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500 | 19,939 | 2022-08-02 00:00:00 UTC | 1 Risk That Could Crush Meta Platforms Stock | AAPL | https://www.nasdaq.com/articles/1-risk-that-could-crush-meta-platforms-stock | null | null | Meta Platforms (NASDAQ: META), the owner of Facebook and Instagram, has dominated the social media landscape for over a decade.
Roughly half the world's population uses one of its apps at least monthly and it's one of the most profitable businesses in the world thanks to its strength in digital advertising.
However, with the stock down nearly 60% from its peak last September and the company just reporting its first-ever revenue decline from one quarter to the next (with another one expected in the third quarter), the Facebook parent looks more vulnerable than ever.
The company is facing multiple crises. Apple is cracking down on ad tracking, there's the sudden rise of TikTok, a macroeconomic downturn is causing a slowdown in ad spending, we have regulatory threats in Europe, Meta is reporting huge losses in the metaverse, the user base is maturing, and longtime Chief Operating Officer Sheryl Sandberg, who has been with the company for 14 years and built the advertising business into the behemoth it is today, is leaving the company. That's more than a handful of complications.
While each of those factors has played a role in the stock's collapse over the last year and its reversing revenue growth, one risk seems to be more pertinent than any other right now. That's the challenge from TikTok, which has forced Meta to reformulate its core apps like Facebook and Instagram around Reels, its short-form video product that is essentially a copycat of TikTok.
Can Reels beat TikTok?
The rapid rise of TikTok has upended the social media industry. The short-form video app reached 1 billion monthly active users nearly a year ago, earlier in its lifespan than either Facebook or Instagram. It has grabbed market share and advertising dollars from competitors like Meta, Snap, and YouTube.
Meta management doesn't often mention the China-based app by name, but it clearly views TikTok as a serious threat. In response to TikTok's rise, Meta has developed its own TikTok-like product, Reels, launching it on Instagram in 2020 and adding it to Facebook last year. Gradually, it's made Reels a bigger part of the experience on its apps, as it now makes up 20% of the time people spend on Instagram. However, there's a problem here.
Its users don't necessarily like Reels and may not want Instagram to become TikTok. In fact, Kylie Jenner and Kim Kardashian have led a backlash against the video product, sharing a post urging the company to "Make Instagram Instagram Again" rather than trying to be TikTok. Instagram did ditch some new products in response to the protest, including a full-screen video feature similar to what TikTok offers, but the company still expects Reels to become a greater part of both Facebook and Instagram.
Though Meta management is confident in the long-term success of Reels, it's not clear if it can beat TikTok at its own game. As Meta evolves to take on new competition, it also faces the classic innovator's dilemma, having to navigate the possibility of disrupting itself without hurting its highly profitable core business. Moreover, the Kardashian-led protest shows that morphing into TikTok carries its own risks, including losing the audience that likes the Facebook and Instagram products as they are now.
Will this tried-and-true tactic work again?
Meta seems confident in the Reels strategy in part because this same tactic worked against Snapchat. When Snapchat was gaining market share thanks to the success of Snapchat Stories, Meta simply copied Stories and offered it under a new name on Instagram and Facebook. The Snapchat threat was neutralized and Snap was forced to regroup after losing momentum.
However, TikTok is much bigger than Snapchat ever was, and the short-form video app is essentially all TikTok is, making it more difficult for Reels to beat it. Stories, on the other hand, was just one feature of Snapchat, so it wasn't the only reason people used that app. It won't be easy for Meta to out-TikTok TikTok, in other words, especially considering the disruptor's rapid growth and popularity.
Though Meta may need to evolve to keep its audience, the downside risk here seems greater than the upside potential. In a worst-case scenario, Meta stuffs Facebook and Instagram with Reels videos only to see its core audience balk at the changes, and engagement withers. In this scenario, it both loses the battle with TikTok and leaves its own user base feeling disenchanted.
In a best-case scenario, it neutralizes the TikTok threat and has a new product to feed its advertising machine, but even then the upside seems limited as Meta's user base appears to be reaching a ceiling -- it grew just 4% in the second quarter.
As Meta stock tries to recover its recent losses, the performance of Reels should be a key factor in the overall performance and trajectory of the business. If Reels can gain favor with users and advertisers, the Facebook parent should be able to return to full health. However, if TikTok continues to gain steam and the backlash against Reels persists, Meta could be in even more trouble than it is now.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Meta Platforms, Inc. and Snap Inc. The Motley Fool has positions in and recommends Apple and Meta Platforms, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple is cracking down on ad tracking, there's the sudden rise of TikTok, a macroeconomic downturn is causing a slowdown in ad spending, we have regulatory threats in Europe, Meta is reporting huge losses in the metaverse, the user base is maturing, and longtime Chief Operating Officer Sheryl Sandberg, who has been with the company for 14 years and built the advertising business into the behemoth it is today, is leaving the company. As Meta evolves to take on new competition, it also faces the classic innovator's dilemma, having to navigate the possibility of disrupting itself without hurting its highly profitable core business. In a best-case scenario, it neutralizes the TikTok threat and has a new product to feed its advertising machine, but even then the upside seems limited as Meta's user base appears to be reaching a ceiling -- it grew just 4% in the second quarter. | That's the challenge from TikTok, which has forced Meta to reformulate its core apps like Facebook and Instagram around Reels, its short-form video product that is essentially a copycat of TikTok. Instagram did ditch some new products in response to the protest, including a full-screen video feature similar to what TikTok offers, but the company still expects Reels to become a greater part of both Facebook and Instagram. When Snapchat was gaining market share thanks to the success of Snapchat Stories, Meta simply copied Stories and offered it under a new name on Instagram and Facebook. | Apple is cracking down on ad tracking, there's the sudden rise of TikTok, a macroeconomic downturn is causing a slowdown in ad spending, we have regulatory threats in Europe, Meta is reporting huge losses in the metaverse, the user base is maturing, and longtime Chief Operating Officer Sheryl Sandberg, who has been with the company for 14 years and built the advertising business into the behemoth it is today, is leaving the company. That's the challenge from TikTok, which has forced Meta to reformulate its core apps like Facebook and Instagram around Reels, its short-form video product that is essentially a copycat of TikTok. In response to TikTok's rise, Meta has developed its own TikTok-like product, Reels, launching it on Instagram in 2020 and adding it to Facebook last year. | Its users don't necessarily like Reels and may not want Instagram to become TikTok. Instagram did ditch some new products in response to the protest, including a full-screen video feature similar to what TikTok offers, but the company still expects Reels to become a greater part of both Facebook and Instagram. 10 stocks we like better than Meta Platforms, Inc. | null |
501 | 19,943 | 2022-08-01 00:00:00 UTC | Should Investors Worry About Apple's Slowing Services Business? | AAPL | https://www.nasdaq.com/articles/should-investors-worry-about-apples-slowing-services-business | null | null | Apple (NASDAQ:AAPL) published a better than expected set of Q3 FY’22 results, with Apple revenues coming in at $83 billion and earnings standing at $1.20 per share. However, the results mark a considerable slowdown compared to last year, with revenue growing by just 2% year-over-year with EPS also falling 7% versus the prior year due to rising operating expenses. There are multiple factors weighing on Apple’s financial performance, including the strong U.S. dollar and continuing supply chain issues, which Apple estimates hit revenue by $4 billion to $8 billion over the quarter. Moreover, the macroeconomic environment also remains tough, with U.S. GDP contracting over the last two quarters, and surging inflation eating into household budgets. Apple’s iPhone sales grew by just about 3% to $40.7 billion, and its services segment expanded by just about 12%, down from about 27% growth in the year-ago quarter, while marking the slowest quarter of growth in about six years. Apple’s iPad, Mac, and other product segments all saw revenue contract on a year-over-year basis. That said, Apple’s gross margins held up, coming in at 43.3%, roughly flat compared to last year.
Although the macro environment is likely to remain tough in the near term, Apple actually expects its year-over-year revenue growth to pick up during the September quarter versus June, as supply-related constraints are likely to ease. However, gross margins are expected to see some pressure, with the company projecting margins of between 41.5% and 42.5% due to continued currency headwinds and a weaker product mix. Apple also expects slower growth from its high-margin services business, as areas such as digital advertising see slower growth due to the economic slowdown. That said, we think this business should eventually pick up, as the economy improves and also considering that Apple is seeing a record number of people switching to its ecosystem from other platforms. Moreover, Apple has also grown its base of paid subscriptions considerably to 860 million , up 160 million over the last year and this should also drive services revenues going forward.
We are maintaining our $178 per share price estimate for Apple stock, which marks a premium of about 13% over the current market price. See our analysis on Apple Valuation: Is AAPL Stock Expensive Or Cheap? for an overview of what’s driving our price estimate for Apple.
With inflation rising and the Fed raising interest rates, Apple has fallen 11% this year. Can it drop more? See how low can Apple stock go by comparing its decline in previous market crashes. Here is a performance summary of all stocks in previous market crashes.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Jul 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
AAPL Return 15% -11% 443%
S&P 500 Return 8% -15% 82%
Trefis Multi-Strategy Portfolio 11% -14% 240%
[1] Month-to-date and year-to-date as of 7/29/2022
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
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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) published a better than expected set of Q3 FY’22 results, with Apple revenues coming in at $83 billion and earnings standing at $1.20 per share. See our analysis on Apple Valuation: Is AAPL Stock Expensive Or Cheap? Total [2] AAPL Return 15% -11% 443% S&P 500 Return 8% -15% 82% Trefis Multi-Strategy Portfolio 11% -14% 240% [1] Month-to-date and year-to-date as of 7/29/2022 [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. | Total [2] AAPL Return 15% -11% 443% S&P 500 Return 8% -15% 82% Trefis Multi-Strategy Portfolio 11% -14% 240% [1] Month-to-date and year-to-date as of 7/29/2022 [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. Apple (NASDAQ:AAPL) published a better than expected set of Q3 FY’22 results, with Apple revenues coming in at $83 billion and earnings standing at $1.20 per share. See our analysis on Apple Valuation: Is AAPL Stock Expensive Or Cheap? | Apple (NASDAQ:AAPL) published a better than expected set of Q3 FY’22 results, with Apple revenues coming in at $83 billion and earnings standing at $1.20 per share. Total [2] AAPL Return 15% -11% 443% S&P 500 Return 8% -15% 82% Trefis Multi-Strategy Portfolio 11% -14% 240% [1] Month-to-date and year-to-date as of 7/29/2022 [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. See our analysis on Apple Valuation: Is AAPL Stock Expensive Or Cheap? | Apple (NASDAQ:AAPL) published a better than expected set of Q3 FY’22 results, with Apple revenues coming in at $83 billion and earnings standing at $1.20 per share. See our analysis on Apple Valuation: Is AAPL Stock Expensive Or Cheap? Total [2] AAPL Return 15% -11% 443% S&P 500 Return 8% -15% 82% Trefis Multi-Strategy Portfolio 11% -14% 240% [1] Month-to-date and year-to-date as of 7/29/2022 [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. | null |
502 | 19,959 | 2022-07-31 00:00:00 UTC | These Metaverse Stocks Are Best Positioned to Outperform | AAPL | https://www.nasdaq.com/articles/these-metaverse-stocks-are-best-positioned-to-outperform | null | null | Virtual reality (VR), augmented reality (AR), the metaverse, and all the sorts have been intriguing technological trends that excited many investors last year. Though most of the hype has died down and valuations have contracted, such themes are not going anywhere. In fact, it may be wise to reconsider many of the fallen VR/AR stocks before they have a chance to heat up again.
Understandably, investors have soured on technology stocks, with rates poised to rise quickly. Inflation continues to linger, and a recession could easily curb demand for discretionary goods like mixed-reality headsets and all hardware needed to get into the metaverse.
Further, nobody is really sure when the metaverse will be ready for prime time. Mark Zuckerberg thinks the metaverse represents a multi-billion-dollar opportunity. He may very well be right. However, the timeline is less certain.
In an era of COVID-19 and Monkeypox, which was recently declared a global health emergency, the metaverse as Zuckerberg sees it may be closer than we think, as consumers look to stay in during periods when outbreaks are at a high point. Remote work isn't going anywhere, and the surge in at-home entertainment may very well be just beginning.
In this piece, we used TipRanks' Comparison Tool to evaluate three stock giants that could become dominant forces in a metaverse market that could hit $475 billion in 2028.
Nvidia (NVDA)
Nvidia is a hardware innovator that could lay down the foundation for the metaverse. The chipmaker has an incredibly expensive stock due to its front-row seat to many of the hottest tech trends, from AI to the metaverse.
The company's Omniverse real-time graphics platform is nothing short of exciting. The Omniverse Enterprise platform can help drive a revolution in automation. However, its applications could also help power the metaverses of tomorrow.
Further, the firm's cutting-edge graphical-processing units (GPUs) will experience a surge in demand once the metaverse is ready for prime time. Nvidia is already a video-gaming powerhouse, with many of today's popular gaming PCs sporting Nvidia hardware.
On the GPU front, Nvidia is a standout player that could continue to flex its muscles. Though shares are expensive, the magnitude of growth on the horizon could have the potential to be unfathomably high.
Despite the lofty price tag on shares, Nvidia still has the Street’s support; The stock has no fewer than 30 analyst reviews on record, and they break down 25 to 5 (or 5 to 1, if you prefer) in favor of the Buys over Holds, for a Strong Buy analyst consensus view. NVDA is currently priced at $181.63 and its $245.55 average price target indicates room for ~35% share appreciation from that level. (See NVDA stock forecast on TipRanks)
Apple (AAPL)
Next up, we have iPhone maker Apple, which has made significant strides in AR in recent years. Though only a select few apps make the most of the latest iPhone's AR capabilities, we could see a surge in developers leveraging Apple's powerful AR toolkit once Apple launches a headset.
All eyes are open to Apple's coming headset, rumored to include the powerful M2 chip and incredibly high-resolution screens. Simply put, the device will be expensive, perhaps pricier than an upscale iPhone.
Accompanying the headset will likely be a cutting-edge operating system (rumored to be called realityOS or rOS). It seems like Apple is using the same playbook (or launchpad) it used when launching the first iPhone. I think Apple's headset could be a game-changer that gradually erodes the smartphone market.
It's not just the visual aspect that Apple may have down. Apple's spatial audio could make the Apple mixed-reality experience that much more immersive. Undeniably, Apple's a force to be reckoned with in the audio department, with its hot-selling AirPods and Apple Music.
Apple is no stranger to cannibalizing its own products, and it could be ready to do it again in 2023.
Tech stocks tend to attract a lot of attention, especially Apple – the stock has 27 analyst reviews on record, and they include 20 Buys against 6 Holds and a single Sell, to give the company its Moderate Buy consensus rating. The shares have an average price target of $179.89, indicating room for 11% growth from the current price of $162.51. (See AAPL stock forecast on TipRanks)
Microsoft (MSFT)
Finally, we have software behemoth Microsoft, which could also make noise in the metaverse. Though Microsoft is best-known for enterprise software, the firm has steadily grown its share in the video-gaming market with its impressive Xbox console, Xbox Game Pass subscription service, and Xbox Cloud Gaming.
Microsoft's expertise in gaming and the cloud could help smoothen the firm's transition into the metaverse. Indeed, the metaverse may not be just for play but for work.
On that front, Microsoft's Teams Mesh product is an intriguing environment that could be the next step up from the conference calls that we're all too familiar with. A digital office environment would be more engaging and could bring back a lot of the presence lost with the transition to remote work.
Microsoft is a fine pick to play software within the metaverse. Gaming and workplace collaboration will be two of the biggest draws to the metaverse, and it's hard to find a company that's excelled in both fields as well as Microsoft.
What does the Street think? With 29 Buy ratings and no Holds or Sells, the message is clear: MSFT is a Strong Buy. The $331 average price target puts the upside potential at ~18%. (See MSFT stock forecast on TipRanks)
Bottom line
The metaverse will be a game-changing technology, but the transition will not happen overnight. It's a trend that could accompany sizeable rewards over the next 10-15 years. The three stocks mentioned, I believe, are among the best ways to play the technological shift. Of the three metaverse plays in this piece, Wall Street expects the most from Nvidia over the next year, with around 35% expected returns.
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. At the time of publication the writer did not have a position in any of the securities mentioned in this article.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (See NVDA stock forecast on TipRanks) Apple (AAPL) Next up, we have iPhone maker Apple, which has made significant strides in AR in recent years. (See AAPL stock forecast on TipRanks) Microsoft (MSFT) Finally, we have software behemoth Microsoft, which could also make noise in the metaverse. Inflation continues to linger, and a recession could easily curb demand for discretionary goods like mixed-reality headsets and all hardware needed to get into the metaverse. | (See NVDA stock forecast on TipRanks) Apple (AAPL) Next up, we have iPhone maker Apple, which has made significant strides in AR in recent years. (See AAPL stock forecast on TipRanks) Microsoft (MSFT) Finally, we have software behemoth Microsoft, which could also make noise in the metaverse. Further, the firm's cutting-edge graphical-processing units (GPUs) will experience a surge in demand once the metaverse is ready for prime time. | (See NVDA stock forecast on TipRanks) Apple (AAPL) Next up, we have iPhone maker Apple, which has made significant strides in AR in recent years. (See AAPL stock forecast on TipRanks) Microsoft (MSFT) Finally, we have software behemoth Microsoft, which could also make noise in the metaverse. Despite the lofty price tag on shares, Nvidia still has the Street’s support; The stock has no fewer than 30 analyst reviews on record, and they break down 25 to 5 (or 5 to 1, if you prefer) in favor of the Buys over Holds, for a Strong Buy analyst consensus view. | (See NVDA stock forecast on TipRanks) Apple (AAPL) Next up, we have iPhone maker Apple, which has made significant strides in AR in recent years. (See AAPL stock forecast on TipRanks) Microsoft (MSFT) Finally, we have software behemoth Microsoft, which could also make noise in the metaverse. Apple's spatial audio could make the Apple mixed-reality experience that much more immersive. | null |
503 | 19,961 | 2022-07-30 00:00:00 UTC | 2 Leading Tech Stocks to Buy in 2022 and Beyond | AAPL | https://www.nasdaq.com/articles/2-leading-tech-stocks-to-buy-in-2022-and-beyond-3 | null | null | Technology stocks have gone from being the best-performing sector of the past decade to one of the worst this year. The tech-heavy Nasdaq 100 gained 4,000% over the past 30 years but is down 26% in 2022. The other broad-based indexes aren't faring much better, either.
Yet despite the sector's miserable performance, smart investors see this as an opportunity to pick up shares of beaten-down good tech growth stocks that haven't been as affordable as they are today. The following pair of leading tech stocks are ones to buy this year and own in the years to come.
Image source: Getty Images.
Pinterest
Social sharing platform Pinterest (NYSE: PINS) has fallen hard over the past year because people rediscovered out-of-home activities during the pandemic lockdowns. When people were forced to be cooped up, they used Pinterest's virtual corkboard technology to pin ideas for sprucing up their homes or activities they could perform as a family. Once freedom of movement was permitted again, pinning ideas online became a back burner idea, and monthly active users decreased 9% to 433 million last quarter.
More recently, though, Pinterest is suffering from concerns about a recession causing a cutback in advertising, as well as Apple updating its privacy settings to allow users to opt out of being tracked by advertisers because almost all of its revenue comes from ads. Yet these could be overblown worries when it comes to Pinterest.
Snap, for example, got crushed the other day because its revenue growth slowed dramatically on slowing ad sales, but Pinterest is actually an advertiser's dream. Snap and other social media platforms are trying to shoehorn an ad-based model onto their apps, but Pinterest users are commonly looking for things to spend money on, so it melds perfectly with an advertising model.
Certainly, a recession will dent consumers' ability to shop, but this is a comparatively short-term concern at best. Global revenue per user still jumped 28% in the first quarter, showing Pinterest is still able to monetize its users. And after having lost over three-quarters of its value in the past year, the Pinterest stock is at a level that makes it attractive for investors with a long-term mindset and the patience to see it grow into an online e-commerce powerhouse.
Amazon
Amazon (NASDAQ: AMZN) has suffered the same meltdown in its stock as Pinterest has (the e-commerce giant is down "only" 37% in the last 12 months), even though its growth seems assured. The recent two-day Prime Day sales event resulted in $12 billion in global sales, a new record, and on a sales-per-day basis, it far exceeded JD.com's three-week-long 618 sales extravaganza. While JD racked up over $56 billion in sales, that works out to less than $2 billion a day. Amazon generated over $6 billion a day for its event.
Yet that's not even the exciting part about Amazon, because its cloud services business Amazon Web Services remains the fastest-growing part of its operations and is still the most profitable. Revenue in the segment jumped 37% last year, hitting $62 billion, and rose by a like percentage in the first quarter.
Amazon is further expanding AWS's capabilities for leading-edge technologies such as streaming video, online gaming, and augmented and virtual reality by creating "local zones" that bring the storage and database infrastructure closer to the customer. Doing so allows for split-second data travel times, which increases efficiency.
Amazon recently completed its 20-for-1 stock split, bringing the stock down to an accessible $114 per share. Although shares still go for 45 times next year's earnings estimates, Wall Street still expects the company to be growing profits at a 33% compound annual rate for the next five years, making Amazon a growth tech stock in every sense of the word and one to buy and hold for years to come.
10 stocks we like better than Pinterest
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, JD.com, and Pinterest. The Motley Fool recommends Nasdaq and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Yet despite the sector's miserable performance, smart investors see this as an opportunity to pick up shares of beaten-down good tech growth stocks that haven't been as affordable as they are today. And after having lost over three-quarters of its value in the past year, the Pinterest stock is at a level that makes it attractive for investors with a long-term mindset and the patience to see it grow into an online e-commerce powerhouse. Amazon is further expanding AWS's capabilities for leading-edge technologies such as streaming video, online gaming, and augmented and virtual reality by creating "local zones" that bring the storage and database infrastructure closer to the customer. | Pinterest Social sharing platform Pinterest (NYSE: PINS) has fallen hard over the past year because people rediscovered out-of-home activities during the pandemic lockdowns. Snap, for example, got crushed the other day because its revenue growth slowed dramatically on slowing ad sales, but Pinterest is actually an advertiser's dream. Although shares still go for 45 times next year's earnings estimates, Wall Street still expects the company to be growing profits at a 33% compound annual rate for the next five years, making Amazon a growth tech stock in every sense of the word and one to buy and hold for years to come. | Amazon Amazon (NASDAQ: AMZN) has suffered the same meltdown in its stock as Pinterest has (the e-commerce giant is down "only" 37% in the last 12 months), even though its growth seems assured. Although shares still go for 45 times next year's earnings estimates, Wall Street still expects the company to be growing profits at a 33% compound annual rate for the next five years, making Amazon a growth tech stock in every sense of the word and one to buy and hold for years to come. See the 10 stocks *Stock Advisor returns as of June 2, 2022 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. | More recently, though, Pinterest is suffering from concerns about a recession causing a cutback in advertising, as well as Apple updating its privacy settings to allow users to opt out of being tracked by advertisers because almost all of its revenue comes from ads. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Amazon, Apple, JD.com, and Pinterest. | null |
504 | 19,976 | 2022-07-29 00:00:00 UTC | Dollar snares U.S. firms in $4 trln endurance test | AAPL | https://www.nasdaq.com/articles/dollar-snares-u.s.-firms-in-%244-trln-endurance-test | null | null | Reuters
Reuters
NEW YORK (Reuters Breakingviews) - The strong dollar is becoming a test of nerves for global companies. From drugmaker Pfizer to iPhone peddler Apple and crafty online marketplace Etsy, executives say the U.S. currency’s rise to levels not seen in nearly 20 years is cutting into their profit. Some dismal earnings could lie ahead for firms that sell U.S. goods overseas. But weigh up the pros and cons, and the Teflon dollar is still in America’s interest.
The dollar has strengthened more than 15% in a year against an index that includes the yen, pound, Canadian dollar, euro, Swiss franc and Swedish crown – the fastest rate of increase since 2015. For one, the Federal Reserve’s aggressive interest rate hikes, including Wednesday’s 75-basis-point increase, have made holding dollar investments more appealing. And when investors fear global disease or war, as they do now, they tend to seek deep, liquid markets. For those, the United States remains nonpareil.
The soaring greenback that results is great for U.S. holidaymakers abroad, but a pain in the neck for American companies with foreign cash flows. Around 30% of the revenue of S&P 500 Index firms comes from outside of the United States according to Morgan Stanley. That’s equivalent to around $4 trillion, based on Refinitiv estimates for this year. Earnings estimates tend to fall as the dollar works its way upwards.
Too much strength for too long could be a problem. Companies that rely on earnings overseas have less to invest once they get the spoils back home. They also have an incentive to relocate production to cheaper countries. That, though, seems less of a risk when part of the dollar’s outperformance comes from abundant risks elsewhere. The euro’s fall reflects not an investment opportunity but a region in turmoil, partly because of soaring energy costs.
That makes the strong dollar mostly a stock-market problem for now. Federal Reserve chief Jay Powell, for example, is unfazed by falling equity markets. President Joe Biden has remained quiet on the currency question, while Treasury Secretary Janet Yellen says the rising dollar is “understandable.” A tendency not to meddle in currency markets, and a historical White House preference for a strong dollar, is another reason the United States retains its global investment appeal.
In any case, what companies lose today, they are likely to regain tomorrow. Markets are already pricing in rate cuts https://www.atlantafed.org/cenfis/market-probability-tracker in early 2023, suggesting a belief inflation will be under control by then. When that happens, investors are likely to regain their taste for risk and buy back into equities. Companies now singing the strong-dollar blues may change their tune before long.
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CONTEXT NEWS
The U.S dollar has strengthened 15% over the past year against a basket of trading-partner currencies, as of July 29. The U.S. dollar index tracks the currency against the euro, yen, British pound, Canadian dollar, Swedish crown and Swiss franc.
The annual pace of change of the dollar over the period since April is the fastest rise since September 2015, according to Datastream.
Many global companies have warned that currency moves will eat into their revenue and profit. Apple said on July 29 that foreign exchange wiped 300 basis points off its revenue for the quarter ending in June.
Drugmaker Pfizer warned a day earlier that the strengthening dollar would reduce its revenue for the year by around $2 billion. And Etsy, the online marketplace, told analysts on July 27 that currency moves would shave “several percentage points” from the value of goods sold on its platforms.
(Editing by Lauren Silva Laughlin and Amanda Gomez)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | From drugmaker Pfizer to iPhone peddler Apple and crafty online marketplace Etsy, executives say the U.S. currency’s rise to levels not seen in nearly 20 years is cutting into their profit. For one, the Federal Reserve’s aggressive interest rate hikes, including Wednesday’s 75-basis-point increase, have made holding dollar investments more appealing. And Etsy, the online marketplace, told analysts on July 27 that currency moves would shave “several percentage points” from the value of goods sold on its platforms. | The dollar has strengthened more than 15% in a year against an index that includes the yen, pound, Canadian dollar, euro, Swiss franc and Swedish crown – the fastest rate of increase since 2015. For one, the Federal Reserve’s aggressive interest rate hikes, including Wednesday’s 75-basis-point increase, have made holding dollar investments more appealing. The U.S. dollar index tracks the currency against the euro, yen, British pound, Canadian dollar, Swedish crown and Swiss franc. | The dollar has strengthened more than 15% in a year against an index that includes the yen, pound, Canadian dollar, euro, Swiss franc and Swedish crown – the fastest rate of increase since 2015. President Joe Biden has remained quiet on the currency question, while Treasury Secretary Janet Yellen says the rising dollar is “understandable.” A tendency not to meddle in currency markets, and a historical White House preference for a strong dollar, is another reason the United States retains its global investment appeal. The U.S. dollar index tracks the currency against the euro, yen, British pound, Canadian dollar, Swedish crown and Swiss franc. | The dollar has strengthened more than 15% in a year against an index that includes the yen, pound, Canadian dollar, euro, Swiss franc and Swedish crown – the fastest rate of increase since 2015. Earnings estimates tend to fall as the dollar works its way upwards. When that happens, investors are likely to regain their taste for risk and buy back into equities. | null |
505 | 20,011 | 2022-07-28 00:00:00 UTC | Google blocks Krafton's battle-royale game in India, citing government ban | AAPL | https://www.nasdaq.com/articles/google-blocks-kraftons-battle-royale-game-in-india-citing-government-ban | null | null | Adds details on ban order, context
NEW DELHI, July 28 (Reuters) - Alphabet Inc's GOOGL.O Google on Thursday blocked access to a popular battle-royale format game from South Korean developer Krafton 259960.KS, citing an order from the Indian government.
In a statement, the U.S. technology giant said the Indian government had ordered the Battlegrounds Mobile India (BGMI) game be blocked, forcing it to remove the app from its Play Store.
According to the game's website, it had more than 100 million users in India. The block comes after another Krafton title, PlayerUnknown's Battlegrounds (PUBG), was banned in India in 2020.
"On receipt of the order, following established process, we have notified the affected developer and have blocked access to the app," a Google spokesperson said.
BGMI was also unavailable on Apple Inc's AAPL.O App Store on Thursday evening in India.
The reason for blocking the game was not immediately clear.
Krafton, local representatives of Apple and India's IT ministry did not immediately respond to requests for comment outside regular business hours.
A source with direct knowledge of the matter said Google had received the government take down order in the last 24 hours.
Indian authorities cited security risks when banning PUBG but the move was widely seen as fallout from deteriorating India-China business ties. At the time, China's Tencent held the publishing rights for PUBG in India.
The crackdown was part of a broader ban of more than 100 Chinese-origin mobile apps by New Delhi, following a months-long border standoff between the nuclear-armed rivals.
Since then, the ban has been expanded to more than 300 apps.
(Reporting by Munsif Vengattil and Aditya Kalra in New Delhi; Additional reporting by Nupur Anand; Editing by David Evans, Kirsten Donovan)
((Nupur.Anand@thomsonreuters.com; +9122 68414388;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | BGMI was also unavailable on Apple Inc's AAPL.O App Store on Thursday evening in India. In a statement, the U.S. technology giant said the Indian government had ordered the Battlegrounds Mobile India (BGMI) game be blocked, forcing it to remove the app from its Play Store. Indian authorities cited security risks when banning PUBG but the move was widely seen as fallout from deteriorating India-China business ties. | BGMI was also unavailable on Apple Inc's AAPL.O App Store on Thursday evening in India. Adds details on ban order, context NEW DELHI, July 28 (Reuters) - Alphabet Inc's GOOGL.O Google on Thursday blocked access to a popular battle-royale format game from South Korean developer Krafton 259960.KS, citing an order from the Indian government. In a statement, the U.S. technology giant said the Indian government had ordered the Battlegrounds Mobile India (BGMI) game be blocked, forcing it to remove the app from its Play Store. | BGMI was also unavailable on Apple Inc's AAPL.O App Store on Thursday evening in India. Adds details on ban order, context NEW DELHI, July 28 (Reuters) - Alphabet Inc's GOOGL.O Google on Thursday blocked access to a popular battle-royale format game from South Korean developer Krafton 259960.KS, citing an order from the Indian government. In a statement, the U.S. technology giant said the Indian government had ordered the Battlegrounds Mobile India (BGMI) game be blocked, forcing it to remove the app from its Play Store. | BGMI was also unavailable on Apple Inc's AAPL.O App Store on Thursday evening in India. Adds details on ban order, context NEW DELHI, July 28 (Reuters) - Alphabet Inc's GOOGL.O Google on Thursday blocked access to a popular battle-royale format game from South Korean developer Krafton 259960.KS, citing an order from the Indian government. In a statement, the U.S. technology giant said the Indian government had ordered the Battlegrounds Mobile India (BGMI) game be blocked, forcing it to remove the app from its Play Store. | 2 |
506 | 20,041 | 2022-07-27 00:00:00 UTC | Wall St rises on Microsoft, Alphabet earnings as Fed decision looms | AAPL | https://www.nasdaq.com/articles/wall-st-rises-on-microsoft-alphabet-earnings-as-fed-decision-looms | null | null | By Shreyashi Sanyal and Aniruddha Ghosh
July 27 (Reuters) - The tech-heavy Nasdaq surged nearly 3% on Wednesday, leading Wall Street's main indexes higher, as upbeat quarterly reports from Microsoft and Alphabet lifted sentiment ahead of a key U.S. interest rate decision later in the day.
Investors widely expect the U.S. central bank to increase interest rates by another 75 basis points later on Wednesday, with focus likely to shift to how deeply signs of an economic slowdown have registered with its policymakers.
Money market traders were even betting on a one-in-four chance that the Fed would surprise markets with a larger 1-percentage-point increase, as per CME Group's Fedwatch tool.
The decision is due at 2:00 pm ET (1800 GMT) followed by a news conference by the Federal Reserve Chair Jerome Powell half an hour later, where he is likely to elaborate on how the central bank views the recent economic environment.
"There's a balancing act that has to take place, if they do too much or too little, it's going to hurt, so they're in a tough position," Andre Bakhos, managing director at New Vines Capital said.
"The key is how it is said and how they give color about what's out there in the world, from the Fed's eyes."
Microsoft Corp MSFT.O climbed 5% after it forecast double-digit growth in revenue this fiscal year on demand for cloud computing services.
Alphabet Inc GOOGL.O added 7.3% as better-than-expected sales of Google search ads eased worries about a slowing ad market.
The S&P 500 communication services index .SPLRCL added 4.3%, rising for the first time in five days and led sectoral gains. Tech stocks .SPLRCT rose 3%.
The results sparked a rally in high-growth stocks.
Meta Platforms Inc META.O added 5.5% ahead of its quarterly report after markets close, while shares of Apple Inc AAPL.O rose 1.7% and those of Amazon.com Inc AMZN.O gained 4.4% before their results on Thursday.
Megacap growth stocks have been hammered this year as the Federal Reserve raised interest rates aggressively to tame decades-high inflation. Future cash flows on which valuation of these companies rests are discounted heavily when rates rise.
At 12:37 p.m. ET, the Dow Jones Industrial Average .DJI was up 123.91 points, or 0.39%, at 31,885.45, the S&P 500 .SPX was up 57.50 points, or 1.47%, at 3,978.55, and the Nasdaq Composite .IXIC was up 314.00 points, or 2.72%, at 11,876.57.
PayPal Holdings Inc PYPL.O jumped 11.4% after a report said activist investor Elliott Investment Management was building a stake in the fintech giant.
T-Mobile US Inc TMUS.O added 4.1% after it raised its subscriber growth forecast for the second time this year and exceeded quarterly profit expectations.
Advancing issues outnumbered decliners by a 2.77-to-1 ratio on the NYSE and by a 2.11-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and 30 new lows, while the Nasdaq recorded 39 new highs and 78 new lows.
(Reporting by Shreyashi Sanyal, Sruthi Shankar and Aniruddha Ghosh in Bengaluru; Editing by Sriraj Kalluvila and Anil D'Silva)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; 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. | Meta Platforms Inc META.O added 5.5% ahead of its quarterly report after markets close, while shares of Apple Inc AAPL.O rose 1.7% and those of Amazon.com Inc AMZN.O gained 4.4% before their results on Thursday. By Shreyashi Sanyal and Aniruddha Ghosh July 27 (Reuters) - The tech-heavy Nasdaq surged nearly 3% on Wednesday, leading Wall Street's main indexes higher, as upbeat quarterly reports from Microsoft and Alphabet lifted sentiment ahead of a key U.S. interest rate decision later in the day. Investors widely expect the U.S. central bank to increase interest rates by another 75 basis points later on Wednesday, with focus likely to shift to how deeply signs of an economic slowdown have registered with its policymakers. | Meta Platforms Inc META.O added 5.5% ahead of its quarterly report after markets close, while shares of Apple Inc AAPL.O rose 1.7% and those of Amazon.com Inc AMZN.O gained 4.4% before their results on Thursday. By Shreyashi Sanyal and Aniruddha Ghosh July 27 (Reuters) - The tech-heavy Nasdaq surged nearly 3% on Wednesday, leading Wall Street's main indexes higher, as upbeat quarterly reports from Microsoft and Alphabet lifted sentiment ahead of a key U.S. interest rate decision later in the day. Investors widely expect the U.S. central bank to increase interest rates by another 75 basis points later on Wednesday, with focus likely to shift to how deeply signs of an economic slowdown have registered with its policymakers. | Meta Platforms Inc META.O added 5.5% ahead of its quarterly report after markets close, while shares of Apple Inc AAPL.O rose 1.7% and those of Amazon.com Inc AMZN.O gained 4.4% before their results on Thursday. By Shreyashi Sanyal and Aniruddha Ghosh July 27 (Reuters) - The tech-heavy Nasdaq surged nearly 3% on Wednesday, leading Wall Street's main indexes higher, as upbeat quarterly reports from Microsoft and Alphabet lifted sentiment ahead of a key U.S. interest rate decision later in the day. (Reporting by Shreyashi Sanyal, Sruthi Shankar and Aniruddha Ghosh in Bengaluru; Editing by Sriraj Kalluvila and Anil D'Silva) ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; 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. | Meta Platforms Inc META.O added 5.5% ahead of its quarterly report after markets close, while shares of Apple Inc AAPL.O rose 1.7% and those of Amazon.com Inc AMZN.O gained 4.4% before their results on Thursday. Investors widely expect the U.S. central bank to increase interest rates by another 75 basis points later on Wednesday, with focus likely to shift to how deeply signs of an economic slowdown have registered with its policymakers. T-Mobile US Inc TMUS.O added 4.1% after it raised its subscriber growth forecast for the second time this year and exceeded quarterly profit expectations. | 1 |
507 | 20,071 | 2022-07-26 00:00:00 UTC | ETFs in Focus Ahead of Big Tech Q2 Earnings | AAPL | https://www.nasdaq.com/articles/etfs-in-focus-ahead-of-big-tech-q2-earnings | null | null | We are in the peak of the second-quarter earnings season and tech giants are in the spotlight this week. The five biggest tech players — Apple AAPL, Amazon AMZN, Meta Platforms META, Alphabet GOOGL and Microsoft MSFT — set to report.
These five companies currently account for about 23% of the total market capitalization of the S&P 500 Index. Total Q2 earnings from the group of five companies are expected to be down 19.1% on revenue growth of 6.2%. This reflects a deceleration from the Q1 earnings decline of 8.4% and revenue growth of 11.4%. Being the undisputed leaders in the digital ad space, Alphabet and Meta will likely see a decline in advertising spending as the aggressive Fed tightening cycle takes effect.
The technology sector, which had been the hardest hit by soaring yields and a hawkish Fed, has shown some strength lately (read: Could a Sustained Tech ETF Rally Be in the Cards?).
Both Microsoft and Alphabet are scheduled to release their earnings on Jul 26, while Meta Platforms and Apple will report on Jul 27 and Jul 28, respectively. Amazon is also slated to report on Jul 28.
Microsoft
Microsoft has a Zacks Rank #3 (Hold) and an Earnings ESP of +0.47%. According to our methodology, 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Zacks Consensus Estimate indicates substantial earnings growth of 5.1% and revenue growth of 13.4% from the year-ago quarter. Microsoft’s earnings track is impressive, with the last four-quarter earnings surprise being 8.63%, on average. However, the stock witnessed negative earnings estimate revision of a penny for the to-be-reported quarter over the past seven days. Analysts decreasing estimates right before earnings — with the most up-to-date information possible — is not a good indicator for the stock. Microsoft belongs to a bottom-ranked Zacks industry (bottom 49%) and has lost about 8.6% over the past three months (see: all the Technology ETFs here).
Alphabet
Alphabet has a Zacks Rank #3 and an Earnings ESP of -0.03%. It saw a negative earnings estimate revision of a couple of cents over the past seven days for the to-be-reported quarter. The company’s earnings surprise track over the past four quarters is good, with the beat being 17.21%, on average. Earnings are expected to decline 5.9%, while revenues are expected to grow 13.2% from the year-ago quarter. Alphabet falls under a bottom-ranked Zacks industry (bottom 39%). The Internet behemoth has shed about 6% in the past three months.
Meta Platforms
Meta Platforms has a Zacks Rank #4 and an Earnings ESP of -4.26%. The social media giant saw a negative earnings estimate revision of 6 cents for the to-be-reported quarter over the past 30 days. The current Zacks Consensus Estimate for the yet-to-be reported quarter indicates a substantial year-over-year earnings decline of 30.5%. Revenues are expected to decrease a modest 0.9%. Meta Platforms delivered an earnings surprise of 5.99%, on average, in the last four quarters. The stock belongs to a bottom-ranked Zacks industry (bottom 46%). Shares of META have lost about 5% in the past three months.
Apple
Apple has a Zacks Rank #3 and an Earnings ESP of +0.88%. The stock saw no earnings estimate revision over the past 30 days for third-quarter fiscal 2022, and its earnings surprise history is strong. It delivered an earnings surprise of 11.85%, on average, over the past four quarters. Though Apple is expected to report a substantial earnings decline of 13.1% from the year-ago quarter, revenues are expected to increase 0.53% year over year. It belongs to a top-ranked Zacks industry (top 38%). The stock is down 2.3% in the past three-month timeframe.
Amazon
Amazon has a Zacks Rank #3 and an Earnings ESP of +34.09%. The stock saw a positive earnings estimate revision of a penny over the past 30 days for the second quarter. The Zacks Consensus Estimate represents a substantial year-over-year earnings decline of 80.3% and revenue growth of 5.9%. Amazon’s earnings surprise history is impressive, with an average beat of 138.98% for the last four quarters. The stock falls under a top-ranked Zacks industry (top 38%). The online e-commerce behemoth has witnessed a share price decrease of 12.4% in the past three months.
ETFs to Tap
Given this, investors may want to play these stocks with the help of ETFs. Below, we have highlighted six ETFs having the largest exposure to these tech giants.
MicroSectors FANG+ ETN FNGS: This ETN is linked to the performance of the NYSE FANG+ Index, which is equal-dollar weighted and designed to provide exposure to a group of highly traded growth stocks of next-generation technology and tech-enabled companies. The note accounts for a 10% share in each of the FAANG stocks and has a Zacks ETF Rank #3 (read: Tesla Mixed Q2 Earnings Put These ETFs in Focus).
Blue Chip Growth ETF TCHP: This fund focuses on companies with leading market positions, seasoned management and strong financial fundamentals. It accounts for a combined 46.7% in the five firms.
Vanguard Mega Cap Growth ETF MGK: This ETF offers exposure to the largest growth stocks in the U.S. market and has a Zacks ETF Rank #2. The five firms account for a combined 43.2% share in the basket.
iShares Evolved U.S. Technology ETF IETC: This fund employs data science techniques to identify companies with exposure to the technology sector. The five firms account for a combined 41.9% share in the basket.
Invesco QQQ QQQ: This ETF focuses on 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. This fund makes up for 36.5% share in the in-focus firms and has a Zacks ETF Rank #3 with a Medium risk outlook.
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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 five biggest tech players — Apple AAPL, Amazon AMZN, Meta Platforms META, Alphabet GOOGL and Microsoft MSFT — set to report. Apple Inc. (AAPL): Free Stock Analysis Report Being the undisputed leaders in the digital ad space, Alphabet and Meta will likely see a decline in advertising spending as the aggressive Fed tightening cycle takes effect. | The five biggest tech players — Apple AAPL, Amazon AMZN, Meta Platforms META, Alphabet GOOGL and Microsoft MSFT — set to report. Apple Inc. (AAPL): Free Stock Analysis Report Vanguard Mega Cap Growth ETF MGK: This ETF offers exposure to the largest growth stocks in the U.S. market and has a Zacks ETF Rank #2. | The five biggest tech players — Apple AAPL, Amazon AMZN, Meta Platforms META, Alphabet GOOGL and Microsoft MSFT — set to report. Apple Inc. (AAPL): Free Stock Analysis Report The stock saw no earnings estimate revision over the past 30 days for third-quarter fiscal 2022, and its earnings surprise history is strong. | The five biggest tech players — Apple AAPL, Amazon AMZN, Meta Platforms META, Alphabet GOOGL and Microsoft MSFT — set to report. Apple Inc. (AAPL): Free Stock Analysis Report Microsoft belongs to a bottom-ranked Zacks industry (bottom 49%) and has lost about 8.6% over the past three months (see: all the Technology ETFs here). | 3 |
508 | 20,108 | 2022-07-25 00:00:00 UTC | GLOBAL MARKETS-Asian stocks slip with bond yields on recession fears before Fed | AAPL | https://www.nasdaq.com/articles/global-markets-asian-stocks-slip-with-bond-yields-on-recession-fears-before-fed | null | null | By Kevin Buckland
TOKYO, July 25 (Reuters) - Asian stocks lost ground on Monday, retreating from over three-week highs as worries about a global economic downturn sapped investors' risk appetite.
Bond yields eased amid bets that an expected U.S. recession would slow the Federal Reserve's aggressive tightening campaign, with markets looking for policy clues from its two-day Federal Open Market Committee meeting which begins on Tuesday.
At the same time, the dollar built on its recovery from a 2-1/2-week low against major peers, supported by demand for the U.S. currency as a safe haven.
"Risk markets are obviously priced for some kind of slowdown, but are they priced for an outright recession? I would argue no," said Ray Attrill, head of currency strategy at National Australia Bank.
"In that sense, it's hard to say we've reached a bottom as far as risk sentiment is concerned."
Japan's Nikkei .N225 retreated 0.75%, while Chinese blue chips .CSI300 lost 0.82%.
Hong Kong's Hang Seng .HSI slid 0.75%, with its tech index .HSTECH tumbling 1.96%.
MSCI's broadest index of Asia-Pacific shares .MIAP00000PUS lost 0.54% to 158.80, after touching the highest since June 29 at 160.03 on Friday.
U.S. S&P 500 emini futures EXcv1 slipped 0.08%, pointing to an extension of the benchmark's .SPX 0.93% slump on Friday, when a survey showed business activity contracting for the first time in nearly two years amid persistently heated inflation and rapidly rising interest rates.
Earlier that day, data also showed euro zone business activity unexpectedly shrank.
Nasdaq futures NQc1 were about flat, following a 1.77% tumble for the tech-heavy stock index, as the bottom dropped out from under Snap Inc SNAP.N after the Snapchat owner posted its weakest-ever sales growth. .N
Investors are on guard this week for how much a strong dollar will hurt financial results from heavyweights Apple AAPL.O and Microsoft MSFT.O, among others.
In Europe, EURO STOXX 50 index futures STXEc1 pointed 0.61% lower, and FTSE futures FFIc1 slid 0.52%.
The dollar index - which measures the safe-haven currency against six major peers - was little changed at 106.64, after climbing off a 2-1/2-week low of 106.10 reached Friday.
The greenback added 0.11% to 136.235 yen JPY=EBS, while the euro EUR=EBS slipped 0.04% to $1.02075.
The 10-year U.S. Treasury yield US10YT=RR was little changed at 2.785% after sliding from as high as 3.083% over the previous two sessions.
Equivalent Japanese government bond yields JP10YTN=JBTC dropped to the lowest since March 10 at 0.18%, and Australian yields AU10YT=RR dipped to the lowest since May 31 at 3.285%.
The Fed concludes a two-day meeting on Wednesday and markets are priced for a 75 basis-point rate hike, with about a 9% chance of a full one percentage-point increase. FEDWATCH
Crude oil fell on concern that higher U.S. rates would limit fuel demand growth.
Brent crude LCOc1 futures for September settlement dropped 48 cents, or 0.5%, to $102.72 a barrel and U.S. West Texas Intermediate (WTI) crude CLc1 futures for September delivery fell 65 cents, or 0.7%, to $94.05 a barrel, both down for a fourth day.
Gold XAU= was steady at $1,725.17 per ounce, getting support from lower bond yields.
Bullion could push through resistance at around $1,770 if the Fed delivers a "dovish hike" on Wednesday, meaning forward guidance for a slowing in the pace of hikes for the remainder of the year, Chris Weston, head of research at brokerage Pepperstone, wrote in a client note.
"The yellow rock works in this backdrop where traders are questioning if the USD is our default hedge against equity drawdown," Weston said.
"I am warming to gold."
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Global asset performancehttp://tmsnrt.rs/2yaDPgn
Asian stock marketshttps://tmsnrt.rs/2zpUAr4
(Reporting by Kevin Buckland; Editing by Shri Navaratnam and Sonali Desai)
((Kevin.Buckland@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. | .N Investors are on guard this week for how much a strong dollar will hurt financial results from heavyweights Apple AAPL.O and Microsoft MSFT.O, among others. By Kevin Buckland TOKYO, July 25 (Reuters) - Asian stocks lost ground on Monday, retreating from over three-week highs as worries about a global economic downturn sapped investors' risk appetite. U.S. S&P 500 emini futures EXcv1 slipped 0.08%, pointing to an extension of the benchmark's .SPX 0.93% slump on Friday, when a survey showed business activity contracting for the first time in nearly two years amid persistently heated inflation and rapidly rising interest rates. | .N Investors are on guard this week for how much a strong dollar will hurt financial results from heavyweights Apple AAPL.O and Microsoft MSFT.O, among others. At the same time, the dollar built on its recovery from a 2-1/2-week low against major peers, supported by demand for the U.S. currency as a safe haven. In Europe, EURO STOXX 50 index futures STXEc1 pointed 0.61% lower, and FTSE futures FFIc1 slid 0.52%. | .N Investors are on guard this week for how much a strong dollar will hurt financial results from heavyweights Apple AAPL.O and Microsoft MSFT.O, among others. Bond yields eased amid bets that an expected U.S. recession would slow the Federal Reserve's aggressive tightening campaign, with markets looking for policy clues from its two-day Federal Open Market Committee meeting which begins on Tuesday. U.S. S&P 500 emini futures EXcv1 slipped 0.08%, pointing to an extension of the benchmark's .SPX 0.93% slump on Friday, when a survey showed business activity contracting for the first time in nearly two years amid persistently heated inflation and rapidly rising interest rates. | .N Investors are on guard this week for how much a strong dollar will hurt financial results from heavyweights Apple AAPL.O and Microsoft MSFT.O, among others. In Europe, EURO STOXX 50 index futures STXEc1 pointed 0.61% lower, and FTSE futures FFIc1 slid 0.52%. The dollar index - which measures the safe-haven currency against six major peers - was little changed at 106.64, after climbing off a 2-1/2-week low of 106.10 reached Friday. | 2 |
509 | 20,116 | 2022-07-24 00:00:00 UTC | Weekly Preview: Earnings To Watch Week of July 24 (AAPL, AMZN, GOOG, META, MSFT) | AAPL | https://www.nasdaq.com/articles/weekly-preview%3A-earnings-to-watch-week-of-july-24-aapl-amzn-goog-meta-msft | null | null | H
as all of the bad news been priced into the market? Have stocks finally reached bottom? Although stocks didn’t close out Friday on a strong note, I think we are starting to see signs that suggest “yes” is the answer for both questions. The trading action this past week showed an aggressive return to not only to risk assets in general, but also to the high-growth names which were beaten up amid recession fears.
Evidenced by this week's continued resurgence in stocks, and the fresh batch of corporate earnings, investors are seemingly more confident that the upcoming earnings results from the most-influential companies in the S&P 500 will be “less bad” than initial expected, particularly in tech stocks. Roughly 21% of S&P 500 companies have reported earnings so far. Out of that total, about 70% have beaten analyst expectations. Investors nonetheless opted to lock in some profits on Friday.
The Dow Jones Industrial Average fell Friday, giving up 137.61 points, or 0.43%, to end Friday's session at 31,773.98. Among the Dow’s notable decliners were Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Walt Disney (DIS). The S&P 500 lost 37.32 points, or 0.93%, finishing at 3,961.63, while the tech-heavy Nasdaq Composite dropped 225.5 points, or 1.87%, to close at 11,834.11. The Nasdaq was pressured by, among others, the 8.7% drop in shares of Roku (ROKU) and the 7.6% drop in Meta Platforms (META).
Despite Friday’s pullback, all three major averages ended with strong weekly gains. Leading the way was the tech-heavy Nasdaq Composite which closed out the week with a gain of 3.4%. The index on Thursday had posted its third straight positive session, driven by positive earnings results from Tesla (TSLA), which popped nearly 10% on Thursday. The Dow Jones Industrial Average added 2.2% for the week, while the S&P 500 rose 2.5%. As it stands, the S&P 500, Nasdaq Composite and Dow closed above their 50-day moving averages for the first time since April.
Some investors are interpreting the 50-day technical recovery as a sign that the worst of the market correction is now behind us. The main question heading into the week is whether this recent rally will continue, particularly as Big Tech comes into focus with Apple (AAPL), Amazon (AMZN) and Microsoft (MSFT) slated to announce their results. While it’s still early in the reporting cycle, the guidance they provide for the current quarter and beyond will reveal their level of confident and ability to navigate inflationary headwinds. Here are the names to keep an eye on for this week.
Alphabet (GOOG , GOOGL) - Reports after the close, Tuesday, July 26
Wall Street expects Alphabet to earn $1.30 per share on revenue of $70.27 billion. This compares to the year-ago quarter when earnings came to $1.36 per share on revenue of $61.88 billion.
What to watch: Shares of the Google and YouTube parent have fallen 21% year to date, underperforming the 16% decline in the S&P 500 index. The stock has fallen 8.4% and 12.3% in the respective three months and six months, while only slightly outperforming the losses in the tech-heavy Nasdaq Composite during that span. Amid various macroeconomic concerns such as rising inflation, the tech conglomerate has suffered a slowdown in digital advertising. This is likely to persist given the recent drop in Snap (SNAP) which recently released results of a brutal quarter that missed Street's estimates. That said, execution hasn’t been an issue for Google. In the last two years, the company’s quarterly reports have beaten revenue estimates for eight consecutive times, while missing on profit estimates just once in that span. Ahead of the earnings report, the company said YouTube TV had topped 5 million subscribers, taking the top spot for streaming TV services in the United States, surpassing Disney-owned (DIS) Hulu. And when factoring the recent momentum of Google Cloud Platform and Google Workspace, the company has shown considerably more growth than it has received credit for. Estimates call for Google Cloud to deliver Q2 segment revenues of $6.1 billion, implying year-over-year growth of 43%. On Tuesday investors will look to see if Google’s cloud business can be an offsetting factor for any weakness in the digital ad business.
Microsoft (MSFT) - Reports after the close, Tuesday, July 26
Wall Street expects Microsoft to earn $2.30 per share on revenue of $52.47 billion. This compares to the year-ago quarter when earning were $2.17 per share on $46.15 billion in revenue.
What to watch: The market is broadly bullish ahead of Microsoft’s earnings report, particularly the company’s Azure cloud platform. Citing channel checks and rising demand for Azure, Wedbush Securities analyst Dan Ives expects a 46% year-over-year increase during the just-ended quarter. "On the Azure front, cloud migration and increased focus on digital transformation is not slowing down based on our recent checks with [Microsoft], a core beneficiary of this major enterprise-driven trend," Ives wrote in a note to clients. Rating Microsoft as Outperform with price target of $340, the analyst expects that Azure growth to remain above the 40% threshold into 2023, adding that that roughly 44% of workloads are currently on the cloud. He expects that total to reach 70% by 2025. In other words, inflationary pressures and supply chain challenges aside, Microsoft still has plenty of growth runway ahead from these well-established trends. With the stock down 21% year to date, compared to a 16% decline in the S&P 500 index, Microsoft looks attractive at current levels, assuming Wall Street’s bullish thesis materializes. On Tuesday, the company’s guidance will gauge how confident the management feels about these growth projections.
Meta Platforms (META) - Reports after the close, Wednesday, July 27
Wall Street expects Facebook to earn $2.61 per share on revenue of $29.03 billion. This compares to the year-ago quarter when earnings came to $3.61 per share on revenue of $27.89 billion.
