deep skepticism over its hefty spending on the metaverse last year as ad sales plummeted. | Meta, he added, needed to get started investing in that work ahead of rivals such as Apple AAPL.O, Google and Microsoft MSFT.O, given their years of experience building operating systems for existing products. By Katie Paul and Sheila Dang NEW YORK, July 27 (Reuters) - Meta Platforms META.O executives are heavily focused on boosting retention on their new Twitter rival Threads, after the app lost more than half of its users in the weeks following its buzzy launch, CEO Mark Zuckerberg told employees on Thursday. "Obviously, if you have more than 100 million people sign up, ideally it would be awesome if all of them or even half of them stuck around. | Meta, he added, needed to get started investing in that work ahead of rivals such as Apple AAPL.O, Google and Microsoft MSFT.O, given their years of experience building operating systems for existing products. By Katie Paul and Sheila Dang NEW YORK, July 27 (Reuters) - Meta Platforms META.O executives are heavily focused on boosting retention on their new Twitter rival Threads, after the app lost more than half of its users in the weeks following its buzzy launch, CEO Mark Zuckerberg told employees on Thursday. Meta is looking at adding more "retention-driving hooks" to entice users to return to the app, like "making sure people who are on the Instagram app can see important Threads," said Chief Product Officer Chris Cox. | Meta, he added, needed to get started investing in that work ahead of rivals such as Apple AAPL.O, Google and Microsoft MSFT.O, given their years of experience building operating systems for existing products. By Katie Paul and Sheila Dang NEW YORK, July 27 (Reuters) - Meta Platforms META.O executives are heavily focused on boosting retention on their new Twitter rival Threads, after the app lost more than half of its users in the weeks following its buzzy launch, CEO Mark Zuckerberg told employees on Thursday. Retention of users on the text-based app was better than executives had expected, though it was "not perfect," said Zuckerberg, speaking at an internal company town hall, the audio of which was heard by Reuters. | 4 |
142 | 14,674 | 2023-07-27 00:00:00 UTC | Earnings Season: 3 Upcoming Reports Investors Can't Ignore | AAPL | https://www.nasdaq.com/articles/earnings-season%3A-3-upcoming-reports-investors-cant-ignore | null | null | Earnings season can sometimes feel hectic, with a surplus of companies unveiling quarterly results daily. Still, that’s just the nature of the period, and seasoned investors have become well used to this chaotic nature.
For 2023 Q2, S&P 500 earnings are expected to decline -9.8% from the same period last year on -0.4% lower revenues. This would follow the -3.4% decline in index earnings in the preceding period (2023 Q1) and the -5.4% decline in 2022 Q4.
Sheraz Mian, Director of Research at Zacks, says, “The picture emerging from the Q2 earnings season is one of continued resilience and strength, with an above-average proportion of companies not only beating estimates but also providing reassuring guidance for the coming periods.”
Below is a chart illustrating the quarterly earnings and revenue growth expectations for the S&P 500.
Image Source: Zacks Investment Research
For a detailed analysis of Q2 earnings, I invite you to view our weekly Earnings Trends report –> Strong Tech Results Reflect a Resilient Earnings Picture
And next week is another full slate of earnings, with the likes of Apple AAPL, Amazon AMZN, and Uber Technologies UBER scheduled to report. But how do expectations stack up for the three heading into their respective releases?
Apple - August 3rd
Analysts have shown modest positivity for the technology titan’s quarter to be reported, with the $1.19 per share estimate revised marginally higher over the last several months.
Image Source: Zacks Investment Research
Regarding the top line, our consensus quarterly revenue estimate stands at $81.3 billion, implying a pullback of roughly 2% from the year-ago quarter. It’s worth noting that the quarterly sales estimate has been revised 3% lower from the $84.1 billion expected at the beginning of May.
Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Further, our expectation for quarterly iPhone revenue is $40.1 billion, implying a slight 1.4% decrease from the year-ago quarter. The technology titan exceeded iPhone revenue expectations in its latest release, delivering a 4% beat.
While iPhone revenue remains important, the company’s Services results will also be closely watched, which includes cloud services, the App Store, Apple Music, Apple Pay, and several others. The Zacks Consensus Estimate for Services revenue resides at $20.8 billion, 6% higher than the year-ago quarter.
Amazon - August 3rd
Analysts raised their expectations for Amazon’s quarter to be reported back in May, with the $0.34 per share estimate remaining unchanged since. Impressively, the value reflects a 240% improvement from the year-ago quarter.
Image Source: Zacks Investment Research
The company’s revenue is also expected to see solid growth, with the $131.5 billion quarterly estimate indicating a 9% change year-over-year. Analysts have primarily left their top-line estimates unchanged over the last several months.
Similar to AAPL, Amazon’s revenue has a seasonal nature.
Image Source: Zacks Investment Research
Of course, investors will closely monitor Amazon Web Services (AWS) results. The Zacks Consensus estimate for AWS net sales stands at $21.5 billion, 9% higher than year-ago sales of $19.7 billion but reflecting a slight slowdown relative to prior year-over-year growth rates.
Uber Technologies - August 1st
Analysts have been consistently revising their expectations higher for Uber’s quarterly release, with the -$0.01 per share loss estimate up a sizable 80% since the beginning of May and reflecting a year-over-year improvement of 100%.
Image Source: Zacks Investment Research
Top-line expectations have remained essentially unchanged, however, with Uber forecasted to post $9.3 billion in quarterly revenue, reflecting growth of 15% from the same period last year. Uber’s sales growth has been impressive, as we can see below.
Image Source: Zacks Investment Research
Of course, the overall number of Trips is a big focus within Uber’s quarterly results, an area that continues to snowball. For the upcoming release, the Zacks Consensus Estimate for quarterly Trips sits at 2.2 billion, suggesting an improvement of 21% from Q2 2022.
Bottom Line
While earnings season can become overwhelming, that’s just the nature of the period. We’ve had many companies come out and post better-than-expected results so far, helping us avoid the ‘earnings apocalypse’ many feared.
And next week, we’ll hear from several notable companies, including Amazon AMZN, Apple AAPL, and Uber Technologies UBER.
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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. | Image Source: Zacks Investment Research For a detailed analysis of Q2 earnings, I invite you to view our weekly Earnings Trends report –> Strong Tech Results Reflect a Resilient Earnings Picture And next week is another full slate of earnings, with the likes of Apple AAPL, Amazon AMZN, and Uber Technologies UBER scheduled to report. Similar to AAPL, Amazon’s revenue has a seasonal nature. And next week, we’ll hear from several notable companies, including Amazon AMZN, Apple AAPL, and Uber Technologies UBER. | Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research For a detailed analysis of Q2 earnings, I invite you to view our weekly Earnings Trends report –> Strong Tech Results Reflect a Resilient Earnings Picture And next week is another full slate of earnings, with the likes of Apple AAPL, Amazon AMZN, and Uber Technologies UBER scheduled to report. Similar to AAPL, Amazon’s revenue has a seasonal nature. | Image Source: Zacks Investment Research For a detailed analysis of Q2 earnings, I invite you to view our weekly Earnings Trends report –> Strong Tech Results Reflect a Resilient Earnings Picture And next week is another full slate of earnings, with the likes of Apple AAPL, Amazon AMZN, and Uber Technologies UBER scheduled to report. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here. Similar to AAPL, Amazon’s revenue has a seasonal nature. | Image Source: Zacks Investment Research For a detailed analysis of Q2 earnings, I invite you to view our weekly Earnings Trends report –> Strong Tech Results Reflect a Resilient Earnings Picture And next week is another full slate of earnings, with the likes of Apple AAPL, Amazon AMZN, and Uber Technologies UBER scheduled to report. Similar to AAPL, Amazon’s revenue has a seasonal nature. And next week, we’ll hear from several notable companies, including Amazon AMZN, Apple AAPL, and Uber Technologies UBER. | 4 |
143 | 14,697 | 2023-07-26 00:00:00 UTC | Big Tech under pressure as Microsoft results put AI costs in spotlight | AAPL | https://www.nasdaq.com/articles/big-tech-under-pressure-as-microsoft-results-put-ai-costs-in-spotlight | null | null | By Shreyashi Sanyal and Amruta Khandekar
July 26 (Reuters) - A number of U.S. big tech companies fell on Wednesday as Microsoft's results signaled how the high-stakes battle for AI supremacy will cost the tech giants that have seen their shares rally in recent months on hype around the technology.
Microsoft's MSFT.O shares fell 3.6% in early trading as the company laid out an aggressive AI-related spending plan, saying deeper investments in AI are required before gains trickle to the bottom line.
Microsoft is set to shed about $100 billion from its market capitalization if the loses hold until close of trading. Its shares had gained 46.4% up to yesterday's close.
"AI will generate a lot of revenue and earnings for such firms, but a lot of investors have been buying the rumor and now that we have earnings, they are taking profits," Paul Nolte, senior wealth advisor and market strategist for Murphy & Sylvest said.
"There's still a lot of excitement around AI, but nobody quite understands what that means for the bottom line of many of these companies."
The NYSE FANG+ index .NYFANG, which houses many megacap growth names, was down 0.2%. The index has risen about 76% so far this year, driven by the frenzy around AI.
Google-parent AlphabetGOOGL.O was an outlier. Its shares rose 5.6% after the company beat expectations for second-quarter results. Alphabet looks set to add about $100 billion to its market capitalization.
The recent rally has driven up Microsoft's valuation. The stock is trading at 31 times 12-month forward earnings, compared to a PE multiple of 20 for Alphabet.
"The tone set by quarterly results over the next week will be crucial to the performance of tech stocks through the rest of the third quarter."
FED FEARS vs. AI BOOST
Stuart Cole, chief macro economist at Equiti Capital, said tech stocks tend to be fairly exposed to such sentiment around central bank policy as many of them are reliant on robust economic growth to deliver the returns they promise.
Meta Platforms Inc's META.O shares rose 1.0% after Alibaba's 9988.HK cloud computing division said it has become the first Chinese enterprise to support the company's open-source artificial intelligence (AI) model Llama.
Amazon shares dropped 1.3% after a media report said the Federal Trade Commission is finalizing an antitrust lawsuit against Amazon.
Snap Inc SNAP.N shares tumbled 18.3% after the photo messaging app-owner reported a weaker third-quarter forecast than analysts had expected on Tuesday.
The company's Snapchat app has added a new AI-powered chatbot that can answer questions to attract more users, but Shmulik notes the company has struggled to consistently grow revenue and catch up to rivals like Facebook-owner Meta.
"Snapchat is running to stay in the same place while peers enviously get back on the ad growth track," Shmulik said.
(Reporting by Shreyashi Sanyal and Amruta Khandekar in Bengaluru; Additional reporting by Lucy Raitano in London and Johann M Cherian; Editing by Amanda Cooper and Saumyadeb Chakrabarty)
((Shreyashi.Sanyal@thomsonreuters.com; Twitter: https://twitter.com/s_shreyashi;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Microsoft's MSFT.O shares fell 3.6% in early trading as the company laid out an aggressive AI-related spending plan, saying deeper investments in AI are required before gains trickle to the bottom line. FED FEARS vs. AI BOOST Stuart Cole, chief macro economist at Equiti Capital, said tech stocks tend to be fairly exposed to such sentiment around central bank policy as many of them are reliant on robust economic growth to deliver the returns they promise. Meta Platforms Inc's META.O shares rose 1.0% after Alibaba's 9988.HK cloud computing division said it has become the first Chinese enterprise to support the company's open-source artificial intelligence (AI) model Llama. | By Shreyashi Sanyal and Amruta Khandekar July 26 (Reuters) - A number of U.S. big tech companies fell on Wednesday as Microsoft's results signaled how the high-stakes battle for AI supremacy will cost the tech giants that have seen their shares rally in recent months on hype around the technology. Microsoft's MSFT.O shares fell 3.6% in early trading as the company laid out an aggressive AI-related spending plan, saying deeper investments in AI are required before gains trickle to the bottom line. (Reporting by Shreyashi Sanyal and Amruta Khandekar in Bengaluru; Additional reporting by Lucy Raitano in London and Johann M Cherian; Editing by Amanda Cooper and Saumyadeb Chakrabarty) ((Shreyashi.Sanyal@thomsonreuters.com; Twitter: https://twitter.com/s_shreyashi;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Shreyashi Sanyal and Amruta Khandekar July 26 (Reuters) - A number of U.S. big tech companies fell on Wednesday as Microsoft's results signaled how the high-stakes battle for AI supremacy will cost the tech giants that have seen their shares rally in recent months on hype around the technology. Microsoft's MSFT.O shares fell 3.6% in early trading as the company laid out an aggressive AI-related spending plan, saying deeper investments in AI are required before gains trickle to the bottom line. FED FEARS vs. AI BOOST Stuart Cole, chief macro economist at Equiti Capital, said tech stocks tend to be fairly exposed to such sentiment around central bank policy as many of them are reliant on robust economic growth to deliver the returns they promise. | By Shreyashi Sanyal and Amruta Khandekar July 26 (Reuters) - A number of U.S. big tech companies fell on Wednesday as Microsoft's results signaled how the high-stakes battle for AI supremacy will cost the tech giants that have seen their shares rally in recent months on hype around the technology. The index has risen about 76% so far this year, driven by the frenzy around AI. Its shares rose 5.6% after the company beat expectations for second-quarter results. | 3 |
144 | 14,724 | 2023-07-25 00:00:00 UTC | Quality Dividend Growth ETF DGRW Nears $10 Billion | AAPL | https://www.nasdaq.com/articles/quality-dividend-growth-etf-dgrw-nears-%2410-billion | null | null | Following its tenth birthday, the WisdomTree US Quality Dividend Growth Fund (DGRW) is nearing another milestone. The quality dividend growth ETF is rapidly approaching $10 billion in AUM. Should it cross that threshold, it would be the first time DGRW has seen its AUM rise into the tens of billions. That may invite investors and advisors to take a closer look at why its AUM may be spiking.
[caption id="attachment_528453" align="aligncenter" width="624"] DGRW is nearing $10 billion in AUM.[/caption]
DGRW’s AUM has grown due to both price influence and inflows over the last month, up $603 million on net. More than half of that, however, owes to $322.6 million in net inflows in that same time frame. So why might investors be driving flows into the strategy? For just a 28 basis point (bps) fee, DGRW has returned 5.3% over the last month, outperforming both its ETF Database Category and Factset Segment averages.
A Quality Dividend Growth ETF Approach
The quality dividend growth ETF may emphasize dividends, but not in the way investors might think. Rather than mainly leaning on adding current income, DGRW uses dividends first and foremost as an indicator. Specifically, DGRW looks for firms with dividend growth that also pass its quality screen. That sets it apart from other strategies that also emphasize dividend growth but look at past dividend performance rather than growth potential.
DGRW pairs forward-looking earnings estimates with historical return on assets (ROA) and return on equity (ROE) growth. The strategy does tend to lean towards larger names but does weight individual firms and sectors at 5% and 20% respectively.
See more: "10 Years of DGRW"
Why consider a quality dividend growth ETF right now? With the Fed closer and closer to engineering a “soft landing,” investors may be eager to get in for an optimist’s rally. That may be true, but before diving into a disruptive innovation fund, consider how DGRW offers growth exposure with a quality, dividend view. The strategy still holds mega-cap tech leaders like Apple (AAPL) but fills out its roster with firms looking forward to future dividend growth.
For more news, information, and analysis, visit the Modern Alpha Channel.
Read more on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The strategy still holds mega-cap tech leaders like Apple (AAPL) but fills out its roster with firms looking forward to future dividend growth. For just a 28 basis point (bps) fee, DGRW has returned 5.3% over the last month, outperforming both its ETF Database Category and Factset Segment averages. That may be true, but before diving into a disruptive innovation fund, consider how DGRW offers growth exposure with a quality, dividend view. | The strategy still holds mega-cap tech leaders like Apple (AAPL) but fills out its roster with firms looking forward to future dividend growth. Following its tenth birthday, the WisdomTree US Quality Dividend Growth Fund (DGRW) is nearing another milestone. The quality dividend growth ETF is rapidly approaching $10 billion in AUM. | The strategy still holds mega-cap tech leaders like Apple (AAPL) but fills out its roster with firms looking forward to future dividend growth. A Quality Dividend Growth ETF Approach The quality dividend growth ETF may emphasize dividends, but not in the way investors might think. That sets it apart from other strategies that also emphasize dividend growth but look at past dividend performance rather than growth potential. | The strategy still holds mega-cap tech leaders like Apple (AAPL) but fills out its roster with firms looking forward to future dividend growth. Following its tenth birthday, the WisdomTree US Quality Dividend Growth Fund (DGRW) is nearing another milestone. The quality dividend growth ETF is rapidly approaching $10 billion in AUM. | 4 |
145 | 14,750 | 2023-07-24 00:00:00 UTC | Spotify raises prices for its premium plans in the US | AAPL | https://www.nasdaq.com/articles/spotify-raises-prices-for-its-premium-plans-in-the-us | null | null | July 24 (Reuters) - Spotify Technology SPOT.N said on Monday it was raising the prices for its premium plans by $1 each in the United States, as the music streaming company looks to boost profitability in an uncertain economy.
Spotify, which competes with rival services from Apple AAPL.O and Amazon.com AMZN.O, has been under pressure to focus on profitability over user growth as recession-wary customers cut down on unnecessary spending.
The cost of Spotify's ad-free premium plans would now all be priced at an additional $1 with the premium single at $10.99, duo $14.99, family $16.99 and the student costing $5.99.
Shares of the company were up more than 1% in trading before the bell.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Shailesh Kuber)
((Samrhitha.A@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Spotify, which competes with rival services from Apple AAPL.O and Amazon.com AMZN.O, has been under pressure to focus on profitability over user growth as recession-wary customers cut down on unnecessary spending. July 24 (Reuters) - Spotify Technology SPOT.N said on Monday it was raising the prices for its premium plans by $1 each in the United States, as the music streaming company looks to boost profitability in an uncertain economy. (Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Shailesh Kuber) ((Samrhitha.A@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Spotify, which competes with rival services from Apple AAPL.O and Amazon.com AMZN.O, has been under pressure to focus on profitability over user growth as recession-wary customers cut down on unnecessary spending. July 24 (Reuters) - Spotify Technology SPOT.N said on Monday it was raising the prices for its premium plans by $1 each in the United States, as the music streaming company looks to boost profitability in an uncertain economy. The cost of Spotify's ad-free premium plans would now all be priced at an additional $1 with the premium single at $10.99, duo $14.99, family $16.99 and the student costing $5.99. | Spotify, which competes with rival services from Apple AAPL.O and Amazon.com AMZN.O, has been under pressure to focus on profitability over user growth as recession-wary customers cut down on unnecessary spending. July 24 (Reuters) - Spotify Technology SPOT.N said on Monday it was raising the prices for its premium plans by $1 each in the United States, as the music streaming company looks to boost profitability in an uncertain economy. The cost of Spotify's ad-free premium plans would now all be priced at an additional $1 with the premium single at $10.99, duo $14.99, family $16.99 and the student costing $5.99. | Spotify, which competes with rival services from Apple AAPL.O and Amazon.com AMZN.O, has been under pressure to focus on profitability over user growth as recession-wary customers cut down on unnecessary spending. July 24 (Reuters) - Spotify Technology SPOT.N said on Monday it was raising the prices for its premium plans by $1 each in the United States, as the music streaming company looks to boost profitability in an uncertain economy. The cost of Spotify's ad-free premium plans would now all be priced at an additional $1 with the premium single at $10.99, duo $14.99, family $16.99 and the student costing $5.99. | 4 |
146 | 14,760 | 2023-07-23 00:00:00 UTC | The "Magnificent Seven" Stocks Are Soaring Toward a Bull Market: 2 Ideal Index Funds to Buy Now | AAPL | https://www.nasdaq.com/articles/the-magnificent-seven-stocks-are-soaring-toward-a-bull-market%3A-2-ideal-index-funds-to-buy | null | null | The S&P 500 (SNPINDEX: ^GSPC) soared 15.9% in the first half of 2023, and the index is now just 5% below its all-time high. Seven stocks, dubbed the "Magnificent Seven" by Wall Street, accounted for 73% of those gains. In other words, they are almost single-handedly driving the S&P 500 toward bull market territory.
Investors familiar with the FAANG stocks will recognize many of the Magnificent Seven. The group includes:
Apple (NASDAQ: AAPL)
Microsoft (NASDAQ: MSFT)
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL)
Amazon (NASDAQ: AMZN)
Nvidia (NASDAQ: NVDA)
Tesla (NASDAQ: TSLA)
Meta Platforms (NASDAQ: META)
Those seven companies are collectively worth more than $11 trillion -- here's what investors should know.
Image source: Getty Images.
Wall Street is bullish on the Magnificent Seven stocks
The Magnificent Seven produced returns ranging from 36% to 190% in the first half of the year, but Wall Street remains bullish on the entire group. All seven stocks have a consensus rating of "buy" among analysts, according to CNN Business, and the highest 12-month price targets imply upside of 20% for Tesla, 23% for Apple, 27% for Meta Platforms, 27% for Microsoft, 56% for Alphabet, 63% for Amazon, and 63% for Nvidia.
Of course, investors should never put too much faith in short-term price targets. Not even the wisest Wall Street analysts can predict the future. That said, all seven stocks are backed by a solid investment thesis.
1. Apple
Apple has a dominant presence in several consumer electronics verticals, especially tablets, smartwatches, and smartphones. But its burgeoning services business is the future because it allows the company to monetize its installed base of 2 billion devices with adjacent products like cloud storage, mobile app fees, and financial services. Apple has a particularly strong foothold in two of those markets. Its App Store pulls in twice as much revenue as its closest rival, and Apple Pay is the most popular mobile wallet in the U.S.
2. Microsoft
Microsoft is the market leader in enterprise software-as-a-service products, and Microsoft Azure is the second-largest provider of cloud services in the world. The company is leaning into artificial intelligence (AI) in both segments, and Morgan Stanley analyst Keith Weiss recently said Microsoft was the software company best positioned to monetize generative AI.
3. Alphabet
Alphabet's Google is the largest adtech company in the world due to the immense popularity of Google Search and YouTube, and Google Cloud Platform is the third-largest cloud services provider. Also noteworthy, Alphabet-owned Waymo was the first company to commercialize autonomous ride-hailing services, and the robotaxi market is expected to explode in the coming decade.
4. Amazon
Amazon operates the most-visited e-commerce marketplace in the world, and its ability to engage consumers and collect shopper data has snowballed into a booming digital ad business. Amazon has quietly become the third-largest adtech company in the world, and it's gaining ground on Google and Meta. Additionally, Amazon Web Services has led the cloud computing market for 12 years and counting, and it was recently recognized as a leader in cloud AI developer services.
5. Nvidia
Nvidia holds more than 90% market share in workstation graphics chips and supercomputer accelerators, and Forrester Research says its semiconductors are synonymous with AI infrastructure. Nvidia has also solidified its importance in the data center by branching into high-performance networking equipment, and it has extended its ability to monetize AI by delving into subscription software and cloud services.
6. Tesla
Tesla is the market leader in battery electric vehicle sales, and it reported the highest operating margin among volume carmakers last year, an accomplishment that supports CEO Elon Musk in his conviction that the company possesses superior manufacturing capabilities. Tesla will undoubtedly benefit as electric vehicles become more prevalent, but its largest opportunities lie in autonomous vehicles. Tesla plans to build a robotaxi next year, entering a market that Ark Invest estimates will be $9 trillion by 2030.
7. Meta Platforms
Meta Platforms is the second-largest adtech company in the world. That success stems from the immense popularity of its social media networks: Instagram, WhatsApp, and Facebook all ranked among the 10 most-downloaded mobile apps worldwide in 2022. Those platforms already reach billions of users each day, but Meta is leaning into AI to improve user engagement and sharpen its advertising capabilities.
How to invest in the Magnificent Seven stocks
Investors looking for exposure to the Magnificent Seven can, of course, buy all seven stocks. But index funds like the Vanguard S&P 500 ETF (NYSEMKT: VOO) and the Vanguard Mega Cap Growth ETF (NYSEMKT: MGK) may be more prudent options because they diversify your investment across a broader range of businesses.
The Vanguard S&P 500 ETF tracks 500 large-cap stocks that represent a blend of value and growth, and 24% of its assets are invested in the Magnificent Seven. Alternatively, the Vanguard Mega Cap Growth ETF tracks 96 large-cap growth stocks, and 56% of its assets are invested in the Magnificent Seven.
Here's the bottom line: Both index funds bear below-average expense ratios, but the Vanguard S&P 500 ETF is the less risky option because it allocates capital across a more diversified group of businesses. However, the Vanguard Mega Cap Growth ETF has been the better performer. It returned 325% over the last decade, while the Vanguard S&P 500 ETF returned 225%.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Trevor Jennewine has positions in Amazon.com, Nvidia, Tesla, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The group includes: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) Those seven companies are collectively worth more than $11 trillion -- here's what investors should know. All seven stocks have a consensus rating of "buy" among analysts, according to CNN Business, and the highest 12-month price targets imply upside of 20% for Tesla, 23% for Apple, 27% for Meta Platforms, 27% for Microsoft, 56% for Alphabet, 63% for Amazon, and 63% for Nvidia. Nvidia has also solidified its importance in the data center by branching into high-performance networking equipment, and it has extended its ability to monetize AI by delving into subscription software and cloud services. | The group includes: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) Those seven companies are collectively worth more than $11 trillion -- here's what investors should know. Alternatively, the Vanguard Mega Cap Growth ETF tracks 96 large-cap growth stocks, and 56% of its assets are invested in the Magnificent Seven. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, and Vanguard S&P 500 ETF. | The group includes: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) Those seven companies are collectively worth more than $11 trillion -- here's what investors should know. All seven stocks have a consensus rating of "buy" among analysts, according to CNN Business, and the highest 12-month price targets imply upside of 20% for Tesla, 23% for Apple, 27% for Meta Platforms, 27% for Microsoft, 56% for Alphabet, 63% for Amazon, and 63% for Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, Nvidia, Tesla, and Vanguard S&P 500 ETF. | The group includes: Apple (NASDAQ: AAPL) Microsoft (NASDAQ: MSFT) Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) Amazon (NASDAQ: AMZN) Nvidia (NASDAQ: NVDA) Tesla (NASDAQ: TSLA) Meta Platforms (NASDAQ: META) Those seven companies are collectively worth more than $11 trillion -- here's what investors should know. All seven stocks have a consensus rating of "buy" among analysts, according to CNN Business, and the highest 12-month price targets imply upside of 20% for Tesla, 23% for Apple, 27% for Meta Platforms, 27% for Microsoft, 56% for Alphabet, 63% for Amazon, and 63% for Nvidia. How to invest in the Magnificent Seven stocks Investors looking for exposure to the Magnificent Seven can, of course, buy all seven stocks. | 4 |
147 | 14,765 | 2023-07-22 00:00:00 UTC | 2 Growth Stocks to Invest $1,000 in Right Now | AAPL | https://www.nasdaq.com/articles/2-growth-stocks-to-invest-%241000-in-right-now-1 | null | null | The stock market has recovered well in 2023 following last year's doldrums when surging inflation and the Federal Reserve's interest rate hikes led investors to press the panic button and move away from equities. The S&P 500 is up 18% this year, while the tech-laden Nasdaq Composite has delivered bigger gains of 34%. The good part is that this stock market rally seems to have legs thanks to a healthy jobs market, the receding probability of a recession, and a marked slowdown in inflation that could eventually lead the Fed to lower interest rates.
Shares of Apple (NASDAQ: AAPL) and Shopify (NYSE: SHOP) have benefited from the broader stock market surge, logging gains of 50% and 95% year to date. More importantly, both stocks seem capable of sustaining their rallies and delivering more upside to investors.
If you have $1,000 available to invest that isn't needed to bolster an emergency fund, pay off monthly bills, or pay down short-term debt obligations, you might want to put it toward purchasing shares of one (or both) of these stocks. Let's look at the reasons why such an investment could turn out to be a smart move right now.
1. Apple
A $1,000 investment in Apple stock at the end of 2022 is now worth $1,500. There were a few solid reasons to buy shares of Apple at the end of last year, such as the company's growing business and its attractive valuation. For example, Apple stock was trading at 21 times trailing earnings at the end of 2022, and the company was delivering resilient growth despite the slowdown in the smartphone market.
Apple is now trading at a relatively expensive 32 times trailing earnings. However, the stock looks like a solid buy even at these levels, since the tech giant could deliver stronger-than-expected growth once it launches its next-generation smartphone lineup. Wedbush Securities analyst Daniel Ives upped his price target on Apple stock to $220 from $205 last month, pointing out that the company is on the cusp of a major iPhone upgrade cycle.
According to Ives, there are around 250 million iPhones that haven't been upgraded in more than four years. The launch of this year's iPhone 15 is expected to encourage those users to upgrade to Apple's latest smartphones, and more importantly, bump the company's average selling price (ASP) per unit as well. Given that the company has sold an estimated 224 million iPhones over the past four quarters, the company could enjoy a double-digit bump in volumes over the next year if all those 250 million iPhones are upgraded.
Additionally, Ives points out that the improving mix of the higher-priced Pro and Pro Max models in Apple's smartphone sales should give Apple's iPhone ASP a shot in the arm. According to a report from Consumer Intelligence Research Partners (CIRP), Apple's iPhone ASP reportedly increased to $988 in March 2023 from $882 in the same period a year ago.
It is worth noting that a potential increase in the price of the company's next-generation iPhones -- potentially up to $200 as per some analysts -- could push iPhone ASP beyond $1,000. As a result, Apple could enjoy a nice mix of volume and ASP growth once it launches its next series of iPhones. This could help the company outperform Wall Street's growth expectations over the next year and may even help it hit the Street-high price target of $240, which would be a 23% increase from current levels.
So a $1,000 investment in Apple stock could turn out to be a profitable investment thanks to the iPhone catalyst, as well as the other growth drivers that the company is sitting on.
2. Shopify
A $1,000 investment in Shopify stock at the end of 2022 has nearly doubled by now, driven by the company's solid first-quarter 2023 results released in May. Moreover, the company's decision to divest its logistics business and focus on its e-commerce platform seems to have boosted investors' confidence.
The company delivered better-than-expected revenue growth in Q1, with its revenue increasing 25% year over year to $1.5 billion. Shopify's growth rate accelerated from the same period in 2022 when the company had a year-over-year revenue jump of 22%. More importantly, Shopify expects to sustain its healthy momentum in the second quarter as well, with a 25% increase in revenue over the year-ago quarter.
Again, that points toward a significant acceleration when compared to the 16% year-over-year revenue growth the company delivered in Q2 2022. This jump in Shopify's growth this year isn't surprising, given the potential improvement in the e-commerce market's prospects this year.
According to eMarketer, the e-commerce market witnessed a marked slowdown in growth in 2022, as sales grew just 7% following a 17% jump in 2021. This year, e-commerce sales growth is expected to increase by 9%. As a result, the demand for Shopify's e-commerce solutions -- which help merchants bring their businesses online by helping them build a store on the internet, sell their products internationally, find customers through advertisements, collect payments, and get access to capital -- should ideally improve this year.
Analysts anticipate Shopify's top line to jump 20% in 2023 to $6.7 billion, but it won't be surprising to see the company deliver faster growth, considering the trends in the first two quarters. Also, Shopify is sitting on a total addressable market (TAM) worth $160 billion, which means that it could keep growing at a nice pace for a long time. This explains why the company's revenue is expected to increase over the next couple of years.
SHOP Revenue Estimates for Current Fiscal Year data by YCharts
However, investors will have to pay a rich multiple to benefit from Shopify's growth. The stock sports a price-to-sales ratio of almost 15. That is substantially higher than the sales multiple of 8 at the end of 2022. But then, Shopify is relatively cheaper compared to its five-year average sales multiple of 30.
The company's stronger growth this year, along with the massive long-term revenue opportunity, suggests that it can justify its rich valuation and deliver more upside, which is why someone with $1,000 of investible cash might consider buying Shopify before it is too late.
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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Shopify. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of Apple (NASDAQ: AAPL) and Shopify (NYSE: SHOP) have benefited from the broader stock market surge, logging gains of 50% and 95% year to date. The stock market has recovered well in 2023 following last year's doldrums when surging inflation and the Federal Reserve's interest rate hikes led investors to press the panic button and move away from equities. Wedbush Securities analyst Daniel Ives upped his price target on Apple stock to $220 from $205 last month, pointing out that the company is on the cusp of a major iPhone upgrade cycle. | Shares of Apple (NASDAQ: AAPL) and Shopify (NYSE: SHOP) have benefited from the broader stock market surge, logging gains of 50% and 95% year to date. For example, Apple stock was trading at 21 times trailing earnings at the end of 2022, and the company was delivering resilient growth despite the slowdown in the smartphone market. The launch of this year's iPhone 15 is expected to encourage those users to upgrade to Apple's latest smartphones, and more importantly, bump the company's average selling price (ASP) per unit as well. | Shares of Apple (NASDAQ: AAPL) and Shopify (NYSE: SHOP) have benefited from the broader stock market surge, logging gains of 50% and 95% year to date. For example, Apple stock was trading at 21 times trailing earnings at the end of 2022, and the company was delivering resilient growth despite the slowdown in the smartphone market. So a $1,000 investment in Apple stock could turn out to be a profitable investment thanks to the iPhone catalyst, as well as the other growth drivers that the company is sitting on. | Shares of Apple (NASDAQ: AAPL) and Shopify (NYSE: SHOP) have benefited from the broader stock market surge, logging gains of 50% and 95% year to date. Apple A $1,000 investment in Apple stock at the end of 2022 is now worth $1,500. For example, Apple stock was trading at 21 times trailing earnings at the end of 2022, and the company was delivering resilient growth despite the slowdown in the smartphone market. | 4 |
148 | 14,774 | 2023-07-21 00:00:00 UTC | Pre-Markets in Green to Close First Big Q2 Earnings Week | AAPL | https://www.nasdaq.com/articles/pre-markets-in-green-to-close-first-big-q2-earnings-week | null | null | Yesterday’s pullback on the Nasdaq and S&P 500 brought an end to a solid streak of daily market gains this July, at least temporarily. The Dow notched its winning streak to nine-straight sessions, helping the index keep up with its faster-growing brethren. In this morning’s pre-market, the Dow is +88 points, the S&P 500 is +20 and the Nasdaq is up a solid +100 points.
As Zacks Vice President Kevin Matras points out this morning in his Profit from the Pros column, the Nasdaq is likely being affected by the pending rebalancing on the Nasdaq 100, where the top seven gainers — the “Magnificent 7,” including Microsoft MSFT, Nvidia NVDA, Apple AAPL, Amazon AMZN, Alphabet GOOGL, Meta META and, of course, Tesla TSLA — will have their total worth in the sub-index brought down below 50% (44% from 56%, to be more specific). This is likely to cause a near-term disturbance in Nasdaq futures and, if yesterday’s -2% selloff was part of this, it already has.
We don’t have any major economic reports out this morning, but next week brings us plenty: Manufacturing and Services PMI; Case-Shiller home prices; Durable Goods; Advanced Retail, Wholesale and Trade in Goods; Pending Home Sales and next Friday’s big Personal Consumption Expenditures (PCE) report for June. Sandwiched mid-week is the next Fed meeting, where odds are still good another 25 basis-point (bps) rate hike will be forthcoming. A Fed funds rate of between 5.25-5.50% would be the highest we’ve seen since March of 2001.
American Express AXP posted mixed Q2 earnings this morning, with earnings of $2.89 per share outpacing the Zacks consensus by 9 cents, on record-high revenues of $15.05 billion, which missed the $15.52 billion estimate by -2.34%. The credit card giant is still up nicely on the top line from $13.4 billion posted a year ago, but shares are selling off in the pre-market on the news, -3%. Year to date, the company has been relatively in line with the S&P overall.
Oilfield services leader Schlumberger SLB was also mixed in its Q2 results this morning, beating on the bottom line by a penny to earnings of 72 cents per share on top-line sales of $8.1 billion, below the $8.23 billion projected (though up from the $6.77 billion reported in the year-ago quarter). Shares are selling off -2.4% on the news, working off the +7% gains the company had made in the market year to date.
Zacks Rank #5 (Strong Sell)-rated Comerica CMA posted surprise beats on both top and bottom lines this morning, with earnings of $2.01 per share easily ahead of the $1.89 in the Zacks consensus, on $924 million in revenues which outperformed the $904.8 million analysts were expecting, This is now the fifth-straight quarter the Texas-based financial services firm has surpassed earnings expectations.
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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.