What to watch: Amid the recent tech selloff, Meta shares have been punished, falling 39% and 46% in the respective six months and nine months. Down 45% year to date and 47% over the past year, its shares have lost more than 55% since reaching its 52-week high of $384. Slowing user growth and advertising growth at its core Facebook and Instagram products have scared investors away. On the heels Snapchat (SNAP) and Twitter (TWTR) earnings, which fell short of analysts’ expectations, the market is bracing for another tough quarter from Meta’s digital ad business. But even amid inflationary cost pressures and struggles with daily active users, Meta can still beat profit expectations, which are low. The company guided for Q2 revenue in the range of $28 billion to $30 billion, suggesting a sequential revenue increase of up to $2 billion. What’s more, CEO Mark Zuckerberg is betting heavily on the Metaverse which, according to some estimates, is expected to grow as much as $2 trillion annually. The company’s advances in virtual reality with its Oculus VR headset (Meta Quest) gives it a leg up on the competition. The company on Wednesday will nonetheless need to show improvements in its Reality Labs, demonstrating that the business can emerge as Meta’s profit center that it is expected to become.
Apple (AAPL) - Reports after the close, Thursday, July 28
Wall Street expects Apple to earn $1.16 per share on revenue of $82.83 billion. This compares to the year-ago quarter when earnings came to $1.30 per share on revenue of $81.43 billion.
What to watch: Supply chain disruptions and rising inflation have served as headwinds for the iPhone maker, but the company should meet its Q3 estimates, according to Wedbush Securities analysts Dan Ives, who has an Outperform rating on Apple stock. “Demand for the iPhone is holding up slightly better than expected," Ives noted, though he cautioned that weakness is still expected ahead of the fall launch of the iPhone 14. "Apple is continuing to focus on a robust product pipeline and services ramp into 2023 including what we believe will be the highly anticipated AR/VR headset release," Ives wrote in a note to clients. However, Morgan Stanley analyst Katy Huberty said that potential weakness in the company's Mac and services segments could more than offset "solid iPhone results.” Huberty lowered her price target on Apple stock to $180 from $185, citing weak iPad and Mac sales which she expects to be down by 7% and 26%, respectively, from the first quarter. While Apple stock has rebounded strongly over the past month, rising almost 15%, the shares are still down almost 13% year to date. Investors are hoping for more clarity and conviction on the bullish thesis on Thursday.
Amazon (AMZN) - Reports after the close, Thursday, July 28
Wall Street expects Amazon to earn 15 cents per share on revenue of $119.42 billion. This compares to the year-ago quarter when earnings came to 76 cents per share on revenue of $115.20 billion.
What to watch: What’s wrong with Amazon? Questions related to Amazon’s execution have been raised ever since the company in Q1 reported a $3.8 billion loss. Not only was this its first quarterly loss in seven years, its operating income fell from $8.9 billion to $3.7 billion, while its operating margin dropped by 5% to 3.2%. In response, Amazon stock has gotten punished, falling some 45% from its 52-week high of $188 (split adjusted). Shares of the e-commerce giant are more than 25% year to date, including 12% and 27% in the respective six months and nine months. The company has also suffered due to slowing revenue growth, compounded by rising inflation which is also driving up its operating expenses. The company noted that inflationary pressures have an additional $2 billion in incremental costs during the most recent quarter, as did excess fulfillment capacity which was needed to meet pandemic-fueled e-commerce demand. But Amazon is pivoting to offset these weaknesses, affirming its interest in healthcare by recently spending nearly $3.9 billion to acquire One Medical (ONEM), an operator of a membership-based primary care platform. The all-cash transaction values One Medical at $18 per share, or a near 70% premium. This merits of this deal and improvements in the company’s growth metrics will be the areas investors will focus on during the conference call.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The main question heading into the week is whether this recent rally will continue, particularly as Big Tech comes into focus with Apple (AAPL), Amazon (AMZN) and Microsoft (MSFT) slated to announce their results. Among the Dow’s notable decliners were Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Walt Disney (DIS). Apple (AAPL) - Reports after the close, Thursday, July 28 Wall Street expects Apple to earn $1.16 per share on revenue of $82.83 billion. | Among the Dow’s notable decliners were Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Walt Disney (DIS). The main question heading into the week is whether this recent rally will continue, particularly as Big Tech comes into focus with Apple (AAPL), Amazon (AMZN) and Microsoft (MSFT) slated to announce their results. Apple (AAPL) - Reports after the close, Thursday, July 28 Wall Street expects Apple to earn $1.16 per share on revenue of $82.83 billion. | Apple (AAPL) - Reports after the close, Thursday, July 28 Wall Street expects Apple to earn $1.16 per share on revenue of $82.83 billion. Among the Dow’s notable decliners were Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Walt Disney (DIS). The main question heading into the week is whether this recent rally will continue, particularly as Big Tech comes into focus with Apple (AAPL), Amazon (AMZN) and Microsoft (MSFT) slated to announce their results. | Among the Dow’s notable decliners were Apple (AAPL), Salesforce (CRM), Microsoft (MSFT) and Walt Disney (DIS). The main question heading into the week is whether this recent rally will continue, particularly as Big Tech comes into focus with Apple (AAPL), Amazon (AMZN) and Microsoft (MSFT) slated to announce their results. Apple (AAPL) - Reports after the close, Thursday, July 28 Wall Street expects Apple to earn $1.16 per share on revenue of $82.83 billion. | 2 |
510 | 20,119 | 2022-07-23 00:00:00 UTC | Taiwan Semiconductor Is Saying Chip Demand Remains Strong (For Now) | AAPL | https://www.nasdaq.com/articles/taiwan-semiconductor-is-saying-chip-demand-remains-strong-for-now | null | null | The second-quarter earnings season is well underway. One of the first companies to report this period is Taiwan Semiconductor Manufacturing (NYSE: TSM), the largest semiconductor/computer chip manufacturer worldwide. TSMC hit the top end of its revenue guidance and generated phenomenal operating margins for the three months ending in June, causing shares to pop in the days following the release.
Investors have been worried about a downturn in semiconductor demand after the pandemic-induced boost to the industry. So far, these worries have not materialized. Taiwan Semiconductor's second-quarter results show strong demand for computer chips worldwide. But how long is that set to last? Let's see exactly what TSMC said in its second-quarter earnings report and conference call.
Solid Q2 results
On July 14, TSMC released its Q2 earnings results. Revenue was up 36.6% year over year to $18.16 billion, hitting the higher end of its previous guidance for $17.6 billion to $18.2 billion. Operating margin came in at 49.1%, significantly beating TSMC's guidance for 45%-47% margins. This occurred because of continued operating leverage from its factories and gains in the value of the U.S. dollar compared to the Taiwanese currency. With a lot of customers like Apple and Nvidia headquartered in the United States, a rising dollar means TSMC gets paid more for the same product output, all else equal.
TSMC continues to grow at such a significant pace for a few main reasons. First, its customers in the high-performance computing (HPC) industry are growing like crazy. These include artificial intelligence researchers, data centers for cloud providers like Amazon's Amazon Web Services, and edge computing networks. HPC revenue grew 14% quarter over quarter in Q2 and now makes up 43% of TSMC's overall revenue.
Second, TSMC continues to take its lead with the most advanced semiconductors. It is one of the few manufacturers in the world with the capacity to make 5-nanometer and 7-nanometer silicon wafers at scale (smaller equals better in the computer chip market), giving it a near monopoly with customers looking for the most advanced computer chips. Advanced nodes of the 5nm and 7nm variety now make up 51% of TSMC's overall revenue.
Over the next few years, TSMC plans to roll out its 3nm and 2nm manufacturing capabilities. This should further increase its competitive positioning versus companies like Samsung and Intel and strengthen its relationship with customers like Apple and Nvidia, who are looking to build some of the most advanced computer chips in the world. The only place they can do that is TSMC.
Potential short-term glut but long-term tailwind
The big worry many investors have with companies like TSMC is the history of cyclicality in the semiconductor market. Historically, as global demand increased for computer chips, companies would end up ordering too much inventory from manufacturers, causing a sharp reduction in demand, which led to a reduction in earnings for manufacturers.
With huge demand increases caused by the COVID-19 pandemic over the last few years, it is possible that TSMC's customers are ordering too much inventory right now, which will cause a slowdown in demand in 2023 or 2024. Management even warned about rising inventories on the Q2 conference call.
However, even if a one- or two-year glut materializes, that changes nothing for long-term shareholders in this business. On the Q2 call, management reiterated their confidence in growing TSMC's revenue by 15%-20% a year through 2026, combined with 53%+ gross margins. As long as you plan to hold shares for five-plus years, it shouldn't concern you if revenue growth slows down in 2023, especially when revenue is growing north of 35% annually right now.
Valuation is getting attractive
TSM Revenue (TTM) data by YCharts. TTM = trailing 12 months.
Even though shares popped last week, TSMC's stock is still down around 30% this year and now trades at a market cap of $430 billion. With $25.9 billion in trailing-12-month operating income, the stock trades at a price-to-operating income (P/OI) of 16.6. For a company with such a dominant market position, this is not expensive at all.
But what if we use TSMC's revenue forecast through 2026? If revenue grows at a 15% rate over the next four years, it will be at $107 billion in 2026. Conservatively, if we estimate that TSMC's operating margin will be 45% by that time, that would equate to $48.1 billion in annual operating income. That is a P/OI of 8.9 based on the stock's current market cap. In my book, this makes the stock an easy buy at these prices.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Intel, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With a lot of customers like Apple and Nvidia headquartered in the United States, a rising dollar means TSMC gets paid more for the same product output, all else equal. This should further increase its competitive positioning versus companies like Samsung and Intel and strengthen its relationship with customers like Apple and Nvidia, who are looking to build some of the most advanced computer chips in the world. Potential short-term glut but long-term tailwind The big worry many investors have with companies like TSMC is the history of cyclicality in the semiconductor market. | Historically, as global demand increased for computer chips, companies would end up ordering too much inventory from manufacturers, causing a sharp reduction in demand, which led to a reduction in earnings for manufacturers. The Motley Fool has positions in and recommends Amazon, Apple, Intel, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, and short March 2023 $130 calls on Apple. | Historically, as global demand increased for computer chips, companies would end up ordering too much inventory from manufacturers, causing a sharp reduction in demand, which led to a reduction in earnings for manufacturers. Even though shares popped last week, TSMC's stock is still down around 30% this year and now trades at a market cap of $430 billion. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, and short March 2023 $130 calls on Apple. | Taiwan Semiconductor's second-quarter results show strong demand for computer chips worldwide. If revenue grows at a 15% rate over the next four years, it will be at $107 billion in 2026. The Motley Fool has positions in and recommends Amazon, Apple, Intel, and Taiwan Semiconductor Manufacturing. | null |
511 | 20,151 | 2022-07-22 00:00:00 UTC | 3 Warren Buffett Stocks Down 15% to 36% to Buy Right Now | AAPL | https://www.nasdaq.com/articles/3-warren-buffett-stocks-down-15-to-36-to-buy-right-now | null | null | Warren Buffett learned a lot from his mentor, Benjamin Graham. One of the most important of those lessons was Graham's insistence that "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." The idea is that share prices over the short term reflect investors' fickle view, but share prices over the long term reflect the quality of the underlying businesses.
Because Buffett knows that Graham was right, he doesn't worry when stocks in Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) portfolio fall. Instead, he often even sees these declines as great buying opportunities.
Quite a few stocks that Berkshire owns have dropped significantly. Here are three Buffett stocks down 15% to 36% to buy right now.
1. Mastercard
Shares of Mastercard (NYSE: MA) have fallen around 15% below the all-time high set earlier this year. Most of this decline came in June, with rising interest rates and inflation worrying investors that Mastercard's business could be negatively affected by a potential recession.
Buffett trimmed Berkshire's stake in Mastercard somewhat in the fourth quarter of 2021. However, the conglomerate still owns nearly 4 million shares of the payment-processing company.
Wall Street remains bullish about Mastercard. 34 of the 39 analysts surveyed by Refinitiv rate the stock as a buy or strong buy. The average analysts' 12-month price target for the stock reflects an upside potential of nearly 26%.
Of course, Buffett doesn't pay attention to what analysts say. He's more interested in how Mastercard's business is likely to perform over the next five or more years. That long-term performance should remain strong as people increasingly move away from using cash.
2. Apple
Apple (NASDAQ: AAPL) stock has declined close to 18% this year. The same fears affecting Mastercard have weighed on the giant tech stock. Apple also continues to deal with supply chain issues that could reduce its third-quarter sales by as much as $8 billion.
But Buffett's high estimation of Apple hasn't changed one bit. Apple remains, by far, the biggest position in Berkshire's portfolio. Berkshire bought around $600 million worth of Apple shares in the first quarter of 2022. Buffett stated in an interview with CNBC that he stopped buying only because Apple's share price rebounded.
Analysts are nearly as optimistic about Apple as they are about Mastercard. All but six of the 38 analysts surveyed by Refinitiv think the stock is a buy or strong buy. None of the analysts recommend selling Apple. The average 12-month price target is 23% higher than Apple's current share price.
Wall Street's and Buffett's sunny views about Apple are based on the company's underlying business strength. Apple should continue to enjoy solid sales growth thanks to the ecosystem built around the iPhone. The company could also deliver even stronger growth later this decade as augmented reality gains momentum.
3. Amazon.com
Amazon.com (NASDAQ: AMZN) has taken the worst drubbing of these three Buffett stocks. Shares of the e-commerce and cloud leader are down 36% below the peak set in the fourth quarter of 2021. The primary culprit behind Amazon's slide is slowing sales growth.
Berkshire first initiated a position in Amazon in 2019. Buffett didn't personally make the decision to buy the stock. However, he's been a big fan of Amazon for quite a while, even publicly acknowledging that he was an "idiot" for not buying the stock in the past.
As you might expect, Wall Street remains firmly in the Amazon camp. 43 of the 47 analysts covering the stock who were surveyed by Refinitiv think Amazon is either a buy or a strong buy. Their average 12-month price target is a whopping 47% higher than Amazon's current share price.
Amazon is coming off its biggest Prime Day ever. The company's Amazon Web Services cloud unit continues to generate strong growth. Amazon also has tremendous opportunities in healthcare and providing cashier-less checkout technology to brick-and-mortar retailers. Like Mastercard and Apple, this Buffett stock should have a lot of room to run.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights has positions in Amazon, Apple, Berkshire Hathaway (B shares), and Mastercard. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), and Mastercard. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Apple (NASDAQ: AAPL) stock has declined close to 18% this year. Most of this decline came in June, with rising interest rates and inflation worrying investors that Mastercard's business could be negatively affected by a potential recession. Buffett stated in an interview with CNBC that he stopped buying only because Apple's share price rebounded. | Apple Apple (NASDAQ: AAPL) stock has declined close to 18% this year. The idea is that share prices over the short term reflect investors' fickle view, but share prices over the long term reflect the quality of the underlying businesses. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), and Mastercard. | Apple Apple (NASDAQ: AAPL) stock has declined close to 18% this year. 43 of the 47 analysts covering the stock who were surveyed by Refinitiv think Amazon is either a buy or a strong buy. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), and Mastercard. | Apple Apple (NASDAQ: AAPL) stock has declined close to 18% this year. Here are three Buffett stocks down 15% to 36% to buy right now. Apple remains, by far, the biggest position in Berkshire's portfolio. | null |
512 | 20,169 | 2022-07-21 00:00:00 UTC | Why This Tech Stock Could Take Off This Earnings Season | AAPL | https://www.nasdaq.com/articles/why-this-tech-stock-could-take-off-this-earnings-season | null | null | The stock price of Cirrus Logic (NASDAQ: CRUS) is down 20% so far in 2022, but shares of the chipmaker have started gaining some momentum this month thanks to a rally in semiconductor stocks.
The PHLX Semiconductor Sector index is up 9% in July 2022, and Cirrus stock has tagged along with gains of 6% so far this month. The company, which is known for supplying audio and power-management chips to smartphone giant Apple (NASDAQ: AAPL), could get a nice shot in the arm in a couple of weeks when it releases its fiscal 2023 first-quarter results on Aug. 2.
Let's see why that might be the case.
Cirrus could deliver stronger-than-expected results
Wall Street is looking for $366.7 million in revenue and $0.83 per share in earnings from Cirrus Logic. But the company had guided for revenue between $350 million and $390 million for the fiscal first quarter, the midpoint of which stands at $370 million. It seems that the tepid smartphone sales environment this year has led analysts to temper their expectations from Cirrus.
That's not surprising as smartphone sales were down 11% in the first quarter of 2022 as compared to the prior-year period, according to Canalys. The overall smartphone market is expected to contract by 3% in 2022, according to another estimate.
Cirrus got 79% of its fiscal 2022 revenue from selling chips used in Apple's iPhones and other products, so it is not surprising that analysts aren't upbeat about the upcoming quarterly report.
Assuming Cirrus hits the midpoint of its guidance range, its revenue will jump an impressive 33% year over year. Meanwhile, analysts are looking for a 54% year-over-year jump in Cirrus' earnings per share. Chief financial officer Venkatesh Nathamuni pointed out on the Mayearnings conference callthat "expected revenue growth is primarily driven by anticipated increases in demand for certain components shipping in smartphones, and to a lesser extent higher [average selling prices] compared to the prior year."
The increase in average selling prices of Cirrus' components could help it achieve the ambitious bottom-line growth that analysts are looking for. It is also worth noting that the company's largest customer, Apple, could give Cirrus' results a nice boost. That's because the iPhone maker is reportedly doing well despite the slowdown in the smartphone space.
Supply chain sources suggest that iPhone 13 production from one of the factories had increased year over year in July. That is a tad surprising as older iPhone sales slow down before the launch of a new generation. What's more, Cirrus could issue healthy guidance as well given that Apple has reportedly placed more orders for its next-generation iPhones as compared to iPhone 13 units in 2021.
All this puts Cirrus in a nice position to deliver a solid set of results, especially considering that it is now getting more revenue out of each unit of the iPhone. This, however, is not the only reason the stock is worth buying right now.
More reasons to go long
Cirrus Logic is working on diversifying its business. From bringing Android smartphone OEMs (original equipment manufacturers) on board to moving beyond the traditional audio business into the high-performance mixed-signal (both analog and digital) market, Cirrus Logic seems to be making the right moves to ensure long-term growth.
The high-performance mixed-signal business, for instance, could present a $4.2-billion serviceable available market for Cirrus by 2026. That would be higher than its $3.1 billion serviceable available market that the audio business is expected to create by then. Given that Cirrus generated $1.78 billion in revenue last fiscal year, it is evident it has a lot of room for growth.
Not surprisingly, analysts expect earnings to grow at an annual rate in the double digits over the next five years. That would be a big improvement over the past five years' flat bottom-line performance. All this indicates that Cirrus Logic is a value play right now considering its price-to-earnings ratio of just 13.6. That's well below the Nasdaq-100's multiple of nearly 25, and investors may want to grab this semiconductor stock at this multiple before it moves higher.
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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Cirrus Logic and recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company, which is known for supplying audio and power-management chips to smartphone giant Apple (NASDAQ: AAPL), could get a nice shot in the arm in a couple of weeks when it releases its fiscal 2023 first-quarter results on Aug. 2. Cirrus got 79% of its fiscal 2022 revenue from selling chips used in Apple's iPhones and other products, so it is not surprising that analysts aren't upbeat about the upcoming quarterly report. Chief financial officer Venkatesh Nathamuni pointed out on the Mayearnings conference callthat "expected revenue growth is primarily driven by anticipated increases in demand for certain components shipping in smartphones, and to a lesser extent higher [average selling prices] compared to the prior year." | The company, which is known for supplying audio and power-management chips to smartphone giant Apple (NASDAQ: AAPL), could get a nice shot in the arm in a couple of weeks when it releases its fiscal 2023 first-quarter results on Aug. 2. The increase in average selling prices of Cirrus' components could help it achieve the ambitious bottom-line growth that analysts are looking for. From bringing Android smartphone OEMs (original equipment manufacturers) on board to moving beyond the traditional audio business into the high-performance mixed-signal (both analog and digital) market, Cirrus Logic seems to be making the right moves to ensure long-term growth. | The company, which is known for supplying audio and power-management chips to smartphone giant Apple (NASDAQ: AAPL), could get a nice shot in the arm in a couple of weeks when it releases its fiscal 2023 first-quarter results on Aug. 2. The stock price of Cirrus Logic (NASDAQ: CRUS) is down 20% so far in 2022, but shares of the chipmaker have started gaining some momentum this month thanks to a rally in semiconductor stocks. Cirrus could deliver stronger-than-expected results Wall Street is looking for $366.7 million in revenue and $0.83 per share in earnings from Cirrus Logic. | The company, which is known for supplying audio and power-management chips to smartphone giant Apple (NASDAQ: AAPL), could get a nice shot in the arm in a couple of weeks when it releases its fiscal 2023 first-quarter results on Aug. 2. The stock price of Cirrus Logic (NASDAQ: CRUS) is down 20% so far in 2022, but shares of the chipmaker have started gaining some momentum this month thanks to a rally in semiconductor stocks. Cirrus got 79% of its fiscal 2022 revenue from selling chips used in Apple's iPhones and other products, so it is not surprising that analysts aren't upbeat about the upcoming quarterly report. | null |
513 | 20,173 | 2022-07-20 00:00:00 UTC | Wednesday's ETF with Unusual Volume: OMFL | AAPL | https://www.nasdaq.com/articles/wednesdays-etf-with-unusual-volume%3A-omfl | null | null | The Invesco Russell 1000—Dynamic Multifactor ETF is seeing unusually high volume in afternoon trading Wednesday, with over 2.8 million shares traded versus three month average volume of about 255,000. Shares of OMFL were trading flat on the day.
Components of that ETF with the highest volume on Wednesday were Apple, trading up about 1% with over 41.5 million shares changing hands so far this session, and Alphabet, down about 0.1% on volume of over 23.0 million shares. Dolby Laboratories is the component faring the best Wednesday, up by about 5.2% on the day, while UnitedHealth Group is lagging other components of the Invesco Russell 1000—Dynamic Multifactor ETF, trading lower by about 3.2%.
VIDEO: Wednesday's ETF with Unusual Volume: OMFL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Invesco Russell 1000—Dynamic Multifactor ETF is seeing unusually high volume in afternoon trading Wednesday, with over 2.8 million shares traded versus three month average volume of about 255,000. Components of that ETF with the highest volume on Wednesday were Apple, trading up about 1% with over 41.5 million shares changing hands so far this session, and Alphabet, down about 0.1% on volume of over 23.0 million shares. Dolby Laboratories is the component faring the best Wednesday, up by about 5.2% on the day, while UnitedHealth Group is lagging other components of the Invesco Russell 1000—Dynamic Multifactor ETF, trading lower by about 3.2%. | The Invesco Russell 1000—Dynamic Multifactor ETF is seeing unusually high volume in afternoon trading Wednesday, with over 2.8 million shares traded versus three month average volume of about 255,000. Dolby Laboratories is the component faring the best Wednesday, up by about 5.2% on the day, while UnitedHealth Group is lagging other components of the Invesco Russell 1000—Dynamic Multifactor ETF, trading lower by about 3.2%. VIDEO: Wednesday's ETF with Unusual Volume: OMFL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Invesco Russell 1000—Dynamic Multifactor ETF is seeing unusually high volume in afternoon trading Wednesday, with over 2.8 million shares traded versus three month average volume of about 255,000. Components of that ETF with the highest volume on Wednesday were Apple, trading up about 1% with over 41.5 million shares changing hands so far this session, and Alphabet, down about 0.1% on volume of over 23.0 million shares. Dolby Laboratories is the component faring the best Wednesday, up by about 5.2% on the day, while UnitedHealth Group is lagging other components of the Invesco Russell 1000—Dynamic Multifactor ETF, trading lower by about 3.2%. | The Invesco Russell 1000—Dynamic Multifactor ETF is seeing unusually high volume in afternoon trading Wednesday, with over 2.8 million shares traded versus three month average volume of about 255,000. Shares of OMFL were trading flat on the day. VIDEO: Wednesday's ETF with Unusual Volume: OMFL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | null |
514 | 20,205 | 2022-07-19 00:00:00 UTC | Pre-Markets Try Again for Gains; J&J, Halliburton Beat in Q2 | AAPL | https://www.nasdaq.com/articles/pre-markets-try-again-for-gains-jj-halliburton-beat-in-q2 | null | null | Tuesday, July 19, 2022
Pre-market futures indicate investors will try it again today: we’re up on the major indices, as we were 24 hours ago — before the trading session lost its mojo on weaker guidance from Apple AAPL in its hiring practices. Today, we’re seeing modestly higher levels that have not changed much since economic and Q2 earnings data has dropped: the Dow is +160 points, the Nasdaq +95 and the S&P 500 +25 points.
A new Housing Starts report for June is out this morning, with a new cycle low set at 1.56 million seasonally adjusted, annualized units — down -2% versus expectations of +1.4%. The May headline was revised up to 1.59 million, which would still have been the lowest print since October of last year. As recently as April of this year, we were still north of 1.8 million new housing starts.
Building Permits — seen as a forward indicator of future starts — performed slightly better than anticipated to 1.69 million from 1.68 million expected, down -0.6% from the previous month’s unrevised 1.70 million. But today’s headline is still the lowest figure since the 1.62 million new permits we saw issued in September of last year. On both starts and permits, it’s clear the U.S. Housing sector is losing steam from its robust period over the previous six months or so.
The biggest weakness in this data is also the place where the sector relies heaviest: single-family homes, which have fallen -8% on both starts and permits, -11% year over year. Multi-family is improving, which is good news for Housing overall; the market is in need of new multi-unit rental properties. But the real gains are made in single-family, which is falling off.
This is good news for bringing down the tautness of U.S. inflation, even if it is a short-term hardship for homeowners looking to put their property on the market. From about the start of the Fed hiking interest rates, we’ve seen the housing market cool noticeably. In fact, one could argue we saw Q1 housing activity pulled from Q2 in anticipation of higher interest rates directly leading to higher mortgage costs.
Ahead of today’s bell, Johnson & Johnson JNJ has reported Q2 earnings two cents ahead of expectations to $2.59 per share, higher than the $2.48 reported in the year-ago quarter. J&J is one of those companies that never misses on its bottom line — scroll back on its earnings charts for more than a decade for proof. Revenues of $24.02 billion in the quarter topped expectations by +0.45%.
Shares are up +1.1% on this news in today’s pre-market; the company is trading in the green throughout 2022, up +4.6% over the past six months. This, even though the company is trimming the hedges on its guidance through the rest of the year. For more on JNJ’s earnings, click here.
Meanwhile, oil services behemoth Halliburton HAL posted a strong Q2 in its report released this morning: earnings of 49 cents per share on $5.07 billion in quarterly sales outperformed the Zacks consensus by +8.9% and +7.7%, respectively. The company has benefited from high oil prices during the quarter, and the Zacks Rank #2 (Buy) stock has only one miss on its bottom line in the past five years. Shares are up +1.5% in the pre-market, +20% year to date. For more on HAL’s earnings, click here.
Questions or comments about this article and/or its author? 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. | Pre-market futures indicate investors will try it again today: we’re up on the major indices, as we were 24 hours ago — before the trading session lost its mojo on weaker guidance from Apple AAPL in its hiring practices. Apple Inc. (AAPL): Free Stock Analysis Report A new Housing Starts report for June is out this morning, with a new cycle low set at 1.56 million seasonally adjusted, annualized units — down -2% versus expectations of +1.4%. | Pre-market futures indicate investors will try it again today: we’re up on the major indices, as we were 24 hours ago — before the trading session lost its mojo on weaker guidance from Apple AAPL in its hiring practices. Apple Inc. (AAPL): Free Stock Analysis Report Ahead of today’s bell, Johnson & Johnson JNJ has reported Q2 earnings two cents ahead of expectations to $2.59 per share, higher than the $2.48 reported in the year-ago quarter. | Pre-market futures indicate investors will try it again today: we’re up on the major indices, as we were 24 hours ago — before the trading session lost its mojo on weaker guidance from Apple AAPL in its hiring practices. Apple Inc. (AAPL): Free Stock Analysis Report Ahead of today’s bell, Johnson & Johnson JNJ has reported Q2 earnings two cents ahead of expectations to $2.59 per share, higher than the $2.48 reported in the year-ago quarter. | Pre-market futures indicate investors will try it again today: we’re up on the major indices, as we were 24 hours ago — before the trading session lost its mojo on weaker guidance from Apple AAPL in its hiring practices. Apple Inc. (AAPL): Free Stock Analysis Report As recently as April of this year, we were still north of 1.8 million new housing starts. | null |
515 | 20,239 | 2022-07-18 00:00:00 UTC | US STOCKS-Wall Street closes down on slide in Apple shares, bank stocks | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-closes-down-on-slide-in-apple-shares-bank-stocks | null | null | By Echo Wang
July 18 (Reuters) - Wall Street ended lower on Monday after bank stocks erased earlier gains and Apple AAPL.O shares fell on a report saying the company plans to slow hiring and spending growth next year.
After posting solid gains to start the session following earnings from Bank of America Corp BAC.N and Goldman Sachs Group Inc GS.N, the S&P financial sector .SPSY weakened into the close.
Apple shares reversed course to close down 2.1% at $147.1 on a Bloomberg report that said the company plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn.
Goldman Sachs advanced 2.5% as it reported a smaller-than-expected 48% slump in second-quarter profit, helped by strength in its fixed-income trading.
Worries about a larger one percentage point rate hike at the end of July eased following remarks from Fed officials last week that the policymakers could stick to a 75 basis point hike.
"It's really hard to sustain upward momentum," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. "And that's kind of the story of bear markets."
The Dow Jones Industrial Average .DJI fell 215.65 points, or 0.69%, to 31,072.61, the S&P 500 .SPX lost 32.31 points, or 0.84%, to 3,830.85 and the Nasdaq Composite .IXIC dropped 92.37 points, or 0.81%, to 11,360.05.
Nine of the 11 major sectors of the S&P 500 lost ground, with healthcare .SPXHC and utilities .SPLRCU suffering the largest percentage drop, while energy .SPNY took the biggest gain.
Earnings from big technology companies next week will be closely watched, after their shares came under immense selling pressure through much of this year.
Among other tech stocks, Google parent Alphabet fell 2.5%. IBM declined 1.3%.
Volume on U.S. exchanges was 10.63 billion shares, compared with the 12.15 billion average for the full session over the last 20 trading days.
Advancing issues outnumbered declining ones on the NYSE by a 1.20-to-1 ratio; on Nasdaq, a 1.06-to-1 ratio favored decliners.
The S&P 500 posted one new 52-week high and 31 new lows; the Nasdaq Composite recorded 30 new highs and 78 new lows.
(Reporting by Echo Wang in New York; Additional reporting by Shreyashi Sanyal, Bansari Mayur Kamdar and Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta, Anil D'Silva and Deepa Babington)
((E.Wang@thomsonreuters.com; +1 9172873971; Reuters Messaging: E.Wang@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 Echo Wang July 18 (Reuters) - Wall Street ended lower on Monday after bank stocks erased earlier gains and Apple AAPL.O shares fell on a report saying the company plans to slow hiring and spending growth next year. After posting solid gains to start the session following earnings from Bank of America Corp BAC.N and Goldman Sachs Group Inc GS.N, the S&P financial sector .SPSY weakened into the close. Apple shares reversed course to close down 2.1% at $147.1 on a Bloomberg report that said the company plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn. | By Echo Wang July 18 (Reuters) - Wall Street ended lower on Monday after bank stocks erased earlier gains and Apple AAPL.O shares fell on a report saying the company plans to slow hiring and spending growth next year. Apple shares reversed course to close down 2.1% at $147.1 on a Bloomberg report that said the company plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn. The Dow Jones Industrial Average .DJI fell 215.65 points, or 0.69%, to 31,072.61, the S&P 500 .SPX lost 32.31 points, or 0.84%, to 3,830.85 and the Nasdaq Composite .IXIC dropped 92.37 points, or 0.81%, to 11,360.05. | By Echo Wang July 18 (Reuters) - Wall Street ended lower on Monday after bank stocks erased earlier gains and Apple AAPL.O shares fell on a report saying the company plans to slow hiring and spending growth next year. The Dow Jones Industrial Average .DJI fell 215.65 points, or 0.69%, to 31,072.61, the S&P 500 .SPX lost 32.31 points, or 0.84%, to 3,830.85 and the Nasdaq Composite .IXIC dropped 92.37 points, or 0.81%, to 11,360.05. (Reporting by Echo Wang in New York; Additional reporting by Shreyashi Sanyal, Bansari Mayur Kamdar and Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta, Anil D'Silva and Deepa Babington) ((E.Wang@thomsonreuters.com; +1 9172873971; Reuters Messaging: E.Wang@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 Echo Wang July 18 (Reuters) - Wall Street ended lower on Monday after bank stocks erased earlier gains and Apple AAPL.O shares fell on a report saying the company plans to slow hiring and spending growth next year. After posting solid gains to start the session following earnings from Bank of America Corp BAC.N and Goldman Sachs Group Inc GS.N, the S&P financial sector .SPSY weakened into the close. The Dow Jones Industrial Average .DJI fell 215.65 points, or 0.69%, to 31,072.61, the S&P 500 .SPX lost 32.31 points, or 0.84%, to 3,830.85 and the Nasdaq Composite .IXIC dropped 92.37 points, or 0.81%, to 11,360.05. | 1 |
516 | 20,260 | 2022-07-17 00:00:00 UTC | 5 Red Flags for Unity Software's Future | AAPL | https://www.nasdaq.com/articles/5-red-flags-for-unity-softwares-future | null | null | Unity Software (NYSE: U) was one of the hottest tech IPOs of 2020. More than half of the world's mobile, console, and PC games were already created by its namesake engine -- which greatly simplified the development of cross-platform games -- and it was expanding its ecosystem with integrated ads, other monetization features, and tools for non-gaming applications.
Unity went public at $52 per share in September 2020. It opened at $75 and surged to an all-time high of $210 last November, but now trades in the low $30s. Unity's stock collapsed for three simple reasons.
Image source: Getty Images.
First, rising interest rates drove investors away from frothier growth stocks. At its peak, Unity traded at over 50 times the sales it would generate in 2021. Today, it trades at a more reasonable eight times this year's sales. Second, that shift caused investors to abandon unprofitable companies like Unity.
Third, Unity's top-line growth is decelerating. Its revenue rose 43% to $772 million in 2020 and grew 44% to $1.1 billion in 2021, but it expects a severe slowdown this year as it rebuilds the machine-learning algorithm for Unity Ads, a key component of its Operate Solutions platform which started ingesting "bad data" in the first quarter of 2022. That "bad data" was likely related to Apple's (NASDAQ: AAPL) privacy update on iOS.
Unity might seem like a contrarian buy after its steep decline, but investors should review these five red flags before pulling the trigger.
1. Unity laid off its AI and software engineers
Last month, Unity laid off about 4% of its workforce, or slightly more than 200 employees. Most of those layoffs reportedly occurred across its artificial intelligence (AI) and engineering departments, which was odd because it likely needed those employees to rebuild the company's problematic advertising algorithm.
2. Unity bought ironSource right after those layoffs
Investors were likely scratching their heads until July 13, when Unity abruptly agreed to merge with ironSource (NYSE: IS), an Israeli ad tech company that helps companies monetize their apps.
The all-stock deal values ironSource at $4.4 billion, which represents a whopping 74% premium to its 30-day average trading price, and will further dilute Unity's existing shares -- which have already expanded 7% year over year on a weighted-average basis in its first quarter of 2022. It will also inherit ironSource's workforce of 995 employees and 126 contractors.
Bringing in ironSource right after dismissing its own employees suggests that Unity realized it would be easier to simply buy another company's app monetization platform instead of rebuilding its own algorithm.
Unity claims the merger will deliver a run rate of $1 billion in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by the end of 2024, as well as over $300 million in adjusted EBITDA synergies by the third year. However, this merger could also suffer from acquisition indigestion -- and there's no guarantee ironSource can fix Unity Ads.
3. Unity is reducing its full-year forecast
Along with the ironSource announcement, Unity reduced its full-year revenue forecast from 23% to 30% growth to just 18% to 23% growth.
That's well below Unity's long-term target of generating more than 30% annual revenue growth and implies that Unity Ads is still in deep trouble. The broader slowdown of the gaming market in a post-lockdown market could also be exacerbating that pain. In addition, it suggests that Unity is buying ironSource -- which is expected to generate almost 60% as much revenue as Unity this year -- to inorganically achieve over 30% revenue growth again.
4. Unity is taking on $1 billion in fresh debt
Unity's two largest investors, Silver Lake and Sequoia, plan to invest $1 billion in Unity through new convertible notes which will be issued after the merger closes. Those notes will bear an annual interest rate of 2%, mature in 2027, and sport a conversion price of $48.89 per share.
Unity had already issued $1.7 billion in convertible notes (with a 0% rate), and it ended the first quarter of 2022 with a debt-to-equity ratio of 1.1. ironSource ended its latest quarter with a much lower debt-to-equity ratio of 0.3. Therefore, it seems like Silver Lake and Sequoia are pushing the companies to merge to reduce Unity's leverage so it can take on more debt.
5. Unity's board OK'd a $2.5 billion buyback
On its own, Unity is unprofitable on a generally accepted accounting principles (GAAP) basis. ironSource squeezed out a GAAP profit of $60 million from $553 million in revenue in 2021.
That's why it was baffling when Unity's board authorized a $2.5-billion buyback plan, which will last for 24 months, to be executed after the merger closes. Unity says it will use those buybacks to reduce the dilution from the all-stock merger, but it would arguably be wiser to invest that cash into improvements for its core game engine and ancillary services.
I'm less hopeful about Unity's future
I personally own some shares of Unity, and I've been cautiously optimistic about its turnaround efforts so far. However, these five red flags suggest it's still stuck in the mud and could continue sinking for the foreseeable future.
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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 "bad data" was likely related to Apple's (NASDAQ: AAPL) privacy update on iOS. Its revenue rose 43% to $772 million in 2020 and grew 44% to $1.1 billion in 2021, but it expects a severe slowdown this year as it rebuilds the machine-learning algorithm for Unity Ads, a key component of its Operate Solutions platform which started ingesting "bad data" in the first quarter of 2022. Bringing in ironSource right after dismissing its own employees suggests that Unity realized it would be easier to simply buy another company's app monetization platform instead of rebuilding its own algorithm. | That "bad data" was likely related to Apple's (NASDAQ: AAPL) privacy update on iOS. Unity is reducing its full-year forecast Along with the ironSource announcement, Unity reduced its full-year revenue forecast from 23% to 30% growth to just 18% to 23% growth. Unity is taking on $1 billion in fresh debt Unity's two largest investors, Silver Lake and Sequoia, plan to invest $1 billion in Unity through new convertible notes which will be issued after the merger closes. | That "bad data" was likely related to Apple's (NASDAQ: AAPL) privacy update on iOS. Unity bought ironSource right after those layoffs Investors were likely scratching their heads until July 13, when Unity abruptly agreed to merge with ironSource (NYSE: IS), an Israeli ad tech company that helps companies monetize their apps. In addition, it suggests that Unity is buying ironSource -- which is expected to generate almost 60% as much revenue as Unity this year -- to inorganically achieve over 30% revenue growth again. | That "bad data" was likely related to Apple's (NASDAQ: AAPL) privacy update on iOS. Unity bought ironSource right after those layoffs Investors were likely scratching their heads until July 13, when Unity abruptly agreed to merge with ironSource (NYSE: IS), an Israeli ad tech company that helps companies monetize their apps. 10 stocks we like better than Unity Software Inc. | null |
517 | 20,270 | 2022-07-15 00:00:00 UTC | Netflix (NFLX) Set to Report Q2 Earnings: What to Expect? | AAPL | https://www.nasdaq.com/articles/netflix-nflx-set-to-report-q2-earnings%3A-what-to-expect | null | null | Netflix NFLX is set to report second-quarter 2022 results onJul 19.
The company forecasts its second-quarter earnings to be $3 per share, suggesting a year-over-year decline of 20%.
The Zacks Consensus Estimate for earnings is currently pegged at $2.90 per share, down 2% over the past 30 days. The figure indicates 2.36% decline from the year-ago quarter’s reported figure.
Netflix expects total revenues to increase 9.7% year over year to $8.053 billion. The consensus mark for second-quarter revenues is currently pegged at $8.03 billion, suggesting 9.33% growth from the figure reported in the year-ago quarter.
Netflix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same in the remaining one, the average surprise being 25.42%.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
Let’s see how things are shaping up for this announcement.
Factors to Consider
Netflix expects to lose two million paid subscribers in second-quarter 2022 because of stiff competition, the unfavorable impact of account sharing, a weak economy, multi-decade-high inflation, the Russia-Ukraine conflict and some lingering COVID-19 disruptions.
Netflix’s shares have lost 71% year to date, underperforming the Zacks Broadcast Radio and Television industry’s decline of 57.2%.
Netflix has been facing stiff competition in the streaming space from the likes of Disney+ by Disney DIS, HBO Max, Comcast’s CMCSA Peacock, Paramount+, and Apple TV+ by Apple AAPL.
Netflix’s closest competitor, Disney, benefits from the growing popularity of Disney+ owing to a strong content portfolio and a cheaper bundle offering.
Disney is also expanding into international markets. Disney+, as of Apr 2, 2022, had 137.7 million paid subscribers compared with 103.6 million as of Apr 2, 2021.
Comcast’s Peacock is well poised to grow, owing to its vast library of IP and new productions. Comcast is also planning to leverage Sky’s brand and scale to expand Peacock’s footprint internationally.
Apple’s streaming service, Apple TV+, is gaining recognition, with Ted Lasso season 2 garnering 20 Emmy Award nominations and CODA winning three Academy Awards. This is expected to boost Apple TV+’s viewership.
However, courtesy of its diversified content portfolio, attributable to heavy investments in the production and distribution of localized, foreign-language content and an expanding international footprint, Netflix is still dominating the streaming market.
This Zacks Rank #4 (Sell) company expects to end the second quarter of 2022 with 219.64 million paid subscribers globally, indicating growth of 5% from the year-ago quarter.
The Zacks Consensus Estimate for paid memberships at the end of the period is pegged at 224.23 million, slightly lower than management’s expectation.
The Zacks Consensus Estimate for paid total streaming net membership loss is pegged at 1.662 million.
Netflix’s growing popularity in Asia Pacific (APAC) and Latin America (LATAM), thanks to its diversified content offerings in regional languages, is expected to have driven top-line growth.
The consensus mark for second-quarter 2022 APAC revenues is pegged at $944 million, indicating 18.1% growth from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for LATAM revenues is pegged at $1.01 billion, suggesting almost 16.8% growth from the figure reported in the previous quarter.
Moreover, the consensus mark for Europe, Middle East & Africa revenues is pegged at $2.56 billion, suggesting 6.8% growth from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for United States and Canada revenues stands at $3.51 billion, indicating 8.4% growth from the figure reported in the year-ago quarter.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks 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. | Netflix has been facing stiff competition in the streaming space from the likes of Disney+ by Disney DIS, HBO Max, Comcast’s CMCSA Peacock, Paramount+, and Apple TV+ by Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report Factors to Consider Netflix expects to lose two million paid subscribers in second-quarter 2022 because of stiff competition, the unfavorable impact of account sharing, a weak economy, multi-decade-high inflation, the Russia-Ukraine conflict and some lingering COVID-19 disruptions. | Netflix has been facing stiff competition in the streaming space from the likes of Disney+ by Disney DIS, HBO Max, Comcast’s CMCSA Peacock, Paramount+, and Apple TV+ by Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report The consensus mark for second-quarter revenues is currently pegged at $8.03 billion, suggesting 9.33% growth from the figure reported in the year-ago quarter. | Netflix has been facing stiff competition in the streaming space from the likes of Disney+ by Disney DIS, HBO Max, Comcast’s CMCSA Peacock, Paramount+, and Apple TV+ by Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report The consensus mark for second-quarter 2022 APAC revenues is pegged at $944 million, indicating 18.1% growth from the figure reported in the year-ago quarter. | Netflix has been facing stiff competition in the streaming space from the likes of Disney+ by Disney DIS, HBO Max, Comcast’s CMCSA Peacock, Paramount+, and Apple TV+ by Apple AAPL. Apple Inc. (AAPL): Free Stock Analysis Report The Zacks Consensus Estimate for earnings is currently pegged at $2.90 per share, down 2% over the past 30 days. | null |
518 | 20,287 | 2022-07-14 00:00:00 UTC | Buy Microsoft Stock Before the Price Rises | AAPL | https://www.nasdaq.com/articles/buy-microsoft-stock-before-the-price-rises | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There’s no time like the present to buy Microsoft (NASDAQ:MSFT) stock. Down nearly 25% on the year and currently trading right around $250 a share, MSFT stock is on sale and would make a worthy long-term addition to any portfolio.
Investors should keep in mind that, despite the recent pullback, Microsoft shares have gained 247% over the last five years and delivered a more than 700% return to shareholders in the past decade. With leading positions in key technology segments such as software, cloud computing and video games, Microsoft is the kind of rock solid technology investment that can carry investors through the ebbs and flows of any market.
Ticker Company Recent Price
MSFT Microsoft $252.91
MSFT StocAntitrust Probe
The latest news to impact MSFT stock are reports that England’s competition watchdog has opened an investigation into the company’s $68.7 billion acquisition of video game maker Activision Blizzard (NASDAQ:ATVI). The British Competition and Markets Authority said its investigation will “consider whether the deal could harm competition and lead to worse outcomes for consumers.”
The regulator has set a Sept. 1 deadline for its initial decision on Microsoft’s proposed acquisition of Activision Blizzard. The British regulator is one of the first watchdog organizations in the world to probe the deal, which was announced in January of this year.
While some industry analysts have questioned how Microsoft’s purchase of Activision Blizzard will impact the $190 billion video game industry, the general view is that, despite any regulatory reviews, the deal is likely to be finalized sometime next year. This would give Microsoft control of popular video game franchises such as “Call of Duty” and “World of Warcraft.”
At least one prominent investor is betting that the deal succeeds. Warren Buffett’s holding company, Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B), has purchased more than 74 million shares of ATVI stock with plans to tender them for the agreed upon sale price of $95 a share once the acquisition is approved.
Attractive Valuation
Putting the Activision Blizzard purchase aside, there are plenty of other reasons for investors to be bullish on MSFT stock.
Among its mega-cap technology peers that include, Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META) and Google parent company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Microsoft boasts the best profit margins at 37.6%. Meta Platforms comes in second with a profit margin of 31.2%. While Microsoft’s stock trades at 27 times this year’s earnings, that valuation is not overly high considering that the company is guiding for 18.5% revenue growth this year and 14% next year, along with 15% earnings growth both this year and next.
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Microsoft also has more than $100 billion of cash on hand and multiple business units that are growing at double digit year-over-year rates, including its Azure cloud computing and digital advertising units. The growth complements the continued strength of Microsoft’s flagship Windows operating system and related Office software, which continue to dominate the personal computer market with nearly 74% of the world’s desktop computers running on Microsoft products.
Increasingly, Microsoft is selling its Office software through a software-as-a-service (SaaS) model that requires customers to pay a subscription fee to access the software products from the cloud, providing the company with recurring and predictable revenue.
On top of everything else, Microsoft pays a quarterly dividend that it has steadily raised each year for more than a decade. MSFT stock’s dividend yield is currently 0.94%, which is good for a quarterly payment of 62 cents per share. Many of Microsoft’s peers, including Amazon and Alphabet, do not pay a dividend.
Among 37 analysts who cover MSFT stock, the median price target is $349.50, implying 38% upside over the next 12 months.
Buy MSFT Stock While You Can
The rout in technology stocks this year has been severe, with the Nasdaq index down nearly 30% since January. Many technology stocks are down 70% or more. While gut wrenching, the selloff has lowered the price of many leading companies and provided investors with some great deals if they can stomach short-term pain for long-term gains. Microsoft is one such stock.
The company continues to be one of the biggest and best run technology concerns in the world, and its stock has a track record of rewarding shareholders. As such, investors should add Microsoft to their portfolio while it remains cheap. MSFT stock is a strong buy.
On the date of publication, Joel Baglole held long positions in MSFT, AAPL and GOOGL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post Buy Microsoft Stock Before the Price Rises 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. | Among its mega-cap technology peers that include, Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META) and Google parent company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Microsoft boasts the best profit margins at 37.6%. On the date of publication, Joel Baglole held long positions in MSFT, AAPL and GOOGL. Investors should keep in mind that, despite the recent pullback, Microsoft shares have gained 247% over the last five years and delivered a more than 700% return to shareholders in the past decade. | Among its mega-cap technology peers that include, Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META) and Google parent company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Microsoft boasts the best profit margins at 37.6%. On the date of publication, Joel Baglole held long positions in MSFT, AAPL and GOOGL. Ticker Company Recent Price MSFT Microsoft $252.91 MSFT StocAntitrust Probe The latest news to impact MSFT stock are reports that England’s competition watchdog has opened an investigation into the company’s $68.7 billion acquisition of video game maker Activision Blizzard (NASDAQ:ATVI). | Among its mega-cap technology peers that include, Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META) and Google parent company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Microsoft boasts the best profit margins at 37.6%. On the date of publication, Joel Baglole held long positions in MSFT, AAPL and GOOGL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips There’s no time like the present to buy Microsoft (NASDAQ:MSFT) stock. | Among its mega-cap technology peers that include, Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META) and Google parent company Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Microsoft boasts the best profit margins at 37.6%. On the date of publication, Joel Baglole held long positions in MSFT, AAPL and GOOGL. Down nearly 25% on the year and currently trading right around $250 a share, MSFT stock is on sale and would make a worthy long-term addition to any portfolio. | null |
519 | 20,310 | 2022-07-13 00:00:00 UTC | 2 Dividend-Paying Tech Stocks to Buy Right Now | AAPL | https://www.nasdaq.com/articles/2-dividend-paying-tech-stocks-to-buy-right-now-2 | null | null | When you think of dividends, perhaps slow-moving industrial companies or real estate investment trusts (REITs) may come to mind. Most companies that pay dividends have few growth opportunities ahead, but what if you want to find stocks that are dividend payers and have appealing potential ahead of them?
Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) both fit in this box. These two companies have robust business models that have allowed them to see immense profitability and cash generation. These companies are using that cash to explore potentially lucrative spaces and are paying investors a dividend for their patience.
Here's why long-term investors should consider taking advantage of these great deals.
1. Apple
As one of the largest companies in the world, it's not all that surprising that Apple has enough cash flow to pay a dividend. The company has a dividend yield of 0.61%, which is small but represents over 14% of its net income. In the first six months (ended March 26, 2022) of its fiscal year, the company generated almost $60 billion in net income and $70 billion in free cash flow. The company uses this to buy back lots of stock and reinvest into its business; yet, there's still enough cash left over for this dividend.
What opportunities is Apple investing in? One of the most appealing areas Apple is exploring is augmented reality. The rumors are that Apple is developing virtual reality (VR) goggles and augmented reality (AR) glasses to come out in 2023 and 2024, respectively. Considering that Apple has been hiring employees in the AR/VR space, it makes sense that rumors are spreading.
The AR/VR market is expected to be worth over $450 billion by 2030, according to Allied Market Research, which could allow Apple to thrive given its unrivaled brand strength. Additionally, if these products connect with its pre-existing products, that could strengthen its robust ecosystem, making it easier for current Apple customers to adopt AR/VR spectacles.
Apple's primary concern is its size. Currently, it's worth $2.4 trillion, so for it to deliver market-beating returns over the next decade, the company would likely have to grow larger than $3 trillion -- breaking its own record for the biggest company ever by market capitalization. This is certainly possible, but beating this record by a large margin isn't something investors should expect.
Apple is, however, trading close to its lowest valuation since early 2020 at 24 times earnings. While this business might not deliver 1,000% returns over the next decade, it will likely provide steady gains, exposure to the emerging VR industry, and a nice dividend that will likely expand as the business continues to gush cash. For those reasons, you might want to ensure you have this technology staple in your portfolio.
2. Nvidia
Nvidia might not be the first stock to come to mind when thinking about dividends, but with a yield of 0.10%, it is a dividend payer. Additionally, this could get bigger in the future, considering the company only pays out 4% of its net income in its dividend.
Rather, most of its cash is getting funneled into capitalizing on the chip space. Nvidia is a leader in the gaming graphics processing unit (GPU) space with over 200 million gamers using its GeForce graphics cards. However, it also dominates other segments. The company has a 90% share in graphics for workstations in the professional visualization market, and 71% of the top 500 supercomputers rely on Nvidia's chips.
The company is also looking to gain prevalence in emerging segments like enterprise artificial intelligence and omniverse software. With all of these segments combined, Nvidia sees an industry worth $1 trillion. Therefore, it might make sense that most of its $9.5 billion in trailing 12-month net income is being spent here rather than on a dividend.
While the opportunity for Nvidia looks lucrative, it does not come without risk. The company faces stiff competition from companies like Intel and Advanced Micro Devices -- both of which also generate lots of cash. It's safe to say that this will be a fierce battle to gain share, but considering how big these segments are, it won't necessarily be a winner-take-all scenario.
The other risk to monitor is the company's valuation. At 42 times earnings, Nvidia isn't cheap, and investors might see some multiple compression ahead.
However, Nvidia looks too good to miss out on now. The company could rapidly expand over the long term given its massive potential. Additionally, as Nvidia gains share, it could decide to increase its dividend, making it even more attractive as a dividend play. Patient investors looking to see high growth and a rising dividend over the long term should consider adding Nvidia to their portfolio.
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Jamie Louko has positions in Apple and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, and Nvidia. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long March 2023 $120 calls on Apple, short January 2023 $57.50 puts on Intel, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) both fit in this box. The company has a 90% share in graphics for workstations in the professional visualization market, and 71% of the top 500 supercomputers rely on Nvidia's chips. It's safe to say that this will be a fierce battle to gain share, but considering how big these segments are, it won't necessarily be a winner-take-all scenario. | Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) both fit in this box. These companies are using that cash to explore potentially lucrative spaces and are paying investors a dividend for their patience. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Intel, and Nvidia. | Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) both fit in this box. Most companies that pay dividends have few growth opportunities ahead, but what if you want to find stocks that are dividend payers and have appealing potential ahead of them? Apple As one of the largest companies in the world, it's not all that surprising that Apple has enough cash flow to pay a dividend. | Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) both fit in this box. Most companies that pay dividends have few growth opportunities ahead, but what if you want to find stocks that are dividend payers and have appealing potential ahead of them? The company uses this to buy back lots of stock and reinvest into its business; yet, there's still enough cash left over for this dividend. | null |
520 | 20,326 | 2022-07-12 00:00:00 UTC | 7 Tech Stocks Trading at a Terrific Discount Right Now | AAPL | https://www.nasdaq.com/articles/7-tech-stocks-trading-at-a-terrific-discount-right-now | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When the equities sector started to unravel as soaring inflation and the conflict in eastern Europe took its toll on investor sentiment, the technology sector was one of the hardest hit. Since these enterprises are largely geared toward maximizing growth, when opportunities for economic expansion are limited, the segment tends to suffer. However, the bearishness may have gone overboard, thus bolstering tech stocks trading at a discount.
One main reason to consider picking up deflated shares is that innovation always moves forward. With digitalization becoming an even more ingrained reality than in the past, it’s a likely bet that tech stocks focused on wider connectivity will eventually recover. However, investors can enjoy the greatest rewards by getting in early before the wave.
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Second, some platforms are so deeply integrated into society that they’ve essentially become indispensable. As well, broader labor force developments such as the gig economy will likely ensure that tech stocks — despite their current volatility — maintain their relevance. Therefore, those that can handle some choppy waters should get ready to do some digging in the discount bin.
Ticker Company Price
AAPL Apple $
PYPL PayPal $
ADBE Adobe $
SQ Block $
NVDA Nvidia $
SE Sea Limited $
META Meta $
Tech Stocks to Watch: Apple (AAPL)
Source: View Apart / Shutterstock.com
Typically, tech stocks levered heavily to the consumer retail market are problematic amid recessionary forces. One of the first items that households cut from their budgets during an economic downturn are discretionary products; that is, products that are nice to have but not essential. Nevertheless, Apple (NASDAQ:AAPL) is proving doubters wrong, being a clear winner amid the coronavirus madness.
True, not everyone needs a new iPhone or iPad. Indeed, it would be foolish to make such outlandish purchases if you recently got the pink slip from your employer. However, Apple is proving integral not necessarily for its products but for its ecosystem.
Essentially, Apple is superior to any other competing ecosystem — say from Microsoft (NASDAQ:MSFT) or Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) — because it has the entire stack covered. Transitioning between devices is a snap because everything is connected to a cohesive whole. There’s really nothing quite like it, making AAPL one of the intriguing tech stocks to buy on discount.
PayPal (PYPL)
Source: JHVEPhoto / Shutterstock.com
Following the extremely volatility of the March doldrums of 2020, shares of PayPal (NASDAQ:PYPL) quickly skyrocketed to record valuations. Part of the reason is the digital payment processor and business software solution firm facilitated contactless transactions, a much-needed attribute when fears of the coronavirus pandemic were at their zenith.
Nowadays, though, those fears have significantly subsided. Moreover, PYPL and other tech stocks came under pressure from macroeconomic threats. With dramatically rising inflation cutting into the purchasing power of the dollar, households were basically getting taxed on their real earnings. Naturally, such a dynamic would have negative implications for the business community.
As well, competitive threats from Amazon (NASDAQ:AMZN) have weighed on PYPL. Though sales are up in the first quarter of 2022, net income has decelerated, raising concerns among investors.
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Nevertheless, thanks to PayPal’s brand power, it offers relevance for the burgeoning gig economy, which experts believe will grow to $455 billion by the end of 2023 in terms of gross transactions.
Tech Stocks to Watch: Adobe (ADBE)
Source: Tattoboo / Shutterstock
A popular software company, Adobe (NASDAQ:ADBE) specializes in products geared toward content creation, covering graphics, photography, illustration, animation, video and print. Its flagship product arguably is Photoshop, an image-editing software.
After meandering a bit during the spring doldrums of 2020, Adobe found itself flying to the stratosphere. As with PayPal, Adobe’s products — such as Acrobat Reader — lent themselves to contactless transactions, fortuitously benefitting ADBE stock. Unfortunately, the narrative shifted this year, with shares plunging 31% on a year-to-date basis.
Still, Wall Street might not be acting rational here. In its latest quarter ending May 31, 2022, Adobe rang up $4.39 billion in sales, up over 14% against the year-ago level. The company also posted net income of $1.18 billion, up 5.5% on a year-over-year basis.
Further, Adobe features significant strengths in its balance sheet while also beating out several companies in its industry for profitability metrics. Lastly, against a basket of valuation tools, ADBE is considered significantly undervalued, making it one of the tech stocks to buy on discount.
Block (SQ)
Source: Sergei Elagin / Shutterstock.com
Although one of the most innovative firms thanks to its payment platforms and administrative applications that leveled the playing field for small businesses against their larger rivals, Block (NYSE:SQ) — which formerly went by the name Square — has suffered a reverse of fortunes. Since the start of the year, SQ has tumbled, hemorrhaging 59% of market value.
While most commerce-centric tech stocks to buy are hurting from rising inflation along with competitive threats, Block has an even bigger challenge. Prior to the sector meltdown, the financial technology (or fintech) giant made waves when it embraced cryptocurrencies. While such a move may have been shrewd during the industry’s upswing, when cryptos are plummeting — as they did recently — it becomes another story altogether.
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Still, for the long run, SQ is one of the tech stocks to buy on discount. Along with its core payment processor business, Block’s acquisition of buy-now, pay-later platform Afterpay could be significant as we head into a possible recession and consumers look to stretch their dollars.
Tech Stocks to Watch: Nvidia (NVDA)
Source: Shutterstock
Speaking of tech stocks and cryptos, it’s difficult to ignore the current malaise impacting Nvidia (NASDAQ:NVDA). Perhaps best known for making graphics processing units or GPUs, Nvidia has branched out to several innovative fields. But this business diversity hasn’t helped the company avoid market volatility this year. Since January’s opener, NVDA is down about 47%, a staggeringly negative reversal.
However, it’s not too hard to see why many investors panicked out of the tech giant. Crypto miners use Nvidia GPUs – often in stacked rigs – to perform their data transaction operations. However, with the market capitalization of virtual currencies sinking, the risk-reward profile for crypto mining is no longer favorable.
However, our own Louis Navellier remains optimistic about NVDA, giving it a solid “B” rating in his Portfolio Grader. As he pointed out in June of this year, “demand remains strong with its data center segment. Last quarter, this segment saw year-over-year revenue growth of 83%. In fact, it had higher quarterly revenue from its data segment ($3.75 billion) than from its gaming segment ($3.62 billion).”
Sea Ltd. (SE)
Source: Muh.Imron / Shutterstock.com
At this point, I’ve become a broken record when it comes to Sea Ltd (NYSE:SE). A tech conglomerate headquartered in Singapore, Sea offers intriguing opportunities in food deliveries, digital payments and fintech and online game development and publishing. All these sectors have burgeoned to varying degrees in the U.S. so the logical assumption is that they would blossom in Sea’s core Southeast Asia market.
Unfortunately, the equities market doesn’t see it that away. On a YTD basis, SE has tanked more than 65% of value, making it one of the worst performers among the formerly popular tech stocks to buy. Fundamentally, investors are likely looking at earnings viability. While Sea posted revenue growth of 64% for Q1 2022, its net loss of $580 million expanded noticeably from the net loss of $423 million in Q1 2021.
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Naturally, in a possible recessionary storm, companies that lose money don’t attract much attention. However, in the longer run, Southeast Asia’s internet economy could hit $1 trillion by 2030, according to a Reuters report.
Tech Stocks to Watch: Meta Platforms (META)
Source: Blue Planet Studio / Shutterstock.com
A controversial idea among tech stocks to buy on discount, Meta Platforms (NASDAQ:META) recently completed its full corporate transformation, not only changing its name from Facebook but also the ticker symbol (which of course is now META, not FB). However, this rebranding didn’t impress shareholders, with META stock tumbling almost 50% YTD.
It’s a rough first half of the year for a company that is not accustomed to sustained bearishness. While there was the Cambridge Analytica scandal that hit in 2018 – along with the Covid-19 pandemic later in 2020 – these headwinds were relatively short and muted. At the moment, we have a trailing 52-week peak-to-trough profile of around $382 and roughly $156.
In other words, META is getting pretty darn close to the lows seen during the spring doldrums of 2020. For those that felt they missed the boat, this could be a risky contrarian opportunity. While Meta has its controversies, it also has Facebook, with its multi-billion userbase and a wide breadth of demographics that’s unusual for youth-centric social media networks.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 7 Tech Stocks Trading at a Terrific Discount Right Now 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. | Ticker Company Price AAPL Apple $ PYPL PayPal $ ADBE Adobe $ SQ Block $ NVDA Nvidia $ SE Sea Limited $ META Meta $ Tech Stocks to Watch: Apple (AAPL) Source: View Apart / Shutterstock.com Typically, tech stocks levered heavily to the consumer retail market are problematic amid recessionary forces. Nevertheless, Apple (NASDAQ:AAPL) is proving doubters wrong, being a clear winner amid the coronavirus madness. There’s really nothing quite like it, making AAPL one of the intriguing tech stocks to buy on discount. | Ticker Company Price AAPL Apple $ PYPL PayPal $ ADBE Adobe $ SQ Block $ NVDA Nvidia $ SE Sea Limited $ META Meta $ Tech Stocks to Watch: Apple (AAPL) Source: View Apart / Shutterstock.com Typically, tech stocks levered heavily to the consumer retail market are problematic amid recessionary forces. Nevertheless, Apple (NASDAQ:AAPL) is proving doubters wrong, being a clear winner amid the coronavirus madness. There’s really nothing quite like it, making AAPL one of the intriguing tech stocks to buy on discount. | Ticker Company Price AAPL Apple $ PYPL PayPal $ ADBE Adobe $ SQ Block $ NVDA Nvidia $ SE Sea Limited $ META Meta $ Tech Stocks to Watch: Apple (AAPL) Source: View Apart / Shutterstock.com Typically, tech stocks levered heavily to the consumer retail market are problematic amid recessionary forces. Nevertheless, Apple (NASDAQ:AAPL) is proving doubters wrong, being a clear winner amid the coronavirus madness. There’s really nothing quite like it, making AAPL one of the intriguing tech stocks to buy on discount. | Ticker Company Price AAPL Apple $ PYPL PayPal $ ADBE Adobe $ SQ Block $ NVDA Nvidia $ SE Sea Limited $ META Meta $ Tech Stocks to Watch: Apple (AAPL) Source: View Apart / Shutterstock.com Typically, tech stocks levered heavily to the consumer retail market are problematic amid recessionary forces. There’s really nothing quite like it, making AAPL one of the intriguing tech stocks to buy on discount. Nevertheless, Apple (NASDAQ:AAPL) is proving doubters wrong, being a clear winner amid the coronavirus madness. | 4 |
521 | 20,352 | 2022-07-11 00:00:00 UTC | 2 Growth Stocks to Set You Up Through the Market Downturn and Beyond | AAPL | https://www.nasdaq.com/articles/2-growth-stocks-to-set-you-up-through-the-market-downturn-and-beyond | null | null | The stock market officially entered a bear market last month, defined as a 20% decline from a recent high. Currently, the S&P 500 has dropped by 19.6% since the start of 2022.
That makes this a good opportunity to evaluate growth stocks that may have fallen along with the overall market. You'll want to make sure that the companies still have solid prospects. Fortunately, Costco Wholesale (NASDAQ: COST) and Apple (NASDAQ: AAPL) pass muster.
Image source: Getty Images.
Costco
Costco continues to grow revenue and profitability by offering a wide range of products to its members at low unit prices. In its fiscal third quarter ended on May 8, same-store sales (excluding changes in gasoline prices and foreign currency translations) increased by 7.9%.
The big-box retailer's value proposition has garnered a loyal membership, who pay an annual fee. With renewal rates hovering around 90% for years, this indicates that they don't seem to mind paying. Costco also continues to attract new members. It had 64.4 million paid members at the end of the latest fiscal quarter, 6.3% higher than a year ago -- and far higher than the 47.6 million it had at the end of fiscal 2016.
There's also room to expand, with Costco historically opening 20 to 30 new warehouses per year. For the first three quarters of this fiscal year, it opened 14 additional locations, ending the period with 830 warehouses. And it planned to open another 10 in the final three months of this fiscal year.
Loyal customers, attracted by Costco's high-quality goods and services offered at a low price, have led to steadily increasing profits. Despite facing cost pressures like many other retailers, including raising wages for employees, its third-quarter operating profit grew by 7.7% to $1.8 billion.
With the stock price down by about 13% this year, the shares trade at a price-to-earnings (P/E) ratio of 39, down from a 49 multiple in early January.
Apple
Apple sells a range of hugely popular products, such as the iPhone, Mac, iPad, and Apple Watch. It also has a faithful following that has driven top-line increases. Its fiscal second-quarter sales (ended March 26) grew by 8.6% to $97.3 billion.
Its iPhones, accounting for more than half of Apple's sales, continue to see high demand. Second-quarter shipments grew by 8% despite the industry's 11% contraction, allowing Apple's market share to increase from 15% to 18%.
This bodes well for the next version of the phone. While a firm date hasn't been established, based on its past track record, Apple seems poised to release the iPhone 14 in the latter part of this year.
It's not merely releasing popular products without an eye on the bottom line. The company continues to increase profitability. Apple's second-quarter operating income was $30 billion, a 9% increase from a year ago.
Apple's shares have fallen by 18% since the start of 2022. This has caused its P/E multiple to drop to 23 from over 30 during this span.
It's rare for companies with strong prospects to see their stock prices drop. However, that's what has happened with Costco and Apple. This provides a good opportunity to pick up shares in these two growth companies at a discount to where they were selling just a few months ago.
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Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Costco Wholesale. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Fortunately, Costco Wholesale (NASDAQ: COST) and Apple (NASDAQ: AAPL) pass muster. Loyal customers, attracted by Costco's high-quality goods and services offered at a low price, have led to steadily increasing profits. Despite facing cost pressures like many other retailers, including raising wages for employees, its third-quarter operating profit grew by 7.7% to $1.8 billion. | Fortunately, Costco Wholesale (NASDAQ: COST) and Apple (NASDAQ: AAPL) pass muster. It had 64.4 million paid members at the end of the latest fiscal quarter, 6.3% higher than a year ago -- and far higher than the 47.6 million it had at the end of fiscal 2016. Its fiscal second-quarter sales (ended March 26) grew by 8.6% to $97.3 billion. | Fortunately, Costco Wholesale (NASDAQ: COST) and Apple (NASDAQ: AAPL) pass muster. Apple Apple sells a range of hugely popular products, such as the iPhone, Mac, iPad, and Apple Watch. 10 stocks we like better than Costco Wholesale When our award-winning analyst team has a stock tip, it can pay to listen. | Fortunately, Costco Wholesale (NASDAQ: COST) and Apple (NASDAQ: AAPL) pass muster. Apple Apple sells a range of hugely popular products, such as the iPhone, Mac, iPad, and Apple Watch. Its fiscal second-quarter sales (ended March 26) grew by 8.6% to $97.3 billion. | 4 |
522 | 20,357 | 2022-07-09 00:00:00 UTC | Why Are Billionaire Investors Pouring Into This Tiny Tech Stock? | AAPL | https://www.nasdaq.com/articles/why-are-billionaire-investors-pouring-into-this-tiny-tech-stock | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When billionaire investors buy stocks, I pay attention. After all, those billionaire investors became billionaires for one reason: They’re good at investing. They know how to turn a mega profit by buying stocks. So, if they’re all buying a particular stock at a certain time, it’s probably smart to buy that stock, too. And right now, folks, multiple billionaire investors and funds are pouring into a single tiny tech stock in the synthetic biology revolution.
Source: whiteMocca / Shutterstock
Specifically, over the past two weeks, one well-to-do investor bought more than 60 million shares of this tiny stock. And another manager of a multi-billion-dollar fund scooped up nearly 4 million shares. This follows a big move from just a few months ago by a different multi-hundred-billion-dollar fund. It bought about 50 million shares of the company at the time.
The so-called “smart money” has spoken. They love this tech stock.
Why? Because, quite frankly, it could be the next Microsoft (MSFT).
Seriously — this is an early-stage company founded by some of the smartest people on the planet. And its groundbreaking technology could fundamentally reshape society over the next few years.
It may be the most promising tech startup in the world today. And, yet, virtually no one is talking about it…
Except, of course, for the billionaire investors buying it.
Today, it’s your turn to learn about the groundbreaking industry behind it and why it could be the next big “home-run” investment.
The Computing Revolution Changed the World over the Past 50 Years
The world has changed a lot over the past 40 years. And most of those changes have revolved around one important innovation: the computer.
Back in the 1980s, the world was astounded by this profound innovation. Theoretically, you could program them to do any task. In time, these computers became more powerful, and their underlying code became more robust. And humans started to use them for everything from working, to communicating, to playing.
And so, the Computing Revolution went mainstream.
It’s no coincidence that all of today’s trillion-dollar companies are, in some way, computing companies.
Microsoft makes computers. So does Apple (AAPL). Meta (META) builds applications for use on computers, as does Alphabet (GOOG, GOOGL). Nvidia (NVDA) makes chips for computers. Intel (INTC) does, too. Unsurprisingly, those stocks have all turned their early investors into millionaires.
In short, the computer changed our lives profoundly over the past 40 years. The computing companies pioneering those changes have become the world’s most powerful businesses. And their shareholders have become the world’s wealthiest people.
But why am I telling you all this?
Because today, we face another technological revolution that could be as big as the computing revolution – if not bigger.
The Computing Revolution 2.0
In many ways, the new technological revolution I’m talking about is the Computing Revolution 2.0.
That’s because it’s basically the computing revolution of the past 40 years but applied to living things instead.
I’m talking about rewriting the code of life through an emerging technology field called Synthetic Biology. It’s a much bigger undertaking than rewriting the code of machines.
I know. It sounds crazy. But scientifically speaking, it’s entirely plausible. Moreover, it’s happening right now as you read this.
Recall Biology 101. Structurally speaking, a cell is just like a computer. It’s a very powerful machine that runs on “digital code.” The only difference is that a computer’s code is in ones and zeros. And a cell’s “code” is in Gs, Cs, As, and Ts — the four nucleobases in DNA’s nucleic acid.
Source: Shutterstock
So, in theory, we can manipulate the code of life by changing the nucleobases’ order. And it’s just like manipulating computer code by changing the order of ones and zeros in the codebase.
Therefore, we can “code” living things much in the same way we can “code” inanimate objects, like phones and computers.
That’s what synthetic biology is all about: programming cells how we program computers — by changing the DNA code inside them.
If you’re reading that and thinking it sounds like a profound undertaking, you’re not wrong. It is a profound undertaking — with profound economic implications.
World-Changing Potential
I probably don’t need to state this, but I will just to be abundantly clear. The emerging field of synthetic biology has world-changing potential.
Over the past 50 years, we figured out how to manipulate the code of inanimate objects. Look how much that changed the world. Now we’re figuring out how to manipulate life’s code.
If you thought the computing revolution changed the world, you haven’t seen anything yet…
Synthetic biology allows us to manipulate crops’ code so that they’re pest-resistant or plants’ code so that they’re weather-tolerant. We can manipulate the code of cancer patients to get rid of their cancer. And we can manipulate yeast’s code to produce better-tasting beer.
Indeed, synthetic biology may actually be the solution to the myriad problems the world is facing today!
For example, take soaring gas prices. They’re a byproduct of American and European reliance on Russian oil. Such reliance could be solved by synthetic biology. We could employ it to manipulate the code of oil and natural gas to make it far more effective and plentiful. And with these next-gen fossil fuels, we could entirely eliminate our reliance on foreign oil and gas.
Or how about those soaring grocery prices? That, too, is a byproduct of American and European reliance on Russian wheat. Yet again, synthetic biology could solve that problem. We could employ advanced synbio techniques to improve domestic wheat yields and boost domestic production. Then we’d make enough wheat stateside to not need any imports from Russia. Problem solved!
The list goes on and on. Synthetic biology won’t just change the world. It has the potential to solve most of the world’s current problems!
As I said earlier, the opportunity in this emerging industry is both enormous and urgent.
And at the center of this fast-moving, multi-trillion-dollar technological revolution is one penny stock with gigantic potential.
Why Now for This Tech Stock?
Before I tell you about that stock, let me first state that synthetic biology is not a new concept.
But for years, it has been just that – a concept – and nothing more.
That’s because rewriting the code of life, as you can imagine, is quite complex. The human body is a wonder. It’s infinitely more complex than a computer. Each human has a different “code.” And each living specimen — plant, crop, fish — has a different “code” than humans do.
Source: Shutterstock
To read all those different codes, you need to employ advanced DNA sequencing methods. And they’re among the most complex in the world. Then, to rewrite those codes, you need to use DNA synthesis or printing. And that’s so complex that it makes sequencing look like child’s play.
In short, the universe of synthetic biology is magnitudes more infinite and complex than that of classical computing. So, while we’ve made huge advancements in programming computers over the past 40 years, we’ve made little progress programming cells…
Until now.
Recent advancements in artificial intelligence have sped up the DNA sequencing process. And innovations in classical computing technologies have improved the accuracy of DNA synthesis and printing. This combination has enabled synthetic biology to work in the real world.
Right now, as you read this, food companies are leveraging synthetic biology to create pest-resistant crops. Beer companies are using it to create higher-yielding yeast. And biotech companies are using synbio to make new vaccines and medicines.
So begins the Synthetic Biology Revolution — the biggest technological paradigm shift since the advent of the computer.
The Final Word on a Tiny Tech Stock
At the center of this revolution is one of the most promising tech startups in the world today.
It’s a company that was founded by the world’s most pioneering experts in this field. And it’s backed by some of the biggest and most successful venture capital firms of all time.
The company has developed unique and groundbreaking technology that deals directly with the AI mechanisms that power this whole revolution.
Frankly, its tech is unrivaled. And it’s using it to change the world today via a multitude of partnerships with big food and pharma companies.
This company, folks, is the “next big thing.” It’s the Microsoft of the Synthetic Biology Revolution.
A mere $10,000 investment in Microsoft in its early days would be worth millions of dollars today.
And I believe that a $10,000 investment in this tech stock today could be worth millions of dollars in the future.
Mark my words. This is a stock you need to hear about today.
Fortunately, it’s one I also want to tell you about today.
So, to hear more about the explosive tech stock that billionaires are buying – and the world-changing revolution that it’s pioneering – click here.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post Why Are Billionaire Investors Pouring Into This Tiny Tech Stock? 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. | So does Apple (AAPL). And right now, folks, multiple billionaire investors and funds are pouring into a single tiny tech stock in the synthetic biology revolution. Source: whiteMocca / Shutterstock Specifically, over the past two weeks, one well-to-do investor bought more than 60 million shares of this tiny stock. | So does Apple (AAPL). And right now, folks, multiple billionaire investors and funds are pouring into a single tiny tech stock in the synthetic biology revolution. I’m talking about rewriting the code of life through an emerging technology field called Synthetic Biology. | So does Apple (AAPL). The Computing Revolution Changed the World over the Past 50 Years The world has changed a lot over the past 40 years. The Computing Revolution 2.0 In many ways, the new technological revolution I’m talking about is the Computing Revolution 2.0. | So does Apple (AAPL). The Computing Revolution Changed the World over the Past 50 Years The world has changed a lot over the past 40 years. That’s what synthetic biology is all about: programming cells how we program computers — by changing the DNA code inside them. | 4 |
523 | 20,364 | 2022-07-08 00:00:00 UTC | Netflix (NFLX) Adds Spatial Audio to Select Movies and Shows | AAPL | https://www.nasdaq.com/articles/netflix-nflx-adds-spatial-audio-to-select-movies-and-shows | null | null | Netflix NFLX has announced that it will begin rolling out the spatial audio feature to all devices globally, in an attempt to enhance the user listening experience for select original titles.
The popular streaming service has partnered with German audio brand, Sennheiser, to bring the feature to all Netflix users, irrespective of device and streaming plan. The new feature will work without the use of any extra accessories or equipment and will be particularly noticeable to those who use headphones.
While the platform already supports 4K, HDR, Dolby Atmos and Netflix Calibrated Mode for a great viewing experience, the spatial audio support will give viewers a cinematic experience at home.
Netflix has made it even easier to find movies and TV shows that do support the new audio feature. Users can simply search for “spatial audio” in the search bar and select a show or film that supports the same from the search results.
Popular Netflix original show Stranger Things, is one of the first shows to be supported by spatial audio. Other supported content includes Red Notice, The Witcher, Raising Dion, Castlevania, Interceptor, Lock & Key and The Haunting of Bly Manor.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
Netflix Joins Other Streamers Offering Spatial Audio Support
This Zacks Rank #3 (Hold) company’s launch of the long-awaited audio feature brings it into the league of rivals including Amazon AMZN, Apple AAPL, Disney DIS and Hulu, all of which offer spatial audio support for compatible movies and TV shows. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In October, last year, Amazon’s music streaming service, Amazon Music, made its music compatible in spatial audio available on multiple devices for Unlimited tier subscribers.
Disney+ subscribers using Apple devices such as Apple TV, iPad, or iPhone can enhance the listening experience through spatial audio while watching action films and TV shows like Avengers: Endgame, The Mandalorian Mulan, Onward and Star Wars: The Force Awakens, among others.
Netflix added support for Apple's spatial audio in August 2021. Apple's system works only with AirPods Pro, AirPods Max and AirPods 3 on Apple TV 4K, Mac, iPad and iPhone. Netflix will continue to use Apple's system on Apple devices.
However, the Netflix implementation will not support the head-tracking aspect, which gives the sound output a sense of direction, noticeable when you move your head around. Furthermore, if a user is watching Netflix content on an iPhone, iPad or Apple TV, spatial audio will only be available if the sound quality is set to “High” or “Auto.”
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote Netflix Joins Other Streamers Offering Spatial Audio Support This Zacks Rank #3 (Hold) company’s launch of the long-awaited audio feature brings it into the league of rivals including Amazon AMZN, Apple AAPL, Disney DIS and Hulu, all of which offer spatial audio support for compatible movies and TV shows. Apple Inc. (AAPL): Free Stock Analysis Report Netflix NFLX has announced that it will begin rolling out the spatial audio feature to all devices globally, in an attempt to enhance the user listening experience for select original titles. | Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote Netflix Joins Other Streamers Offering Spatial Audio Support This Zacks Rank #3 (Hold) company’s launch of the long-awaited audio feature brings it into the league of rivals including Amazon AMZN, Apple AAPL, Disney DIS and Hulu, all of which offer spatial audio support for compatible movies and TV shows. Apple Inc. (AAPL): Free Stock Analysis Report In October, last year, Amazon’s music streaming service, Amazon Music, made its music compatible in spatial audio available on multiple devices for Unlimited tier subscribers. | Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote Netflix Joins Other Streamers Offering Spatial Audio Support This Zacks Rank #3 (Hold) company’s launch of the long-awaited audio feature brings it into the league of rivals including Amazon AMZN, Apple AAPL, Disney DIS and Hulu, all of which offer spatial audio support for compatible movies and TV shows. Apple Inc. (AAPL): Free Stock Analysis Report While the platform already supports 4K, HDR, Dolby Atmos and Netflix Calibrated Mode for a great viewing experience, the spatial audio support will give viewers a cinematic experience at home. | Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote Netflix Joins Other Streamers Offering Spatial Audio Support This Zacks Rank #3 (Hold) company’s launch of the long-awaited audio feature brings it into the league of rivals including Amazon AMZN, Apple AAPL, Disney DIS and Hulu, all of which offer spatial audio support for compatible movies and TV shows. Apple Inc. (AAPL): Free Stock Analysis Report This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year. | 3 |
524 | 20,375 | 2022-07-07 00:00:00 UTC | ITOT, XDQQ: Big ETF Inflows | AAPL | https://www.nasdaq.com/articles/itot-xdqq%3A-big-etf-inflows | null | null | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, which added 13,000,000 units, or a 2.7% increase week over week. Among the largest underlying components of ITOT, in morning trading today Apple is up about 2%, and Microsoft is higher by about 0.9%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the XDQQ ETF, which added 200,000 units, for a 40.0% increase in outstanding units.
VIDEO: ITOT, XDQQ: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, which added 13,000,000 units, or a 2.7% increase week over week. Among the largest underlying components of ITOT, in morning trading today Apple is up about 2%, and Microsoft is higher by about 0.9%. VIDEO: ITOT, XDQQ: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, which added 13,000,000 units, or a 2.7% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the XDQQ ETF, which added 200,000 units, for a 40.0% increase in outstanding units. VIDEO: ITOT, XDQQ: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, which added 13,000,000 units, or a 2.7% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the XDQQ ETF, which added 200,000 units, for a 40.0% increase in outstanding units. VIDEO: ITOT, XDQQ: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, which added 13,000,000 units, or a 2.7% increase week over week. Among the largest underlying components of ITOT, in morning trading today Apple is up about 2%, and Microsoft is higher by about 0.9%. And on a percentage change basis, the ETF with the biggest increase in inflows was the XDQQ ETF, which added 200,000 units, for a 40.0% increase in outstanding units. | 4 |
525 | 20,386 | 2022-07-06 00:00:00 UTC | Apple Stock Remains a Buy As the iPhone Turns 15 | AAPL | https://www.nasdaq.com/articles/apple-stock-remains-a-buy-as-the-iphone-turns-15 | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It was 15 years ago that Apple (NASDAQ:AAPL) released the first iPhone. With a 3.5-inch display, 3G connectivity, 4GB of base storage, 8-hour battery life and a $499 starting price, the iPhone would quickly disrupt the mobile phone industry. The iPhone marked the point where Apple transformed from a PC maker (that had also had success with the iPod) to a consumer electronics company. It also marked the start of an era of massive growth for AAPL stock.
To put things in some perspective, Apple’s market capitalization in 2006 — the year before the iPhone went on sale — was about $73 billion. Today, even with AAPL stock down 22% since the start of the year, Apple’s market cap is nearly $2.3 trillion.
Fifteen years after its release, the iPhone still drives massive business for Apple. With AAPL stock down and the iPhone 14 due to be released in September, now is a good time to buy Apple stock. Even better considering the company has what could be its next game-changing product waiting in the wings.
Ticker Company Current Price
AAPL Apple $141.61
The iPhone Is Still a Massive Revenue Driver
The days of massive growth in iPhone sales are over. The market has matured so, unlike 15 years ago, there is no mad rush by consumers to move from feature cell phones to a smartphone like the iPhone. However, the iPhone is still big business for Apple. In the last quarter, the company sold over $50 billion worth of them. Users still upgrade their phones (although the replacement cycle has grown longer) and 5G is driving many users to buy new iPhones.
In September, the company will release the iPhone 14 series. The company is reportedly expecting to move 220 million units this year.
7 Best Fintech Stocks to Buy in July
It’s not just the direct revenue Apple gets from iPhone sales that investors should be watching. It’s the additional money coming into the company’s coffers courtesy of iPhone owns. In 2021, Apple CEO Tim Cook said there were over 1 billion iPhones in active use. Those iPhone owners are a huge part of app sales, Apple Music subscriptions and other services that brought in nearly $20 billion last quarter. Regardless of the number of iPhones Apple sells, that Services division revenue continues to flow. That is a big plus for the APPL stock ownership argument.
Apple Poised to Release New, Game-Changing Product
Another reason to buy AAPL stock now is its product pipeline. As I wrote back in May, 2022 is expected to be a huge year for new Apple product releases. That has already begun with key launches like the all-new M2 MacBook Air. It will continue with the iPhone 14 series in September. There will be more, including a new Apple Watch version and expectations for everything from new AirPods to a new Mac Pro.
But the next big shoe to drop is looking like early next year. That’s when Apple is expected to launch its long-awaited AR headset. The company has already shown off a version to its board of directors. An AR headset would be the culmination of Apple’s strategy of building augmented reality that began in 2017 with the release of ARKit development software.
Apple’s AR headset could be the next iPod or iPhone, the must-have device that disrupts established players in the market. With the metaverse projected to be a multi-trillion dollar market, an Apple AR headset could potentially drive AAPL stock growth to new levels.
Should You Buy AAPL Stock?
Apple is far from immune from the macroeconomic forces that have battered so may tech stocks in 2022. If you buy Apple stock now, there’s no guarantee you won’t see continued volatility.
However, if you’re in it for the long term, AAPL stock earns a “B” rating in Portfolio Grader. Ongoing demand for iPhones and the added revenue iPhone owners generate will continue to provide a solid foundation for Apple’s value. With the next big thing potentially around the corner, that only adds to the case for growth investors to buy AAPL stock now.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
The post Apple Stock Remains a Buy As the iPhone Turns 15 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. | With the metaverse projected to be a multi-trillion dollar market, an Apple AR headset could potentially drive AAPL stock growth to new levels. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It was 15 years ago that Apple (NASDAQ:AAPL) released the first iPhone. It also marked the start of an era of massive growth for AAPL stock. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips It was 15 years ago that Apple (NASDAQ:AAPL) released the first iPhone. With the metaverse projected to be a multi-trillion dollar market, an Apple AR headset could potentially drive AAPL stock growth to new levels. With the next big thing potentially around the corner, that only adds to the case for growth investors to buy AAPL stock now. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips It was 15 years ago that Apple (NASDAQ:AAPL) released the first iPhone. With AAPL stock down and the iPhone 14 due to be released in September, now is a good time to buy Apple stock. Ticker Company Current Price AAPL Apple $141.61 The iPhone Is Still a Massive Revenue Driver The days of massive growth in iPhone sales are over. | Should You Buy AAPL Stock? InvestorPlace - Stock Market News, Stock Advice & Trading Tips It was 15 years ago that Apple (NASDAQ:AAPL) released the first iPhone. It also marked the start of an era of massive growth for AAPL stock. | 4 |
526 | 20,405 | 2022-07-05 00:00:00 UTC | EU lawmakers pass landmark tech rules, but enforcement a worry | AAPL | https://www.nasdaq.com/articles/eu-lawmakers-pass-landmark-tech-rules-but-enforcement-a-worry | null | null | By Foo Yun Chee
BRUSSELS, July 5 (Reuters) - EU lawmakers gave the thumbs up on Tuesday to landmark rules to rein in the power of tech giants such as Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O, Facebook FB.O and Microsoft MSFT.O, but enforcing them could be an issue due to regulators' limited resources.
In addition to the rules known as the Digital Markets Act (DMA), lawmakers also approved the Digital Services Act (DSA), which requires online platforms to do more to police the internet for illegal content.
Companies face fines of up to 10% of annual global turnover for DMA violations and 6% for DSA breaches. Lawmakers and EU states had reached a political deal on both sets of rules earlier this year, leaving some details to be ironed out.
The two rule books for Big Tech built on EU antitrust chief Margrethe Vestager's experiences with investigations into the companies. She has set up an DMA taskforce, with about 80 officials expected to join up, which critics say is inadequate.
Lawmaker Andreas Schwab, who steered the issue through the European Parliament, has called for a bigger taskforce to counter Big Tech's deep pockets.
European Consumer Organisation (BEUC) echoed the same worries.
"We raised the alarm last week with other civil society groups that if the Commission does not hire the experts it needs to monitor Big Tech's practices in the market, the legislation could be hamstrung by ineffective enforcement," BEUC Deputy Director General Ursula Pachl said in a statement.
The DMA is set to force changes in companies' businesses, requiring them to make their messaging services interoperable and provide business users access to their data.
Business users would be able to promote competing products and services on a platform and reach deals with customers off the platforms.
Companies will not be allow to favour their own services over rivals' or prevent users from removing pre-installed software or apps, two rules that will hit Google and Apple hard.
The DSA bans targeted advertising aimed at children or based on sensitive data such as religion, gender, race and political opinions. Dark patterns, which are tactics that mislead people into giving personal data to companies online, will also be prohibited.
(Reporting by Foo Yun Chee; Editing by Alex Richardson)
((foo.yunchee@thomsonreuters.com; +32 2 287 6844; Reuters Messaging: foo.yunchee.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 Foo Yun Chee BRUSSELS, July 5 (Reuters) - EU lawmakers gave the thumbs up on Tuesday to landmark rules to rein in the power of tech giants such as Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O, Facebook FB.O and Microsoft MSFT.O, but enforcing them could be an issue due to regulators' limited resources. "We raised the alarm last week with other civil society groups that if the Commission does not hire the experts it needs to monitor Big Tech's practices in the market, the legislation could be hamstrung by ineffective enforcement," BEUC Deputy Director General Ursula Pachl said in a statement. Companies will not be allow to favour their own services over rivals' or prevent users from removing pre-installed software or apps, two rules that will hit Google and Apple hard. | By Foo Yun Chee BRUSSELS, July 5 (Reuters) - EU lawmakers gave the thumbs up on Tuesday to landmark rules to rein in the power of tech giants such as Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O, Facebook FB.O and Microsoft MSFT.O, but enforcing them could be an issue due to regulators' limited resources. In addition to the rules known as the Digital Markets Act (DMA), lawmakers also approved the Digital Services Act (DSA), which requires online platforms to do more to police the internet for illegal content. Lawmakers and EU states had reached a political deal on both sets of rules earlier this year, leaving some details to be ironed out. | By Foo Yun Chee BRUSSELS, July 5 (Reuters) - EU lawmakers gave the thumbs up on Tuesday to landmark rules to rein in the power of tech giants such as Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O, Facebook FB.O and Microsoft MSFT.O, but enforcing them could be an issue due to regulators' limited resources. In addition to the rules known as the Digital Markets Act (DMA), lawmakers also approved the Digital Services Act (DSA), which requires online platforms to do more to police the internet for illegal content. The DMA is set to force changes in companies' businesses, requiring them to make their messaging services interoperable and provide business users access to their data. | By Foo Yun Chee BRUSSELS, July 5 (Reuters) - EU lawmakers gave the thumbs up on Tuesday to landmark rules to rein in the power of tech giants such as Alphabet GOOGL.O unit Google, Amazon AMZN.O, Apple AAPL.O, Facebook FB.O and Microsoft MSFT.O, but enforcing them could be an issue due to regulators' limited resources. Companies face fines of up to 10% of annual global turnover for DMA violations and 6% for DSA breaches. Business users would be able to promote competing products and services on a platform and reach deals with customers off the platforms. | 3 |
527 | 20,412 | 2022-07-04 00:00:00 UTC | Why Shares in Berkshire Hathaway Fell in June | AAPL | https://www.nasdaq.com/articles/why-shares-in-berkshire-hathaway-fell-in-june | null | null | What happened
Shares in Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) declined by 13.7% in June, underperforming the benchmark S&P 500 index's decline of 8.4%. The place to start when looking at why is by analyzing what's in the Berkshire Hathaway portfolio. So here's a table of all the holdings above 3% in the portfolio as of March 2022.
COMPANY
SECTOR
PORTFOLIO WEIGHT
Apple
Consumer electronics
42.1%
Bank of America
Bank
11.3%
American Express
Financial services
8%
Chevron
Energy
7%
Coca-Cola
Consumer staples
7%
Occidental Petroleum
Energy
3.6%
Kraft Heinz
Consumer staples
3.5%
Data source: Berkshire Hathaway SEC filings.
As you can see below, Apple's performance in June was pretty much in line with the market, and the leading consumer staples stocks (Coca-Cola and Kraft Heinz) outperformed the market. However, the finance and energy stocks significantly underperformed. For reference, Berkshire holds a further 7% in banking and finance stocks.
Data by YCharts
The performance in June marks a reversal of fortune because, going into the month, Berkshire Hathaway was up in 2022 with a 5.2% gain compared to a 13.3% decline in the index. In addition, energy and consumer staples led outperformance to the start of June.
So what
The reversal in Berkshire Hathaway's performance reflects the shift in the market's mood more than any fundamental change in the long-term prospects of the companies in the portfolio. Speculators likely bought into the type of stocks seen as benefiting from inflationary trends (energy) and kept buying until the Federal Reserve acted aggressively to combat inflation by hiking rates.
However, as the market anticipated and then digested the Federal Reserve rate hike in the middle of June, it sold off the "inflation plays" as well as the cyclical, banking, and financial stocks. The idea is that rising rates will make spending and investment more expensive, meaning end-market demand will tail off.
Now what
The market will do one thing, and Buffett will do another. Reacting to near-term market movements and trying to trade sentiment and mood changes among investors is rarely a winning strategy over the long term. Indeed, Buffett's success as an investor lies precisely in avoiding this kind of knee-jerk trading. Instead, Buffett tends to favor buying and holding companies for their long-term fundamental earnings power. And while the market is panicking, it's worth noting that Berkshire Hathaway is only down 1% on a year-over-year basis. Something to consider.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends Kraft Heinz and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Data by YCharts The performance in June marks a reversal of fortune because, going into the month, Berkshire Hathaway was up in 2022 with a 5.2% gain compared to a 13.3% decline in the index. Speculators likely bought into the type of stocks seen as benefiting from inflationary trends (energy) and kept buying until the Federal Reserve acted aggressively to combat inflation by hiking rates. However, as the market anticipated and then digested the Federal Reserve rate hike in the middle of June, it sold off the "inflation plays" as well as the cyclical, banking, and financial stocks. | Apple Consumer electronics 42.1% Bank of America Bank 11.3% American Express Financial services 8% Chevron Energy 7% Coca-Cola Consumer staples 7% Occidental Petroleum Energy 3.6% Kraft Heinz Consumer staples 3.5% Data source: Berkshire Hathaway SEC filings. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool recommends Kraft Heinz and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | Apple Consumer electronics 42.1% Bank of America Bank 11.3% American Express Financial services 8% Chevron Energy 7% Coca-Cola Consumer staples 7% Occidental Petroleum Energy 3.6% Kraft Heinz Consumer staples 3.5% Data source: Berkshire Hathaway SEC filings. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool recommends Kraft Heinz and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | So what The reversal in Berkshire Hathaway's performance reflects the shift in the market's mood more than any fundamental change in the long-term prospects of the companies in the portfolio. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). | 3 |
528 | 20,418 | 2022-07-03 00:00:00 UTC | Validea's Top Five Technology Stocks Based On Warren Buffett - 7/3/2022 | AAPL | https://www.nasdaq.com/articles/valideas-top-five-technology-stocks-based-on-warren-buffett-7-3-2022 | null | null | The following are the top rated Technology stocks according to Validea's 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 according to our strategy based on Warren Buffett 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.
Company Description: Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. The Company's products include iPhone, Mac, iPad, and Wearables, Home and Accessories. iPhone is the Company's line of smartphones based on its iOS operating system. Mac is the Company's line of personal computers based on its macOS operating system. iPad is the Company's line of multi-purpose tablets based on its iPadOS operating system. Wearables, Home and Accessories includes AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch and other Apple-branded and third-party accessories. AirPods are the Company's wireless headphones that interact with Siri. Apple Watch is the Company's line of smart watches. Its services include Advertising, AppleCare, Cloud Services, Digital Content and Payment Services. Its customers are primarily in the consumer, small and mid-sized business, education, enterprise and government markets.
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
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COPART, INC. (CPRT) is a large-cap growth stock in the Computer Services industry. The rating according to our strategy based on Warren Buffett is 99% 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.
Company Description: Copart, Inc. (Copart) is a provider of online auctions and vehicle remarketing services with operations in the United States (U.S.), Canada, the United Kingdom (U.K.), Brazil, the Republic of Ireland, Germany, Finland, the United Arab Emirates (U.A.E.), Oman, Bahrain, and Spain. The Company operates through two segments: United States and International. The Company provides vehicle sellers with a range of services to process and sell vehicles primarily over the Internet through its virtual bidding third generation Internet auction-style sales technology (VB3). Its vehicle sellers consist primarily of insurance companies, but also include banks, finance companies, charities, fleet operators, dealers and from individuals. It sells the vehicles to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, exporters, and in some jurisdictions, to the general public.
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: NEUTRAL
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of COPART, INC.
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EPAM SYSTEMS INC (EPAM) is a large-cap growth stock in the Computer Services industry. The rating according to our strategy based on Warren Buffett is 99% 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.
Company Description: EPAM Systems, Inc. is a digital transformation services provider, which delivers end-to-end value to its customers. The Company provides services through software solutions, integrated advisory, business consulting and design. The Company maintains a group of testing and quality assurance professionals with experience across a range of technology platforms and industry verticals. This group performs software application testing, test management, automation and consulting services focused on helping customers improve their existing software testing and quality assurance practices. It has integrated consulting teams across business, experience, technology and data. The functional business is engaged in technology platforms and their interactions, as well as the application of data science and machine learning, to deliver insights into its customers' business. Its digital and service design practice provides strategy, design, creative and program management services for customers.
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: NEUTRAL
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of EPAM SYSTEMS INC
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ACCENTURE PLC (ACN) is a large-cap growth stock in the Computer Services industry. The rating according to our strategy based on Warren Buffett is 93% 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.
Company Description: Accenture plc is a professional services company, providing a range of services in strategy and consulting, interactive, technology and operations. It also provides network engineering, operations and services. Its segments include Communications, Media and Technology; Financial Services; Health and Public Service; Products, and Resources. The Communications, Media & Technology segment serves communications, electronics, technology, media and entertainment industries. The Financial Services segment serves banking, capital markets and insurance industries. The Health & Public service segment serves healthcare payers and providers, and government departments and agencies, public service organizations, educational institutions and non-profit organizations. The Resources segment serves chemicals, energy, forest products, metals and mining, utilities and related industries. It offers digital advertising services. It also provides companies with content creation production and distribution.
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 ACCENTURE PLC
Full Guru Analysis for ACN>
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MICROSOFT CORPORATION (MSFT) is a large-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Warren Buffett is 93% 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.
Company Description: Microsoft Corporation is a technology company. The Company develops and supports a range of software products, services, devices, and solutions. The Company's segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Company's products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; and video games. It also designs, manufactures, and sells devices, including personal computers (PCs), tablets, gaming and entertainment consoles, other intelligent devices, and related accessories. It offers an array of services, including cloud-based solutions that provide customers with software, services, platforms, and content, and it provides solution support and consulting services. It markets and distributes its products and services through original equipment manufacturers, direct, and distributors and resellers.
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 MICROSOFT CORPORATION
Full Guru Analysis for MSFT>
Full Factor Report for MSFT>
More details on Validea's Warren Buffett strategy
Warren Buffett Stock Ideas
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.
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. Detailed Analysis of APPLE INC Full Guru Analysis for AAPL> Full Factor Report for AAPL> COPART, INC. (CPRT) is a large-cap growth stock in the Computer Services industry. The following are the top rated Technology stocks according to Validea's 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. Detailed Analysis of APPLE INC Full Guru Analysis for AAPL> Full Factor Report for AAPL> COPART, INC. (CPRT) is a large-cap growth stock in the Computer Services industry. Detailed Analysis of EPAM SYSTEMS INC Full Guru Analysis for EPAM> Full Factor Report for EPAM> ACCENTURE PLC (ACN) is a large-cap growth stock in the Computer Services industry. | APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Detailed Analysis of APPLE INC Full Guru Analysis for AAPL> Full Factor Report for AAPL> COPART, INC. (CPRT) is a large-cap growth stock in the Computer Services industry. Detailed Analysis of EPAM SYSTEMS INC Full Guru Analysis for EPAM> Full Factor Report for EPAM> ACCENTURE PLC (ACN) is a large-cap growth stock in the Computer Services industry. | APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Detailed Analysis of APPLE INC Full Guru Analysis for AAPL> Full Factor Report for AAPL> COPART, INC. (CPRT) is a large-cap growth stock in the Computer Services industry. Company Description: Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. | 4 |
529 | 20,423 | 2022-07-02 00:00:00 UTC | Why Texas Instruments Is a Great Stock in the Current Market Environment | AAPL | https://www.nasdaq.com/articles/why-texas-instruments-is-a-great-stock-in-the-current-market-environment | null | null | Worries about the economy have influenced the attitudes of consumers and investors alike. Many believe we will soon enter a recession (if we have not entered one already), and some fear stagflation, a combination of high inflation and unemployment, reminiscent of the 1970s.
However, even if the economy experiences stagflation, low-cost dividend stocks can do well in such an environment. One of these stocks is Texas Instruments (NASDAQ: TXN).
The case for Texas Instruments
Texas Instruments produces analog and embedded chips. These semiconductors do not receive as much attention as higher-end processors made by the likes of Nvidia and AMD. Still, digital chips can only represent zeros and ones. Analog chips can recognize continuous signals, which means that digital semiconductors need analog chips to function. These processors function as a bridge between the crisply defined digital world and the messy, complex realm of real-world data. This makes Texas Instruments' products essential to the latest technological advancements.
That need for chips will probably increase, which should help the stock even if stagflation weighs on growth. Fortune Business Insights forecasts a compound annual growth rate of 9% for the semiconductor industry through 2029. That means its size will grow from $483 billion today to an estimated $893 billion by that year.
Also, a book of business that claims around 80,000 products and 100,000 customers keeps the performance of this enterprise solid. About 62% of its revenue came from the industrial and automotive sectors in 2021.
Additionally, it also supports other business segments, and 24% of its revenue came from personal electronics last year. One customer, widely believed to be Apple, accounted for 9% of its revenue in 2021 and similar percentages in previous years.
How Texas Instruments holds up financially
Texas Instruments claims a substantial share of the chip market. In 2021, it generated $18.3 billion in revenue, a 27% year-over-year increase.
Still, the economic environment has affected the company. In the first quarter, revenue came in at $4.9 billion. At a 14% rate of increase from year-ago levels, growth was robust but slower. Net income during that period grew 26% to $2.2 billion as the company reduced its cost of revenue during that time by 2%.
Still, the pain will not end immediately as the company forecasts second-quarter revenue of between $4.2 billion and $4.8 billion. This modest forecast could mean declining revenue for a time as the company reported $4.58 billion in revenue in the second quarter of 2021. The recent stock price action could also reflect the struggles in its approximate 25% decline from its peak of $202 per share in October.
Nonetheless, investors should consider Texas Instruments' massive growth since the 2008-09 financial crisis. During that time, the stock generally rose in a sustained upward move after bottoming at just under $14 per share in March 2009. Given the forecast industry growth, the increases will probably resume longer term.
Moreover, Texas Instruments also trades at around 17 times earnings. In comparison, Analog Devices, one of its closest competitors, currently supports a 40 price-to-earnings (P/E) ratio. Also, as profits grow, the P/E ratio will fall, a factor that could serve as a catalyst even in a less-robust economic climate.
Additionally, the company's dividend growth should make Texas Instruments an excellent source of passive income in most market environments. The payout grew at a compound annual rate of 25% between 2004 and 2021. The annual dividend has grown to $4.60 per year, a cash yield of about 3% at current prices. That payout growth could help an investment pay off regardless of any near-term price action.
Consider the stock
In the end, investors would probably drive positive, long-term returns in Texas Instruments stock, regardless of how the overall market behaves. Indeed, the stock has fallen along with other semiconductor stocks. Moreover, the possibility of stagflation is not a positive for stocks overall.
However, with positive long-term growth still predicted, those slowdowns are likely temporary. As semiconductor demand grows and Texas Instruments' chips appear in more products, its low multiple and fast-growing dividend should attract investors regardless of the overall market.
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Will Healy has positions in Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Texas Instruments. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | These processors function as a bridge between the crisply defined digital world and the messy, complex realm of real-world data. Additionally, the company's dividend growth should make Texas Instruments an excellent source of passive income in most market environments. As semiconductor demand grows and Texas Instruments' chips appear in more products, its low multiple and fast-growing dividend should attract investors regardless of the overall market. | How Texas Instruments holds up financially Texas Instruments claims a substantial share of the chip market. Additionally, the company's dividend growth should make Texas Instruments an excellent source of passive income in most market environments. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Texas Instruments. | The case for Texas Instruments Texas Instruments produces analog and embedded chips. How Texas Instruments holds up financially Texas Instruments claims a substantial share of the chip market. Consider the stock In the end, investors would probably drive positive, long-term returns in Texas Instruments stock, regardless of how the overall market behaves. | Consider the stock In the end, investors would probably drive positive, long-term returns in Texas Instruments stock, regardless of how the overall market behaves. Indeed, the stock has fallen along with other semiconductor stocks. Moreover, the possibility of stagflation is not a positive for stocks overall. | 4 |
530 | 20,438 | 2022-07-01 00:00:00 UTC | 3 Reasons to Sell a Stock, and 1 Big Reason Not To | AAPL | https://www.nasdaq.com/articles/3-reasons-to-sell-a-stock-and-1-big-reason-not-to | null | null | If you're a buy-and-hold investor, it's easy to push the topic of selling aside. After all, if you're investing well, you'll hopefully rarely be selling.
That being said, it's important to understand when you should sell a stock, even if the scenarios are few and far between.
Image source: Getty images.
Reason No. 1: You were wrong
This one is the hardest to come to terms with. But being wrong about a thesis for a company from time to time is just part of the process of investing. Being able to recognize your erroneous thesis early is key to mitigating any losses you might incur.
This is why having a written thesis is important. When I was a new investor, I came up with reasons why I liked a certain company but often failed to take the time to document them. Years later, I found myself questioning why I had bought the stock in the first place. On more than one occasion, I sold it for a loss due to my lack of conviction.
If you put pen to paper (or more likely, fingers to keyboard) and write out your thesis for why you're bullish on the company, it will be easy to revisit during times of turmoil to see if your original thesis is still on track or completely busted.
Reason No. 2: The stock hit its ceiling
One of the most important numbers to estimate when you're researching a potential investment is the market-cap ceiling for the company. The market cap is the total value of all the company's outstanding shares, and the ceiling is your estimated pinnacle of growth for a company's market cap. In simpler terms, if Company A has a market cap of $1 billion and it's addressable market is $5 billion, the ceiling represents how much of that addressable market you believe company A can capture.
Take Upstart Holdings (NASDAQ: UPST) for example. The lending-software company saw its stock shoot up from $44 at its IPO to nearly $400 less than a year later. That's a 784% return in less than 12 months!
The unsecured personal-loan market is about a $144 billion industry. While Upstart is disrupting that industry with its artificial intelligence (AI)-based alternative to underwriting, in 2021, the stock market had priced in a nearly 25% market share for Upstart at a market cap of $33 billion. At that price, it's hard to see significant upside for the business, even if it executes perfectly.
Of course, hindsight is 20/20, but this example highlights the importance of having a rough estimation of the ceiling in case the stock gets way ahead of itself, like Upstart did. If the stock exceeds your ceiling price, you should either recalculate your ceiling (due to unforeseen optionality) or seriously consider exiting or at least trimming your position.
One reason you might reestimate your ceiling is if the company has expanded into a new markets or developed new products since developing your thesis. This is called optionality.
If you're invested in growth companies, you should revisit your ceilings regularly. High-growth businesses are dynamic and often part of the bull case is the company's optionality. Amazon is a great example of a company that most investors likely would not have dreamed of achieving a trillion-dollar market cap back in the late 1990's.
Yet, if you had stayed current with the business throughout its growth story, you would have recognized the incredible new markets and products it continually introduced (Amazon Web Services, the entertainment business, logistics, etc.) and adjusted the ceiling accordingly.
Reason No. 3: You need the money for something important
We all have our reasons for investing. Those goals might include things like buying a house, paying for your kid's college tuition, helping out family, or even starting a business.
While ideally you should try to save up for these expenditures outside of your stock portfolio, life doesn't always work on our timeline, and selling stocks to pursue really important things can make sense on occasion.
If you do sell for this reason, have a system in place. If you're someone that doesn't like to see single positions grow too concentrated, consider trimming some of your winners.
If, on the other hand, you like to run your portfolio concentrated in your highest convictions, consider selling your lowest conviction holdings.
A really bad reason to sell
Perhaps the worst reason to sell a stock is simply because it's going down. Unfortunately, the pressure from social media and thefinancial newsto do this is strong when the market is crashing.
The price of admission to the greatest wealth building machine in the world -- the U.S. stock market -- is enduring corrections from time to time. That doesn't mean you should never sell a stock if it's crashing; you just shouldn't do it solely because it's crashing.
It's perfectly plausible that there is a thesis-busting development in the business that's causing the price to crater, in which case selling may make sense. But as we've witnessed in this current macro-fueled bear market, stock prices can very easily become disconnected from the underlying business. And for patient, long-term investors, that usually spells opportunity.
Conclusion: Have a good reason to sell
Just like you wouldn't buy a stock without doing your due diligence, you shouldn't sell one without having a really strong reason to do so. There are certainly other legitimate reasons investors might sell stocks besides the ones listed above (like to lower your capital gains tax bill), but long-term investors need to establish a well-researched justification before selling.
Once you've come to terms with that reality, you'll find the best decision is usually to do nothing.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Mark Blank has positions in Upstart Holdings, Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Upstart Holdings, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Those goals might include things like buying a house, paying for your kid's college tuition, helping out family, or even starting a business. It's perfectly plausible that there is a thesis-busting development in the business that's causing the price to crater, in which case selling may make sense. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. | While Upstart is disrupting that industry with its artificial intelligence (AI)-based alternative to underwriting, in 2021, the stock market had priced in a nearly 25% market share for Upstart at a market cap of $33 billion. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Upstart Holdings, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | In simpler terms, if Company A has a market cap of $1 billion and it's addressable market is $5 billion, the ceiling represents how much of that addressable market you believe company A can capture. While Upstart is disrupting that industry with its artificial intelligence (AI)-based alternative to underwriting, in 2021, the stock market had priced in a nearly 25% market share for Upstart at a market cap of $33 billion. Conclusion: Have a good reason to sell Just like you wouldn't buy a stock without doing your due diligence, you shouldn't sell one without having a really strong reason to do so. | When I was a new investor, I came up with reasons why I liked a certain company but often failed to take the time to document them. While Upstart is disrupting that industry with its artificial intelligence (AI)-based alternative to underwriting, in 2021, the stock market had priced in a nearly 25% market share for Upstart at a market cap of $33 billion. Conclusion: Have a good reason to sell Just like you wouldn't buy a stock without doing your due diligence, you shouldn't sell one without having a really strong reason to do so. | null |
531 | 20,472 | 2022-06-30 00:00:00 UTC | FOCUS-Apple eyes fuel purchases from dashboard as it revs up car software | AAPL | https://www.nasdaq.com/articles/focus-apple-eyes-fuel-purchases-from-dashboard-as-it-revs-up-car-software | null | null | By Stephen Nellis
June 30 (Reuters) - Apple Inc AAPL.O wants you to start buying gas directly from your car dashboard as early as this fall, when the newest version of its CarPlay software rolls out, accelerating the company's push to turn your vehicle into a store for goods and services.