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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 Zacks Vice President Kevin Matras points out this morning in his Profit from the Pros column, the Nasdaq is likely being affected by the pending rebalancing on the Nasdaq 100, where the top seven gainers — the “Magnificent 7,” including Microsoft MSFT, Nvidia NVDA, Apple AAPL, Amazon AMZN, Alphabet GOOGL, Meta META and, of course, Tesla TSLA — will have their total worth in the sub-index brought down below 50% (44% from 56%, to be more specific). 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 Schlumberger Limited (SLB) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Comerica Incorporated (CMA) : 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 Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. The credit card giant is still up nicely on the top line from $13.4 billion posted a year ago, but shares are selling off in the pre-market on the news, -3%. | As Zacks Vice President Kevin Matras points out this morning in his Profit from the Pros column, the Nasdaq is likely being affected by the pending rebalancing on the Nasdaq 100, where the top seven gainers — the “Magnificent 7,” including Microsoft MSFT, Nvidia NVDA, Apple AAPL, Amazon AMZN, Alphabet GOOGL, Meta META and, of course, Tesla TSLA — will have their total worth in the sub-index brought down below 50% (44% from 56%, to be more specific). 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 Schlumberger Limited (SLB) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Comerica Incorporated (CMA) : 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 Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. American Express AXP posted mixed Q2 earnings this morning, with earnings of $2.89 per share outpacing the Zacks consensus by 9 cents, on record-high revenues of $15.05 billion, which missed the $15.52 billion estimate by -2.34%. | As Zacks Vice President Kevin Matras points out this morning in his Profit from the Pros column, the Nasdaq is likely being affected by the pending rebalancing on the Nasdaq 100, where the top seven gainers — the “Magnificent 7,” including Microsoft MSFT, Nvidia NVDA, Apple AAPL, Amazon AMZN, Alphabet GOOGL, Meta META and, of course, Tesla TSLA — will have their total worth in the sub-index brought down below 50% (44% from 56%, to be more specific). 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 Schlumberger Limited (SLB) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Comerica Incorporated (CMA) : 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 Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank #5 (Strong Sell)-rated Comerica CMA posted surprise beats on both top and bottom lines this morning, with earnings of $2.01 per share easily ahead of the $1.89 in the Zacks consensus, on $924 million in revenues which outperformed the $904.8 million analysts were expecting, This is now the fifth-straight quarter the Texas-based financial services firm has surpassed earnings expectations. | As Zacks Vice President Kevin Matras points out this morning in his Profit from the Pros column, the Nasdaq is likely being affected by the pending rebalancing on the Nasdaq 100, where the top seven gainers — the “Magnificent 7,” including Microsoft MSFT, Nvidia NVDA, Apple AAPL, Amazon AMZN, Alphabet GOOGL, Meta META and, of course, Tesla TSLA — will have their total worth in the sub-index brought down below 50% (44% from 56%, to be more specific). 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 Schlumberger Limited (SLB) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Comerica Incorporated (CMA) : 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 Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Yesterday’s pullback on the Nasdaq and S&P 500 brought an end to a solid streak of daily market gains this July, at least temporarily. | 4 |
149 | 14,791 | 2023-07-20 00:00:00 UTC | F5 (FFIV) Readies to Report Q3 Earnings: What's in the Offing? | AAPL | https://www.nasdaq.com/articles/f5-ffiv-readies-to-report-q3-earnings%3A-whats-in-the-offing | null | null | F5 FFIV is scheduled to report third-quarter fiscal 2023 results on Jul 24.
For the fiscal third quarter, F5 estimates revenues in the range of $690-$710 million ($700 million at the midpoint). The Zacks Consensus Estimate for revenues is pegged at $698.6 million, suggesting a year-over-year increase of 3.6%.
The company anticipates non-GAAP earnings in the range of $2.78-$2.90 per share ($2.84 at the midpoint). The Zacks Consensus Estimate stands at $2.86 per share, indicating a year-over-year increase of approximately 11.3%. Earnings estimates for the quarter have remained unchanged over the past 60 days.
The company’s earnings surpassed estimates in all the trailing four quarters, the average beat being 7.1%.
F5, Inc. Price and EPS Surprise
F5, Inc. price-eps-surprise | F5, Inc. Quote
Factors to Consider
The persistent macro uncertainty and its impact on customer spending are likely to have negatively impacted F5’s third-quarter top line, particularly the Product segment, which comprises Software and Systems sub-divisions. Our estimate of $333.8 million for Product segment revenues indicates a year-over-year improvement of 2.3%, which is much lower than the increase of 14.5% registered in the second quarter.
Softness in the Software sub-segment’s performance is anticipated to have weighed on the Product division’s overall performance. On its second-quarterearnings conference call the company stated that it no longer sees 15% to 20% year-over-year growth in Software revenues in fiscal 2023, considering recent quarters’ performances and the current environment for new software projects.
In the second quarter, revenues from the Software sub-segment declined 13% year over year to $131.9 million. Our estimate for Software’s third-quarter revenues is currently pegged at $143.7 million, depicting a 19.7% drop from the year-ago quarter.
However, the recovery in the Systems sub-division is likely to have more than offset the weak performance of Software. An improvement in the supply chain is likely to have helped the company clear the backlog for its Systems products in the third quarter. This is likely to have boosted its Systems sub-segment revenues during the to-be-reported quarter. Our estimate of $190.1 million for Systems’ revenues indicates robust 28.9% year-over-year growth.
Furthermore, high-maintenance renewals and a positive impact of the price increase introduced in the fourth quarter fiscal of 2022 are expected to have boosted F5’s Services segment revenues in the third quarter. Our estimate for the Services division’s third-quarter revenues is pegged at $362.4 million, suggesting an expected 4.1% increase from the year-ago quarter’s $348 million.
Additionally, the company’s cost-saving initiatives, which include headcount reduction, eliminating portions of its facilities footprint and travel reduction, are likely to have boosted the bottom line in the to-be-reported quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for FFIV this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
Though F5 carries a Zacks Rank #3 at present, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Apple AAPL, Block SQ and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases.
Apple carries a Zacks Rank #3 and has an Earnings ESP of +10.19%. The company is scheduled to report third-quarter fiscal 2023 results on Aug 3. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, with the average surprise being 2.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Apple’s third-quarter earnings stands at $1.20 per share, flat with the year-ago quarter. It is estimated to report revenues of $81.21 billion, which suggests a decrease of approximately 2.1% from the year-ago quarter.
Block is slated to report second-quarter 2023 results on Aug 3. The company has a Zacks Rank #3 and an Earnings ESP of +12.99% at present. Block’s earnings beat the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on one occasion and matching it once, the average surprise being 22.6%.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 35 cents per share, suggesting a whopping increase of 94.4% from the year-ago quarter’s earnings of 18 cents. Block’s quarterly revenues are estimated to increase 15.4% year over year to $5.08 billion.
Alibaba carries a Zacks Rank #3 and has an Earnings ESP of +6.19%. The company is anticipated to report first-quarter fiscal 2024 results on Aug 3. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 16.9%.
The Zacks Consensus Estimate for BABA’s first-quarter earnings is pegged at $1.90 per share, indicating a year-over-year increase of 8.6%. The consensus mark for revenues stands at $31.21 billion, suggesting a year-over-year rise of 1.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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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 With the Favorable Combination Per our model, Apple AAPL, Block SQ and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report F5, Inc. (FFIV) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Our estimate of $333.8 million for Product segment revenues indicates a year-over-year improvement of 2.3%, which is much lower than the increase of 14.5% registered in the second quarter. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report F5, Inc. (FFIV) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks With the Favorable Combination Per our model, Apple AAPL, Block SQ and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases. Our estimate for the Services division’s third-quarter revenues is pegged at $362.4 million, suggesting an expected 4.1% increase from the year-ago quarter’s $348 million. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report F5, Inc. (FFIV) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks With the Favorable Combination Per our model, Apple AAPL, Block SQ and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases. The Zacks Consensus Estimate for Apple’s third-quarter earnings stands at $1.20 per share, flat with the year-ago quarter. | Stocks With the Favorable Combination Per our model, Apple AAPL, Block SQ and Alibaba BABA have the right combination of elements to post an earnings beat in their upcoming releases. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report F5, Inc. (FFIV) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Block, Inc. (SQ) : Free Stock Analysis Report To read this article on Zacks.com click here. Our estimate of $333.8 million for Product segment revenues indicates a year-over-year improvement of 2.3%, which is much lower than the increase of 14.5% registered in the second quarter. | 4 |
150 | 14,803 | 2023-07-19 00:00:00 UTC | Apple tests generative AI tools to rival OpenAI's ChatGPT - Bloomberg News | AAPL | https://www.nasdaq.com/articles/apple-tests-generative-ai-tools-to-rival-openais-chatgpt-bloomberg-news-0 | null | null | Updates shares, adds details from the report and background
July 19 (Reuters) - Apple AAPL.O is working on artificial intelligence(AI) offerings similar to OpenAI's ChatGPT and Google's Bard, Bloomberg News reported on Wednesday, sending its shares up as much as 2% to a record high.
The iPhone maker has built its own framework, known as "Ajax", to create large language models (LLMs) and is also testing a chatbot that some engineers call "Apple GPT", the report said,citing people with knowledge of the matter.
The company did not respond to a Reuters request for comment.
Apple has so far held back from any big moves in AI and even avoided mentioning the buzzword at its developer conference in June - in stark contrast to other tech giants such as Alphabet GOOGL.O and Microsoft MSFT.Owhich have made bold moves to incorporate the breakthrough technology.
Shares of Microsoft, Nvidia NVDA.O and Alphabet dropped more than 1% after the report.
Apple has, however, subtly pushed advanced AI in some of its products such as Apple Photos, on device texting, and the recently launched mixed-reality headset Vision Pro. Still, analysts say the company is behind peers in incorporating the new technology.
Apple's core AI product, voice assistant Siri, has also stagnated over the years.
The Bloomberg report said several teams are involved in the latest AI effort, which is led by John Giannandrea, the company's head of machine learning and AI, andCraig Federighi, Apple's top software engineering executive.
Apple's new virtual assistant summarizes text and answers questions based on data it has been trained with, and is being used internally for product prototyping, according to the report. Employees say the tool essentially replicates Bard, ChatGPT and Bing AI, and works as a web application.
Apple does not yet have a concrete plan for the tools it is developing, but it is aiming to make a significant AI-related announcement next year, according to the report.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Devika Syamnath)
((yuvraj.malik@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Updates shares, adds details from the report and background July 19 (Reuters) - Apple AAPL.O is working on artificial intelligence(AI) offerings similar to OpenAI's ChatGPT and Google's Bard, Bloomberg News reported on Wednesday, sending its shares up as much as 2% to a record high. The iPhone maker has built its own framework, known as "Ajax", to create large language models (LLMs) and is also testing a chatbot that some engineers call "Apple GPT", the report said,citing people with knowledge of the matter. Apple's new virtual assistant summarizes text and answers questions based on data it has been trained with, and is being used internally for product prototyping, according to the report. | Updates shares, adds details from the report and background July 19 (Reuters) - Apple AAPL.O is working on artificial intelligence(AI) offerings similar to OpenAI's ChatGPT and Google's Bard, Bloomberg News reported on Wednesday, sending its shares up as much as 2% to a record high. Apple's core AI product, voice assistant Siri, has also stagnated over the years. Employees say the tool essentially replicates Bard, ChatGPT and Bing AI, and works as a web application. | Updates shares, adds details from the report and background July 19 (Reuters) - Apple AAPL.O is working on artificial intelligence(AI) offerings similar to OpenAI's ChatGPT and Google's Bard, Bloomberg News reported on Wednesday, sending its shares up as much as 2% to a record high. Apple has so far held back from any big moves in AI and even avoided mentioning the buzzword at its developer conference in June - in stark contrast to other tech giants such as Alphabet GOOGL.O and Microsoft MSFT.Owhich have made bold moves to incorporate the breakthrough technology. The Bloomberg report said several teams are involved in the latest AI effort, which is led by John Giannandrea, the company's head of machine learning and AI, andCraig Federighi, Apple's top software engineering executive. | Updates shares, adds details from the report and background July 19 (Reuters) - Apple AAPL.O is working on artificial intelligence(AI) offerings similar to OpenAI's ChatGPT and Google's Bard, Bloomberg News reported on Wednesday, sending its shares up as much as 2% to a record high. The iPhone maker has built its own framework, known as "Ajax", to create large language models (LLMs) and is also testing a chatbot that some engineers call "Apple GPT", the report said,citing people with knowledge of the matter. Still, analysts say the company is behind peers in incorporating the new technology. | 5 |
151 | 14,827 | 2023-07-18 00:00:00 UTC | Use AI to Keep Powering Gains in a Changing World | AAPL | https://www.nasdaq.com/articles/use-ai-to-keep-powering-gains-in-a-changing-world | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Is your job at risk because of AI?
That’s a question a lot of folks are asking themselves these days. The emergence of AI is very exciting; but it’s also very scary. AI systems can do a lot of things that humans currently do for work – packaging orders, cooking food, writing ads, making movies, and more.
And Goldman Sachs estimates that 300 million full-time jobs will be replaced by AI by 2030.
That’s a lot of jobs.
And the reality of AI stealing jobs scares most people.
But we think it should excite them.
That’s because AI will replace jobs, not workers.
Artificial intelligence will serve as a tool that will help workers be more efficient – and in return, earn more money for the same amount of work.
Restaurants won’t replace chefs with robots. They’ll use robots alongside chefs to make more food than you can imagine and faster than ever before. And as a result, you won’t ever have to wait long for even the freshest of food.
Media firms won’t replace script writers. They’ll use software alongside writers to create better scripts than ever before. And we’ll be able to consume more and better content than ever before.
Legal firms won’t replace lawyers. They’ll use AI alongside them to provide better defense/prosecution and help our justice system deliver better, more equitable, and fairer outcomes.
AI will boost the labor market. Not kill it.
Boosting the Labor Market
Just consider my own career.
In my industry, AI will entirely redefine the rules of investing. AI-powered quantitative trading strategies will become increasingly prevalent. And at the same time, human-powered discretionary investment strategies will begin to fall to the wayside.
That may lead some to think that human stock-pickers will be out of a job in a few years.
But we’re confident that isn’t true.
Instead, the best investors will use both quantitative and discretionary strategies.
They’ll use quant strategies for short-term trading because that’s where AI and big data shine brightest. That will allow them to dissect and analyze real-time price data much faster and more accurately than any human. And as a result, they’ll be able to provide stunningly accurate short-term price predictions.
Looking for a bunch of short-term wins in the stock market? Use a quant strategy.
And if you’re looking for long-term home run hits in the stock market, you have to rely on a discretionary strategy.
After all, what pushes a stock up 1,000% or 2,000% over the course of five to 10 years? Most of the time, consumer behavior.
Consumers fell in love with iPhones and bought them in droves year after year. And that powered Apple (AAPL) stock more than 1,150% higher over the past 10 years.
Consumers fell in love with Netflix’s streaming service and subscribed in droves, which propelled Netflix (NFLX) stock more than 1,110% higher over the past 10 years.
And the same is true for Amazon Prime. Consumers fell in love with the service and signed up for it in droves, which pushed Amazon (AMZN) stock more than 770% higher over the past 10 years.
Indeed, consumer behavior drives long-term price trajectory.
AI Can Power Quant Trading Strategies
AI can’t accurately forecast consumer behavior (yet). It can’t tell you if everyone will love the next iPhone, if they’ll sign up for a new social media app, or if they’ll watch a particular movie or TV show.
But a well-connected human with a good intuition can give you a pretty accurate forecast of those things.
Therefore, if you really want to make money in the stock market over the next few years, you need to start employing a dual investment strategy.
Use the best quantitative strategies for short-term profits and the best discretionary strategies for long-term profits. Rack up fast short-term wins with AI and data. Score huge long-term wins with good intuition (and some lucky guesses, too).
It’s the best of both worlds.
The Final Word
That’s why, today, I’m going to tell you about one of my favorite discretionary investment strategies right now: Investing in the company that started this whole AI Boom – OpenAI, the creator of ChatGPT.
OpenAI has done a lot since ChatGPT’s launch in November 2022. The company’s valuation has already doubled.
But this is just the start.
I truly believe OpenAI could be one of the world’s largest companies in the near future – if not the largest.
And that’s why you need to hear about a special loophole I discovered that will allow you to invest in OpenAI today.
This is your chance to invest in the next big thing.
Like investing in Apple in the 1980s or Amazon in the 1990s, this is an opportunity you can’t afford to miss.
Learn all about it.
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 Use AI to Keep Powering Gains in a Changing World 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. | And that powered Apple (AAPL) stock more than 1,150% higher over the past 10 years. AI systems can do a lot of things that humans currently do for work – packaging orders, cooking food, writing ads, making movies, and more. 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. | And that powered Apple (AAPL) stock more than 1,150% higher over the past 10 years. Media firms won’t replace script writers. AI Can Power Quant Trading Strategies AI can’t accurately forecast consumer behavior (yet). | And that powered Apple (AAPL) stock more than 1,150% higher over the past 10 years. AI Can Power Quant Trading Strategies AI can’t accurately forecast consumer behavior (yet). Therefore, if you really want to make money in the stock market over the next few years, you need to start employing a dual investment strategy. | And that powered Apple (AAPL) stock more than 1,150% higher over the past 10 years. AI Can Power Quant Trading Strategies AI can’t accurately forecast consumer behavior (yet). Therefore, if you really want to make money in the stock market over the next few years, you need to start employing a dual investment strategy. | 5 |
152 | 14,860 | 2023-07-17 00:00:00 UTC | Dividend Investors — Can a 2.4%-Yielding ETF be Better Than a 13%-Yielding ETF? | AAPL | https://www.nasdaq.com/articles/dividend-investors-can-a-2.4-yielding-etf-be-better-than-a-13-yielding-etf | null | null | In a comparison to see if an ETF with a 13% dividend yield or one with a 2.4% dividend yield would be a better choice for dividend investors, it would seemingly be obvious that the ETF with the 13% yield would be the superior option. However, here’s why that’s not necessarily the case. Let’s take a look at the Global X SuperDividend ETF (NYSEARCA:SDIV) and the iShares Core Dividend Growth ETF (NYSEARCA:DGRO) to find out why the answer isn’t as clear-cut as it may seem once you go beyond the surface level.
What are SDIV and DGRO?
SDIV is the "super dividend ETF" from Global X. This ETF has about $784 million in assets under management (AUM) and, as mentioned above, yields a massive 13%. It does this by investing in an index composed of 100 of the highest-yielding equities in the world. Notably, SDIV pays out dividends on a monthly basis, as opposed to the quarterly basis that most stocks and ETFs pay on.
Meanwhile, DGRO is a dividend growth ETF from BlackRock’s (NYSE:BLK) iShares that yields a far lower 2.4% and also pays a dividend on a monthly basis. It invests in U.S. stocks with growing dividends, and it is much larger than SDIV, with $24 billion in assets under management.
So far, things are looking good for SDIV in this comparison, but let's look further.
Comparing Their Holdings
DGRO holds 430 positions, and its top 10 holdings make up just 25.9% of the fund, so this ETF offers investors plenty of diversification. Below, you’ll find an overview of DGRO’s top 10 holdings using TipRanks’ holdings tool.
As you can see, this is a strong group of holdings, and most investors would generally agree that these are blue-chip stocks, whether they are mega-cap tech leaders like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Broadcom (NASDAQ:AVGO), international energy giants like ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX), or other well-respected stocks like JPMorgan Chase (NYSE:JPM).
Meanwhile, SDIV holds 100 positions, and its top 10 holdings account for just 13.4% of the fund, so this is a pretty diversified ETF with low concentration risk. Below, you’ll find an overview of SDIV’s top 10 holdings using TipRanks’ holdings tool.
As you can see, its holdings look quite a bit different from those of DGRO. Most investors would be hard-pressed to find names that they recognize here, let alone names that are widely seen as blue-chip holdings.
In fairness to SDIV, it looks like DGRO is the clear-cut winner in this category, but it’s possible that some of these holdings are diamonds in the rough, so let’s give DRGO the edge for the better portfolio but move on to the next category, performance track record, to get a clearer picture of which is the superior ETF.
Comparing Their Performances
Here’s where the rubber really meets the road in this comparison. When looking at the performance of both ETFs over time, a real difference begins to emerge.
Looking at total return, which combines returns from price appreciation with dividends being reinvested, DGRO has been a pretty solid performer in recent years. As of the end of the quarter that ended in June, DGRO had a one-year total return of 11%. Going out to three years, it has posted an impressive annualized return of 13.6%.
Over the past five years, DGRO has had an annualized total return of 11.1%. Finally, going back to its inception in 2014, DGRO’s total annualized return is 10.9%. As you can see, when combining returns from dividends and price appreciation, DGRO has consistently given its investors double-digit returns for a long time.
Now let’s take a look at SDIV’s track record compared to DGRO over the same time period. As of the end of the June quarter, SDIV’s total return over the past year was -8.1%. This means that even with its large dividend yield, investors have still lost 8.1% on their investments. Zooming out to three years, the results look a little better, with a three-year annualized total return of -2.7%. However, this means that investors still lost money and lagged the performance of DGRO by a significant margin.
Over the past five years, SDIV has had an unsightly annualized total return of -10.4%. Even over a 10-year time frame, SDIV produced an annualized return of -2.3%, and since its inception in 2011, it has lost money with a total annualized return of -1.9%.
Disparity in Fees
Despite losing money over each of these time frames and significantly underperforming both DGRO and the broader market, SDIV actually charges fees that are significantly higher than those of DGRO. SDIV has an expense ratio of 0.58% versus just 0.08% for DGRO.
This means that an investor allocating $10,000 to SDIV would pay $58 in fees in the first year, while an investor putting $10,000 into DGRO would pay just $8. Fees add up over time, so the difference is even greater over a longer time horizon.
For example, over the course of a decade, assuming a 5% return per year and that fees remain the same, the DGRO investor would pay $103 in fees, while the SDIV investor would pay a much higher $759. This large difference in expenses hardly seems justified, given SDIV’s underperformance.
Below, you can view a comparison of DGRO and SDIV using TipRanks’ ETF comparison tool, which allows investors to compare up to 20 ETFs at once based on a wide variety of customizable factors.
The Winner Is...
So, while DGRO investors made double-digit returns on a consistent basis, SDIV investors have actually lost money over the long run, even when its massive double-digit dividend yield is taken into account. This is why investors should look beyond just the attention-grabbing dividend yield and look at an ETF’s performance over time and why a dividend ETF with a 2.4% dividend yield like DGRO can be superior to a dividend ETF with a 13% dividend yield like SDIV.
In this comparison between two dividend ETFs with very different approaches, I believe DGRO is the winner as the better choice for dividend investors (and all investors, for that matter).
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 you can see, this is a strong group of holdings, and most investors would generally agree that these are blue-chip stocks, whether they are mega-cap tech leaders like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Broadcom (NASDAQ:AVGO), international energy giants like ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX), or other well-respected stocks like JPMorgan Chase (NYSE:JPM). It invests in U.S. stocks with growing dividends, and it is much larger than SDIV, with $24 billion in assets under management. However, this means that investors still lost money and lagged the performance of DGRO by a significant margin. | As you can see, this is a strong group of holdings, and most investors would generally agree that these are blue-chip stocks, whether they are mega-cap tech leaders like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Broadcom (NASDAQ:AVGO), international energy giants like ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX), or other well-respected stocks like JPMorgan Chase (NYSE:JPM). Let’s take a look at the Global X SuperDividend ETF (NYSEARCA:SDIV) and the iShares Core Dividend Growth ETF (NYSEARCA:DGRO) to find out why the answer isn’t as clear-cut as it may seem once you go beyond the surface level. As you can see, when combining returns from dividends and price appreciation, DGRO has consistently given its investors double-digit returns for a long time. | As you can see, this is a strong group of holdings, and most investors would generally agree that these are blue-chip stocks, whether they are mega-cap tech leaders like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Broadcom (NASDAQ:AVGO), international energy giants like ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX), or other well-respected stocks like JPMorgan Chase (NYSE:JPM). In a comparison to see if an ETF with a 13% dividend yield or one with a 2.4% dividend yield would be a better choice for dividend investors, it would seemingly be obvious that the ETF with the 13% yield would be the superior option. So, while DGRO investors made double-digit returns on a consistent basis, SDIV investors have actually lost money over the long run, even when its massive double-digit dividend yield is taken into account. | As you can see, this is a strong group of holdings, and most investors would generally agree that these are blue-chip stocks, whether they are mega-cap tech leaders like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Broadcom (NASDAQ:AVGO), international energy giants like ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX), or other well-respected stocks like JPMorgan Chase (NYSE:JPM). Meanwhile, DGRO is a dividend growth ETF from BlackRock’s (NYSE:BLK) iShares that yields a far lower 2.4% and also pays a dividend on a monthly basis. Below, you can view a comparison of DGRO and SDIV using TipRanks’ ETF comparison tool, which allows investors to compare up to 20 ETFs at once based on a wide variety of customizable factors. | 5 |
153 | 14,862 | 2023-07-16 00:00:00 UTC | Guru Fundamental Report for AAPL - Warren Buffett | AAPL | https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-warren-buffett-52 | null | null | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
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.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
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About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
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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. | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. | Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL). | Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL). | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. | 5 |
154 | 14,867 | 2023-07-15 00:00:00 UTC | Great News for Apple Stock and Microsoft Stock Investors | AAPL | https://www.nasdaq.com/articles/great-news-for-apple-stock-and-microsoft-stock-investors | null | null | Fool.com contributor Parkev Tatevosian discusses a recent update from a market research firm showing computer sales improved in the second quarter of 2023.
*Stock prices used were the afternoon prices of July 12, 2023. The video was published on July 14, 2023.
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Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends 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 discusses a recent update from a market research firm showing computer sales improved in the second quarter of 2023. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. | 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 July 10, 2023 Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple and Microsoft. | 10 stocks we like better than Microsoft 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 July 10, 2023 Parkev Tatevosian, CFA has positions in Apple. | See the 10 stocks *Stock Advisor returns as of July 10, 2023 Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has a disclosure policy. His opinions remain his own and are unaffected by The Motley Fool. | 5 |
155 | 14,872 | 2023-07-14 00:00:00 UTC | Apple’s $3 Trillion Milestone: What’s Next for AAPL Stock Investors? | AAPL | https://www.nasdaq.com/articles/apples-%243-trillion-milestone%3A-whats-next-for-aapl-stock-investors | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Apple (NASDAQ:AAPL) stock performed extremely well in this year’s first half. Will the rest of 2023 also bring huge gains to Apple’s shareholders?
It’s difficult to predict, as there are many moving parts. Ultimately, cautious investors can choose to stay in the trade with Apple but don’t have to aggressively add to their positions.
There’s been a lot of buzz because Apple recently achieved a market capitalization of $3 trillion. That’s an impressive milestone, no doubt.
Now, it’s a good time for sensible investors to consider Apple’s next moves, as it won’t be easy for the tech titan to continue growing at such a rapid rate.
Apple is still a solid company, but always remember that no stock can just go up in a straight line. Plus, position sizing is essential to long-term success as an investor, even with a winner like AAPL stock.
A AR Pricey Headset and AAPL Stock
Apple’s augmented reality headset, known as the Vision Pro, is the company’s “most significant product since the Apple Watch,” according to Bloomberg.
Some financial traders might assume that the Vision Pro’s rollout will quickly boost Apple’s market cap.
However, it’s not wise to jump to conclusions. Certainly, it’s not a positive sign that Apple is reportedly slashing its production goal for the Vision Pro headset.
According to South China Morning Post (citing Financial Times), Apple initial objective was to produce 1 million Vision Pro units in the first year. Now, the goal is only to produce 400,000 units in 2024.
Apple might blame “complex design issues,” but it’s entirely possible that there are other contributing factors.
In particular, Apple may have been overconfident in assigning a $3,499 price tag on the Vision Pro headset. All in all, it’s not 100% clear that Apple’s expensive VR gear will be a blockbuster seller.
Apple Seeks Opportunities in India
On the positive side of the equation, Apple is evidently looking to India for potential growth opportunities. This represents a huge emerging market with an expanding middle class.
Apple apparently recognizes this, as the company opened two flagship stores in India earlier this year. Furthermore, Apple CEO Tim Cook reportedly attended those two store openings.
In addition, Apple is apparently probing production opportunities in India. This makes sense during a time of tensions between the U.S. and China.
Reportedly, Apple seeks to “manufacture 25% of the world’s iPhones” in India, versus 3.5% today. Diversifying its smartphone production could prove to be a very smart strategy for Apple, so this is probably a bullish development for AAPL stock.
Have a Plan With AAPL Stock
As you can see, Apple’s current and prospective investors have a lot to consider. Apple achieved a $3 trillion market cap quickly this year, but the next milestones might not happen so easily.
It’s fine to have a share position in Apple, but just don’t make any assumptions of easy success with AAPL stock. As usual, position sizing will be crucial.
The future will probably be bright for Apple and its stakeholders. Still, when all is said and done, there’s no need to chase rallies or over-leverage yourself. In other words, sensible investors can maintain their current share positions in Apple for now, or just add to them gradually.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It’s fine to have a share position in Apple, but just don’t make any assumptions of easy success with AAPL stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock performed extremely well in this year’s first half. Plus, position sizing is essential to long-term success as an investor, even with a winner like AAPL stock. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock performed extremely well in this year’s first half. It’s fine to have a share position in Apple, but just don’t make any assumptions of easy success with AAPL stock. Plus, position sizing is essential to long-term success as an investor, even with a winner like AAPL stock. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock performed extremely well in this year’s first half. A AR Pricey Headset and AAPL Stock Apple’s augmented reality headset, known as the Vision Pro, is the company’s “most significant product since the Apple Watch,” according to Bloomberg. Plus, position sizing is essential to long-term success as an investor, even with a winner like AAPL stock. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple (NASDAQ:AAPL) stock performed extremely well in this year’s first half. The post Apple’s $3 Trillion Milestone: What’s Next for AAPL Stock Investors? Plus, position sizing is essential to long-term success as an investor, even with a winner like AAPL stock. | 3 |
156 | 14,898 | 2023-07-13 00:00:00 UTC | If You Invested $1,000 in Meta Platforms in 2022, This Is How Much You Would Have Today | AAPL | https://www.nasdaq.com/articles/if-you-invested-%241000-in-meta-platforms-in-2022-this-is-how-much-you-would-have-today | null | null | Meta Platforms (NASDAQ: META), the tech giant formerly known as Facebook, saw its shares surge to an all-time high of $382.18 during the buying frenzy in growth stocks on Sept. 7, 2021. That marked a ten-bagger gain from its IPO price of $38 in 2012. But by Nov. 4, 2022, Meta's stock had sunk to a seven-year low of $88.09.
Therefore, a $1,000 investment in its IPO would have briefly blossomed to over $10,000 before withering back to about $2,300. The bulls gave up on Meta as Apple's (NASDAQ: AAPL) privacy-oriented iOS update, fierce competition from ByteDance's TikTok, and the macroeconomic headwinds all curbed the growth of its core advertising business.
Image source: Meta Platforms.
Even as Meta's growth cooled off, it continued to burn billions of dollars on its unprofitable Reality Labs (virtual and augmented reality) business. It also ramped up its investments in its short video platform Reels, which it admitted was tougher to monetize than its News Feed ads. That combination of slowing growth and rising expenses made Meta an easy target for the bears as rising interest rates rattled the tech sector.
However, Meta's stock subsequently bounced back to nearly $300 again. So you had invested $1,000 into Meta when most the bulls were retreating, your investment would have more than tripled to about $3,400 in just eight months. Let's see why Meta recovered so quickly -- and if it can generate even bigger gains.
Why did the bulls rush back to Meta again?
The bears believed Meta's advertising business, which accounted for 97% of its revenues in 2022, would face existential challenges as Apple's iOS changes disrupted its ability to craft targeted ads from third-party data. They also expected TikTok to continue pulling younger users and advertisers away from Facebook and Instagram.
That's why Meta's advertising revenues declined year over year for three consecutive quarters through the end of 2022. But in the first quarter of 2023, that losing streak finally ended when its advertising revenues rose 4% year over year.
METRIC
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Meta Ad Revenue
$27.0B
$28.2B
$27.2B
$32.2B
$28.1B
Growth (YOY)
6%
(2%)
(4%)
(4%)
4%
Data source: Meta Platforms. YOY = Year-over-year.
That recovery was driven by Chinese cross-border e-commerce platforms like Pinduoduo's Temu, Alibaba's AliExpress, and Shein -- which all ramped up their ad spending to reach more overseas buyers. That expansion largely offset the macro-induced weakness of its financial and tech verticals. A higher number of total ad impressions also offset its declining ad prices.
As Meta's near-term ad sales stabilize, it's addressing Apple's iOS changes by gathering more first-party data for its targeted ads. It's also countering TikTok with Reels -- which it claims are already being reshared more than two billion times every day -- and it recently challenged Twitter with Threads, which surpassed 100 million sign-ups within its first week.
Meta is also still adding more new users to its core ecosystem. In the first quarter, the total number of monthly active people across its Family of Apps (Facebook, Instagram, Messenger, and WhatsApp) rose 5% year over year to 3.81 billion. That's already nearly half of the world's population, so Meta should remain a top advertising platform alongside Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google -- even if its near-term outlook has been clouded by platform, macro, and competitive challenges. That's why analysts still expect Meta's revenue to rise 9% in 2023 and 11% in 2024.
But what about Meta's profitability and valuations?
Meta has been aggressively cutting costs with three rounds of layoffs over the past year. But it doesn't plan to abandon the costly expansion of its Reality Labs segment, since it remains bullish on the future of VR and AR markets. It also recently launched its latest Quest 3 headset to keep pace with Apple's recent introduction of its Vision Pro headset.
However, the bulls will point out that Meta still generated roughly the same operating margin (25%) as Alphabet in the first quarter of 2023. That's because Alphabet also subsidizes the growth of many of its lower-margin businesses (such as Google Cloud) with its higher-margin advertising revenues. Furthermore, Meta is firmly profitable and it was still sitting on $11.6 billion in cash and equivalents -- as well as $25.9 billion marketable securities -- at the end of its first quarter. That healthy balance sheet should make Meta more appealing than many other tech stocks if interest rates stay elevated.
Analysts expect Meta's earnings to grow 36% in 2023 and 25% in 2024 -- as the recovery of its profitable ad business offsets the expansion of its unprofitable Reality Labs segment -- and its stock still looks reasonably valued at 25 times forward earnings. Alphabet, which is expected to grow at a slower rate than Meta, trades at 22 times forward earnings.
Meta has had a great run so far, but it could soar even higher if the macro environment improves. Investors might be kicking themselves for missing out on Meta's gains over the past eight months, but it's not too late to buy this blue-chip tech stock.
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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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Leo Sun has positions in Alphabet, Apple, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Apple, and Meta Platforms. The Motley Fool recommends Alibaba 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 bulls gave up on Meta as Apple's (NASDAQ: AAPL) privacy-oriented iOS update, fierce competition from ByteDance's TikTok, and the macroeconomic headwinds all curbed the growth of its core advertising business. The bears believed Meta's advertising business, which accounted for 97% of its revenues in 2022, would face existential challenges as Apple's iOS changes disrupted its ability to craft targeted ads from third-party data. That recovery was driven by Chinese cross-border e-commerce platforms like Pinduoduo's Temu, Alibaba's AliExpress, and Shein -- which all ramped up their ad spending to reach more overseas buyers. | The bulls gave up on Meta as Apple's (NASDAQ: AAPL) privacy-oriented iOS update, fierce competition from ByteDance's TikTok, and the macroeconomic headwinds all curbed the growth of its core advertising business. Growth (YOY) 6% (2%) (4%) (4%) 4% Data source: Meta Platforms. That's already nearly half of the world's population, so Meta should remain a top advertising platform alongside Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google -- even if its near-term outlook has been clouded by platform, macro, and competitive challenges. | The bulls gave up on Meta as Apple's (NASDAQ: AAPL) privacy-oriented iOS update, fierce competition from ByteDance's TikTok, and the macroeconomic headwinds all curbed the growth of its core advertising business. Meta Platforms (NASDAQ: META), the tech giant formerly known as Facebook, saw its shares surge to an all-time high of $382.18 during the buying frenzy in growth stocks on Sept. 7, 2021. Analysts expect Meta's earnings to grow 36% in 2023 and 25% in 2024 -- as the recovery of its profitable ad business offsets the expansion of its unprofitable Reality Labs segment -- and its stock still looks reasonably valued at 25 times forward earnings. | The bulls gave up on Meta as Apple's (NASDAQ: AAPL) privacy-oriented iOS update, fierce competition from ByteDance's TikTok, and the macroeconomic headwinds all curbed the growth of its core advertising business. Growth (YOY) 6% (2%) (4%) (4%) 4% Data source: Meta Platforms. Analysts expect Meta's earnings to grow 36% in 2023 and 25% in 2024 -- as the recovery of its profitable ad business offsets the expansion of its unprofitable Reality Labs segment -- and its stock still looks reasonably valued at 25 times forward earnings. | null |
157 | 14,914 | 2023-07-12 00:00:00 UTC | At a $3 Trillion Market Cap, Has Apple's Stock Gotten Too Expensive? | AAPL | https://www.nasdaq.com/articles/at-a-%243-trillion-market-cap-has-apples-stock-gotten-too-expensive | null | null | Apple's (NASDAQ: AAPL) stock price has already soared 45% this year, propelling it to a valuation topping $3 trillion. The tech giant's stock trades as if it were still a high-growth startup even though those days appear to be long gone. Given all this quick growth, some are wondering if the stock has already peaked for 2023.
Is Apple still a good investment opportunity, even at an inflated price tag?