A new feature quietly unveiled at Apple's developer conference this month will allow CarPlay users to tap an app to navigate to a pump and buy gas straight from a screen in the car, skipping the usual process of inserting or tapping a credit card. Details of Apple's demo for developers have not previously been reported.
But Dallas-based HF Sinclair DINO.N, which markets its gasoline at 1,600 stations in the United States, told Reuters that it plans to use the new CarPlay technology and will announce details in coming months.
"We are excited by the idea that consumers could navigate to a Sinclair station and purchase fuel from their vehicle navigation screen," said Jack Barger, the company's senior vice president of marketing.
Fuel apps are just the latest in a sustained push by Apple to make it possible to tap to buy from the navigation screen. It has already opened up CarPlay to apps for parking, electric vehicle charging and ordering food, and it also is adding driving task apps such as logging mileage on business trips.
Fuel is a major expense for car owners. The U.S. Energy Information Administration estimated in April that the average U.S. household will spend about $2,945 on gasoline in 2022, or about $455 more than last year.
Apple currently does not charge automakers, developers or users for CarPlay; the business interest is putting Apple at the forefront as cars transform into rolling computers, said Horace Dediu, an analyst with Asymco and founder of Micromobility Industries. The new feature will hit hundreds of car models already compatible with CarPlay when Apple releases software updates this fall.
"Forget about Apple Car - Apple CarPlay is a bigger deal," Dediu said. "It's very likely to scale to millions and millions of cars, if not hundreds of millions."
To use the new CarPlay feature this fall, iPhone users will need to download a fuel company's app to their phone and enter payment credentials to set up the app. After the app is set up, users will be able to tap on their navigation screen to activate a pump and pay.
"It's a massive marketplace, and consumers really want to take friction out of payments," said Donald Frieden, chief executive officer of Houston-based P97 Networks, which makes the digital plumbing that many fuel companies will use to connect their apps to cars.
Frieden said he has fielded calls from oil companies that are interested to make their apps work with CarPlay. BP BP.L, Shell SHEL.L and Chevron Corp CVX.N did not respond to requests for comment about whether they plan to make their iPhone apps work with CarPlay.
FAILED ATTEMPTS
Apple's latest move is likely to increase tensions with automakers that have their own ambitions for commerce in the car.
For example, vehicle makers have tried - and failed - to popularize gasoline purchasing from the car before. General Motors Co GM.N rolled out a system for doing so in 2017, but shuttered it earlier this year "due to a supplier exiting the business," GM told Reuters in a statement.
Beyond apps for fuel and other purchases, Apple is also seeking to expand CarPlay further into the car's driving systems by accessing speed and fuel gauge data.
But automakers are not likely to hand over that data to Apple without making demands of their own in talks that analysts believe are likely already under way.
Speaking at the Reuters Automotive Europe conference in Munich on Wednesday, Mercedes Benz CEO Ola Kaellenius said the company's goal "is to have a complete, holistic, Mercedes experience."
Kallenius said Mercedes would not seek to reinvent every category of app, but that "when interacting with companies that are in this digital domain ... anything and everything that crosses into product liability relevance, we would be very cautious."
ANALYSIS-Apple's next frontier is your car's dashboard
(Reporting by Stephen Nellis in San Francisco Editing by Peter Henderson, Kenneth Li and Matthew Lewis)
((Stephen.Nellis@thomsonreuters.com; (415) 344-4934;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Stephen Nellis June 30 (Reuters) - Apple Inc AAPL.O wants you to start buying gas directly from your car dashboard as early as this fall, when the newest version of its CarPlay software rolls out, accelerating the company's push to turn your vehicle into a store for goods and services. But Dallas-based HF Sinclair DINO.N, which markets its gasoline at 1,600 stations in the United States, told Reuters that it plans to use the new CarPlay technology and will announce details in coming months. "It's a massive marketplace, and consumers really want to take friction out of payments," said Donald Frieden, chief executive officer of Houston-based P97 Networks, which makes the digital plumbing that many fuel companies will use to connect their apps to cars. | By Stephen Nellis June 30 (Reuters) - Apple Inc AAPL.O wants you to start buying gas directly from your car dashboard as early as this fall, when the newest version of its CarPlay software rolls out, accelerating the company's push to turn your vehicle into a store for goods and services. A new feature quietly unveiled at Apple's developer conference this month will allow CarPlay users to tap an app to navigate to a pump and buy gas straight from a screen in the car, skipping the usual process of inserting or tapping a credit card. "We are excited by the idea that consumers could navigate to a Sinclair station and purchase fuel from their vehicle navigation screen," said Jack Barger, the company's senior vice president of marketing. | By Stephen Nellis June 30 (Reuters) - Apple Inc AAPL.O wants you to start buying gas directly from your car dashboard as early as this fall, when the newest version of its CarPlay software rolls out, accelerating the company's push to turn your vehicle into a store for goods and services. A new feature quietly unveiled at Apple's developer conference this month will allow CarPlay users to tap an app to navigate to a pump and buy gas straight from a screen in the car, skipping the usual process of inserting or tapping a credit card. Apple currently does not charge automakers, developers or users for CarPlay; the business interest is putting Apple at the forefront as cars transform into rolling computers, said Horace Dediu, an analyst with Asymco and founder of Micromobility Industries. | By Stephen Nellis June 30 (Reuters) - Apple Inc AAPL.O wants you to start buying gas directly from your car dashboard as early as this fall, when the newest version of its CarPlay software rolls out, accelerating the company's push to turn your vehicle into a store for goods and services. "We are excited by the idea that consumers could navigate to a Sinclair station and purchase fuel from their vehicle navigation screen," said Jack Barger, the company's senior vice president of marketing. Fuel apps are just the latest in a sustained push by Apple to make it possible to tap to buy from the navigation screen. | null |
532 | 20,487 | 2022-06-29 00:00:00 UTC | ITOT, FDIG: Big ETF Inflows | AAPL | https://www.nasdaq.com/articles/itot-fdig%3A-big-etf-inflows | null | null | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, which added 21,600,000 units, or a 4.8% increase week over week. Among the largest underlying components of ITOT, in morning trading today Apple is up about 1.6%, and Microsoft is up by about 1.6%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the FDIG ETF, which added 250,000 units, for a 35.7% increase in outstanding units.
VIDEO: ITOT, FDIG: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, which added 21,600,000 units, or a 4.8% increase week over week. Among the largest underlying components of ITOT, in morning trading today Apple is up about 1.6%, and Microsoft is up by about 1.6%. VIDEO: ITOT, FDIG: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, which added 21,600,000 units, or a 4.8% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the FDIG ETF, which added 250,000 units, for a 35.7% increase in outstanding units. VIDEO: ITOT, FDIG: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, which added 21,600,000 units, or a 4.8% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the FDIG ETF, which added 250,000 units, for a 35.7% increase in outstanding units. VIDEO: ITOT, FDIG: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares Core S&P Total U.S. Stock Market ETF, which added 21,600,000 units, or a 4.8% increase week over week. Among the largest underlying components of ITOT, in morning trading today Apple is up about 1.6%, and Microsoft is up by about 1.6%. And on a percentage change basis, the ETF with the biggest increase in inflows was the FDIG ETF, which added 250,000 units, for a 35.7% increase in outstanding units. | null |
533 | 20,501 | 2022-06-28 00:00:00 UTC | Why Apple Was a Sour Stock on Tuesday | AAPL | https://www.nasdaq.com/articles/why-apple-was-a-sour-stock-on-tuesday | null | null | What happened
A victim of the Great Tech Stock Exodus of 2022, Apple (NASDAQ: AAPL) suffered another decline on Tuesday. The company's shares lost nearly 3% of their value, a worse showing than the 2% decline of the S&P 500 index. Investors were disheartened by one analyst's price target cut, and another's speculation about manufacturing difficulties.
So what
Of the two analyses, it was the one from TF International Securities that was the more concerning. That company's Ming-Chi Kuo wrote in a tweet that the results of a survey he conducted indicate that Apple's "own iPhone 5G modem chip development may have failed."
The company had been developing its own chips to alleviate its dependence on chip leader Qualcomm. Kuo speculated that Apple's struggles mean Qualcomm will remain the sole supplier of 5G chips for the tech giant's upcoming line of new iPhones, presumably making their production more expensive.
It's important to note that Apple has not released any updates recently about its 5G modem chip production.
Now what
Meanwhile, Evercore ISI analyst Amit Daryanani is growing more bearish on Apple's prospects for different reasons. Tuesday morning, he cut his price target on the stock to $180 per share from the previous $210.
Daryanani explained in a new research note that "Apple was in growth mode during the 2008/2009 as we were still at the beginning of the smartphone revolution, so revenue declines in a recession today would likely be more severe vs. the growth they managed in 2009."
Despite his concern and the price target reduction, Daryanani is maintaining his outperform (read: buy) recommendation on Apple stock.
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Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple and Qualcomm. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What happened A victim of the Great Tech Stock Exodus of 2022, Apple (NASDAQ: AAPL) suffered another decline on Tuesday. That company's Ming-Chi Kuo wrote in a tweet that the results of a survey he conducted indicate that Apple's "own iPhone 5G modem chip development may have failed." Kuo speculated that Apple's struggles mean Qualcomm will remain the sole supplier of 5G chips for the tech giant's upcoming line of new iPhones, presumably making their production more expensive. | What happened A victim of the Great Tech Stock Exodus of 2022, Apple (NASDAQ: AAPL) suffered another decline on Tuesday. That company's Ming-Chi Kuo wrote in a tweet that the results of a survey he conducted indicate that Apple's "own iPhone 5G modem chip development may have failed." After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | What happened A victim of the Great Tech Stock Exodus of 2022, Apple (NASDAQ: AAPL) suffered another decline on Tuesday. 10 stocks we like better than Apple When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Eric Volkman has positions in Apple. | What happened A victim of the Great Tech Stock Exodus of 2022, Apple (NASDAQ: AAPL) suffered another decline on Tuesday. Tuesday morning, he cut his price target on the stock to $180 per share from the previous $210. That's right -- they think these 10 stocks are even better buys. | null |
534 | 20,535 | 2022-06-27 00:00:00 UTC | US STOCKS-Wall St set to extend bounce as inflation fears ease | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-extend-bounce-as-inflation-fears-ease | null | null | By Shreyashi Sanyal
June 27 (Reuters) - U.S. stock index futures edged higher on Monday, setting up Wall Street to extend gains from the previous week after a slide in commodity prices eased worries of prolonged inflation.
All three key indexes posted solid gains last week, with the Nasdaq Composite .IXIC rising 7.5% as investors bet the retreat in oil prices from the three-month highs hit this month could ease inflationary pressures and push the Federal Reserve to moderate its aggressive policy tightening.
The U.S. central bank has rapidly raised interest rates to rein in 40-year-high inflation, stoking fears its actions could tip the world's largest economy into a recession.
After the benchmark S&P 500 .SPX index earlier this month recorded a 20% drop from its January closing peak to confirm a bear market, investors this week will try to gauge when the market might hit its bottom.
"The rebound in markets is a reminder of the merits of staying invested in line with a long-term plan. But volatility is likely to remain elevated until we see strong evidence that inflation is moderating, recession risks are receding, and geopolitical threats are declining," Mark Haefele, chief investment officer at UBS Global Wealth Management wrote in a client note.
Haefele added that the main driver of the markets in the second half of 2022 will be investor perceptions of whether we are headed for stagflation, reflation, a soft-landing, or a slump.
Shares across the board gained in premarket trading on Monday, with tech-focused growth stocks including Tesla Inc TSLA.O, Netflix Inc NFLX.O, Alphabet Inc GOOGL.O and Apple Inc AAPL.O up between 0.6% and 1.4%.
At 6:48 a.m. ET, Dow e-minis 1YMcv1 were up 58 points, or 0.18%, S&P 500 e-minis EScv1 were up 10.75 points, or 0.27%, and Nasdaq 100 e-minis NQcv1 were up 47.5 points, or 0.39%.
Shares of Robinhood Markets HOOD.O rose 3.5% after media reports said Goldman Sachs upgraded the retail broker's stock to "neutral" from "sell".
Goldman Sachs, however, cut rating on Coinbase Global Inc COIN.O to "sell" from "buy", according to media reports, sending shares of the cryptocurrency exchange lower by 4.8%.
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Vinay Dwivedi)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; 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. | Shares across the board gained in premarket trading on Monday, with tech-focused growth stocks including Tesla Inc TSLA.O, Netflix Inc NFLX.O, Alphabet Inc GOOGL.O and Apple Inc AAPL.O up between 0.6% and 1.4%. By Shreyashi Sanyal June 27 (Reuters) - U.S. stock index futures edged higher on Monday, setting up Wall Street to extend gains from the previous week after a slide in commodity prices eased worries of prolonged inflation. All three key indexes posted solid gains last week, with the Nasdaq Composite .IXIC rising 7.5% as investors bet the retreat in oil prices from the three-month highs hit this month could ease inflationary pressures and push the Federal Reserve to moderate its aggressive policy tightening. | Shares across the board gained in premarket trading on Monday, with tech-focused growth stocks including Tesla Inc TSLA.O, Netflix Inc NFLX.O, Alphabet Inc GOOGL.O and Apple Inc AAPL.O up between 0.6% and 1.4%. By Shreyashi Sanyal June 27 (Reuters) - U.S. stock index futures edged higher on Monday, setting up Wall Street to extend gains from the previous week after a slide in commodity prices eased worries of prolonged inflation. ET, Dow e-minis 1YMcv1 were up 58 points, or 0.18%, S&P 500 e-minis EScv1 were up 10.75 points, or 0.27%, and Nasdaq 100 e-minis NQcv1 were up 47.5 points, or 0.39%. | Shares across the board gained in premarket trading on Monday, with tech-focused growth stocks including Tesla Inc TSLA.O, Netflix Inc NFLX.O, Alphabet Inc GOOGL.O and Apple Inc AAPL.O up between 0.6% and 1.4%. By Shreyashi Sanyal June 27 (Reuters) - U.S. stock index futures edged higher on Monday, setting up Wall Street to extend gains from the previous week after a slide in commodity prices eased worries of prolonged inflation. All three key indexes posted solid gains last week, with the Nasdaq Composite .IXIC rising 7.5% as investors bet the retreat in oil prices from the three-month highs hit this month could ease inflationary pressures and push the Federal Reserve to moderate its aggressive policy tightening. | Shares across the board gained in premarket trading on Monday, with tech-focused growth stocks including Tesla Inc TSLA.O, Netflix Inc NFLX.O, Alphabet Inc GOOGL.O and Apple Inc AAPL.O up between 0.6% and 1.4%. All three key indexes posted solid gains last week, with the Nasdaq Composite .IXIC rising 7.5% as investors bet the retreat in oil prices from the three-month highs hit this month could ease inflationary pressures and push the Federal Reserve to moderate its aggressive policy tightening. The U.S. central bank has rapidly raised interest rates to rein in 40-year-high inflation, stoking fears its actions could tip the world's largest economy into a recession. | null |
535 | 20,544 | 2022-06-26 00:00:00 UTC | Missed Out on Apple Stock? 2 Growth Stocks to Buy and Hold Forever. | AAPL | https://www.nasdaq.com/articles/missed-out-on-apple-stock-2-growth-stocks-to-buy-and-hold-forever. | null | null | Apple has the kind of brand authority most companies will never achieve, and it has used that competitive advantage to build a very sticky business. Specifically, by pairing first-party hardware with software and services, Apple benefits from recurring revenue and high switching costs. That has made it a cash-flow machine, and shareholders have seen a 560% return over the past decade as a result.
Block (NYSE: SQ) and Axon Enterprise (NASDAQ: AXON) aren't quite the same as Apple, but both have earned brand recognition in their industries while blending hardware, software, and services to create a sticky business model. With that in mind, I think Block and Axon could also soar 600% (or more) over the next decade.
Here's what you should know.
1. Block
Block makes financial services easy and accessible. Its Square ecosystem is a robust suite of hardware, software, and financial services that helps sellers run an omnichannel business. That includes everything from point-of-sale systems and card readers to payment processing and banking services.
On the other side of the business, the Cash App allows consumers to deposit, spend, and invest money from a single platform, and Block's lack of physical infrastructure means it can acquire customers much more efficiently than traditional banks.
More broadly, the breadth of the Square and Cash App ecosystems differentiates Block from many of its rivals, and that has led to impressive growth. Gross profit soared 50% to $4.8 billion in the past year, driven by increased engagement across both ecosystems. In particular, more mid-market sellers (i.e. those making over $500,000 per year) are turning to Square, and those merchants tend to use more software, which means the relationship is stickier and more profitable for Block. On the bottom line, the company generated $965 million of trailing-12-month free cash flow, up from a loss of $344 million in the prior-year period.
Block is integrating its buy now, pay later (BNPL) platform, Afterpay, into Square and Cash App too. Sellers should benefit from increased transaction volumes as BNPL tends to increase conversion rates and cart sizes. And sellers can leverage consumer shopping data to deliver targeted product recommendations through the Cash App. That could unlock natural synergy between the ecosystems.
Collectively, Block values its U.S. addressable market at $190 billion in gross profit, comprising $70 billion from the Cash App and $120 billion from Square. That means Block has captured less than 3% of its domestic market opportunity, and the company has a growing presence in Europe, giving this stock plenty of runway to outpace Apple's performance over the last 10 years.
2. Axon Enterprise
Axon specializes in public safety technology. The company is best known for conducted energy devices (CEDs), which are sold under the brand name Taser. In fact, it was formerly known as Taser International but rebranded to Axon in 2017 to reflect its growing software and sensors business. In that segment, Axon offers body cameras (and other sensors) that stream geo-location and video data to Axon Cloud, a suite of software for digital evidence management, reporting, and real-time operations.
Collectively, those products help public-safety officials (think police officers, first responders, and federal agents) work more efficiently and productively, while also bringing transparency to law enforcement. Building on its early success with Tasers, Axon has established itself as a leader in body cameras and digital evidence-management software, too. That has led to steady and consistent growth.
Revenue rose 27% to $925 million over the past year, and the company generated $51 million in free cash flow, up from $5 million in the prior year. But Axon has hardly scratched the surface of its addressable market, especially where software and sensors are concerned.
In the last quarter, management said 25 agencies are now live on Axon Records, software that accelerates incident reporting by replacing written words with video evidence, and by automating tasks like transcription with artificial intelligence. For context, Axon has a customer relationship with 17,000 out of the 18,000 U.S. law enforcement agencies, meaning there is a tremendous opportunity to upsell existing clients.
In total, Axon estimates its market opportunity is worth $52 billion, approximately 80% of which comes from Tasers (for civilians and law enforcement officers), body cameras, and digital evidence-management software. As the leader in all three categories, Axon is well positioned to create wealth for shareholders, and that's why this growth stock is worth buying today.
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Trevor Jennewine has positions in Axon Enterprise and Block, Inc. The Motley Fool has positions in and recommends Apple, Axon Enterprise, and Block, Inc. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | On the other side of the business, the Cash App allows consumers to deposit, spend, and invest money from a single platform, and Block's lack of physical infrastructure means it can acquire customers much more efficiently than traditional banks. That means Block has captured less than 3% of its domestic market opportunity, and the company has a growing presence in Europe, giving this stock plenty of runway to outpace Apple's performance over the last 10 years. In the last quarter, management said 25 agencies are now live on Axon Records, software that accelerates incident reporting by replacing written words with video evidence, and by automating tasks like transcription with artificial intelligence. | Collectively, Block values its U.S. addressable market at $190 billion in gross profit, comprising $70 billion from the Cash App and $120 billion from Square. Revenue rose 27% to $925 million over the past year, and the company generated $51 million in free cash flow, up from $5 million in the prior year. In total, Axon estimates its market opportunity is worth $52 billion, approximately 80% of which comes from Tasers (for civilians and law enforcement officers), body cameras, and digital evidence-management software. | Block (NYSE: SQ) and Axon Enterprise (NASDAQ: AXON) aren't quite the same as Apple, but both have earned brand recognition in their industries while blending hardware, software, and services to create a sticky business model. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Trevor Jennewine has positions in Axon Enterprise and Block, Inc. The Motley Fool has positions in and recommends Apple, Axon Enterprise, and Block, Inc. | Gross profit soared 50% to $4.8 billion in the past year, driven by increased engagement across both ecosystems. 10 stocks we like better than Block, Inc. The Motley Fool has positions in and recommends Apple, Axon Enterprise, and Block, Inc. | 4 |
536 | 20,548 | 2022-06-25 00:00:00 UTC | My Favorite Investing Lesson from Warren Buffett | AAPL | https://www.nasdaq.com/articles/my-favorite-investing-lesson-from-warren-buffett | null | null | Warren Buffett -- at age 91, still the CEO of Berkshire Hathaway -- is one of the greatest investors of our time. Shares of the conglomerate have produced a compound annual return of more than 20% between 1965 and 2021, compared to just 10.5% for the S&P 500 over the same period. A large part of that outperformance was driven by its huge equities portfolio, which has also generated outstanding returns over the years.
As a result, investors from all over study Buffett's investing methods, and try to learn to think like he does. Over the decades, he has shared plenty of advice on how to do that, but one of those lessons is a particular favorite of mine.
Image source: Getty Images.
Diversification? Who needs it?
A common investing theme you have probably heard before is the need for diversification in your portfolio. To use an idiom even older than the stock market, don't put all of your eggs in one basket.
The idea is that if you buy stocks across a range of sectors, you will be hedged against various economic environments and scenarios. For instance, while growth and tech stocks performed extremely well in 2021, they have gotten crushed this year. If you also held oil and natural gas stocks, though, you'd have winners this year to help you offset the hit you are taking in tech. In addition, diversification allows you to better stomach the blow if one company in your portfolio really struggles.
But Buffett has long been a critic of too much diversification. "Diversification is protection against ignorance," he once said. "It makes little sense if you know what you're doing."
He clearly is still following his mantra. After all, nearly 65% of Berkshire's now roughly $314 billion equities portfolio is invested in just four stocks, and roughly 39% of it is invested in just one: the nation's largest public company, Apple.
Buffett's thesis is that if you do enough good research, you can make smart calculated risks and buy stocks at attractive valuations that will reward patient, long-term investors. He also believes that once you've done the necessary work, if you see a great opportunity, you should go in big, not small.
Think about what's in your portfolio today. Do you feel better about the stocks you invested in after doing minimal research or the ones you spent days and weeks investigating?
When it comes to the stocks you did more research on, you probably know every facet of their business, and you likely also considered how they might perform in a negative scenario or a broad-based recession. I'd bet that you're a lot less concerned about how the stocks you researched thoroughly are currently performing, and are more confident that they will rebound and eventually generate strong returns.
Should you abandon diversification?
Now, I don't believe Buffett was telling the common investor to totally abandon diversification, and I don't think you should either if you like the strategy. The reality is that few of us have anywhere close to Buffett's experience as an investor, nor do most of us spend much of our workdays researching stocks. And Buffett invests hundreds of billions of dollars on behalf of a huge conglomerate, and has opportunities the rest of us lack. He also has many stakeholders he must answer to. You, as a small retail investor, need to manage your portfolio in the way that's best for you. Diversification is a proven concept that can still produce great returns over a long-term horizon.
But I love Buffett's take on diversification because I believe the more thoroughly you research your stocks before buying them, the better those you choose will perform. You will also feel a lot more confident about those stocks, which will allow you to sleep a lot better at night, especially during tough market conditions like the ones we're experiencing this year.
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Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Buffett's thesis is that if you do enough good research, you can make smart calculated risks and buy stocks at attractive valuations that will reward patient, long-term investors. I'd bet that you're a lot less concerned about how the stocks you researched thoroughly are currently performing, and are more confident that they will rebound and eventually generate strong returns. And Buffett invests hundreds of billions of dollars on behalf of a huge conglomerate, and has opportunities the rest of us lack. | After all, nearly 65% of Berkshire's now roughly $314 billion equities portfolio is invested in just four stocks, and roughly 39% of it is invested in just one: the nation's largest public company, Apple. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | 10 stocks we like better than Berkshire Hathaway (A shares) When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. | After all, nearly 65% of Berkshire's now roughly $314 billion equities portfolio is invested in just four stocks, and roughly 39% of it is invested in just one: the nation's largest public company, Apple. But I love Buffett's take on diversification because I believe the more thoroughly you research your stocks before buying them, the better those you choose will perform. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway (B shares). | 4 |
537 | 20,566 | 2022-06-24 00:00:00 UTC | US STOCKS-Futures rise as investors scale back rate hike expectations | AAPL | https://www.nasdaq.com/articles/us-stocks-futures-rise-as-investors-scale-back-rate-hike-expectations | null | null | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.61%, S&P 0.70%, Nasdaq 0.89%
June 24 (Reuters) - U.S. stock index futures rose on Friday as signs of slowing economic growth and falling commodity prices eased expectations over how high the Federal Reserve will raise interest rates to rein in inflation.
Fears that aggressive tightening by major central banks will cause a sharp economic downturn have roiled financial markets this month, pushing the benchmark S&P 500 .SPX to confirm a bear market or a 20% fall from its recent peak.
Data on Thursday showed U.S. business activity slowed considerably in June, driving investors to scale back bets on where interest rates may peak and bring forward their views on the timing of rate cuts.
Money markets see U.S. interest rates peaking at around 3.4% by next March, far below the just above 4% priced for June 2023 before last Wednesday's Fed meeting. FEDWATCH
Copper prices on Friday were set for their biggest weekly fall in a year and other industrial metals also tumbled, while crude oil was headed for a second straight weekly decline.
The Fed's commitment to reining in 40-year-high inflation is "unconditional," Chair Jerome Powell told lawmakers on Thursday, a day after saying it was not trying to provoke a recession but that was "certainly a possibility."
The main stock indexes looked set to notch their first weekly gain in four, with healthcare, real estate and utilities - among sectors considered as safer bets during times of economic uncertainty - outperforming so far in the week.
Megacap stocks such as Apple Inc AAPL.O and Tesla TSLA.O rose about 1% in premarket trading. Rising interest rates have hurt shares of the mega-cap growth companies as their valuations rely more heavily on future earnings.
At 06:58 a.m. ET, Dow e-minis 1YMcv1 were up 187 points, or 0.61%, S&P 500 e-minis EScv1 were up 26.75 points, or 0.7%, and Nasdaq 100 e-minis NQcv1 were up 104.5 points, or 0.89%.
FedEx Corp FDX.N rose 3.4% after the parcel delivery company issued a stronger-than-expected full-year profit forecast despite softening global demand for shipping.
Bank stocks were mixed after the Federal Reserve's annual "stress test" exercise showed that the lenders have enough capital to weather a severe economic downturn.
Citigroup Inc C.N slipped 0.3%, while Bank of America Corp BAC.N rose 0.3% and Morgan Stanley MS.N 0.7%.
Zendesk Inc ZEN.N soared 55.4% after reports said the software company was close to a deal with a group of buyout firms that includes Hellman & Friedman LLC and Permira.
The University of Michigan's survey on U.S. consumer sentiment in June and new home sales data will be published later in the day.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila)
((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. | Megacap stocks such as Apple Inc AAPL.O and Tesla TSLA.O rose about 1% in premarket trading. The Fed's commitment to reining in 40-year-high inflation is "unconditional," Chair Jerome Powell told lawmakers on Thursday, a day after saying it was not trying to provoke a recession but that was "certainly a possibility." Bank stocks were mixed after the Federal Reserve's annual "stress test" exercise showed that the lenders have enough capital to weather a severe economic downturn. | Megacap stocks such as Apple Inc AAPL.O and Tesla TSLA.O rose about 1% in premarket trading. Futures up: Dow 0.61%, S&P 0.70%, Nasdaq 0.89% June 24 (Reuters) - U.S. stock index futures rose on Friday as signs of slowing economic growth and falling commodity prices eased expectations over how high the Federal Reserve will raise interest rates to rein in inflation. Money markets see U.S. interest rates peaking at around 3.4% by next March, far below the just above 4% priced for June 2023 before last Wednesday's Fed meeting. | Megacap stocks such as Apple Inc AAPL.O and Tesla TSLA.O rose about 1% in premarket trading. Futures up: Dow 0.61%, S&P 0.70%, Nasdaq 0.89% June 24 (Reuters) - U.S. stock index futures rose on Friday as signs of slowing economic growth and falling commodity prices eased expectations over how high the Federal Reserve will raise interest rates to rein in inflation. Fears that aggressive tightening by major central banks will cause a sharp economic downturn have roiled financial markets this month, pushing the benchmark S&P 500 .SPX to confirm a bear market or a 20% fall from its recent peak. | Megacap stocks such as Apple Inc AAPL.O and Tesla TSLA.O rose about 1% in premarket trading. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures up: Dow 0.61%, S&P 0.70%, Nasdaq 0.89% June 24 (Reuters) - U.S. stock index futures rose on Friday as signs of slowing economic growth and falling commodity prices eased expectations over how high the Federal Reserve will raise interest rates to rein in inflation. | 3 |
538 | 20,581 | 2022-06-23 00:00:00 UTC | GOOGL Stock Is the Safest Buy as FAANG Crashes | AAPL | https://www.nasdaq.com/articles/googl-stock-is-the-safest-buy-as-faang-crashes | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Alphabet (NASDAQ:GOOGL) stock is not having a great year. Shares are down 23% year to date. However, it could be much worse.
Some of the other FAANG stocks have absolutely imploded. Netflix (NASDAQ:NFLX), for example, is down a stunning 70% so far in 2022 amid the streaming industry’s woes.
There is a lot of uncertainty in the FAANG stocks in general. Apple (NASDAQ:AAPL), for example, faces supply chain chaos due to its concentration of manufacturing capacity in China.
7 REITs to Buy for a Profitable Summer
With both short-term traders and investors dumping FAANG stocks, are there any of them still worth owning? Yes, Alphabet is still worth the risk.
GOOGL Alphabet $2,229.75
A Closer Look a GOOGL Stock
Analysts now believe that Alphabet will generate $112.25 per share of earnings in 2022. This puts GOOGL stock at just 19 times this year’s projected earnings.
They also see those earnings per share rising to $133.35 in 2023 and $152.09 in 2024. This would put Alphabet at a mere 16 times 2023 earnings and 14 times projected 2024 earnings.
This is simply incredible stuff. It’s one thing for a slow-growing company to sell at a sub-20 P/E ratio, but this is Alphabet that we’re talking about. Alphabet has grown earnings per share at 22% per year compounded over the past decade.
Similarly, it has grown free cash flow per share at 20% per year compounded as well. These are the sorts of figures that should have investors salivating. Instead, GOOGL stock has headed to a discount compared to the S&P 500 overall.
Morningstar Sees Huge Upside
Morningstar senior equity analyst Ali Mogharabi has a fair value target of $3,600 for GOOGL stock today.
This means that Alphabet is, if Mogharabi is correct, 39% undervalued. That is a tremendous margin of safety for such a large and stable company as this one.
Mogharabi believes Alphabet should trade at an enterprise value to EBITDA multiple of 20. Analysts use EV/EBITDA as a quick gauge of a company’s valuation excluding cash compared to its ability to generate cash flows on an annual basis.
Dating back to 2016, GOOGL stock has historically traded in a range between 16 and 20 times EV/EBITDA. It’s currently at 13 now. While Mogharabi’s price target is at the high end of that range, even getting back to just 16 times would put GOOGL stock at around $2,750 versus today’s $2,100 share price.
Alphabet Is A Resilient Business
It’s well-known that Alphabet’s cash cow is in its search business. The Google search engine remains a one-of-kind asset with almost no competition in most parts of the world. The company’s incredible ability to integrate search across other forms, such as the Android platform, has been legendary.
But there’s more to Alphabet than just core search. The YouTube business has become an enviable cash flow machine in recent years. Despite increasing advertisement loads there dramatically, viewership remains off-the-charts.
And then there’s everything else.
Google’s cloud business continues to grow at a rapid rate. Profitability has been an issue for the cloud division to date, but presumably Google will get it figured out sooner or later.
Beyond that, there’s Alphabet’s array of moonshots and other ventures. Be it quantum computing, self-driving, artificial intelligence or any of the other countless irons in the fire, it seems some of these are bound to pay off in a major way with time.
GOOGL Stock’s Bottom Line
You can make a case for some of the other FAANG stocks here. Amazon.com (NASDAQ:AMZN) could see a serious rebound if the economy doesn’t slow down as badly as feared. Meta Platforms (NASDAQ:META) looks like a deep value here if its ad sales don’t see further trouble.
Overall, however, if you just want one FAANG stock that can hold up in this market tumble, Alphabet is that pick. The company’s combination of massive cash flows from the core search business and its moonshots give investors a strong mix of defensive assets and growth-positioned programs.
On the date of publication, Ian Bezek held a long position in META stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post GOOGL Stock Is the Safest Buy as FAANG Crashes 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 example, faces supply chain chaos due to its concentration of manufacturing capacity in China. 7 REITs to Buy for a Profitable Summer With both short-term traders and investors dumping FAANG stocks, are there any of them still worth owning? Be it quantum computing, self-driving, artificial intelligence or any of the other countless irons in the fire, it seems some of these are bound to pay off in a major way with time. | Apple (NASDAQ:AAPL), for example, faces supply chain chaos due to its concentration of manufacturing capacity in China. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Alphabet (NASDAQ:GOOGL) stock is not having a great year. This puts GOOGL stock at just 19 times this year’s projected earnings. | Apple (NASDAQ:AAPL), for example, faces supply chain chaos due to its concentration of manufacturing capacity in China. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Alphabet (NASDAQ:GOOGL) stock is not having a great year. GOOGL Alphabet $2,229.75 A Closer Look a GOOGL Stock Analysts now believe that Alphabet will generate $112.25 per share of earnings in 2022. | Apple (NASDAQ:AAPL), for example, faces supply chain chaos due to its concentration of manufacturing capacity in China. Shares are down 23% year to date. GOOGL Alphabet $2,229.75 A Closer Look a GOOGL Stock Analysts now believe that Alphabet will generate $112.25 per share of earnings in 2022. | 1 |
539 | 20,592 | 2022-06-22 00:00:00 UTC | After Hours Most Active for Jun 22, 2022 : NIO, QQQ, ITUB, BAC, AAPL, CLVT, TLT, AMZN, MSFT, FHN, X, AMD | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-jun-22-2022-%3A-nio-qqq-itub-bac-aapl-clvt-tlt-amzn-msft-fhn-x | null | null | The NASDAQ 100 After Hours Indicator is down -9.72 to 11,517.99. The total After hours volume is currently 81,150,669 shares traded.
The following are the most active stocks for the after hours session:
NIO Inc. (NIO) is -0.02 at $22.53, with 6,064,373 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.03 at $280.70, with 3,440,598 shares traded. This represents a 4.24% increase from its 52 Week Low.
Itau Unibanco Banco Holding SA (ITUB) is unchanged at $4.57, with 3,104,598 shares traded. As reported by Zacks, the current mean recommendation for ITUB is in the "buy range".
Bank of America Corporation (BAC) is unchanged at $32.60, with 2,967,035 shares traded. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
Apple Inc. (AAPL) is -0.08 at $135.27, with 2,654,212 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Clarivate Plc (CLVT) is unchanged at $13.24, with 2,414,517 shares traded. As reported by Zacks, the current mean recommendation for CLVT is in the "buy range".
iShares 20+ Year Treasury Bond ETF (TLT) is -0.16 at $113.05, with 2,225,285 shares traded. This represents a 4.56% increase from its 52 Week Low.
Amazon.com, Inc. (AMZN) is +0.02 at $108.97, with 1,913,355 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2022. The consensus EPS forecast is $0.52. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Microsoft Corporation (MSFT) is -0.08 at $253.05, with 1,825,697 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
First Horizon Corporation (FHN) is unchanged at $21.45, with 1,801,140 shares traded. FHN's current last sale is 91.28% of the target price of $23.5.
United States Steel Corporation (X) is +0.02 at $19.09, with 1,799,388 shares traded. X's current last sale is 69.42% of the target price of $27.5.
Advanced Micro Devices, Inc. (AMD) is -0.1 at $83.65, with 1,647,764 shares traded. As reported by Zacks, the current mean recommendation for AMD is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Inc. (AAPL) is -0.08 at $135.27, with 2,654,212 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Itau Unibanco Banco Holding SA (ITUB) is unchanged at $4.57, with 3,104,598 shares traded. | Apple Inc. (AAPL) is -0.08 at $135.27, with 2,654,212 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for NIO is in the "buy range". | Apple Inc. (AAPL) is -0.08 at $135.27, with 2,654,212 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 81,150,669 shares traded. | Apple Inc. (AAPL) is -0.08 at $135.27, with 2,654,212 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for NIO is in the "buy range". | 4 |
540 | 20,617 | 2022-06-21 00:00:00 UTC | Stock Market News for Jun 21, 2022 | AAPL | https://www.nasdaq.com/articles/stock-market-news-for-jun-21-2022 | null | null | Wall Street closed modestly higher on Friday in a choppy session, alternating between gains and losses. Markets tried to rebound from a selling week, but investors were wary of the stubbornly high inflation and braced for an impending recession. Fed chairman Jerome Powell reaffirmed the central bank’s bid to bring down inflation to its target 2%, fueling fears of further interest rate hikes. Oil prices plunged to a two-week low. Two of the three major stock indexes ended in the green, while the Dow ended in the red. Markets remained closed on Monday as the United States commemorated the end of slavery by observing Juneteenth.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) dipped 0.1% or 38.29 points to close at 29,888.78. Seventeen components of the 30-stock index ended in the red, while 13 ended in the green.
The tech-heavy Nasdaq Composite finished at 10,798.35, adding 1.4% or 152.25 points, led by a rally in tech stocks.
The S&P 500 rose 0.2% or 8.07 points to close at 3,674.84. Five out of the 11 broad sectors of the benchmark index closed in the green. The Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK) and the Communication Services Select Sector SPDR (XLC) rose 1.1%, 0.9% and 1.4%, respectively, while the Energy Select Sector SPDR (XLE) plunged 5.5%.
The fear-gauge CBOE Volatility Index (VIX) declined 5.5% to 31.13. A total of 18 billion shares were traded Friday, higher than the last 20-session average of 12.4 billion. Advancers outnumbered decliners on the NYSE by a 1.37-to-1 ratio. On the Nasdaq, a 1.92-to-1 ratio favored the advancing issues.
Fed Commits To Bring Inflation Down To 2%
Towing the line of its three-decade-high interest rate hike of 75 basis points on Wednesday, Fed Chairman Jerome Powell reiterated on Friday that the central bank remains committed to bring down inflation to its target 2%, as it is essential for the global financial system. Powell mentioned that the Fed is focused on restoring the widespread confidence in the dollar as a store of value and ensuring price stability domestically. Although this sounded like a re-assurance from the apex bank to markets reeling under the pressure of inflation, this also promised further interest rate hikes.
Markets have been seeing choppy sessions as investors strive to find a balance in the Fed’s outlook toward tackling inflation with an extremely tight monetary policy, while staying away from a recession in the economy. Friday was no different, and traders closed out positions on a volatile day following his comments. The volume of shares changing hands was unusually high even as two of the three indices managed to stay in the green.
Oil Prices Edge Lower
Oil prices plunged 6% on Friday, $11 lower than the recent $125/barrel high. Brent crude fell 0.8% to $118.98/barrel, while WTI crude registered a 0.7% fall to close at $116.79. Supply is on the rise and U.S. production is at its highest since April 2020. This can trigger a rally in stocks in the coming week. Although prices fell on global economic concerns, the relation that oil prices have with commodity prices can keep the markets in good stead.
Consequently, shares of Apple Inc. AAPL and NVIDIA Corporation NVDA rose 1.2% and 1.8%, respectively. Apple currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
No economic data was released on Monday.
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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.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Consequently, shares of Apple Inc. AAPL and NVIDIA Corporation NVDA rose 1.2% and 1.8%, respectively. Apple Inc. (AAPL): Free Stock Analysis Report Fed chairman Jerome Powell reaffirmed the central bank’s bid to bring down inflation to its target 2%, fueling fears of further interest rate hikes. | Consequently, shares of Apple Inc. AAPL and NVIDIA Corporation NVDA rose 1.2% and 1.8%, respectively. Apple Inc. (AAPL): Free Stock Analysis Report Fed Commits To Bring Inflation Down To 2% Towing the line of its three-decade-high interest rate hike of 75 basis points on Wednesday, Fed Chairman Jerome Powell reiterated on Friday that the central bank remains committed to bring down inflation to its target 2%, as it is essential for the global financial system. | Consequently, shares of Apple Inc. AAPL and NVIDIA Corporation NVDA rose 1.2% and 1.8%, respectively. Apple Inc. (AAPL): Free Stock Analysis Report The Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK) and the Communication Services Select Sector SPDR (XLC) rose 1.1%, 0.9% and 1.4%, respectively, while the Energy Select Sector SPDR (XLE) plunged 5.5%. | Consequently, shares of Apple Inc. AAPL and NVIDIA Corporation NVDA rose 1.2% and 1.8%, respectively. Apple Inc. (AAPL): Free Stock Analysis Report Five out of the 11 broad sectors of the benchmark index closed in the green. | 4 |
541 | 20,625 | 2022-06-20 00:00:00 UTC | Apple’s Innovations Position the Stock for Long-Term Growth | AAPL | https://www.nasdaq.com/articles/apples-innovations-position-the-stock-for-long-term-growth | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Despite ongoing supply chain and regulatory pressures, Apple (NASDAQ:AAPL) continues to roll out new features and products that will help keep its business and the AAPL stock price buoyant over the long-term.
Apple just wrapped up its annual Worldwide Developers Conference where it introduced several new software features and products that impressed attendees and generated positive media coverage. And while AAPL stock continues to decline along with the broader market, down 26% year-to-date at $132 a share, the Cupertino, California-based company’s innovations and new products position it to rebound strongly when the market finally acquiesces and begins to recover.
AAPL Apple $132
Pay Later Service
The big news coming out of Apple’s developer’s conference was a pay-later option that moves the company further into the financial services sector. The new payment feature, called Apple Pay Later, is an addition to its popular Wallet app, and part of the consumer electronics giant’s expansion into the world of online finance.
7 Long-Term Stocks That Never Go Out of Style
Apple Pay Later enables people to pay for things over four equal installments, paid monthly without any interest being charged. The move into the pay later loan segment puts Apple into direct competition with major financial technology (fintech) players such as PayPal (NASDAQ:PYPL) and Affirm (NASDAQ:AFRM).
However, Apple, which has had success launching its own credit cards, is well-positioned to succeed and win market share in the buy now, pay later space, say analysts.
Other news coming out of Apple’s weeklong conference was the unveiling of the latest iPhone software, iOS 16, which includes a new lock screen; two new Mac computers, including the biggest refresh of its MacBook Air model in more than a decade; improvements to the Apple Watch that include the addition of atrial fibrillation detection to help with heart health; an overhaul of Apple CarPlay that will integrate it more with a vehicle’s instruments such as the speedometer and other gauges; and more multitasking features for the iPad, including a long-awaited weather app.
All the new technologies will use Apple’s proprietary M2 chip, which the company developed internally after ending its long-term relationship with Intel (NASDAQ:INTC).
Overseas Challenges
The latest upgrades, products and features position Apple for a strong future and should help the company remain at the front of the pack in the consumer electronics space.
However, in the near-term, Apple continues to manage a number of overseas challenges that are weighing on its share price. These include ongoing Covid-19 lockdowns in China that have impacted its manufacturing and difficulty sourcing components and managing supply chains throughout Asia that threaten production of its iPhone.
Any challenges to the iPhone are bad news for Apple, as global sales of the popular smartphone continue to account for more than half of the company’s revenue, generating almost $192 billion in 2021.
On the other side of the world, in Europe, Apple also faces some near-term headwinds. European antitrust regulators have charged Apple with restricting rivals’ access to its chip technology in a move that could force the iPhone maker to open its mobile payment system to competition on the continent. The European Commission said it has sent Apple details of how the company has abused its dominant position in markets for mobile wallets on iOS devices and ordered that changes be made.
Separately, the EU has agreed to a single charging port for mobile phones, tablets and other electronic devices. That decision is seen as a blow to Apple, which must now change the connector on its iPhones sold in Europe by 2024. iPhones are in a unique position as they are charged from a Lightning cable that’s made in-house by Apple, while rival Android-based devices use more standard USB-C connectors.
Apple has warned that the proposal, which is designed to cut down on electronic waste, will hurt innovation going forward. However, it’s not clear how Apple will get around the new European requirements.
AAPL Stock Is Built for Long-Term Success
Despite some immediate issues, Apple continues to be the world’s dominant consumer electronics company and is likely to remain in that position for many years to come. Even as it manages supply chain issues in Asia and shifting regulations in Europe, the company continues to upgrade its existing products and introduce new ones that offer users constant improvements.
This approach has proven to be a recipe for success and should help Apple rebound mightily when the current market selloff finally ends. In the meantime, investors should view the current downturn in Apple’s share price as a buying opportunity. AAPL stock is a strong buy.
On the date of publication, Joel Baglole held a long position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post Apple’s Innovations Position the Stock for Long-Term Growth appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Despite ongoing supply chain and regulatory pressures, Apple (NASDAQ:AAPL) continues to roll out new features and products that will help keep its business and the AAPL stock price buoyant over the long-term. And while AAPL stock continues to decline along with the broader market, down 26% year-to-date at $132 a share, the Cupertino, California-based company’s innovations and new products position it to rebound strongly when the market finally acquiesces and begins to recover. AAPL Apple $132 Pay Later Service The big news coming out of Apple’s developer’s conference was a pay-later option that moves the company further into the financial services sector. | AAPL Stock Is Built for Long-Term Success Despite some immediate issues, Apple continues to be the world’s dominant consumer electronics company and is likely to remain in that position for many years to come. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Despite ongoing supply chain and regulatory pressures, Apple (NASDAQ:AAPL) continues to roll out new features and products that will help keep its business and the AAPL stock price buoyant over the long-term. And while AAPL stock continues to decline along with the broader market, down 26% year-to-date at $132 a share, the Cupertino, California-based company’s innovations and new products position it to rebound strongly when the market finally acquiesces and begins to recover. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Despite ongoing supply chain and regulatory pressures, Apple (NASDAQ:AAPL) continues to roll out new features and products that will help keep its business and the AAPL stock price buoyant over the long-term. AAPL Apple $132 Pay Later Service The big news coming out of Apple’s developer’s conference was a pay-later option that moves the company further into the financial services sector. And while AAPL stock continues to decline along with the broader market, down 26% year-to-date at $132 a share, the Cupertino, California-based company’s innovations and new products position it to rebound strongly when the market finally acquiesces and begins to recover. | AAPL Stock Is Built for Long-Term Success Despite some immediate issues, Apple continues to be the world’s dominant consumer electronics company and is likely to remain in that position for many years to come. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Despite ongoing supply chain and regulatory pressures, Apple (NASDAQ:AAPL) continues to roll out new features and products that will help keep its business and the AAPL stock price buoyant over the long-term. And while AAPL stock continues to decline along with the broader market, down 26% year-to-date at $132 a share, the Cupertino, California-based company’s innovations and new products position it to rebound strongly when the market finally acquiesces and begins to recover. | null |
542 | 20,631 | 2022-06-18 00:00:00 UTC | Netflix Must Do This to Succeed in Video Games | AAPL | https://www.nasdaq.com/articles/netflix-must-do-this-to-succeed-in-video-games | null | null | Increasing competition in the streaming market has led several companies to diversify their offerings. Netflix (NASDAQ: NFLX) has done this by moving into games with its launch of Netflix Games in November 2021.
While Netflix is taking a step in the right direction by offering additional services, the company may have bitten off more than it can chew with its gaming service. Here's what Netflix needs to succeed in the incredibly competitive world of gaming.
Name recognition is key
Netflix announced that it lost 200,000 subscribers in Q1 2022. The disappointment led to a complete shift in priorities for the company, resulting in content cancellations, a recently announced ad-supported tier, and a larger focus on games. The last has resulted in Netflix acquiring three game developers in less than a year: Boss Fight Entertainment, Night School, and Next Games. These studios' output varies considerably, from popular mobile games to acclaimed indie titles to tie-ins with familiar franchises such as The Walking Dead.
Netflix's head of external games, Leanne Loombe, said at the Tribeca Film Festival on June 13 that the company is "intentionally keeping things a little bit quiet [about Netflix Games] because we're still learning and experimenting." Loombe added that Netflix wants to "make sure that games are a really valuable part of our members' subscription."
So far, Netflix offers 23 games. Titles such as Queen's Gambit Chess and Stranger Things 1984 show Netflix is attempting to entice players with tie-ins to its popular content. However, this method makes the hefty assumption that fans of these series are also at least partially interested in playing games.
Meanwhile, streaming rival Apple (NASDAQ: AAPL) has steadily increased its services business, introducing Apple Arcade in September 2019, and similarly allowing consumers to use the game service ad-free alongside other offerings such as Apple TV+.
Rather than focus its gaming content on its streaming originals like Netflix, Apple has gone straight to the source by offering subscribers mobile titles from popular gaming brands. Apple Arcade currently offers games from well-known franchises such as LEGO, PAC-MAN, Sonic, Cooking Mama, and more. Apple's approach increases the odds that its players are already fans of games, increasing the odds of subscriber retention. The approach seems to be paying off: J.P Morgan has estimated that by 2025, Apple Arcade will see revenue increase 14% to $1.2 billion a year.
The Stranger Things of games
Gaming is a notoriously difficult and competitive industry to enter. If Netflix Games is going to help attract and retain subscribers, Netflix will need to offer hit games on the level of its mega-popular series Stranger Things, which racked up a record-breaking 286.79 million viewing hours in the first weekend of its latest season.
Microsoft (NASDAQ: MSFT) launched its subscription-based game service Xbox Game Pass in 2017, which has become an industry model for game subscription services, bringing in more than $3 billion a year. It is home to several Xbox exclusives, with one of its biggest draws being the Halo series. By purchasing popular developers such as The Elder Scrolls and Fallout developer Bethesda Softworks, Microsoft has given Game Pass subscribers access to a library of major franchises for the low price of $9.99/month.
Netflix built streaming from nothing and has experience breaking down barriers. It is possible that the company has a foolproof strategy for its venture into gaming. But while Netflix was the first in streaming, it's now trying to break into a decades-old, well-established industry filled with fierce competitors.
Previous companies with even more financial firepower have tried and failed. Google (NASDAQ: GOOGL), whose parent company is 18 times larger than Netflix, launching its subscription-based cloud gaming service, Stadia, in November 2019. That same month, Stadia captured just 2.4% of the player base for Destiny 2, one of the biggest and most played games across consoles and PCs. Stadia's share then decreased to 0.08% in 2022, as the company struggled to compete with established companies like Microsoft and Sony. Netflix Games will need to convince subscribers its platform is worth choosing over competitors.
The future of Netflix Games
Game-to-film adaptations are a current trend among nearly all streaming platforms. Netflix previously had success with its adapted series The Witcher and has announced several other game-to-TV adaptations in development based on Resident Evil, Assassin's Creed, and Cyberpunk.
If Netflix can work with the studios behind these games to tie an adapted series' release to a mobile game within the same franchise, the company would be in a better position to connect Netflix Games with the kind of diehard gamers who are more likely to stay subscribed for the long haul.
Streaming service investors should keep an eye on Netflix's future game developer acquisitions. Studios home to popular game franchises will be worth their weight in gold for Netflix, since the company can use their intellectual property to further entice more players and subscribers.
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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. | Meanwhile, streaming rival Apple (NASDAQ: AAPL) has steadily increased its services business, introducing Apple Arcade in September 2019, and similarly allowing consumers to use the game service ad-free alongside other offerings such as Apple TV+. The disappointment led to a complete shift in priorities for the company, resulting in content cancellations, a recently announced ad-supported tier, and a larger focus on games. These studios' output varies considerably, from popular mobile games to acclaimed indie titles to tie-ins with familiar franchises such as The Walking Dead. | Meanwhile, streaming rival Apple (NASDAQ: AAPL) has steadily increased its services business, introducing Apple Arcade in September 2019, and similarly allowing consumers to use the game service ad-free alongside other offerings such as Apple TV+. Microsoft (NASDAQ: MSFT) launched its subscription-based game service Xbox Game Pass in 2017, which has become an industry model for game subscription services, bringing in more than $3 billion a year. Google (NASDAQ: GOOGL), whose parent company is 18 times larger than Netflix, launching its subscription-based cloud gaming service, Stadia, in November 2019. | Meanwhile, streaming rival Apple (NASDAQ: AAPL) has steadily increased its services business, introducing Apple Arcade in September 2019, and similarly allowing consumers to use the game service ad-free alongside other offerings such as Apple TV+. Netflix (NASDAQ: NFLX) has done this by moving into games with its launch of Netflix Games in November 2021. If Netflix Games is going to help attract and retain subscribers, Netflix will need to offer hit games on the level of its mega-popular series Stranger Things, which racked up a record-breaking 286.79 million viewing hours in the first weekend of its latest season. | Meanwhile, streaming rival Apple (NASDAQ: AAPL) has steadily increased its services business, introducing Apple Arcade in September 2019, and similarly allowing consumers to use the game service ad-free alongside other offerings such as Apple TV+. Increasing competition in the streaming market has led several companies to diversify their offerings. Microsoft (NASDAQ: MSFT) launched its subscription-based game service Xbox Game Pass in 2017, which has become an industry model for game subscription services, bringing in more than $3 billion a year. | null |
543 | 20,657 | 2022-06-17 00:00:00 UTC | POLL-Taiwan May export orders seen just about returning to growth | AAPL | https://www.nasdaq.com/articles/poll-taiwan-may-export-orders-seen-just-about-returning-to-growth | null | null | For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI
Orders median forecast +0.3% y/y (prior month -5.5%)
Data due Monday, June 20, 4:00 p.m. (0800 GMT)
TAIPEI, June 17 (Reuters) - Taiwan's export orders likely returned to growth in May after experiencing their first fall in two years in the previous month, a Reuters poll showed on Friday, helped by demand for technology products and easing COVID-19 lockdowns in China.
The median forecast from a poll of 11 economists expects export orders to rise 0.3% from a year ago. Forecasts ranged from a contraction of 3% to an expansion of 6.7%.
The island's export orders, a bellwether of global technology demand, unexpectedly fell 5.5% from a year earlier to $51.9 billion in April, taking a larger-than-expected hit from COVID-19 lockdowns in China and broader global supply chain disruptions.
The government has predicted May orders to be in a range of a fall of 1.1% and an expansion of 1.7% from a year earlier.
Taiwan's export orders are a leading indicator of demand for hi-tech gadgets and Asian exports, and typically lead actual exports by two to three months.
The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N, are a key part of the global supply chain for technology giants including Apple Inc AAPL.O.
The data for May will be released on Monday.