Apple's growth rate slowed significantly in recent years
Over the past decade, Apple has averaged a revenue growth rate of around 10%. And that's with the tech company benefiting from a bump in activity during the pandemic. But with the economy coming back to more normal levels in many ways, Apple's growth rate is now below average and it even turned negative in recent quarters:
AAPL Revenue (Quarterly YoY Growth) data by YCharts
For the three months ending April 1, Apple's quarterly revenue was down 2.5% year over year. While services revenue was at an all-time high of $20.9 billion, it grew at a rate of only 5.5% year over year. Apple's diluted per-share profit of $1.52 for the period was identical to what it reported a year ago. But while the business is solid and generating strong profits, it's debatable whether it warrants such a high premium.
Apple's valuation is incredibly high
Apple's stock gains this year have dwarfed the S&P 500, which is up 15% since January. The stock's price-to-earnings (P/E) ratio isn't at its peak but it is much higher than its 10-year average:
AAPL PE Ratio data by YCharts
Between 2021 and 2022, meme stocks were hot and investors were paying obscene valuations for investments, and so Apple's P/E multiple during that time was inflated as well.
At over 30 times earnings, Apple should be generating a strong growth rate. Instead, its sales have been declining and that trend could continue. The consensus analyst price target for Apple's stock is just over $181, which is lower than where the stock closed on Monday ($188.61).
Why Apple could face challenges ahead
The analysts' consensus suggests some risk of a price drop, but there may be even more downside risk for the stock, especially if the economy falls into a recession this year and Apple's business struggles even more than it has of late.
While Apple did announce the Vision Pro headset, I'm not sold on this being a great opportunity for the business. Spending on the metaverse and headsets is what weighed down Meta Platforms' bottom line in recent years, and that could pose a similar problem for Apple if it gets too deep into that business. What has made Apple successful over the years is that it makes products that are easy to use and appeal to the masses. Headsets might appeal to gamers but I'm doubtful of just how much the company will gain from that. Inflation has led to consumers tightening their budgets, and demand for a $3,500 headset could be thin.
Apple's products and services as a whole could falter in future periods as consumers scale back on spending. Plus, investors shouldn't forget that student loan repayments will resume later this year, and that could mean even less discretionary income for consumers, creating another potential headwind for Apple.
Apple's stock isn't a buy at these levels
For Apple to be trading at such a high valuation, the business should be firing on all cylinders and growing at an impressive rate, with much more growth on the horizon. And that clearly isn't the case. While its fundamentals remain solid and this is a hugely successful and profitable business, the price is simply too high to make it a good buy right now.
If you have Apple's stock in your portfolio it can still be a good investment to hang on to for the long term. But prospective investors are better off buying other growth stocks where they can get more value for their money.
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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. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Meta Platforms. 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's (NASDAQ: AAPL) stock price has already soared 45% this year, propelling it to a valuation topping $3 trillion. But with the economy coming back to more normal levels in many ways, Apple's growth rate is now below average and it even turned negative in recent quarters: AAPL Revenue (Quarterly YoY Growth) data by YCharts For the three months ending April 1, Apple's quarterly revenue was down 2.5% year over year. The stock's price-to-earnings (P/E) ratio isn't at its peak but it is much higher than its 10-year average: AAPL PE Ratio data by YCharts Between 2021 and 2022, meme stocks were hot and investors were paying obscene valuations for investments, and so Apple's P/E multiple during that time was inflated as well. | But with the economy coming back to more normal levels in many ways, Apple's growth rate is now below average and it even turned negative in recent quarters: AAPL Revenue (Quarterly YoY Growth) data by YCharts For the three months ending April 1, Apple's quarterly revenue was down 2.5% year over year. The stock's price-to-earnings (P/E) ratio isn't at its peak but it is much higher than its 10-year average: AAPL PE Ratio data by YCharts Between 2021 and 2022, meme stocks were hot and investors were paying obscene valuations for investments, and so Apple's P/E multiple during that time was inflated as well. Apple's (NASDAQ: AAPL) stock price has already soared 45% this year, propelling it to a valuation topping $3 trillion. | But with the economy coming back to more normal levels in many ways, Apple's growth rate is now below average and it even turned negative in recent quarters: AAPL Revenue (Quarterly YoY Growth) data by YCharts For the three months ending April 1, Apple's quarterly revenue was down 2.5% year over year. Apple's (NASDAQ: AAPL) stock price has already soared 45% this year, propelling it to a valuation topping $3 trillion. The stock's price-to-earnings (P/E) ratio isn't at its peak but it is much higher than its 10-year average: AAPL PE Ratio data by YCharts Between 2021 and 2022, meme stocks were hot and investors were paying obscene valuations for investments, and so Apple's P/E multiple during that time was inflated as well. | Apple's (NASDAQ: AAPL) stock price has already soared 45% this year, propelling it to a valuation topping $3 trillion. But with the economy coming back to more normal levels in many ways, Apple's growth rate is now below average and it even turned negative in recent quarters: AAPL Revenue (Quarterly YoY Growth) data by YCharts For the three months ending April 1, Apple's quarterly revenue was down 2.5% year over year. The stock's price-to-earnings (P/E) ratio isn't at its peak but it is much higher than its 10-year average: AAPL PE Ratio data by YCharts Between 2021 and 2022, meme stocks were hot and investors were paying obscene valuations for investments, and so Apple's P/E multiple during that time was inflated as well. | null |
158 | 14,926 | 2023-07-11 00:00:00 UTC | VUG vs. SCHG: Which is the Top Growth ETF? | AAPL | https://www.nasdaq.com/articles/vug-vs.-schg%3A-which-is-the-top-growth-etf | null | null | In 2023, growth stocks, primarily led by a revitalized tech sector excited by the promise of AI advancements, have been the market frontrunners. This surge is, in part, due to easing inflation concerns that previously plagued growth stocks last year.
Against this bullish backdrop, two of the market’s top growth ETFs have raced out to impressive year-to-date gains just over halfway through 2023 -- the Schwab U.S. Large-Cap Growth ETF (NYSEARCA:SCHG) has returned 35.1% so far in 2023, while the Vanguard Growth ETF (NYSEARCA:VUG) has returned a slightly lower 32.8%.
So, which of these two popular blue chip growth ETFs is the better buy now?
Which Stocks Do These ETFs Hold?
SCHG is an ETF from Charles Schwab with $19.2 billion in assets under management (AUM) that invests in the Dow Jones U.S. Large-Cap Growth Total Stock Market Index. VUG is a much larger ETF from Vanguard with $92.1 billion in AUM that invests in an index that tracks the returns of large-cap growth stocks.
Both ETFs feature strong collections of top growth stocks. VUG owns 240 stocks, and its top 10 holdings make up about half of the fund. Below, you’ll find an overview of VUG’s top 10 holdings using TipRanks’ holdings tool.
Meanwhile, SCHG has a similar portfolio construction, holding 242 stocks, and its top 10 holdings make up a slightly higher 55.6% of the fund. Check out SCHG’s top 10 holdings below.
As you can see, there is plenty of overlap between the top holdings of the two funds. Both heavily feature the mega-cap technology stocks that have done much of the heavy lifting to propel the market higher all year. Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Nvidia (NASDAQ:NVDA) are the top four holdings for both funds, and they share eight of the same top 10 holdings.
The top holdings of both funds also feature strong Smart Scores. Nine of VUG’s top 10 holdings feature Smart Scores of 8 or better, while eight of SCHG’s do. The Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks a score from 1 to 10 based on eight market key factors. A Smart Score of 8 or higher is equivalent to an Outperform rating.
VUG and SCHG both feature ETF Smart Scores of 8 out of 10.
Both VUG and SCHG are dividend payers, although they don't sport the types of yields that will draw in income investors. VUG currently yields 0.6%, while SCHG yields a slightly lower 0.45%.
Is VUG Stock a Buy, According to Analysts?
Turning to Wall Street, VUG has a Moderate Buy consensus rating, as 66.84% of analyst ratings are Buys, 29.84% are Holds, and 3.32% are Sells. At $302.69, the average VUG stock price target implies 7.5% upside potential.
Is SCHG Stock a Buy, According to Analysts?
Looking at SCHG, it has a Moderate Buy consensus rating, as 68.05% of analyst ratings are Buys, 28.38% are Holds, and 3.57% are Sells. At $80.35, the average SCHG stock price target implies 7.75% upside potential.
Investor-Friendly Fees
One area where these two ETFs really stand out is in terms of their fees. Both SCHG and VUG feature very attractive expense ratios. In fact, they both charge just 0.04% in fees. This is among the most advantageous fees you will find in the market today.
An investor allocating $10,000 towards SCHG or VUG would pay just a barely-noticeable $4 in fees in year one. Assuming a return of 5% a year over the next decade and that the current expense ratios remain constant, this same investor would pay only $51 in fees over 10 years.
Long-Term Performance Comparison
In addition to their low costs, these ETFs also stand out because of the impressive performances that they have put up over the long term.
As of June’s close, VUG had an impressive one-year total return of 28% and a three-year annualized total return of 12.6%. Over the past five years, it posted an excellent 14.5% annualized total return, and over the past decade, it posted an even better 14.9% annualized total return.
Moving onto SCHG, as of the end of June as well, it had a one-year total return of 30%. Further, it posted a three-year annualized total return of 14.4%, a five-year annualized total return of 15.4%, and a stellar 10-year annualized return of 15.7%. So, as good as VUG has been, as you can see, SCHG managed to outperform it over each of these time frames.
Long-time investors know that it’s very difficult to beat the market over the long run. Using the popular Vanguard S&P 500 ETF (NYSEARCA:VOO) as a proxy for the S&P 500 (SPX), both SCHG and VUG have beaten VOO's one-year total return of 19.5%.
Meanwhile, its three-year annualized return of 14.6% is better than VUG’s but trails that of SCHG. Further, both VUG and SCHG beat VOO’s five-year annualized total return of 12.3%, and both trump its 10-year annualized total return of 12.8% as well.
Therefore, while SCHG has outperformed VUG over time, both of these ETFs are pretty good investment vehicles in that they have been beating the broader market over the long run.
Below, you’ll find a comparison of VUG and SCHG based on performance, fees, and a variety of other criteria, with VOO added in for good measure, using TipRanks’ ETF Comparison Tool, which enables investors to compare up to 20 ETFs at once.
Investor Takeaway
These are both low-fee, investor-friendly ETFs with great portfolios and great long-term performances to match. While past performance is no guarantee of future results, SCHG has beaten VUG over each of the time frames discussed above, making it the top choice between the two, but both look like great ETFs as they have both beaten the broader market over the course of the past decade.
I believe these are ETFs that investors can view as core long-term holdings that they can build their portfolios around. With growth stocks surging so far in 2023, investors can consider starting positions in these ETFs and then dollar-cost averaging into them over time during periods of market weakness.
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), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Nvidia (NASDAQ:NVDA) are the top four holdings for both funds, and they share eight of the same top 10 holdings. SCHG is an ETF from Charles Schwab with $19.2 billion in assets under management (AUM) that invests in the Dow Jones U.S. Large-Cap Growth Total Stock Market Index. VUG is a much larger ETF from Vanguard with $92.1 billion in AUM that invests in an index that tracks the returns of large-cap growth stocks. | Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Nvidia (NASDAQ:NVDA) are the top four holdings for both funds, and they share eight of the same top 10 holdings. At $302.69, the average VUG stock price target implies 7.5% upside potential. At $80.35, the average SCHG stock price target implies 7.75% upside potential. | Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Nvidia (NASDAQ:NVDA) are the top four holdings for both funds, and they share eight of the same top 10 holdings. Against this bullish backdrop, two of the market’s top growth ETFs have raced out to impressive year-to-date gains just over halfway through 2023 -- the Schwab U.S. Large-Cap Growth ETF (NYSEARCA:SCHG) has returned 35.1% so far in 2023, while the Vanguard Growth ETF (NYSEARCA:VUG) has returned a slightly lower 32.8%. Further, both VUG and SCHG beat VOO’s five-year annualized total return of 12.3%, and both trump its 10-year annualized total return of 12.8% as well. | Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), and Nvidia (NASDAQ:NVDA) are the top four holdings for both funds, and they share eight of the same top 10 holdings. Which Stocks Do These ETFs Hold? Nine of VUG’s top 10 holdings feature Smart Scores of 8 or better, while eight of SCHG’s do. | null |
159 | 14,959 | 2023-07-10 00:00:00 UTC | Is Visa Stock a Buy? | AAPL | https://www.nasdaq.com/articles/is-visa-stock-a-buy-1 | null | null | Visa (NYSE: V) is the world's leading payments processing network, servicing over 200 countries and handling more than $14.3 trillion in payment volume in the 12 months ending on March 31. Through its extensive reach and brand recognition, Visa has become a household name and quintessential blue chip stock.
Few people would argue that it isn't a great business. But being a great business doesn't make a stock a no-brainer investment. Does that apply to Visa? Let's see.
Competitors won't catch up to its reach anytime soon
When it comes to businesses you can feel comfortable holding for the long term, a lot comes down to their competitive moat. Without it, a company's longevity is consistently at risk, since it could struggle to hold on to its market position and profitability in the face of increased competition.
In Visa's case, its competitive moat is its vast reach. At the end of 2022, Visa has over 100 million merchant locations, almost 40 million more than just a few years ago.
If you own an American Express or Discover credit card, there's a good chance you have run into a merchant, retailer, or restaurant that didn't accept your card. But I'll bet that none of those places refused Visa. Its vast reach is to thank for that.
With the head start Visa has and its impressive growth rates, it's very unlikely one of its competitors will match that reach anytime in the foreseeable future. Add in the growing demand for electronic payments as the world progressively becomes more digital, and the company is in a good position to thrive over the long term.
You can't argue with its financials
In the second quarter of 2023, Visa made $8 billion in revenue, up 11% year over year. In its fiscal 2022, it made $29.3 billion, up 22% from the year prior. Its 2022 revenue got a boost from higher inflation (Visa takes a percentage of transactions, so higher transaction totals equal more revenue). And the company is a cash cow because of its high margins.
The company's large network didn't happen overnight; it's a by-product of lots of investment. But many of these investments were made years ago, so Visa now gets to reap the rewards with minimal added costs.
Few companies' margins are remotely comparable. The chart below shows how lucrative a position Visa is in with its industry and business model.
V Profit Margin data by YCharts
The stock isn't necessarily cheap
Shares have been impressive over the last decade, more than doubling the returns of the S&P 500. The stock has been lucrative for investors who have been along for the ride, but it could make prospective investors hesitant as it reaches levels many would consider expensive.
Its price-to-earnings ratio is 31.6; the S&P 500's is around 19.6, and American Express and Discover are about 17.8 and 7.8, respectively.
However, when it comes to Visa, I view it through the lens of whether you would feel comfortable holding it for the next 20 years. And the answer is yes. It might not be cheap, but I'm confident it has the long-term growth potential to warrant its valuation.
If you're worried about current prices, consider dollar-cost averaging your way into a stake instead of investing a lump sum.
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Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Apple, Nike, Visa, Walmart, and Walt Disney. The Motley Fool recommends Discover Financial Services and recommends the following options: long January 2024 $145 calls on Walt Disney, long January 2025 $47.50 calls on Nike, and short January 2024 $155 calls on Walt Disney. 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. | Competitors won't catch up to its reach anytime soon When it comes to businesses you can feel comfortable holding for the long term, a lot comes down to their competitive moat. Add in the growing demand for electronic payments as the world progressively becomes more digital, and the company is in a good position to thrive over the long term. V Profit Margin data by YCharts The stock isn't necessarily cheap Shares have been impressive over the last decade, more than doubling the returns of the S&P 500. | See the 10 stocks *Stock Advisor returns as of July 3, 2023 Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Apple, Nike, Visa, Walmart, and Walt Disney. The Motley Fool recommends Discover Financial Services and recommends the following options: long January 2024 $145 calls on Walt Disney, long January 2025 $47.50 calls on Nike, and short January 2024 $155 calls on Walt Disney. | You can't argue with its financials In the second quarter of 2023, Visa made $8 billion in revenue, up 11% year over year. See the 10 stocks *Stock Advisor returns as of July 3, 2023 Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool recommends Discover Financial Services and recommends the following options: long January 2024 $145 calls on Walt Disney, long January 2025 $47.50 calls on Nike, and short January 2024 $155 calls on Walt Disney. | But being a great business doesn't make a stock a no-brainer investment. Competitors won't catch up to its reach anytime soon When it comes to businesses you can feel comfortable holding for the long term, a lot comes down to their competitive moat. You can't argue with its financials In the second quarter of 2023, Visa made $8 billion in revenue, up 11% year over year. | null |
160 | 14,963 | 2023-07-09 00:00:00 UTC | Is Taiwan Semiconductor Stock a Buy Now? | AAPL | https://www.nasdaq.com/articles/is-taiwan-semiconductor-stock-a-buy-now-0 | null | null | Taiwan Semiconductor (NYSE: TSM) has become one of the most important companies in the world, producing computer chips for Apple, NVIDIA, and even Intel. In this video, Travis Hoium covers the company's incredible margins and shows why the stock is cheap for investors today.
*Stock prices used were end-of-day prices of July 5, 2023. The video was published on July 7, 2023.
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Travis Hoium has positions in Apple and Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, 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. 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. | Taiwan Semiconductor (NYSE: TSM) has become one of the most important companies in the world, producing computer chips for Apple, NVIDIA, and even Intel. In this video, Travis Hoium covers the company's incredible margins and shows why the stock is cheap for investors today. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. | See the 10 stocks *Stock Advisor returns as of July 3, 2023 Travis Hoium has positions in Apple and Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, 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. | 10 stocks we like better than Taiwan Semiconductor Manufacturing When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of July 3, 2023 Travis Hoium has positions in Apple and Intel. 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. | See the 10 stocks *Stock Advisor returns as of July 3, 2023 Travis Hoium has positions in Apple and Intel. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. Their opinions remain their own and are unaffected by The Motley Fool. | 4 |
161 | 14,968 | 2023-07-08 00:00:00 UTC | If You Invested $2,000 in Berkshire Hathaway in 2017, This Is How Much You Would Have Today | AAPL | https://www.nasdaq.com/articles/if-you-invested-%242000-in-berkshire-hathaway-in-2017-this-is-how-much-you-would-have-today | null | null | Since Warren Buffett took over the company in 1965, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) has made shareholders a lot of money. Between 1965 and 2022, the large conglomerate generated compounded annual gains of 19.8%, which compares nicely to the broader benchmark S&P 500's 9.9% average gain.
Zooming in, Berkshire has also made many moves in recent years and has seen its stock hit all-time highs. If you invested $2,000 in 2017, here's how much you'd have today.
Finding different ways to put money to work
One of Berkshire's big moves over the last six years was continuing to build its stake in the consumer tech giant Apple (NASDAQ: AAPL), which Buffett first purchased in 2016. He has previously talked about how he first got interested in Apple after noticing how distraught his friend was when he couldn't find his iPhone.
Image source: Motley Fool.
In 2017, Buffett and Berkshire got serious about Apple, boosting their position from 230 million shares at the end of 2016 to nearly 662 million shares at the end of 2017. Currently, Apple consumes more than 46% of Berkshire's more than $375 billion equities portfolio.
It's been a tremendous investment for Berkshire. Since the start of 2017, Apple's stock is up roughly 560%.
When the pandemic hit in 2020, most investors' investing approach changed dramatically, given that the world had transformed massively. Berkshire made a lot of big changes, including selling off all of its airline stocks and a lot of bank stocks, as well.
The conglomerate remained patient immediately after the onset of the pandemic but then began to deploy some of its massive cash hoard. It started with Berkshire repurchasing a lot of its own stock: nearly $25 billion in 2020 and more than $27 billion in 2021.
Then Berkshire began to venture into other sectors. The pandemic and Russia's eventual invasion of Ukraine would start what would ultimately be another big foray into energy stocks and acquisitions. Berkshire would acquire Dominion Energy in 2020 and then initiate major stakes in the U.S. domestic oil producers Occidental Petroleum and Chevron.
In 2022, Berkshire invested $60 billion in various stocks in the first six months of the year, not including stock sales. These new positions included multibillion-dollar stakes in Citigroup, Paramount, and Activision Blizzard.
Berkshire has also looked abroad, investing in the initial public offering of the Brazilian fintech Nu Holdings and building large multibillion-dollar positions in five of Japan's large trading companies. Buffett seems to like them because they remind him of Berkshire.
If you had invested $2,000 in Berkshire...
It's been a bumpy last six years, especially when you think about market conditions since the pandemic began, but Berkshire has managed to perform well. It's also proven to be a rock at times when the market has struggled -- like last year.
So if you had invested $2,000 in Berkshire's stock at the very beginning of 2017, you'd now have $4,277. If you had invested $2,000 in the broader benchmark S&P 500 index, you'd now have $3,972, making Berkshire's stock the better investment.
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Bram Berkowitz has positions in Citigroup and Nu and has the following options: long January 2024 $80 calls on Citigroup. The Motley Fool has positions in and recommends Activision Blizzard, 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. | Finding different ways to put money to work One of Berkshire's big moves over the last six years was continuing to build its stake in the consumer tech giant Apple (NASDAQ: AAPL), which Buffett first purchased in 2016. The pandemic and Russia's eventual invasion of Ukraine would start what would ultimately be another big foray into energy stocks and acquisitions. Berkshire would acquire Dominion Energy in 2020 and then initiate major stakes in the U.S. domestic oil producers Occidental Petroleum and Chevron. | Finding different ways to put money to work One of Berkshire's big moves over the last six years was continuing to build its stake in the consumer tech giant Apple (NASDAQ: AAPL), which Buffett first purchased in 2016. Since Warren Buffett took over the company in 1965, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) has made shareholders a lot of money. These new positions included multibillion-dollar stakes in Citigroup, Paramount, and Activision Blizzard. | Finding different ways to put money to work One of Berkshire's big moves over the last six years was continuing to build its stake in the consumer tech giant Apple (NASDAQ: AAPL), which Buffett first purchased in 2016. Berkshire made a lot of big changes, including selling off all of its airline stocks and a lot of bank stocks, as well. In 2022, Berkshire invested $60 billion in various stocks in the first six months of the year, not including stock sales. | Finding different ways to put money to work One of Berkshire's big moves over the last six years was continuing to build its stake in the consumer tech giant Apple (NASDAQ: AAPL), which Buffett first purchased in 2016. In 2022, Berkshire invested $60 billion in various stocks in the first six months of the year, not including stock sales. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway wasn't one of them! | 4 |
162 | 14,972 | 2023-07-07 00:00:00 UTC | Warren Buffett Detailed Fundamental Analysis - AAPL | AAPL | https://www.nasdaq.com/articles/warren-buffett-detailed-fundamental-analysis-aapl-3 | null | null | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
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.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
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About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
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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. | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. | Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL). | Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL). | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. | 4 |
163 | 15,000 | 2023-07-06 00:00:00 UTC | VW ready to deal with China metal curbs if needed, chipmakers play down fallout | AAPL | https://www.nasdaq.com/articles/vw-ready-to-deal-with-china-metal-curbs-if-needed-chipmakers-play-down-fallout | null | null | By Ben Blanchard and Jan Schwartz
TAIWAN, July 6 (Reuters) - Volkswagen said it is monitoring the situation on metals markets after China imposed export restrictions on two minor metals used in semiconductors and electric vehicles, while some chipmakers on Thursday played down the potential damage to supplies.
Fears are growing that more curbs on strategic exports including rare earths could be coming after a top Chinese trade adviser said on Wednesday that the limits on gallium and germanium, effective Aug. 1, were "just a start".
The abrupt announcement, days before Thursday's arrival in Beijing of U.S. Treasury Secretary Janet Yellen for a visit, sent some companies scrambling to secure supplies of the two metals and stirred concerns about a jump in prices.
It has also prompted more companies to re-think their reliance on the world's No. 2 economy.
VW, which relies on gallium and germanium for automotive products, said it was "ready to take measures together with its partners if necessary" but did not elaborate. The metals will also play a role in future autonomous driving functions, a spokesperson for the German carmaker said.
The export curbs are likely to further strain U.S.-China relations as the countries vie for dominance in semiconductor and defence technologies.
"If the talks between the two sides go well, many restrictions could be loosened, but if the talks go badly, both sides may put up more sanctions after Yellen goes home," said Capital Securities Corp analyst Liao Chien-yu.
Some industry players said the restrictions could leave China with a glut of the two metals, weighing on domestic prices even as costs overseas jumped this week.
Germanium is used in high-speed computer chips, plastics, and in military applications such as night-vision devices, as well as satellite imagery sensors. Gallium is used in radar and radio communication devices, satellites and LEDs.
Some larger chip manufacturers view China's export controls on gallium as more of a warning shot about what economic pain the country could inflict.
But if prices rise as restrictions take hold companies would have another reason to shift supply chains.
Taiwan's WIN Semiconductors 3105.TWO, which uses gallium for optoelectronic devices, told Reuters only a "small number" of substrates are purchased from China, with most of its supplies coming from Germany and Japan.
Taiwan's TSMC 2330.TW, the world's largest contract chipmaker, said it does not expect any direct impact on its production from the moves.
Taiwan is a major producer of chips used in everything from smartphones and cars to fighter jets, supplying companies like Apple AAPL.O and Nvidia NVDA.O.
Chipmaker NXP Semiconductors NXPI.O sees no material impact on its business. NXP makes some chips for the auto and communications sectors using gallium or germanium.
EXPLAINER-China's rare earths dominance in focus after mineral export curbs
FACTBOX-Where are germanium and gallium produced, what are they used for?
FACTBOX-Companies respond to China's curbs on gallium and germanium exports NL8N38S1JL
(Reporting by Reuters bureaus; Writing by Josephine Mason; Editing by Catherine Evans)
((Josephine.Mason@thomsonreuters.com; +44 207 542 7695; Reuters Messaging: josephine.mason.reuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Taiwan is a major producer of chips used in everything from smartphones and cars to fighter jets, supplying companies like Apple AAPL.O and Nvidia NVDA.O. Fears are growing that more curbs on strategic exports including rare earths could be coming after a top Chinese trade adviser said on Wednesday that the limits on gallium and germanium, effective Aug. 1, were "just a start". The abrupt announcement, days before Thursday's arrival in Beijing of U.S. Treasury Secretary Janet Yellen for a visit, sent some companies scrambling to secure supplies of the two metals and stirred concerns about a jump in prices. | Taiwan is a major producer of chips used in everything from smartphones and cars to fighter jets, supplying companies like Apple AAPL.O and Nvidia NVDA.O. Some larger chip manufacturers view China's export controls on gallium as more of a warning shot about what economic pain the country could inflict. EXPLAINER-China's rare earths dominance in focus after mineral export curbs FACTBOX-Where are germanium and gallium produced, what are they used for? | Taiwan is a major producer of chips used in everything from smartphones and cars to fighter jets, supplying companies like Apple AAPL.O and Nvidia NVDA.O. By Ben Blanchard and Jan Schwartz TAIWAN, July 6 (Reuters) - Volkswagen said it is monitoring the situation on metals markets after China imposed export restrictions on two minor metals used in semiconductors and electric vehicles, while some chipmakers on Thursday played down the potential damage to supplies. Taiwan's WIN Semiconductors 3105.TWO, which uses gallium for optoelectronic devices, told Reuters only a "small number" of substrates are purchased from China, with most of its supplies coming from Germany and Japan. | Taiwan is a major producer of chips used in everything from smartphones and cars to fighter jets, supplying companies like Apple AAPL.O and Nvidia NVDA.O. By Ben Blanchard and Jan Schwartz TAIWAN, July 6 (Reuters) - Volkswagen said it is monitoring the situation on metals markets after China imposed export restrictions on two minor metals used in semiconductors and electric vehicles, while some chipmakers on Thursday played down the potential damage to supplies. Gallium is used in radar and radio communication devices, satellites and LEDs. | 4 |
164 | 15,020 | 2023-07-05 00:00:00 UTC | PREVIEW-Samsung profit likely lowest in more than 14 years as chip glut persists | AAPL | https://www.nasdaq.com/articles/preview-samsung-profit-likely-lowest-in-more-than-14-years-as-chip-glut-persists-0 | null | null | By Joyce Lee
SEOUL, July 6 (Reuters) - Samsung Electronics' 005930.KS June-quarter profit is expected to plunge 96% on-year to the lowest for any quarter in more than 14 years, as a chip glut continues to drive large losses in the tech giant's cash cow business despite a supply cut.
Operating profit for the world's biggest maker of memory chips, smartphones and TVs likely fell to 555 billion won ($427 million) in the April-June quarter, according to a Refinitiv SmartEstimate from 27 analysts, weighted toward those who are more consistently accurate.
If so, it would be Samsung's lowest profit since the fourth quarter of 2008, when Samsung Electronics reported a consolidated operating loss of about 740 billion won. It compares with an operating profit of 14.1 trillion won in the April-June quarter last year.
This is because its chip division, traditionally its biggest earner, likely reported quarterly losses of around 3 trillion to 4 trillion won as memory chip prices fell further and its inventory values were slashed.
Prices of DRAM memory chips - widely used in smartphones, PCs and servers - continued to slide in the quarter, falling about 13% to 18% according to TrendForce, as chip buyers refrained from purchasing new chips and used up inventories.
However, the price decline slowed from previous quarters as Samsung Electronics and memory chip peers cut supply, and is expected to hit bottom around the third quarter, although a substantial recovery might not come until 2024, analysts said.
Despite the current downturn, Samsung is working to increase its share of chip demand from the exploding field of artificial intelligence (AI), such as with high bandwidth memory (HBM) and chip contract manufacturing, they said.
Its mobile business likely reported an operating profit of around 3.3 trillion won, according to an average of forecasts from five analysts, as efforts to cut marketing costs offset a slight drop in smartphone shipments versus the first quarter, when Samsung launched its latest flagship model.
Samsung is expected to unveil its latest foldable smartphones later this month in Seoul, weeks earlier than usual, seen by analysts as a bid to dominate the premium phone market for longer before rival Apple AAPL.O releases its next iPhone.
The tech giant will announce its preliminary second-quarter earnings results on Friday, before reporting full earnings later this month.
($1 = 1,298.7800 won)
(Reporting by Joyce Lee; Editing by Sonali Paul)
((joyce.lee@tr.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Samsung is expected to unveil its latest foldable smartphones later this month in Seoul, weeks earlier than usual, seen by analysts as a bid to dominate the premium phone market for longer before rival Apple AAPL.O releases its next iPhone. By Joyce Lee SEOUL, July 6 (Reuters) - Samsung Electronics' 005930.KS June-quarter profit is expected to plunge 96% on-year to the lowest for any quarter in more than 14 years, as a chip glut continues to drive large losses in the tech giant's cash cow business despite a supply cut. Its mobile business likely reported an operating profit of around 3.3 trillion won, according to an average of forecasts from five analysts, as efforts to cut marketing costs offset a slight drop in smartphone shipments versus the first quarter, when Samsung launched its latest flagship model. | Samsung is expected to unveil its latest foldable smartphones later this month in Seoul, weeks earlier than usual, seen by analysts as a bid to dominate the premium phone market for longer before rival Apple AAPL.O releases its next iPhone. Operating profit for the world's biggest maker of memory chips, smartphones and TVs likely fell to 555 billion won ($427 million) in the April-June quarter, according to a Refinitiv SmartEstimate from 27 analysts, weighted toward those who are more consistently accurate. If so, it would be Samsung's lowest profit since the fourth quarter of 2008, when Samsung Electronics reported a consolidated operating loss of about 740 billion won. | Samsung is expected to unveil its latest foldable smartphones later this month in Seoul, weeks earlier than usual, seen by analysts as a bid to dominate the premium phone market for longer before rival Apple AAPL.O releases its next iPhone. By Joyce Lee SEOUL, July 6 (Reuters) - Samsung Electronics' 005930.KS June-quarter profit is expected to plunge 96% on-year to the lowest for any quarter in more than 14 years, as a chip glut continues to drive large losses in the tech giant's cash cow business despite a supply cut. This is because its chip division, traditionally its biggest earner, likely reported quarterly losses of around 3 trillion to 4 trillion won as memory chip prices fell further and its inventory values were slashed. | Samsung is expected to unveil its latest foldable smartphones later this month in Seoul, weeks earlier than usual, seen by analysts as a bid to dominate the premium phone market for longer before rival Apple AAPL.O releases its next iPhone. By Joyce Lee SEOUL, July 6 (Reuters) - Samsung Electronics' 005930.KS June-quarter profit is expected to plunge 96% on-year to the lowest for any quarter in more than 14 years, as a chip glut continues to drive large losses in the tech giant's cash cow business despite a supply cut. It compares with an operating profit of 14.1 trillion won in the April-June quarter last year. | 4 |
165 | 15,035 | 2023-07-04 00:00:00 UTC | 3 Top Warren Buffett Dividend Stocks to Buy Now | AAPL | https://www.nasdaq.com/articles/3-top-warren-buffett-dividend-stocks-to-buy-now | null | null | Warren Buffett's record of building wealth makes the holdings of his company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), a no-brainer place to look for investment ideas. Berkshire's portfolio is full of top consumer brands that generate consistent revenue and profits and pay out dividends to shareholders.
Keep in mind that not all the stocks Berkshire owns were picked by Buffett. Many of the smaller holdings were the handiwork of Berkshire's investing lieutenants, Ted Weschler and Todd Combs, who oversee a portion of the conglomerate's portfolio. Nonetheless, Weschler and Combs have equally impressive investing careers worth following.
That said, all of Berkshire's stocks are worthy of further inspection, and some would make great dividend investments. Apple (NASDAQ: AAPL), Kraft Heinz (NASDAQ: KHC), and Kroger (NYSE: KR) are three dividend payers that could deliver great returns from here, according to three Motley Fool contributors. Let's find out more about these three stocks.
Apple is Buffett's favorite
Jeremy Bowman (Apple): With a dividend yield of 0.5%, Apple isn't going to win any awards for yield, but this tech giant has a long track record of raising its dividend and rewarding investors (including with share buybacks).
Additionally, it has one of the widest economic moats in the business world, making it obvious why Buffett is so fond of the business. In fact, Apple now makes up roughly half of Berkshire's stock portfolio thanks to steady buying over the years and Apple's own stock appreciation.
The iPhone and Mac maker has built an unrivaled consumer tech ecosystem with an installed base of roughly 2 billion devices. Once you own one Apple product, it makes sense to buy more if you're in the market for another because they work seamlessly with one another and connect to software like iCloud and the App Store.
Apple's introduction of its new Vision Pro spatial computing headset at its Worldwide Developers Conference in June also puts it in a position to dominate the next era of computing.
While it's unclear yet if headsets like the Vision Pro and Meta Platforms' Quest will gain broad adoption, Apple seems like a good bet to be a leader in spatial computing considering its reputation for consumer hardware, integrations with devices like the iPhone, and the years of research and development that have gone into the device. Priced at $3,500, the Vision Pro is much more expensive than the Quest.
The tech titan has also been applying artificial intelligence (AI) tools like machine learning, meaning the company offers one of the best use cases for AI right now as well. Meanwhile, its market share continues to grow, further entrenching its leadership.
You can rest assured that Apple will deliver monster profits for years to come.
A high-yield food stock
John Ballard (Kraft Heinz): Buffett has a long history of favoring top consumer names, so it's no surprise that Berkshire Hathaway's portfolio is full of some of the biggest brands in the world, including Apple, Coca-Cola, and Kraft Heinz.
Kraft Heinz is more than mac and cheese and ketchup. The company also owns other top brands like Philadelphia and Lunchables. These also happen to be some of the company's strongest performers, driving an 8% year-over-year increase in organic sales in the first quarter. The business is also executing a successful international strategy, with organic sales surging 23% year over year.
It's not all good news. Kraft has struggled to maintain volume growth in the high-inflation environment, as all of its growth was driven by price increases last quarter. Still, the price boosts have been a valuable tool to keep profits up. Margins have been trending up, leading to a 13% rise in adjusted earnings per share last quarter.
Kraft Heinz offers an attractive above-average yield of 4.6% at the time of this writing, although this was only made possible by the company paying out 130% of its free cash flow in dividends over the last year. Paying out more cash than you bring in is not sustainable over the long term.
Part of the problem has been higher inventory levels, which decreased free cash flow produced by the business. Management is working to reduce inventory, so investors should expect free cash flow to recover over the next few years, and sustain the current dividend payout.
The stock is also trading at a cheap forward price-to-earnings ratio of 12, so growing earnings and free cash flow could be a catalyst for the shares.
The stock might outperform if the market decides the business is worth a higher P/E multiple, but I wouldn't buy shares with hopes of making big returns. This isn't a fast-growing business, but Kraft Heinz could be an undervalued dividend stock worth considering ahead of the next bull market.
Fresh food and digital shopping equal higher sales
Jennifer Saibil (Kroger): Investors love growth stocks and for good reason. They're often the driving force behind incredible portfolio gains. And that's what investing is all about, isn't it? Not exactly. That's because stocks with the highest opportunity for gains also typically come with the greatest risks. For most investors, the best way to benefit from growth opportunities while mitigating risk is to create a diversified portfolio with both growth and value stocks.
Then there are investors like Buffett. He's embraced a value approach to investing and tends to steer clear of growth stocks, and yet Berkshire has regularly beaten the market over many years.
One of his value plays is Kroger. Kroger is the second-largest supermarket chain in the U.S. in terms of store count behind Walmart, with over 2,700 stores in 35 states. It operates under the Kroger brand as well as several other smaller brands like Harris Teeter, Fry's, Dillons, Fred Meyer, and Ralphs.