(Poll compiled by Anant Chandak and Carol Lee; Reporting by Ben Blanchard; Editing by Rashmi Aich)
((ben.blanchard@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. | The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N, are a key part of the global supply chain for technology giants including Apple Inc AAPL.O. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI Orders median forecast +0.3% y/y (prior month -5.5%) Data due Monday, June 20, 4:00 p.m. (0800 GMT) TAIPEI, June 17 (Reuters) - Taiwan's export orders likely returned to growth in May after experiencing their first fall in two years in the previous month, a Reuters poll showed on Friday, helped by demand for technology products and easing COVID-19 lockdowns in China. The median forecast from a poll of 11 economists expects export orders to rise 0.3% from a year ago. | The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N, are a key part of the global supply chain for technology giants including Apple Inc AAPL.O. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI Orders median forecast +0.3% y/y (prior month -5.5%) Data due Monday, June 20, 4:00 p.m. (0800 GMT) TAIPEI, June 17 (Reuters) - Taiwan's export orders likely returned to growth in May after experiencing their first fall in two years in the previous month, a Reuters poll showed on Friday, helped by demand for technology products and easing COVID-19 lockdowns in China. The island's export orders, a bellwether of global technology demand, unexpectedly fell 5.5% from a year earlier to $51.9 billion in April, taking a larger-than-expected hit from COVID-19 lockdowns in China and broader global supply chain disruptions. | The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N, are a key part of the global supply chain for technology giants including Apple Inc AAPL.O. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI Orders median forecast +0.3% y/y (prior month -5.5%) Data due Monday, June 20, 4:00 p.m. (0800 GMT) TAIPEI, June 17 (Reuters) - Taiwan's export orders likely returned to growth in May after experiencing their first fall in two years in the previous month, a Reuters poll showed on Friday, helped by demand for technology products and easing COVID-19 lockdowns in China. The island's export orders, a bellwether of global technology demand, unexpectedly fell 5.5% from a year earlier to $51.9 billion in April, taking a larger-than-expected hit from COVID-19 lockdowns in China and broader global supply chain disruptions. | The island's manufacturers, including the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd 2330.TWTSM.N, are a key part of the global supply chain for technology giants including Apple Inc AAPL.O. For poll data click: reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/econ-polls?RIC=TWEXOR%3DECI Orders median forecast +0.3% y/y (prior month -5.5%) Data due Monday, June 20, 4:00 p.m. (0800 GMT) TAIPEI, June 17 (Reuters) - Taiwan's export orders likely returned to growth in May after experiencing their first fall in two years in the previous month, a Reuters poll showed on Friday, helped by demand for technology products and easing COVID-19 lockdowns in China. Forecasts ranged from a contraction of 3% to an expansion of 6.7%. | null |
544 | 20,665 | 2022-06-16 00:00:00 UTC | 3 Things About Twitter That Smart Investors Know | AAPL | https://www.nasdaq.com/articles/3-things-about-twitter-that-smart-investors-know | null | null | Twitter (NYSE: TWTR) set ambitious growth targets during its analyst day presentation last February. The social media company claimed it could grow its monetizable daily active users (mDAUs) from 192 million at the end of 2020 to over 315 million by the end of 2023, and more than double its annual revenue from $3.7 billion in 2020 to "over $7.5 billion" in 2023.
Those goals initially impressed investors, but CEO Jack Dorsey's abrupt resignation last November cast a dark cloud over those plans. His successor, Parag Agrawal, was also a controversial pick because he once declared that Twitter's role was "not to be bound by the First Amendment."
Image source: Getty Images.
That controversy eventually drove Tesla (NASDAQ: TSLA) CEO Elon Musk to launch a hostile bid for the entire company for $44 billion in late April. Twitter eventually accepted the deal, but Musk subsequently accused the company of inflating its user numbers with bot and spam accounts.
As a result, the deal remains in limbo and Twitter's stock trades more than 40% below Musk's "best and final" offer of $54.20 a share. But for now, smart investors should keep in mind three other things about the company that might eventually affect the outcome of this messy deal.
1. Twitter has repeatedly struggled to count its users
Unlike most other social media companies, Twitter has repeatedly adjusted its user measurement standards over the past several years. Back in 2014, the company admitted that "up to approximately 8.5%" of its active users were likely bots that "automatically contacted our servers for regular updates without any discernible additional user-initiated action."
In early 2015, it abruptly lost about 3 million monthly active users (MAUs) after Apple (NASDAQ: AAPL) stopped allowing its Safari browser to automatically pull links from a user's Twitter followers. Up until that point, Twitter had been counting those automated queries as "active" users. It lost another 1 million MAUs after Apple's iOS update temporarily broke its password encryption system.
In 2019, Twitter replaced its MAUs, which had been declining, with mDAUs to emphasize its growth in monetizable users. But during its first-quarter report this April, the company admitted that it had accidentally counted multiple accounts that were linked to a single user as separate DAUs for the past three years. It said that this miscalculation only reduced its total mDAUs by less than 2 million, but it sowed even more doubts about its ability to consistently measure its core audience.
In its first-quarter report in May, Twitter said fewer than 5% of its mDAUs were "false or spam accounts." Musk is disputing that claim, and the acquisition will likely remain on ice until that argument is resolved.
2. Its data licensing business is controversial
Twitter generates most of its revenue from ads, but its data licensing business (now known as its "subscription and other" segment) still accounted for 8% of its top line in its latest quarter.
This business licenses a "firehose" of public tweets to large customers for analytics purposes. However, some of its applications are highly controversial.
High-frequency trading (HFT) firms use that firehose to power their rapid-fire trades, which likely contributed to several "flash crashes" in recent years. Media outlets often use its firehose to follow recent events, but weak fact-checking standards can lead to the proliferation of fake news.
The Saudi Arabian government has also reportedly used that firehose to hunt down and persecute dissidents, which should raise some concerns about the Saudi prince Al Waleed bin Talal Al Saud being Twitter's second-largest shareholder after Elon Musk. In a stunning move earlier this month, Twitter also granted Musk full access to its entire firehose to address his concerns about bots and fake accounts.
3. It recently paid huge litigation fees
Twitter lost nearly $1 billion to lawsuits over the past year. Last September, it agreed to pay $809.5 million to investors in a class action lawsuit related to some goals it set back in 2014.
At the time, Twitter claimed it could reach over 550 million MAUs in the "intermediate" term and more than 1 billion MAUs over a "longer term." However, it only reached 321 million in MAUs in the fourth quarter of 2018 before it discarded the metric altogether in the first quarter of 2019. That massive settlement was the main reason it posted a net loss of $221 million in fiscal 2021.
This May, Twitter agreed to pay $150 million to settle a privacy lawsuit with the Department of Justice (DOJ) and Federal Trade Commission (FTC). The company had been sued for "unintentionally" using its users' phone numbers and email addresses to craft targeted ads.
These settlements probably won't throttle Twitter's long-term growth, but they highlight the company's tendency to overpromise and underdeliver while making careless and costly mistakes.
Twitter still faces a lot of problems
It might be tempting to buy the stock as an arbitrage play right now, but it faces a lot of near-term challenges. If Musk eventually walks away, Twitter could continue to struggle to expand its audience and stay relevant in the maturing social media market as a recession looms on the horizon.
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Leo Sun has positions in Apple. The Motley Fool has positions in and recommends Apple, Tesla, and Twitter. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In early 2015, it abruptly lost about 3 million monthly active users (MAUs) after Apple (NASDAQ: AAPL) stopped allowing its Safari browser to automatically pull links from a user's Twitter followers. That controversy eventually drove Tesla (NASDAQ: TSLA) CEO Elon Musk to launch a hostile bid for the entire company for $44 billion in late April. These settlements probably won't throttle Twitter's long-term growth, but they highlight the company's tendency to overpromise and underdeliver while making careless and costly mistakes. | In early 2015, it abruptly lost about 3 million monthly active users (MAUs) after Apple (NASDAQ: AAPL) stopped allowing its Safari browser to automatically pull links from a user's Twitter followers. Twitter has repeatedly struggled to count its users Unlike most other social media companies, Twitter has repeatedly adjusted its user measurement standards over the past several years. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | In early 2015, it abruptly lost about 3 million monthly active users (MAUs) after Apple (NASDAQ: AAPL) stopped allowing its Safari browser to automatically pull links from a user's Twitter followers. The social media company claimed it could grow its monetizable daily active users (mDAUs) from 192 million at the end of 2020 to over 315 million by the end of 2023, and more than double its annual revenue from $3.7 billion in 2020 to "over $7.5 billion" in 2023. Twitter has repeatedly struggled to count its users Unlike most other social media companies, Twitter has repeatedly adjusted its user measurement standards over the past several years. | In early 2015, it abruptly lost about 3 million monthly active users (MAUs) after Apple (NASDAQ: AAPL) stopped allowing its Safari browser to automatically pull links from a user's Twitter followers. Twitter eventually accepted the deal, but Musk subsequently accused the company of inflating its user numbers with bot and spam accounts. Twitter has repeatedly struggled to count its users Unlike most other social media companies, Twitter has repeatedly adjusted its user measurement standards over the past several years. | null |
545 | 20,692 | 2022-06-15 00:00:00 UTC | Qualcomm wins court fight against $1 bln EU antitrust fine | AAPL | https://www.nasdaq.com/articles/qualcomm-wins-court-fight-against-%241-bln-eu-antitrust-fine | null | null | By Foo Yun Chee
LUXEMBOURG, June 15 (Reuters) - U.S. chipmaker Qualcomm QCOM.O on Wednesday won its fight against a 997-million-euro ($1.05 billion) fine imposed by EU antitrust regulators four years ago for paying Apple AAPL.O to use only its chips and blocking out rivals such as Intel Corp INTC.O.
The European Commission in its 2018 decision said the anti-competitive practice took place from 2011 to 2016, with Qualcomm paying billions of dollars to Apple to use its chips in all its iPhones and iPads.
The General Court, Europe's second-highest, annulled the EU finding, dealing EU antitrust chief Margrethe Vestager a major blow.
"A number of procedural irregularities affected Qualcomm's rights of defence and invalidate the Commission's analysis of the conduct alleged against Qualcomm," judges said.
The EU competition enforcer can appeal on matters of law to the EU Court of Justice (CJEU), Europe's highest.
The case is T-235/18.
($1 = 0.9532 euros)
(Reporting by Foo Yun Chee, additional reporting by Charlotte Van Campenhout; Editing by Kirsten Donovan)
((foo.yunchee@thomsonreuters.com; +32 2 287 6844; Reuters Messaging: foo.yunchee.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 Foo Yun Chee LUXEMBOURG, June 15 (Reuters) - U.S. chipmaker Qualcomm QCOM.O on Wednesday won its fight against a 997-million-euro ($1.05 billion) fine imposed by EU antitrust regulators four years ago for paying Apple AAPL.O to use only its chips and blocking out rivals such as Intel Corp INTC.O. The European Commission in its 2018 decision said the anti-competitive practice took place from 2011 to 2016, with Qualcomm paying billions of dollars to Apple to use its chips in all its iPhones and iPads. ($1 = 0.9532 euros) (Reporting by Foo Yun Chee, additional reporting by Charlotte Van Campenhout; Editing by Kirsten Donovan) ((foo.yunchee@thomsonreuters.com; +32 2 287 6844; Reuters Messaging: foo.yunchee.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 Foo Yun Chee LUXEMBOURG, June 15 (Reuters) - U.S. chipmaker Qualcomm QCOM.O on Wednesday won its fight against a 997-million-euro ($1.05 billion) fine imposed by EU antitrust regulators four years ago for paying Apple AAPL.O to use only its chips and blocking out rivals such as Intel Corp INTC.O. The General Court, Europe's second-highest, annulled the EU finding, dealing EU antitrust chief Margrethe Vestager a major blow. ($1 = 0.9532 euros) (Reporting by Foo Yun Chee, additional reporting by Charlotte Van Campenhout; Editing by Kirsten Donovan) ((foo.yunchee@thomsonreuters.com; +32 2 287 6844; Reuters Messaging: foo.yunchee.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 Foo Yun Chee LUXEMBOURG, June 15 (Reuters) - U.S. chipmaker Qualcomm QCOM.O on Wednesday won its fight against a 997-million-euro ($1.05 billion) fine imposed by EU antitrust regulators four years ago for paying Apple AAPL.O to use only its chips and blocking out rivals such as Intel Corp INTC.O. The case is T-235/18. ($1 = 0.9532 euros) (Reporting by Foo Yun Chee, additional reporting by Charlotte Van Campenhout; Editing by Kirsten Donovan) ((foo.yunchee@thomsonreuters.com; +32 2 287 6844; Reuters Messaging: foo.yunchee.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 Foo Yun Chee LUXEMBOURG, June 15 (Reuters) - U.S. chipmaker Qualcomm QCOM.O on Wednesday won its fight against a 997-million-euro ($1.05 billion) fine imposed by EU antitrust regulators four years ago for paying Apple AAPL.O to use only its chips and blocking out rivals such as Intel Corp INTC.O. The European Commission in its 2018 decision said the anti-competitive practice took place from 2011 to 2016, with Qualcomm paying billions of dollars to Apple to use its chips in all its iPhones and iPads. The General Court, Europe's second-highest, annulled the EU finding, dealing EU antitrust chief Margrethe Vestager a major blow. | 4 |
546 | 20,713 | 2022-06-14 00:00:00 UTC | Tech Sell-Off: 1 Stock That's Defying the Downturn and Looks Set to Explode | AAPL | https://www.nasdaq.com/articles/tech-sell-off%3A-1-stock-thats-defying-the-downturn-and-looks-set-to-explode | null | null | Technology stocks have been hammered brutally on the market, but contract electronics manufacturer Jabil (NYSE: JBL) has held its ground so far thanks to the strength of its business and its attractive valuation.
While the tech-laden Nasdaq-100 Technology Sector index has lost 16.4% of its value in the past three months, Jabil stock has remained relatively flat (down 2%). What's more, shares of the Apple (NASDAQ: AAPL) supplier have been in recovery mode of late despite the absence of any company-specific information.
With Jabil set to release its fiscal 2022 third-quarter earnings report on Thursday, June 16, it won't be surprising to see this tech stock get a nice shot in the arm. Let's take a peek at what Jabil's quarterly numbers could look like and see why the stock can go on a bull run.
Jabil's growth has picked up the pace in recent quarters
Jabil has delivered consistently strong results this fiscal year thanks to the healthy demand for its services from different verticals such as 5G, automotive, healthcare, networking, connected devices, and healthcare. As it turns out, the company has raised its guidance for fiscal 2022 twice already and expects fiscal third-quarter revenue to land at $8.2 billion at the midpoint of its guidance range.
That would translate into a nice year-over-year increase of 14%. The company has guided for non-GAAP earnings of $1.60 per share at the midpoint, which would be a 23% jump over the year-ago quarter's figure of $1.30 per share. Analysts, however, have raised their expectations from Jabil. Wall Street is looking for $1.62 per share in earnings from Jabil on revenue of $8.22 billion.
The good part is that Jabil is witnessing solid momentum across its multiple end markets that could help it beat Wall Street's expectations. CFO Mike Dastoor had said on the March earnings conference call that Jabil is "expecting double-digit growth from the healthcare, automotive retail, industrial and semi-cap, and 5G wireless and cloud end markets."
The electric vehicle market is going to be a key growth driver for Jabil. The company points out that acceleration in the adoption of electric vehicles is expected to drive 50%-plus growth in automotive revenue this year. Jabil provides critical applications for electric vehicles such as battery management systems. This secular growth opportunity is driving impressive growth in the automotive business, and it should be a long-term tailwind for Jabil, as the global battery management systems market is expected to clock nearly 20% annual growth over the next decade, according to market researcher Fact.MR.
Jabil's biggest customer, Apple, which accounted for 22% of the company's top line in fiscal 2021, is another reason the company's results and guidance could turn out to be better than expected. While the overall smartphone market was down in the first quarter of 2022, Apple defied expectations with an increase in iPhone sales. That's because the company has been able to negotiate the supply chain challenges and is on track to produce 250 million iPhones in 2022, per third-party estimates.
Other estimates suggest that Apple could produce 300 million iPhones this year, though that seems a tad aggressive amid the supply chain constraints plaguing the industry and macroeconomic headwinds. Still, Apple's iPhone shipments are expected to head higher in 2022. Apple shipped an estimated 236 million iPhones last year, so the growth in shipments of its largest customer should rub off positively on Jabil, as it supplies aluminum casings used in iPhones and iPads.
The stock is an enticing buy
Jabil looks well placed to deliver another quarter of impressive growth, and it could back its numbers up with robust guidance. Jabil stock is now trading at just 10 times earnings, compared to its five-year average earnings multiple of 38. The forward earnings multiple of 7.7 is even more attractive and points toward an improvement in the company's bottom line.
That's why investors looking to buy a value stock may want to take a closer look at Jabil before it releases its earnings, as a solid showing could send its shares soaring and make the stock relatively more expensive.
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Harsh Chauhan has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What's more, shares of the Apple (NASDAQ: AAPL) supplier have been in recovery mode of late despite the absence of any company-specific information. Technology stocks have been hammered brutally on the market, but contract electronics manufacturer Jabil (NYSE: JBL) has held its ground so far thanks to the strength of its business and its attractive valuation. With Jabil set to release its fiscal 2022 third-quarter earnings report on Thursday, June 16, it won't be surprising to see this tech stock get a nice shot in the arm. | What's more, shares of the Apple (NASDAQ: AAPL) supplier have been in recovery mode of late despite the absence of any company-specific information. As it turns out, the company has raised its guidance for fiscal 2022 twice already and expects fiscal third-quarter revenue to land at $8.2 billion at the midpoint of its guidance range. CFO Mike Dastoor had said on the March earnings conference call that Jabil is "expecting double-digit growth from the healthcare, automotive retail, industrial and semi-cap, and 5G wireless and cloud end markets." | What's more, shares of the Apple (NASDAQ: AAPL) supplier have been in recovery mode of late despite the absence of any company-specific information. Jabil's growth has picked up the pace in recent quarters Jabil has delivered consistently strong results this fiscal year thanks to the healthy demand for its services from different verticals such as 5G, automotive, healthcare, networking, connected devices, and healthcare. This secular growth opportunity is driving impressive growth in the automotive business, and it should be a long-term tailwind for Jabil, as the global battery management systems market is expected to clock nearly 20% annual growth over the next decade, according to market researcher Fact.MR. | What's more, shares of the Apple (NASDAQ: AAPL) supplier have been in recovery mode of late despite the absence of any company-specific information. The company points out that acceleration in the adoption of electric vehicles is expected to drive 50%-plus growth in automotive revenue this year. Apple shipped an estimated 236 million iPhones last year, so the growth in shipments of its largest customer should rub off positively on Jabil, as it supplies aluminum casings used in iPhones and iPads. | 2 |
547 | 20,730 | 2022-06-13 00:00:00 UTC | US STOCKS-Futures fall on bets of aggressive Fed rate hikes | AAPL | https://www.nasdaq.com/articles/u.s.-stock-futures-fall-on-bets-of-aggressive-fed-rate-hikes | null | null | By Sruthi Shankar and Anisha Sircar
June 13 (Reuters) - U.S. stock index futures tumbled on Monday as a widely watched part of the Treasury yield curve inverted on fears that big Federal Reserve rate hikes would tip the economy into recession.
If current losses hold, the S&P 500 .SPX will open more than 20% below its record closing high of Jan 3, putting the index on track to confirm a bear market for the second time since the pandemic-led rout on Wall Street in 2020.
Shares of Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell between 2.5% and 4.1% in premarket trading.
A hotter-than-expected inflation print on Friday pushed traders to price in a total of 175 basis point (bps) in interest rate hikes by September, with many expecting a bigger-than-estimated 75 bps rate increase on June 15. DWATCH>
The two-year 10-year U.S. Treasury yield curve US2US10=TWEB briefly inverted for the first time since April, a move viewed by many in the market as a reliable signal that a recession could come in the next year or two.US/
"Although tech stocks are more sensitive to long-term yields, the heightened risk of recession is weighing on overvalued stocks," said Raffi Boyadjian, lead investment analyst at brokerage XM.
"The inversion of part of the US yield curve has only made the threat of a recession more real."
The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, spiked to 32.54 points, its highest level since May 19.
At 07:20 a.m. ET (1120 GMT) Dow e-minis 1YMcv1 were down 544 points, or 1.73%, S&P 500 e-minis EScv1 were down 87.25 points, or 2.24%, and Nasdaq 100 e-minis NQcv1 were down 345.25 points, or 2.92%.
The Fed's interest rate decision is due on June 14-15, with focus on the speed and scale of rate hikes that policymakers believe will be needed to quash red-hot inflation.
The central bank's latest projections through 2024 and beyond for economic growth, unemployment and inflation will also come under scrutiny.
Last week, U.S. stocks posted their biggest weekly percentage declines since January on worries over a steeper-than-expected rise in U.S. consumer prices, rising interest rates and the likelihood of a recession.
Cryptocurrency and blockchain-related stocks including Riot Blockchain RIOT.O, Marathon Digital Holdings MARA.O and Coinbase Global COIN.O fell over 15% as bitcoin BTC=BTSP, slumped close to 20% amid a wider selloff.
Inversionhttps://tmsnrt.rs/3zPQQPp
(Reporting by Sruthi Shankar, Anisha Sircar and Devik Jain in Bengaluru; Editing by Anil D'Silva)
((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. | Shares of Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell between 2.5% and 4.1% in premarket trading. By Sruthi Shankar and Anisha Sircar June 13 (Reuters) - U.S. stock index futures tumbled on Monday as a widely watched part of the Treasury yield curve inverted on fears that big Federal Reserve rate hikes would tip the economy into recession. If current losses hold, the S&P 500 .SPX will open more than 20% below its record closing high of Jan 3, putting the index on track to confirm a bear market for the second time since the pandemic-led rout on Wall Street in 2020. | Shares of Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell between 2.5% and 4.1% in premarket trading. By Sruthi Shankar and Anisha Sircar June 13 (Reuters) - U.S. stock index futures tumbled on Monday as a widely watched part of the Treasury yield curve inverted on fears that big Federal Reserve rate hikes would tip the economy into recession. A hotter-than-expected inflation print on Friday pushed traders to price in a total of 175 basis point (bps) in interest rate hikes by September, with many expecting a bigger-than-estimated 75 bps rate increase on June 15. | Shares of Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell between 2.5% and 4.1% in premarket trading. By Sruthi Shankar and Anisha Sircar June 13 (Reuters) - U.S. stock index futures tumbled on Monday as a widely watched part of the Treasury yield curve inverted on fears that big Federal Reserve rate hikes would tip the economy into recession. A hotter-than-expected inflation print on Friday pushed traders to price in a total of 175 basis point (bps) in interest rate hikes by September, with many expecting a bigger-than-estimated 75 bps rate increase on June 15. | Shares of Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Microsoft Corp MSFT.O and Amazon.com Inc AMZN.O fell between 2.5% and 4.1% in premarket trading. By Sruthi Shankar and Anisha Sircar June 13 (Reuters) - U.S. stock index futures tumbled on Monday as a widely watched part of the Treasury yield curve inverted on fears that big Federal Reserve rate hikes would tip the economy into recession. The CBOE Volatility index .VIX, also known as Wall Street's fear gauge, spiked to 32.54 points, its highest level since May 19. | 3 |
548 | 20,741 | 2022-06-12 00:00:00 UTC | 2 Warren Buffett Stocks to Buy Now and Hold Forever | AAPL | https://www.nasdaq.com/articles/2-warren-buffett-stocks-to-buy-now-and-hold-forever-0 | null | null | When it comes to following famous investors, track records matter. After 57 years as CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), Warren Buffett's track record is about as long as they get. It's also, quite possibly, the most successful investment record in history.
When Buffett took the helm in 1965, Berkshire Hathaway was trading for just $19 per share. Berkshire's Class A shares (BRK.A) have been trading at an eye-popping $478,670 lately. From 1965 through the end of 2021, shares of the sprawling conglomerate generated a compound annual return of 20.1% compared to just 10.5% for the benchmark S&P 500 index.
Riding on Buffett's coattails has been a successful strategy for longer than most of us have been alive. Clearly, paying attention to Berkshire Hathaway's disclosures can pay off well for patient investors.
Apple
Apple (NASDAQ: AAPL) is easily the largest holding in Berkshire's portfolio. Buffett is famously uncomfortable with tech stocks, but he gladly tells anyone who will listen that Apple is a favorite thanks to some impenetrable competitive advantages.
The iPhone has been the single most popular handheld device since it launched in 2007. It's still in a league of its own thanks to an operating system the company doesn't allow other manufacturers to access the way Alphabet licenses Android.
The pricing power Apple enjoys on its devices is significant, but it isn't going to be the company's main source of profits in the years ahead. Buffett can't get enough of Apple right now because he expects its services segment to continue growing at a strong pace for many years to come. During the fiscal second quarter ended March 26, 2022, services revenue grew 17% year over year to $19.8 billion.
If you're holding one of more than 1 billion active iPhones at the moment, and you initially subscribed to an application through the App Store, Apple most likely keeps between 15% and 30% of your subscription fees. Apple generates revenue from more services than its App Store and it runs them well. For example, Apple TV+ recently beat Netflix to become the first streaming service to win an Academy Award for Best Picture.
Buffett also adores Apple's commitment to returning its profits to shareholders. In April, Apple's board of directors raised its repurchase program by $90 billion and the company also nudged its quarterly cash dividend 4.5% higher. During the first half of fiscal 2022, the company bought and retired $43 billion worth of its own stock. With a new $90 billion authorization, this pace could accelerate.
Amazon.com
In 2019, Berkshire Hathaway began accumulating Amazon.com (NASDAQ: AMZN) shares. The stock shot higher during the early days of the pandemic, but it's been beaten down by around 41% from the peak it reached last summer. Heavy investment in fulfillment services that were necessary to meet exploding demand in 2020 and 2021 led to a net loss of $3.8 billion in the first quarter of 2022.
At just 0.4% of the overall portfolio, Berkshire's Amazon stake is a relatively minor one. In the months ahead, though, I expect to the size of this stake to increase significantly. According to the U.S. Census Bureau, e-commerce accounted for less than 15% of total retail sales during the first quarter, giving Amazon's consumer business plenty of room to grow.
Amazon's greatest strength is its ability to turn challenges into successful new businesses. For example, the company had to invest heavily in internet infrastructure to run its online shopping business. Instead of chafing at its own expenses, the company leaned in and later launched Amazon Web Services (AWS) in 2006. Now, AWS is the company's most profitable segment. Sales from AWS in the first quarter soared 37% year over year to $18.4 billion, $6.5 billion of which Amazon was able to report as operating income.
Amazon's consumer business has been in its present position before. The big difference now is that the company is supported by positive cash flows from other parts of its increasingly diverse operation. With the means to support the consumer business on its path back to profitability, this is a great stock to buy and hold for the long run.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), and Netflix. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Apple (NASDAQ: AAPL) is easily the largest holding in Berkshire's portfolio. In April, Apple's board of directors raised its repurchase program by $90 billion and the company also nudged its quarterly cash dividend 4.5% higher. According to the U.S. Census Bureau, e-commerce accounted for less than 15% of total retail sales during the first quarter, giving Amazon's consumer business plenty of room to grow. | Apple Apple (NASDAQ: AAPL) is easily the largest holding in Berkshire's portfolio. After 57 years as CEO of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), Warren Buffett's track record is about as long as they get. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), and Netflix. | Apple Apple (NASDAQ: AAPL) is easily the largest holding in Berkshire's portfolio. Sales from AWS in the first quarter soared 37% year over year to $18.4 billion, $6.5 billion of which Amazon was able to report as operating income. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), and Netflix. | Apple Apple (NASDAQ: AAPL) is easily the largest holding in Berkshire's portfolio. It's also, quite possibly, the most successful investment record in history. Sales from AWS in the first quarter soared 37% year over year to $18.4 billion, $6.5 billion of which Amazon was able to report as operating income. | 4 |
549 | 20,747 | 2022-06-11 00:00:00 UTC | Is Apple About to Conquer This Innovative Big Tech Space? | AAPL | https://www.nasdaq.com/articles/is-apple-about-to-conquer-this-innovative-big-tech-space | null | null | Apple's (NASDAQ: AAPL) strategy for taking over a tech space is notorious. In this video clip from "The Virtual Opportunities Show" on Motley Fool Live, recorded on May 31, Fool.com contributors Travis Hoium, Rachel Warren, and Demitri Kalogeropoulos explain how it appears that the tech giant could soon be making a big move into AR and VR headsets.
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Travis Hoium: I think this is an interesting company in this space specifically because, Oculus has had headsets out for what, six years now? Apple doesn't release half-baked ideas. The idea of a headset plugging into a specific gaming computer with a specific graphics card and very limited content and all the things that Oculus did and had to do to grow up the way that they have, that's not what Apple does.
Apple watches the industry develop, and they want to be the second or third mover. They want to come in and just drop a bomb and go, this is the way you should've been doing it all along. [laughs] We look back on something like the iPhone and you go, of course, that makes a ton of sense.
But they waited and they saw everything developing, and there was a number of reasons they didn't release something like the iPhone earlier. Well, they kind of tried. They had a deal with, I believe it was with Motorola (NYSE: MSI) to do the iTunes phone that didn't do very well. I think what we're seeing here is them waiting.
We've talked about the chips that they have developed for their Max that I think everybody expects at least one of those chips to end up in this headset in some way, shape, or form. It's like they're building these building blocks that will eventually lead us to some sort of headset. We just don't know quite what it looks like. We'll see what we learn next week, but we're starting to get at least kernels coming out.
Rachel Warren: I do think it's a really interesting point you bring up of Apple, unlike a lot of companies. Sometimes you think of, oh, you need to have first-mover advantage, particularly in a highly competitive space in order to win. I think it's interesting the point you raised that Apple has said, well no, I'm not necessarily going to make a new mouse trap, I'm just going to make it better than anybody else. [laughs] I think that's something that they continue to do. I think that's a really interesting approach that they've taken and I like that as an investor.
Demitri Kalogeropoulos: Another part of Apple that makes it a little special in this space, as I always think, is how better platforms and Microsoft (NASDAQ: MSFT) two of the other bigger players in the space seem to be making as much noise as they can about how they are in the metaverse and how they're developing AR and VR stuff. In part because they want to attract all that great staffing and everything like that.
Apple is special in the fact that I guess probably it doesn't have to do that or it's secretive too in the same way. It's taken a whole different approach. It's like, maybe we're working on it, maybe we're not, we're not going to confirm anything. It's always interesting to see Apple. Apple definitely walks to the beat of its own drum for sure.
Demitri Kalogeropoulos has positions in Apple. Rachel Warren has positions in Apple. Travis Hoium has positions in Apple. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple's (NASDAQ: AAPL) strategy for taking over a tech space is notorious. In this video clip from "The Virtual Opportunities Show" on Motley Fool Live, recorded on May 31, Fool.com contributors Travis Hoium, Rachel Warren, and Demitri Kalogeropoulos explain how it appears that the tech giant could soon be making a big move into AR and VR headsets. Find out why Apple is one of the 10 best stocks to buy now Our award-winning analyst team has spent more than a decade beating the market. | Apple's (NASDAQ: AAPL) strategy for taking over a tech space is notorious. In this video clip from "The Virtual Opportunities Show" on Motley Fool Live, recorded on May 31, Fool.com contributors Travis Hoium, Rachel Warren, and Demitri Kalogeropoulos explain how it appears that the tech giant could soon be making a big move into AR and VR headsets. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | Apple's (NASDAQ: AAPL) strategy for taking over a tech space is notorious. I think it's interesting the point you raised that Apple has said, well no, I'm not necessarily going to make a new mouse trap, I'm just going to make it better than anybody else. Demitri Kalogeropoulos: Another part of Apple that makes it a little special in this space, as I always think, is how better platforms and Microsoft (NASDAQ: MSFT) two of the other bigger players in the space seem to be making as much noise as they can about how they are in the metaverse and how they're developing AR and VR stuff. | Apple's (NASDAQ: AAPL) strategy for taking over a tech space is notorious. But they waited and they saw everything developing, and there was a number of reasons they didn't release something like the iPhone earlier. I think that's a really interesting approach that they've taken and I like that as an investor. | 4 |
550 | 20,763 | 2022-06-10 00:00:00 UTC | The 3 Reasons to Own PayPal Stock | AAPL | https://www.nasdaq.com/articles/the-3-reasons-to-own-paypal-stock | null | null | Here are three main reasons that you should own PayPal (NASDAQ: PYPL) stock. It is one of my favorite fintech companies due to its high free cash flow and increased monetization of its service Venmo.
*Stock prices used were the midday prices of June 8, 2022. The video was published on June 8, 2022.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Connor Allen has positions in Alphabet (A shares), Apple, and PayPal Holdings. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and PayPal Holdings. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It is one of my favorite fintech companies due to its high free cash flow and increased monetization of its service Venmo. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and PayPal Holdings wasn't one of them! | After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Connor Allen has positions in Alphabet (A shares), Apple, and PayPal Holdings. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and PayPal Holdings. | 10 stocks we like better than PayPal Holdings When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of June 2, 2022 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and PayPal Holdings. | * They just revealed what they believe are the ten best stocks for investors to buy right now... and PayPal Holdings wasn't one of them! See the 10 stocks *Stock Advisor returns as of June 2, 2022 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, and PayPal Holdings. | 4 |
551 | 20,797 | 2022-06-09 00:00:00 UTC | Top Stock Market News For Today June 9, 2022 | AAPL | https://www.nasdaq.com/articles/top-stock-market-news-for-today-june-9-2022 | null | null | Stock Market Futures Inch Higher After Snapping Two-Day Winning Streak
U.S. stock futures are edging up in early morning trading today. This would continue the ongoing uncertainty across the stock market. Between talks of inflation, growing economic headwinds, and the possibility of a recession, this is not that surprising. Not to mention, retailers such as Scotts Miracle-Gro (NYSE: SMG) and Target (NYSE: TGT) continue to slash their financial outlooks. Both of these firms, as of this week, are doing so because of excessive inventory issues.
Overall, as inflation and interest rate expectations remain persistent concerns for investors, economic data releases would be among the market movers to consider. In particular, the Bureau of Labor Statistics is set to release its Consumer Price Index (CPI) reading for May on Friday. By current consensus economist forecasts, we could see the CPI ease marginally month-over-month.
Meanwhile, mentions of some potential M&A action between Roku (NASDAQ: ROKU) and Netflix (NASDAQ: NFLX) are also making the rounds in the stock market this week. Should the latter be looking to acquire Roku, it would mark a massive event for streaming stocks in general. While taking all this information in, investors also have plenty ofstock market newsto keep up with today. As of 6:51 a.m. ET, the Dow, S&P 500, and Nasdaq futures are trading higher by 0.54%, 0.61%, and 0.69% respectively.
Apple Advances Fintech Strategy With In-House Lending Solutions
Making headlines yet again today would be consumer tech giant Apple (NASDAQ: AAPL). Notably, the company’s WWDC continues to bring massive announcements, mostly across its software offerings. Aside from the slew of key updates to its iOS and MacBook divisions, Apple is also making leaps on the fintech front. With regards to its new buy-now-pay-later (BNPL) solution, Apple Pay Later (APL), a wholly owned subsidiary of Apple will check user credit and extend short-term loans to users of APL. For one thing, this announcement would be a sizable shake up in the industry.
All in all, Apple’s latest move would put it in direct competition with fintech giants such as Affirm (NASDAQ: AFRM) and PayPal (NASDAQ: PYPL). As it stands, Apple is planning to release these new fintech features alongside its latest iOS 16 iPhone software. This would serve to significantly expand Apple Pay’s current list of services. In particular, APL will allow Apple Pay users to pay for purchases across four equal payments over six weeks. Moreover, the company is currently working with Mastercard (NYSE: MA) to enable its BNPL service. Meanwhile, Goldman Sachs (NYSE: GS) will remain the issuer for the company’s Apple Card. As such, investors would likely continue to tune in to AAPL stock now.
Source: TradingView
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Palantir Brings On NHS Officials In Efforts To Secure $450 Million U.K. Health Management Contract
In other news, Palantir (NYSE: PLTR) appears to be hard at work expanding its operations. According to the Financial Times, the big data analytics firm is bringing on senior National Health Service (NHS) officials to its team. Accordingly, this could be part of the company’s plans to secure a $450 million contract to manage the U.K.’s health care data. For a sense of scale, this would involve the medical data of millions of patients in the U.K. If anything, Palantir is already the NHS’s go-to data analytics solutions provider, starting from the earlier days of the pandemic.
Through its latest employment moves, Palantir has been and will likely continue to bid for the five-year $450 million health care contract. This will revolve around the management of the Federated Data Platform (FDP). In brief, the FDP is a cutting-edge tool that connects and integrates patient data across the national health care system. Thanks to this feature, health care officials ranging from clinicians to bureaucrats can make real-time decisions. Should things go as planned, Palantir will likely receive an update on this in November later this year. With all this in mind, PLTR stock could be in focus at the opening bell later today.
Source: TradingView
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DocuSign Earnings Preview: What To Know Beyond The Microsoft Deal Expansion
On the earnings front today, DocuSign (NASDAQ: DOCU) could be worth checking out as well. In general, this could be the case seeing as it is set to report its latest quarterly earnings after the closing bell. Getting into the details, consensus figures on Wall Street are earnings of $0.46 per share on revenue of $581.85 million. Should this be the case, it would add up to year-over-year gains of 4.5% and 24% respectively. On the whole, investors will likely be keen to see how this pandemic-era tech darling performed for the quarter. After all, the likes of Zoom (NASDAQ: ZM) did post a sizable earnings beat in its latest quarterly update last month.
Also worth mentioning, DOCU stock appears to be on a roll at the moment. Over the past month, the company’s shares are up by over 25%. Among the latest catalysts for this growth would be the company’s latest work with Microsoft (NASDAQ: MSFT). Just yesterday, the duo revealed that they would be expanding their global strategic partnership. As a result of the agreement, users of Microsoft’s enterprise solutions now have access to more of DocuSign’s offerings. Mainly, this includes new integrations with the DocuSign Agreement Cloud. After considering all of this, I could see DOCU stock gaining attention in the stock market now.
Source: TradingView
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Stock Market Earnings To Watch Today
Aside from DocuSign, here are the other notable companies reporting earnings today. In the pre-market hours, FuelCell Energy (NASDAQ: FCEL), Bilibili (NASDAQ: BILI), and Signet Jewelers (NYSE: SIG) will be on tap. Additionally, Nio (NYSE: NIO), a leading electric vehicle (EV) firm will also be reporting its latest figures during that time. As lockdowns in China continue to ease, names such as Nio could be worth noting in the market now. Alternatively, after the closing bell, there are several other firms to look out for as well. Namely, Vail Resorts (NYSE: MTN), Stitch Fix (NASDAQ: SFIX), and Rent The Runway (NASDAQ: RENT) are among said firms. Between ever-present economic concerns, earnings, and companies making moves, investors have plenty to consider in thestock market 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 Advances Fintech Strategy With In-House Lending Solutions Making headlines yet again today would be consumer tech giant Apple (NASDAQ: AAPL). As such, investors would likely continue to tune in to AAPL stock now. Overall, as inflation and interest rate expectations remain persistent concerns for investors, economic data releases would be among the market movers to consider. | Apple Advances Fintech Strategy With In-House Lending Solutions Making headlines yet again today would be consumer tech giant Apple (NASDAQ: AAPL). As such, investors would likely continue to tune in to AAPL stock now. 5 Chinese Stocks For Your Watchlist Palantir Brings On NHS Officials In Efforts To Secure $450 Million U.K. Health Management Contract In other news, Palantir (NYSE: PLTR) appears to be hard at work expanding its operations. | Apple Advances Fintech Strategy With In-House Lending Solutions Making headlines yet again today would be consumer tech giant Apple (NASDAQ: AAPL). As such, investors would likely continue to tune in to AAPL stock now. 5 Chinese Stocks For Your Watchlist Palantir Brings On NHS Officials In Efforts To Secure $450 Million U.K. Health Management Contract In other news, Palantir (NYSE: PLTR) appears to be hard at work expanding its operations. | Apple Advances Fintech Strategy With In-House Lending Solutions Making headlines yet again today would be consumer tech giant Apple (NASDAQ: AAPL). As such, investors would likely continue to tune in to AAPL stock now. In general, this could be the case seeing as it is set to report its latest quarterly earnings after the closing bell. | null |
552 | 20,816 | 2022-06-08 00:00:00 UTC | These 2 Meme Stocks Have Legitimate Long-Term Upsides | AAPL | https://www.nasdaq.com/articles/these-2-meme-stocks-have-legitimate-long-term-upsides | null | null | Meme stocks like AMC Entertainment and GameStop tend to trade more on social media mentions than on the fundamentals of their businesses.
Yet not all such investments fall entirely into that category. With some meme stocks, the companies' underlying operations still have significant bearings on their valuations, but for varying reasons, their popularity has caused their prices to soar out of proportion to their businesses. That appears to be the case with Tesla, Nvidia, and Twitter, which are among the most-discussed stocks on WallStreetBets, the subreddit that really got the ball rolling on meme stocks.
But allow me to point you toward a pair of companies that meme stock traders love to discuss, that actually have solid long-term growth potential.
Image source: Getty Images.
Apple
Yes, mighty Apple (NASDAQ: AAPL) finds itself included among the ranks of the meme stocks even though the breadth of its business, its $2.4 trillion valuation, and the high level of institutional ownership of its shares (they hold almost 60% of the stock) would argue against it. Yet retail traders love to chat up the company.
No doubt part of the reason is that it's both widely held and (like many tech stocks) down sharply in 2022 -- almost 18% year to date. The European Union continues to set its sights on Apple, accusing it of restricting access to mobile wallets other than Apple Pay. The EU countries also just agreed to require a single standardized mobile charging port for all digital devices sold there beginning in 2024. That means Apple will have to build devices for that massive market that don't use its proprietary Lightning port.
Europe has long been a more intensively regulated market for tech companies, but Apple is still growing strongly there. It recently updated its Macbook Air, added a "buy now, pay later" feature to Apple Pay, and announced the launch of its new M2 chip. It also added new features to iOS to allow users to edit or cancel texts sent through iMessage, and later this year will be releasing the iPhone 14.
Of course, Apple's future is less about tech products and more about tech services, like Apple Pay, various digital content and cloud options, and advertising. The company will focus more on its advertising service in an effort to help smooth out the boom-and-bust sales cycles that are linked to devices' product upgrade schedules.
Service revenue reached a record of $19.8 billion in Apple's second quarter and now accounts for over 20% of the total revenue pie. Trading at 22 times next year's expected earnings, Apple is a reasonably priced stock for your portfolio.
Image source: Oculus.
Meta Platforms
Though it has "only" a near-$500 billion market cap, the ownership of Meta Platforms (NASDAQ: FB) is even more broadly concentrated in the hands of institutional investors than Apple's is -- they hold more than 76% of its shares outstanding.
Yet with shares down 42% in 2022, the social media giant just might be too good a bargain to pass up. While there are concerns that its growth is slowing, or that it might even be shrinking, between Facebook, Instagram, and WhatsApp, Meta has some 3.6 billion daily active users across its platforms. That massive pool of individuals far outstrips every rival service.
For me, Meta's big bet on the metaverse is a less reliable indicator of the company's potential because I'm not convinced people will want to regularly interact using avatars in virtual reality spaces, though companies are investing vast sums of money on the theory that they will. I'd have rather seen Meta use the money it's spending on the metaverse to get its social media platforms back on track. Facebook did return to user growth last quarter and beat analysts' expectations, so the company hasn't forgotten about the social media space yet.
Trading at just 14 times next year's earnings estimates, less than twice its projected long-term earnings growth rate, and 13 times the free cash flow Meta produces, the stock is deeply discounted. That's a mispricing that both meme stock investors and more traditional investors should exploit.
Find out why Apple is one of the 10 best stocks to buy now
Our award-winning analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
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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. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Meta Platforms, Inc., Nvidia, and Twitter. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Yes, mighty Apple (NASDAQ: AAPL) finds itself included among the ranks of the meme stocks even though the breadth of its business, its $2.4 trillion valuation, and the high level of institutional ownership of its shares (they hold almost 60% of the stock) would argue against it. With some meme stocks, the companies' underlying operations still have significant bearings on their valuations, but for varying reasons, their popularity has caused their prices to soar out of proportion to their businesses. The company will focus more on its advertising service in an effort to help smooth out the boom-and-bust sales cycles that are linked to devices' product upgrade schedules. | Apple Yes, mighty Apple (NASDAQ: AAPL) finds itself included among the ranks of the meme stocks even though the breadth of its business, its $2.4 trillion valuation, and the high level of institutional ownership of its shares (they hold almost 60% of the stock) would argue against it. Trading at 22 times next year's expected earnings, Apple is a reasonably priced stock for your portfolio. Facebook did return to user growth last quarter and beat analysts' expectations, so the company hasn't forgotten about the social media space yet. | Apple Yes, mighty Apple (NASDAQ: AAPL) finds itself included among the ranks of the meme stocks even though the breadth of its business, its $2.4 trillion valuation, and the high level of institutional ownership of its shares (they hold almost 60% of the stock) would argue against it. Of course, Apple's future is less about tech products and more about tech services, like Apple Pay, various digital content and cloud options, and advertising. Meta Platforms Though it has "only" a near-$500 billion market cap, the ownership of Meta Platforms (NASDAQ: FB) is even more broadly concentrated in the hands of institutional investors than Apple's is -- they hold more than 76% of its shares outstanding. | Apple Yes, mighty Apple (NASDAQ: AAPL) finds itself included among the ranks of the meme stocks even though the breadth of its business, its $2.4 trillion valuation, and the high level of institutional ownership of its shares (they hold almost 60% of the stock) would argue against it. Of course, Apple's future is less about tech products and more about tech services, like Apple Pay, various digital content and cloud options, and advertising. Facebook did return to user growth last quarter and beat analysts' expectations, so the company hasn't forgotten about the social media space yet. | null |
553 | 20,833 | 2022-06-07 00:00:00 UTC | US STOCKS-Wall St gains with tech, energy; Target's margin warning a negative | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-st-gains-with-tech-energy-targets-margin-warning-a-negative | null | null | By Caroline Valetkevitch
NEW YORK, June 7 (Reuters) - U.S. stocks rose in afternoon trading on Tuesday along with gains in Apple and other technology shares, while Target Corp's disappointing margin forecast weighed on retail shares.
Energy shares .SPNY also climbed with higher oil prices.
Apple Inc AAPL.O shares were up 1.8%. The gains came despite news earlier in the day that the company must change the connector on iPhones sold in Europe by 2024 after EU countries and lawmakers agreed to a single charging port for mobile phones, tablets and cameras. The S&P 500 technology index .SPLRCT was up 1%.
At the same time, shares of Target Corp TGT.N were down 3.7% after the retailer said it would have to offer deeper discounts and cut back on stocking discretionary items.
Trading was choppy, but indexes have been recovering from recent steep losses. The S&P 500 remains down about 13% for the year so far.
Recently, "we've had a nice bounce ... and in general investors are feeling better right now. But we are very much in a seesaw market as we've seen all year," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.
"At some point, we will put in a bottom, and the market will move higher. We have a hard time believing that's any time soon, given a number of fundamental issues overhanging the market," he said. "Certainly what we've seen today from Target isn't good news in terms of the consumer."
The Dow Jones Industrial Average .DJI rose 168.31 points, or 0.51%, to 33,084.09, the S&P 500 .SPX gained 26.99 points, or 0.65%, to 4,148.42 and the Nasdaq Composite .IXIC added 84.61 points, or 0.7%, to 12,145.98.
Walmart Inc WMT.N shares were down 1.7%, while the S&P retail index .SPXRT was also down 1.7%.
Some market-watchers have also noted that while clearing inventories would be negative for these companies in the near term, it could eventually help to dampen inflation.
The U.S. consumer price index report due on Friday is expected to show inflation remained elevated in May, though core consumer prices, which exclude the volatile food and energy sectors, likely ticked down on an annual basis.
Among the day's gainers, Kohl's Corp KSS.N shares were up 9% after news the department store chain entered exclusive talks with retail store operator Franchise Group Inc FRG.O over a potential sale that would value it at nearly $8 billion.
Advancing issues outnumbered declining ones on the NYSE by a 1.77-to-1 ratio; on Nasdaq, a 1.55-to-1 ratio favored advancers.
The S&P 500 posted 3 new 52-week highs and 30 new lows; the Nasdaq Composite recorded 30 new highs and 115 new lows.
(Reporting by Caroline Valetkevitch in New York Additional reporting by Devik Jain, Susan Mathew, Mehnaz Yasmin in Bengaluru and Sinead Carew in New York Editing by Maju Samuel and Matthew Lewis)
((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. | Apple Inc AAPL.O shares were up 1.8%. The gains came despite news earlier in the day that the company must change the connector on iPhones sold in Europe by 2024 after EU countries and lawmakers agreed to a single charging port for mobile phones, tablets and cameras. At the same time, shares of Target Corp TGT.N were down 3.7% after the retailer said it would have to offer deeper discounts and cut back on stocking discretionary items. | Apple Inc AAPL.O shares were up 1.8%. By Caroline Valetkevitch NEW YORK, June 7 (Reuters) - U.S. stocks rose in afternoon trading on Tuesday along with gains in Apple and other technology shares, while Target Corp's disappointing margin forecast weighed on retail shares. At the same time, shares of Target Corp TGT.N were down 3.7% after the retailer said it would have to offer deeper discounts and cut back on stocking discretionary items. | Apple Inc AAPL.O shares were up 1.8%. By Caroline Valetkevitch NEW YORK, June 7 (Reuters) - U.S. stocks rose in afternoon trading on Tuesday along with gains in Apple and other technology shares, while Target Corp's disappointing margin forecast weighed on retail shares. The U.S. consumer price index report due on Friday is expected to show inflation remained elevated in May, though core consumer prices, which exclude the volatile food and energy sectors, likely ticked down on an annual basis. | Apple Inc AAPL.O shares were up 1.8%. By Caroline Valetkevitch NEW YORK, June 7 (Reuters) - U.S. stocks rose in afternoon trading on Tuesday along with gains in Apple and other technology shares, while Target Corp's disappointing margin forecast weighed on retail shares. Walmart Inc WMT.N shares were down 1.7%, while the S&P retail index .SPXRT was also down 1.7%. | null |
554 | 20,869 | 2022-06-06 00:00:00 UTC | Don’t Fear Recession, Prepare Instead | AAPL | https://www.nasdaq.com/articles/dont-fear-recession-prepare-instead | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Permabear Jeremey Grantham has been in the news recently. In a CNBC interview, he predicted that U.S. stocks would plunge and the U.S. economy will tumble into a recession.
It’s important to note that Grantham is a bond manager and has been touting this line of commentary for some time. The fact is when interest rates rise, the bond market gets obliterated. Grantham has a vested interest to scare investors out of stocks, so they can flee to the bond market and provide Jeremey with some temporary relief.
I have noticed that Grantham never talks about the underlying earnings associated with stocks and, in my opinion, he has virtually no credibility. He has a conflict of interest and is always bashing stocks. So, I encourage you to ignore permabears like Grantham, unless they are willing to discuss earnings and the underlying fundamentals associated with the stock market.
That said, it has been an overwhelmingly scary time for investors. The up-and-down action we’ve seen this year has been enough to make anyone’s stomach churn.
The worst might be over, but I do expect the S&P 500 to continue to oscillate after hitting a new low and bouncing back on improving trading volume.
At Breakthrough Stocks, we’ve focused our strategy on fundamentally sound stocks that can weather the storm.
In today’s Market 360, we’ll take a look at the chances of recession and provide you with the best place to park your investments to prepare…
Is A Recession Coming?
That is the question. And one that no one can answer with 100% certainty.
A recession is defined as a period of temporary economic decline where trade and industrial activity are reduced. We generally identify a recession by a decline in GDP for two successive quarters.
My favorite economist, Ed Yardeni, is now estimating that the chance of a recession is 40%.
Specifically, Yardeni cited that:
Investors are in a foul mood
Consumer sentiment has dropped sharply
Regional business surveys are depressed
Consumers are losing purchasing power
And there is a chance of a credit crunch
After pointing out these five factors increasing the odds of a recession, Yardeni commented in his Wednesday briefing that analysts are still revising their 2022 and 2033 earnings estimated higher and there is aggressive insider buying, which bodes well for a stock market recovery.
The fact is the Commerce Department recently revised its first-quarter GDP growth estimate slightly to an annual decline of 1.5%, compared to its preliminary estimate of a 1.4% decline. The decline is due to a productivity drop as well as a record trade deficit. Fortunately, the Commerce Department also reported that consumer spending rose 0.9% in April, so as long as consumers are spending, the U.S. should be able to skirt a recession, since approximately 70% of GDP growth is tied to the U.S. consumer.
That said, decades-high inflation is still running wild. Even if we skirt a recession in the near term, I still believe that we’ll have to deal with continued market volatility as we head into the summer months.
So where should we put our money?
Your Recession Protection Plan
Our quality, fundamentally superior Breakthrough Stocks have thoroughly demonstrated that good stocks “bounce,” especially in the wake of their first-quarter announcements.
Furthermore, many of our Breakthrough Stocks are now benefitting from institutional buying pressure, i.e., i.e., money flow as the money fleeing FAANG stocks – Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX) and Google (NASDAQ:GOOGL, NASDAQ:GOOG) – looks for new places to invest.
What makes Breakthrough Stocks different? Persistent money flow.
Last week during my Great American Wealth Shift event, I detailed exactly what goes into my money flow system.
Simply put, we follow where the money is “flowing”… and right now that is in companies that are profiting from high inflation. I should add that smaller domestic stocks also have a big edge over multi-national stocks, especially now that the FAANG bubble has been “pricked.” So, it’s no surprise that my average Breakthrough Stock has 44.7% average annual forecasted sales growth and 151.7% average annual forecasted earnings growth.
Furthermore, in the past month, the analyst community has revised their average consensus earnings estimate 16.5% higher, so I am expecting another round of earnings surprises when the next earnings announcement season commences in July. We just finished a strong earnings announcement season and I am proud that my Breakthrough Stocks posted a strong average gain in the past month.
Today, I am recommending a tantalizing new stock that’s set to explode, and I will be releasing four exciting more buys in tomorrow’s Breakthrough Stocks Monthly Issue for June. Three of these new stocks are profiting from higher commodity inflation and all are profiting from an increase in money flow, so I look for them to climb higher in the coming weeks and months.
Join me at Breakthrough Stocks today so you can read the issue the moment it comes out and act on my buy advice right away.