Growth was stagnating before the pandemic. The grocery specialist took too long to get into the digital arena, but it jumped into gear at the beginning of the pandemic and sales exploded. With a new strategy in place emphasizing fresh food and omnichannel shopping, Kroger is demonstrating momentum. Its company-branded food lines, which are high quality at lower prices, have become very popular, presenting a strong growth opportunity. Comparable sales growth dropped after the early pandemic surge, but it's now back to steady increases. In the first quarter of 2023, comparable sales (without fuel) climbed 3.5% over last year, while earnings per share rose from $0.90 last year to $1.32.
Kroger pays a dividend that yields an above-average 2.2%, and it has increased its payout 287% over the past 10 years, or more than double other dividend superstars like Coca-Cola and PepsiCo.
Kroger trades at the cheap valuation of 13 times trailing-12-month earnings. Between its dividend increases and low valuation, as well as its position as an all-seasons essentials company, it's easy to see why Buffett likes this stock, and how it can shore up a diversified portfolio with value and safety.
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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. Jennifer Saibil has no position in any of the stocks mentioned. Jeremy Bowman has positions in Meta Platforms. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Meta Platforms, and Walmart. The Motley Fool recommends Kraft Heinz and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL), Kraft Heinz (NASDAQ: KHC), and Kroger (NYSE: KR) are three dividend payers that could deliver great returns from here, according to three Motley Fool contributors. Kraft Heinz offers an attractive above-average yield of 4.6% at the time of this writing, although this was only made possible by the company paying out 130% of its free cash flow in dividends over the last year. Fresh food and digital shopping equal higher sales Jennifer Saibil (Kroger): Investors love growth stocks and for good reason. | Apple (NASDAQ: AAPL), Kraft Heinz (NASDAQ: KHC), and Kroger (NYSE: KR) are three dividend payers that could deliver great returns from here, according to three Motley Fool contributors. In fact, Apple now makes up roughly half of Berkshire's stock portfolio thanks to steady buying over the years and Apple's own stock appreciation. Fresh food and digital shopping equal higher sales Jennifer Saibil (Kroger): Investors love growth stocks and for good reason. | Apple (NASDAQ: AAPL), Kraft Heinz (NASDAQ: KHC), and Kroger (NYSE: KR) are three dividend payers that could deliver great returns from here, according to three Motley Fool contributors. Apple is Buffett's favorite Jeremy Bowman (Apple): With a dividend yield of 0.5%, Apple isn't going to win any awards for yield, but this tech giant has a long track record of raising its dividend and rewarding investors (including with share buybacks). In fact, Apple now makes up roughly half of Berkshire's stock portfolio thanks to steady buying over the years and Apple's own stock appreciation. | Apple (NASDAQ: AAPL), Kraft Heinz (NASDAQ: KHC), and Kroger (NYSE: KR) are three dividend payers that could deliver great returns from here, according to three Motley Fool contributors. For most investors, the best way to benefit from growth opportunities while mitigating risk is to create a diversified portfolio with both growth and value stocks. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Meta Platforms, and Walmart. | 4 |
166 | 15,043 | 2023-07-03 00:00:00 UTC | Meta to launch Twitter-like app Threads | AAPL | https://www.nasdaq.com/articles/meta-to-launch-twitter-like-app-threads | null | null | July 3 (Reuters) - Meta Platforms META.O plans to launch a microblogging app, Threads, days after Twitter executive chair Elon Musk announced a temporary cap on how many posts users can read on the social media site.
Threads, Instagram's text-based conversation app, is expected to be released on Thursday and will allow users to follow the accounts they follow on the photo-sharing platform and keep the same username, a listing on Apple's AAPL.O App Store showed.
The launch comes after Twitter announced a slate of restrictions on the app, including the need to be verified in order to use TweetDeck.
Musk's latest announcements to address data scraping have sparked a fierce backlash from Twitter users and ad experts said it would undermine new CEO Linda Yaccarino, who started in the role last month.
Meta did not immediately respond to a Reuters request for comment on a similar launch on the Google Play Store.
(Reporting by Akanksha Khushi and Jahnavi Nidumolu in Bengaluru; Editing by Krishna Chandra Eluri)
((Akanksha.Khushi@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Threads, Instagram's text-based conversation app, is expected to be released on Thursday and will allow users to follow the accounts they follow on the photo-sharing platform and keep the same username, a listing on Apple's AAPL.O App Store showed. July 3 (Reuters) - Meta Platforms META.O plans to launch a microblogging app, Threads, days after Twitter executive chair Elon Musk announced a temporary cap on how many posts users can read on the social media site. Musk's latest announcements to address data scraping have sparked a fierce backlash from Twitter users and ad experts said it would undermine new CEO Linda Yaccarino, who started in the role last month. | Threads, Instagram's text-based conversation app, is expected to be released on Thursday and will allow users to follow the accounts they follow on the photo-sharing platform and keep the same username, a listing on Apple's AAPL.O App Store showed. July 3 (Reuters) - Meta Platforms META.O plans to launch a microblogging app, Threads, days after Twitter executive chair Elon Musk announced a temporary cap on how many posts users can read on the social media site. Musk's latest announcements to address data scraping have sparked a fierce backlash from Twitter users and ad experts said it would undermine new CEO Linda Yaccarino, who started in the role last month. | Threads, Instagram's text-based conversation app, is expected to be released on Thursday and will allow users to follow the accounts they follow on the photo-sharing platform and keep the same username, a listing on Apple's AAPL.O App Store showed. July 3 (Reuters) - Meta Platforms META.O plans to launch a microblogging app, Threads, days after Twitter executive chair Elon Musk announced a temporary cap on how many posts users can read on the social media site. (Reporting by Akanksha Khushi and Jahnavi Nidumolu in Bengaluru; Editing by Krishna Chandra Eluri) ((Akanksha.Khushi@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Threads, Instagram's text-based conversation app, is expected to be released on Thursday and will allow users to follow the accounts they follow on the photo-sharing platform and keep the same username, a listing on Apple's AAPL.O App Store showed. July 3 (Reuters) - Meta Platforms META.O plans to launch a microblogging app, Threads, days after Twitter executive chair Elon Musk announced a temporary cap on how many posts users can read on the social media site. The launch comes after Twitter announced a slate of restrictions on the app, including the need to be verified in order to use TweetDeck. | 4 |
167 | 15,078 | 2023-07-02 00:00:00 UTC | The Best AI Stock to Own Could Be Sitting in Your Pocket | AAPL | https://www.nasdaq.com/articles/the-best-ai-stock-to-own-could-be-sitting-in-your-pocket | null | null | If you're hunting for artificial intelligence (AI) stocks to buy, you're not alone.
Excitement over AI has surged since OpenAI launched ChatGPT late last year, and it's not just investors who see an opportunity in the new technology. Companies are talking up their AI initiatives more than ever before, a sign that the boom is more than just hype.
Meanwhile, shares of Nvidia (NASDAQ: NVDA), the semiconductor champ, skyrocketed after management gave much better guidance than expected for the second quarter. This indicates that demand for its AI chips is surging as businesses large and small are looking to leverage new generative AI technologies.
However, many of the well-known AI stocks have already seen their valuations spike as investors have piled into them, even as most have barely shown positive results from the AI boom.
Nvidia, for example, now trades at a price-to-earnings ratio of around 200 and has a market cap of $1 trillion. C3.ai, another AI stock that soared this year, has a price-to-sales ratio of 15, even though revenue growth was flat.
If you're looking for a reasonably priced AI stock that could be a big winner, the answer could be more obvious than you think.
Image source: Getty Images.
The consumer tech king
Unlike its big tech peers -- including Microsoft, Alphabet, Amazon, and Meta Platforms -- Apple (NASDAQ: AAPL) has spent little time talking up its ambitions in artificial intelligence, and its management has generally avoided using the buzzy phrase on earnings calls and other presentations.
However, Apple could be one of the biggest winners from the AI boom since it has a suite of devices ready to serve as vehicles for the new technology. In other words, unlike many companies trying to leverage the power of AI, Apple has a business model already built in to capitalize on it: selling devices and the services that go with them.
And right now, there's no device more capable of capitalizing on the AI boom than the Vision Pro, the mixed reality headset that Apple unveiled at its Worldwide Developers Conference in early June and that retails for $3,500.
The Vision Pro uses machine learning to do things like render a full image of your face so you can use FaceTime even though you wear the device over your eyes and it has no full frontal cameras. To do so, the Vision Pro uses its front sensors and a neural network to create what Apple calls "your digital persona."
AI is also what allows the Vision Pro to function without using the kind of handheld haptics that the Meta Quest requires, one example of how the Vision Pro is pushing the limits of technology, including AI.
That also forms the backbone of other tools like predictive text, Siri, and new applications, including Journal, which can personalize suggestions taken from your iPhone to help you write.
Why Apple is the easiest AI stock to own
It's unclear if the Vision Pro will be a success, and the new device doesn't go on sale until early next year. But its introduction puts Apple on the pole position to control the next computing platform, meaning it's also the company most likely to own the device that serves as the vehicle for AI.
If the technology is as powerful as AI bulls believe it will be, Apple's consumer-tech ecosystem will grow even stronger.
Apple has tons of brand equity in consumer hardware, competitive advantages through its installed base of 2 billion complementary devices, and now the device that could be the next generation of tech hardware.
If you're putting together an AI stock portfolio, Apple is a no-brainer.
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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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Amazon.com and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends C3.ai. 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 consumer tech king Unlike its big tech peers -- including Microsoft, Alphabet, Amazon, and Meta Platforms -- Apple (NASDAQ: AAPL) has spent little time talking up its ambitions in artificial intelligence, and its management has generally avoided using the buzzy phrase on earnings calls and other presentations. In other words, unlike many companies trying to leverage the power of AI, Apple has a business model already built in to capitalize on it: selling devices and the services that go with them. And right now, there's no device more capable of capitalizing on the AI boom than the Vision Pro, the mixed reality headset that Apple unveiled at its Worldwide Developers Conference in early June and that retails for $3,500. | The consumer tech king Unlike its big tech peers -- including Microsoft, Alphabet, Amazon, and Meta Platforms -- Apple (NASDAQ: AAPL) has spent little time talking up its ambitions in artificial intelligence, and its management has generally avoided using the buzzy phrase on earnings calls and other presentations. See the 10 stocks *Stock Advisor returns as of June 26, 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 Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Nvidia. | The consumer tech king Unlike its big tech peers -- including Microsoft, Alphabet, Amazon, and Meta Platforms -- Apple (NASDAQ: AAPL) has spent little time talking up its ambitions in artificial intelligence, and its management has generally avoided using the buzzy phrase on earnings calls and other presentations. AI is also what allows the Vision Pro to function without using the kind of handheld haptics that the Meta Quest requires, one example of how the Vision Pro is pushing the limits of technology, including AI. Why Apple is the easiest AI stock to own It's unclear if the Vision Pro will be a success, and the new device doesn't go on sale until early next year. | The consumer tech king Unlike its big tech peers -- including Microsoft, Alphabet, Amazon, and Meta Platforms -- Apple (NASDAQ: AAPL) has spent little time talking up its ambitions in artificial intelligence, and its management has generally avoided using the buzzy phrase on earnings calls and other presentations. Why Apple is the easiest AI stock to own It's unclear if the Vision Pro will be a success, and the new device doesn't go on sale until early next year. But its introduction puts Apple on the pole position to control the next computing platform, meaning it's also the company most likely to own the device that serves as the vehicle for AI. | 4 |
168 | 15,081 | 2023-07-01 00:00:00 UTC | Does Meta Have a Chance Against Apple in VR? | AAPL | https://www.nasdaq.com/articles/does-meta-have-a-chance-against-apple-in-vr | null | null | Apple (NASDAQ: AAPL) doesn't release its Vision Pro headset until next year, but it's already staking out a different position in the market than Meta Platforms (NASDAQ: META). Meta will focus on gaming and social applications, while Apple can go high-end with real productivity use cases. In this video, Travis Hoium covers who has the best chance of winning.
*Stock prices used were end-of-day prices of June 26, 2023. The video was published on June 28, 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. | Apple (NASDAQ: AAPL) doesn't release its Vision Pro headset until next year, but it's already staking out a different position in the market than Meta Platforms (NASDAQ: META). Meta will focus on gaming and social applications, while Apple can go high-end with real productivity use cases. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | Apple (NASDAQ: AAPL) doesn't release its Vision Pro headset until next year, but it's already staking out a different position in the market than Meta Platforms (NASDAQ: META). See the 10 stocks *Stock Advisor returns as of June 26, 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. | Apple (NASDAQ: AAPL) doesn't release its Vision Pro headset until next year, but it's already staking out a different position in the market than Meta Platforms (NASDAQ: META). See the 10 stocks *Stock Advisor returns as of June 26, 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. | Apple (NASDAQ: AAPL) doesn't release its Vision Pro headset until next year, but it's already staking out a different position in the market than Meta Platforms (NASDAQ: META). In this video, Travis Hoium covers who has the best chance of winning. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Meta Platforms wasn't one of them! | 4 |
169 | 15,098 | 2023-06-30 00:00:00 UTC | US STOCKS-Wall St rallies as Apple hits $3 trillion in market cap, inflation cools | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-st-rallies-as-apple-hits-%243-trillion-in-market-cap-inflation-cools | null | null | By Sruthi Shankar and Johann M Cherian
June 30 (Reuters) - U.S. stocks rallied on Friday, putting the tech-heavy Nasdaq on course for its best first-half performance in 40 years as Apple touched $3 trillion in market value and signs of easing inflation comforted investors.
Apple Inc AAPL.Obreached the mark for the first time since January last year, after rising 1.5% to hit an all-time high of $192.40, on optimism about the potential for artificial intelligence and the iPhone maker's ability to grow revenue.
Amazon AMZN.O, Microsoft MSFT.O, Alphabet GOOGL.O and Nvidia NVDA.O rose between 1.2% and 3.3%, extending a blistering rally this year fueled by strong earnings and the AI buzz.
"The biggest companies are thriving right now because all the macro conditions are in favor of them," said David Russell, vice president of market intelligence at TradeStation. "The PCE (Personal Consumption Expenditure) numbers give us a confirmation that the worst of the inflation crisis appears to have passed."
A Commerce Department report showed the PCE index, the Fed's preferred inflation gauge, advanced 3.8%, compared with a 4.3% rise in April. Excluding the volatile food and energy components, the PCE price index gained 0.3%, down from 0.4% in the previous month.
After the data, traders were pricing in an 86.8% chance that the Fed will hike rates by 25 basis points to 5.25%-5.50% range in its July meeting, according to CMEGroup's Fedwatch tool, down slightly from the 89.3% on Thursday.
At 12:14 p.m. ET, the Dow Jones Industrial Average .DJI was up 216.72 points, or 0.64%, at 34,339.14, the S&P 500 .SPX was up 44.28 points, or 1.01%, at 4,440.72, and the Nasdaq Composite .IXIC was up 175.78 points, or 1.29%, at 13,767.12.
Hawkish remarks from Fed Chair Jerome Powell and strong economic data this week boosted bets that Fed will continue to raise rates, but stock markets took comfort in signs of strength in the U.S. economy.
An upbeat first-quarter earnings season and optimism about the economy put the three main U.S. indexes on course for second-quarter gains. The Nasdaq was set for its best first-half performance in 40 years with a 31.5% gain.
The Nasdaq 100 index .NDX of top technology stocks was on track for its best first half on record with a 38.5% rise.
The CBOE Market Volatility Index .VIX, Wall Street's fear gauge, slipped to a one-week low at 12.98 points.
Among other single stocks, Nike Inc NKE.N shed 2.2% after it forecast first-quarter revenue below Wall Street expectations.
Carnival Corp CCL.N jumped 9.3% after Jefferies upgraded the cruise operator's stock to "buy" from "hold".
Advancing issues outnumbered decliners by a 2.95-to-1 ratio on the NYSE and 1.55-to-1 ratio on the Nasdaq.
The S&P index recorded 70 new 52-week highs and no new lows, while the Nasdaq recorded 95 new highs and 57 new lows.
(Reporting by Sruthi Shankar, Johann M Cherian and Shashwat Chauhan in Bengaluru; Editing by Shinjini Ganguli)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))
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.Obreached the mark for the first time since January last year, after rising 1.5% to hit an all-time high of $192.40, on optimism about the potential for artificial intelligence and the iPhone maker's ability to grow revenue. By Sruthi Shankar and Johann M Cherian June 30 (Reuters) - U.S. stocks rallied on Friday, putting the tech-heavy Nasdaq on course for its best first-half performance in 40 years as Apple touched $3 trillion in market value and signs of easing inflation comforted investors. After the data, traders were pricing in an 86.8% chance that the Fed will hike rates by 25 basis points to 5.25%-5.50% range in its July meeting, according to CMEGroup's Fedwatch tool, down slightly from the 89.3% on Thursday. | Apple Inc AAPL.Obreached the mark for the first time since January last year, after rising 1.5% to hit an all-time high of $192.40, on optimism about the potential for artificial intelligence and the iPhone maker's ability to grow revenue. By Sruthi Shankar and Johann M Cherian June 30 (Reuters) - U.S. stocks rallied on Friday, putting the tech-heavy Nasdaq on course for its best first-half performance in 40 years as Apple touched $3 trillion in market value and signs of easing inflation comforted investors. A Commerce Department report showed the PCE index, the Fed's preferred inflation gauge, advanced 3.8%, compared with a 4.3% rise in April. | Apple Inc AAPL.Obreached the mark for the first time since January last year, after rising 1.5% to hit an all-time high of $192.40, on optimism about the potential for artificial intelligence and the iPhone maker's ability to grow revenue. By Sruthi Shankar and Johann M Cherian June 30 (Reuters) - U.S. stocks rallied on Friday, putting the tech-heavy Nasdaq on course for its best first-half performance in 40 years as Apple touched $3 trillion in market value and signs of easing inflation comforted investors. Hawkish remarks from Fed Chair Jerome Powell and strong economic data this week boosted bets that Fed will continue to raise rates, but stock markets took comfort in signs of strength in the U.S. economy. | Apple Inc AAPL.Obreached the mark for the first time since January last year, after rising 1.5% to hit an all-time high of $192.40, on optimism about the potential for artificial intelligence and the iPhone maker's ability to grow revenue. By Sruthi Shankar and Johann M Cherian June 30 (Reuters) - U.S. stocks rallied on Friday, putting the tech-heavy Nasdaq on course for its best first-half performance in 40 years as Apple touched $3 trillion in market value and signs of easing inflation comforted investors. The CBOE Market Volatility Index .VIX, Wall Street's fear gauge, slipped to a one-week low at 12.98 points. | 5 |
170 | 15,132 | 2023-06-29 00:00:00 UTC | 7 Top Growth Stocks to Watch for H2 2023 | AAPL | https://www.nasdaq.com/articles/7-top-growth-stocks-to-watch-for-h2-2023 | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
After a disappointing 2022, the first half of the year has been all you could ask for from growth stocks. There are many reasons to believe that the year’s second half will also be profitable.
Remember where we came from. The Dow Jones Industrial Average was down more than 20% at times last year before finishing 2022 with a 9% loss, and that was one of the better performances of the miserable year. The S&P 500 finished 2022 down 20%, and the Nasdaq composite sank 34%. It wasn’t a growth stocks kind of year.
All three are rebounding. The Dow’s been the most measured, up 2% on the year, while the S&P 500 rose 12%, and the tech-heavy Nasdaq is up 27% in 2023.
What does that tell us?
The Nasdaq stocks had the furthest to gain because they dropped the most. But they still haven’t regained all their 2022 losses. The Nasdaq index is still down nearly 15% from where it was at the beginning of 2022. The Dow, which fell the least amount last year, is down 5.6%, and the S&P 500 is off 8%.
Growth stocks suffered the most in 2022 and now have the most to gain. And when you add to that the enthusiasm on Wall Street for artificial intelligence products, you have a recipe for outsized gains in the second half of 2023.
The Portfolio Grader highlighted several intriguing growth stocks flashing buy signals.
Microsoft (MSFT)
Source: Sergei Elagin / Shutterstock.com
Microsoft (NASDAQ:MSFT) is the second-largest company in the world (spoiler alert: we’ll get to No. 1 later in this list), with a market capitalization of $2.5 trillion. It reached the $1 trillion market cap milestone in June 2019 and then added another $1.5 trillion.
Only four companies worldwide have a market cap of $1.5 trillion, and Microsoft built that much value in just four years.
It’s pretty impressive that you can consider a company this large and established as a growth stock, but Microsoft fits the bill.
The stock is up nearly 40% this year as investors rallied around the company’s revolutionary in its Bing web browser thanks to generative AI powered by OpenAI’s ChatGPT.
But I also like Microsoft for two other reasons that have nothing to do with AI. The company’s non-AI consumer and business offerings still have room to bounce, and when they do, it will push the MSFT stock higher.
Also, earnings forecasts beyond FY2024 indicate Microsoft is expected to enjoy even higher levels of profitability as part of a multi-year growth resurgence.
All in all, MSFT is an outstanding growth stock for the second half. It has “B” ratings in the Portfolio Grader for both earnings growth and sales growth.
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
I’m not going to make you wait for it. Apple (NASDAQ:AAPL), the largest company in the world by market capitalization at nearly $3 trillion, also makes our list of growth stocks to buy in the second half.
Apple’s been on fire in 2023, up 44% and helping to push its market capitalization up 27% since Jan. 1.
Why is that going to continue in the second half? One primary consideration is Apple’s expected iPhone release, which is expected in the third quarter.
An estimated 250 million iPhones are at least four years old. And since the average iPhone sale comes to nearly $1,000, there’s a lot of revenue to be had in the second half of the year.
Apple also uses AI to its advantage to improve its products. A new update will use AI to spellcheck your texts by considering the context of the words that you’re using. That will hopefully reduce annoying and sometimes embarrassing auto-correct mistakes and make people appreciate their iPhones even more.
AAPL stock has “B” ratings for earnings growth and sales growth from the Portfolio Grader.
Nvidia (NVDA)
Source: JHVEPhoto / Shutterstock.com
No list of growth stocks to buy in the second half of 2023 would be complete without Nvidia (NASDAQ:NVDA). The chip maker is seeing unprecedented demand for its top-line chips because they’re used to power many of the most significant AI advances.
Like many other growth stocks, shares fell in 2022. A slump in graphics card sales pushed NVDA down by 50%. While the first quarter results showed signs of progress, the stock took off when Nvidia adjusted its guidance for Q2.
It boosted its expected revenue from $7.2 billion to $11 billion, an increase of 64% from just a year ago. The growth was attributed to the demand for NVDA chips to power generative AI applications.
Nvidia also announced a new partnership with Snowflake (NYSE:SNOW) to develop custom AI models and help Snowflake customers develop their own AI assistants.
I think $11 billion in quarterly revenue will look like a comparatively small number for NVDA in the second half. NVDA has a “B” grade in the Portfolio Grader for earnings growth and an “A” rating for sales growth.
Oracle (ORCL)
Source: JHVEPhoto / Shutterstock.com
Even an older computing company like Oracle (NYSE:ORCL) is entering the AI business. Oracle announced that it’s creating a generative AI cloud service tied to a partnership with a startup, Cohere, that uses Oracle’s cloud infrastructure.
Moves like that bode well for Oracle’s continued success. ORCL stock is up 44% in 2023.
The company already reported earnings for its fiscal fourth quarter, which ended May 31. Revenue was up 17% on a year-over-year basis, and cloud services and license support revenue was up 23%.
Oracle’s moves to expand its cloud services are paying off for shareholders. Oracle spent $28 billion a year ago to buy the healthcare IT software company Cerner and bought cloud software company NetSuite in 2016.
It shows that even a tech company pushing 50 years old can still innovate and be a growth stock. ORCL has “B” grades from the Portfolio Grader for both sales and earnings growth.
Chipotle Mexican Grill (CMG)
Source: Northfoto / Shutterstock.com
Chipotle Mexican Grill (NYSE:CMG) is a different kind of fast food restaurant. Not only does it forgo burgers and fries in favor of burritos and rice bowls, but it’s also made a name for using only fresh ingredients.
From a corporate structure point of view, it’s interesting that Chipotle rejects the franchise model that many fast-food chains use – the company owns all of its 3,200 restaurants in the U.S., Canada, the U.K., France and Germany.
CMG stock is up 48% this year after a massive jump following its first-quarter earnings report. In that report, Chipotle had revenue of $2.4 billion, an improvement of 17% from a year ago. But the eye-popping number was net income, which was $291.6 million, an increase of 84% from the previous year. Earnings per share were $10.50.
Chipotle announced plans to open another 255 to 285 restaurants by the end of the year. CMG stock has an “A” rating in the Portfolio Grader for earnings growth and a “B” rating for sales growth.
PDD Holdings (PDD)
Source: madamF / Shutterstock.com
PDD Holdings (NASDAQ:PDD) is the corporate parent of Pinduoduo, a Chinese e-commerce company. Pinduoduo focuses on the agricultural industry, facilitating small-scale farmers’ sales of fruits and vegetables directly to consumers.
Unlike other names on this list, PDD is in the red for the year’s first half. The stock is down 12% as it and other Chinese e-commerce stocks faltered while China began emerging from its Covid-19 lockdowns.
But with a population of 1.4 billion, China’s e-commerce market is formidable, even when in a lull. It has a projected market value of $1.48 billion this year.
And Pinduoduo will undoubtedly keep a large percentage of that market. The company generated $21 billion in revenue last year and a healthy net income of $5.4 billion.
PDD is also expanding into Western markets. Its Temu app, which provides heavily discounted goods from China, is the most downloaded shopping app in the U.S., Germany, the U.K., France, Canada and Italy.
PDD stock is heavily discounted now, but the second half of the year looks exceptionally promising. PDD has “A” ratings in the Portfolio Grader for both earnings growth and sales growth.
Acushnet (GOLF)
Source: Freedom365day / Shutterstock.com
Acushnet (NYSE:GOLF) designs, develops and distributes products for golfers. Its most recognizable brand is Titleist, which includes branded golf balls, clubs and other gear. Another brand, FootJoy, provides golf shoes, gloves and other apparel.
The Massachusetts-based company was founded in 1932, so it has plenty of staying power. But what makes it a growth stock more than 90 years after it was founded?
One significant catalyst has been in the news lately: a sudden and shocking agreement between the PGA Tour and Saudi-backed LIV Golf League to drop the lawsuits between the two organizations and announce a “newly formed commercial entity to unify golf.”
This spring’s announcement sent GOLF stock up by 5% in a single day, as Jefferies analyst Randal Konik suggested that the agreement holds “immense potential to elevate the sport of golf to new heights.”
Acushnet was already trending in the right direction. Earnings in the first quarter of $686.3 million were 13% better than a year ago and beat analysts’ expectations for $631.12 million. Earnings per share of $1.39 was 30 cents per share better than the Street expected.
GOLF stock is up 26% in the year’s first half, with more to come. It has a “B” rating from the Portfolio Grader for earnings growth and an “A” rating for sales growth.
Novartis (NVS)
Source: Denis Linine / Shutterstock.com
Swiss pharmaceutical company Novartis (NYSE:NVS) produces prescription drugs, generic medications and eye care products. It has a broad portfolio of drugs – only two (Entresto, a heart failure drug, and Cosentyx, a psoriasis treatment) account for 10% of the company’s annual revenue.
The company’s been working to shed side businesses, such as divesting its eye care unit Alcon (NYSE:ALC), and plans to spin off its generic drug business Sandoz.
One thing to keep a close eye on is Cosentyx. European Union regulators approved the drug to treat patients with moderate-to-severe hidradenitis suppurativa (HS), a progressive inflammatory skin condition.
Previously, AbbVie’s (NYSE:ABBV) Humira was the only drug to treat HS, so there’s an opportunity for Novartis to capitalize on a new revenue stream.
Revenue for the first quarter was $12.95 billion, with EPS of $1.71, both better than expectations of $12.6 billion and EPS of $1.54. NVS stock has a “B” rating in the Portfolio Grader for earnings growth and an “A” rating for sales growth.
On the date of publication, Louis Navellier had a long position in MSFT and NVDA. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article had a long position in AAPL. The staff member did not hold (either directly or indirectly) any other positions in the securities mentioned in this article.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ:AAPL), the largest company in the world by market capitalization at nearly $3 trillion, also makes our list of growth stocks to buy in the second half. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com I’m not going to make you wait for it. AAPL stock has “B” ratings for earnings growth and sales growth from the Portfolio Grader. | Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com I’m not going to make you wait for it. Apple (NASDAQ:AAPL), the largest company in the world by market capitalization at nearly $3 trillion, also makes our list of growth stocks to buy in the second half. AAPL stock has “B” ratings for earnings growth and sales growth from the Portfolio Grader. | Apple (NASDAQ:AAPL), the largest company in the world by market capitalization at nearly $3 trillion, also makes our list of growth stocks to buy in the second half. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com I’m not going to make you wait for it. AAPL stock has “B” ratings for earnings growth and sales growth from the Portfolio Grader. | Apple (NASDAQ:AAPL), the largest company in the world by market capitalization at nearly $3 trillion, also makes our list of growth stocks to buy in the second half. Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com I’m not going to make you wait for it. AAPL stock has “B” ratings for earnings growth and sales growth from the Portfolio Grader. | 5 |
171 | 15,158 | 2023-06-28 00:00:00 UTC | AAPL Factor-Based Stock Analysis | AAPL | https://www.nasdaq.com/articles/aapl-factor-based-stock-analysis-1 | null | null | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. | 5 |
172 | 15,167 | 2023-06-27 00:00:00 UTC | US STOCKS-Wall Street closes higher as upbeat economic data allays slowdown fears | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-closes-higher-as-upbeat-economic-data-allays-slowdown-fears | null | null | By Sinéad Carew, Sruthi Shankar and Johann M Cherian
June 27 (Reuters) - U.S. stock indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes.
Separate reports showed new orders for key U.S.-manufactured capital goods unexpectedly rose in May, and sales of new single-family homes surged in the same month, while U.S. consumer confidence increased to a near 1-1/2 year high in June.
The data gave investors a reason to buy back into stocks after a "pretty vicious correction" in the last several sessions, said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.
"What we have today is this series of economic releases that on balance fit this setting of an economy that continues to be in an expansionary mode, without at the same time suggesting there's any condition that's running too hot."
And just days before the second quarter ends, Luschini said it was notable that some the top sector performers on Tuesday, such as consumer discretionary .SPLRCD and technology .SPLRCT, were also the market's biggest gainers on a year-to-date basis.
While the economic data was encouraging, Rhys Williams, chief strategist at Spouting Rock Asset Management, said the market was likely helped by so-called window-dressing, when fund managers add outperforming assets to their portfolio for their quarter-end statements.
"You'd a bad week in the stock market last week and a bad day on Monday. It's just a bit of recovery," said Williams. "There could be some quarter-end window-dressing too as we get close to the end of the quarter."
The blue-chip Dow Jones Industrial Average .DJI snapped a six-day losing streak on Tuesday while the tech-heavy Nasdaq Composite .IXIC was eyeing its best first-half performance in 40 years and the S&P 500 .SPX advanced after falling in five of the last six sessions.
The Dow Jones Industrial Average .DJI rose 212.03 points, or 0.63%, to 33,926.74; the S&P 500 .SPX gained 49.59 points, or 1.15%, at 4,378.41; and the Nasdaq Composite .IXIC added 219.90 points, or 1.65%, at 13,555.67.
The signs of U.S. economic resilience also boosted the Dow Transports index .DJT, which closed up 2.7% and the small-cap Russell 2000 index .RUT, which advanced 1.5%.
And the PHLX Housing index .HGX closed up 2.99% after hitting an all-time high on Tuesday.
Traders were pricing in a roughly 77% chance the Fed will raise interest rates by 25 bps to the 5.25%-5.50% range in its July meeting, according to CME Group's Fedwatch tool, up from 74.4% a day earlier.
More economic data is expected this week, including a key inflation measure, as well as Fed Chair Jerome Powell's speech at the European Central Bank Forum in Sintra, Portugal, which could provide cues on the path of interest rates.
Powell's hawkish comments last week stalled a U.S. stock rally that had pushed the S&P 500 and Nasdaq to an over one-year high and the Dow to a six-month peak.
Despite recent market weakness, a growth stocks rally, an upbeat earnings season and hopes of the Fed ending its monetary tightening soon have set the main indexes on course for quarterly gains.
Market heavyweights Microsoft Corp MSFT.O and Apple Inc AAPL.O were among the biggest boosts to the S&P 500 during the session, along with Amazon.com Inc AMZN.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O.
Meta Platforms Inc META.O shares rose 3% after Citigroup raised its price target on the stock.
Snowflake SNOW.N climbed 4.2% after the cloud data analytics company announced a partnership with Nvidia to allow customers to build artificial intelligence models using their own data.
Walgreens Boots Alliance WBA.O shares sank 9.3% as the pharmacy chain cut its annual profit forecast on lower demand for COVID-19 tests and vaccines.
Other drugstore chains, including CVS Health Corp CVS.N and Rite Aid Corp RAD.N, also fell.
Lordstown Motors Corp RIDE.O shares slumped 17.2% after the U.S. electric truck manufacturer filed for bankruptcy protection and put itself up for sale.
Advancing issues outnumbered decliners on the NYSE by a 2.55-to-1 ratio; on Nasdaq, a 1.54-to-1 ratio favored advancers.
The S&P 500 posted 46 new 52-week highs and one new low; the Nasdaq Composite recorded 64 new highs and 150 new lows.
On U.S. exchanges 10.16 billion shares changed hands compared with the 11.63 billion average for the last 20 sessions.
(Reporting by Sinéad Carew in New York, Sruthi Shankar, Johann M Cherian in Bengaluru and Terence Gabriel in New York; Editing by Shinjini Ganguli and Richard Chang)
((sinead.carew@thomsonreuters.com; +1 332-219-1897))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Market heavyweights Microsoft Corp MSFT.O and Apple Inc AAPL.O were among the biggest boosts to the S&P 500 during the session, along with Amazon.com Inc AMZN.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 27 (Reuters) - U.S. stock indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes. The data gave investors a reason to buy back into stocks after a "pretty vicious correction" in the last several sessions, said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia. | Market heavyweights Microsoft Corp MSFT.O and Apple Inc AAPL.O were among the biggest boosts to the S&P 500 during the session, along with Amazon.com Inc AMZN.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 27 (Reuters) - U.S. stock indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes. The Dow Jones Industrial Average .DJI rose 212.03 points, or 0.63%, to 33,926.74; the S&P 500 .SPX gained 49.59 points, or 1.15%, at 4,378.41; and the Nasdaq Composite .IXIC added 219.90 points, or 1.65%, at 13,555.67. | Market heavyweights Microsoft Corp MSFT.O and Apple Inc AAPL.O were among the biggest boosts to the S&P 500 during the session, along with Amazon.com Inc AMZN.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 27 (Reuters) - U.S. stock indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes. While the economic data was encouraging, Rhys Williams, chief strategist at Spouting Rock Asset Management, said the market was likely helped by so-called window-dressing, when fund managers add outperforming assets to their portfolio for their quarter-end statements. | Market heavyweights Microsoft Corp MSFT.O and Apple Inc AAPL.O were among the biggest boosts to the S&P 500 during the session, along with Amazon.com Inc AMZN.O, Tesla Inc TSLA.O and Nvidia Corp NVDA.O. By Sinéad Carew, Sruthi Shankar and Johann M Cherian June 27 (Reuters) - U.S. stock indexes rebounded on Tuesday from a recent losing streak as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes. "There could be some quarter-end window-dressing too as we get close to the end of the quarter." | 5 |
173 | 15,187 | 2023-06-26 00:00:00 UTC | Technology Sector Update for 06/26/2023: ENFN, META, GOOG, AAPL, AVGO | AAPL | https://www.nasdaq.com/articles/technology-sector-update-for-06-26-2023%3A-enfn-meta-goog-aapl-avgo | null | null | Tech stocks were mixed late Monday with the Technology Select Sector SPDR Fund (XLK) decreasing 0.3% and the Philadelphia Semiconductor index advancing 1%.
In company news, Enfusion (ENFN) shares were rising 20% after Reuters reported the software firm is being courted by private equity firms and strategic buyers.
Meta Platforms (META) on Monday launched its Meta Quest+ virtual reality subscription service for the Quest 2 and Quest Pro headsets. Its shares were down 3.2%.
Alphabet's (GOOG) unit Google won a US Supreme Court ruling as the justices left standing a decision that tossed out a suit by music website Genius alleging Google stole millions of music lyrics, Bloomberg reported. Alphabet shares were down 3%.
The US Supreme Court declined Apple (AAPL) and Broadcom's (AVGO) petition to review a previously rejected patent infringement lawsuit decision pertaining to certain California Institute of Technology patents, according to a court filing. Apple shares were down 0.6% while Broadcom was up 0.3%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The US Supreme Court declined Apple (AAPL) and Broadcom's (AVGO) petition to review a previously rejected patent infringement lawsuit decision pertaining to certain California Institute of Technology patents, according to a court filing. Tech stocks were mixed late Monday with the Technology Select Sector SPDR Fund (XLK) decreasing 0.3% and the Philadelphia Semiconductor index advancing 1%. Alphabet's (GOOG) unit Google won a US Supreme Court ruling as the justices left standing a decision that tossed out a suit by music website Genius alleging Google stole millions of music lyrics, Bloomberg reported. | The US Supreme Court declined Apple (AAPL) and Broadcom's (AVGO) petition to review a previously rejected patent infringement lawsuit decision pertaining to certain California Institute of Technology patents, according to a court filing. Meta Platforms (META) on Monday launched its Meta Quest+ virtual reality subscription service for the Quest 2 and Quest Pro headsets. Alphabet shares were down 3%. | The US Supreme Court declined Apple (AAPL) and Broadcom's (AVGO) petition to review a previously rejected patent infringement lawsuit decision pertaining to certain California Institute of Technology patents, according to a court filing. In company news, Enfusion (ENFN) shares were rising 20% after Reuters reported the software firm is being courted by private equity firms and strategic buyers. Alphabet's (GOOG) unit Google won a US Supreme Court ruling as the justices left standing a decision that tossed out a suit by music website Genius alleging Google stole millions of music lyrics, Bloomberg reported. | The US Supreme Court declined Apple (AAPL) and Broadcom's (AVGO) petition to review a previously rejected patent infringement lawsuit decision pertaining to certain California Institute of Technology patents, according to a court filing. Tech stocks were mixed late Monday with the Technology Select Sector SPDR Fund (XLK) decreasing 0.3% and the Philadelphia Semiconductor index advancing 1%. Alphabet shares were down 3%. | 5 |
174 | 15,209 | 2023-06-25 00:00:00 UTC | The Top Stocks to Buy With $1,000 Right Now | AAPL | https://www.nasdaq.com/articles/the-top-stocks-to-buy-with-%241000-right-now | null | null | Investing in the stock market, while made out to be complicated and intimidating, can be a simple exercise. The best course of action is to find quality businesses with competitive advantages. And focus on owning them for a very long time, at least five years. By prioritizing these things, anyone can benefit from the wealth-generating capabilities of the market.
I believe that Apple (NASDAQ: AAPL), O'Reilly Automotive (NASDAQ: ORLY), and Visa (NYSE: V) are companies that fit the quality standards I just mentioned. Even with just $1,000 to invest, it's a good idea to spread that out evenly among these three top stocks. Let's take a closer look.
1. Apple
It's the most valuable business in the world, with a market cap of $2.9 trillion. The iPhone is still its crown jewel, representing 54% of overall company revenue in the fiscal 2023 second quarter (ended March 31). All hardware accounts for 78% of sales.
But shareholders should start paying attention to the Services segment, which includes things like Apple Pay, Apple TV+, and Apple Music. Revenue in this division increased 5% year over year last quarter, faster than the overall business. If it keeps this up, profits should get a lift, since this segment carries a superb gross margin of 71%.
Over the past five years, Apple shares have risen 302%, easily beating the Nasdaq Composite Index's 76% return. After this type of performance, the stock isn't necessarily cheap, trading at a price-to-earnings (P/E) ratio of 32.
But to own one of the most dominant enterprises in the world that sells some of the most in-demand products and services, investors might be fine with paying a premium valuation for Apple.
2. O'Reilly Automotive
With over 6,000 stores, O'Reilly is one of the leading auto parts retailers. It has registered steady increases in revenue, same-store sales, and profits throughout the last decade by catering to both DIY customers and mechanics. And there's no reason to believe this impressive track record won't continue.
The business benefits from the growing population of aging cars, with more wear and tear resulting in strong demand for what O'Reilly sells. And even in recessionary times, when consumers delay purchasing new vehicles and focus on fixing their existing ones, the company is positioned for success.
O'Reilly won't ever win the award for the most exciting company. This isn't a high-flying tech business that is developing innovative and disruptive products. It's a durable, predictable, and boring retailer that consistently generates lots of free cash flow. That makes for a good investment candidate.
The stock has been a huge winner, up 225% in the last five years. And it's up more than 50% in just the past 12 months. Maybe this strong momentum can continue.
3. Visa
Operating in a duopoly in the card payments industry, Visa is arguably one of the best businesses in the world. Its revenue has increased at a compound annual rate of more than 9% over the past decade. And during this time, the operating margin has expanded from 60% in fiscal 2012 to 64% last fiscal year. Visa is truly a world-class organization when it comes to profitability.
Investors will appreciate that this business is a natural inflation hedge: Its payments volume can go up as prices across the economy rise. And more recently, the surging demand for travel has boosted Visa's cross-border volume, a boon since it earns more on these types of transactions.
Of the three stocks on this list, Visa has performed the worst. Its shares are up "only" 69% in the past five years. That gain still beats the S&P 500, though. The stock trades at a P/E of 30 right now, which is below Visa's trailing-10-year average valuation. That also represents a notable discount to smaller Mastercard. It might be time to take advantage of this gap.
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Mastercard, and Visa. 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. | I believe that Apple (NASDAQ: AAPL), O'Reilly Automotive (NASDAQ: ORLY), and Visa (NYSE: V) are companies that fit the quality standards I just mentioned. But to own one of the most dominant enterprises in the world that sells some of the most in-demand products and services, investors might be fine with paying a premium valuation for Apple. The business benefits from the growing population of aging cars, with more wear and tear resulting in strong demand for what O'Reilly sells. | I believe that Apple (NASDAQ: AAPL), O'Reilly Automotive (NASDAQ: ORLY), and Visa (NYSE: V) are companies that fit the quality standards I just mentioned. But shareholders should start paying attention to the Services segment, which includes things like Apple Pay, Apple TV+, and Apple Music. The Motley Fool has positions in and recommends Apple, Mastercard, and Visa. | I believe that Apple (NASDAQ: AAPL), O'Reilly Automotive (NASDAQ: ORLY), and Visa (NYSE: V) are companies that fit the quality standards I just mentioned. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of June 12, 2023 Neil Patel has no position in any of the stocks mentioned. | I believe that Apple (NASDAQ: AAPL), O'Reilly Automotive (NASDAQ: ORLY), and Visa (NYSE: V) are companies that fit the quality standards I just mentioned. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! The Motley Fool has positions in and recommends Apple, Mastercard, and Visa. | 5 |
175 | 15,212 | 2023-06-24 00:00:00 UTC | Prediction: Apple Will Win NBA Rights. Here's Why It Could Be a Game Changer | AAPL | https://www.nasdaq.com/articles/prediction%3A-apple-will-win-nba-rights.-heres-why-it-could-be-a-game-changer | null | null | For years, tech companies have unsuccessfully tried to make headsets the next big thing. Ever since the launch of Google Glass, the concept of augmented reality and virtual reality was to have been just around the corner, but multiple attempts, including Meta's series of Quest devices, have failed to capture the mainstream.
Apple's (NASDAQ: AAPL) Vision Pro, which the tech giant launched at its Worldwide Developers Conference earlier this month, seems like the best attempt yet to convert the masses to headset computing. Unlike previous iterations such as the Meta Quest, the Vision Pro headset can be transparent, allowing users to make eye contact with those around them. It also seems better designed for augmented reality, meaning it enhances existing reality with on-screen features.
However, the question that has dogged past headsets remains a challenge for Apple. How will consumers use the device, and will they be convinced that its value is worth the $3,500 price tag? Here's one possibility.
Apple referred to the new device as "magical" several times in the launch presentation. The bulk of the introduction focused on applications for work and entertainment, such as FaceTime, looking at photos and videos, gaming, and video entertainment, like movies.
Now that the Vision Pro has been unveiled, the next challenge for Apple is to stuff it with content and applications that will make it a must-use device. In order to do that, it will rely on developers, much in the way it has with the iPhone. It even included Walt Disney CEO Bob Iger in the launch, who promised that Disney+ would be included on the Vision Pro from day one.
Apple teased the value of sports several times in its presentation, both in gaming and watching live. The tech giant has also been rumored to be preparing a bid for rights to air NBA games when they come up in 2025.
Image source: Apple.
Why the NBA would be a great fit for Apple
Apple is among the expected bidders for NBA rights, and it's easy to see why. With its launch of Apple TV+ in 2019, the iPhone maker made it clear that it saw value in adding a streaming service to its portfolio.
The company has also experimented with sports, adding free major league baseball games to its service, among other offerings. Live sports have continued to be an attractive draw to both viewers and advertisers at a time when streaming content, like TV shows and movies, has exploded.
Acquiring rights to air NBA games could be the blockbuster piece of content that Apple needs to jump-start sales of the Vision Pro. The company could reimagine the sports-watching experience with its spatial computing device, potentially giving viewers the ability to see unique camera angles, get instant updates on stats and players, and even watch the game with a friend on FaceTime.
The NBA would also make an attractive partner for Apple. Both are massive global brands. Apple now has an installed base of more than 2 billion devices, while the NBA has an estimated 1.5 billion-2 billion fans around the world.
Basketball is the world's most popular sport after soccer, but unlike soccer, the NBA has no real competition from other basketball leagues. The NBA has become global as both its fan base and many of its top players, including stars Nikola Jokic, Joel Embiid, and Giannis Antetokounmpo, come from outside the U.S. This global reach makes the NBA a great fit for Apple, and a deal could give a boost to both the Vision Pro and Apple TV+.
The iPhone maker also has more money to throw at the league than any other potential bidder with approximately $165 billion in cash and investments on its balance sheet and annual net profits that now hover around $100 billion. Apple's relationship with Disney, which owns ESPN, could also provide an outlet for it to host NBA games on the new spatial computing device if it's unable to secure its own rights to the league.
Now, with the launch of the Vision Pro, Apple has an added incentive to obtain the broadcast rights. Doing so could help it sell devices, not just subscriptions. Apple doesn't need the NBA for the Vision Pro to be a success, but it's the kind of move that could help attract attention and build demand for the product. Don't be surprised if Apple makes a big play for the NBA as 2025 comes around.
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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. Jeremy Bowman has positions in Meta Platforms and Walt Disney. The Motley Fool has positions in and recommends Apple, Meta Platforms, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. 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's (NASDAQ: AAPL) Vision Pro, which the tech giant launched at its Worldwide Developers Conference earlier this month, seems like the best attempt yet to convert the masses to headset computing. Unlike previous iterations such as the Meta Quest, the Vision Pro headset can be transparent, allowing users to make eye contact with those around them. The company could reimagine the sports-watching experience with its spatial computing device, potentially giving viewers the ability to see unique camera angles, get instant updates on stats and players, and even watch the game with a friend on FaceTime. | Apple's (NASDAQ: AAPL) Vision Pro, which the tech giant launched at its Worldwide Developers Conference earlier this month, seems like the best attempt yet to convert the masses to headset computing. The company could reimagine the sports-watching experience with its spatial computing device, potentially giving viewers the ability to see unique camera angles, get instant updates on stats and players, and even watch the game with a friend on FaceTime. The Motley Fool has positions in and recommends Apple, Meta Platforms, and Walt Disney. | Apple's (NASDAQ: AAPL) Vision Pro, which the tech giant launched at its Worldwide Developers Conference earlier this month, seems like the best attempt yet to convert the masses to headset computing. Why the NBA would be a great fit for Apple Apple is among the expected bidders for NBA rights, and it's easy to see why. This global reach makes the NBA a great fit for Apple, and a deal could give a boost to both the Vision Pro and Apple TV+. | Apple's (NASDAQ: AAPL) Vision Pro, which the tech giant launched at its Worldwide Developers Conference earlier this month, seems like the best attempt yet to convert the masses to headset computing. It even included Walt Disney CEO Bob Iger in the launch, who promised that Disney+ would be included on the Vision Pro from day one. Apple teased the value of sports several times in its presentation, both in gaming and watching live. | 4 |
176 | 15,224 | 2023-06-23 00:00:00 UTC | Better Growth Stock: Apple vs. Microsoft | AAPL | https://www.nasdaq.com/articles/better-growth-stock%3A-apple-vs.-microsoft-0 | null | null | Investors have been on a roller coaster the last few years, with the COVID-19 pandemic sending many tech stocks skyrocketing. Then, countless companies watched their stocks take a deeper dive amid last year's economic downturn.
In 2023, the market has been in recovery mode, with Wall Street once again optimistic about the prospects of several industries. However, recent volatility makes now a smart time to consider investing in growth stocks that are likely to rise over the long term and fortify your holdings in the event of temporary headwinds.
As the world's two most valuable companies by market cap, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are attractive options. These companies are home to potent businesses that have won over consumers and have histories of consistent stock growth.
However, if you only have room to add one to your portfolio, it's wise to find out which company is currently the better buy. So, let's examine whether Apple or Microsoft is the better growth stock.
Apple
Apple has long had a reputation as a reliable growth stock, with its annual revenue and operating income up 48% and 68% in the last five years. In the same period, its stock has climbed nearly 300% as investors have seen the company as a haven amid macroeconomic declines.
The tech giant's stability is largely owed to the success of its smartphone business, with the iPhone achieving a majority market share in the U.S. last year by surpassing Alphabet's Android. The achievement strengthens Apple's outlook, as the iPhone is its best tool for attracting consumers to its other products and services. Essentially, the more iPhone users there are, the more sales in the company's other segments.
Apple has attained leading market shares in several of its other product categories, like tablets, smartwatches, and headphones, almost entirely thanks to the dominance of the iPhone. The connectivity between all its products promotes ease of use and makes consumers less likely to seek competing options.
As a result, Apple's recent venture into the $31 billion virtual/augmented reality market with a new headset is promising for its long-term future. The company's brand loyalty from consumers could see it climb to the top of the high-growth market, adding another lucrative revenue stream to its business.
Microsoft
Like Apple, Microsoft has built a rapport with its user base, which has grown to depend on its products. Programs like its Office productivity suite and Windows operating system have become the industry standard in their respective markets. Meanwhile, other brands like Xbox, Azure, and LinkedIn diversified Microsoft's business and granted it substantial market shares in other high-profit sectors. As a result, the company's revenue has risen 80% more than the last five years, with operating income increasing 138%.
Moreover, Microsoft has been featured in countless headlines this year because of its expanding position in artificial intelligence (AI). In 2019, the company became the biggest backer of OpenAI, the start-up behind ChatGPT. The collaboration allowed Microsoft to take the lead in the burgeoning market, using OpenAI's technology to enhance several of its platforms. Meanwhile, competitors like Amazon and Alphabet have been left playing catch-up.
Microsoft's shares have increased by 235% in the last five years. As its business continues to expand and its position in AI develops, the company has the potential to continue on its current growth trajectory.
Is Apple or Microsoft the better buy?
Apple and Microsoft are both reliable long-term investments and solid growth stocks. These companies are pillars of the tech community, with their dominance spanning multiple markets. As a result, determining which is the better buy largely depends on which is currently trading at a better value.
Data by YCharts
This chart compares Apple's and Microsoft's forward price-to-earnings and price-to-free cash flow ratios, which are helpful metrics to determine the value of a stock. In both cases, Apple's lower figures indicate its stock offers more value than Microsoft.
Consequently, Apple is currently the better growth stock. However, it's still wise to keep Microsoft on your radar for the next time you're looking to expand your portfolio.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, 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. | As the world's two most valuable companies by market cap, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are attractive options. However, recent volatility makes now a smart time to consider investing in growth stocks that are likely to rise over the long term and fortify your holdings in the event of temporary headwinds. The tech giant's stability is largely owed to the success of its smartphone business, with the iPhone achieving a majority market share in the U.S. last year by surpassing Alphabet's Android. | As the world's two most valuable companies by market cap, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are attractive options. Apple Apple has long had a reputation as a reliable growth stock, with its annual revenue and operating income up 48% and 68% in the last five years. Apple and Microsoft are both reliable long-term investments and solid growth stocks. | As the world's two most valuable companies by market cap, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are attractive options. So, let's examine whether Apple or Microsoft is the better growth stock. Apple Apple has long had a reputation as a reliable growth stock, with its annual revenue and operating income up 48% and 68% in the last five years. | As the world's two most valuable companies by market cap, Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) are attractive options. Is Apple or Microsoft the better buy? Consequently, Apple is currently the better growth stock. | 4 |
177 | 15,240 | 2023-06-22 00:00:00 UTC | Russia tells Amazon Web Services to set up local representation or face restrictions | AAPL | https://www.nasdaq.com/articles/russia-tells-amazon-web-services-to-set-up-local-representation-or-face-restrictions | null | null | June 22 (Reuters) - Russia's state communications regulator Roskomnadzor has added Amazon Web Services AMZN.O and 11 other foreign technology companies to a widened list of firms it wants to open local offices or face penalties and possible bans.
Russia in 2021 demanded that 13 firms, mostly U.S. technology companies such as Alphabet's GOOGL.O Google, Meta Platforms' META.O Facebook, Apple AAPL.O and Twitter TWTR.N become officially represented on Russian soil by the end of the year or face restrictions on advertising, data collection or money transfers.
Moscow's subsequent invasion of Ukraine intensified Russia's disputes with Big Tech, ultimately leading to Twitter, Facebook and others being banned from the market.
But despite the initial threats, may other listed web services remain operational and available, such as YouTube, Wikipedia, Telegram and Zoom.
Amazon Web Services and another 11 mostly hosting sites were added on Thursday, Roskomnadzor's website showed.
It was not immediately clear what the listing would mean for Amazon and others. Amazon did not immediately respond to a request for comment.
(Reporting by Alexander Marrow; editing by David Evans)
((alexander.marrow@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Russia in 2021 demanded that 13 firms, mostly U.S. technology companies such as Alphabet's GOOGL.O Google, Meta Platforms' META.O Facebook, Apple AAPL.O and Twitter TWTR.N become officially represented on Russian soil by the end of the year or face restrictions on advertising, data collection or money transfers. June 22 (Reuters) - Russia's state communications regulator Roskomnadzor has added Amazon Web Services AMZN.O and 11 other foreign technology companies to a widened list of firms it wants to open local offices or face penalties and possible bans. Moscow's subsequent invasion of Ukraine intensified Russia's disputes with Big Tech, ultimately leading to Twitter, Facebook and others being banned from the market. | Russia in 2021 demanded that 13 firms, mostly U.S. technology companies such as Alphabet's GOOGL.O Google, Meta Platforms' META.O Facebook, Apple AAPL.O and Twitter TWTR.N become officially represented on Russian soil by the end of the year or face restrictions on advertising, data collection or money transfers. June 22 (Reuters) - Russia's state communications regulator Roskomnadzor has added Amazon Web Services AMZN.O and 11 other foreign technology companies to a widened list of firms it wants to open local offices or face penalties and possible bans. But despite the initial threats, may other listed web services remain operational and available, such as YouTube, Wikipedia, Telegram and Zoom. | Russia in 2021 demanded that 13 firms, mostly U.S. technology companies such as Alphabet's GOOGL.O Google, Meta Platforms' META.O Facebook, Apple AAPL.O and Twitter TWTR.N become officially represented on Russian soil by the end of the year or face restrictions on advertising, data collection or money transfers. June 22 (Reuters) - Russia's state communications regulator Roskomnadzor has added Amazon Web Services AMZN.O and 11 other foreign technology companies to a widened list of firms it wants to open local offices or face penalties and possible bans. (Reporting by Alexander Marrow; editing by David Evans) ((alexander.marrow@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Russia in 2021 demanded that 13 firms, mostly U.S. technology companies such as Alphabet's GOOGL.O Google, Meta Platforms' META.O Facebook, Apple AAPL.O and Twitter TWTR.N become officially represented on Russian soil by the end of the year or face restrictions on advertising, data collection or money transfers. June 22 (Reuters) - Russia's state communications regulator Roskomnadzor has added Amazon Web Services AMZN.O and 11 other foreign technology companies to a widened list of firms it wants to open local offices or face penalties and possible bans. Moscow's subsequent invasion of Ukraine intensified Russia's disputes with Big Tech, ultimately leading to Twitter, Facebook and others being banned from the market. | 4 |
178 | 15,251 | 2023-06-21 00:00:00 UTC | Thailand's WHA eyes record year as firms expand out of China | AAPL | https://www.nasdaq.com/articles/thailands-wha-eyes-record-year-as-firms-expand-out-of-china | null | null | By Orathai Sriring and Devjyot Ghoshal
BANGKOK, June 21 (Reuters) - WHA Group WHA.BK, Thailand's largest industrial estate developer, expects a second straight year of record land sales from companies seeking to diversify away from China, its CEO said on Wednesday.
Mounting trade tensions between the United States and China, coupled with Beijing's abrupt lifting of its strict zero-COVID policy in December last year, has led to a surge in mainly Chinese investment from companies seeking alternative locations.
"This has impacted them, and it seems like a catalyst for those invested in China to move out," CEO Jareeporn Jarukornsakul told Reuters.
WHA, which operates over a dozen industrial estates across Thailand and Vietnam, has seen enquiries and purchases by Chinese companies rocket since the pandemic eased, helping to double its annual land sales from pre-pandemic levels, she said.
In 2023, WHA will likely sell more than 2,000 rai (320 hectares) of land in both countries - exceeding its annual target and its 2022 performance of 1,899 rai, said Jareeporn.
Since the pandemic, around half of WHA's industrial land sales in Thailand have been cornered by Chinese investors, who have also taken some 80% of the group's offerings in Vietnam, she said.
Chinese investment proposals in Thailand grew 87% to 25 billion baht ($717 million) in the first quarter of the year, compared to the same period last year, according to Thailand's Board of Investment.
A wave of Chinese investment - including many smaller firms that supply bigger mainland manufacturers - has also entered Vietnam since December.
To meet rising demand - much of it coming from Chinese automakers and Taiwanese electronics companies - WHA is aiming to expand its industrial land portfolio by nearly 30% in the next few years to 100,000 rai, she said.
In eastern Thailand, for example, China's electric vehicle maker BYD Co 002594.SZ is building a new facility on a 600-rai plot in a WHA industrial estate.
WHA's clients in Vietnam include suppliers to Apple AAPL.O such as China-based electronics firm Goertek Inc 002241.SZ and Taiwan's Foxconn 2317.TW, with which it is working on a new facility, according to the provincial government's website.
($1 = 34.85 baht)
(Reporting by Orathai Sriring and Devjyot Ghoshal in BANGKOK; Additional reporting by Francesco Guarascio in HANOI; Editing by Sharon Singleton)
((Devjyot.Ghoshal@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | WHA's clients in Vietnam include suppliers to Apple AAPL.O such as China-based electronics firm Goertek Inc 002241.SZ and Taiwan's Foxconn 2317.TW, with which it is working on a new facility, according to the provincial government's website. By Orathai Sriring and Devjyot Ghoshal BANGKOK, June 21 (Reuters) - WHA Group WHA.BK, Thailand's largest industrial estate developer, expects a second straight year of record land sales from companies seeking to diversify away from China, its CEO said on Wednesday. Mounting trade tensions between the United States and China, coupled with Beijing's abrupt lifting of its strict zero-COVID policy in December last year, has led to a surge in mainly Chinese investment from companies seeking alternative locations. | WHA's clients in Vietnam include suppliers to Apple AAPL.O such as China-based electronics firm Goertek Inc 002241.SZ and Taiwan's Foxconn 2317.TW, with which it is working on a new facility, according to the provincial government's website. By Orathai Sriring and Devjyot Ghoshal BANGKOK, June 21 (Reuters) - WHA Group WHA.BK, Thailand's largest industrial estate developer, expects a second straight year of record land sales from companies seeking to diversify away from China, its CEO said on Wednesday. Since the pandemic, around half of WHA's industrial land sales in Thailand have been cornered by Chinese investors, who have also taken some 80% of the group's offerings in Vietnam, she said. | WHA's clients in Vietnam include suppliers to Apple AAPL.O such as China-based electronics firm Goertek Inc 002241.SZ and Taiwan's Foxconn 2317.TW, with which it is working on a new facility, according to the provincial government's website. By Orathai Sriring and Devjyot Ghoshal BANGKOK, June 21 (Reuters) - WHA Group WHA.BK, Thailand's largest industrial estate developer, expects a second straight year of record land sales from companies seeking to diversify away from China, its CEO said on Wednesday. WHA, which operates over a dozen industrial estates across Thailand and Vietnam, has seen enquiries and purchases by Chinese companies rocket since the pandemic eased, helping to double its annual land sales from pre-pandemic levels, she said. | WHA's clients in Vietnam include suppliers to Apple AAPL.O such as China-based electronics firm Goertek Inc 002241.SZ and Taiwan's Foxconn 2317.TW, with which it is working on a new facility, according to the provincial government's website. By Orathai Sriring and Devjyot Ghoshal BANGKOK, June 21 (Reuters) - WHA Group WHA.BK, Thailand's largest industrial estate developer, expects a second straight year of record land sales from companies seeking to diversify away from China, its CEO said on Wednesday. Mounting trade tensions between the United States and China, coupled with Beijing's abrupt lifting of its strict zero-COVID policy in December last year, has led to a surge in mainly Chinese investment from companies seeking alternative locations. | 4 |
179 | 15,260 | 2023-06-20 00:00:00 UTC | Spotify plans more expensive subscription tier - Bloomberg News | AAPL | https://www.nasdaq.com/articles/spotify-plans-more-expensive-subscription-tier-bloomberg-news | null | null | Updates to say Spotify declined to comment
June 20 (Reuters) - Music streaming platform Spotify Technology SPOT.N is planning to roll out a more premium subscription option that is expected to include high-fidelity audio, Bloomberg News reported on Tuesday, citing people familiar with the matter.
The new tier, called "Supremium" internally, will be the company's most expensive plan and will launch this year in non-US markets first, according to the report.
To bolster its current premium tier, Spotify will give subscribers expanded access to audiobooks, either through a specific number of hours free per month or a specific number of titles, Bloomberg reported.
The company plans to introduce that feature in the United States in October, after first launching in markets abroad, the report added.
Spotify declined to comment.
In the United States, the company's premium account for individuals is priced at $9.99 per month, while a family account with six users is at $15.99 a month.
Spotify, which competes with rival services from Apple AAPL.Oand Amazon.com AMZN.O, has been trying to grow its number of paying subscribers by rolling out a range of audio-focused services such as the HiFi feature, which upgrades the sound quality of the songs to "lossless" CD-quality music.
(Reporting by Chavi Mehta in Bengaluru; Editing by Shailesh Kuber and Anil D'Silva)
((Chavi.Mehta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Spotify, which competes with rival services from Apple AAPL.Oand Amazon.com AMZN.O, has been trying to grow its number of paying subscribers by rolling out a range of audio-focused services such as the HiFi feature, which upgrades the sound quality of the songs to "lossless" CD-quality music. Updates to say Spotify declined to comment June 20 (Reuters) - Music streaming platform Spotify Technology SPOT.N is planning to roll out a more premium subscription option that is expected to include high-fidelity audio, Bloomberg News reported on Tuesday, citing people familiar with the matter. The new tier, called "Supremium" internally, will be the company's most expensive plan and will launch this year in non-US markets first, according to the report. | Spotify, which competes with rival services from Apple AAPL.Oand Amazon.com AMZN.O, has been trying to grow its number of paying subscribers by rolling out a range of audio-focused services such as the HiFi feature, which upgrades the sound quality of the songs to "lossless" CD-quality music. Updates to say Spotify declined to comment June 20 (Reuters) - Music streaming platform Spotify Technology SPOT.N is planning to roll out a more premium subscription option that is expected to include high-fidelity audio, Bloomberg News reported on Tuesday, citing people familiar with the matter. To bolster its current premium tier, Spotify will give subscribers expanded access to audiobooks, either through a specific number of hours free per month or a specific number of titles, Bloomberg reported. | Spotify, which competes with rival services from Apple AAPL.Oand Amazon.com AMZN.O, has been trying to grow its number of paying subscribers by rolling out a range of audio-focused services such as the HiFi feature, which upgrades the sound quality of the songs to "lossless" CD-quality music. Updates to say Spotify declined to comment June 20 (Reuters) - Music streaming platform Spotify Technology SPOT.N is planning to roll out a more premium subscription option that is expected to include high-fidelity audio, Bloomberg News reported on Tuesday, citing people familiar with the matter. To bolster its current premium tier, Spotify will give subscribers expanded access to audiobooks, either through a specific number of hours free per month or a specific number of titles, Bloomberg reported. | Spotify, which competes with rival services from Apple AAPL.Oand Amazon.com AMZN.O, has been trying to grow its number of paying subscribers by rolling out a range of audio-focused services such as the HiFi feature, which upgrades the sound quality of the songs to "lossless" CD-quality music. Updates to say Spotify declined to comment June 20 (Reuters) - Music streaming platform Spotify Technology SPOT.N is planning to roll out a more premium subscription option that is expected to include high-fidelity audio, Bloomberg News reported on Tuesday, citing people familiar with the matter. To bolster its current premium tier, Spotify will give subscribers expanded access to audiobooks, either through a specific number of hours free per month or a specific number of titles, Bloomberg reported. | 4 |
180 | 15,276 | 2023-06-19 00:00:00 UTC | Bull-Bear Debate: 5 Crucial Factors to Consider in the Short-Term | AAPL | https://www.nasdaq.com/articles/bull-bear-debate%3A-5-crucial-factors-to-consider-in-the-short-term | null | null | Entering 2023, investors had concerns over a beaten-down tech sector, geopolitical risks like the war in Ukraine, the debt ceiling limit, higher inflation, rising interest rates, a regional banking crisis, and a pending recession. However, as evident by the price action thus far, Wall Street is bent on fooling the masses. True to its usual form, equity markets have manipulated the masses, brushed off the fear-mongering, and have climbed the proverbial “Wall of Worry.” After the beatdown that tech stocks endured in 2022, few anticipated returns of nearly 40% at this juncture of the year in the Nasdaq 100 ETF (QQQ).
Image Source: Zacks Investment Research
Now, after such a dramatic run in U.S. equities, the big question remains what happens from here?
Below are Short-Term Factors to Consider:
Confluence Zone: To investors, a price and volume chart is as essential to success as an X-Ray is to a doctor. In the short -term, the S&P 500 Index is approaching a critical “confluence level”. In technical analysis, a confluence zone is an area where two or more technical levels intersect. Traders use Fibonacci levels to determine potential price targets. While the tool can be controversial in its robustness, it is a highly watched technical level. Nevertheless, either way, because enough traders use it, it morphs into a “self-fulfilling prophecy”. On the weekly chart, the S&P 500 Index is running into the 1.618 extension level from the February correction.
Image Source: TradingView
If you scan your eye directly left on the chart, you will see the S&P 500 Index is simultaneously running into a large band of resistance from 2022.
Sentiment: The CNN/Fear and Greed Sentiment Indicator is a measure that combines seven different market indicators to assess the overall feeling and emotional state of the market. Currently, the indicator is at the Extreme Greed level and the greediest levels of 2023.
Gravity / Extension: Earlier this year, QQQ had one of the most considerable divergences from the Russell 2000 Small Cap Index in its history.
Image Source: Zacks Investment Research
Now, QQQ is extended by more than 10% above its 50-day moving average – a difficult extension level to sustain.
Overbought Levels: The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movement in an asset, indicating whether it is overbought or oversold. The QQQ’s RSI is at the most overbought level in over a year.
Image Source: Zacks Investment Research
Key Leaders Approaching Resistance: Apple (AAPL) and Microsoft (MSFT), two of the strongest and most prominent market leaders, are approaching all-time highs. Typically, when a stock recovers to its all-time highs after an extended drawdown, it encounters initial sellers. Because of their heavy weightings, some digestion in these leaders could mean digestion in the overall market.
Image Source: Zacks Investment Research
Summary: Many short-term indicators point to a market that could use rest or digestion. However, investors should keep in mind that precisely predicting a pullback can be a challenging endeavor. For example, in the infant stages of bull markets (like now), overbought levels can become more overbought. That said, investors need to keep an odds-focused mindset. While it may be too soon to call for a pullback, the risk-reward on the long side is not as favorable as it was earlier in the year before the strong move higher in equities. Be patient and wait for your pitch.
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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. | Image Source: Zacks Investment Research Key Leaders Approaching Resistance: Apple (AAPL) and Microsoft (MSFT), two of the strongest and most prominent market leaders, are approaching all-time highs. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports To read this article on Zacks.com click here. Entering 2023, investors had concerns over a beaten-down tech sector, geopolitical risks like the war in Ukraine, the debt ceiling limit, higher inflation, rising interest rates, a regional banking crisis, and a pending recession. | Image Source: Zacks Investment Research Key Leaders Approaching Resistance: Apple (AAPL) and Microsoft (MSFT), two of the strongest and most prominent market leaders, are approaching all-time highs. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports To read this article on Zacks.com click here. Image Source: Zacks Investment Research Now, QQQ is extended by more than 10% above its 50-day moving average – a difficult extension level to sustain. | Image Source: Zacks Investment Research Key Leaders Approaching Resistance: Apple (AAPL) and Microsoft (MSFT), two of the strongest and most prominent market leaders, are approaching all-time highs. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports To read this article on Zacks.com click here. Image Source: Zacks Investment Research Now, QQQ is extended by more than 10% above its 50-day moving average – a difficult extension level to sustain. | Image Source: Zacks Investment Research Key Leaders Approaching Resistance: Apple (AAPL) and Microsoft (MSFT), two of the strongest and most prominent market leaders, are approaching all-time highs. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports To read this article on Zacks.com click here. In technical analysis, a confluence zone is an area where two or more technical levels intersect. | 4 |
181 | 15,283 | 2023-06-18 00:00:00 UTC | 3 Tech Titans Leading the Charge Toward $10 Trillion Valuation | AAPL | https://www.nasdaq.com/articles/3-tech-titans-leading-the-charge-toward-%2410-trillion-valuation | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Hitting a $1 trillion valuation is a real milestone for a publicly traded company. Very few companies have achieved such a high market capitalization; nearly all are large, widely held technology securities. These tech titans have ascended to new heights as their shareholder base has widened and their share price has grown exponentially. With markets recovering from the downturn experienced throughout most of 2022, tech stocks are again ascending to new heights, raising the question of when we can expect to see a stock reach a $10 trillion valuation. While that lofty goal might seem implausible today, remember that a $1 trillion valuation seemed hard to imagine just a few years ago. The first $1 trillion valuation was only achieved in 2018. Here is a list of three tech titans leading the charge toward a $10 trillion valuation.
Apple (AAPL)
Source: Moab Republic / Shutterstock
Shares of Apple (NASDAQ:AAPL) are again trading at an all-time high, and the company’s stock is back near a $3 trillion market capitalization. Apple has the biggest market cap among tech titans and will likely reach a $10 trillion valuation first. Currently, Apple has the highest valuation of any stock in the world. Apple’s stock has been propelled nearly 50% higher this year on improving sentiment towards tech stocks and as the company continues to expand and improve its products.
Most recently, Apple introduced a new augmented reality headset that consumers can use to watch movies and surf the internet. That will retail for $3,500 when it is available in early 2024. The company also constantly updates and improves its popular iPhone, Macbook, and Apple Watch consumer products. And it’s pushing into new areas ranging from streaming to buy now, pay later. AAPL stock remains one of the best tech stocks investors can own, having risen 1,100% over the last decade.
Nvidia (NVDA)
Source: Poetra.RH / Shutterstock.com
Microchip and semiconductor company Nvidia (NASDAQ:NVDA) has just joined the $1 trillion valuation club. NVDA stock has a market capitalization of $1.07 trillion, reaching the milestone on June 13 of this year. Nvidia is the seventh U.S. company to achieve a $1 trillion valuation. And the momentum behind Nvidia’s stock shows no signs of slowing down. Fueled by the hype surrounding using its chips in artificial intelligence (AI), Nvidia’s share price has gained 201% year to date.
The major catalyst for Nvidia’s stock occurred when it announced its earnings on May 24. The chipmaker provided forward guidance 50% higher than analysts’ consensus forecasts, driven by demand for its chips among AI companies. The company’s earnings and revenue for this year’s first quarter also trounced Wall Street expectations. NVDA stock jumped more than 25% higher immediately after the earnings print and continues to run hot. And AI demand is still in its infancy, say many analysts.
Alphabet (GOOG, GOOGL)
Source: IgorGolovniov / Shutterstock.com
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is another tech titan that is a member of the exclusive $1 trillion valuation club. The parent company of the Google search engine currently has a market capitalization of $1.59 trillion. As with AAPL and NVDA stocks, shares of GOOGL have the wind in their sails right now as markets recover from last year’s tech wreck and as excitement around AI grows stronger. Alphabet is, of course, a world leader in AI through its Google Brain and DeepMind research units, which it recently merged.
Alphabet has been busy announcing and rolling out several new AI products this year. The biggest announcement concerns the company’s Bard generative AI chatbot, a competitor to the wildly popular ChatGPT platform. Going forward, Alphabet plans to use AI to enhance most of its consumer products, including its suite of digital products — from Gmail to Google Maps. Following some initial missteps, Alphabet seems to have won over analysts and investors with its plans, sending GOOGL stock up 40% this year.