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The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
Facebook (FB), Amazon (AMZN), Google (GOOG)
The post Don’t Fear Recession, Prepare Instead 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. | Furthermore, many of our Breakthrough Stocks are now benefitting from institutional buying pressure, i.e., i.e., money flow as the money fleeing FAANG stocks – Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX) and Google (NASDAQ:GOOGL, NASDAQ:GOOG) – looks for new places to invest. Grantham has a vested interest to scare investors out of stocks, so they can flee to the bond market and provide Jeremey with some temporary relief. Specifically, Yardeni cited that: Investors are in a foul mood Consumer sentiment has dropped sharply Regional business surveys are depressed Consumers are losing purchasing power And there is a chance of a credit crunch After pointing out these five factors increasing the odds of a recession, Yardeni commented in his Wednesday briefing that analysts are still revising their 2022 and 2033 earnings estimated higher and there is aggressive insider buying, which bodes well for a stock market recovery. | Furthermore, many of our Breakthrough Stocks are now benefitting from institutional buying pressure, i.e., i.e., money flow as the money fleeing FAANG stocks – Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX) and Google (NASDAQ:GOOGL, NASDAQ:GOOG) – looks for new places to invest. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Permabear Jeremey Grantham has been in the news recently. I should add that smaller domestic stocks also have a big edge over multi-national stocks, especially now that the FAANG bubble has been “pricked.” So, it’s no surprise that my average Breakthrough Stock has 44.7% average annual forecasted sales growth and 151.7% average annual forecasted earnings growth. | Furthermore, many of our Breakthrough Stocks are now benefitting from institutional buying pressure, i.e., i.e., money flow as the money fleeing FAANG stocks – Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX) and Google (NASDAQ:GOOGL, NASDAQ:GOOG) – looks for new places to invest. Specifically, Yardeni cited that: Investors are in a foul mood Consumer sentiment has dropped sharply Regional business surveys are depressed Consumers are losing purchasing power And there is a chance of a credit crunch After pointing out these five factors increasing the odds of a recession, Yardeni commented in his Wednesday briefing that analysts are still revising their 2022 and 2033 earnings estimated higher and there is aggressive insider buying, which bodes well for a stock market recovery. I should add that smaller domestic stocks also have a big edge over multi-national stocks, especially now that the FAANG bubble has been “pricked.” So, it’s no surprise that my average Breakthrough Stock has 44.7% average annual forecasted sales growth and 151.7% average annual forecasted earnings growth. | Furthermore, many of our Breakthrough Stocks are now benefitting from institutional buying pressure, i.e., i.e., money flow as the money fleeing FAANG stocks – Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX) and Google (NASDAQ:GOOGL, NASDAQ:GOOG) – looks for new places to invest. Grantham has a vested interest to scare investors out of stocks, so they can flee to the bond market and provide Jeremey with some temporary relief. The fact is the Commerce Department recently revised its first-quarter GDP growth estimate slightly to an annual decline of 1.5%, compared to its preliminary estimate of a 1.4% decline. | null |
555 | 20,873 | 2022-06-05 00:00:00 UTC | If I Could Buy Only 1 Warren Buffett Stock, This Would Be It | AAPL | https://www.nasdaq.com/articles/if-i-could-buy-only-1-warren-buffett-stock-this-would-be-it | null | null | Don't underestimate the power of Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) 13F-HR filing to the U.S. Securities and Exchange Commission (SEC). The SEC requires the company to disclose all of the stocks that it owns on a quarterly basis.
In a real sense, Berkshire's 13F-HR provides a peek into what Warren Buffett is thinking. The filing shows which stocks the Oracle of Omaha especially likes. Considering that Buffett ranks as one of the greatest investors of all time, that could be really useful information for investors who aren't legends.
Which stock in Berkshire's portfolio (excluding Berkshire Hathaway itself) is the best pick for ordinary investors right now? Different people will likely have different answers. However, if I could buy only one Buffett stock, though, this would be it.
Image source: Getty Images.
Honorable mentions
Before I get to my favorite Buffett stock, though, allow me to first acknowledge several honorable mentions. Berkshire's portfolio includes quite a few really great stocks to own.
Apple (NASDAQ: AAPL) ranks as the biggest holding for Berkshire. It also happens to be the biggest position in my own portfolio -- primarily because I've owned it for a long time and it's performed very well. I continue to view Apple as an excellent pick.
My take is that Amazon.com (NASDAQ: AMZN) also stands out as a top stock to buy right now. This technically wasn't a Buffett pick, since one of Berkshire's two investment managers made the call to buy Amazon a few years ago. Regardless, Amazon appears to be a bargain. It's one of the stocks in my portfolio that I'd seriously consider adding to my position.
Buffett is betting big-time on Chevron (NYSE: CVX) these days. Although I don't personally own the stock, I think that the oil and gas giant should continue to deliver solid returns thanks to highly favorable market dynamics.
I also own shares of two other Berkshire holdings -- Bank of America (NYSE: BAC) and Mastercard (NYSE: MA). My prediction is that both stocks will perform well over the long term.
Why I especially like one Buffett stock
While I think highly of all of the aforementioned stocks, there's another Buffett stock that I especially like. And it's a recent addition to Berkshire's portfolio -- Markel (NYSE: MKL).
Buying Markel is arguably the next best thing to buying Berkshire itself. In fact, Markel is sometimes referred to as a "baby Berkshire." There are a couple of key similarities between the two companies.
For one thing, both are in the insurance business. While Berkshire has GEICO, General Re, and a handful of other businesses that mainly focus on the standard insurance market, Markel offers specialty insurance and reinsurance. It provides coverage to customers who usually can't obtain standard insurance.
But it's the second common denominator between Markel and Berkshire that puts the stock in my top spot. Both companies use the cash generated by their insurance businesses to work by investing in other publicly traded companies. In a way, buying shares of Markel or Berkshire is almost like investing in an exchange-traded fund (ETF) that owns lots of stocks.
Diversification is very important to me. As much as I like Apple, Amazon, and the other stocks mentioned earlier, they don't offer the diversification that Markel does. Actually, buying shares of Markel provides a way to also invest in Apple, Amazon, Mastercard, Berkshire itself, and lots of other great stocks because they're all in Markel's portfolio.
Not perfect
Markel isn't a perfect stock. Its performance lags well behind all of the previously mentioned stocks and the S&P 500 over the past five years.
Some investors might also shy away from Markel's price. Shares currently trade at nearly $1,400. Markel has never conducted a stock split to make its share price more affordable for retail investors.
However, Markel is faring quite well so far in 2022. It's trouncing the S&P as well as all of the other stocks I've mentioned except Chevron.
Markel is also valued attractively with a forward earnings multiple below 18. That's especially appealing considering the company's strong growth prospects. If I could only buy one Buffett stock, the combination of the valuation and diversification that Markel offers makes this stock close enough to perfect for me.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights has positions in Amazon, Apple, Bank of America, Berkshire Hathaway (B shares), and Mastercard. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), Markel, and Mastercard. The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) ranks as the biggest holding for Berkshire. This technically wasn't a Buffett pick, since one of Berkshire's two investment managers made the call to buy Amazon a few years ago. Although I don't personally own the stock, I think that the oil and gas giant should continue to deliver solid returns thanks to highly favorable market dynamics. | Apple (NASDAQ: AAPL) ranks as the biggest holding for Berkshire. Keith Speights has positions in Amazon, Apple, Bank of America, Berkshire Hathaway (B shares), and Mastercard. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway (B shares), Markel, and Mastercard. | Apple (NASDAQ: AAPL) ranks as the biggest holding for Berkshire. Why I especially like one Buffett stock While I think highly of all of the aforementioned stocks, there's another Buffett stock that I especially like. Actually, buying shares of Markel provides a way to also invest in Apple, Amazon, Mastercard, Berkshire itself, and lots of other great stocks because they're all in Markel's portfolio. | Apple (NASDAQ: AAPL) ranks as the biggest holding for Berkshire. As much as I like Apple, Amazon, and the other stocks mentioned earlier, they don't offer the diversification that Markel does. Actually, buying shares of Markel provides a way to also invest in Apple, Amazon, Mastercard, Berkshire itself, and lots of other great stocks because they're all in Markel's portfolio. | 4 |
556 | 20,876 | 2022-06-04 00:00:00 UTC | How Advertising's Massive Shift Affects Facebook, Snapchat, and Twitter | AAPL | https://www.nasdaq.com/articles/how-advertisings-massive-shift-affects-facebook-snapchat-and-twitter | null | null | The digital advertising landscape changed dramatically in the last year. In this video clip from "The Virtual Opportunities Show" on Motley Fool Live, recorded on May 24, Fool.com contributors Demitri Kalogeropoulos and Travis Hoium discuss some of the interesting ad trends in today's digital market and how they're affecting some major companies.
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Demitri Kalogeropoulos: "Roku (NASDAQ: ROKU) took a massive hit," Fourth Horseman says, "Today is there really as big a danger to their advertising revenue as there is in the social media advertisers like Snap (NYSE: SNAP)?" Travis, what do you think about that?
Travis Hoium: I think taking a step back and thinking about what's going on in advertising is really important right now. I heard an interview with Eric Seufert, who has been in the advertising space for a really long time, working with buyers so the companies that are placing ads on Snapchat and Facebook [a part of Meta Platforms (NASDAQ: FB)] and things like that.
I think the way to think about it is there's two kinds of advertising in today's digital market. There's direct response advertising. This is where you put an ad up and you want somebody to take a direct action. You want them to go buy a shirt or download an app or something like that. You want to measure how many times did I show this ad? How many times did somebody click on it? Who was I showing it to?
This is what Facebook did really well for a really long time. The app tracking transparency changes that Apple (NASDAQ: AAPL) implemented last year really broke some of the ties there because it broke what ads you're showing, who you are showing it to. But they don't allow you to track somebody across the internet anymore. Shopify (NYSE: SHOP) is being impacted by this.
It starts with a company like Snap or Facebook or even Google [a part of Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL)]. But then once you go to Shopify's site or Unity (NYSE: U), would be another example. They can't track you going into Shopify and seeing you clicked on the advert, did you actually buy the shirt or not? That's what broke in the system.
The other advertising is brand advertising. This is the Coca-Cola (NYSE: KO), the just awareness ads that are going on. This is typically what we see in TV, is brand advertising because you're not typically making a direct purchase from something that you see in an ad on TV.
This is the dynamic that we have to think about in the digital ad space right now. Facebook has been talking about this for a while because I think they are probably the most advanced in understanding how their advertising market works. They are also very heavily impacted by the direct-response business, specifically on something like Instagram, you're shown a retail ad and they want you to make a purchase right now.
Snap, on the other hand, is primarily brand advertising. What we've seen over the last few months is in this interview that I listened to with Eric Seufert was really interesting because it goes through the internal dynamics that happened at companies like Facebook and Snap and how there's basically a delay between ATT comes out in, I think it was about a year ago now.
It takes a little while to get onto people's phones. People have to opt-in then they have to say no, don't track me, when they update their Facebook app or their Snapchat app. Then there's another delay because these algorithms are judging what your actions are and trying to predict things based on a 30-day and 90-day rolling basis.
The algorithm then doesn't break until let's say fall. This data and info that you had in April, something broke in the process. But you didn't really see the full impact on that until fall. Well, what happens in fall? In the fall, the brand advertising picks up because it's holiday season. Now, retailers and all companies that I want you to go buy presents for the holidays they start ramping up their spending.
Then you basically have some of the direct-to-consumer spending fall out of the market, but it immediately gets replaced by brand spending. You don't see the real impact of ATT changes really until first quarter of 2022. I think that's what we're seeing right now, is the fallout of a lot of these changes that took place almost a year ago at this point and companies not really understanding.
I want to be fair to say that the impacts that we're seeing are not companies saying, hey, our revenue was a billion dollars and now it's going to be $500 million. It's more like we thought we were going to grow 20%, but we're only going to grow 10%. There is still a lot of advertising going on, but the granular data is not there to do direct response advertising in the way that it was a year ago because of the ATT changes.
Now layer on top of that, you have companies pulling back spending because there's potentially a recession already happening right now. I think that's what we're seeing from Snap's numbers is they probably saw, if we're reading between the lines a little bit, a lot of their brand partners go, hey, we're going to cut back on our spending, and it started happening maybe a month ago or maybe two months ago.
It wasn't like they projected this in December. It was really over the last few months that companies just started to tighten a little bit. Where can they cut? Well, they can cut back on their ad spending a little bit. That's the dynamic that I think it's important to tease out because a lot of companies are saying their growth rates are going to slow down or are there seeing pressure in ad spending.
But understanding what exactly that means and what kind of ads they were serving and what markets they were in. I think it was interesting. They dove into Unity specifically, and how Unity was in almost a worse position than most other companies because they relied on data from the App Store to feed into what people are doing in apps, what sort of in-app purchases they're making. There are ways that they'll be able to adjust to that in the future. But short-term, there is a lot of headwinds.
A lot of dynamics that I think it's important to understand what's going on underneath the surface and how some of these changes that Apple made a year ago, Google's making them now. The advertising market is going to change over time and we're just starting to see the impact of that.
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. Demitri Kalogeropoulos has positions in Apple, Meta Platforms, Inc., and Shopify. Travis Hoium has positions in Apple, Shopify, Snap Inc., and Unity Software Inc. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Meta Platforms, Inc., Roku, Shopify, and Unity Software Inc. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify, long March 2023 $120 calls on Apple, short January 2023 $1,160 calls on Shopify, and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The app tracking transparency changes that Apple (NASDAQ: AAPL) implemented last year really broke some of the ties there because it broke what ads you're showing, who you are showing it to. In this video clip from "The Virtual Opportunities Show" on Motley Fool Live, recorded on May 24, Fool.com contributors Demitri Kalogeropoulos and Travis Hoium discuss some of the interesting ad trends in today's digital market and how they're affecting some major companies. I heard an interview with Eric Seufert, who has been in the advertising space for a really long time, working with buyers so the companies that are placing ads on Snapchat and Facebook [a part of Meta Platforms (NASDAQ: FB)] and things like that. | The app tracking transparency changes that Apple (NASDAQ: AAPL) implemented last year really broke some of the ties there because it broke what ads you're showing, who you are showing it to. See the 10 stocks Stock Advisor returns as of 2/14/21 Demitri Kalogeropoulos: "Roku (NASDAQ: ROKU) took a massive hit," Fourth Horseman says, "Today is there really as big a danger to their advertising revenue as there is in the social media advertisers like Snap (NYSE: SNAP)?" The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), Apple, Meta Platforms, Inc., Roku, Shopify, and Unity Software Inc. | The app tracking transparency changes that Apple (NASDAQ: AAPL) implemented last year really broke some of the ties there because it broke what ads you're showing, who you are showing it to. In this video clip from "The Virtual Opportunities Show" on Motley Fool Live, recorded on May 24, Fool.com contributors Demitri Kalogeropoulos and Travis Hoium discuss some of the interesting ad trends in today's digital market and how they're affecting some major companies. See the 10 stocks Stock Advisor returns as of 2/14/21 Demitri Kalogeropoulos: "Roku (NASDAQ: ROKU) took a massive hit," Fourth Horseman says, "Today is there really as big a danger to their advertising revenue as there is in the social media advertisers like Snap (NYSE: SNAP)?" | The app tracking transparency changes that Apple (NASDAQ: AAPL) implemented last year really broke some of the ties there because it broke what ads you're showing, who you are showing it to. In this video clip from "The Virtual Opportunities Show" on Motley Fool Live, recorded on May 24, Fool.com contributors Demitri Kalogeropoulos and Travis Hoium discuss some of the interesting ad trends in today's digital market and how they're affecting some major companies. There is still a lot of advertising going on, but the granular data is not there to do direct response advertising in the way that it was a year ago because of the ATT changes. | 3 |
557 | 20,889 | 2022-06-03 00:00:00 UTC | Consider Alphabet Stock Even in a Recession | AAPL | https://www.nasdaq.com/articles/consider-alphabet-stock-even-in-a-recession | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
After six straight red weeks, the bulls may rejoice with two consecutive green days. This is where the fear of missing out kicks in for most investors and they blindly jump back in. Today, we will contemplate the prospects of doing so with Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL) stock. But first, we should discuss the bigger picture of the market.
The macroeconomic conditions are great. You won’t hear experts say this, but it is true. In fact, there was such a surplus of cash that it created a hotbed for inflation. This is why the Federal Reserve (Fed), who contributed heavily to inflation, launched the quantitative tightening (QT). The reason why experts are now calling for disaster is the rhetoric from the Fed. Judging by their statements, they are out to control inflation even at the threat of destroying the economy.
In reality, GOOG stock will survive a few rate hikes. But investors will be shy about risking money if they think a big recession is coming. The anticipation will actually do damage, even if the company prospects are still strong.
Ticker Company Price
GOOG Alphabet Inc. $2,202.40
GOOG Stock Recession Is Due to Extrinsic Reasons
The current state of GOOG stock is less than ideal. Even after a 15% rally, it is still 22% below its February highs. These are conditions that Wall Street deems as recessionary. Yet, their financial statements do not yet reflect evidence of the current blight. This suggests that what’s ailing it now is investor perception that things will worsen.
7 Overlooked Value Stocks to Buy Before Wall Street Catches On
I don’t blame retail investors for feeling this anxiety. This week, even market experts like Jamie Dimon are panicking from the QT program. These are the pragmatic experts that us mere mortals look to for guidance. If they are panicking, then it is understandable that investors may stop buying.
To overcome this potential source of worry, I resort to simple logic and a bit of homework. First, I cannot see any hint of trouble in Alphabet’s financials. Revenues are still growing at a healthy clip. Its net income doubled since 2019, after doubling back then, as well. Last year, it generated more than $90 billion in cash from operations.
The astonishing part is that they did this while maintaining the proposition of value. The price-to-earnings (P/E) ratio now is only 20, which is its lowest P/E ratio in at least seven years. Therefore even if we suffer another dip, the value will lend support and make it shallow. Current investors of GOOG stock have realistic expectations. They might throw a small fit here and there, but overall, they should be solid.
Bottom Line on GOOG Stock
So far, I sound like someone who is ready to load up on GOOG stock. However, I must acknowledge the extrinsic factors we noted. There is also the matter of the war in Ukraine, which could deteriorate drastically. While I don’t expect much to worsen from that or on the Fed front, I respect the threats. As long as the CBOE Volatility Index is this high, we should expect anything.
If that’s the case, then taking full positions at once would be reckless. An easy way to mitigate new position risks is by portioning the orders. Spreading the entry point across time affords investors the opportunity to moderate their cost basis. Before you discount the technical clues that exist in the charts, consider the following notion.
Click to Enlarge
Source: Charts by TradingView
Last month, I wrote about this same opportunity when Alphabet was around this level. My chart today proves my point about having buyers with strong conviction. I have included picture of my chart from a month ago. In it, I identified where the support lies and it acted perfectly on cue.
Currently, GOOG stock is approaching $2,400 per share. That’s a zone that should present some resistance. It would be healthy for it to pull back to $2,260 to gather better momentum. Otherwise, the rally will become long in the tooth and vulnerable to more violent dips. Emerging from a strong base insures proper footing. I propose that investors who would buy the dip have more conviction. As a result, they would be harder to shake out on bad days.
On the date of publication, Nicolas Chahine 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.
The post Consider Alphabet Stock Even in a Recession 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. | This is why the Federal Reserve (Fed), who contributed heavily to inflation, launched the quantitative tightening (QT). 7 Overlooked Value Stocks to Buy Before Wall Street Catches On I don’t blame retail investors for feeling this anxiety. Spreading the entry point across time affords investors the opportunity to moderate their cost basis. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips After six straight red weeks, the bulls may rejoice with two consecutive green days. Today, we will contemplate the prospects of doing so with Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL) stock. Ticker Company Price GOOG Alphabet Inc. $2,202.40 GOOG Stock Recession Is Due to Extrinsic Reasons The current state of GOOG stock is less than ideal. | Ticker Company Price GOOG Alphabet Inc. $2,202.40 GOOG Stock Recession Is Due to Extrinsic Reasons The current state of GOOG stock is less than ideal. Current investors of GOOG stock have realistic expectations. Bottom Line on GOOG Stock So far, I sound like someone who is ready to load up on GOOG stock. | Ticker Company Price GOOG Alphabet Inc. $2,202.40 GOOG Stock Recession Is Due to Extrinsic Reasons The current state of GOOG stock is less than ideal. This week, even market experts like Jamie Dimon are panicking from the QT program. I have included picture of my chart from a month ago. | 3 |
558 | 58,965 | 2023-12-16 00:00:00 UTC | MicroVision (MVIS) Reaffirms Revenue Guidance for This Year | ADBE | https://www.nasdaq.com/articles/microvision-mvis-reaffirms-revenue-guidance-for-this-year | null | null | MicroVision MVIS recently reaffirmed its fiscal 2023 revenue expectations, aligning with the figures announced during the third-quarter 2023earnings call The company continues to expect full-year revenue to possibly be at the higher end of the previously guided range of $6.5-$8.0 million.
During the third quarter’searnings call MVIS disclosed its sales teams' engagement with multiple car and truck manufacturers to seek the ideal partner for implementing light detection and ranging (“LiDAR”)-based advanced safety systems in the company’s vehicles.
Their objective was to finalize this partnership in 2023, intending to start system production by 2027. However, in a recent statement, the company revealed a shift in the nomination timing to the first quarter of 2024.
Microvision, Inc. Price and Consensus
Microvision, Inc. price-consensus-chart | Microvision, Inc. Quote
Despite the shift in the timing of nominations, the company maintains confidence in its interactions with Original Equipment Manufacturers, observing substantial demand for sample orders prior to nominations. Detailed negotiations continue as they finalize the commercial terms for these significant partnerships, potentially impacting the market. The reaffirmation of the previously guided revenue expectations has not deterred MVIS’ focus on expanding revenues from non-automotive markets through direct sales.
In the third quarter’searnings call MicroVision announced that it is optimistic about generating profits on the realization of its Request for Quotes, adding to its non-recurring engineering revenues from OEMs for customizing sensors. The company expects another revenue stream created from selling LiDAR sensors as the demand increases in various places in Europe and Asia.
MVIS is also benefiting from its wide-ranging portfolio, including Laser Beam Scanning Technology, Projection and Display Solutions, recent ones including micro-display concepts for AR headsets, a 1440i MEMS module supporting AR headsets, an Interactive Display module for smart speakers and the MAVIN DR, a dynamic-range automotive lidar sensor.
MicroVision is also benefiting from acquisitions. In 2023, it acquired a part of Ibeo Automotive Systems GmbH, which holds automotive-grade qualifications. This acquisition positions the company with a significant advantage over its competitors in the market.
Zacks Rank and Stocks to Consider
MVIS currently carries a Zacks Rank #3 (Hold). Shares of the firm have climbed 14.5% year to date.
Some better-ranked stocks from the broader technology sector are Adobe ADBE, Datadog DDOG and Gitlab GTLB, each carrying Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Adobe's first-quarter 2024 earnings has been revised by 3 cents northward to $4.27 per share in the past seven days. For fiscal 2024, earnings estimates have moved upward by 19 cents to $18.05 per share in the past seven days.
ADBE’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.42%. Shares of ADBE have gained 73.7% year to date.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings moved northward by 9 cents to 43 cents in the past 60 days. For fiscal 2023, DDOG’s earnings estimates have been revised 2 cents upward to 1.53 cents per share in the past 30 days.
Datadog’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.61%. Shares of DDOG have climbed 66.8% year to date.
The Zacks Consensus Estimate for Gitlab’s fourth-quarter fiscal 2024 earnings has been revised upward by 9 cents to 8 cents per share in the past 30 days. For fiscal 2024, earnings estimates have been raised by 20 cents to 13 cents per share in the past 30 days.
Gitlab’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 317.62%. Shares of GTLB have surged 37.2% year to date.
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Adobe Inc. (ADBE) : 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. | Some better-ranked stocks from the broader technology sector are Adobe ADBE, Datadog DDOG and Gitlab GTLB, each carrying Zacks Rank #2 (Buy) at present. ADBE’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.42%. Shares of ADBE have gained 73.7% year to date. | Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report Microvision, Inc. (MVIS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report GitLab Inc. (GTLB) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader technology sector are Adobe ADBE, Datadog DDOG and Gitlab GTLB, each carrying Zacks Rank #2 (Buy) at present. ADBE’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.42%. | Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report Microvision, Inc. (MVIS) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report GitLab Inc. (GTLB) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader technology sector are Adobe ADBE, Datadog DDOG and Gitlab GTLB, each carrying Zacks Rank #2 (Buy) at present. ADBE’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.42%. | Some better-ranked stocks from the broader technology sector are Adobe ADBE, Datadog DDOG and Gitlab GTLB, each carrying Zacks Rank #2 (Buy) at present. ADBE’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.42%. Shares of ADBE have gained 73.7% year to date. | 3 |
559 | 58,967 | 2023-12-15 00:00:00 UTC | Guru Fundamental Report for ADBE | ADBE | https://www.nasdaq.com/articles/guru-fundamental-report-for-adbe-78 | null | null | Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE 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.
ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming 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 ADOBE INC
ADBE Guru Analysis
ADBE 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. | ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for ADOBE INC (ADBE). ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. | 4 |
560 | 58,969 | 2023-12-14 00:00:00 UTC | Better Cloud Stock: Adobe vs. Salesforce | ADBE | https://www.nasdaq.com/articles/better-cloud-stock%3A-adobe-vs.-salesforce | null | null | Adobe (NASDAQ: ADBE) and Salesforce (NYSE: CRM) are two of the world's largest cloud software companies. Adobe transformed its desktop-based media software into cloud-based services over the past decade, while Salesforce owns the world's leading cloud-based customer relationship management (CRM) platform. Both companies also provide additional sales, marketing, e-commerce, and analytics services.
Adobe and Salesforce both reached their all-time highs during the apex of the growth stock rally in November 2021. But both stocks have pulled back over the following two years as rising interest rates drove investors toward more conservative investments. Should you invest in either of these cloud giants before the market heats up again?
Image source: Getty Images.
Adobe faces slower growth and regulatory challenges
Adobe's revenue grew at a compound annual growth rate (CAGR) of 19% from fiscal 2017 to fiscal 2022 (which ended on Dec. 2, 2022). But in fiscal 2023, its revenue only rose 10%, and it expects just 10%-11% growth in fiscal 2024.
Adobe's Digital Media segment, which accounted for 73% of its revenue in fiscal 2023, is still growing at a steady rate as it locks media professionals into its sticky subscriptions. But its enterprise-facing Digital Experience segment, which accounted for 25% of its revenue, faced tougher macro headwinds over the past year. Currency headwinds also reduced its reported revenue growth by three percentage points for the full year.
Adobe's slower growth disappointed investors, who had expected its new generative AI tools -- which can be used to create AI images, photos, and 3D models, as well as accelerate other enterprise tasks -- to boost its near-term sales.
Adobe's operating margins are still rising and its adjusted EPS grew 17% in fiscal 2023, but it expects just 10%-12% growth in fiscal 2024. It also recently warned it could incur "significant monetary costs" to settle a Federal Trade Commission (FTC) probe into the cancellation policies for its subscriptions, and its $20 billion acquisition of Figma remains in limbo due to antitrust challenges. Adobe's EPS outlook for fiscal 2024 doesn't account for either of those unpredictable factors.
That combination of slowing growth and regulatory headwinds spooked the bulls, who had rushed back to Adobe amid the buying frenzy in AI stocks. Even after its post-earnings decline, it still doesn't look cheap at 33 times forward earnings.
Salesforce is prioritizing its profits over its sales growth
Salesforce's revenue rose at a CAGR of 26% from fiscal 2017 to fiscal 2022 (which ended on Jan. 31, 2022). But its revenue only increased 18% in fiscal 2023, and it expects just 11% growth in fiscal 2024.
Salesforce faces many of the same challenges as Adobe. The macro headwinds made it difficult to lock bigger customers into longer contracts, while the currency headwinds reduced its reported revenue by four percentage points in fiscal 2023.
Salesforce has also been expanding its AI ecosystem to analyze its customer data more efficiently and accelerate certain tasks. But those new services aren't moving the needle on their own yet -- and Salesforce still faces stiff competition from Microsoft, Oracle, and other tech giants in the CRM market.
Over the past year, the stabilizing growth of Salesforce's platform and other business (which houses Lightning and Slack) and the accelerating growth of its data cloud (which includes Mulesoft and Tableau) offset the slower growth of its sales cloud, service cloud, and marketing & commerce cloud businesses. But those three weaker businesses -- which together accounted for 65% of its revenue in the first nine months of fiscal 2024 -- could recover as the macro environment improves.
Activist investors besieged Salesforce throughout the first half of calendar 2023, but they backed off as it significantly boosted its operating margins and earnings by laying off 10% of its workforce and reining in its spending. Its adjusted EPS only rose 10% in fiscal 2023, but it expects an acceleration to 56% growth in fiscal 2024.
Salesforce's stock looks cheap at 29 times next year's earnings, but the bears warn that its prioritization of profitability over sales growth could narrow its competitive moat in the crowded cloud software market.
The better buy: Salesforce
I'm not a big fan of either stock right now because the flaws are easy to spot. But if I had to choose one over the other, I'd pick Salesforce. Its profit growth is accelerating, its stock is cheaper, and it doesn't face any regulatory challenges.
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Leo Sun has positions in Adobe. The Motley Fool has positions in and recommends Adobe, Microsoft, Oracle, and Salesforce. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe and short January 2024 $430 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adobe (NASDAQ: ADBE) and Salesforce (NYSE: CRM) are two of the world's largest cloud software companies. It also recently warned it could incur "significant monetary costs" to settle a Federal Trade Commission (FTC) probe into the cancellation policies for its subscriptions, and its $20 billion acquisition of Figma remains in limbo due to antitrust challenges. Activist investors besieged Salesforce throughout the first half of calendar 2023, but they backed off as it significantly boosted its operating margins and earnings by laying off 10% of its workforce and reining in its spending. | Adobe (NASDAQ: ADBE) and Salesforce (NYSE: CRM) are two of the world's largest cloud software companies. Adobe faces slower growth and regulatory challenges Adobe's revenue grew at a compound annual growth rate (CAGR) of 19% from fiscal 2017 to fiscal 2022 (which ended on Dec. 2, 2022). Salesforce is prioritizing its profits over its sales growth Salesforce's revenue rose at a CAGR of 26% from fiscal 2017 to fiscal 2022 (which ended on Jan. 31, 2022). | Adobe (NASDAQ: ADBE) and Salesforce (NYSE: CRM) are two of the world's largest cloud software companies. Adobe faces slower growth and regulatory challenges Adobe's revenue grew at a compound annual growth rate (CAGR) of 19% from fiscal 2017 to fiscal 2022 (which ended on Dec. 2, 2022). Over the past year, the stabilizing growth of Salesforce's platform and other business (which houses Lightning and Slack) and the accelerating growth of its data cloud (which includes Mulesoft and Tableau) offset the slower growth of its sales cloud, service cloud, and marketing & commerce cloud businesses. | Adobe (NASDAQ: ADBE) and Salesforce (NYSE: CRM) are two of the world's largest cloud software companies. Adobe's slower growth disappointed investors, who had expected its new generative AI tools -- which can be used to create AI images, photos, and 3D models, as well as accelerate other enterprise tasks -- to boost its near-term sales. Salesforce's stock looks cheap at 29 times next year's earnings, but the bears warn that its prioritization of profitability over sales growth could narrow its competitive moat in the crowded cloud software market. | 4 |
561 | 58,972 | 2023-12-13 00:00:00 UTC | Want to Be in the AI Millionaires Club? 3 Top Stocks You Need to Own Now | ADBE | https://www.nasdaq.com/articles/want-to-be-in-the-ai-millionaires-club-3-top-stocks-you-need-to-own-now | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Artificial intelligence (AI) has been the dominant trade in 2023, with no shortage of AI stocks to buy. Just about any stock linked to AI has risen over the last 12 months, from heavyweights such as Microsoft (NASDAQ:MSFT) to smaller start-ups such as C3.ai (NYSE:AI). While some analysts say AI is played out and fully priced into the market, don’t believe it.
As technology that is in its infancy and likely to continue dominating society for the foreseeable future, AI can be expected to be a stock market driver for many years. Most companies are only now beginning to monetize the technology. And Fortune Business Insights expects theglobal marketfor AI to quadruple to $2 trillion by 2030. Want to be in the AI millionaires club? Here are three top stocks you need to own now.
Adobe (ADBE)
Source: Tattoboo / Shutterstock
Admittedly, its guidance for the coming year wasn’t great, but software giant Adobe (NASDAQ:ADBE) remains a great bet on the future of AI. Investors can now buy ADBE stock a little cheaper, with the share price down 6% after the company issued a weak outlook for 2024. Lost in the concern over the guidance was that Adobe’s fiscal fourth quarter earnings beat Wall Street forecasts, with the company reporting earnings per share (EPS) of $4.27 compared to the $4.14 that was anticipated.
Revenue in the latest quarter totaled $5.05 billion versus $5.03 billion that analysts estimated. The company’s revenue grew 12% from a year ago while its net income increased 26% to $1.48 billion, or $3.23 per share. During the quarter, Adobe increased the costs of some of its software subscriptions, notably those that now include AI. In the most recent quarter, Adobe’s Firefly generative AI feature became available in the company’s Photoshop and Illustrator programs, and it is now monetizing AI.
ADBE stock has increased 74% in 2023.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
For a less obvious AI play, consider consumer electronics giant Apple (NASDAQ:AAPL). In early 2024, the company will release its Vision Pro mixed reality headset, Apple’s first entirely new product since the launch of the Apple Watch in 2014. There’s speculation that the Vision Pro headset could be Apple’s push into video games and that the company is eyeing AI-based gaming as a future endeavor. Apple CEO Tim Cook has said that the company is investing in AI and already makes its own microchips for its iPhones and MacBook computers.
While we wait for Apple to clarify its intentions for AI, it’s important to note that the stock is on a tear, recently closing at an all-time high on a split-adjusted basis. Apple’s share price has now risen 59% in 2023, putting the company’s market capitalization at $3.08 trillion, the biggest of any publicly traded company. Over the past year, Apple’s market value has grown by nearly $1 trillion. Analysts see continued catalysts for AAPL stock from renewed growth in its iPhone sales and the continued expansion of its services arm, which includes its streaming platform. Plus, new AI products.
Advanced Micro Devices (AMD)
Source: Pamela Marciano / Shutterstock.com
Now for more or a slam dunk when it comes to AI. That would be chipmaker Advanced Micro Devices (NASDAQ:AMD). The company’s share price has gained 20% since the start of December when the company introduced a new series of microchips called the “Ryzen 8040,” aimed at boosting AI applications by up to 60%. The new chips will be incorporated into laptops and personal computers (PCs) made by companies such as Dell Technologies (NYSE:DELL) starting in early 2024.
AMD also announced that its new MI300X accelerator microchip is now available for sale. That chip is used in data centers and directly competes with Nvidia’s (NASDAQ:NVDA) AI data center chips. While investors and analysts love the new AI chips, they are also responding to AMD executives who recently said that they expect the AI data center chip to generate $2 billion of revenue for all of 2024. AMD stock is up 120% in 2023 with continued momentum behind it.
On the date of publication, Joel Baglole held long positions in MSFT, AAPL and NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adobe (ADBE) Source: Tattoboo / Shutterstock Admittedly, its guidance for the coming year wasn’t great, but software giant Adobe (NASDAQ:ADBE) remains a great bet on the future of AI. Investors can now buy ADBE stock a little cheaper, with the share price down 6% after the company issued a weak outlook for 2024. ADBE stock has increased 74% in 2023. | Adobe (ADBE) Source: Tattoboo / Shutterstock Admittedly, its guidance for the coming year wasn’t great, but software giant Adobe (NASDAQ:ADBE) remains a great bet on the future of AI. Investors can now buy ADBE stock a little cheaper, with the share price down 6% after the company issued a weak outlook for 2024. ADBE stock has increased 74% in 2023. | Adobe (ADBE) Source: Tattoboo / Shutterstock Admittedly, its guidance for the coming year wasn’t great, but software giant Adobe (NASDAQ:ADBE) remains a great bet on the future of AI. Investors can now buy ADBE stock a little cheaper, with the share price down 6% after the company issued a weak outlook for 2024. ADBE stock has increased 74% in 2023. | ADBE stock has increased 74% in 2023. Adobe (ADBE) Source: Tattoboo / Shutterstock Admittedly, its guidance for the coming year wasn’t great, but software giant Adobe (NASDAQ:ADBE) remains a great bet on the future of AI. Investors can now buy ADBE stock a little cheaper, with the share price down 6% after the company issued a weak outlook for 2024. | null |
562 | 58,982 | 2023-12-12 00:00:00 UTC | US STOCKS-S&P 500 ends higher as investors bet on lower rates | ADBE | https://www.nasdaq.com/articles/us-stocks-sp-500-ends-higher-as-investors-bet-on-lower-rates | null | null | By Caroline Valetkevitch and Noel Randewich
NEW YORK, Dec 14 (Reuters) - The S&P 500 closed higher on Thursday on optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve.
Trading was mixed for much of the session, with Apple AAPL.O giving up gains after hitting an intraday record high.
Tesla TSLA.Oshares surged, with over $37 billion worth changing hands.
Sectors that have underperformed this year also rose, including energy and real estate.
Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement. They were last down at 3.94%.
"The market by any measure and any metric is overbought and has been overbought, and a consolidation or a pause has been expected, especially after yesterday's surge," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
"While the market celebrates lower rates, it can question why yields are below 4%" as investors weigh the economic outlook, she added.
AdobeADBE.O fell after the Photoshop maker forecast annual and quarterly revenue below estimates.
U.S. retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the Commerce Department reported on Thursday.
Fed rate cut expectations https://tmsnrt.rs/41oElWr
S&P 500's busiest trades https://tmsnrt.rs/3TvGPRf
(Additional reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai and Richard Chang)
((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. | AdobeADBE.O fell after the Photoshop maker forecast annual and quarterly revenue below estimates. By Caroline Valetkevitch and Noel Randewich NEW YORK, Dec 14 (Reuters) - The S&P 500 closed higher on Thursday on optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve. U.S. retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the Commerce Department reported on Thursday. | AdobeADBE.O fell after the Photoshop maker forecast annual and quarterly revenue below estimates. Sectors that have underperformed this year also rose, including energy and real estate. Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement. | AdobeADBE.O fell after the Photoshop maker forecast annual and quarterly revenue below estimates. By Caroline Valetkevitch and Noel Randewich NEW YORK, Dec 14 (Reuters) - The S&P 500 closed higher on Thursday on optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve. "The market by any measure and any metric is overbought and has been overbought, and a consolidation or a pause has been expected, especially after yesterday's surge," said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina. | AdobeADBE.O fell after the Photoshop maker forecast annual and quarterly revenue below estimates. By Caroline Valetkevitch and Noel Randewich NEW YORK, Dec 14 (Reuters) - The S&P 500 closed higher on Thursday on optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve. Trading was mixed for much of the session, with Apple AAPL.O giving up gains after hitting an intraday record high. | null |
563 | 59,003 | 2023-12-11 00:00:00 UTC | Adobe Q4 23 Earnings Conference Call At 5:00 PM ET | ADBE | https://www.nasdaq.com/articles/adobe-q4-23-earnings-conference-call-at-5%3A00-pm-et | null | null | (RTTNews) - Adobe Inc. (ADBE) will host a conference call at 5:00 PM ET on Dec. 13, 2023, to discuss Q4 23 earnings results.
To access the live webcast, log on to https://event.webcasts.com/starthere.jsp?ei=1627708&tp_key=5595fa5b87&tp_special=8
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Adobe Inc. (ADBE) will host a conference call at 5:00 PM ET on Dec. 13, 2023, to discuss Q4 23 earnings results. To access the live webcast, log on to https://event.webcasts.com/starthere.jsp?ei=1627708&tp_key=5595fa5b87&tp_special=8 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Adobe Inc. (ADBE) will host a conference call at 5:00 PM ET on Dec. 13, 2023, to discuss Q4 23 earnings results. To access the live webcast, log on to https://event.webcasts.com/starthere.jsp?ei=1627708&tp_key=5595fa5b87&tp_special=8 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Adobe Inc. (ADBE) will host a conference call at 5:00 PM ET on Dec. 13, 2023, to discuss Q4 23 earnings results. To access the live webcast, log on to https://event.webcasts.com/starthere.jsp?ei=1627708&tp_key=5595fa5b87&tp_special=8 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Adobe Inc. (ADBE) will host a conference call at 5:00 PM ET on Dec. 13, 2023, to discuss Q4 23 earnings results. To access the live webcast, log on to https://event.webcasts.com/starthere.jsp?ei=1627708&tp_key=5595fa5b87&tp_special=8 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | null |
564 | 59,014 | 2023-12-10 00:00:00 UTC | Guru Fundamental Report for ADBE | ADBE | https://www.nasdaq.com/articles/guru-fundamental-report-for-adbe-76 | null | null | Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE 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.
ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming 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 ADOBE INC
ADBE Guru Analysis
ADBE Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for ADOBE INC (ADBE). ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. | null |
565 | 59,017 | 2023-12-09 00:00:00 UTC | 2 Incredible Stocks You'll Regret Not Buying Before 2023 Is Over | ADBE | https://www.nasdaq.com/articles/2-incredible-stocks-youll-regret-not-buying-before-2023-is-over | null | null | As 2024 gets closer, investors need to take a hard look at their portfolios and decide which stocks should be sold. They also need to consider which stocks aren't in there that should be.
To me, if you don't have Taiwan Semiconductor Manufacturing (NYSE: TSM) or Adobe (NASDAQ: ADBE) in your portfolio, you should consider adding them. Each is the most dominant company in its industry, and both have massive tailwinds blowing in their favor.
Taiwan Semiconductor Manufacturing
Are you reading this article on a phone or laptop? Well, you likely have Taiwan Semiconductor Manufacturing (TSMC) to thank for that. Its chips are found in all types of electronic devices, including those made by Apple, Nvidia, and Advanced Micro Devices.
TSMC is the world's largest contract chip manufacturer, which means it takes chip designs from external clients and makes them on their behalf. This is a win-win relationship, as its clients don't have to develop the facilities to make the chips, which would be incredibly costly and inefficient. As another benefit to its clients, Taiwan Semiconductor has some of the most innovative products, including a 3-nanometer chip, which is the next step in efficiency and power.
But just because TSMC has the world's best technology now doesn't mean it's taking an off day. Instead, it's pioneering a 2nm chip expected to reach volume production in 2025. This continual innovation is why TSMC makes for an excellent investment, as it gives the company a new revenue driver every couple of years.
This innovation is why TSMC's revenue has also steadily increased over its existence, with slight dips during a cyclical pullback.
TSM Revenue (TTM) data by YCharts
That's what's happening at TSMC right now, and it's giving investors an absolute bargain on the stock. It's trading for 16 times 2024 earnings, which is cheap considering that the average trailing price-to-earnings ratio over the past decade was 19.
An investment in Taiwan Semiconductor Manufacturing is an investment in improving chip technology, which is a safe bet.
Adobe
In the digital media space, Adobe reigns supreme with its creative design product suite. But Adobe also has tools for e-commerce, business, and artificial intelligence (AI). Adobe and its use of generative AI in its Adobe Firefly product allows creators to modify graphics with simple text inputs. It also deploys AI in its Adobe Sensei product, which helps improve a company's marketing abilities by suggesting new audiences based on traffic or by adding a chatbot to a website.
Regardless, Adobe's new AI products only cement its place at the top of the digital media world. With Adobe's strong subscription model, it's well positioned to succeed for some time.
In Q3 of fiscal year 2023 (ending Sept. 1), Adobe's earnings per share increased from $2.42 to $3.07 -- a 27% rise. This market-crushing growth is what investors have come to expect from Adobe, which is why it has a premium price tag of 54 times trailing earnings. But it only trades for 29 times 2024 earnings, which shows the incredible growth that Adobe will undergo.
That kind of upside excites me about Adobe stock, and I think it represents a great way to lock in market-beating growth alongside Taiwan Semiconductor Manufacturing.
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Keithen Drury has positions in Adobe and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Adobe, Advanced Micro Devices, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe and short January 2024 $430 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | To me, if you don't have Taiwan Semiconductor Manufacturing (NYSE: TSM) or Adobe (NASDAQ: ADBE) in your portfolio, you should consider adding them. It also deploys AI in its Adobe Sensei product, which helps improve a company's marketing abilities by suggesting new audiences based on traffic or by adding a chatbot to a website. That kind of upside excites me about Adobe stock, and I think it represents a great way to lock in market-beating growth alongside Taiwan Semiconductor Manufacturing. | To me, if you don't have Taiwan Semiconductor Manufacturing (NYSE: TSM) or Adobe (NASDAQ: ADBE) in your portfolio, you should consider adding them. An investment in Taiwan Semiconductor Manufacturing is an investment in improving chip technology, which is a safe bet. The Motley Fool has positions in and recommends Adobe, Advanced Micro Devices, Apple, Nvidia, and Taiwan Semiconductor Manufacturing. | To me, if you don't have Taiwan Semiconductor Manufacturing (NYSE: TSM) or Adobe (NASDAQ: ADBE) in your portfolio, you should consider adding them. That kind of upside excites me about Adobe stock, and I think it represents a great way to lock in market-beating growth alongside Taiwan Semiconductor Manufacturing. See the 10 stocks *Stock Advisor returns as of December 4, 2023 Keithen Drury has positions in Adobe and Taiwan Semiconductor Manufacturing. | To me, if you don't have Taiwan Semiconductor Manufacturing (NYSE: TSM) or Adobe (NASDAQ: ADBE) in your portfolio, you should consider adding them. They also need to consider which stocks aren't in there that should be. Well, you likely have Taiwan Semiconductor Manufacturing (TSMC) to thank for that. | 5 |
566 | 59,022 | 2023-12-08 00:00:00 UTC | Axcelis (ACLS) Purion Shipments Continue to Gain Traction | ADBE | https://www.nasdaq.com/articles/axcelis-acls-purion-shipments-continue-to-gain-traction | null | null | Axcelis Technologies, Inc ACLS recently announced that it shipped Purion XE high energy and Purion H high current implanters to various fabs in Korea and China for manufacturing of DRAM memory devices. The shipments also included a follow-on shipment to an existing customer in Korea.
With these new shipments, the company has expanded its presence in China. All the systems are shipped in the fourth quarter of 2023.
Prior to this, the company shipped Purion EXE SiC Power Series 200mm high energy implanter to a Japan-based SiC power device chipmaker in October 2023. ACLS also transported Purion Dragon high current implanter to a leading Europe-based research and innovation center in nanoelectronics and digital technologies in the third quarter of 2023.
Axcelis is a leading producer of ion implantation equipment used in the fabrication of semiconductors.
The top-line performance is being driven by robust customer demand for Purion suite of products, especially in the silicon-carbide power market. The silicon-carbide power device market is being driven by transition electric vehicles. This, in turn, is boosting demand for Purion products, especially PurionH200 silicon carbide, Purion XE silicon carbide systems and Purion M silicon carbide tool.
ACLS expects more than 60% of its shipped system revenues from power markets in 2023. It expects nearly 35% of total system revenues to be generated from silicon carbide applications in 2023. The power device market segment represented 39% of the company’s shipped system revenues in 2022.
In the third quarter of 2023, ACLS reported revenues of $292.3 million, up 6.7% year over year.
Driven by solid growth of Purion Power Series product line, management continues to anticipate revenues for 2023 to be greater than $1.1 billion, suggesting nearly 20% uptick year over year. For the fourth quarter, Axcelis expects revenues of $295 million. By 2025, the company projects revenues of $1.3 billion.
The company continues to invest in employees and infrastructure to achieve its $1.3 billion revenue target in 2025. As part of this strategy, it recently set up a new logistics center in Beverly, MA, to boost logistics and warehouse operations. The state-of-the-art facility is designed to provide flexibility for the company's manufacturing operations, expand customer base and drive growth in the long haul.
ACLS’ performance is likely to be affected due to volatile supply-chain dynamics and global macroeconomic weakness. Increasing expenses toward research and development, and infrastructure are likely to be headwinds.
Image Source: Zacks Investment Research
ACLS currently carries a Zacks Rank #3 (Hold).
Axcelis is witnessing strong momentum, with shares having soared 54.5% year to date compared with 28.2% and 19.1% growth of the sub-industry and S&P Composite, respectively.
Stocks to Consider
Some better-ranked stocks worth consideration in the broader technology space are Cadence Design Systems CDNS, Adobe ADBE and Watts Water Technologies WTS, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Cadence’s 2023 EPS has remained unchanged in the past seven days at $5.11. CDNS’ long-term earnings growth rate is 19.5%.
Cadence’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 4.1%. Shares of CDNS have surged 61.5% in the past year.
The Zacks Consensus Estimate for Adobe’s fiscal 2024 EPS has remained unchanged in the past 30 days at $17.86. ADBE’s long-term earnings growth rate is 13.5%. Shares of ADBE have gained 80.9% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 2.8% in the past 60 days to $8.00.
WTS’ earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11.8%. Shares of WTS have jumped 35% in the past 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. | Stocks to Consider Some better-ranked stocks worth consideration in the broader technology space are Cadence Design Systems CDNS, Adobe ADBE and Watts Water Technologies WTS, each carrying a Zacks Rank #2 (Buy). ADBE’s long-term earnings growth rate is 13.5%. Shares of ADBE have gained 80.9% in the past year. | Stocks to Consider Some better-ranked stocks worth consideration in the broader technology space are Cadence Design Systems CDNS, Adobe ADBE and Watts Water Technologies WTS, each carrying a Zacks Rank #2 (Buy). Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report Axcelis Technologies, Inc. (ACLS) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report To read this article on Zacks.com click here. ADBE’s long-term earnings growth rate is 13.5%. | Stocks to Consider Some better-ranked stocks worth consideration in the broader technology space are Cadence Design Systems CDNS, Adobe ADBE and Watts Water Technologies WTS, each carrying a Zacks Rank #2 (Buy). Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report Axcelis Technologies, Inc. (ACLS) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report To read this article on Zacks.com click here. ADBE’s long-term earnings growth rate is 13.5%. | Stocks to Consider Some better-ranked stocks worth consideration in the broader technology space are Cadence Design Systems CDNS, Adobe ADBE and Watts Water Technologies WTS, each carrying a Zacks Rank #2 (Buy). ADBE’s long-term earnings growth rate is 13.5%. Shares of ADBE have gained 80.9% in the past year. | 5 |
567 | 59,028 | 2023-12-07 00:00:00 UTC | Agilent (A) Enhances BioTek Cytation C10 With New Technology | ADBE | https://www.nasdaq.com/articles/agilent-a-enhances-biotek-cytation-c10-with-new-technology | null | null | Agilent Technologies A is enhancing its BioTek product line on the back of portfolio expansions and technology upgrades.
Notably, Agilent enhanced the BioTek Cytation C10 confocal imaging reader with the addition of water immersion and confocal spinning disk technology.
Further, the water immersion technology can be used in light microscopy to increase numerical aperture, reduce z-axis distortion, and improve image quality by placing water between the objective lens and sample.
Additionally, the technology aids researchers in reducing exposure times in live-cell applications, thereby reducing the traditional phototoxic effects associated with these experiments.
Moreover, this addition offers a deep-sectioning spinning disk technology, enhancing microscopic images by blocking out-of-focus light, resulting in clearer, more quantitative results.
Agilent is anticipated to gain significant traction among researchers utilizing live-cell and 3D applications on the back of its latest move.
Agilent Technologies, Inc. Price and Consensus
Agilent Technologies, Inc. price-consensus-chart | Agilent Technologies, Inc. Quote
Growth Prospects
The latest move positions the company well to strengthen its footing in the global microplate reader and live cell imaging markets.
Per a Grand View Research report, the global microplate reader market is expected to grow at a CAGR of 7.6% during the forecast period 2023-2030.
A Mordor Intelligence report indicates the global live cell imaging market size will reach $2.95 billion by 2028, exhibiting a CAGR of 7.06% between 2023 and 2028.
We believe the company’s solid prospects in these promising markets are expected to instill investor optimism in the stock.
However, the company has been suffering from macroeconomic uncertainties, weak momentum in China, rising inflationary pressure and geo-political tensions.
Agilent has lost 13.9% in the year-to-date period against the industry’s growth of 0.9%.
ACG Segment in Focus
The latest move bodes well for the company’s growing efforts toward bolstering its Agilent CrossLab Group (ACG) segment.
Notably, Agilent Technologies launched Gen6 software for all Agilent BioTek detection instruments, offering automated optimization tools and improved navigation through built-in data analysis functions.
Further, the company introduced the Agilent BioTek 406 FX washer dispenser, a compact tool that combines reagent dispensing and plate-washing, suitable for automated systems and benchtop use.
All the abovementioned endeavors are likely to aid the performance of the ACG segment in the days ahead.
In fourth-quarter fiscal 2023, the ACG segment revenues increased 6% year over year to $404 million, accounting for 24% of total revenues.
Our model projects fiscal 2024 ACG segment revenues at $1.64 billion, indicating growth of 4.7% from 2022.
Strong momentum in the underlined segment will likely aid its overall financial performance in the upcoming period.
Zacks Rank & Stocks to Consider
Currently, Agilent carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are Badger Meter BMI, Arista Networks ANET and Adobe ADBE. While Badger Meter currently sports a Zacks Rank #1 (Strong Buy), Arista Networks and Adobe carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Badger Meter have gained 37.8% in the year-to-date period. BMI’s long-term earnings growth rate is currently projected at 20.39%.
Shares of Arista Networks have surged 75.9% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 19.77%.
Shares of Adobe have gained 84.3% in the year-to-date period. ADBE’s long-term earnings growth rate is currently projected at 13.54%.
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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. | Some better-ranked stocks in the broader technology sector are Badger Meter BMI, Arista Networks ANET and Adobe ADBE. ADBE’s long-term earnings growth rate is currently projected at 13.54%. Click to get this free report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Agilent Technologies, Inc. (A) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Agilent Technologies, Inc. (A) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader technology sector are Badger Meter BMI, Arista Networks ANET and Adobe ADBE. ADBE’s long-term earnings growth rate is currently projected at 13.54%. | Click to get this free report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Agilent Technologies, Inc. (A) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the broader technology sector are Badger Meter BMI, Arista Networks ANET and Adobe ADBE. ADBE’s long-term earnings growth rate is currently projected at 13.54%. | Some better-ranked stocks in the broader technology sector are Badger Meter BMI, Arista Networks ANET and Adobe ADBE. ADBE’s long-term earnings growth rate is currently projected at 13.54%. Click to get this free report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Agilent Technologies, Inc. (A) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report To read this article on Zacks.com click here. | 5 |
568 | 59,034 | 2023-12-06 00:00:00 UTC | Blackbaud (BLKB) Gains 41% YTD: Will the Uptrend Continue? | ADBE | https://www.nasdaq.com/articles/blackbaud-blkb-gains-41-ytd%3A-will-the-uptrend-continue | null | null | Blackbaud BLKB witnessed strong momentum this year. Its shares have rallied 41% year to date compared with the S&P 500 Composite’s 19.6% growth.
BLKB is a well-known cloud software company. It offers a full spectrum of cloud-based and on-premise software solutions and related services for organizations of all sizes, especially the ones engaged in driving social good. It continues to invest heavily in cloud-based applications and software that is expected to bolster its long-term growth.
The company's performance is being driven by robust organic growth and extensive cost-cutting measures. In the last reported quarter, non-GAAP organic revenues grew 6.6% on a reported basis and 5.9% at constant currency, year over year. Non-GAAP organic recurring revenues rose 8.3% year over year. Total revenues jumped 6.2% year over year to $277.6 million.
Non-GAAP operating margin increased 960 basis points from the year-ago level to 28.7%, owing to extensive cost discipline. Non-GAAP adjusted EBITDA margin was 35%, up 940 bps year over year.
Momentum in both contractual and transactional recurring revenue streams, coupled with rising volumes across its other payment solutions, bodes well. Frequent product launches along with rising customer renewal rates and bookings are likely to be beneficial.
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The company is investing in generative AI to further expand its footprint. In October 2023, it announced that it was working on a new AI-powered, social impact reporting and storytelling solution — Impact Edge. Impact Edge will be integrating YourCause from Blackbaud and EVERFI from Blackbaud solutions within a single tool to consolidate data gathered from all reliable sources into one centralized location.
BLKB has a five-point growth strategy with an objective to deliver innovative products, drive booking growth, transactional revenue expansion, modernize pricing and multi-year customer contracts, and improve cost management.
Strategic buyouts have played a pivotal role in driving the top line. The acquisition of EVERFI has helped the company to expand its total addressable market (TAM) by about two times. It added more than $14 billion in TAM through acquisitions and new product launches from 2014 to 2021.
Driven by steady business momentum, Blackbaud reiterated its guidance for 2023. Management continues to expect non-GAAP revenues to be between $1.095 billion and $1.125 billion. It projects non-GAAP adjusted EBITDA margin in the range of 30.5-31.5%.
Non-GAAP earnings per share (EPS) are anticipated to be between $3.63 and $3.94. Non-GAAP adjusted free cash flow for the year is forecasted in the $190-$210 million range.