On the date of publication, Joel Baglole held long positions in AAPL, NVDA and GOOGL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post 3 Tech Titans Leading the Charge Toward $10 Trillion Valuation 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. | As with AAPL and NVDA stocks, shares of GOOGL have the wind in their sails right now as markets recover from last year’s tech wreck and as excitement around AI grows stronger. Apple (AAPL) Source: Moab Republic / Shutterstock Shares of Apple (NASDAQ:AAPL) are again trading at an all-time high, and the company’s stock is back near a $3 trillion market capitalization. AAPL stock remains one of the best tech stocks investors can own, having risen 1,100% over the last decade. | Apple (AAPL) Source: Moab Republic / Shutterstock Shares of Apple (NASDAQ:AAPL) are again trading at an all-time high, and the company’s stock is back near a $3 trillion market capitalization. AAPL stock remains one of the best tech stocks investors can own, having risen 1,100% over the last decade. As with AAPL and NVDA stocks, shares of GOOGL have the wind in their sails right now as markets recover from last year’s tech wreck and as excitement around AI grows stronger. | Apple (AAPL) Source: Moab Republic / Shutterstock Shares of Apple (NASDAQ:AAPL) are again trading at an all-time high, and the company’s stock is back near a $3 trillion market capitalization. AAPL stock remains one of the best tech stocks investors can own, having risen 1,100% over the last decade. As with AAPL and NVDA stocks, shares of GOOGL have the wind in their sails right now as markets recover from last year’s tech wreck and as excitement around AI grows stronger. | Apple (AAPL) Source: Moab Republic / Shutterstock Shares of Apple (NASDAQ:AAPL) are again trading at an all-time high, and the company’s stock is back near a $3 trillion market capitalization. AAPL stock remains one of the best tech stocks investors can own, having risen 1,100% over the last decade. As with AAPL and NVDA stocks, shares of GOOGL have the wind in their sails right now as markets recover from last year’s tech wreck and as excitement around AI grows stronger. | 4 |
182 | 15,289 | 2023-06-17 00:00:00 UTC | Tech Investors: Pay Attention to Hype Cycles and Adoption Life Cycles | AAPL | https://www.nasdaq.com/articles/tech-investors%3A-pay-attention-to-hype-cycles-and-adoption-life-cycles | null | null | In this podcast, Motley Fool Live's This Week in Tech co-hosts, Tim Beyers and Tim White, discuss:
How investors can think about adoption life cycles and tech investments.
Where generative AI lands on the hype cycle.
One key sign that a new product has "crossed the chasm" for widespread adoption.
ChatGPT's "nice to haves."
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.
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Tim White: If you think about the Apple I, maybe that's where the innovators were, people who were willing to take a risk on it at the time, an inflation-adjusted $5,000 or $6,000 on a computer that basically did nothing. You had to make it do anything you wanted to make it do. It really led to a lot of people at the time in that trough of disillusionment that happened with personal computers of like, no one will ever need a PC in their homes, right?
Tim Beyers: [laughs] Right.
Tim White: Big statements from big, fancy people.
Mary Long: I'm Mary Long, and that's Tim White, who co-hosts This Week in Tech on Motley Fool Live alongside Tim Beyers. Tim and Tim caught up on Motley Fool Money to discuss hype cycles, adoption curves, and why investors should pay attention to their key differences.
Tim Beyers: Let's talk about promising technologies. And you've seen a boatload of them -- so have I -- over the course of years. What do you think when we think about how long it takes genuinely like a really promising technology -- AI is in the news now, right? A genuinely promising technology, something like an artificial intelligence toolkit or artificial intelligence generally, generative AI like ChatGPT. How long do you really think that takes to become part of our daily lives? We're hearing about it constantly, but it's not really part of our daily lives yet.
Tim White: Again, we're talking about two different cycles. The hype cycle, which is people getting excited about things and the beginning of technology. Then that adoption cycle, where you have early innovators getting on board with things and then eventually adopting things in the general-public way at the end of that cycle.
All of the stuff we've seen from AI has been around for a long time. What made it cross the chasm to more people knowing about it and more people using it in their daily lives was making a chatbot free. And I think the free part is so important there, right?
Tim Beyers: Absolutely. We should talk about the difference between what we call the hype cycle or, more specifically, what Gartner -- which is a research firm which you may or may not have heard about, they're a public company, ticker symbol IT -- Gartner defines something called the hype cycle. Then there is the more commonly referred-to technology-adoption life cycle.
Each of them are bell curve. The hype cycle is really compressed bell curve, and the technology-adoption cycle is a bit more like a regular bell curve with a pretty big gap in it. That gap was defined in 1993. I hope I have this year right, Tim, but this is, if I have my history right, in 1993, Geoffrey Moore, who's a consultant and still to this day operates The Chasm Group. The consultant who wrote a book called Crossing the Chasm. And in Crossing the Chasm, Moore defined what a technology-adoption life cycle looks like. He said, there comes a point when those and all the enthusiasm, all this stuff in the hype cycle has to go across this big chasm where the people who are really excited convince the rest of us to say like, OK, this is real. We'll actually spend some money on this.
When we talk about these two different cycles, the differentiator, I think we both have identified, and we've talked about this so many times, is if you're talking about tech adoption, you're talking about solving what you and I have called a migraine-level problem. If you're talking about hype, what you're really talking about is some spending around excitement. Boy, this thing is neato, and I want to do some things with it.
This is why I'm going to come back to what you just said about free. Free is so important in the hype cycle part of the phase.
Tim White: If we think about hype is the idea that, wow, this technology could change everything. We'll never have to drive cars again. We'll never have to think for ourselves again. We'll never have to listen to the radio again because we can watch television. All these, like, it'll change everything. That's what the hype cycle is, and it ramps up to the peak of inflated expectations, as Gartner calls it, where everyone's like, this is going to do everything.
Then there's a crest at which suddenly, it doesn't deliver, and things start to fall apart, and actually turning that "this will change everything" just falls apart, and the technology is cool. But it doesn't solve anybody's particular migraine-level problem.
That's where I think you really transition over to adoption, where there's a particular problem that some piece of technology solves, and that's when it starts to become more mainstream.
Tim Beyers: I'm going to guess here, but if you had to say where generative AI is in the hype cycle, is it at the peak of inflated expectations where now the hallucinations, so I go, wait a minute, maybe this thing doesn't give us exactly what we thought it was going to give us?
Tim White: Yeah. I think it's somewhere along the top there. I think it's funny that in 2021, Gartner listed chatbots and the trough of disillusionment [laughs] I think the worst case, where everyone's like, oh chatbots. They were going to save everything. They were going to let us fire all of our customer service agents. Now they're terrible, and no one wants to use them anymore. They were in the trough of disillusionment in 2021, and then they magically vanished from the hype cycle for AI in 2022.
Tim Beyers: Right.
Tim White: [inaudible].
Tim Beyers: It's a Jedi mind trick. This is not the technology you're looking for.
Tim White: Right. I think we're absolutely at the peak of inflated expectations around generative AI right now. But I think we're starting to slide down the backside and toward that trough of disillusionment, where people are wondering. This is cool, but there's so many little gotchas. Will we actually be able to make this a real part of our business?
Tim Beyers: For sure.
Let's talk a little bit about that switchover when the hype moves into the adoption and what Moore defined as the chasm here. We said that successful products always solve a migraine-level problem. There's always something. If we can look back through history, and when we talk about the chasm, the chasm is defined by the types of customers that are using a product.
On the left side, so you think of a bell curve on the left side. The real enthusiasts are the innovators and the early adopters. Then you jump the chasm to what's called the early majority, then the late majority, then the conservatives, then the skeptics. In other words, that group on the right side of the chasm has to have a reason, like a real business case, in order to spend money, Tim.
I'm wondering if we think about this, there are different types of technologies that we've seen cross the chasm. Yesterday, when we were prepping for this, we talked a little bit about home computers, which really were, I mean, I know we've been at this for 30 years. When we were kids, home computers were, I mean, boy, it was a privilege to have one. I think you said, I felt the same way. We got our Apple IIe from my uncle, who was a very early adopter of computing, and I mean, it was unusual in the early 1980s.
Tim White: Yeah. I think if you think about the Apple I, maybe that's where the innovators were, people who were willing to take a risk on it at the time, an inflation-adjusted $5,000 or $6,000 on a computer that basically did nothing. [laughs] You have to make it do anything you wanted to make it do. It really led to a lot of people at the time in that trough of disillusionment that happened with personal computers of like, no one will ever need a PC in their homes.
Tim Beyers: Right.
Tim White: That was a big statements from big, fancy people.
But the early adopters, people like your uncle, my father, who bought an Apple II plus, were like, we need to have our children have a chance to use this because these computers will be the future. That was a huge privilege to be able to have a computer like that in my home. Of course, I immediately grabbed onto it and then really never let go.
But those early adopters are what give companies enough money and enough feedback. This is the beautiful thing about a first-version product is you get feedback from your customers, and then you can make your product better and better. That's where the Apple IIe, like you talked about, suddenly hit the education market and really exploded and took off and really made Apple up until the Macintosh came out.
Tim Beyers: Apple, in some ways, found its way at least into the chasm and started bridging across through things that made that computer or the computers that Apple was making a lot more useful for solving a business problem. I'll use the example of one of the great early apps that made Apple's machines incredibly useful for the business community. I mean, I know you know this one, but there's a lot of people who've probably have never heard of VisiCalc.
Tim White: Yeah. Dan Bricklin created VisiCalc while he was watching a presentation at Harvard Business School. He was watching this presentation and realized that the financial model that was drawn on a blackboard is something that he could create on his computer and started working on it on the side. It really became the first spreadsheet as we know it. Of course, led to Lotus 123 and Excel and all the things that we use today.
But VisiCalc really gave people a true reason. Solved a migraine-level problem of people needing to keep track of budgets and other kinds of things that we now use spreadsheets for. People suddenly said, "I do need to have a computer because I can use VisiCalc."
Tim Beyers: This is probably, I would say, the very beginning of some businesses deciding as things were crossing the chasm here. I can use a computer to manage my business. I actually don't need to use a paper ledger anymore. I can automate some of this. We've never gone back from that. You end up with these little use cases that end up being worth spending quite a lot of money on.
Let's talk about the through line here, because there's enthusiasm and then there's practical desire to spend. You just pointed this out, that you need the enthusiasm, you need the cheerleading to get people thinking about the practical. But when do you think that flips?
I'm going to bring up another one that we talked about yesterday. There are moments where a technology has all sorts of promise, and you do have a lot of cheerleaders, and it ends up going all wrong. I think you know where I'm going with this one because it's on our list. There's the CASE tools, which I know we've talked about before.
Tim White: Yeah. In the '90s, there was this huge rush toward computer-aided software engineering.
Tim Beyers: Yes.
Tim White: Something about CAD. You may have heard CAD as computer-aided design. CASE was computer-aided software engineering. It was this idea that you can take a piece of software and make a drawing, like a diagram of what you want your software to look like. Press a button, and it will generate all the code for you to do that.
Of course, that never really turned out to be true. In the same way that the current generation of generative AI can't really write all of your code for you. It certainly can help, just like the CASE tools could help. But in the end, I think a lot of people realized that the CASE tools were really just adding time and not actually eliminating work.
Tim Beyers: I'm going to come back to the free tools in a minute here, because some of the economics of what's changed is making the technology-adoption life cycle arguably a little more compressed. But at that time, the cheerleaders were so vocal about this that there was a lot of investment in things like Unified Modeling and tools like Rational Rose. We think, this is going to change everything. We're going to have businesspeople, marketers, and salespeople are going to be able to define what business process they need. They're going to learn Unified Modeling Language, and they're going to draw the workflow that they need. Then the code is just going to magically pop out. And it just became an exercise in disappointment here.
Coming back to free, which is where we are now. A lot of tools, due to a whole confluence of things, your open-source movement and so forth, we can try a lot of things for free right now. Generative AI, ChatGPT, we're trying AI for free, and we're just getting enthralled with it. Do you think because of this prevalence of free tiers, that what used to cost us something, like it cost you something to be a cheerleader in the 1970s, 1980s, and now it doesn't cost you anything anymore. Does that dramatically alter the economics of the technology-adoption life cycle?
Tim White: I think it does because either expectations can be very low. If you're spending $3,000 on something unless you're a super early adopter. I'm looking at Apple Vision Pro. [laughs] Unless you're a super-early adopter, spending that kind of money, you have very high expectations that this is going to be a product that's going to solve some problems for you. Whether that problem be boredom, [laughs] entertainment, whatever.
But if you get it for free, your expectations are at literally the bottom. It really helps to get innovators in the door. If they can get people to use things for free, give them feedback, get increasingly better and better products out the door to the point where eventually, they can charge for things because they actually have a product that does meet expectations.
I think Linux is another great example of a tool that was initially free, and it was a very limited operating system when it first came out. But because of a lot of work that happened in the '70s and '80s, creating free software for Unix operating systems, it immediately had a bunch of tools that solved people's problems. And it was the peak of the time when Linux came out, when companies like Sony and HP were charging really large amounts of money for licenses for Unix.
Tim Beyers: You don't have to be that kind. You could say obscene.
Tim White: [laughs]
Tim Beyers: Right.
Tim White: I just remember like AT&T Unix was costing upwards of $1,000 per machine that you installed it on at the time. It was just crazy, because people would have racks and racks of these machines that they would all have to have licenses for. Linux absolutely changed the game by saying no, you can literally spin up a computer with an operating system on it, put it on the Internet for no money.
Tim Beyers: But what's interesting about this, Tim, is if the cost is eliminated up front, the worry I have is that you'll see more bad products because there really is no gating factor. Cost is not a gating factor anymore. You just release it out into the wild, and it can be a terrible product.
Tim White: Sure. I do think that there's some fear of flooding the market, and I think we're certainly seeing that with AI tools now. Just like a couple of years ago, we saw that with cryptocurrencies, like there's a different currency every week, and that's because the cost of entering the market was zero, right? It cost you nothing to make a new one, and so everyone made one.
I think that's still going to be true, but the good news is, as we've often discussed, user experience trumps everything. If you've got a really easy-to-use tool that's very simple and very reliable, that will win over a tool that is otherwise similarly priced, e.g., free. I think you end up competing a lot on user experience.
Tim Beyers: Let's talk about when do we know, like as investors... A lot of bad products can come to market quickly because the cost to introduce products now has gone way, way down. Free is the new model here. How do we know when a product or a company has found its way across the chasm?
There's a couple of indicators I think we can talk about here. I'll kick it to you first and tee you up with this one.
I think when you have seen, either in a vertical industry or a set of customers, something you can define, you could point and say, those people have made it very clear that they need this product. In the case of like the original Mac, the desktop publishing as a practice and the graphic design community said, "You can have this computer if you take it from my cold, dead hands."
Tim White: I think what you just said is the classic business version of crossing the chasm, which is as soon as your salespeople start telling the IT department to shove it when the IT department says no, you can't have that, [laughs] that's when you've crossed the chasm.
And a great example, of course, is when the iPhone came out. Suddenly, every sales exec had one of those. Everybody had to have one, and they really wanted to use them for everything, for mail and for all this stuff. And of course, the IT department freaked out and said they're not secure, you can't use that, you can have it. And of course, President Obama notoriously wouldn't give up his BlackBerry.
Those are the things that you know you've crossed the chasm, when people are demanding that they use them in their business environment, even if there's strong resistance.
Tim Beyers: Yeah, so there is, the loyalty indicates to you that look, this solves my problem. What we said before, this is a migraine-level problem for me, and there's absolutely no way you're taking this away from me. Some sign that a group has said, absolutely, there's no way you're taking this away from me. That's the evidence of a migraine-level problem being solved.
When we think about this, I'll take an example of a company that I think has crossed the chasm. Not recently -- it's been a while -- but I do think there's ample evidence to say, just using a software product, I think MongoDB crossed the chasm a really long time ago. Because there is a number of instances where it's so easy to develop a piece of software and attach that database to it that developers are never letting that go.
Tim White: Yeah, I think that's true. And of course, any of the cloud hosting companies are in that place where people want to host on [Alphabet's] Google Cloud, want to host on [Microsoft's] Azure, want to host on [Amazon's] AWS, and there's a lot of people just assuming that that's going to happen now.
I think when you assume that's going to happen, that's a big difference from like I interviewed the CTO of a company called TEU years ago, and he said, "When I first said we're not having any servers around, we're doing everything on AWS, everyone thought I was crazy and now they're like, wow. Yeah, that's how you do things now."
Tim Beyers: Yes. When you reach that "of course that's what you're doing" moment, I think that's evidence that you have crossed the chasm.
As investors, if we're wrapping this up a little bit here, I think what we've said as we were talking about this, it's probably better as a public-market investor, to be on the other side of the chasm. In fact, I would say it is universally better to be on the other side of the chasm. The left side of the chasm where you're still working with cheerleaders, that's a good place for venture capitalists.
Tim White: I mean, the true huge money gets made from there, but the true huge money also gets lost from there. They're making a lot of very expensive bets on that before-adoption side of the chasm, and most of them don't pan out.
Tim Beyers: There's a common term that gets bandied about a lot, particularly among executives who specialize in things like product-led growth. Venture capitalists use this too. They call it a tipping point, and the phrasing you'll hear sometimes is called product-market fit. Product-market fit. And product-market fit means just really dumbing it down.
Tim, this is the way I think about it. It's we've got a product and we found a migraine-level problem, and those two have met, and now there's an explosion of demand.
Tim White: We actually have a product that people want to buy eventually, and all we need to do is figure out how to get more people to buy it, not to get anyone to buy it. [laughs]
Tim Beyers: We need to be able to satisfy demand at scale, get those people satisfied, grow the pool of those people, and then get other people around them talking about it.
Tim White: I think in terms of investing, one of the main takeaways that I am always suggesting to people is to look for things that are right after that adoption has really hit and companies that are really ready to really hit really hard on some big question.
One that hit that way for me personally in my investment career was HubSpot. That was a product that has a lot of different features now, but at the time, it was mostly a CRM, so customer relationship management, and email marketing platform.
At the time, Salesforce was dominating that industry, and no one thought that another product could really crack into the market. But HubSpot found the product-market fit of small businesses, very small businesses, solopreneurs, designers, folks like that who just need something more than a spreadsheet and a simple WordPress website, but they're not wanting to pay the premium to use Salesforce. And they have utterly dominated that market in the last few years.
Tim Beyers: Yeah, and they show no signs of slowing down, and they've been able to... Where these companies get really interesting and ones you want to hold for a long time, and HubSpot is this company. Once you solve one migraine-level problem for a particular type of audience, that same audience gives you permission to solve another migraine-level problem for them.
And HubSpot, boy, did they lean into that like very few other companies I've ever seen. It was inbound marketing. And then you had those customers saying, hey, could maybe you help with my sales pipeline? Yes, we can. They built a hub around that. And then they built a hub around web design, and they built a hub around support.
So customers, where this ends up again drawing the through line between hype and when you actually get adoption when you're at the hype stage and you've found cheerleaders, they are very excited about what your potential is. When you're on the other side of the chasm, you are now pain relief for a well-defined customer base, and that customer will come back to you and say, what else can you do?
Tim White: As long as you can continue to deliver on that -- which not every company can, including Salesforce; they have done it for a long time, and now maybe they're perhaps struggling a bit. If you can continue to deliver on that, then you can continue to increase your revenue per customer and solve customer pain, and they will stick with you for a long time.
Tim Beyers: Let's end this by making -- because we always like to make reckless predictions here. This one's a bonus. We didn't talk about this up front here.
I think we both agree that generative AI is still stuck in the hype cycle. It's still on the hype side of the equation that we haven't yet seen a general product-market fit for generative AI yet. Tim, if I had to give you a time frame, how long do you think it takes generative AI to get genuine product-market fit where it is solving a migraine-level problem?
Tim White: I think it's already solving some problems for some people today. There are people who get benefit from using ChatGPT as is right now. But for free, right?
Tim Beyers: Yes.
Tim White: That's the thing. Where I think we really want to think about is when is the product worth enough money to someone that if it went away, the David Gardner snap test, if this goes away, will I be like, well, it went away for free, [but] I'm willing to pony up $5 a month, $20 a month, $50 a month to keep using it. That's where I think the real heart of your question lies.
I think that could happen in less than a year if the people who make these tools continue to push. And there is definitely an arms race between tools now, which definitely leads to accelerated tech excitement.
Let me try this again. There's a lot of people competing on this right now, which definitely leads to tech going very fast in terms of how well it gets better, but will that be really useful to a lot of people in their daily life soon? I don't know. Apple was very careful not to say "AI" in their big announcements, and I think that's telling that they don't think it's there yet.
Tim Beyers: I'm going to take that side of the prediction equation here and play, as I sometimes do, play get-off-my-lawn guy here for a second and say, I think it's at least three years. And the reason I say that is because I think you need to identify what kind of data and what kind of data problems are so specific and so hairy that they need AI to solve them. I don't think we've defined that yet.
To your point, I think ChatGPT has found a whole bunch of nice-to-haves, and that's interesting, and that's where the cheerleaders live. But I think the need-to-have, must-pay-for, don't-do-this-and-we-feel-severe-pain. Those data problems, I don't think they've been well defined yet, Tim, and so I'm giving it three years. But then again, I get curmudgeonly at this stuff.
Mary Long: As always, people on the program may have interest in the stocks they talk about, and the Motley Fool may have formal recommendations for or against, so don't buy stocks based solely on what you hear. I'm Mary Long. Thanks for listening. We'll see you tomorrow.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Mary Long has no position in any of the stocks mentioned. Tim Beyers has positions in AT&T, Alphabet, Amazon.com, Apple, HubSpot, MongoDB, and Salesforce. Tim White has positions in AT&T, Alphabet, Amazon.com, Apple, HubSpot, Microsoft, and MongoDB. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, HP, HubSpot, Microsoft, MongoDB, and Salesforce. The Motley Fool recommends BlackBerry and Gartner. 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. | Tim Beyers: I'm going to come back to the free tools in a minute here, because some of the economics of what's changed is making the technology-adoption life cycle arguably a little more compressed. In the case of like the original Mac, the desktop publishing as a practice and the graphic design community said, "You can have this computer if you take it from my cold, dead hands." I think when you assume that's going to happen, that's a big difference from like I interviewed the CTO of a company called TEU years ago, and he said, "When I first said we're not having any servers around, we're doing everything on AWS, everyone thought I was crazy and now they're like, wow. | In this podcast, Motley Fool Live's This Week in Tech co-hosts, Tim Beyers and Tim White, discuss: How investors can think about adoption life cycles and tech investments. Mary Long: I'm Mary Long, and that's Tim White, who co-hosts This Week in Tech on Motley Fool Live alongside Tim Beyers. And of course, any of the cloud hosting companies are in that place where people want to host on [Alphabet's] Google Cloud, want to host on [Microsoft's] Azure, want to host on [Amazon's] AWS, and there's a lot of people just assuming that that's going to happen now. | In this podcast, Motley Fool Live's This Week in Tech co-hosts, Tim Beyers and Tim White, discuss: How investors can think about adoption life cycles and tech investments. Mary Long: I'm Mary Long, and that's Tim White, who co-hosts This Week in Tech on Motley Fool Live alongside Tim Beyers. Tim Beyers: Apple, in some ways, found its way at least into the chasm and started bridging across through things that made that computer or the computers that Apple was making a lot more useful for solving a business problem. | Tim White: Again, we're talking about two different cycles. If we can look back through history, and when we talk about the chasm, the chasm is defined by the types of customers that are using a product. Tim Beyers: Apple, in some ways, found its way at least into the chasm and started bridging across through things that made that computer or the computers that Apple was making a lot more useful for solving a business problem. | 4 |
183 | 15,295 | 2023-06-16 00:00:00 UTC | 3 Warren Buffett Stocks to Buy and Never Look Back | AAPL | https://www.nasdaq.com/articles/3-warren-buffett-stocks-to-buy-and-never-look-back | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) CEO Warren Buffett has established himself as one of the greatest investors ever. No one will dispute this fact or the idea that Warren Buffett stocks tend to get much more attention from conservative investors for various reasons.
Any company that receives the blessing of the Oracle of Omaha is one that long-term investors will look to own. With an annualized growth rate of 19.8% from 1965, Berkshire Hathaway has outperformed the S&P 500 and picked the right stocks that have proven the test of time.
Certain companies possess the essential qualities to maintain their leadership positions and are immune to significant competitive challenges, and this is what Buffett loves. These companies are among the top long-term buy-and-hold stocks with robust brands and favorable growth prospects. Moreover, they offer indispensable products or services and demonstrate effective management, solid financials, and consistently strong performance. These three stocks embody all these attributes, according to the Oracle of Omaha.
Bank of America (BAC)
Source: 4kclips / Shutterstock.com
Bank of America (NYSE:BAC) is a strong permanent buy-and-hold investment among the most important banking companies in the United States. Notably, even Warren Buffett has shown confidence by acquiring BAC stock over time. The bank’s consistent ability to generate positive operating leverage since 2015 has contributed to this sentiment. Additionally, Bank of America has demonstrated solid earnings, with its earnings per share increased from 80 cents to 94 cents in the last quarter despite facing challenges.
Buffett’s recent actions suggest a shift in his banking investments, with a focus away from regional banks. He still owns more than 1 billion shares, or 13% of Bank of America, maintaining a sizable interest in the business. This makes it one of his largest holdings, second only to Apple (NASDAQ:AAPL).
Bank of America stands as a stable investment compared to regional banks, benefiting from depositors seeking security amid rising interest rates. The higher rates enable the bank to increase loan charges, strengthening its financial performance. Additionally, Bank of America presents a favorable valuation compared to peers like JPMorgan Chase and Wells Fargo, trading at a lower earnings multiple and offering a significant discount based on book value and cash holdings.
Coca-Cola (KO)
Source: MAHATHIR MOHD YASIN / Shutterstock.com
Coca-Cola (NYSE:KO) is a top holding in Buffett’s portfolio, often ranking third or fourth alongside American Express (NYSE:AXP). Coca-Cola pays a dividend yield of around 3.1% and has increased dividends for 61 consecutive years. It is well-positioned as a safe stock for a recession due to its value proposition and the anticipated need for a pick-me-up as people return to work. In a downturn, job security becomes crucial, and employees are likely to show up to the office daily, making Coca-Cola a reliable choice.
With an estimated value of $258 billion and a wide variety of billion-dollar companies, Coca-Cola is the leading non-alcoholic drink corporation in the globe. Notably, Warren Buffett’s Berkshire Hathaway owns a significant 9.2% stake in Coca-Cola, valued at over $22 billion.
Coca-Cola anticipates significant growth opportunities in the future as it taps into a vast total addressable market valued at $1.3 trillion in 2022. The company anticipates its total potential marketplace to grow gradually at a mid-single-digit yearly pace as the global populace is expected to rise by about 500 million by 2030.
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
Apple is a well-known permanent investment stock that accounts for about 40% of the holdings of Warren Buffett’s Berkshire Hathaway. When Buffett shows confidence in a company by investing heavily in it, it becomes a noteworthy choice for other investors as well.
Although Apple’s stock is selling at a PTE ratio of around 31 and is close to reaching its following the pandemic spike, its record of success as a sustained winner screams for itself. Apple has produced a remarkable usual yearly return of 28% over the previous ten years, above the S&P 500’s average annual gain of 12%.
Apple reached unprecedented heights following the launch of its much-anticipated augmented reality headset, the “Vision Pro.” With a price tag of $3,499, this groundbreaking device immerses users in a captivating mixed-reality environment. It introduces unique features like app navigation controlled by eye movements, the ability to watch movies in 3D, browse photos, and indulge in immersive gaming experiences.
Apple’s strong position in the consumer tech industry makes it a frontrunner in the thriving VR/AR sector. With a growing business and promising market conditions, the company’s stock presents an enticing investment opportunity.
On the date of publication, Chris MacDonald has a position in KO, AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This makes it one of his largest holdings, second only to Apple (NASDAQ:AAPL). Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple is a well-known permanent investment stock that accounts for about 40% of the holdings of Warren Buffett’s Berkshire Hathaway. On the date of publication, Chris MacDonald has a position in KO, AAPL. | This makes it one of his largest holdings, second only to Apple (NASDAQ:AAPL). Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple is a well-known permanent investment stock that accounts for about 40% of the holdings of Warren Buffett’s Berkshire Hathaway. On the date of publication, Chris MacDonald has a position in KO, AAPL. | Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple is a well-known permanent investment stock that accounts for about 40% of the holdings of Warren Buffett’s Berkshire Hathaway. This makes it one of his largest holdings, second only to Apple (NASDAQ:AAPL). On the date of publication, Chris MacDonald has a position in KO, AAPL. | This makes it one of his largest holdings, second only to Apple (NASDAQ:AAPL). Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com Apple is a well-known permanent investment stock that accounts for about 40% of the holdings of Warren Buffett’s Berkshire Hathaway. On the date of publication, Chris MacDonald has a position in KO, AAPL. | 4 |
184 | 15,324 | 2023-06-15 00:00:00 UTC | First Citizen Bancshares and Icahn have been highlighted as Zacks Bull and Bear of the Day | AAPL | https://www.nasdaq.com/articles/first-citizen-bancshares-and-icahn-have-been-highlighted-as-zacks-bull-and-bear-of-the-day | null | null | For Immediate Release
Chicago, IL – June 15, 2023 – Zacks Equity Research shares First Citizen’s Bancshares FCNCA as the Bull of the Day and Icahn Enterprises IEP as the Bear of the Day. In addition, Zacks Equity Research provides analysis on NVIDIA NVDA, Apple AAPL and Microsoft MSFT.
Here is a synopsis of all five stocks:
Bull of the Day:
Zacks Rank #1 (Strong Buy) stock First Citizen’s Bancshares is a North Carolina-based anomaly in the beaten-down banking sector. Early in the year, the Federal Reserve caught several regional banks off guard by raising interest rates at an unprecedented rate to quell inflation concerns (inflation was at 40-year highs at the time). Though the banking sector normally benefits from higher rates, several banks (particularly regional banks) were caught flat-footed. As Warren Buffett warns, “Only when the tide goes out do you learn who has been swimming naked.” As the contagion spread, several banks, such as Silicon Valley Bank, Signature Bank of New York, and Credit Suisse, began to go under. First Citizen’s Bank did not come out unscathed – from February to March the stock got hammered from $800 to $500.
Silicon Valley Bank Collapse: Crisis Equals Opportunity
What happened next would change the trajectory of the company. As you can see on the chart above, First Citizen’s Bank reversed course and is now at $1285 per share. In late 2022, Silicon Valley Bank, a publicly traded bank from California, began to incur significant losses due to rapid interest rate hikes. To make matters worse, as the name implies, Silicon Valley was heavily reliant on the tech industry for deposits. As the Nasdaq corrected and tech funding dried up, SVB incurred billions in losses. Finally, the FDIC stepped in to remedy the situation. The result? The FDIC sold off SVB’s assets to a variety of banks. With the help of the FDIC, FCNCA purchased more than $100 billion in deposits and more than $70 billion in loans from SVB at a more than $16 billion discount.
By the Numbers
Amidst a troubled banking sector backdrop, First Citizen’s Bank stands alone. FCNCA is dominating its industry from a historical EPS growth rate, projected sales growth, and margins perspective.
Furthermore, analysts believe that the SVB acquisition will be a significant earnings driver. Over the next two quarters, Zacks Consensus Estimates suggest robust triple-digit earning’s growth.
Not only are analysts bullish, they are becoming more bullish by the day. The Zacks Consensus Estimate Trend shows Q1 EPS estimates of 21.78 per share 60 days ago and revised estimates of 47.98 per share now.
Firm Price and Volume Action
In late March, FCNCA gapped higher by more than 50% on volume ~900% above the norm. The flurry of buying pressure is indicative of institutional accumulation. Since the news broke, shares have rallied in a stair-stepping fashion and are consolidating in a tight range – indicating that investors are in no rush to sell shares.
Because stocks tend to leave consolidations in the direction they came into them, the odds favor a trend continuation in shares of FCNCA.
Conclusion
First Citizen’s Bancshares is a rare case of a bank successfully navigating the recent banking crisis. The purchase of Silicon Valley Bank for pennies on the dollar should be a fundamental catalyst for years to come. Furthermore, FCNCA is up 67% year-to-date, while the banking industry is down 15%. This makes one wonder how strong it will be if the banking sector continues to stabilize. Expect shares to be higher over the next 6-12 months.
Bear of the Day:
Zacks Rank #5 (Strong Sell) Icahn Enterprises is a diversified holding company founded and controlled by billionaire Carl Icahn. Icahn Enterprises invests in investment management, metals, real estate, and home fashion companies through its subsidiaries and affiliates. Icahn Enterprises is known for its involvement in corporate governance matters and its efforts to management boards and decisions in the companies it invests in. As the company’s chairman, Carl Icahn plays a key role in setting its investment strategies and overseeing its operations.
Short-Seller Report: Hit Piece or Red Flag?
Last month, Hindenburg Research, a U.S. short-focusedinvestment researchfirm, unveiled a short report thesis on Icahn Enterprises. Shares of IEP swooned immediately following the report, dropping 55% for May on massive volume turnover.
In the short report, Hindenburg Research made bold accusations against IEP, claiming the company is inflating its illiquid private holdings. According to Hindenburg’s research:
· IEP assets trade at a 218% premium to its last reported Net Asset Value (NAV)
· IEP’s premium to NAV is higher than every closed-end fund and double the next highest.
· IEP uses Carl Icahn’s legendary status and a hefty dividend to attract investors. Meanwhile, institutional investors have little to no exposure in the company.
What is Hindenburg’s Track Record?
Because short-focused research shops often release “hit pieces” to manipulate stocks for short-term gains, investors need to be wary of them. However, Hindenburg Research is an exception to this rule. In late 2020, Hindenburg accused EV-maker Nikola of fraud. Since then, the stock has dropped from $50 to $1.
Hindenburg also raised a red flag on the SPAC Clover Health. Like NKLA, CLOV dove and hasn’t looked back since. Most recently, Hindenburg pointed out accounting inconsistencies in Adani – India’s largest company. Since then, certain banks have stopped accepting Adani loans as collateral.
By the Numbers
Whether you agree with Hindenburg’s assessment or not, IEP’s fundamentals are unattractive at this juncture. Since 2018, IEP has posted negative EPS. Compared to its industry, IEP has lower historical EPS growth, projected sales growth, net margin, return on equity, and soaring debt.
Conclusion
With equities in a robust bull market, investors have ample opportunities outside Icahn Enterprises. The inflated NAV, poor fundamentals, and negative headlines should be red flags for prospective investors.
Additional content:
Capitalizing on the Boom in AI Software Development
By the time you are reading this, Apple will have unveiled its new VR/AR headset and the internet will be exploding with reactions.
It will no doubt be an excellent device and, more importantly, it will reveal directions for the mobile dominator's AI strategy.
I've been predicting Apple would own the category where devices and AI meet since 2017.
Wedbush Managing Director Daniel Ives, a Zacks friend and frequent guest on our podcasts, noted last week that all eyes will be on Tim Cook's keynote today to set the tone for developers and announce new products. Ives said Apple is finally set to unveil its mixed reality headset product named Vision Pro with price points in the $3k range running off a new operating system called xrOS.
He acknowledged how important this is since every tech stalwart has announced its own AI strategy with Microsoft and ChatGPT front and center, while Apple has been very quiet and non-existent on this front so far.
Ives believes this is about to change as he is expecting Cook & Co. to discuss Apple's AI strategy looking ahead and how the company can integrate and ultimately monetize its customer base around future generative AI coming from Cupertino.
Wedbush further expects Apple to head down the path to have its own AI driven solution that will be integrated within the Apple ecosystem.
What Hath ChatGPT Wrought?
If you wisely caught my Zacks Confidential article on March 20, you were given much of what you needed to know to assess and capitalize on the revolution.
I told you what was old, what was new, and what mattered for the stocks you could still buy that week, when my 5 recommendations were still trading at levels that could have produced some sizable double-digit gains for investors who followed...
NVDA: $265-270 and now $390
SNPS: $370-375 and now $450
GOOGL: $105 and now $125
SPLK: $90-95 and now $100
PATH: $16-17 and now $19
I wish I could have given you more ideas, including AAPL and MSFT. More on that coming up.
Tech Super Cycle is Alive and Well
I’ve been trying to understand and explain the power of NVIDIA and GPU “massively parallel architectures" since 2016.
And one of my most important Zacks Confidential entries was from December of 2017 where I recommended NVDA shares under $50. But it wasn’t the stock reco that stands out for me.
It was my thesis that I dubbed The Tech Super Cycle to explain why the hyper productivity of advances in semiconductors and software were sustaining a long-term environment of better, faster, cheaper that kept inflation at bay -- despite the zero interest rate Fed policy.
Of course, now that inflation has roared back with a vengeance, some will say I had it all wrong.
I don’t think so. That’s the thing about megatrends driven by technology innovation. They don’t die because of economic catastrophe, wars, pandemics, or bad government policy.
I bring this up today because many investing strategists are very concerned about recession, excessive valuations, and inflation. If you listened to them, you would be selling all your stocks and hunkering down for the apocalypse.
They could be right about reducing exposure in some areas or getting more diversification. But did selling semis or software in the scars of 2018, 2020, or 2022 really help? No way!
Obviously, Wall Street bears on technology are scary because they miss the forest for the trees. The evidence of revenues, profits, and valuations in the past 6 years tell me I was right about the Tech Super Cycle that will carry on through this decade.
The Meaning of NVIDIA Beyond $1 Trillion
It makes me laugh a little to be throwing praise on NVIDIA right now, after the world has discovered this AI juggernaut and all the journos can talk about is that it crossed some apparently magical mark... and now you should buy it.
By now you must be sick of the daily headlines about the company.
Then again, if you've been a steady investor/trader of NVDA shares with me for some time, you probably love it.