A Look at Estimates
BLKB’s 2023 and 2024 revenues are anticipated to rise 4.8% and 8%, respectively, year over year. The company’s earnings are expected to increase 40.9% and 17.3% in 2023 and 2024, respectively, on a year-over-year basis.
Over the past 60 days, EPS estimates for 2023 have remained unchanged at $3.79, while the same for 2024 improved 2 cents to $4.45.
A Few Headwinds Persist
Weakness prevailing over global macroeconomic conditions, forex volatility, a leveraged balance sheet and stiff competition continue to be concerns for this Zacks Rank #3 (Hold) stock.
Stocks to Consider
Some better-ranked stocks for investors interested in the broader technology space are Cadence Design Systems CDNS, Adobe ADBE and Watts Water Technologies WTS, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Cadence’s 2023 EPS has remained unchanged in the past seven days at $5.11. CDNS’ long-term earnings growth rate is 19.5%.
Cadence’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 4.1%. Shares of CDNS have risen 63.3% in the past year.
The Zacks Consensus Estimate for Adobe’s fiscal 2024 EPS has remained unchanged in the past 30 days at $17.86. ADBE’s long-term earnings growth rate is 13.5%. Shares of ADBE have rallied 84.3% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies' 2023 EPS has improved 2.8% in the past 60 days to $8.00.
WTS’ earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 11.8%. Shares of WTS have rallied 29.7% in the past year.
Zacks Reveals ChatGPT "Sleeper" 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. | Stocks to Consider Some better-ranked stocks for investors interested in the broader technology space are Cadence Design Systems CDNS, Adobe ADBE and Watts Water Technologies WTS, each carrying a Zacks Rank #2 (Buy) at present. ADBE’s long-term earnings growth rate is 13.5%. Shares of ADBE have rallied 84.3% in the past year. | Stocks to Consider Some better-ranked stocks for investors interested in the broader technology space are Cadence Design Systems CDNS, Adobe ADBE and Watts Water Technologies WTS, each carrying a Zacks Rank #2 (Buy) at present. Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report Blackbaud, Inc. (BLKB) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report To read this article on Zacks.com click here. ADBE’s long-term earnings growth rate is 13.5%. | Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report Blackbaud, Inc. (BLKB) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some better-ranked stocks for investors interested in the broader technology space are Cadence Design Systems CDNS, Adobe ADBE and Watts Water Technologies WTS, each carrying a Zacks Rank #2 (Buy) at present. ADBE’s long-term earnings growth rate is 13.5%. | Stocks to Consider Some better-ranked stocks for investors interested in the broader technology space are Cadence Design Systems CDNS, Adobe ADBE and Watts Water Technologies WTS, each carrying a Zacks Rank #2 (Buy) at present. ADBE’s long-term earnings growth rate is 13.5%. Shares of ADBE have rallied 84.3% in the past year. | 5 |
569 | 59,037 | 2023-12-05 00:00:00 UTC | ADBE Quantitative Stock Analysis | ADBE | https://www.nasdaq.com/articles/adbe-quantitative-stock-analysis-15 | null | null | Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE 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.
ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming 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 ADOBE INC
ADBE Guru Analysis
ADBE 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. | ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for ADOBE INC (ADBE). ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. | 5 |
570 | 59,039 | 2023-12-04 00:00:00 UTC | C3.ai (AI) Gears Up to Report Q2 Earnings: What's in the Cards? | ADBE | https://www.nasdaq.com/articles/c3.ai-ai-gears-up-to-report-q2-earnings%3A-whats-in-the-cards | null | null | C3.ai AI is set to release its second-quarter fiscal 2024 results on Dec 6.
The company anticipates second-quarter fiscal 2024 revenues to be between $72 million and $76.5 million. Non-GAAP loss is anticipated between 27 cents and 40 cents per share.
The Zacks Consensus Estimate for revenues is pegged at $74.49 million, indicating an increase of 19.36% from the year-ago quarter’s reported figure.
The consensus mark for loss has been stable in the past 30 days at 19 cents per share. C3.ai had incurred a loss of 11 cents in the year-ago quarter.
C3.ai, Inc. Price and EPS Surprise
C3.ai, Inc. price-eps-surprise | C3.ai, Inc. Quote
The company beat the Zacks Consensus Estimate in the last four quarters, delivering an earnings surprise of 43.64% on average.
Let’s see how things have shaped up before the announcement.
Factors to Watch
C3.ai’s third-quarter performance is likely to have gained from a strong subscription-based business model and increased demand for its Enterprise AI software.
C3.ai is likely to have benefited from the increasing adoption of its services, including C3 Generative AI and predictive maintenance.
In the first quarter of fiscal 2024, C3.ai’s number of customers was 334. It is expected to have increased steadily in the to-be-reported quarter.
The company achieved major advancements in its Generative AI platform during the to-be-reported quarter, which improved the functionality and accessibility of its enterprise AI applications. This is expected to have benefited the top line.
Apart from tech and product capability, C3.ai is likely to have benefited from strong sales capabilities with its tech partners. In the to-be-reported quarter, partnerships with companies like Booz Allen Hamilton, Microsoft, Amazon Web Services (AWS) and Google Cloud are anticipated to have driven the company’s overall growth.
C3.ai’s second-quarter performance is likely to have benefited from a scalable business model for defense systems.
The trends are expected to have continued in the to-be-reported quarter.
Key Q3 Developments
The company recently announced the inclusion of asset monitoring and predictive maintenance software developed by Shell SHEL in its C3 AI Reliability Application to help customers strengthen their operational efficiencies.
Shell and C3.ai collaborated to develop advanced models and application functions that predict maintenance needs for control valves and help their engineers and data scientists.
What Our Model Indicates
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
C3.ai has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a couple of companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Science Applications International SAIC has an Earnings ESP of +3.01% and currently carries a Zacks Rank of 2. You can find the complete list of today’s Zacks #1 Rank stocks here.
Science Applications International is set to announce fourth-quarter and fiscal 2023 results on Dec 4. SAIC’s shares are up 8.1% year to date.
Adobe ADBE has an Earnings ESP of +13.5% and carries a Zacks Rank of 2.
Adobe is set to announce fourth-quarter and fiscal 2023 results on Dec 13. Adobe’s shares are up 82% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s 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. | Adobe ADBE has an Earnings ESP of +13.5% and carries a Zacks Rank of 2. Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report C3.ai, Inc. (AI) : Free Stock Analysis Report Science Applications International Corporation (SAIC) : Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report To read this article on Zacks.com click here. Shell and C3.ai collaborated to develop advanced models and application functions that predict maintenance needs for control valves and help their engineers and data scientists. | Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report C3.ai, Inc. (AI) : Free Stock Analysis Report Science Applications International Corporation (SAIC) : Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report To read this article on Zacks.com click here. Adobe ADBE has an Earnings ESP of +13.5% and carries a Zacks Rank of 2. What Our Model Indicates Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. | Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report C3.ai, Inc. (AI) : Free Stock Analysis Report Science Applications International Corporation (SAIC) : Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report To read this article on Zacks.com click here. Adobe ADBE has an Earnings ESP of +13.5% and carries a Zacks Rank of 2. The company beat the Zacks Consensus Estimate in the last four quarters, delivering an earnings surprise of 43.64% on average. | Adobe ADBE has an Earnings ESP of +13.5% and carries a Zacks Rank of 2. Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report C3.ai, Inc. (AI) : Free Stock Analysis Report Science Applications International Corporation (SAIC) : Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report To read this article on Zacks.com click here. The company beat the Zacks Consensus Estimate in the last four quarters, delivering an earnings surprise of 43.64% on average. | 4 |
571 | 59,041 | 2023-12-03 00:00:00 UTC | 2 Surprising Artificial Intelligence (AI) Stocks You Should Consider | ADBE | https://www.nasdaq.com/articles/2-surprising-artificial-intelligence-ai-stocks-you-should-consider | null | null | OpenAI launched ChatGPT about a year ago, sparking a massive boom across the artificial intelligence (AI) industry. These days, every business worth its salt is doing something important and/or interesting with AI tools.
So, how do you invest in the AI sea change? Well, it's easy to fall back on the usual AI suspects, such as hardware leader Nvidia or software giant Microsoft. But those stocks have already skyrocketed due to the long-term promise of the AI revolution. Microsoft's stock price is up by 56% in 2023, and Nvidia's shares have more than tripled this year. As a result, they are priced for perfection at nosebleed-inducing valuation ratios.
Maybe it's best to leave these giants alone, for now, waiting for a seemingly inevitable price correction. The buy-on-the-dip strategy looks appropriate for these early AI leaders.
That doesn't mean you have to sit on your robotic hands. Plenty of great companies are diving into the AI opportunity. Proactive investors can access alternative ideas that most people don't view as "AI stocks" yet. So, let me show you why I think you will move Adobe (NASDAQ: ADBE) and SentinelOne (NYSE: S) into that category over the next couple of years, unlocking tons of shareholder value along the way.
Adobe: The godfather of generative AI
Adobe has been integrating AI into its creative software products for several years now, allowing them to leverage the power of AI to automate certain tasks and enhance workflows. Going back over 20 years in Adobe's history, one of the first big AI features it introduced was optical character recognition (OCR) technology for scanning and digitizing text in Acrobat. That was groundbreaking stuff in the early 2000s, when internet access largely came from dial-up connections, and most cellphones didn't have cameras.
Acrobat's OCR abilities have advanced over time with machine learning to where they can now intelligently recognize text in scanned documents or images, even in complex layouts, odd fonts, and non-English languages. This allows rapid digitization and searching of paper documents in Acrobat.
In 2019, Adobe acquired a company called Allegorithmic that specialized in AI tools for generating textures and materials for 3D imagery. This move helped jump-start some of Adobe's AI capabilities.
Later that year, Adobe released a series of AI-powered features under what they branded as Adobe Sensei. This umbrella term encompasses all their AI-enabled features across products like Photoshop, Lightroom, Illustrator, and others.
For example, Adobe Sensei helps Photoshop users automatically select and mask objects, transform backgrounds, and more. In Lightroom, an AI search tool helps find specific photos quickly. Illustrator uses AI to convert raster images into vector graphics automatically. And the Sensei AI framework also powers intelligent content-aware fill, visual font recognition, automatic audio transcription, and much more across the Adobe suite.
Behind the scenes, Adobe has assembled a team of computer vision scientists, data engineers, and machine learning experts who develop these AI capabilities. The Allegorithmic buyout added important talent to this team, and Adobe runs tight research partnerships with leading universities such as Cornell and the University of Toronto. They leverage modern machine learning approaches, like deep learning and natural language processing, to train and refine the Sensei AI algorithms.
The key advantage for creatives is that the AI tools automate time-consuming tasks so artists and designers can focus more on creativity. Over time, Adobe continues to expand Sensei to infuse more intelligence and automation into its software.
That makes Adobe a visionary front-runner in the AI race. Investors started catching wind of Adobe's robust AI prospects in June, and the stock has been rising ever since. It's not too late to get an early jump on Adobe as an AI stock, and I think this little industry giant is going places in the increasingly automated cyberspace.
SentinelOne: AI-powered cybersecurity
Leading the charge in AI-driven cybersecurity, SentinelOne stands out with its innovative approach to endpoint protection, using sophisticated AI algorithms to detect and thwart threats in real time. Is this company a data security leader or an AI expert? It's actually both.
SentinelOne focuses on endpoint protection and using AI to detect and respond to threats autonomously. In other words, it runs a highly automated security system that protects systems, such as smartphones, laptops, point-of-sale terminals, and servers, from digital threats. It leaves the core network's security to other companies, doubling down specifically on the vulnerable endpoints.
Founded in 2013, SentinelOne was an early pioneer in leveraging machine learning for cybersecurity defense. At the core of their product is an AI engine that uses techniques like behavioral analysis and predictive modeling to identify anomalies and suspicious activities indicating an attack. This prevents security breaches instead of just reacting after the endpoint has been compromised.
SentinelOne trains large neural networks on massive data sets of benign and malicious software activity to create highly accurate threat detection models. They also apply natural language processing to scan for threats spread through files and scripts. As new threats emerge, SentinelOne claims their AI can automatically develop protections through autonomous learning. AI systems are always looking for new security challenges and ways to defeat them.
To augment the AI, SentinelOne also has threat-hunting teams of human security experts. Armed with SentinelOne's powerful AI systems, they gather the latest threat intelligence and forensic data to continuously update the algorithms' training and logic for identifying security incidents. Remember, self-learning AI systems still rely on human input to separate good outcomes from bad ones. This human-machine teaming aims to make the AI platform more knowledgeable over time.
Through cloud-delivered AI that automatically hardens, detects, and responds to endpoint threats, SentinelOne aspires to make defense autonomous and evolve just as quickly as attackers' techniques so that organizations can stay secure amid rapidly advancing cyber threats powered by AI themselves.
The company is not yet profitable, but its top-line sales are surging. Revenue rose by 46% year over year in the latest quarterly report, and SentinelOne reinvested the soaring income stream to support future growth. Research and development expenses consumed 36% of the company's second-quarter revenues, while sales and marketing took a 66% bite of the same money flow.
Yes, SentinelOne is spending more than its total sales on these growth-boosting functions. That's standard operating procedure for a high-growth business in the innovation-sensitive tech sector. With $732 million of cash equivalents and short-term investments in its coffers and zero debt to worry about, this oft-overlooked AI expert can afford to keep that pedal to the metal for years to come.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | So, let me show you why I think you will move Adobe (NASDAQ: ADBE) and SentinelOne (NYSE: S) into that category over the next couple of years, unlocking tons of shareholder value along the way. Acrobat's OCR abilities have advanced over time with machine learning to where they can now intelligently recognize text in scanned documents or images, even in complex layouts, odd fonts, and non-English languages. SentinelOne trains large neural networks on massive data sets of benign and malicious software activity to create highly accurate threat detection models. | So, let me show you why I think you will move Adobe (NASDAQ: ADBE) and SentinelOne (NYSE: S) into that category over the next couple of years, unlocking tons of shareholder value along the way. They leverage modern machine learning approaches, like deep learning and natural language processing, to train and refine the Sensei AI algorithms. Armed with SentinelOne's powerful AI systems, they gather the latest threat intelligence and forensic data to continuously update the algorithms' training and logic for identifying security incidents. | So, let me show you why I think you will move Adobe (NASDAQ: ADBE) and SentinelOne (NYSE: S) into that category over the next couple of years, unlocking tons of shareholder value along the way. Adobe: The godfather of generative AI Adobe has been integrating AI into its creative software products for several years now, allowing them to leverage the power of AI to automate certain tasks and enhance workflows. SentinelOne: AI-powered cybersecurity Leading the charge in AI-driven cybersecurity, SentinelOne stands out with its innovative approach to endpoint protection, using sophisticated AI algorithms to detect and thwart threats in real time. | So, let me show you why I think you will move Adobe (NASDAQ: ADBE) and SentinelOne (NYSE: S) into that category over the next couple of years, unlocking tons of shareholder value along the way. Microsoft's stock price is up by 56% in 2023, and Nvidia's shares have more than tripled this year. Proactive investors can access alternative ideas that most people don't view as "AI stocks" yet. | null |
572 | 59,043 | 2023-12-02 00:00:00 UTC | Forget Microsoft: These Are the Unstoppable Stocks to Buy Now | ADBE | https://www.nasdaq.com/articles/forget-microsoft%3A-these-are-the-unstoppable-stocks-to-buy-now | null | null | Investors have pushed Microsoft (NASDAQ: MSFT) stock to new highs in recent weeks. The tech giant's share price performance is trouncing the wider market, having soared nearly 60% this year. By comparison, the Nasdaq Composite gained 36%.
Some investors are concerned that this rally has made Microsoft a less compelling growth stock. It's approaching $3 trillion in market capitalization, after all, and Wall Street is well aware of its many sales catalysts ahead. These include artificial intelligence (AI) and the rising demand for video games and cybersecurity software in the years to come.
If you'd like exposure to some of these industries but are turned off by Microsoft's elevated valuation, there are some good alternatives to consider. Read on for reasons to buy Adobe (NASDAQ: ADBE) and Palo Alto Networks (NASDAQ: PANW), instead.
Adobe is cashing in on AI
Adobe stock is riding on a wave of enthusiasm about generative AI, but it isn't just hype that's elevating investor sentiment in 2023. The software giant is already capitalizing on AI tech that's made its way into products like Photoshop and Premiere Pro. In mid-September, Adobe revealed that higher demand across its portfolio has helped push profit to $4.9 billion in the first half of 2023, up from $4.5 billion a year earlier.
Adobe's focus on content creation positions it well to take full advantage of the rising value that AI is delivering. You can see evidence of that excitement in the fact that people have generated 2 billion images using its new Firefly software in just the first six months following its release. Subscription services are rising, too, contributing to impressive cash-flow trends.
The company is valued at a premium to Microsoft. But growth-stock investors see good reasons to like shares at the current valuation of 15x sales, compared to Microsoft's price-to-sales ratio (P/S) of 13. Its smaller sales footprint and greater focus on creative content could make Adobe a huge winner in the next era of computing tech.
Palo Alto Networks can keep its momentum
Microsoft offers cybersecurity protection as part of its huge services platform, but investors might earn better returns from owning Palo Alto Networks over the next several years. Sure, investors were a bit disappointed with the company's earnings update in late November, which showed slowing billings trends.
Yet sales were up a healthy 20% in the Q3 period and are on track to rise at nearly the same pace for the full year. Most Wall Street pros are looking for Microsoft to grow at 4% this fiscal year, by contrast.
An investment in Palo Alto Networks doesn't offer nearly the same level of diversity and safety that comes along with Microsoft's massive global sales base. You don't get a dividend from owning this cybersecurity business, either.
Still, investors who value growth will love Palo Alto Networks' expanding market share and its healthy market share in a competitive niche. Management is determined to keep boosting profitability, as well, building on the excellent momentum that shareholders saw here last year.
As is the case with Adobe, you'll pay a higher premium to own Palo Alto right now, as compared to late 2022. But for roughly the same price-to-sales valuation as Microsoft, you'll get exposure to a leading software-as-a-service provider in an industry that's likely to see fantastic growth over the next several years.
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Demitri Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe, Microsoft, and Palo Alto Networks. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe and short January 2024 $430 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Read on for reasons to buy Adobe (NASDAQ: ADBE) and Palo Alto Networks (NASDAQ: PANW), instead. Its smaller sales footprint and greater focus on creative content could make Adobe a huge winner in the next era of computing tech. An investment in Palo Alto Networks doesn't offer nearly the same level of diversity and safety that comes along with Microsoft's massive global sales base. | Read on for reasons to buy Adobe (NASDAQ: ADBE) and Palo Alto Networks (NASDAQ: PANW), instead. Still, investors who value growth will love Palo Alto Networks' expanding market share and its healthy market share in a competitive niche. The Motley Fool has positions in and recommends Adobe, Microsoft, and Palo Alto Networks. | Read on for reasons to buy Adobe (NASDAQ: ADBE) and Palo Alto Networks (NASDAQ: PANW), instead. Adobe is cashing in on AI Adobe stock is riding on a wave of enthusiasm about generative AI, but it isn't just hype that's elevating investor sentiment in 2023. Palo Alto Networks can keep its momentum Microsoft offers cybersecurity protection as part of its huge services platform, but investors might earn better returns from owning Palo Alto Networks over the next several years. | Read on for reasons to buy Adobe (NASDAQ: ADBE) and Palo Alto Networks (NASDAQ: PANW), instead. Still, investors who value growth will love Palo Alto Networks' expanding market share and its healthy market share in a competitive niche. * They just revealed what they believe are the ten best stocks for investors to buy right now… and Adobe wasn't one of them! | null |
573 | 59,048 | 2023-12-01 00:00:00 UTC | SentinelOne (S) to Report Q3 Earnings: What's in the Cards? | ADBE | https://www.nasdaq.com/articles/sentinelone-s-to-report-q3-earnings%3A-whats-in-the-cards-0 | null | null | SentinelOne S is set to release third-quarter fiscal 2024 results on Dec 5.
For the quarter, the company expects total revenues of $156 million. The Zacks Consensus Estimate for revenues is pegged at $156.15 million, suggesting growth of 35.4% from the figure reported in the year-ago quarter.
The consensus mark for loss remained at 8 cents per share in the past 30 days. SentinelOne reported a loss of 16 cents in the year-ago quarter.
The company beat the Zacks Consensus Estimate in the last four quarters, delivering an earnings surprise of 24.74% on average.
SentinelOne, Inc. Price and EPS Surprise
SentinelOne, Inc. price-eps-surprise | SentinelOne, Inc. Quote
Let’s see how things have shaped up for this announcement.
Factors to Watch
SentinelOne’s third-quarter performance is likely to have benefited from a scalable business model. It has been incorporating generative AI into its cybersecurity solutions, which is expected to have attracted new customers.
In the second quarter of fiscal 2024, SentinelOne added nearly 700 new customers. Its total customer base surpassed 11,000.
The Annual Recurring Revenues (ARR) increased 47% year over year to reach $612.2 million in the previous quarter. Customers with more than $10,000 of ARR increased 37% year over year.
The trends are expected to have continued in the to-be-reported quarter.
Key Q3 Developments
The company announced the expansion of its native threat intelligence capabilities with the launch of Singularity Threat Intelligence. The solution will provide security teams with complete insights that they can use to quickly combat rivals and minimize risk directly within the SentinelOne Singularity Platform.
The company also partnered with Alphabet GOOGL to integrate its Singularity Platform on Google Cloud Marketplace for easy accessibility of its cybersecurity platform.
Alphabet's cloud customers can buy and manage the full range of available technology and services and improve their cybersecurity strategies and business goals.
What Our Model Indicates
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
SentinelOne has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a couple of companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Science Applications International SAIC has an Earnings ESP of +3.01% and currently has a Zacks Rank of 2. You can find the complete list of today’s Zacks #1 Rank stocks here.
Science Applications International is set to announce fourth-quarter and fiscal 2023 results on Dec 4. Science Applications International’s shares are up 5.8% year to date.
Adobe ADBE has an Earnings ESP of +13.5% and carries a Zacks Rank of 2 at present.
Adobe is set to announce fourth-quarter and fiscal 2023 results on Dec 13. Adobe’s shares are up 81.5% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adobe ADBE has an Earnings ESP of +13.5% and carries a Zacks Rank of 2 at present. Click to get this free report SentinelOne, Inc. (S) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Science Applications International Corporation (SAIC) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. The solution will provide security teams with complete insights that they can use to quickly combat rivals and minimize risk directly within the SentinelOne Singularity Platform. | Click to get this free report SentinelOne, Inc. (S) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Science Applications International Corporation (SAIC) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Adobe ADBE has an Earnings ESP of +13.5% and carries a Zacks Rank of 2 at present. What Our Model Indicates Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. | Click to get this free report SentinelOne, Inc. (S) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Science Applications International Corporation (SAIC) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Adobe ADBE has an Earnings ESP of +13.5% and carries a Zacks Rank of 2 at present. What Our Model Indicates Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. | Adobe ADBE has an Earnings ESP of +13.5% and carries a Zacks Rank of 2 at present. Click to get this free report SentinelOne, Inc. (S) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Science Applications International Corporation (SAIC) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. The company beat the Zacks Consensus Estimate in the last four quarters, delivering an earnings surprise of 24.74% on average. | null |
574 | 59,052 | 2023-11-30 00:00:00 UTC | Could Investing in the Nasdaq-100 Help You Retire a Millionaire? | ADBE | https://www.nasdaq.com/articles/could-investing-in-the-nasdaq-100-help-you-retire-a-millionaire | null | null | While some may consider index fund investing boring, there is no easier way to put yourself on a path to success than consistently adding to an index fund. In fact, I'd argue that many investors would be better suited to doing this than buying individual stocks they don't have the stomach to hold when the market turns south.
Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett shares this belief, which is why I think all investors should own my favorite index fund: The Invesco QQQ (NASDAQ: QQQ), an exchange-traded fund that tracks the Nasdaq-100. But could investing in this fund really make you a millionaire?
The Invesco QQQ is heavily concentrated in 10 stocks
The financial media often refers to this index as the "tech-heavy Nasdaq-100," and for good reason. It has a high concentration of tech companies because so many of them chose to list on the Nasdaq exchange rather than the New York Stock Exchange (NYSE) when they went public.
Just take a look at the 10 largest QQQ positions.
COMPANY ALLOCATION
Apple (NASDAQ: AAPL) 11.1%
Microsoft (NASDAQ: MSFT) 10.4%
Amazon (NASDAQ: AMZN) 5.6%
Nvidia (NASDAQ: NVDA) 4.5%
Meta Platforms (NASDAQ: META) 4%
Broadcom (NASDAQ: AVGO) 3.2%
Alphabet Class A (NASDAQ: GOOGL) 3.1%
Alphabet Class C (NASDAQ: GOOG) 3%
Tesla (NASDAQ: TSLA) 2.8%
Adobe (NASDAQ: ADBE)
2.3%
Data source: Invesco.
If you add up those positions, you'll see that half the value of the QQQ is in these 10 mega-cap tech stocks, so the fund's performance is directly tied to their success. But being invested in them has been a fantastic strategy over the past decade. I also think it will be great moving forward.
Just think of the tailwinds that are blowing behind each of these businesses. Artificial intelligence (AI) is a huge part of the growth thesis for many of the stocks in the top 10. There are also trends like electric vehicles, cloud computing, and e-commerce represented, making an investment in QQQ an investment in the future.
Compounded growth can do remarkable things
Over the past decade, the QQQ's compound annual growth rate (CAGR) has been 17.5%. How many investors have put up a 17.5% CAGR over the past decade? Very few. Still, you would have had to put $200,000 into the QQQ a decade ago to have a million-dollar-plus holding today.
But what about over a longer time frame? Over the past two decades, the QQQ posted a CAGR of 13.6%, which is a more reasonable expectation. If you put $250 a month into an investment that delivered an annualized return of 13% over the long haul, in 30 years, your investment would be worth nearly $1.1 million.
Now, a 13% annualized return is still an extremely high bar and far exceeds the broad market's long-term average. However, given its significant concentration in some of the most important companies today, I'm confident that the QQQ will provide market-beating returns in the future.
With a buy-and-hold mindset and a steady cash stream, the QQQ could provide a low-effort way to become a millionaire when you retire.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Adobe, Alphabet, Amazon, Invesco Qqq Trust, Series 1, and Tesla. The Motley Fool has positions in and recommends Adobe, Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2024 $420 calls on Adobe and short January 2024 $430 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) 11.1% Microsoft (NASDAQ: MSFT) 10.4% Amazon (NASDAQ: AMZN) 5.6% Nvidia (NASDAQ: NVDA) 4.5% Meta Platforms (NASDAQ: META) 4% Broadcom (NASDAQ: AVGO) 3.2% Alphabet Class A (NASDAQ: GOOGL) 3.1% Alphabet Class C (NASDAQ: GOOG) 3% Tesla (NASDAQ: TSLA) 2.8% Adobe (NASDAQ: ADBE) 2.3% Data source: Invesco. In fact, I'd argue that many investors would be better suited to doing this than buying individual stocks they don't have the stomach to hold when the market turns south. The Invesco QQQ is heavily concentrated in 10 stocks The financial media often refers to this index as the "tech-heavy Nasdaq-100," and for good reason. | Apple (NASDAQ: AAPL) 11.1% Microsoft (NASDAQ: MSFT) 10.4% Amazon (NASDAQ: AMZN) 5.6% Nvidia (NASDAQ: NVDA) 4.5% Meta Platforms (NASDAQ: META) 4% Broadcom (NASDAQ: AVGO) 3.2% Alphabet Class A (NASDAQ: GOOGL) 3.1% Alphabet Class C (NASDAQ: GOOG) 3% Tesla (NASDAQ: TSLA) 2.8% Adobe (NASDAQ: ADBE) 2.3% Data source: Invesco. Keithen Drury has positions in Adobe, Alphabet, Amazon, Invesco Qqq Trust, Series 1, and Tesla. The Motley Fool has positions in and recommends Adobe, Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and Tesla. | Apple (NASDAQ: AAPL) 11.1% Microsoft (NASDAQ: MSFT) 10.4% Amazon (NASDAQ: AMZN) 5.6% Nvidia (NASDAQ: NVDA) 4.5% Meta Platforms (NASDAQ: META) 4% Broadcom (NASDAQ: AVGO) 3.2% Alphabet Class A (NASDAQ: GOOGL) 3.1% Alphabet Class C (NASDAQ: GOOG) 3% Tesla (NASDAQ: TSLA) 2.8% Adobe (NASDAQ: ADBE) 2.3% Data source: Invesco. Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett shares this belief, which is why I think all investors should own my favorite index fund: The Invesco QQQ (NASDAQ: QQQ), an exchange-traded fund that tracks the Nasdaq-100. See the 10 stocks *Stock Advisor returns as of November 20, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. | Apple (NASDAQ: AAPL) 11.1% Microsoft (NASDAQ: MSFT) 10.4% Amazon (NASDAQ: AMZN) 5.6% Nvidia (NASDAQ: NVDA) 4.5% Meta Platforms (NASDAQ: META) 4% Broadcom (NASDAQ: AVGO) 3.2% Alphabet Class A (NASDAQ: GOOGL) 3.1% Alphabet Class C (NASDAQ: GOOG) 3% Tesla (NASDAQ: TSLA) 2.8% Adobe (NASDAQ: ADBE) 2.3% Data source: Invesco. But could investing in this fund really make you a millionaire? If you put $250 a month into an investment that delivered an annualized return of 13% over the long haul, in 30 years, your investment would be worth nearly $1.1 million. | null |
575 | 59,057 | 2023-11-29 00:00:00 UTC | NetApp (NTAP) Q2 Earnings & Revenues Top Estimates, Stock Up | ADBE | https://www.nasdaq.com/articles/netapp-ntap-q2-earnings-revenues-top-estimates-stock-up | null | null | NetApp, Inc NTAP reported second-quarter fiscal 2024 non-GAAP earnings of $1.58 per share, which surpassed the Zacks Consensus Estimate by 12.9% and increased 7% year over year. Management anticipated non-GAAP earnings in the range of $1.35-$1.45.
Revenues of $1.562 billion decreased 6% (down 8% at constant currency basis) year over year. NTAP projected revenues in the $1.455-$1.605 billion band. Weak IT spending due to tough macro environment remains an overhang.
However, revenues beat the consensus mark by 2.1%.
NetApp now expects fiscal 2024 revenues to inch down 2% year over year compared with the earlier projection of a decline in mid-to-low single-digit range on a year-over-year basis. Despite soft macroeconomic conditions, management expects strength in product, and hyper-scaler first-party and marketplace services to drive revenues. Weakness in public cloud subscription services is likely to remain a headwind in the near term.
NetApp, Inc. Price, Consensus and EPS Surprise
NetApp, Inc. price-consensus-eps-surprise-chart | NetApp, Inc. Quote
The company now forecasts fiscal 2024 non-GAAP earnings per share (EPS) to be between $6.05 and $6.25 (previous prediction: $5.65 and $5.85). The Zacks Consensus Estimate is pegged at $5.73.
For fiscal 2024, NetApp expects non-GAAP gross margin to be nearly 71% compared with 70% expected earlier. Non-GAAP operating margin is projected to be nearly 26% compared with 25% expected earlier.
Following the announcement, shares are up 11.4% in the pre-market trading on Nov 29. In the past year, shares have gained 15.5% compared with the sub-industry’s growth of 45.1%.
Image Source: Zacks Investment Research
Top-Line Details
NTAP reports revenues under two segments, namely, Hybrid Cloud and Public Cloud.
The Hybrid Cloud segment consists of revenues from the enterprise datacenter business including product, support and professional services.
The Public Cloud segment comprises revenues from products, which are delivered as-a-service and entail related support. The portfolio contains cloud automation and optimization services. Storage and cloud infrastructure monitoring services are also included.
Revenues from the Hybrid Cloud segment were down 7% year over year to $1.408 billion. The Public Cloud segment’s revenues were up 8% from the year-ago quarter’s levels to $154 million.
We projected revenues from the Hybrid Cloud and Public Cloud segments’ for the fiscal second quarter to be $1372.4 million and $156.9 million, respectively.
Within the Hybrid Cloud segment, Product revenues (50% of segmental revenues) plunged 16% year over year to $706 million.
Revenues from Support Contracts (44%) totaled $623 million, gaining 2.6% year over year. Professional and Other Services revenues (6%) were $79 million, which rose 2.6% year over year.
Software product revenues amounted to $398 million, dipping 19.6%.
Region-wise, the Americas, Europe, Middle East and Africa, and Asia Pacific contributed 50%, 34% and 16% to total revenues, respectively.
Direct and Indirect revenues added 23% and 77%, respectively, to total revenues.
Key Metrics
During the fiscal second quarter, the company’s All-Flash Array Business’ annualized net revenue run rate of $3.2 billion inched up 1% year over year. Total billings fell 9% year over year to $1.5 billion. Deferred revenues were $4 billion, down 1% on a year-over-year basis.
Public Cloud Services recorded annualized recurring revenues of $609 million, up 1% year over year.
Operating Details
Non-GAAP gross margin of 72% expanded 570 basis points (bps) from the prior-year levels.
The Hybrid Cloud segment’s gross margin was 72.7%, which extended 660 bps year over year. The Public Cloud segment witnessed gross margin of 66.2%, contracting 210 bps year over year.
Non-GAAP operating expenses were $706 million compared with $709 million in the previous-year quarter. As a percentage of net revenues, the figure was 45.2%, up 260 bps on a year-over-year basis.
Non-GAAP operating income increased 6.6% year over year to $419 million. Non-GAAP operating margin expanded 320 bps to 26.8%.
Balance Sheet & Cash Flow
NetApp exited the quarter ending Oct 27, 2023, with $2.620 billion in cash, cash equivalents and investments compared with $2.975 billion as of Jul 28. Long-term debt was $1.991 billion compared with $2.390 billion as of Jul 28.
Net cash from operations was $135 million compared with $453 million in the previous quarter.
Free cash flow was $97 million (free cash flow margin of 6.2%) compared with $418 million in the prior quarter (29.2%).
The company returned $403 million to shareholders as dividend payouts and share repurchases in the fiscal second quarter.
NTAP also announced a dividend of 50 cents payable on Jan 24, 2024, to shareholders of record as of the close of business on Jan 5, 2024.
Q3 2024 Guidance
Management projects non-GAAP EPS to be between $1.64 and $1.74. The Zacks Consensus Estimate is pegged at $1.53.
Net revenues are anticipated in the range of $1.51-$1.67 billion. The Zacks Consensus Estimate is pegged at $1.56 billion.
NetApp currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks worth consideration in the broader technology space are Adobe ADBE, Synopsys SNPS and Watts Water Technologies WTS, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Adobe’s fiscal 2023 EPS has remained unchanged in the past 60 days at $15.93. ADBE’s long-term earnings growth rate is 13.5%.
Adobe’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 3.3%. Shares of ADBE have surged 85.5% in the past year.
The Zacks Consensus Estimate for Synopsys’ fiscal 2024 EPS has remained flat in the past 30 days at $12.52. SNPS’ long-term earnings growth rate is 16.7%. Shares of SNPS have gained 70.4% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 2.8% in the past 60 days to $8.00.
WTS’ earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 11.8%. Shares of WTS have surged 31.4% in the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s 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. | Stocks to Consider Some better-ranked stocks worth consideration in the broader technology space are Adobe ADBE, Synopsys SNPS and Watts Water Technologies WTS, each carrying a Zacks Rank #2 (Buy). ADBE’s long-term earnings growth rate is 13.5%. Shares of ADBE have surged 85.5% in the past year. | Stocks to Consider Some better-ranked stocks worth consideration in the broader technology space are Adobe ADBE, Synopsys SNPS and Watts Water Technologies WTS, each carrying a Zacks Rank #2 (Buy). Click to get this free report NetApp, Inc. (NTAP) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Synopsys, Inc. (SNPS) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report To read this article on Zacks.com click here. ADBE’s long-term earnings growth rate is 13.5%. | Click to get this free report NetApp, Inc. (NTAP) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Synopsys, Inc. (SNPS) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks to Consider Some better-ranked stocks worth consideration in the broader technology space are Adobe ADBE, Synopsys SNPS and Watts Water Technologies WTS, each carrying a Zacks Rank #2 (Buy). ADBE’s long-term earnings growth rate is 13.5%. | Stocks to Consider Some better-ranked stocks worth consideration in the broader technology space are Adobe ADBE, Synopsys SNPS and Watts Water Technologies WTS, each carrying a Zacks Rank #2 (Buy). ADBE’s long-term earnings growth rate is 13.5%. Shares of ADBE have surged 85.5% in the past year. | 4 |
576 | 59,064 | 2023-11-28 00:00:00 UTC | UK's Competition Regulator Says Adobe-Figma Deal Could Harm UK Digital Design Sector | ADBE | https://www.nasdaq.com/articles/uks-competition-regulator-says-adobe-figma-deal-could-harm-uk-digital-design-sector | null | null | (RTTNews) - The UK's Competition and Markets Authority or CMA, which was investigating Adobe Inc.'s $20 billion deal to buy Figma Inc., announced Tuesday that it has provisionally found the proposed acquisition would likely harm the digital design sector in the U.K.
According to the agency, the deal could harm innovation for software used by the vast majority of UK digital designers.
It was on September 15, 2022 that Adobe announced a definitive merger deal to acquire Figma for around $20 billion in cash and stock.
CMA in late June this year had refered the proposed acquisition for a phase 2 probe after its phase 1 investigation found that the merger may result in a substantial lessening of competition in the UK.
Figma is currently a major provider of product design software which is used by designers, creative agencies and businesses. Adobe is one of Figma's main competitors in product design software. It currently competes using its Adobe XD product. Adobe is also the largest supplier of image editing and illustration software, well known for its Photoshop and Illustrator applications.
In a statement, the agency now noted that its investigation found that around 80% of the professional product design market use Figma's software.
The CMA said it provisionally found that the deal would eliminate competition between two main competitors in the software markets of product design, image editing, and illustration. It would also reduce innovation and the development of new competitive products.
The deal, if successful, would also remove Figma as a threat to Adobe's flagship Photoshop and Illustrator products.
The investigation also provisionally found that, without the merger, Figma would continue to take steps to develop or expand products that threatened Adobe's position in image editing and illustration.
Margot Daly, chair of the independent group conducting this investigation, said, "The digital design sector is worth nearly £60 billion to the UK - representing 2.7% of the national economy - and employs over 850,000 people in highly skilled work. ...Adobe and Figma are two of the world leading providers of software for app and web designers and our investigation so far has found that they are close competitors. This proposed deal, therefore, has the potential to impact the UK's digital design industry by reducing choice, innovation and the development of new competitive products."
The CMA said the decision is provisional, and that it will now consult on its findings and listen to any further views before reaching a final decision.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - The UK's Competition and Markets Authority or CMA, which was investigating Adobe Inc.'s $20 billion deal to buy Figma Inc., announced Tuesday that it has provisionally found the proposed acquisition would likely harm the digital design sector in the U.K. The investigation also provisionally found that, without the merger, Figma would continue to take steps to develop or expand products that threatened Adobe's position in image editing and illustration. Margot Daly, chair of the independent group conducting this investigation, said, "The digital design sector is worth nearly £60 billion to the UK - representing 2.7% of the national economy - and employs over 850,000 people in highly skilled work. | (RTTNews) - The UK's Competition and Markets Authority or CMA, which was investigating Adobe Inc.'s $20 billion deal to buy Figma Inc., announced Tuesday that it has provisionally found the proposed acquisition would likely harm the digital design sector in the U.K. Adobe is one of Figma's main competitors in product design software. The CMA said it provisionally found that the deal would eliminate competition between two main competitors in the software markets of product design, image editing, and illustration. | (RTTNews) - The UK's Competition and Markets Authority or CMA, which was investigating Adobe Inc.'s $20 billion deal to buy Figma Inc., announced Tuesday that it has provisionally found the proposed acquisition would likely harm the digital design sector in the U.K. The CMA said it provisionally found that the deal would eliminate competition between two main competitors in the software markets of product design, image editing, and illustration. The investigation also provisionally found that, without the merger, Figma would continue to take steps to develop or expand products that threatened Adobe's position in image editing and illustration. | (RTTNews) - The UK's Competition and Markets Authority or CMA, which was investigating Adobe Inc.'s $20 billion deal to buy Figma Inc., announced Tuesday that it has provisionally found the proposed acquisition would likely harm the digital design sector in the U.K. In a statement, the agency now noted that its investigation found that around 80% of the professional product design market use Figma's software. The CMA said it provisionally found that the deal would eliminate competition between two main competitors in the software markets of product design, image editing, and illustration. | 1 |
577 | 59,067 | 2023-11-27 00:00:00 UTC | Price-sensitive US shoppers nab early 'Cyber Monday' deals | ADBE | https://www.nasdaq.com/articles/price-sensitive-us-shoppers-nab-early-cyber-monday-deals-0 | null | null | Adds details on sales estimates, advertising, links to related stories and graphics
Nov 27 (Reuters) - After a busy holiday shopping weekend, discount seekers are expected to spend between $12 billion and $12.4 billion on beauty products, electronics, toys and apparel on Cyber Monday, according to Adobe Analytics.
Heavy online traffic and transactions could add up to a boost in sales by U.S. shoppers of 5.4% or more, according to Adobe. Shoppers spent $10.3 billion in the weekend leading up to Cyber Monday, up 7.7% from last year as retailers offered more discounts compared to last year.
Retailers were set to dangle average price cuts of 30% on electronics, and 19% on furniture. "We are seeing very strong discounts," said Vivek Pandya, lead analyst at Adobe Digital Insights, which tracks data through Adobe's Experience Cloud service for e-commerce platforms.
More merchandise was being discounted in the weekend leading up to Cyber Monday, according to a report from LSEG.
Amazon AMZN.O began marketing its Cyber Monday Deals as early as Saturday, including up to 46% off some Instant Pot kitchen appliances, 37% off certain Vitamix blenders, and 35% on Amazon devices including a 55-inch Amazon Fire TV.
Walmart WMT.N, eager to capture market share, slashed prices on Sunday night, joining the trend of retailers' early discounts on major shopping days.
Retailers leaned on push notifications, text messages and video streaming ads more this year to reach shoppers, growing the use of digital marketing 56% compared to last year, according to data from Salesforce.
More than half of purchases online on Monday are likely to be made on mobile devices, according to Adobe, which says it has a window into transaction data at 85% of the top 100 internet retailers. This holiday season, mobile-phone transactions may for the first time overtake purchases made from desktop computers, it said.
Last-minute shoppers on Monday could spend $4 billion between 6 p.m. and 11 p.m. ET alone, Pandya said, "because consumers are going to be concerned about discounts weakening after that."
Pandya said he would watch whether holiday season shoppers on Monday would continue "downshifting to cheaper goods" in categories, a pattern he noticed earlier this year.
"Because people are getting gifts for other people, they seem to stretch a little more, and splurge," he said, and retailers' steep discounts may make it possible for them to avoid "substituting cheaper items."
TJ Maxx, Ross, Walmart and Costco COST.Oare expected to be "holiday winners" as shoppers look for deep discounts, Jharonne Martis, director of consumer research, analytics and AI at LSEG said in a Monday note.
Many "retailers have really pulled back on their inventory levels, to preserve capital and increase margins," said Rob Garf, vice president and general manager for retail at Salesforce, which tracks data flowing through its Commerce Cloud e-commerce service.
"The risk consumers take at this point for waiting too long is that a product may not be available when they go to buy it," Garf said.
Cyber Monday online sales over the years https://tmsnrt.rs/46NJ19L
GRAPHIC-Cyber Monday online sales over the years https://tmsnrt.rs/3uFpRoN
US holiday online sales expected to gain pace this year https://tmsnrt.rs/3QQ3DIl
Shoppers click 'buy' as retailers slash prices ahead of Cyber Monday
Price-sensitive US shoppers nab early 'Cyber Monday' deals
'A lot quieter' Black Friday brings out discount hunters
(Reporting by Vanessa O'Connell; Editing by David Gregorio and Nick Zieminski)
((Vanessa.OConnell@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. | Walmart WMT.N, eager to capture market share, slashed prices on Sunday night, joining the trend of retailers' early discounts on major shopping days. Pandya said he would watch whether holiday season shoppers on Monday would continue "downshifting to cheaper goods" in categories, a pattern he noticed earlier this year. TJ Maxx, Ross, Walmart and Costco COST.Oare expected to be "holiday winners" as shoppers look for deep discounts, Jharonne Martis, director of consumer research, analytics and AI at LSEG said in a Monday note. | Adds details on sales estimates, advertising, links to related stories and graphics Nov 27 (Reuters) - After a busy holiday shopping weekend, discount seekers are expected to spend between $12 billion and $12.4 billion on beauty products, electronics, toys and apparel on Cyber Monday, according to Adobe Analytics. "We are seeing very strong discounts," said Vivek Pandya, lead analyst at Adobe Digital Insights, which tracks data through Adobe's Experience Cloud service for e-commerce platforms. Cyber Monday online sales over the years https://tmsnrt.rs/46NJ19L GRAPHIC-Cyber Monday online sales over the years https://tmsnrt.rs/3uFpRoN US holiday online sales expected to gain pace this year https://tmsnrt.rs/3QQ3DIl Shoppers click 'buy' as retailers slash prices ahead of Cyber Monday Price-sensitive US shoppers nab early 'Cyber Monday' deals 'A lot quieter' Black Friday brings out discount hunters (Reporting by Vanessa O'Connell; Editing by David Gregorio and Nick Zieminski) ((Vanessa.OConnell@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. | Adds details on sales estimates, advertising, links to related stories and graphics Nov 27 (Reuters) - After a busy holiday shopping weekend, discount seekers are expected to spend between $12 billion and $12.4 billion on beauty products, electronics, toys and apparel on Cyber Monday, according to Adobe Analytics. Shoppers spent $10.3 billion in the weekend leading up to Cyber Monday, up 7.7% from last year as retailers offered more discounts compared to last year. Cyber Monday online sales over the years https://tmsnrt.rs/46NJ19L GRAPHIC-Cyber Monday online sales over the years https://tmsnrt.rs/3uFpRoN US holiday online sales expected to gain pace this year https://tmsnrt.rs/3QQ3DIl Shoppers click 'buy' as retailers slash prices ahead of Cyber Monday Price-sensitive US shoppers nab early 'Cyber Monday' deals 'A lot quieter' Black Friday brings out discount hunters (Reporting by Vanessa O'Connell; Editing by David Gregorio and Nick Zieminski) ((Vanessa.OConnell@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. | Shoppers spent $10.3 billion in the weekend leading up to Cyber Monday, up 7.7% from last year as retailers offered more discounts compared to last year. More merchandise was being discounted in the weekend leading up to Cyber Monday, according to a report from LSEG. More than half of purchases online on Monday are likely to be made on mobile devices, according to Adobe, which says it has a window into transaction data at 85% of the top 100 internet retailers. | 3 |
578 | 59,075 | 2023-11-26 00:00:00 UTC | Guru Fundamental Report for ADBE | ADBE | https://www.nasdaq.com/articles/guru-fundamental-report-for-adbe-72 | null | null | Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE 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.
ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming 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 ADOBE INC
ADBE Guru Analysis
ADBE 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. | ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for ADOBE INC (ADBE). ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. | 4 |
579 | 59,079 | 2023-11-24 00:00:00 UTC | Watts Water (WTS) Surges 33% YTD: Will the Upward Trend Last? | ADBE | https://www.nasdaq.com/articles/watts-water-wts-surges-33-ytd%3A-will-the-upward-trend-last | null | null | Watts Water Technologies WTS is witnessing strong momentum this year so far. The stock has surged 33.3% year to date compared with the sub-industry’s and S&P Composite’s growth of 20.2% and 19.7%, respectively.
With healthy fundamentals and strong growth opportunities, this Zacks Rank #2 (Buy) stock appears to be a solid investment option at the moment.
WTS designs, manufactures and sells various water safety and flow control products for the water quality, water conservation, water safety and water flow control markets.
Image Source: Zacks Investment Research
Catalysts Driving Growth
WTS is likely to benefit from continued investment in smart and connected products, which are expected to provide further differentiation in the marketplace. Watts Water is focused on enhancing organic growth via new product introductions, driving margin expansion and reinvesting in productivity initiatives.
Strength in sales of nonresidential core valve products is driving revenues from the Americas region. In the last reported quarter, organic sales from the region increased 1% despite tougher year-over-year comparisons.
Strong momentum in the Asia-Pacific region and healthy growth in Europe are additional tailwinds. In the last reported quarter, sales from Asia-Pacific, the Middle East and Africa reported a 33% improvement to $33 million. In Europe, net sales were up 6% year over year to $120 million including a favorable foreign exchange impact of 7%.
Management raised its adjusted operating margin outlook for 2023, driven by strong third-quarter results. For 2023, adjusted operating margin is now estimated to be between 17.6% and 17.7% compared with the previous guidance of 16.7-17.3%.
The company’s healthy balance sheet and strong cash flow generating ability are expected to help it sustain a solid capital allocation strategy.
For the nine months that ended Sep 24, 2023, Watts Water generated $200.9 million of cash from operating activities compared with $86.3 million in the prior year. Free cash flow was $181.9 million compared with $67 million a year ago. The increase was due to higher net income and reduced working capital investment. WTS repurchased 22,000 shares for $4 million in the third quarter. For the first nine months of 2023, the company repurchased 69,000 shares worth $11.7 million.
As of Sep 24, 2023, the company had $362.7 million in cash and cash equivalents with $98.2 million of long-term debt compared with the respective figures of $291.9 million and $98 million as of Jun 25, 2023.
Strategic Acquisitions
Acquisitions are also likely to play a pivotal growth in business expansion. In October 2023, the company acquired Bradley Corporation for $303 million.
Bradley Corporation’s high-quality and code-driven products are anticipated to complement WTS' existing portfolio and enable the provision of innovative water solutions. Both companies aim to leverage their combined sales networks for cross-selling opportunities and accelerated growth. Also, the buyout strategically broadens the company’s reach in commercial and industrial markets, aligning with long-term trends such as water conservation, safety, regulation and energy efficiency.
In April 2023, Watts Water completed the acquisition of Enware Australia to expand its global footprint. With this, Australia and New Zealand now represent more than half of the APMEA region revenues, noted WTS.
A Few Headwinds
Owing to tougher year over year comps, WTS expects fourth quarter organic sales to be lower than the prior year.
Performance in Europe in the fourth quarter is likely to be affected due to weakness in macroeconomic conditions. Also, rising interest rates and tight lending scenario on new construction are concerns.
Continuing softness in certain specialty channel products like gas connectors, radiant heating applications and commercial marine instrumentation is likely to weigh on the revenue performance of Americas region.
A Look at Estimates
Watts Water’s earnings per share (EPS) are expected to rise 12.2% and 3.9% on a year-over-year basis to $8.00 and $8.31 in 2023 and 2024, respectively.
The Zacks Consensus Estimate for 2023 and 2024 earnings has gained 2.8% and 3.7%, respectively, in the past 60 days, reflecting analysts’ optimism.
Revenues are projected to improve 3% and 10% to $2.04 billion and $2.24 billion for 2023 and 2024, respectively.
Other Stocks to Consider
Some other top-ranked stocks worth consideration in the broader technology space are Adobe ADBE, Synopsys SNPS and Woodward WWD, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The Zacks Consensus Estimate for Adobe’s fiscal 2023 EPS has inched up by 0.1% in the past 60 days to $15.93. ADBE’s long-term earnings growth rate is 13.5%.
Adobe’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 3.3%. Shares of ADBE have surged 85.4% in the past year.
The Zacks Consensus Estimate for Synopsys’ fiscal 2024 EPS has remained flat in the past 30 days at $12.52. SNPS’ long-term earnings growth rate is 16.7%. Shares of SNPS have gained 62.6% in the past year.
The Zacks Consensus Estimate for Woodward’s fiscal 2024 EPS has improved 3.1% in the past 60 days to $4.66.
WWD’s earnings outpaced the Zacks Consensus Estimate in three of the last four quarters and missed once, the average surprise being 14.7%. Shares of WWD have jumped 33.9% in the past 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. | Other Stocks to Consider Some other top-ranked stocks worth consideration in the broader technology space are Adobe ADBE, Synopsys SNPS and Woodward WWD, each carrying a Zacks Rank #2. ADBE’s long-term earnings growth rate is 13.5%. Shares of ADBE have surged 85.4% in the past year. | Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report Synopsys, Inc. (SNPS) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report Woodward, Inc. (WWD) : Free Stock Analysis Report To read this article on Zacks.com click here. Other Stocks to Consider Some other top-ranked stocks worth consideration in the broader technology space are Adobe ADBE, Synopsys SNPS and Woodward WWD, each carrying a Zacks Rank #2. ADBE’s long-term earnings growth rate is 13.5%. | Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report Synopsys, Inc. (SNPS) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report Woodward, Inc. (WWD) : Free Stock Analysis Report To read this article on Zacks.com click here. Other Stocks to Consider Some other top-ranked stocks worth consideration in the broader technology space are Adobe ADBE, Synopsys SNPS and Woodward WWD, each carrying a Zacks Rank #2. ADBE’s long-term earnings growth rate is 13.5%. | Other Stocks to Consider Some other top-ranked stocks worth consideration in the broader technology space are Adobe ADBE, Synopsys SNPS and Woodward WWD, each carrying a Zacks Rank #2. ADBE’s long-term earnings growth rate is 13.5%. Shares of ADBE have surged 85.4% in the past year. | 4 |
580 | 59,080 | 2023-11-23 00:00:00 UTC | Guru Fundamental Report for ADBE | ADBE | https://www.nasdaq.com/articles/guru-fundamental-report-for-adbe-71 | null | null | Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE 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.
ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming 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 ADOBE INC
ADBE Guru Analysis
ADBE 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
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
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. | ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for ADOBE INC (ADBE). ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. | 5 |
581 | 59,083 | 2023-11-22 00:00:00 UTC | Autodesk (ADSK) Q3 Earnings and Sales Surpass Expectations | ADBE | https://www.nasdaq.com/articles/autodesk-adsk-q3-earnings-and-sales-surpass-expectations | null | null | Autodesk ADSK reported third-quarter fiscal 2024 non-GAAP earnings of $2.07 per share, which beat the Zacks Consensus Estimate by 4.02% and improved 21.8% year over year.
The company reported revenues of $1.41 billion, which beat the consensus mark by 1.89%. The figure grew 10.5% year over year. The upside was driven by steady subscription renewal rates, new business growth and strong competitive performance.
Autodesk, Inc. Price, Consensus and EPS Surprise
Autodesk, Inc. price-consensus-eps-surprise-chart | Autodesk, Inc. Quote
Top-Line Details
Autodesk’s subscription revenues (92.9% of total revenues) increased 10.6% year over year to $1.31 billion. Maintenance revenues (0.8% of total revenues) declined to $12 million compared with $16 million in the year-ago quarter. Other revenues (6.2% of total revenues) increased 15.8% to $88 million in the reported quarter.
Recurring revenues contributed 98% to Autodesk’s third-quarter fiscal 2024 revenues. The net revenue retention rate was within the company’s 100-110% targeted range.
Region-wise, revenues from the Americas (45.3% of revenues) increased 18.3% from the year-ago quarter’s levels to $640 million. Revenues from the EMEA, which accounted for 36.5% of revenues, climbed 8.4% to $516 million. Revenues from the Asia-Pacific (18.2% of revenues) declined 1.9% to $258 million.
Billings of $1.2 billion decreased 11% year over year in the reported quarter.
Product Top-Line Details
Autodesk offers primarily four product families — Architecture, Engineering and Construction (AEC), AutoCAD and AutoCAD LT, Manufacturing (MFG) and Media and Entertainment (M&E).