So let’s not only bask in the success, let’s keep learning about what is driving it. First up is a check-in with the one place I've been telling you to check-in with at least once a month for the past 5 years: The NVIDIA Newsroom.
Two exciting stories stand out lately...
World's Leading Electronics Manufacturers Adopt NVIDIA Generative AI and Omniverse to Digitalize State-of-the-Art Factories
This one warms my heart because ever since BMW adopted NVIDIA industrial simulation and design technologies -- including the Isaac Robotics platform -- for its new factories in 2018, I have been screaming that this is the future.
Second up is the continuing saga of the highest achievements by NVIDIA engineers that serve society by handing data power-tools to industry, science and medicine...
NVIDIA Announces DGX GH200 AI Supercomputer
New Class of AI Supercomputer Connects 256 Grace Hopper Superchips Into Massive, 1-Exaflop, 144TB GPU for Giant Models Powering Generative AI, Recommender Systems, Data Processing
Recall they built a 5,760 GPU “super” for Tesla a few years ago that handles 1.8 exaflops (a billion billion floating point operations per second) for the exponentially-large parallel data sets in autonomous driving technology.
As I’ve suggested repeatedly since ChatGPT took the world by storm, every corporation, university, and research institution will want this kind of compute power now.
Beth Kindig Does the Math on NVDA > AAPL
Last year I shared the “crazy” view of an independent technology analyst who reasoned that because AI was a bigger megatrend opportunity than mobile, NVDA shares would over-take AAPL shares in this decade.
It’s still hard to wrap your head around -- but then again who predicted Apple would sell more than $75 billion worth of devices every quarter after quarter?
Here’s what Beth Kindig, founder of the I/O Fund and research house, wrote before NVIDIA’s May 24 report...
I've gone on record to say that Nvidia will surpass the valuation of Apple. That particular analysis compared the impact that AI will have to mobile, with AI adding $15 trillion to GDP compared to mobile’s $4.4 trillion. Mobile brought us three FAANGs: Apple, Google and Facebook. It has been my stance for years that AI will bring us a new set of FAANGs, one of which will be Nvidia.
However, now is not the best time to buy the stock. Rather than flatly tell you that while offering no way forward, I want to continue providing value to my readers by discussing when my firm plans to buy the stock again.
But also, we should discuss why the market is rallying on this company specifically. Good investors must do both – understand what makes a company stand out while being patient on price. Nvidia is trading 3X higher than its peers and in some cases 12X higher. I’m not defending this valuation, rather I want to explain how it’s possible that smart money continues to buy up here.
(end of excerpt from the I/O Fund letter)
You know that I have always tried to balance the euphoric valuation vs the tangible risk/reward. And that’s why I’ve done some trading with NVDA shares, getting out with some profits during the bear market and then jumping back in near the lows at $120 when nobody wanted it and Cramer said it was a “short.”
But more importantly I’ve tried to get you to see the paradigm shift that NVIDIA and its CUDA system hardware+software integrated stack represents to not just corporate data centers, but science and humanity overall.
I hope I’ve gotten through with that message over the years.
Besides the powerful medical applications, the next most exciting gold in Jensen Huang’s treasure chest is the potential to inspire millions of kids to be interested in science and math that can change their lives… and the world.
For Investors, It's All About AI-Fueled Software
Despite the bear market which took Software from euphoric 2021 bubble levels to minus 40%, I still firmly believe that nothing changes the world more powerfully than technological innovation.
This has been the case for thousands of years and the only things that have changed are (1) the exponential rate of innovations and (2) their synergistic convergence. In other words, separate technology platforms tend to accentuate and amplify the capabilities of each other, thus creating another layer of force multipliers.
For instance, as semiconductor technology has advanced – and shrunk transistors under 10 nanometers – this innovation combines with cloud/edge data storage and with AI/GPU/deep learning algorithms to create entirely new forms of engineering, materials science, and business intelligence with real-time data analytics, design, and decision making.
The technologies leverage each other simultaneously and synergistically. And I didn’t even mention quantum computing, which is on deck to rip the ceiling off of all of them. I’ll let a technology innovation expert with more experience than I explain.
Here’s how Peter Diamandis, author of The Future is Faster Than You Think, describes “exponential convergence” in a February 2022 blog post...
Accelerating the advancement of exponential technologies is actually old news. So, what’s the new news?
That formerly independent waves of exponentially accelerating technology are beginning to converge with other independent waves of exponentially accelerating technology.
In other words, these waves are starting to overlap—stacking atop one another, producing tsunami-sized behemoths that threaten to wash away (read: “reinvent”) most every industry in their path.
For example, the speed of drug development is accelerating. Not only because biotechnology (sequencing, CRISPR, etc.) is progressing at an exponential rate, but because AI, quantum computing, and other exponentials are converging on the field.
(end of excerpt from Peter’s blog)
Revealed: How Savvy Investors are Profiting from AI Software
It’s hard to escape the buzz surrounding the innovative potential of artificial intelligence. The market for AI and all of its capabilities is beyond measure. AI’s ability to not only enhance but completely alter numerous industries is one of the reasons why investors could capture significant long-term gains.
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Stock #1: A tech titan constantly revolutionizing our world through groundbreaking innovations. They are a true pioneer that’s shaping the future of computing, gaming, and business solutions. It’s one of the few companies in a perfect position to monetize the growing AI wave.
Stock #2: With projected 20% revenue growth next year, this is a company that’s heavily invested in the digital transformation of healthcare. They are at the heart of the industry’s most creative technological advancements. Specializing in cloud-based solutions, this juggernaut spearheads change that could disrupt the entire healthcare landscape.
Stock #3: A global leader in semiconductor design software, this multi-billion-dollar company has formed strategic partnerships with other titans so businesses can shorten design schedules and reduce computation costs. Empowering industries by providing state-of-the-art electronic design automation, it’s a hidden gem primed for massive growth as the world becomes increasingly digital.
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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 told you what was old, what was new, and what mattered for the stocks you could still buy that week, when my 5 recommendations were still trading at levels that could have produced some sizable double-digit gains for investors who followed... NVDA: $265-270 and now $390 SNPS: $370-375 and now $450 GOOGL: $105 and now $125 SPLK: $90-95 and now $100 PATH: $16-17 and now $19 I wish I could have given you more ideas, including AAPL and MSFT. In addition, Zacks Equity Research provides analysis on NVIDIA NVDA, Apple AAPL and Microsoft MSFT. Beth Kindig Does the Math on NVDA > AAPL Last year I shared the “crazy” view of an independent technology analyst who reasoned that because AI was a bigger megatrend opportunity than mobile, NVDA shares would over-take AAPL shares in this decade. | In addition, Zacks Equity Research provides analysis on NVIDIA NVDA, Apple AAPL and Microsoft MSFT. Beth Kindig Does the Math on NVDA > AAPL Last year I shared the “crazy” view of an independent technology analyst who reasoned that because AI was a bigger megatrend opportunity than mobile, NVDA shares would over-take AAPL shares in this decade. 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 Icahn Enterprises L.P. (IEP) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report To read this article on Zacks.com click here. | Beth Kindig Does the Math on NVDA > AAPL Last year I shared the “crazy” view of an independent technology analyst who reasoned that because AI was a bigger megatrend opportunity than mobile, NVDA shares would over-take AAPL shares in this decade. 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 Icahn Enterprises L.P. (IEP) : Free Stock Analysis Report First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Zacks Equity Research provides analysis on NVIDIA NVDA, Apple AAPL and Microsoft MSFT. | In addition, Zacks Equity Research provides analysis on NVIDIA NVDA, Apple AAPL and Microsoft MSFT. I told you what was old, what was new, and what mattered for the stocks you could still buy that week, when my 5 recommendations were still trading at levels that could have produced some sizable double-digit gains for investors who followed... NVDA: $265-270 and now $390 SNPS: $370-375 and now $450 GOOGL: $105 and now $125 SPLK: $90-95 and now $100 PATH: $16-17 and now $19 I wish I could have given you more ideas, including AAPL and MSFT. Beth Kindig Does the Math on NVDA > AAPL Last year I shared the “crazy” view of an independent technology analyst who reasoned that because AI was a bigger megatrend opportunity than mobile, NVDA shares would over-take AAPL shares in this decade. | 4 |
185 | 15,341 | 2023-06-14 00:00:00 UTC | 3 Lesser Known Stocks with $1 Trillion Market-Cap Potential | AAPL | https://www.nasdaq.com/articles/3-lesser-known-stocks-with-%241-trillion-market-cap-potential | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Market uncertainty remains high right now. Indeed, all eyes are on today’s decision from the Federal Reserve with respect to whether interest rates will be held or raised once again. Accordingly, with all eyes on the macro backdrop right now, investors may want to focus in on some high-growth stocks with significant upside potential.
Importantly, there has been a surge in interest around companies in key growth sectors of late. Notably, companies involved in the AI and AR/VR sectors are outperforming most other stocks by a wide margin. Tech giants are continuing their surge higher, with many predicting more trillion-dollar stocks on the horizon.
So, the question many investors may be asking is: which tech giants could achieve such a valuation? Here are three lesser-known tech stocks with the potential for $1 trillion market cap. These are all companies with resilient business models and strong financials.
SQ Block $64.73
CRM Salesforce $210.95
U Unity Software $41.05
Block (SQ)
Source: Sergei Elagin / Shutterstock.com
Block (NYSE:SQ) is a leading fintech company that focuses on creating ecosystems where tools and services cohesively work together on a final product. The company is the creator of the Square, Cash App and the emerging TIDAL ecosystems.
The fintech industry is currently valued at $245 billion and is projected to grow at a 29.52% CAGR to $1.5 trillion by 2030. Additionally, the potential for global expansion is immense, with markets outside the U.S. and Europe driving rapid digitalization efforts.
Year-to-date, SQ stock has held steady, but strong growth potential is evident in its financials. Gross profit across all ecosystems was $1.71 billion, representing a 32% year-over-year increase, and gross profit for Block grew 27% year-over-year as well. Cash App’s gross profit surged 49% over the past year to $931 million, driven by diversified monetization streams.
Block’s biggest growth catalyst is the continued expansion of Cash App and Square in Africa, Asia, and Latin America. Block is targeting these regions due to their large future total addressable market when internet access becomes widespread. The company has quickly adopted AI, building on its extensive use of machine learning, to accelerate adoption in its core markets as well.
Furthermore, Yahoo Finance reports 37 analysts with a mean price target of $86.15, ranging from $60.00 to $110.00. Most notable firms also affirm and maintain an outperform rating. Block’s embrace of new technology in new markets will drive significant future growth in the expanding fintech industry.
Salesforce (CRM)
Source: Sundry Photography / Shutterstock.com
Salesforce (NYSE:CRM) provides cloud-based CRM software solutions for businesses of all sizes and types. Salesforce strives to lower costs, save time, and build the best consumer relationships.
On a year-to-date basis, CRM stock is up 62%, with 42 analysts predicting a 12-month median price of $241 per share.
The global customer relationship management market was valued at $64.41 billion in 2022 and is predicted to reach $157.53 billion, growing at a 12% CAGR through 2030. This rapid growth stems from businesses prioritizing customer-centric strategies. Technological advancements have revolutionized Salesforce, making it more accessible and scalable with cloud computing, AI, and data analytics firms.
Since 2013, Salesforce has posted strong financials, exemplified by a 10-year CAGR of 25.77%. In FY23, Salesforce achieved exceptional operational performance with a 35% levered free cash flow margin, surpassing the sector median, and $31 billion in revenue. This demonstrates Salesforce’s superior profitability and cash flow production, providing a better option than its sector rivals.
Salesforce’s key catalyst for long-term growth is its AI technology, Einstein AI. This technology was developed through partnerships with OpenAI and Google Cloud over the past eight years. Einstein AI will enhance CRM platforms by integrating generative and personalization AI capabilities into the world’s leading CRM platform. Einstein GPT enables AI-created content across various domains at a massive scale.
Salesforce’s technologies can rapidly and substantially impact the financial performance of businesses when effectively implemented. The integration of AI will only further amplify this fundamental influence and in turn cause Salesforce to grow.
CRM stock is a promising investment opportunity because of its strong financial performance and innovative AI-based offerings.
Unity Software (U)
Source: Konstantin Savusia / Shutterstock.com
Unity Software (NYSE:U) develops game engines used for 2D, 3D, VR, and AR games across various platforms. The company provides a leading platform for creating interactive real-time 3D content, setting itself apart in the game engine sector.
Notably, Unity’s Q1 2023 revenue was $500.3 million, representing an astonishing 56.3% year-over-year increase. Additionally, this result more than doubled the the sector’s median growth rate, and also beat analyst expectations by $20.53 million. Its normalized earnings per share came in at 6 cents, beating out consensus estimates by 9 cents. Finally, Unity’s impressive growth, driven by new services and R&D, is evident in its healthy gross profit margin of 67.7% (over the past 12 months).
The software giant has recently gained traction from its newly announced app development partnership with Apple’s (NASDAQ:AAPL) Vision Pro headset during Apple’s Worldwide Developers Conference. Unity Enterprises cements Unity’s RT3D leadership, and its Apple partnership demonstrates its focus on VR and AR game development.
Additionally, the consensus among analysts is that U stock is a moderate buy, with average upside of 9.28% over the next year. Thus, with robust growth, R&D progress in VR and AR gaming, and a key Apple partnership, U stock is one with trillion dollar potential worth watching.
On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga, and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The software giant has recently gained traction from its newly announced app development partnership with Apple’s (NASDAQ:AAPL) Vision Pro headset during Apple’s Worldwide Developers Conference. Thus, with robust growth, R&D progress in VR and AR gaming, and a key Apple partnership, U stock is one with trillion dollar potential worth watching. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments More From InvestorPlace Buy This $5 Stock BEFORE This Apple Project Goes Live Did Elon Musk Just Trigger a New Netscape Moment? | The software giant has recently gained traction from its newly announced app development partnership with Apple’s (NASDAQ:AAPL) Vision Pro headset during Apple’s Worldwide Developers Conference. SQ Block $64.73 CRM Salesforce $210.95 U Unity Software $41.05 Block (SQ) Source: Sergei Elagin / Shutterstock.com Block (NYSE:SQ) is a leading fintech company that focuses on creating ecosystems where tools and services cohesively work together on a final product. Gross profit across all ecosystems was $1.71 billion, representing a 32% year-over-year increase, and gross profit for Block grew 27% year-over-year as well. | The software giant has recently gained traction from its newly announced app development partnership with Apple’s (NASDAQ:AAPL) Vision Pro headset during Apple’s Worldwide Developers Conference. SQ Block $64.73 CRM Salesforce $210.95 U Unity Software $41.05 Block (SQ) Source: Sergei Elagin / Shutterstock.com Block (NYSE:SQ) is a leading fintech company that focuses on creating ecosystems where tools and services cohesively work together on a final product. Salesforce (CRM) Source: Sundry Photography / Shutterstock.com Salesforce (NYSE:CRM) provides cloud-based CRM software solutions for businesses of all sizes and types. | The software giant has recently gained traction from its newly announced app development partnership with Apple’s (NASDAQ:AAPL) Vision Pro headset during Apple’s Worldwide Developers Conference. Here are three lesser-known tech stocks with the potential for $1 trillion market cap. Block’s embrace of new technology in new markets will drive significant future growth in the expanding fintech industry. | 5 |
186 | 15,380 | 2023-06-13 00:00:00 UTC | Harnessing the Power of Long-Term Technical Analysis | AAPL | https://www.nasdaq.com/articles/harnessing-the-power-of-long-term-technical-analysis | null | null | We live in an era of instant gratification. Want to get food delivered to your door without getting off the couch? Order DoorDash (DASH). Don’t know the answer to something? Simple. Use Alphabet’s (GOOGL) Google search, and you’ll have it within seconds. Often, amateur traders and investors think in the same manner. These new and starry-eyed investors seek to extract money from the market quickly. Unfortunately, trading platforms amplify these emotions by offering up-to-the-second quotes, countless indicators, and flashing lights that would make casino operators like Las Vegas Sands (LVS) blush.
For the reasons mentioned above, newbies often falsely conflate the study of technical analysis as a short-term practice rather than a long-term one. The truth, however, is that technical analysis can be used in any time frame. In fact, the longer the time frame, the more visibility one has. Think about it – it’s easier to predict where the market will be in five years or fifteen years than it is to predict where it will be in five seconds or five days. Why? Because longer-term charts smooth out the data and present investors with the big picture.
Image Source: Zacks Investment Research
Pictured: 30-year S&P 500 chart
While I know no one with a crystal ball, the chart above illustrates that U.S. equities move higher over time. The critical part is to determine the general zone in which a long-term bottom is likely to occur and pounce.
The Power of the 200-Week Moving Average
What if I told you that there was an indicator that nailed every bottom in the Nasdaq 100 ETF (QQQ) dating back to the financial crisis? Though it’s not sexy and may be often overlooked, the 200-week moving average is that indicator.
Image Source: Tradingview
Why does the 200-Week Moving Average Work?
One guess is that institutional investors with deep pockets use it as a reference point. However, the reasoning behind such a simple indicator’s robustness is not important. What is important is that it works. As you will see in the examples below it works on more than just the Q’s. Remember, to get paid on Wall Street, you need to know the “What, not the why.”
Single Stock Examples
Apple (AAPL) is one of the best examples. Thus far in the 2000’s, the 200-week moving average has contained AAPL’s move. AAPL visited the 200-week and found support in 2008 (Global Financial Crisis), 2013, 2016, and 2019 and went on to make new highs after each visit.
Image Source: Tradingview
Nvidia (NVDA) tagged the line in 2019 (~$33 a share), during the pandemic crash of 2020 (~$46 per share), and in October 2022 (~$125).
Image Source: Tradingview
Microsoft (MSFT) pulled back to the moving average in October 2022 for the first time in a decade and found support nearly to the penny.
Image Source: Tradingview
What to Look For
Of course, hindsight is 20/20 on Wall Street and there is no such thing as a panacea – this includes the 200-week moving average. However, below are 3 ways to increase your odds of success when using the indicator, including:
Stick to the leaders: There is a significant difference between buying a stock simply because it’s on sale and buying a leading stock at a discount. Buy institutional quality, fundamentally strong stocks that are pulling back because of the macro environment – not the underlying stock’s fundamentals. For example, even as Nvidia corrected 2022, it grew its earnings.
Image Source: Zacks Investment Research
Patience and conviction are required: If it were easy to buy markets when they were falling, everyone would be rich. Long-term trades require patience, confidence, and vision.
Scale into positions: Successful investing is about putting the odds in your favor. However, even if the odds are stacked in your favor, it only ensures some trades will work out. For longer-term trades, you must have an exit plan if you’re wrong. Conversely, a prudent method to enter a long-term trade is to enter in pieces – buy a small piece, and as the trade starts to work in your favor, buy more. Let the market pull you in.
Conclusion
Bear markets are brutal for investors. However, savvy investors can turn crisis into opportunity and use this long-term signal to gain an edge in the market and build conviction.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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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. | Remember, to get paid on Wall Street, you need to know the “What, not the why.” Single Stock Examples Apple (AAPL) is one of the best examples. Thus far in the 2000’s, the 200-week moving average has contained AAPL’s move. AAPL visited the 200-week and found support in 2008 (Global Financial Crisis), 2013, 2016, and 2019 and went on to make new highs after each visit. | 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 Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report DoorDash, Inc. (DASH) : Free Stock Analysis Report To read this article on Zacks.com click here. Remember, to get paid on Wall Street, you need to know the “What, not the why.” Single Stock Examples Apple (AAPL) is one of the best examples. Thus far in the 2000’s, the 200-week moving average has contained AAPL’s move. | 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 Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report DoorDash, Inc. (DASH) : Free Stock Analysis Report To read this article on Zacks.com click here. Remember, to get paid on Wall Street, you need to know the “What, not the why.” Single Stock Examples Apple (AAPL) is one of the best examples. Thus far in the 2000’s, the 200-week moving average has contained AAPL’s move. | Remember, to get paid on Wall Street, you need to know the “What, not the why.” Single Stock Examples Apple (AAPL) is one of the best examples. Thus far in the 2000’s, the 200-week moving average has contained AAPL’s move. AAPL visited the 200-week and found support in 2008 (Global Financial Crisis), 2013, 2016, and 2019 and went on to make new highs after each visit. | null |
187 | 15,385 | 2023-06-12 00:00:00 UTC | Data-Driven Apps: The Best AI Stocks to Buy? | AAPL | https://www.nasdaq.com/articles/data-driven-apps%3A-the-best-ai-stocks-to-buy | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The “Age of Artificial Intelligence” has arrived. So has the time to invest in the next-generation of superstar stock winners.
Every ten years or so, a new technology emerges that transforms the world in profound ways.
The internet did it in the 1990s, connecting people and information across the globe. The smartphone did it in the 2000s, putting a powerful computer in everyone’s pocket. The cloud did it in the 2010s, enabling massive scalability and innovation.
Now, in the 2020s, AI is doing it, creating new possibilities and challenges for every sector and domain.
Following that logic, this is the moment to invest in the best AI stocks in the market.
Because, in the 1990s when the internet was changing the world, the market’s top internet stocks were fortune-makers. Stocks like Qualcomm (QCOM), Cisco (CSCO), and Oracle (ORCL) soared thousands of percent.
In the 2000s, when the smartphone was changing the world, the market’s top smartphone stocks were fortune-makers. Stocks like Apple (AAPL) soared thousands of percent.
In the 2010s, when the cloud was changing the world, the market’s top cloud stocks were fortune-makers. Stocks like Shopify (SHOP), The Trade Desk (TTD), and ServiceNow (NOW) soared thousands of percent.
Lather, rinse, and repeat with AI in the 2020s.
AI is transforming the world at an unprecedented pace. It is creating new opportunities and challenges for every industry, sector, and individual. The companies that are leading the AI revolution will reap enormous rewards and create lasting value for their shareholders. And those are the AI stocks that you need to know about and invest in today.
These AI stocks will soar thousands of percent.
But you have to buy the right stocks to really strike it rich. And the best way to do that is to identify the most explosive segments of the AI economy.
One segment I’m particularly excited about is the AI-powered App Economy, or the emergence of a whole new generation of software applications with AI capabilities.
I think it’ll birth multiple stock market mega-winners over the next few years. Here’s why.
The AI App Economy Will be Huge
Without fail, what are some things you do every day?
Breathe. Eat. Sleep. And check mobile apps.
A Pew Research poll found that over 80% of Americans own a smartphone these days. Separate eMarketer research found that Americans with smartphones spend about three-and-a-half hours every day checking mobile apps.
We are an app-addicted society.
And it’s not just individuals – businesses are app addicted, too.
According to Okta, the average large firm deploys 129 software apps across their enterprise.
Consumers. Businesses. We’re all app-addicted.
This addiction will only grow exponentially in the coming years thanks to AI.
AI is such a profound technological advancement that it will soon comprise the ultimate competitive advantage for every business in the world. Companies that use AI successfully across their enterprise will dominate. Companies that don’t will fail.
It will be that black-and-white.
Therefore, over the next several years, every company in the world is going to race to build out AI software apps across their enterprise. I wouldn’t be surprised to see the average firm have up to 500 AI software apps across their enterprise, doing everything from creating and filing documents, storing and analyzing data, automating workflows, performing research, crafting presentations, creating mock products, running automated marketing campaigns, and more.
We are entering the AI App Economy.
The Best Investment Idea in the AI App Economy
Creating and deploying AI apps in the new economy won’t just be value-additive for firms – it will be necessary for survival.
Yet, making apps is a complex science that requires a ton of coding, and coding is a rare skill. Throw AI into the mix, and creating and deploying AI apps is a huge challenge for pretty much every non-”FANG” business.
To that end, in this booming AI App Economy, there exists a huge gap between where the market is going, and the tools needed to advance the market to that point.
Filling that gap is an emerging category called Low-Code Application Platforms, or LCAPs. They are basically just platforms that make designing and launching an app as easy as drawing a workflow diagram. They turn creating and deploying apps into a Lego game, if you will, by allowing customers to stack pre-built app templates on top of each other to create enterprise-specific, fully-customized apps.
Demand for LCAPs is expected to boom over the next few years. Pretty much every major market research firm out there forecasts that the low-code software market will grow by somewhere between 20% and 30% per year over the next several years.
And those estimates were mostly delivered before this AI Boom.
Add AI apps into the mix, and we think the low-code software market will grow in excess of 30% per year over the next few years.
This promises to be one of the most explosive AI markets out there.
The Final Word on the Best AI Stocks to Buy
Obviously, the “top dogs” in the AI App Economy will be huge winners over the next few years – and you should probably consider buying their stocks today.
Because it could be like buying Cisco and Oracle back in the early 1990s, before they soared thousands of percent.
That’s why I highly urge you to watch this presentation right now, where I break down this whole AI Revolution.
Don’t miss this opportunity to learn everything you need to know about AI, see it in action with a live demonstration, and discover the best AI software stocks to invest in right now.
This presentation will show you how to profit from the AI Boom and avoid missing out on the biggest technological trend of our time.
Click here and watch it now before it’s too late.
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 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) soared thousands of percent. One segment I’m particularly excited about is the AI-powered App Economy, or the emergence of a whole new generation of software applications with AI capabilities. Separate eMarketer research found that Americans with smartphones spend about three-and-a-half hours every day checking mobile apps. | Stocks like Apple (AAPL) soared thousands of percent. Because, in the 1990s when the internet was changing the world, the market’s top internet stocks were fortune-makers. The Best Investment Idea in the AI App Economy Creating and deploying AI apps in the new economy won’t just be value-additive for firms – it will be necessary for survival. | Stocks like Apple (AAPL) soared thousands of percent. The Best Investment Idea in the AI App Economy Creating and deploying AI apps in the new economy won’t just be value-additive for firms – it will be necessary for survival. Throw AI into the mix, and creating and deploying AI apps is a huge challenge for pretty much every non-”FANG” business. | Stocks like Apple (AAPL) soared thousands of percent. Therefore, over the next several years, every company in the world is going to race to build out AI software apps across their enterprise. Pretty much every major market research firm out there forecasts that the low-code software market will grow by somewhere between 20% and 30% per year over the next several years. | null |
188 | 15,393 | 2023-06-11 00:00:00 UTC | WALL ST WEEK AHEAD-Investors rethink recession plays, boosting U.S. stock market laggards | AAPL | https://www.nasdaq.com/articles/wall-st-week-ahead-investors-rethink-recession-plays-boosting-u.s.-stock-market-laggards-0 | null | null | By David Randall
NEW YORK, June 9 (Reuters) - A U.S. stocks rally is showing signs of expanding beyond the cluster of giant growth and tech names that have led gains this year, as investors reposition portfolios primed for a widely expected recession.
For months, investors piled into a handful of megacap companies seen as safe bets in uncertain times, spurring a rally that has lifted the S&P 500 nearly 12% year-to-date, concentrated in a small group of stocks.
As the U.S. economy holds up despite higher interest rates, fears of an imminent downturn are fading. Some investors have started dipping their toes into economically sensitive market areas that have been out of favor this year including small caps, energy shares and industrial stocks - all of which have seen hefty rallies in June.
"We're seeing indications that the economy is going to be more resilient to headwinds," said Tim Murray, a capital market strategist in T Rowe Price's multi-asset division. "There's reason to believe that the pessimism we saw at the start of the year is giving way to a stronger-than-expected market."
Murray has increased his allocation to small-cap stocks, which tend to be among the most direct beneficiaries of economic growth. The Russell 2000 small cap index of small cap companies .RUT has surged 6.6% this month. The index is up 5.9% year-to-date.
Other rebounding segments in June include the S&P 500 energy sector, which has gained 6% this month and S&P 500 industrials, up 5.7%. Energy is down 7.6% year-to-date, while industrials have risen nearly 4%.
By contrast, the tech-heavy Nasdaq 100 has gained about 2% this month - though the recent underperformance follows a nearly 33% year-to-date surge on excitement over developments in artificial intelligence.
"This kind of dominance is unusual but you're starting to see it turn around," said Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.
Ten of the 11 S&P 500 sectors are firmer for the month to date, compared to only six for the year. An additional sign that investors are looking further afield can be seen in the market's breadth: the percentage of S&P 500 stocks trading above their 200-day moving average stood at nearly 54% on Friday, up from a low of 38% in March. That is still off from the high of 76% reached in February, however.
Stronger-than-expected jobs growth and robust consumer spending have been among the data points that have bolstered investors' economic outlook.
Among the firms revising recession forecasts were Goldman Sachs, which in the past week cut its probability of a recession in the next 12 months to 25% from 35%, while Nuveen's Chief Investment Officer Saira Malik recently wrote that a "mild" recession has likely been delayed from late 2023 to sometime in 2024.
Investors in the coming week will be watching U.S. consumer price data on Tuesday for signs that the Fed's rate hikes are continuing to cool inflation without badly hurting growth. The Fed concludes its two-day monetary policy meeting onWednesday, and while most market participants expect the U.S. central bank to leave rates unchanged, many will also be gauging policymakers' appetite for future tightening.
Some market watchers believe it is too early for economic optimism. Analysts at Capital Economics wrote on Thursday that the small-caps rally was likely premature, saying they expected softer growth in coming months. Jobless claims released on Thursday were higher than expected, a sign that the labor market could be cooling.
Others, however, are more optimistic. Max Wasserman, senior portfolio manager at Miramar Capital, has been increasing his positions in underperforming consumer stocks such as Starbucks Corp SBUX.O and Target Corp TGT.N, respectively down around 1% and 15% year-to-date. He expects restaurants and retailers to outperform as growth stabilizes in the second half of the year.
"That's when we think we will be rewarded," he said.
BREADTH https://tmsnrt.rs/43QjVpv
Reversal of fortune https://tmsnrt.rs/3CjkeNV
(Reporting by David Randall; Additional reporting Saqib Iqbal Ahmed and Lewis Krauskopf; Editing by Ira Iosebashvili and Richard Chang)
((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By David Randall NEW YORK, June 9 (Reuters) - A U.S. stocks rally is showing signs of expanding beyond the cluster of giant growth and tech names that have led gains this year, as investors reposition portfolios primed for a widely expected recession. Some investors have started dipping their toes into economically sensitive market areas that have been out of favor this year including small caps, energy shares and industrial stocks - all of which have seen hefty rallies in June. The Fed concludes its two-day monetary policy meeting onWednesday, and while most market participants expect the U.S. central bank to leave rates unchanged, many will also be gauging policymakers' appetite for future tightening. | Some investors have started dipping their toes into economically sensitive market areas that have been out of favor this year including small caps, energy shares and industrial stocks - all of which have seen hefty rallies in June. The Russell 2000 small cap index of small cap companies .RUT has surged 6.6% this month. BREADTH https://tmsnrt.rs/43QjVpv Reversal of fortune https://tmsnrt.rs/3CjkeNV (Reporting by David Randall; Additional reporting Saqib Iqbal Ahmed and Lewis Krauskopf; Editing by Ira Iosebashvili and Richard Chang) ((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By David Randall NEW YORK, June 9 (Reuters) - A U.S. stocks rally is showing signs of expanding beyond the cluster of giant growth and tech names that have led gains this year, as investors reposition portfolios primed for a widely expected recession. Some investors have started dipping their toes into economically sensitive market areas that have been out of favor this year including small caps, energy shares and industrial stocks - all of which have seen hefty rallies in June. Analysts at Capital Economics wrote on Thursday that the small-caps rally was likely premature, saying they expected softer growth in coming months. | Some investors have started dipping their toes into economically sensitive market areas that have been out of favor this year including small caps, energy shares and industrial stocks - all of which have seen hefty rallies in June. The index is up 5.9% year-to-date. Other rebounding segments in June include the S&P 500 energy sector, which has gained 6% this month and S&P 500 industrials, up 5.7%. | null |
189 | 15,399 | 2023-06-10 00:00:00 UTC | Guru Fundamental Report for AAPL | AAPL | https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-1 | null | null | 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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Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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. | 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). | 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. | 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. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. | null |
190 | 15,406 | 2023-06-09 00:00:00 UTC | Invest Like a Political Insider with These 2 New ETFs | AAPL | https://www.nasdaq.com/articles/invest-like-a-political-insider-with-these-2-new-etfs | null | null | Politics are increasingly creeping into all areas of American life, and for better or worse, investing is not immune to this phenomenon. We recently covered the growing number of ETFs that allow people to invest in companies that they believe are aligned with their viewpoints. These ETFs do this by screening for companies that donate money to political candidates or causes.
Now, Subversive ETFs has unveiled an interesting new twist on political ETFs with two brand new ETFS, one for each opposing side of the aisle -- the Unusual Whales Subversive Republican Trading ETF (BATS:KRUZ) and the Unusual Whales Subversive Democratic Trading ETF (BATS:NANC). How do they work, and could they be worthy of a place in your portfolio?
How Do These ETFs Invest Like Political Insiders?
As one might guess, the Democratic version of this ETF’s ticker is a reference to Democratic congresswoman and former Speaker of the House Nancy Pelosi, while the Republican ying to NANC’s yang is named for Ted Cruz, the high-profile Republican Senator from Texas and former presidential candidate.
While a number of ETFs allow investors to invest in stocks that they feel like match up with their political preferences, these two new ETFs take a whole new approach. Instead of merely tracking which companies make donations to politicians, NANC and KRUZ utilize data provided by Unusual Whales, an options and equity data platform, to track what stocks members of Congress are buying and selling, using this information to invest alongside them. KRUZ invests in equities bought or sold by Republican members of Congress, while NANC does the same thing with Democratic members of Congress.
If you’ve spent any time on the financial side of Twitter (often called "FinTwit") in recent years, you’ve likely seen plenty of accounts discussing the transactions made by Nancy Pelosi and her husband, Paul, and users joking (or perhaps only half joking), that Pelosi is a better investor than Warren Buffett based on her timely buys and sells before major news comes to light about some of these stocks.
While the ability of politicians to enrich themselves based on inside knowledge and influence they derive from positions as lawmakers is an unseemly part of U.S. politics (the U.S. is the only democracy in the world that allows officeholders to invest like this), I give Unusual Whales and Subversive ETFs credit for using data to level the playing field and at least letting everyday Americans invest like these political insiders.
They are able to do this because, thanks to the STOCK Act, members of Congress and their spouses must disclose what stocks they buy and sell.
How Are Politicians Investing?
Now that we know how they work, let’s take a look at what NANC and KRUZ look like in practice. These ETFs are actually incredibly diversified, which stands to reason, as they are representing the transactions of hundreds of Congressmen and Congresswomen.
NANC holds a massive 741 positions, and its top 10 holdings make up 47.4% of the fund. Below, you’ll find an overview of NANC’s top 10 holdings using TipRanks’ holdings tool.
As you can see above, NANC skews heavily towards mega-cap tech stocks like Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), so holding it would give investors exposure that isn't all that different from investing in massive tech ETFs like the Invesco QQQ Trust (NASDAQ:QQQ) or the Technology Select Sector SPDR Fund (NYSEARCA:XLK).
You’ll also notice that NANC’s top holdings collectively boast some pretty impressive Smart Scores, with eight of its top 10 scoring 8 or above. The Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks a score from 1 to 10 based on eight market key factors. The score is data-driven and does not involve any human intervention.
Meanwhile, KRUZ holds 486 positions, and its top 10 holdings make up a fairly minuscule 16.5% of assets. Check out the table below for an overview of KRUZ’s top holdings.
KRUZ clearly isn’t as tech-centric as NANC, and it skews more towards what you might call ‘old economy stocks’ like energy companies and tobacco giant Philip Morris International (NYSE:PM). But there’s a little bit of everything, with Netflix (NASDAQ:NFLX) representing the tech sector and healthcare companies also having a presence. Seven out of KRUZ’s top 10 positions feature Smart Scores of 8 or above.
NANC has an ETF Smart Score of 8, edging out KRUZ, which scores a 7.
One thing to make note of is that just because these two ETFs represent different sides of the aisle, that doesn’t mean there isn’t overlap in their positions. Politicians from both parties have bought stocks like Amazon (NASDAQ:AMZN), Home Depot (NYSE:HD), and Ford (NYSE:F), just to name a few, so you’ll find these and plenty more in both ETFs.
Are Analysts Bullish on NANC and KRUZ Shares?
Analysts view NANC in a positive light. It has a Moderate Buy rating, and the average NANC stock price target of $29.94 implies upside potential of 11.5% from the ETF’s current price.
The analyst community views KRUZ relatively similarly, giving it the same Moderate Buy consensus rating. Further, the average KRUZ stock price target of $28.52 implies 15.2% upside potential.
Investor Takeaway
This is an interesting concept for an investment vehicle, and I also give Subversive ETFs and Unusual Whales credit for seeking to level the playing field between politicians and everyday Americans, at least in the investing sphere.
It’s feasible that this strategy of following the investing decisions of Congressmen and congresswomen could be a fruitful one, but these ETFS just launched in February of 2023, so for now, they don’t have much of a track record to judge them on, and time will tell how effective this strategy is.
These are still relatively tiny ETFs in the investing landscape -- KRUZ currently has just $4.9 million in assets under management, while NANC has $6.7 million.
One additional downside to be aware of is that both of these ETFs charge relatively high fees -- KRUZ and NANC both have expenses ratios of 0.75%, meaning that if you were to invest $10,000 into one of them today, you would pay $75 in fees in year one. For these reasons, I am watching KRUZ and NANC as an interested observer rather than buying one or the other.
One additional idea is that if I were interested in investing in NANC, I would consider simply investing in the aforementioned ETFs like QQQ or XLK, as they give you much of the same exposure to the large-cap tech stocks that make up NANC’s top holdings and offer lower fees and a much longer track record of performance.
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 you can see above, NANC skews heavily towards mega-cap tech stocks like Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), so holding it would give investors exposure that isn't all that different from investing in massive tech ETFs like the Invesco QQQ Trust (NASDAQ:QQQ) or the Technology Select Sector SPDR Fund (NYSEARCA:XLK). If you’ve spent any time on the financial side of Twitter (often called "FinTwit") in recent years, you’ve likely seen plenty of accounts discussing the transactions made by Nancy Pelosi and her husband, Paul, and users joking (or perhaps only half joking), that Pelosi is a better investor than Warren Buffett based on her timely buys and sells before major news comes to light about some of these stocks. While the ability of politicians to enrich themselves based on inside knowledge and influence they derive from positions as lawmakers is an unseemly part of U.S. politics (the U.S. is the only democracy in the world that allows officeholders to invest like this), I give Unusual Whales and Subversive ETFs credit for using data to level the playing field and at least letting everyday Americans invest like these political insiders. | As you can see above, NANC skews heavily towards mega-cap tech stocks like Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), so holding it would give investors exposure that isn't all that different from investing in massive tech ETFs like the Invesco QQQ Trust (NASDAQ:QQQ) or the Technology Select Sector SPDR Fund (NYSEARCA:XLK). Now, Subversive ETFs has unveiled an interesting new twist on political ETFs with two brand new ETFS, one for each opposing side of the aisle -- the Unusual Whales Subversive Republican Trading ETF (BATS:KRUZ) and the Unusual Whales Subversive Democratic Trading ETF (BATS:NANC). Instead of merely tracking which companies make donations to politicians, NANC and KRUZ utilize data provided by Unusual Whales, an options and equity data platform, to track what stocks members of Congress are buying and selling, using this information to invest alongside them. | As you can see above, NANC skews heavily towards mega-cap tech stocks like Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), so holding it would give investors exposure that isn't all that different from investing in massive tech ETFs like the Invesco QQQ Trust (NASDAQ:QQQ) or the Technology Select Sector SPDR Fund (NYSEARCA:XLK). Now, Subversive ETFs has unveiled an interesting new twist on political ETFs with two brand new ETFS, one for each opposing side of the aisle -- the Unusual Whales Subversive Republican Trading ETF (BATS:KRUZ) and the Unusual Whales Subversive Democratic Trading ETF (BATS:NANC). One additional idea is that if I were interested in investing in NANC, I would consider simply investing in the aforementioned ETFs like QQQ or XLK, as they give you much of the same exposure to the large-cap tech stocks that make up NANC’s top holdings and offer lower fees and a much longer track record of performance. | As you can see above, NANC skews heavily towards mega-cap tech stocks like Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), so holding it would give investors exposure that isn't all that different from investing in massive tech ETFs like the Invesco QQQ Trust (NASDAQ:QQQ) or the Technology Select Sector SPDR Fund (NYSEARCA:XLK). Instead of merely tracking which companies make donations to politicians, NANC and KRUZ utilize data provided by Unusual Whales, an options and equity data platform, to track what stocks members of Congress are buying and selling, using this information to invest alongside them. Meanwhile, KRUZ holds 486 positions, and its top 10 holdings make up a fairly minuscule 16.5% of assets. | 4 |
191 | 15,432 | 2023-06-08 00:00:00 UTC | Apple, Epic ask US appeals court to reconsider its antitrust ruling | AAPL | https://www.nasdaq.com/articles/apple-epic-ask-us-appeals-court-to-reconsider-its-antitrust-ruling | null | null | By Mike Scarcella
June 8 (Reuters) - Apple AAPL.O and "Fortnite" maker Epic Games on Wednesday both asked a U.S. appeals court to reconsider its April ruling in an antitrust case that could force Apple to change payment practices in its App Store.
Apple and Epic, in separate court filings, mounted challenges to a ruling by a three-judge panel of the San Francisco-based 9th U.S. Circuit Court of Appeals. Lawyers for the two companies said the panel should rehear the case or the court should convene "en banc," as an 11-judge panel, to reconsider the dispute.
The April three-judge ruling upheld a 2021 order in California federal court in Epic's lawsuit which accused Apple of unlawfully requiring software developers to pay up to 30% in commissions on consumers' in-app purchases.
The trial judge found that Apple violated a California state unfair competition law, but not U.S. antitrust provisions. Apple's new filingchallenged a nationwide injunction over conduct Apple said was "procompetitive and does not violate the antitrust laws."
Epic's 9th Circuit filing argued that its claims against Apple directly implicate the "core purpose" of U.S. antitrust law to foster competition. Epic also argued that the appeals court did not conduct a "rigorous" balancing between asserted asserted consumer benefits and anticompetitive effects of Apple's practices.
Federal appeals courts do not often grant en banc requests. Last year, the 9th Circuit received 646 petitions asking the court for en banc rehearings. During that period, the court granted 12 requests. In 2021, the court granted en banc review in nine cases.
The U.S. Supreme Court could have the final say on the outcome.
Representatives for Apple and Epic had no immediate comment.
The lower court ruling is on hold pending further appellate proceedings.
U.S. District Judge Yvonne Gonzalez Rogers' ruling said Apple could not bar AppStore developers from providing links and buttons that direct consumers to payment options outside of Apple's in-app purchase system.
Gonzalez Rogers did not provide any direction on how Apple must allow those links or buttons.
Competition authorities in other countries, including South Korea, the Netherlands and Japan, have taken steps to force Apple to open up its in-app payment systems.
The case is Epic Games Inc v. Apple Inc, 9th U.S. Circuit Court of Appeals, No. 21-16506.
Apple cannot ban links to outside App Store payments, U.S. appeals court says https://www.reuters.com/legal/us-appeals-court-upholds-lower-court-order-forcing-apple-allow-third-party-app-2023-04-24/
Epic's 'failure of proof' in Apple antitrust case questioned by appeals panel https://www.reuters.com/legal/fortnite-creator-fight-apple-antitrust-ruling-appeal-hearing-2022-11-14/
Apple must ease App Store rules, U.S. judge orders https://www.reuters.com/legal/litigation/judge-epic-suit-says-apple-restrictions-anti-competitive-2021-09-10/
(Reporting by Mike Scarcella; editing by Leigh Jones)
((Mike.Scarcella@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Mike Scarcella June 8 (Reuters) - Apple AAPL.O and "Fortnite" maker Epic Games on Wednesday both asked a U.S. appeals court to reconsider its April ruling in an antitrust case that could force Apple to change payment practices in its App Store. The April three-judge ruling upheld a 2021 order in California federal court in Epic's lawsuit which accused Apple of unlawfully requiring software developers to pay up to 30% in commissions on consumers' in-app purchases. Epic's 9th Circuit filing argued that its claims against Apple directly implicate the "core purpose" of U.S. antitrust law to foster competition. | By Mike Scarcella June 8 (Reuters) - Apple AAPL.O and "Fortnite" maker Epic Games on Wednesday both asked a U.S. appeals court to reconsider its April ruling in an antitrust case that could force Apple to change payment practices in its App Store. U.S. District Judge Yvonne Gonzalez Rogers' ruling said Apple could not bar AppStore developers from providing links and buttons that direct consumers to payment options outside of Apple's in-app purchase system. Apple cannot ban links to outside App Store payments, U.S. appeals court says https://www.reuters.com/legal/us-appeals-court-upholds-lower-court-order-forcing-apple-allow-third-party-app-2023-04-24/ Epic's 'failure of proof' in Apple antitrust case questioned by appeals panel https://www.reuters.com/legal/fortnite-creator-fight-apple-antitrust-ruling-appeal-hearing-2022-11-14/ Apple must ease App Store rules, U.S. judge orders https://www.reuters.com/legal/litigation/judge-epic-suit-says-apple-restrictions-anti-competitive-2021-09-10/ (Reporting by Mike Scarcella; editing by Leigh Jones) ((Mike.Scarcella@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Mike Scarcella June 8 (Reuters) - Apple AAPL.O and "Fortnite" maker Epic Games on Wednesday both asked a U.S. appeals court to reconsider its April ruling in an antitrust case that could force Apple to change payment practices in its App Store. U.S. District Judge Yvonne Gonzalez Rogers' ruling said Apple could not bar AppStore developers from providing links and buttons that direct consumers to payment options outside of Apple's in-app purchase system. Apple cannot ban links to outside App Store payments, U.S. appeals court says https://www.reuters.com/legal/us-appeals-court-upholds-lower-court-order-forcing-apple-allow-third-party-app-2023-04-24/ Epic's 'failure of proof' in Apple antitrust case questioned by appeals panel https://www.reuters.com/legal/fortnite-creator-fight-apple-antitrust-ruling-appeal-hearing-2022-11-14/ Apple must ease App Store rules, U.S. judge orders https://www.reuters.com/legal/litigation/judge-epic-suit-says-apple-restrictions-anti-competitive-2021-09-10/ (Reporting by Mike Scarcella; editing by Leigh Jones) ((Mike.Scarcella@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Mike Scarcella June 8 (Reuters) - Apple AAPL.O and "Fortnite" maker Epic Games on Wednesday both asked a U.S. appeals court to reconsider its April ruling in an antitrust case that could force Apple to change payment practices in its App Store. Epic's 9th Circuit filing argued that its claims against Apple directly implicate the "core purpose" of U.S. antitrust law to foster competition. Federal appeals courts do not often grant en banc requests. | 3 |
192 | 15,466 | 2023-06-07 00:00:00 UTC | Tim Cook Calls Vision Pro "Tomorrow's Engineering, Today." And No, It's Not the Metaverse. | AAPL | https://www.nasdaq.com/articles/tim-cook-calls-vision-pro-tomorrows-engineering-today.-and-no-its-not-the-metaverse. | null | null | Apple's (NASDAQ: AAPL) history is marked by exciting launches that have transformed the company -- and maybe your lifestyle too. I'm thinking of products like the iPhone or the iPad. But it's been a while since the innovative tech company has unveiled a new game-changing product. The last one actually was the Apple Watch back in 2014.
However, the wait may be over. The company announced Vision Pro at its developers conference earlier this week. In an interview with Good Morning America, Apple chief executive officer Tim Cook referred to the device as "tomorrow's engineering, today."
But Apple isn't calling Vision Pro a step into the metaverse. Instead, Apple is focusing on the idea of spatial computing. Could this be Apple's next big thing?
Making your movie screen 100 feet wide
First, some details about the device: It's a headset that allows wearers to see apps, messages, and more within their environment. Users can launch a search through a simple voice command and scroll through items with a tap of a finger.
Vision Pro promises to make your movie screen feel 100 feet wide -- right there in your living room. Users also can look at their own photos and videos at life-size scale. And those are just a couple of examples of what this new device can do.
Users feel as if they're really in the middle of the action as they watch movies, TV programs, or sporting events, Cook said on Good Morning America. So, it's an exciting moment for technology fans. But it also is an exciting moment for Apple.
Vision Pro is the "most advanced piece of electronics equipment out there," Cook said during the interview. He called augmented reality a "profound technology" that Apple has been working on for a while. "This is the next chapter in that, and it's a huge leap," the CEO said.
It's clear that the product is a major innovation. But the question now is whether it will stand out as Apple's previous innovations have done -- and how it may impact revenue.
Vision Pro comes with a hefty price tag: at least $3,499, the company says. That's compared to Meta Platforms' Quest 3 that should launch later this year for $499.
Budget-conscious technology fans may opt for the Meta product. Even if the Apple product is superior, it may be difficult to sell Vision Pro to a wide audience at such a price level.
That said, at this price, Apple may not need a huge audience. My colleague Nicholas Rossolillo wrote about how Apple just needs to sell 1.9 million Vision Pro devices to equal the iPad's revenue from last quarter. This means Vision Pro could become Apple's next big thing -- even if it doesn't attract a huge audience.
A key step for Apple
And, right now, Vision Pro is a key step for Apple because it brings the company into a new era of technology. It's still too early to say whether this device will be a stepping stone for Apple in spatial computing, or if it will truly take off. But Apple's strong device track record is good reason to be optimistic about the company's position in spatial computing over the long term.
One key point to watch is the pace of development of applications for Vision Pro. Apple's developer community can harness the power of Vision Pro to create new app experiences, for example.
Whether Vision Pro immediately brings revenue growth to Apple or not, all of this means it still could be yet another game-changing device for the company.
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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's (NASDAQ: AAPL) history is marked by exciting launches that have transformed the company -- and maybe your lifestyle too. In an interview with Good Morning America, Apple chief executive officer Tim Cook referred to the device as "tomorrow's engineering, today." Users feel as if they're really in the middle of the action as they watch movies, TV programs, or sporting events, Cook said on Good Morning America. | Apple's (NASDAQ: AAPL) history is marked by exciting launches that have transformed the company -- and maybe your lifestyle too. Vision Pro promises to make your movie screen feel 100 feet wide -- right there in your living room. A key step for Apple And, right now, Vision Pro is a key step for Apple because it brings the company into a new era of technology. | Apple's (NASDAQ: AAPL) history is marked by exciting launches that have transformed the company -- and maybe your lifestyle too. Even if the Apple product is superior, it may be difficult to sell Vision Pro to a wide audience at such a price level. A key step for Apple And, right now, Vision Pro is a key step for Apple because it brings the company into a new era of technology. | Apple's (NASDAQ: AAPL) history is marked by exciting launches that have transformed the company -- and maybe your lifestyle too. Budget-conscious technology fans may opt for the Meta product. This means Vision Pro could become Apple's next big thing -- even if it doesn't attract a huge audience. | 3 |
193 | 15,472 | 2023-06-06 00:00:00 UTC | Where Apple (AAPL) Stock Will Probably Go From Here | AAPL | https://www.nasdaq.com/articles/where-apple-aapl-stock-will-probably-go-from-here | null | null | T
here are very few things in trading and markets that are predictable, but yesterday we saw a pattern play out that has been as reliable as such things can be for some time now. When Apple (AAPL) launches a new product or provides a major update to an existing one, their stock behaves in an identifiable, oft-repeated manner that I have been talking about in these pages for many years now, such as in this 2018 article.
As a major product announcement from Cupertino approaches, the hype begins to build and AAPL rises consistently for a few days, even a few weeks. Then, when the big reveal comes, nothing can live up to the level of hype generated, and the actual product is seen as a disappointment in some ways. Then there are a series of hot takes that create a sense of negativity. Of course, those who blather their uninformed opinions are the serially snarky types but we have become so accustomed to them that their consistent and often completely wrong negativity goes unchallenged.
Thus, the notion that the new iPhone, Apple Watch or whatever the product du jour is, is a disaster takes hold.
The traders who bought the stock to force it higher during the hype period scramble to take profits as all the negativity hits and the stock tumbles. Depending on how far the stock rose in the approach to the release, that drop may continue for a few days but, at some point, the market begins to recognize two important things.
First, Apple products are very rarely failures. Some would have you believe that is because the company has some kind of magic, but there is a more prosaic explanation for that. Apple is not really an innovator at the fundamental level. It never has been, or at least not since the very early days. Rather, what they do is to take others’ proven concepts, then improve them and market the resulting products well. That is a low-risk strategy, with a very low failure rate.
Second, in a company with annual sales totaling around $400 billion, the success or failure of any one product or update can only have so much effect on the stock. When things haven’t been instant hits (think AppleTV, for example), its overall massive sales and cashflow allows Apple room to let any new product grow. While each product and division is, I’m sure, encouraged to operate as its own profit center, over $80 billion a year in free cash flow does give the company flexibility in pricing and the ability to wait it out a while if a product is perhaps ahead of its time.
When investors begin to remember those two things, which usually comes a week or so after launch, the stock inevitably bounces. Investors should keep all that in mind this morning as AAPL goes through this familiar pattern, following the launch of the new VR headset, the Vision Pro. The buildup to the release saw the stock climb as usual, and then when the product was revealed, the stock immediately dropped, as has happened so often before:
The criticisms this time are ones we have heard before. The Vision Pro, at $3,499 is far too expensive, the moaners say, and it isn’t, in its first iteration, absolutely perfect. However, if we let history be our guide, neither of these complaints really matter.
Yes, the price is high, especially when compared to something like Meta's Quest line, where even the high-end Pro version comes in at around $1,000. However, what Apple has been able to do in the past is to refine an existing thing to such an extent that they create essentially their own category of “luxury” product. When that occurs, a higher price can give the impression of exclusivity and superiority, and can actually help sales in some ways. That may or may not happen here but whether it does or not, the fans of cutting edge tech who buy these kinds of things will buy it anyway.
We all know that kind of person, right? The friend or relative who just doesn’t care that what they are buying will be obsolete in a couple of years, or that prices will fall dramatically before too long. They just have to have the latest thing. There are enough of them to keep the product afloat until other complaints, like the weight of the device, are addressed in future versions.
If you are a long-term Apple investor (full disclosure, I am as well), don’t overreact to the drop in the stock that followed yesterday’s launch. It is not indicative of real problems with the product, nor is it a sign that sales will be weak, and it certainly isn’t a reason to sell. It is just what happens when Apple launches or updates something. What usually follows is a period of outperformance, so if anything, the pullback is an opportunity to add to your holdings.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | When Apple (AAPL) launches a new product or provides a major update to an existing one, their stock behaves in an identifiable, oft-repeated manner that I have been talking about in these pages for many years now, such as in this 2018 article. As a major product announcement from Cupertino approaches, the hype begins to build and AAPL rises consistently for a few days, even a few weeks. Investors should keep all that in mind this morning as AAPL goes through this familiar pattern, following the launch of the new VR headset, the Vision Pro. | When Apple (AAPL) launches a new product or provides a major update to an existing one, their stock behaves in an identifiable, oft-repeated manner that I have been talking about in these pages for many years now, such as in this 2018 article. As a major product announcement from Cupertino approaches, the hype begins to build and AAPL rises consistently for a few days, even a few weeks. Investors should keep all that in mind this morning as AAPL goes through this familiar pattern, following the launch of the new VR headset, the Vision Pro. | When Apple (AAPL) launches a new product or provides a major update to an existing one, their stock behaves in an identifiable, oft-repeated manner that I have been talking about in these pages for many years now, such as in this 2018 article. As a major product announcement from Cupertino approaches, the hype begins to build and AAPL rises consistently for a few days, even a few weeks. Investors should keep all that in mind this morning as AAPL goes through this familiar pattern, following the launch of the new VR headset, the Vision Pro. | When Apple (AAPL) launches a new product or provides a major update to an existing one, their stock behaves in an identifiable, oft-repeated manner that I have been talking about in these pages for many years now, such as in this 2018 article. As a major product announcement from Cupertino approaches, the hype begins to build and AAPL rises consistently for a few days, even a few weeks. Investors should keep all that in mind this morning as AAPL goes through this familiar pattern, following the launch of the new VR headset, the Vision Pro. | 3 |
194 | 15,500 | 2023-06-05 00:00:00 UTC | Dow Movers: BA, AAPL | AAPL | https://www.nasdaq.com/articles/dow-movers%3A-ba-aapl-1 | null | null | In early trading on Monday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.5%. Year to date, Apple registers a 41.4% gain.
And the worst performing Dow component thus far on the day is Boeing, trading down 1.5%. Boeing is showing a gain of 10.3% looking at the year to date performance.
Two other components making moves today are Salesforce, trading down 1.3%, and Walgreens Boots Alliance, trading up 1.2% on the day.
VIDEO: Dow Movers: BA, AAPL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | VIDEO: Dow Movers: BA, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.5%. And the worst performing Dow component thus far on the day is Boeing, trading down 1.5%. | VIDEO: Dow Movers: BA, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.5%. Year to date, Apple registers a 41.4% gain. | VIDEO: Dow Movers: BA, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Apple topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.5%. And the worst performing Dow component thus far on the day is Boeing, trading down 1.5%. | VIDEO: Dow Movers: BA, AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Dow component thus far on the day is Boeing, trading down 1.5%. Boeing is showing a gain of 10.3% looking at the year to date performance. | 4 |
195 | 15,532 | 2023-06-04 00:00:00 UTC | Is Buying Nvidia Stock a Sneaky Crypto Play? | AAPL | https://www.nasdaq.com/articles/is-buying-nvidia-stock-a-sneaky-crypto-play | null | null | Investors are buzzing about Nvidia (NASDAQ: NVDA) after it reached a $1 trillion market capitalization at the end of May. Now trading at just under $400, Nvidia joins a rarefied elite of just four other U.S.-based companies -- Apple, Alphabet, Microsoft, and Amazon -- with trillion-dollar market valuations. Although Nvidia is obviously a strong play on the future growth of the tech industry, could it also be a sneaky crypto play?
That might not be as insane as it sounds. Nvidia already provides the specialized graphics processing units (GPUs) required for cryptocurrency mining rigs. And Nvidia's recent announcement of a new AI supercomputing platform has already led to a flurry of AI-themed cryptos surging higher over the past week. Here's a closer look at why Nvidia might be a way to get exposure to the crypto industry, without taking on excessive risk.
The old crypto investment thesis for Nvidia
Until the start of this year, the standard investment thesis for Nvidia as part of a crypto portfolio was based on cryptocurrency mining. To mine proof-of-work cryptos such as Bitcoin, miners need very powerful computing systems called mining rigs. And Nvidia has provided some of the most powerful GPUs used in these mining rigs. In any review of the best GPUs for mining, Nvidia typically ranks at the top of the list.
Image source: Getty Images.
As a result of this link to cryptocurrency mining, some analysts and fund managers already consider Nvidia to be an invaluable part of any broad-based stock portfolio designed to get exposure to the crypto industry. For example, take the Schwab Crypto Thematic ETF. Currently, Nvidia is its sixth-largest holding, behind PayPal and ahead of Block, representing 4.1% of the fund's holdings.
However, crypto giant Ethereum transitioned from a proof-of-work blockchain to a proof-of-stake blockchain back in September, so the investment narrative around Nvidia and crypto mining has been fading. That's because Ethereum mining rigs are now obsolete. You can no longer use Nvidia GPU mining rigs to mine Ethereum, so they need to be repurposed for other cryptos. Given that Ethereum is the world's second-largest cryptocurrency by market cap, that's actually a big deal. It definitely takes some of the allure away from the crypto mining idea.
The new crypto investment thesis for Nvidia
That's why Nvidia's recent announcements related to AI are so exciting for crypto investors. It means that there's a new reason to buy Nvidia, and that's the rise of new AI-powered cryptos. With the popular success of ChatGPT and other generative AI projects, it's becoming more and more popular to put AI projects on the blockchain, and that's leading to a dramatic surge in AI cryptos. For example, as soon as Nvidia reported blowout sales estimates related to AI, SingularityNET, an AI crytpo, jumped almost 20%. Smaller AI cryptos were up 5% across the board.
Bigger gains related to AI and crypto could be on the way. At a big computer industry trade show in Taiwan, Nvidia announced the launch of a new AI supercomputer platform (DGX GH200) that is specifically being billed as a way for large tech companies to build ChatGPT competitors. Moreover, Nvidia said at the trade show that it was going to focus on ways to make video games more lifelike with the help of AI. That could spur growth in the blockchain gaming and metaverse sectors of the crypto industry.
How much Nvidia is too much Nvidia?
As a result, Nvidia could be a relatively safe way for investors to gain access to the infamously volatile crypto market. Instead of trying to pick winners among a growing number of AI-themed cryptos (almost all of them with market caps of less than $50 million), you could simply diversify your exposure via Nvidia. And, instead of trying to find the best crypto mining stocks or trying to pick the best proof-of-work cryptos (which require mining), you could simply invest in Nvidia.
Obviously, you don't want to overdo things, no matter how excited you might be about Nvidia, AI, or crypto. As noted above, the Schwab Crypto Thematic ETF currently has less than 5% of its portfolio dedicated to Nvidia. That might be a good benchmark figure when thinking about how to diversify your own portfolio.
With all of the good news coming out of Nvidia these days, I'm bullish both on the company and the long-term fortunes of the AI industry. The extra bonus for investors is that Nvidia also gives you sneaky access to crypto without having to dip your toes into the crypto market.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And Nvidia's recent announcement of a new AI supercomputing platform has already led to a flurry of AI-themed cryptos surging higher over the past week. As a result of this link to cryptocurrency mining, some analysts and fund managers already consider Nvidia to be an invaluable part of any broad-based stock portfolio designed to get exposure to the crypto industry. At a big computer industry trade show in Taiwan, Nvidia announced the launch of a new AI supercomputer platform (DGX GH200) that is specifically being billed as a way for large tech companies to build ChatGPT competitors. | The new crypto investment thesis for Nvidia That's why Nvidia's recent announcements related to AI are so exciting for crypto investors. And, instead of trying to find the best crypto mining stocks or trying to pick the best proof-of-work cryptos (which require mining), you could simply invest in Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bitcoin, Block, Ethereum, Microsoft, Nvidia, and PayPal. | The old crypto investment thesis for Nvidia Until the start of this year, the standard investment thesis for Nvidia as part of a crypto portfolio was based on cryptocurrency mining. The new crypto investment thesis for Nvidia That's why Nvidia's recent announcements related to AI are so exciting for crypto investors. And, instead of trying to find the best crypto mining stocks or trying to pick the best proof-of-work cryptos (which require mining), you could simply invest in Nvidia. | The new crypto investment thesis for Nvidia That's why Nvidia's recent announcements related to AI are so exciting for crypto investors. And, instead of trying to find the best crypto mining stocks or trying to pick the best proof-of-work cryptos (which require mining), you could simply invest in Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Bitcoin, Block, Ethereum, Microsoft, Nvidia, and PayPal. | 5 |
196 | 15,536 | 2023-06-03 00:00:00 UTC | Guru Fundamental Report for AAPL - Warren Buffett | AAPL | https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-warren-buffett-46 | null | null | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
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.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
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Warren Buffett Portfolio
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About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
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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. | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. | Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL). | Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL). | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. | 5 |
197 | 15,560 | 2023-06-02 00:00:00 UTC | Apple Nears All-Time High: Is the Tech Giant Too Extended? | AAPL | https://www.nasdaq.com/articles/apple-nears-all-time-high%3A-is-the-tech-giant-too-extended | null | null | Apple stock has been in ultrasonic mode this year. After a series of higher highs and higher lows along with fresh 52-week highs, Apple AAPL shares have now soared back near all-time highs, as the tech giant has benefitted from strength in the large-cap tech space. The bullish theme around artificial intelligence certainly hasn’t hurt either.
After a nearly 40% surge in 2023, are Apple shares now too far extended, or is the rally just getting underway?
Plenty of Skepticism Remains
Let’s take a step back for a moment and think about general market conditions. The American Association of Individual Investors publishes an investment sentiment indicator that shows the percentage spread between bulls and bears. The indicator currently sits at -12.31%, lower than the long-term average of 6.39%. This illustrates that bearishness continues to dominate U.S. investor sentiment.
Image Source: YCharts
Despite the technical progress this year, investor positioning also remains significantly bearish. A recent Bank of America Global Fund Manager Survey from May illustrated that investors were the most underweight equities relative to bonds since the Great Financial Crisis. This survey looks at more than 600 money managers, and it is quite apparent that overall positioning is defensive as high levels of pessimism remain.
Remember, the crowd is usually wrong. The lack of respect for the market’s recovery will likely aid a continuation of the recent rally off the 2022 lows.
The Business of Apple
Apple is engaged in the designing, manufacturing and marketing of mobile communication and media devices, personal computers, and portable digital music players. Headquartered in Cupertino, California, Apple’s well-known products include the iPhone, iPad, Mac, and Apple TV, along with its software applications like iOS and the MAC OS X operating systems.
In addition to the sales generated from the devices mentioned above, Apple’s business contains a Services segment that includes revenues from cloud services, the App Store, Apple Music, AppleCare, Apple Pay, as well as other licensing services that have become a major cash cow. Apple currently has more than 935 million paid subscribers across the Services portfolio.
If that all wasn’t enough, Apple dominates the Wearables market, as consumers continue to adopt products like the AirPods and Apple Watch. Apple has made significant headway in this area, strengthening its presence in the personal health monitoring space. Other services include Apple News+, Apple Card, and Apple Arcade.
An increased focus on autonomous vehicles and augmented reality technologies presents a growth opportunity over the long-term. Apple is expected to ramp up its efforts with new offerings, and has clearly benefitted from the AI theme this year.
The Zacks Rundown
Apple is part of the Zacks Computer and Technology sector, which currently ranks in the top 50% of all Zacks Ranked sectors. Because it is ranked in the top half of all sectors, we expect this group to outperform the market over the next 3 to 6 months, just as it has year-to-date with a 31% return:
Image Source: Zacks Investment Research
Historical research studies suggest that approximately half of a stock’s price appreciation is due to its sector and industry group combination. In fact, the top 50% of Zacks Ranked Sectors outperforms the bottom 50% by a factor of more than 2 to 1.
By focusing on leading stocks within the top 50% of Zacks Ranked Sectors, we can dramatically improve our stock-picking success.
AAPL has exceeded earnings estimates in three of the past four quarters. The company most recently delivered fiscal second-quarter earnings back in May of $1.52/share, beating the $1.44 Zacks Consensus Estimate by 5.56%. Apple has posted a trailing four-quarter average earnings surprise of 2.65%.
Image Source: Zacks Investment Research
AAPL is currently a Zacks Rank #3 (Hold) stock. The tech giant is projected to see a slight decline in earnings and revenues this year relative to 2022.
The Zacks Consensus Estimate for Apple’s full-year earnings sits at $5.99/share, a -1.96% decline from last year. Sales of $384.49 billion would translate to a -2.5% drop. But given Apple’s history of beating estimates, it wouldn’t be too surprising if these figures ended up being a bit light.
What to Do Now
While Apple shares do appear to be a bit extended in the short-term, buying stocks when they make new highs has proven to be profitable throughout history. A stock eclipsing a previous high should be viewed as a sign of strength. Still, investors may consider waiting for a pullback before entering a new position, particularly if they have added other names recently.
But the market is telling us to expect the unexpected. A resilient U.S. consumer along with a bullish artificial intelligence theme has helped push tech stocks like AAPL back near previous highs. Make sure to keep an eye on this tech behemoth as the stock is now less than 1% away from a new all-time high.
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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.
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Apple Inc. (AAPL) : Free Stock Analysis Report
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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. | A resilient U.S. consumer along with a bullish artificial intelligence theme has helped push tech stocks like AAPL back near previous highs. After a series of higher highs and higher lows along with fresh 52-week highs, Apple AAPL shares have now soared back near all-time highs, as the tech giant has benefitted from strength in the large-cap tech space. AAPL has exceeded earnings estimates in three of the past four quarters. | After a series of higher highs and higher lows along with fresh 52-week highs, Apple AAPL shares have now soared back near all-time highs, as the tech giant has benefitted from strength in the large-cap tech space. Image Source: Zacks Investment Research AAPL is currently a Zacks Rank #3 (Hold) stock. A resilient U.S. consumer along with a bullish artificial intelligence theme has helped push tech stocks like AAPL back near previous highs. | After a series of higher highs and higher lows along with fresh 52-week highs, Apple AAPL shares have now soared back near all-time highs, as the tech giant has benefitted from strength in the large-cap tech space. AAPL has exceeded earnings estimates in three of the past four quarters. Image Source: Zacks Investment Research AAPL is currently a Zacks Rank #3 (Hold) stock. | After a series of higher highs and higher lows along with fresh 52-week highs, Apple AAPL shares have now soared back near all-time highs, as the tech giant has benefitted from strength in the large-cap tech space. AAPL has exceeded earnings estimates in three of the past four quarters. Image Source: Zacks Investment Research AAPL is currently a Zacks Rank #3 (Hold) stock. | 5 |
198 | 15,572 | 2023-06-01 00:00:00 UTC | Technology Sector Update for 06/01/2023: WLDS, AAPL, AMZN, IRBT, GOOG, CRM | AAPL | https://www.nasdaq.com/articles/technology-sector-update-for-06-01-2023%3A-wlds-aapl-amzn-irbt-goog-crm | null | null | Tech stocks rose Thursday with the Technology Select Sector SPDR Fund (XLK) gaining 1% and the Philadelphia Semiconductor index up 1.6%.
Wearable Devices (WLDS) said it kicked off commercial manufacturing of its Mudra band for Apple's (AAPL) watch. Wearable Devices shares rose 35%.
Amazon's (AMZN) $1.65 billion planned acquisition of iRobot (IRBT) is facing a preliminary EU merger review, with a July 6 deadline, according to the European Commission's website. Amazon shares rose 1.8%, while iRobot was up 9.3%.
Alphabet's (GOOG) Google invested in startup Runway, which lets users generate video from text descriptions through artificial intelligence, as part of a funding round of $100 million, The Information reported. Alphabet shares were up 0.8%.
Salesforce (CRM) reported an increase in Q1 profit and sales from the prior year's quarter that beat expectations. The software company issued guidance that suggested stagnant growth for the year, and the shares dropped 4.6%
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Wearable Devices (WLDS) said it kicked off commercial manufacturing of its Mudra band for Apple's (AAPL) watch. Tech stocks rose Thursday with the Technology Select Sector SPDR Fund (XLK) gaining 1% and the Philadelphia Semiconductor index up 1.6%. Amazon's (AMZN) $1.65 billion planned acquisition of iRobot (IRBT) is facing a preliminary EU merger review, with a July 6 deadline, according to the European Commission's website. | Wearable Devices (WLDS) said it kicked off commercial manufacturing of its Mudra band for Apple's (AAPL) watch. Wearable Devices shares rose 35%. Amazon shares rose 1.8%, while iRobot was up 9.3%. | Wearable Devices (WLDS) said it kicked off commercial manufacturing of its Mudra band for Apple's (AAPL) watch. Wearable Devices shares rose 35%. Alphabet's (GOOG) Google invested in startup Runway, which lets users generate video from text descriptions through artificial intelligence, as part of a funding round of $100 million, The Information reported. | Wearable Devices (WLDS) said it kicked off commercial manufacturing of its Mudra band for Apple's (AAPL) watch. Wearable Devices shares rose 35%. Amazon shares rose 1.8%, while iRobot was up 9.3%. | 5 |
199 | 15,591 | 2023-05-31 00:00:00 UTC | After Hours Most Active for May 31, 2023 : GRAB, CSCO, KO, MPW, ELAN, T, NWL, AAPL, CMCSA, INTC, VZ, NIO | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-may-31-2023-%3A-grab-csco-ko-mpw-elan-t-nwl-aapl-cmcsa-intc-vz | null | null | The NASDAQ 100 After Hours Indicator is down -8.32 to 14,245.77. The total After hours volume is currently 447,642,808 shares traded.
The following are the most active stocks for the after hours session:
Grab Holdings Limited (GRAB) is unchanged at $2.98, with 17,899,451 shares traded. As reported in the last short interest update the days to cover for GRAB is 7.466597; this calculation is based on the average trading volume of the stock.
Cisco Systems, Inc. (CSCO) is unchanged at $49.67, with 17,035,051 shares traded. Over the last four weeks they have had 9 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2023. The consensus EPS forecast is $0.95. CSCO's current last sale is 91.14% of the target price of $54.5.
Coca-Cola Company (The) (KO) is +0.06 at $59.72, with 16,500,273 shares traded. As reported by Zacks, the current mean recommendation for KO is in the "buy range".
Medical Properties Trust, Inc. (MPW) is -0.02 at $8.23, with 14,612,015 shares traded. MPW's current last sale is 68.58% of the target price of $12.
Elanco Animal Health Incorporated (ELAN) is +0.01 at $8.16, with 13,801,006 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 $0.31. ELAN's current last sale is 62.77% of the target price of $13.
AT&T Inc. (T) is unchanged at $15.73, with 12,536,635 shares traded. T's current last sale is 71.5% of the target price of $22.
Newell Brands Inc. (NWL) is unchanged at $8.31, with 12,115,526 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.47. , following a 52-week high recorded in today's regular session.
Apple Inc. (AAPL) is +0.15 at $177.40, with 11,306,587 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $1.18. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Comcast Corporation (CMCSA) is +0.09 at $39.44, with 10,973,652 shares traded. As reported by Zacks, the current mean recommendation for CMCSA is in the "buy range".
Intel Corporation (INTC) is -0.0097 at $31.43, with 10,115,661 shares traded. INTC's current last sale is 103.05% of the target price of $30.5.
Verizon Communications Inc. (VZ) is +0.01 at $35.64, with 9,922,406 shares traded. VZ's current last sale is 83.86% of the target price of $42.5.
NIO Inc. (NIO) is unchanged at $7.53, with 9,714,127 shares traded. NIO's current last sale is 57.92% of the target price of $13.
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 +0.15 at $177.40, with 11,306,587 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported in the last short interest update the days to cover for GRAB is 7.466597; this calculation is based on the average trading volume of the stock. | Apple Inc. (AAPL) is +0.15 at $177.40, with 11,306,587 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 447,642,808 shares traded. | Apple Inc. (AAPL) is +0.15 at $177.40, with 11,306,587 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 447,642,808 shares traded. | Apple Inc. (AAPL) is +0.15 at $177.40, with 11,306,587 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The following are the most active stocks for the after hours session: | 5 |
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