AEC (47.7% of revenues) revenues increased 17.4% year over year to $675 million. AutoCAD and AutoCAD LT (26.3% of revenues) revenues rose 5.1% to $372 million. MFG (19% of revenues) revenues increased 5.9% to $269 million. M&E (5.2% of revenues) revenues declined 6.4% to $73 million.
Operating Results
Autodesk reported a non-GAAP operating income of $547 million, up 17.6% year over year.
The non-GAAP operating margin expanded 240 basis points from the year-ago quarter’s levels to 38.7%.
Balance Sheet & Cash Flow
As of Oct 31, 2023, Autodesk had cash and cash equivalents (including marketable securities) of $1.95 billion compared with $2.07 billion as of Jan 31, 2023.
Deferred revenues increased 6% to $4.02 billion. Unbilled deferred revenues were $1.22 billion, representing an increase of $322 million from the year-ago quarter. Remaining performance obligations (RPO) increased 12% to $5.24 billion. Current RPO increased 12% to $3.52 billion.
Cash flow from operating activities was $18 million, representing a decrease of $451 million from the year-ago quarter. Free cash flow was $13 million, representing a decrease of $447 million from the year-ago quarter.
Fiscal 2024 Guidance
Autodesk projects fiscal 2024 revenues between $5,450 billion and $5,465 billion, indicating approximately 9% growth. Billings are estimated in the $5,075-$5,175 billion band, down in the range of 12-11% year over year.
Non-GAAP earnings are expected between $7.43 per share and $7.49 per share. ADSK expects non-GAAP operating margin to be flat year over year.
Free cash flow is anticipated in the $1,200-$1,260 million band.
For the fourth quarter of fiscal 2024, Autodesk expects revenues between $1,422 billion and $1,437 billion. Non-GAAP earnings are anticipated in the range of $1.91-$1.97 per share.
Zacks Rank & Key Picks
Autodesk has a Zacks Rank #4 (Sell) at present. Shares of ADSK have gained 16.5% year to date.
Some better-ranked stocks from the broader Computer and Technology sector are Adobe ADBE, Asana ASAN and Broadcom AVGO, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Adobe’s fourth-quarter fiscal 2024 earnings has remained steady at $4.13 per share in the past 30 days. For fiscal 2024, earnings estimates have remained steady at $15.93 in the past 30 days.
ADBE's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.29%. Shares of ADBE have rallied 81% year to date.
The Zacks Consensus Estimate for Asana's third-quarter 2023 loss per share is pegged at 11 cents per share in the past 30 days. For 2023, bottom-line estimates for loss have narrowed by a penny to a loss of 39 cents per share in the past 30 days.
ASAN's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 43.47%. Shares of ASAN have gained 50.8% year to date.
The Zacks Consensus Estimate for Broadcom's fourth-quarter fiscal 2024 earnings has remained unchanged for the past 30 days at $10.96 per share. For fiscal 2024, earnings estimates have remained steady at $42.14 per share in the past 30 days.
AVGO’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 1.61%. Shares of AVGO have climbed 75.5% year to date.
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. | Some better-ranked stocks from the broader Computer and Technology sector are Adobe ADBE, Asana ASAN and Broadcom AVGO, each carrying a Zacks Rank #2 (Buy) at present. ADBE's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.29%. Shares of ADBE have rallied 81% year to date. | Click to get this free report Autodesk, Inc. (ADSK) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Asana, Inc. (ASAN) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader Computer and Technology sector are Adobe ADBE, Asana ASAN and Broadcom AVGO, each carrying a Zacks Rank #2 (Buy) at present. ADBE's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.29%. | Click to get this free report Autodesk, Inc. (ADSK) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Asana, Inc. (ASAN) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader Computer and Technology sector are Adobe ADBE, Asana ASAN and Broadcom AVGO, each carrying a Zacks Rank #2 (Buy) at present. ADBE's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.29%. | Some better-ranked stocks from the broader Computer and Technology sector are Adobe ADBE, Asana ASAN and Broadcom AVGO, each carrying a Zacks Rank #2 (Buy) at present. ADBE's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.29%. Shares of ADBE have rallied 81% year to date. | 5 |
582 | 59,088 | 2023-11-21 00:00:00 UTC | Zoom (ZM) Q3 Earnings Beat, Customer Growth Drives Revenues | ADBE | https://www.nasdaq.com/articles/zoom-zm-q3-earnings-beat-customer-growth-drives-revenues | null | null | Zoom’s ZM third-quarter fiscal 2024 adjusted earnings of $1.29 per share beat the Zacks Consensus Estimate by 19.44% and increased 20.6% year over year.
Revenues of $1.13 billion beat the consensus mark by 1.66% and increased 3.2% year over year on strong growth from Enterprise customers.
Zoom Video Communications, Inc. Price, Consensus and EPS Surprise
Zoom Video Communications, Inc. price-consensus-eps-surprise-chart | Zoom Video Communications, Inc. Quote
Quarter Details
Revenues from Enterprise customers grew 7.5% year over year to $660.6 million and represented 58% of total revenues. Customers contributing more than $100,000 in revenues in the trailing 12 months grew 13.5% to 3,731. These customers accounted for 29% of revenues, up from 27% in the year-ago quarter.
The company reported a trailing 12-month net dollar expansion rate for Enterprise customers of 105%.
The number of Enterprise customers grew 5% year over year to more than 219,700.
Zoom Phone reached approximately seven million paid seats. Zoom Contact Center reached approximately 700 customers as of quarter-end, while Zoom Virtual Agent customers nearly doubled quarter over quarter. The number of customers on Zoom One bundles that include Zoom Phone grew approximately 330% year over year.
Revenues increased 5.2% in America, while international market revenues from APAC and EMEA decreased 2.2% and 1.4% year over year, respectively.
Non-GAAP Operating Details
Gross margin expanded 20 basis points (bps) to 79.7% in the fiscal third quarter of 2024.
Research and development expenses decreased 2% year over year to $105.7 million. Sales and marketing expenses decreased 5.6% to $283.8 million, while general and administrative expenses decreased 19.7% to $69.8 million.
Operating income increased 17.4% to $447.1 million year over year. Operating margin expanded 480 bps to 39.3%.
Balance Sheet
Total cash, cash equivalents and marketable securities as of Oct 31, 2023, were $6.49 billion. As of Jun 31, 2023, cash, cash equivalents and marketable securities were $6 billion.
Free cash flow as of Oct 31, 2023, was $453.2 million. As of Jul 31, 2023, free cash flow was $289.4 million.
Guidance
Zoom expects fourth-quarter fiscal 2024 revenues in the range of $1.125 billion to $1.13 billion.
Non-GAAP earnings per share are expected in the range of $1.13 to $1.15.
For fiscal 2024, Zoom expects revenues in the range of $4.506-$4.511 billion.
Non-GAAP earnings per share are expected in the range of $4.93 to $4.95.
Zacks Rank & Key Picks
Currently, Zoom carries a Zacks Rank #3 (Hold). Shares of ZM have declined 2.6% year to date.
Some better-ranked stocks from the broader Computer and Technology sector are Adobe ADBE, Asana ASAN and Broadcom AVGO, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Adobe’s fourth-quarter fiscal 2024 earnings has remained steady at $4.13 per share in the past 30 days. For fiscal 2024, earnings estimates have remained steady at $15.93 in the past 30 days.
ADBE's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.29%. Shares of ADBE have rallied 82.1% year to date.
The Zacks Consensus Estimate for Asana's third-quarter 2023 loss per share is pegged at 11 cents per share in the past 30 days. For 2023, bottom-line estimates for loss have narrowed by a penny to a loss of 39 cents per share in the past 30 days.
ASAN' earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 43.47%. Shares of ASAN have gained 58.6% year to date.
The Zacks Consensus Estimate for Broadcom's fourth-quarter fiscal 2024 earnings has remained unchanged for the past 30 days at $10.96 per share. For fiscal 2024, earnings estimates have remained steady at $42.14 per share in the past 30 days.
AVGO’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 1.61%. Shares of AVGO have climbed 78.1% year to date.
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Adobe Inc. (ADBE) : 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. | Some better-ranked stocks from the broader Computer and Technology sector are Adobe ADBE, Asana ASAN and Broadcom AVGO, each carrying a Zacks Rank #2 (Buy) at present. ADBE's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.29%. Shares of ADBE have rallied 82.1% year to date. | Some better-ranked stocks from the broader Computer and Technology sector are Adobe ADBE, Asana ASAN and Broadcom AVGO, each carrying a Zacks Rank #2 (Buy) at present. Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report Asana, Inc. (ASAN) : Free Stock Analysis Report To read this article on Zacks.com click here. ADBE's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.29%. | Click to get this free report Adobe Inc. (ADBE) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report Asana, Inc. (ASAN) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the broader Computer and Technology sector are Adobe ADBE, Asana ASAN and Broadcom AVGO, each carrying a Zacks Rank #2 (Buy) at present. ADBE's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.29%. | Some better-ranked stocks from the broader Computer and Technology sector are Adobe ADBE, Asana ASAN and Broadcom AVGO, each carrying a Zacks Rank #2 (Buy) at present. ADBE's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.29%. Shares of ADBE have rallied 82.1% year to date. | 5 |
583 | 59,093 | 2023-11-20 00:00:00 UTC | Buy-and-Hold Investors Might Like QQQM | ADBE | https://www.nasdaq.com/articles/buy-and-hold-investors-might-like-qqqm | null | null | Buy-and-hold investing is a style that, in certain market settings, can invite criticism. Yet it’s one that’s served scores of investors well over the years. It’s also a style well-suited for many market participants, particularly those not seduced by market or sector timing. Investing for the long term is well-suited for those looking to embrace growth stocks. Enter the Invesco NASDAQ 100 ETF (QQQM).
QQQM, which tracks the venerable Nasdaq-100 Index (NDX), came to market just over three years ago as the buy-and-hold answer to the popular Invesco QQQ Trust (QQQ). Since then, QQQM has grown to a $15.96 billion behemoth. That has been aided by its 0.15% annual expense ratio.That is 5 basis points lower than what’s found on QQQM. Alone, that favorable fee makes QQQM relevant to long-term investors, but there’s more to the ETF’s story.
QQQM Relevant Right Now
The Nasdaq-100 is up 45% year to date. So QQQM has clearly rewarded investors that have been engaged with the ETF since the start of the year. Backed by investors’ enthusiasm for the artificial intelligence (AI) theme, QQQM could be a candidate for more long-term upside. That indicates investors would do well to hold the ETF rather than moving in and out of it based on temporary broader market whims.
Large- and megacap “stocks might struggle in the near term because many investors have already loaded up on them. But tech investors, especially those who bought earlier this year, should hold them for the long term. Many are at the center of the emergence of AI or simply stand to benefit from the continued growth of the overall software business,” reported Jacob Sonenshine for Barron’s.
Among the growth stocks recommended as solid buy-and-hold ideas in the Barron’s article is Credit Karma and TurboTax parent Intuit (NASDAQ: INTU). That stock accounts for 1.25% of the QQQM roster.
“Small-business revenue, based on a few million customers today, can grow about 16% annually for the next two years at least, according to consensus estimates. There are more than 30 million small businesses in the U.S., according to the Small Business Administration, so the growth can continue for many years. It’s Intuit’s fastest-growing segment,” according to Barron’s.
Microsoft (NASDAQ: MSFT), QQQM’s second-largest holding, and Adobe (NASDAQ: ADBE), the ETF’s fifth-largest tech component, were also mentioned by Barron’s. Those two stocks combine for 12.71% of QQQM’s portfolio.
For more news, information, and analysis, visit the ETF Education Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Microsoft (NASDAQ: MSFT), QQQM’s second-largest holding, and Adobe (NASDAQ: ADBE), the ETF’s fifth-largest tech component, were also mentioned by Barron’s. Many are at the center of the emergence of AI or simply stand to benefit from the continued growth of the overall software business,” reported Jacob Sonenshine for Barron’s. Among the growth stocks recommended as solid buy-and-hold ideas in the Barron’s article is Credit Karma and TurboTax parent Intuit (NASDAQ: INTU). | Microsoft (NASDAQ: MSFT), QQQM’s second-largest holding, and Adobe (NASDAQ: ADBE), the ETF’s fifth-largest tech component, were also mentioned by Barron’s. Enter the Invesco NASDAQ 100 ETF (QQQM). Alone, that favorable fee makes QQQM relevant to long-term investors, but there’s more to the ETF’s story. | Microsoft (NASDAQ: MSFT), QQQM’s second-largest holding, and Adobe (NASDAQ: ADBE), the ETF’s fifth-largest tech component, were also mentioned by Barron’s. QQQM, which tracks the venerable Nasdaq-100 Index (NDX), came to market just over three years ago as the buy-and-hold answer to the popular Invesco QQQ Trust (QQQ). So QQQM has clearly rewarded investors that have been engaged with the ETF since the start of the year. | Microsoft (NASDAQ: MSFT), QQQM’s second-largest holding, and Adobe (NASDAQ: ADBE), the ETF’s fifth-largest tech component, were also mentioned by Barron’s. Investing for the long term is well-suited for those looking to embrace growth stocks. So QQQM has clearly rewarded investors that have been engaged with the ETF since the start of the year. | 5 |
584 | 59,095 | 2023-11-19 00:00:00 UTC | Guru Fundamental Report for ADBE | ADBE | https://www.nasdaq.com/articles/guru-fundamental-report-for-adbe-70 | null | null | Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE 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.
ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming 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 ADOBE INC
ADBE Guru Analysis
ADBE 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. | ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for ADOBE INC (ADBE). ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. | 5 |
585 | 59,096 | 2023-11-17 00:00:00 UTC | Figma reviewing EU's objections against $20 bln Adobe buyout bid | ADBE | https://www.nasdaq.com/articles/figma-reviewing-eus-objections-against-%2420-bln-adobe-buyout-bid | null | null | Adds background throughout
Nov 17 (Reuters) - Figma said on Friday it was carefully reviewing the EU competition watchdog's statement of objections related to Photoshop maker Adobe's ADBE.O proposed $20 billion bid to buy out the cloud-based designer platform.
The EU agency had in August opened a full-scale investigation into Adobe's proposal to buy Figma, saying that it could reduce competition in global markets for interactive product design tools and shut out rivals.
Adobe's proposition comes amid heightened regulatory scrutiny around the world on Big Tech acquisitions which boost dominant companies' market power or those involving start-ups seen as nascent rivals.
The European Commission said in a statement on Friday that it has informed Adobe of its preliminary view and has conducted a wide-ranging investigation to understand the potential impact of the deal.
The transaction could create a dominant player of interactive product design tools by combining Figma, a clear market leader, and one of its largest competitors Adobe, the commission said.
San Francisco-based Figma's web-based collaborative platform for designs and brainstorming is used by tech companies such as Zoom Video Communications ZM.O, Airbnb ABNB.O and Coinbase COIN.O
Figma said it would continue to engage in constructive conversations focused on the benefits of its deal with Adobe.
Adobe's chief counsel Dana Rao told Reuters on Wednesday that the company is open to proposing remedies to resolve regulatory concerns.
Britain's competition regulator is also conducting an in-depth probe into the deal.
(Reporting by Bhanvi Satija in Bengaluru; Editing by Shilpi Majumdar)
((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91 9873062788;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds background throughout Nov 17 (Reuters) - Figma said on Friday it was carefully reviewing the EU competition watchdog's statement of objections related to Photoshop maker Adobe's ADBE.O proposed $20 billion bid to buy out the cloud-based designer platform. The EU agency had in August opened a full-scale investigation into Adobe's proposal to buy Figma, saying that it could reduce competition in global markets for interactive product design tools and shut out rivals. Adobe's proposition comes amid heightened regulatory scrutiny around the world on Big Tech acquisitions which boost dominant companies' market power or those involving start-ups seen as nascent rivals. | Adds background throughout Nov 17 (Reuters) - Figma said on Friday it was carefully reviewing the EU competition watchdog's statement of objections related to Photoshop maker Adobe's ADBE.O proposed $20 billion bid to buy out the cloud-based designer platform. The EU agency had in August opened a full-scale investigation into Adobe's proposal to buy Figma, saying that it could reduce competition in global markets for interactive product design tools and shut out rivals. Adobe's proposition comes amid heightened regulatory scrutiny around the world on Big Tech acquisitions which boost dominant companies' market power or those involving start-ups seen as nascent rivals. | Adds background throughout Nov 17 (Reuters) - Figma said on Friday it was carefully reviewing the EU competition watchdog's statement of objections related to Photoshop maker Adobe's ADBE.O proposed $20 billion bid to buy out the cloud-based designer platform. The EU agency had in August opened a full-scale investigation into Adobe's proposal to buy Figma, saying that it could reduce competition in global markets for interactive product design tools and shut out rivals. San Francisco-based Figma's web-based collaborative platform for designs and brainstorming is used by tech companies such as Zoom Video Communications ZM.O, Airbnb ABNB.O and Coinbase COIN.O Figma said it would continue to engage in constructive conversations focused on the benefits of its deal with Adobe. | Adds background throughout Nov 17 (Reuters) - Figma said on Friday it was carefully reviewing the EU competition watchdog's statement of objections related to Photoshop maker Adobe's ADBE.O proposed $20 billion bid to buy out the cloud-based designer platform. The EU agency had in August opened a full-scale investigation into Adobe's proposal to buy Figma, saying that it could reduce competition in global markets for interactive product design tools and shut out rivals. Adobe's proposition comes amid heightened regulatory scrutiny around the world on Big Tech acquisitions which boost dominant companies' market power or those involving start-ups seen as nascent rivals. | 4 |
586 | 59,098 | 2023-11-16 00:00:00 UTC | Guru Fundamental Report for ADBE | ADBE | https://www.nasdaq.com/articles/guru-fundamental-report-for-adbe-69 | null | null | Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE 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.
ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming 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 ADOBE INC
ADBE Guru Analysis
ADBE 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
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
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. | ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for ADOBE INC (ADBE). ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. | null |
587 | 59,101 | 2023-11-15 00:00:00 UTC | Notable Wednesday Option Activity: UPST, ADBE, GME | ADBE | https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-upst-adbe-gme | null | null | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Upstart Holdings Inc (Symbol: UPST), where a total of 88,487 contracts have traded so far, representing approximately 8.8 million underlying shares. That amounts to about 127.1% of UPST's average daily trading volume over the past month of 7.0 million shares. Particularly high volume was seen for the $28 strike call option expiring November 17, 2023, with 6,152 contracts trading so far today, representing approximately 615,200 underlying shares of UPST. Below is a chart showing UPST's trailing twelve month trading history, with the $28 strike highlighted in orange:
Adobe Inc (Symbol: ADBE) saw options trading volume of 30,920 contracts, representing approximately 3.1 million underlying shares or approximately 115.1% of ADBE's average daily trading volume over the past month, of 2.7 million shares. Particularly high volume was seen for the $590 strike put option expiring November 17, 2023, with 1,413 contracts trading so far today, representing approximately 141,300 underlying shares of ADBE. Below is a chart showing ADBE's trailing twelve month trading history, with the $590 strike highlighted in orange:
And GameStop Corp (Symbol: GME) options are showing a volume of 35,777 contracts thus far today. That number of contracts represents approximately 3.6 million underlying shares, working out to a sizeable 107% of GME's average daily trading volume over the past month, of 3.3 million shares. Especially high volume was seen for the $13.50 strike call option expiring November 17, 2023, with 4,723 contracts trading so far today, representing approximately 472,300 underlying shares of GME. Below is a chart showing GME's trailing twelve month trading history, with the $13.50 strike highlighted in orange:
For the various different available expirations for UPST options, ADBE options, or GME options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
ATOS Options Chain
ABG Price Target
ELUT Next Earnings Date
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $590 strike put option expiring November 17, 2023, with 1,413 contracts trading so far today, representing approximately 141,300 underlying shares of ADBE. Below is a chart showing UPST's trailing twelve month trading history, with the $28 strike highlighted in orange: Adobe Inc (Symbol: ADBE) saw options trading volume of 30,920 contracts, representing approximately 3.1 million underlying shares or approximately 115.1% of ADBE's average daily trading volume over the past month, of 2.7 million shares. Below is a chart showing ADBE's trailing twelve month trading history, with the $590 strike highlighted in orange: And GameStop Corp (Symbol: GME) options are showing a volume of 35,777 contracts thus far today. | Below is a chart showing UPST's trailing twelve month trading history, with the $28 strike highlighted in orange: Adobe Inc (Symbol: ADBE) saw options trading volume of 30,920 contracts, representing approximately 3.1 million underlying shares or approximately 115.1% of ADBE's average daily trading volume over the past month, of 2.7 million shares. Below is a chart showing ADBE's trailing twelve month trading history, with the $590 strike highlighted in orange: And GameStop Corp (Symbol: GME) options are showing a volume of 35,777 contracts thus far today. Particularly high volume was seen for the $590 strike put option expiring November 17, 2023, with 1,413 contracts trading so far today, representing approximately 141,300 underlying shares of ADBE. | Below is a chart showing UPST's trailing twelve month trading history, with the $28 strike highlighted in orange: Adobe Inc (Symbol: ADBE) saw options trading volume of 30,920 contracts, representing approximately 3.1 million underlying shares or approximately 115.1% of ADBE's average daily trading volume over the past month, of 2.7 million shares. Below is a chart showing GME's trailing twelve month trading history, with the $13.50 strike highlighted in orange: For the various different available expirations for UPST options, ADBE options, or GME options, visit StockOptionsChannel.com. Particularly high volume was seen for the $590 strike put option expiring November 17, 2023, with 1,413 contracts trading so far today, representing approximately 141,300 underlying shares of ADBE. | Below is a chart showing UPST's trailing twelve month trading history, with the $28 strike highlighted in orange: Adobe Inc (Symbol: ADBE) saw options trading volume of 30,920 contracts, representing approximately 3.1 million underlying shares or approximately 115.1% of ADBE's average daily trading volume over the past month, of 2.7 million shares. Below is a chart showing GME's trailing twelve month trading history, with the $13.50 strike highlighted in orange: For the various different available expirations for UPST options, ADBE options, or GME options, visit StockOptionsChannel.com. Particularly high volume was seen for the $590 strike put option expiring November 17, 2023, with 1,413 contracts trading so far today, representing approximately 141,300 underlying shares of ADBE. | null |
588 | 59,113 | 2023-11-14 00:00:00 UTC | ADBE Quantitative Stock Analysis | ADBE | https://www.nasdaq.com/articles/adbe-quantitative-stock-analysis-12 | null | null | Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE 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.
ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming 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 ADOBE INC
ADBE Guru Analysis
ADBE 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
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
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. | ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for ADOBE INC (ADBE). ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. | null |
589 | 59,116 | 2023-11-13 00:00:00 UTC | Alphabet (GOOGL) Boosts Search Business With Latest Expansion | ADBE | https://www.nasdaq.com/articles/alphabet-googl-boosts-search-business-with-latest-expansion | null | null | Alphabet’s GOOGL Google is leaving no stone unturned to expand its presence in the generative AI space on the heels of search capabilities.
This is evident from Google’s recent expansion of its AI-powered Search Generative Experience (SGE) across 120 countries in a bid to boost its AI-powered conversational search feature globally.
Notably, Google’s new announcement comes with feature updates like supporting four additional languages, namely Spanish, Portuguese, Korean and Indonesian.
Additionally, Google announced several other SGE updates, enabling users to ask follow-up questions directly on search results pages and allowing them to view prior queries, search results and search ads in dedicated slots.
Further, it will also allow users to select the appropriate meaning for phrases with multiple possible meanings and specify the gender for a specific word.
These endeavors will likely boost traffic on the company’s search platform.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growth Prospects
Google remains well poised to capitalize on the immense prospects present in the booming generative AI market.
Per a Fortune Business Insights report, the global generative AI market size is expected to hit $43.87 billion in 2023 and reach $667.96 billion by 2030, witnessing a CAGR of 47.5% between 2023 and 2030.
Strength in the promising generative AI market will likely aid Alphabet to strengthen its overall financial performance in the upcoming period and instill investor optimism in the stock.
The Zacks Consensus Estimate for 2023 total revenues stands at $254.67 billion, indicating growth of 8.9% from 2022.
Notably, Alphabet has gained 50.3% on a year-to-date basis compared with the industry’s growth of 48.9%.
Moreover, the latest announcement is in sync with Alphabet’s growing focus on strengthening its search business.
Apart from the underlined efforts, Google recently introduced new updates to SGE, namely alternate drafts and image generation, enabling the output of various writing types and allowing users to specify image types and receive four results in a conversational experience, which can be downloaded as .png files or edited.
Additionally, Google enhanced several other SGE capabilities, including AI-powered summaries, term definitions, coding improvements, and travel and product search features, among other things.
All these initiatives will likely aid the performance of the company’s search business.
In the third-quarter 2023, search revenues from Google-owned sites increased 11.3% year over year to $44.03 billion. The Zacks Consensus Estimate for fourth-quarter 2023 Google Search revenues is pegged at $47.7 billion, indicating growth of 12% from the year-ago quarter.
Stiff Competition
The latest move is likely to aid this Zacks Rank #3 (Hold) company to strengthen its competitive position against some notable industry players like Microsoft MSFT, Meta Platforms META and Adobe ADBE, which are also making continuous efforts to enhance their customer base for generative AI-powered products and services.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Microsoft is riding on the success of OpenAI’s AI-powered chatbot experience, Bing Chat.
Notably, it unveiled a new feature in Bing Chat, allowing users to export AI-generated data to Excel for easier access.
Moreover, Microsoft introduced a “rewrite” button in Bing, which allows users to edit a message in a conversation instead of copying and editing manually.
Meanwhile, Adobe is enjoying the growing momentum of its AI image generator, Adobe Firefly.
Further, it unveiled AI-powered Generative Fill, Text to Template, Translate, and Drawing and Painting features in Adobe Express, accelerating "Creativity for All" by making it fast, easy and fun for all skill levels.
Meta Platforms, on the other hand, launched an open-source AI tool called "AudioCraft," which can generate music and audio based on text prompts using three models.
Further, its release of CM3leon, a multimodal model that performs both text-to-image and image-to-text generation, remains noteworthy.
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Adobe Inc. (ADBE) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stiff Competition The latest move is likely to aid this Zacks Rank #3 (Hold) company to strengthen its competitive position against some notable industry players like Microsoft MSFT, Meta Platforms META and Adobe ADBE, which are also making continuous efforts to enhance their customer base for generative AI-powered products and services. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : 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. Strength in the promising generative AI market will likely aid Alphabet to strengthen its overall financial performance in the upcoming period and instill investor optimism in the stock. | Stiff Competition The latest move is likely to aid this Zacks Rank #3 (Hold) company to strengthen its competitive position against some notable industry players like Microsoft MSFT, Meta Platforms META and Adobe ADBE, which are also making continuous efforts to enhance their customer base for generative AI-powered products and services. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : 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. Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Growth Prospects Google remains well poised to capitalize on the immense prospects present in the booming generative AI market. | Stiff Competition The latest move is likely to aid this Zacks Rank #3 (Hold) company to strengthen its competitive position against some notable industry players like Microsoft MSFT, Meta Platforms META and Adobe ADBE, which are also making continuous efforts to enhance their customer base for generative AI-powered products and services. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : 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. This is evident from Google’s recent expansion of its AI-powered Search Generative Experience (SGE) across 120 countries in a bid to boost its AI-powered conversational search feature globally. | Stiff Competition The latest move is likely to aid this Zacks Rank #3 (Hold) company to strengthen its competitive position against some notable industry players like Microsoft MSFT, Meta Platforms META and Adobe ADBE, which are also making continuous efforts to enhance their customer base for generative AI-powered products and services. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : 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. Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Growth Prospects Google remains well poised to capitalize on the immense prospects present in the booming generative AI market. | null |
590 | 59,118 | 2023-11-12 00:00:00 UTC | Guru Fundamental Report for ADBE | ADBE | https://www.nasdaq.com/articles/guru-fundamental-report-for-adbe-68 | null | null | Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE 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.
ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming 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 ADOBE INC
ADBE Guru Analysis
ADBE 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
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
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. | ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for ADOBE INC (ADBE). ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. | 5 |
591 | 59,123 | 2023-11-10 00:00:00 UTC | Validea Detailed Fundamental Analysis - ADBE | ADBE | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-adbe-18 | null | null | Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE 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.
ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming 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 ADOBE INC
ADBE Guru Analysis
ADBE 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
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
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. | ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for ADOBE INC (ADBE). ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. | null |
592 | 59,129 | 2023-11-09 00:00:00 UTC | Guru Fundamental Report for ADBE | ADBE | https://www.nasdaq.com/articles/guru-fundamental-report-for-adbe-67 | null | null | Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE 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.
ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming 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 ADOBE INC
ADBE Guru Analysis
ADBE 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
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
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. | ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for ADOBE INC (ADBE). ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. | null |
593 | 59,132 | 2023-11-08 00:00:00 UTC | ADBE Factor-Based Stock Analysis | ADBE | https://www.nasdaq.com/articles/adbe-factor-based-stock-analysis-13 | null | null | Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE 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.
ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming 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 ADOBE INC
ADBE Guru Analysis
ADBE 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
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
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. | ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for ADOBE INC (ADBE). ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. | null |
594 | 59,134 | 2023-11-07 00:00:00 UTC | Adobe (NASDAQ:ADBE): Analysts Like This Momentum-Fueled Stock | ADBE | https://www.nasdaq.com/articles/adobe-nasdaq%3Aadbe%3A-analysts-like-this-momentum-fueled-stock | null | null | When analysts overwhelmingly favor a particular company, this sends a clear signal to investors. Adobe (NASDAQ:ADBE) is well-liked among the analyst community, and I am bullish on ADBE stock, even if it seems expensive when you first look at it.
California-based Adobe provides document, image, and security software, as well as other products (Photoshop is one of its most famous products). Notably, the company has a terrific track record of quarterly EPS beats, and 2023's third quarter was quite strong for Adobe, as the company earned $4.09 per share versus the ambitious consensus estimate of $3.98 per share.
As with any other stock, a bearish argument could be built around ADBE stock. After all, every company has its share of challenges. Nevertheless, Adobe's problems don't appear to be overwhelming, and even value-focused investors might choose to set their objections aside and consider taking a share position in Adobe.
Why Some Investors Might Have a Problem with Adobe
Using a popular valuation metric, some skeptics may conclude that ADBE stock is overpriced now. Specifically, Adobe's GAAP trailing 12-month price-to-earnings (P/E) ratio of around 51x is more than double the sector median P/E ratio of 24x.
Furthermore, Adobe's stock chart clearly shows that it's right near a 52-week high. Bear in mind, though, that sometimes, a highly-profitable business can continue to punish short sellers for a very long time.
Another perceived problem is that the U.K.'s regulatory entity, the Competition and Markets Authority (CMA), is investigating Adobe’s proposed $20 billion acquisition of Figma. In summary, Figma is a collaborative design tool and it would fit neatly into Adobe's suite of software tools.
On the other hand, Adobe has thrived without Figma for a long time, as the company's earnings beats demonstrate. Just think of Figma as the icing on the cake for Adobe. If the acquisition gets approved, that's great. If not, it's not the end of the world for Adobe.
Analysts Like Adobe's AI Integration and More
In 2023, every technology company has to integrate artificial intelligence (AI) into its products. Okay, maybe it's not the law, but it's an unwritten rule imposed by an unforgiving market.
Adobe is complying with this unwritten rule. For example, the company recently unveiled an object-aware editing engine called Project Stardust. What's special about this product is that it uses generative AI to enhance the image-editing process.
Other than that, Adobe has a "family of creative generative AI models" called Firefly. RBC Capital analyst Matthew Swanson specifically cited Firefly, along with Adobe's strategic road map for generative AI generally, when he published an Outperform rating and $615 price target on ADBE stock not long ago.
Swanson expects Adobe's deployment of generative AI to be more of a 2024-to-2025 benefit for the company. Still, the RBC Capital analyst anticipates that Q4 will be another “really strong quarter” for Adobe.
Meanwhile, DA Davidson upgraded Adobe shares from Neutral to Buy and lifted its price target on the stock from $500 to $640. That's a big price hike, but DA Davidson backed it up by citing Adobe's “robust and predictable revenue streams, sustainable competitive advantage, exceptional financials, a powerful brand, and a shareholder-oriented management team.”
Additionally, Oppenheimer analysts upgraded ADBE stock from Perform (equivalent to a Hold rating) to Outperform and assigned the stock a very ambitious $660 price target. As you might expect, the Oppenheimer analysts noted Adobe's top position in the gen-AI software opportunity; patient Adobe investors will, they believe, be rewarded through the year's end and into the next fiscal year.
Is ADBE Stock a Buy, According to Analysts?
On TipRanks, ADBE comes in as a Moderate Buy based on 20 Buys, seven Holds, and one Sell rating assigned by analysts in the past three months. The average Adobe stock price target is $609.85, implying 4.2% upside potential.
If you’re wondering which analyst you should follow if you want to buy and sell ADBE stock, the most profitable analyst covering the stock (on a one-year timeframe) is Derrick Wood of TD Cowen, with an average return of 28.97% per rating and a 77% success rate. Click on the image below to learn more.
Conclusion: Should You Consider ADBE Stock?
I have a funny feeling that the one analyst with a Sell rating on Adobe shares will end up changing his rating pretty soon. Adobe is a software-market winner through and through, and the company's earnings beats prove the point. Also, Adobe is making a smart move as the company integrates generative AI into its products. Therefore, I wouldn't obsess over Adobe's valuation stats too much, and I believe the stock is worth considering.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | RBC Capital analyst Matthew Swanson specifically cited Firefly, along with Adobe's strategic road map for generative AI generally, when he published an Outperform rating and $615 price target on ADBE stock not long ago. That's a big price hike, but DA Davidson backed it up by citing Adobe's “robust and predictable revenue streams, sustainable competitive advantage, exceptional financials, a powerful brand, and a shareholder-oriented management team.” Additionally, Oppenheimer analysts upgraded ADBE stock from Perform (equivalent to a Hold rating) to Outperform and assigned the stock a very ambitious $660 price target. Adobe (NASDAQ:ADBE) is well-liked among the analyst community, and I am bullish on ADBE stock, even if it seems expensive when you first look at it. | RBC Capital analyst Matthew Swanson specifically cited Firefly, along with Adobe's strategic road map for generative AI generally, when he published an Outperform rating and $615 price target on ADBE stock not long ago. That's a big price hike, but DA Davidson backed it up by citing Adobe's “robust and predictable revenue streams, sustainable competitive advantage, exceptional financials, a powerful brand, and a shareholder-oriented management team.” Additionally, Oppenheimer analysts upgraded ADBE stock from Perform (equivalent to a Hold rating) to Outperform and assigned the stock a very ambitious $660 price target. Adobe (NASDAQ:ADBE) is well-liked among the analyst community, and I am bullish on ADBE stock, even if it seems expensive when you first look at it. | RBC Capital analyst Matthew Swanson specifically cited Firefly, along with Adobe's strategic road map for generative AI generally, when he published an Outperform rating and $615 price target on ADBE stock not long ago. That's a big price hike, but DA Davidson backed it up by citing Adobe's “robust and predictable revenue streams, sustainable competitive advantage, exceptional financials, a powerful brand, and a shareholder-oriented management team.” Additionally, Oppenheimer analysts upgraded ADBE stock from Perform (equivalent to a Hold rating) to Outperform and assigned the stock a very ambitious $660 price target. Adobe (NASDAQ:ADBE) is well-liked among the analyst community, and I am bullish on ADBE stock, even if it seems expensive when you first look at it. | Is ADBE Stock a Buy, According to Analysts? Adobe (NASDAQ:ADBE) is well-liked among the analyst community, and I am bullish on ADBE stock, even if it seems expensive when you first look at it. As with any other stock, a bearish argument could be built around ADBE stock. | null |
595 | 59,141 | 2023-11-06 00:00:00 UTC | Noteworthy ETF Inflows: VUG, MA, HD, ADBE | ADBE | https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-vug-ma-hd-adbe | null | null | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Growth ETF (Symbol: VUG) where we have detected an approximate $878.3 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 328,008,639 to 331,146,831). Among the largest underlying components of VUG, in trading today Mastercard Inc (Symbol: MA) is trading flat, Home Depot Inc (Symbol: HD) is off about 0.3%, and Adobe Inc (Symbol: ADBE) is lower by about 0.3%. For a complete list of holdings, visit the VUG Holdings page » The chart below shows the one year price performance of VUG, versus its 200 day moving average:
Looking at the chart above, VUG's low point in its 52 week range is $207.94 per share, with $295.07 as the 52 week high point — that compares with a last trade of $280.87. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
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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. | Among the largest underlying components of VUG, in trading today Mastercard Inc (Symbol: MA) is trading flat, Home Depot Inc (Symbol: HD) is off about 0.3%, and Adobe Inc (Symbol: ADBE) is lower by about 0.3%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. | Among the largest underlying components of VUG, in trading today Mastercard Inc (Symbol: MA) is trading flat, Home Depot Inc (Symbol: HD) is off about 0.3%, and Adobe Inc (Symbol: ADBE) is lower by about 0.3%. For a complete list of holdings, visit the VUG Holdings page » The chart below shows the one year price performance of VUG, versus its 200 day moving average: Looking at the chart above, VUG's low point in its 52 week range is $207.94 per share, with $295.07 as the 52 week high point — that compares with a last trade of $280.87. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of VUG, in trading today Mastercard Inc (Symbol: MA) is trading flat, Home Depot Inc (Symbol: HD) is off about 0.3%, and Adobe Inc (Symbol: ADBE) is lower by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Growth ETF (Symbol: VUG) where we have detected an approximate $878.3 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 328,008,639 to 331,146,831). For a complete list of holdings, visit the VUG Holdings page » The chart below shows the one year price performance of VUG, versus its 200 day moving average: Looking at the chart above, VUG's low point in its 52 week range is $207.94 per share, with $295.07 as the 52 week high point — that compares with a last trade of $280.87. | Among the largest underlying components of VUG, in trading today Mastercard Inc (Symbol: MA) is trading flat, Home Depot Inc (Symbol: HD) is off about 0.3%, and Adobe Inc (Symbol: ADBE) is lower by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Growth ETF (Symbol: VUG) where we have detected an approximate $878.3 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 328,008,639 to 331,146,831). For a complete list of holdings, visit the VUG Holdings page » The chart below shows the one year price performance of VUG, versus its 200 day moving average: Looking at the chart above, VUG's low point in its 52 week range is $207.94 per share, with $295.07 as the 52 week high point — that compares with a last trade of $280.87. | 2 |
596 | 59,142 | 2023-11-05 00:00:00 UTC | 3 Robinhood Stocks to Buy Right Now | ADBE | https://www.nasdaq.com/articles/3-robinhood-stocks-to-buy-right-now-12 | null | null | Most investors probably wouldn't let a random stranger pick stocks for them. After all, you don't know if that stranger is qualified to make such a call!
What about a few million people, however? Would you let a crowd of investors come up with a list of prospective picks? Surprisingly (or perhaps not surprisingly), a large-enough crowd will find lots of quality stocks that could be at home in most people's portfolios.
With that premise in place, here's a closer look at three of the stocks most commonly owned by customers of no-cost trading platform Robinhood Markets. These investors are not only big fans of blue chips, as it turns out, but they also have the collective knack for ferreting out some the market's most compelling growth stories. Check them out and see if they work for you and your portfolio as well.
1. Amazon
Amazon (NASDAQ: AMZN) is the world's fourth-biggest corporation (as measured by market capitalization), reaching its enormous size by becoming the king of e-commerce. Its reach isn't as deep overseas, but it accounts for about 40% of the United States' massive e-commerce market.
The company has become so much more than a place to buy or sell goods online, though. In fact, its biggest moneymaker isn't e-commerce -- it's cloud computing, which made up more than 60% of last quarter's operating income after growing its bottom line by 29% year over year.
Given Mordor Intelligence's annualized growth expectation of more than 16% through 2028 for the global cloud computing market, look for cloud services to become an even more important profit center for Amazon.
That being said, Amazon's online shopping platform is also changing for the better. The business model is no longer serving as a middleman or online retailer. It is now an advertising platform, generating nearly $12.1 billion worth of ad revenue in the third quarter alone. That's a 26% year-over-year improvement.
And much more such growth is likely in store. Market researcher Insider Intelligence believes Amazon's ad business will be 50% bigger than it is now by 2025.
Connect the dots. The company has a lot of different things going on right now, and all of them are bullish.
2. Catalyst Pharmaceuticals
Catalyst Pharmaceuticals (NASDAQ: CPRX) isn't as popular among Robinhood's brokerage customers as Amazon is. It's not even a household name. It's one of Robinhood users' more popular biopharma picks, though, and for good reason.
Catalyst's drug portfolio doesn't consist of any blockbusters -- drugs driving at least $1 billion in annual sales. But that's kind of the point. The company's mission is to "improve the lives of those who suffer from rare diseases, often without any therapeutic options."
These markets might be relatively small, but they're also not terribly competitive. With the right scientific know-how, Catalyst can be the big fish in a little pond.
And the strategy is working. Sales are on pace to grow more than 80% this year thanks to the company's early 2023 acquisition of commercial rights to sell anti-seizure drug Fycompa.
Further boosting sales is the respectable growth of Firdapse, used to treat a neuromuscular autoimmune disorder called Lambert-Eaton myasthenic syndrome (or LEMS). And just last week, Santhera Pharmaceuticals' Agamree was approved by the Food and Drug Administration as a treatment for Duchenne muscular dystrophy. It matters to Catalyst shareholders because the biopharma now holds the rights to market this drug, too.
None of these indications are multibillion-dollar revenue opportunities. And Catalyst is clearly doing more buying than in-house drug developing; it's not the usual biopharma business model.
It's a lower-risk/high-reward approach that works for the company, though, and its shareholders. There is added value by virtue of its expertise and experience in the underserved rare-disease therapy market.
3. Adobe
Lastly, add technology name Adobe (NASDAQ: ADBE) to your list of popular stocks among Robinhood's customers you might want to scoop up for yourself.
You likely know the company as the name behind the digital image-editing software Photoshop, or its PDF file management tools. Adobe still offers and updates both, but what's dramatically changed is how it sells these solutions.
Although this software can still be purchased on a one-time basis, most of its customers now choose the subscription versions of these tools. This cloud-based software is not only portable, but always up-to-date with the latest features and fixes.
To this end, Adobe is now doing $14.6 billion worth of annualized recurring revenue. That's roughly 80% of its total yearly top line now being collected like clockwork.
That being said, it's worth noting that Adobe is so much more than PDFs and Photoshop these days. It offers a robust suite of services that most enterprises need.
For instance, its Creative Cloud platform allows users to generate images from scratch using artificial intelligence, make audio recordings, create animations, and access a large library of stock images from one single suite.
Its Experience Cloud takes aim at a slightly different sliver of the enterprise market. Companies looking to build dynamic websites, collect digital customer information, manage marketing campaigns, and more will find Adobe has something to offer.
The subscription-based model's recurring revenue typically grows at a relatively slow pace. It increases at a consistent pace even in challenging conditions, however, since access to these software suites is difficult to give up once employees begin using them. That's a big reason Adobe shares have held up so well of late when most other stocks haven't.
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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 Adobe and Amazon. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe and short January 2024 $430 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adobe Lastly, add technology name Adobe (NASDAQ: ADBE) to your list of popular stocks among Robinhood's customers you might want to scoop up for yourself. Further boosting sales is the respectable growth of Firdapse, used to treat a neuromuscular autoimmune disorder called Lambert-Eaton myasthenic syndrome (or LEMS). And just last week, Santhera Pharmaceuticals' Agamree was approved by the Food and Drug Administration as a treatment for Duchenne muscular dystrophy. | Adobe Lastly, add technology name Adobe (NASDAQ: ADBE) to your list of popular stocks among Robinhood's customers you might want to scoop up for yourself. Catalyst Pharmaceuticals Catalyst Pharmaceuticals (NASDAQ: CPRX) isn't as popular among Robinhood's brokerage customers as Amazon is. Catalyst's drug portfolio doesn't consist of any blockbusters -- drugs driving at least $1 billion in annual sales. | Adobe Lastly, add technology name Adobe (NASDAQ: ADBE) to your list of popular stocks among Robinhood's customers you might want to scoop up for yourself. Companies looking to build dynamic websites, collect digital customer information, manage marketing campaigns, and more will find Adobe has something to offer. See the 10 stocks *Stock Advisor returns as of October 30, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. | Adobe Lastly, add technology name Adobe (NASDAQ: ADBE) to your list of popular stocks among Robinhood's customers you might want to scoop up for yourself. The company has become so much more than a place to buy or sell goods online, though. It is now an advertising platform, generating nearly $12.1 billion worth of ad revenue in the third quarter alone. | 4 |
597 | 59,147 | 2023-11-03 00:00:00 UTC | Is Microsoft Stock a Buy? | ADBE | https://www.nasdaq.com/articles/is-microsoft-stock-a-buy-5 | null | null | If you've been waiting for the right time to buy Microsoft (NASDAQ: MSFT) stock, this could be your chance. A recent pullback in the tech sector has pushed shares off their 2023 highs even as the software giant reported solid earnings results for its latest quarter.
Shares still aren't particularly cheap, though, meaning you'll need to have a multiyear time horizon to maximize your chances at seeing excellent returns from here. But there are some good reasons to like Microsoft stock even at its relatively high valuation.
It's all about the cloud for Microsoft
Big parts of Microsoft's portfolio are under stress at the moment, including its hardware segment and the wider PC business. But overall sales are rising, mainly thanks to its booming cloud services division.
Cloud-based revenue was $32 billion in the fiscal Q1 selling period that ran through September, the company revealed in late October. That was good enough for a 23% increase year over year. Cloud revenue's strong growth over the last few years has made it a bigger part of the business, accounting for 56% of sales this past quarter. Large customers are looking for partners that can provide a full suite of services ranging from cybersecurity to business productivity, and Microsoft is capitalizing on that demand shift.
Microsoft is seeing profit margins rise
Microsoft is a highly efficient business thanks to several competitive advantages that make it stand out in the tech world. These include its massive global sales base, a valuable brand, and its software-as-a-service (SaaS) selling approach.
MSFT Operating Margin (TTM) data by YCharts
You can see clear evidence of those positive factors at work in the company's profit margin, which recently touched a new high above 40% of sales. Even large, well-established peers like Adobe (NASDAQ: ADBE) can't match that performance.
The performance gap is even greater when it comes to cash flow. Microsoft is producing close to $100 billion of operating cash flow annually compared to Adobe's $8 billion rate. It's no wonder, then, that the company can commit to a growing dividend payment while still spending aggressively on stock buybacks.
AI is working for Microsoft
There's a lot of hype around anything that touches artificial intelligence (AI), but in Microsoft's case, some concrete benefits reduce the risk that you're overpaying for Wall Street's exuberance. Executives said in a recent conference call that the tech is enabling dramatic improvements in models that form the foundation of many popular productivity services.
Demand for these products is rising due to the improvements, too. It's no wonder, then, that Microsoft is prioritizing aggressive spending on AI integrations. "We will continue to pursue our long-term opportunity and innovation agenda with urgency," CEO Satya Nadella said in a recent call with investors.
The best news is that the stock price doesn't seem to fully reflect all of this good news. You can own shares for about 11 times sales right now, while Adobe, another major player in the AI software space, is priced at 13 times sales. Microsoft's P/E ratio is lower, too, at 33 compared to Adobe's 47.
Sure, both valuations have room to drop if a recession develops in the tech industry. But cyclical downturns don't last long, and Microsoft is highly likely to navigate any slump without losing its prime position in the software industry. Shareholders should focus on that long-term outlook and ignore the volatility that might occur in early 2024.
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When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Microsoft wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Demitri Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe and Microsoft. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe and short January 2024 $430 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Even large, well-established peers like Adobe (NASDAQ: ADBE) can't match that performance. A recent pullback in the tech sector has pushed shares off their 2023 highs even as the software giant reported solid earnings results for its latest quarter. Large customers are looking for partners that can provide a full suite of services ranging from cybersecurity to business productivity, and Microsoft is capitalizing on that demand shift. | Even large, well-established peers like Adobe (NASDAQ: ADBE) can't match that performance. If you've been waiting for the right time to buy Microsoft (NASDAQ: MSFT) stock, this could be your chance. Microsoft is producing close to $100 billion of operating cash flow annually compared to Adobe's $8 billion rate. | Even large, well-established peers like Adobe (NASDAQ: ADBE) can't match that performance. Microsoft is seeing profit margins rise Microsoft is a highly efficient business thanks to several competitive advantages that make it stand out in the tech world. 10 stocks we like better than Microsoft When our analyst team has a stock tip, it can pay to listen. | Even large, well-established peers like Adobe (NASDAQ: ADBE) can't match that performance. But there are some good reasons to like Microsoft stock even at its relatively high valuation. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Microsoft wasn't one of them! | 2 |
598 | 59,149 | 2023-11-02 00:00:00 UTC | The 3 Best AI Stocks to Buy Now: November Edition | ADBE | https://www.nasdaq.com/articles/the-3-best-ai-stocks-to-buy-now%3A-november-edition | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Artificial intelligence (AI) has emerged as the bedrock of the Fourth Industrial Revolution. It is transforming industries like healthcare, finance, education, transportation, and entertainment. The best AI stocks are creating disruptive innovations, making them some of the most exciting investment opportunities.
Although AI is still in its infancy, it is redefining how we live and work. As businesses and consumers realize the immense benefits of AI integration, the best AI stocks have the potential for lucrative returns. According to McKinsey, over 40% of organizations plan to increase their investments in AI. As these plans take shape, AI providers are set for explosive growth.
Therefore, identifying the best AI stocks that are genuine AI beneficiaries against those riding the AI hype requires discernment. So, let’s explore three top AI stocks with strong financial fundamentals. More importantly, they have a clear vision of their artificial intelligence capabilities and are already generating revenues from the technology.
Nvidia (NVDA)
Source: sdx15 / Shutterstock.com
Nvidia (NASDAQ:NVDA) is experiencing significant revenue acceleration due to AI. Wall Street analysts estimate revenue growing 100% for this fiscal year and 46% in the next.
Despite the more than 170% year-to-date (YTD) gain, Nvidia remains a buy. Truly, Nvidia has a dominant position in AI and deep learning due to its high-performance graphics processing units (GPUs). In GPUs, the company enjoys over 80% market share, with competitors Advanced Micro Devices (NASDAQ:AMD) and Intel (NASDAQ:INTC) fighting for scraps.
In addition, it’s developed a robust underlying ecosystem which includes software tools, libraries, and frameworks like CUDA and cuDNN. These platforms are widely used by AI developers and researchers, enhancing the network effects behind their AI chips.
Seeing tremendous growth, the company has now exceeded expectations and raised guidance by a wide margin for two consecutive quarters. In Q2 of 2024, revenue surged 101% year over year (YOY) and 88% quarter over quarter (QOQ).
Consequentially, earnings growth has been even more pronounced. Since Nvidia outsources chip manufacturing, it has significant operating leverage. Gross margins in Q2 of 2024 increased to 70.1%. That’s a significant improvement from 43.5% in the prior year quarter and 64.6% in Q1 of 2024.
Based on the expected earnings growth, analysts think it is one of the best AI stocks to own. On October 2, Goldman added the stock to its conviction list. The analysts believe it’s the principal supplier to the AI gold rush, hence the $605 price target. Buy Nvidia for more than 40% upside from current levels as companies deploy complex AI models.
Microsoft (MSFT)
Source: Ascannio / Shutterstock.com
Recent Q1 of 2024 results showed Microsoft (NASDAQ:MSFT) is an AI beneficiary. It offers Azure AI, a comprehensive suite of AI tools and services, including machine learning services, cognitive services, and AI infrastructure.
As results showed, Azure is becoming the go-to ecosystem for AI development and deployment. On October 24, management reported that Azure and other cloud services grew 29% YOY in Q1 2024. Indeed, that was an acceleration from the 26% growth rate in the previous quarter.
From the results, Microsoft clearly is gaining market share from other cloud service providers. For instance, Google Cloud reported a disappointing 22% revenue growth. Yet, Microsoft’s cloud services business is larger, generating over $23 billion in quarterly revenues compared to Google Cloud’s $8.4 billion.
Besides its intelligent cloud services, Microsoft has seamlessly integrated AI capabilities into its existing products, such as Microsoft Office and Windows. The firm has launched Copilot for its customers.
“With copilots, we are making the age of AI real for people and businesses everywhere,” said Satya Nadella, CEO of Microsoft.
Microsoft is enhancing all its products through AI. For instance, by integrating Copilot into GitHub, it has improved the productivity of developers by 55%. Over 1 million developers are paying to use GitHub Copilot.
Microsoft is integrating AI in every tech stack and every product to drive productivity. Buy before the Ignite Conference, where they will introduce more than 100 products and capabilities.
Adobe (ADBE)
Source: r.classen / Shutterstock.com
Adobe (NASDAQ:ADBE) is known for its creative software products like Photoshop, Illustrator and Adobe Acrobat. Over the past year, it has incorporated AI and machine learning capabilities into its products and services.
Adobe is enhancing its creatives’ experience by integrating AI into its products. In March, it launched Adobe Firefly, which offers generative AI tools to create stunning text effects and high-quality images. Firefly supports over 100 languages and allows users to create content easily using text prompts.
And, by integrating Firefly into Photoshop and Illustrator, the company is already seeing enthusiasm from its customers. In the beta phase, ADBE has seen over three million downloads. Customers are using these game-changing capabilities in their workflows and have made over 2 billion generations.
Looking ahead, Adobe has a pipeline of innovations set to launch in the next few months. For instance, Fast Fill will enable creators to manipulate background elements and remove objects from videos easily. Other upcoming products include Stardust, Delight, and Scene Change.
Currently, TipRanks analysts see over 20% upside for Adobe. Therefore, buy one of the best free cash flow generating companies for the generative AI opportunity.
On the date of publication, Charles Munyi did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing. He has written for a wide variety of financial websites including Benzinga, The Balance and Investopedia.
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The post The 3 Best AI Stocks to Buy Now: November Edition 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. | Adobe (ADBE) Source: r.classen / Shutterstock.com Adobe (NASDAQ:ADBE) is known for its creative software products like Photoshop, Illustrator and Adobe Acrobat. In the beta phase, ADBE has seen over three million downloads. Truly, Nvidia has a dominant position in AI and deep learning due to its high-performance graphics processing units (GPUs). | Adobe (ADBE) Source: r.classen / Shutterstock.com Adobe (NASDAQ:ADBE) is known for its creative software products like Photoshop, Illustrator and Adobe Acrobat. In the beta phase, ADBE has seen over three million downloads. Nvidia (NVDA) Source: sdx15 / Shutterstock.com Nvidia (NASDAQ:NVDA) is experiencing significant revenue acceleration due to AI. | Adobe (ADBE) Source: r.classen / Shutterstock.com Adobe (NASDAQ:ADBE) is known for its creative software products like Photoshop, Illustrator and Adobe Acrobat. In the beta phase, ADBE has seen over three million downloads. Therefore, identifying the best AI stocks that are genuine AI beneficiaries against those riding the AI hype requires discernment. | Adobe (ADBE) Source: r.classen / Shutterstock.com Adobe (NASDAQ:ADBE) is known for its creative software products like Photoshop, Illustrator and Adobe Acrobat. In the beta phase, ADBE has seen over three million downloads. As results showed, Azure is becoming the go-to ecosystem for AI development and deployment. | 2 |
599 | 59,152 | 2023-11-01 00:00:00 UTC | ADBE Factor-Based Stock Analysis | ADBE | https://www.nasdaq.com/articles/adbe-factor-based-stock-analysis-12 | null | null | Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE 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.
ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming 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 ADOBE INC
ADBE Guru Analysis
ADBE Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. Below is Validea's guru fundamental report for ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of ADOBE INC ADBE Guru Analysis ADBE 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 ADOBE INC (ADBE). Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, ADBE rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for ADOBE INC (ADBE). ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. | 3 |
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