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15624.0 | 2023-05-30 00:00:00 UTC | Should You Invest in the iShares Expanded Tech Sector ETF (IGM)? | AAPL | https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-expanded-tech-sector-etf-igm-7 | The iShares Expanded Tech Sector ETF (IGM) was launched on 03/13/2001, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $3.12 billion, making it one of the larger ETFs attempting to match the performance of the Technology - Broad segment of the equity market. IGM seeks to match the performance of the S&P North American Technology Sector Index before fees and expenses.
The S&P North American Expanded Technology Sector Index comprises of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.40%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.44%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 64% of the portfolio. Telecom and Consumer Discretionary round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 8.90% of total assets, followed by Apple Inc (AAPL) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 53.01% of total assets under management.
Performance and Risk
Year-to-date, the iShares Expanded Tech Sector ETF return is roughly 33.76% so far, and was up about 14.55% over the last 12 months (as of 05/30/2023). IGM has traded between $266.47 and $374.18 in this past 52-week period.
The ETF has a beta of 1.18 and standard deviation of 27.10% for the trailing three-year period, making it a medium risk choice in the space. With about 332 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Expanded Tech Sector ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IGM is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $47.09 billion in assets, Vanguard Information Technology ETF has $50.16 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
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iShares Expanded Tech Sector ETF (IGM): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 8.90% of total assets, followed by Apple Inc (AAPL) and Amazon Com Inc (AMZN). Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $3.12 billion, making it one of the larger ETFs attempting to match the performance of the Technology - Broad segment of the equity market. | Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 8.90% of total assets, followed by Apple Inc (AAPL) and Amazon Com Inc (AMZN). The S&P North American Expanded Technology Sector Index comprises of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors. | Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 8.90% of total assets, followed by Apple Inc (AAPL) and Amazon Com Inc (AMZN). Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. | Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 8.90% of total assets, followed by Apple Inc (AAPL) and Amazon Com Inc (AMZN). Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. The iShares Expanded Tech Sector ETF (IGM) was launched on 03/13/2001, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market. |
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15630.0 | 2023-05-29 00:00:00 UTC | Like Passive Income? Buy These No-Brainer Warren Buffett Stocks | AAPL | https://www.nasdaq.com/articles/like-passive-income-buy-these-no-brainer-warren-buffett-stocks-0 | Warren Buffett has long advocated dividend stocks. Last year, his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) generated $6 billion in dividends, up roughly 20% from $5 billion in 2021. Buffett's affinity for dividend stocks reflects his preference for companies that exhibit strong fundamentals, generate consistent profits, and distribute a portion of their earnings to shareholders.
Here are three stocks that make up roughly 58% of Berkshire's portfolio and could provide you with a lifetime of passive income.
1. Apple
During Berkshire's most recent annual meeting, Buffett described Apple (NASDAQ: AAPL) as a "better business than any other we own [outright]." A sentiment like that is probably why Berkshire owns a whopping $150 billion in Apple shares, making up 46% of its stock portfolio.
The largest tech company in the world has paid and raised its dividend every year since 2012. Its current quarterly payout is $0.24 per share, generating a yield of 0.55%.
Beyond its dividend, Apple returns an extraordinary amount of capital to shareholders through share repurchases. Over the past five years, the company has lowered its split-adjusted share count from roughly 20 billion to 15.8 billion, a decrease of 21%.
This aggressive capital allocation strategy constantly removes shares from circulation, making existing shares more valuable. It recently announced the authorization of $90 billion in share repurchases in addition to its $23 billion program.
Image source: Getty Images.
If Apple stock has a downside, it's unquestionably the valuation. The price-to-earnings (P/E) ratio is roughly 29, exceeding its five-year average of 24.7. Still, the high valuation stems from its remarkable performance; it has handily beaten the S&P 500 over the past 12 months as well as the previous three, five, and 10 years.
2. Coca-Cola
Buffett hasn't bought a share of Coca-Cola (NYSE: KO) since 1994, but it remains one of his favorite investments. Here's why: In 1994, Berkshire completed its $1.3 billion investment into the company. Since then, that investment has grown to $25 billion, and Berkshire received a remarkable $704 million in 2022 solely from the dividend.
Today, Coca-Cola has a market cap of $263 billion and pays a quarterly dividend of $0.46 per share, representing a yield of roughly 3%, surpassing the S&P 500's 1.6% yield. And it has increased its dividend annually for 61 consecutive years, making it a member of the elite group of Dividend Kings.
The company consistently generates positive free cash flow, underscoring its ability to sustain those dividend payments. For 2023, management guided for $9.5 billion in free cash flow, which will cover its expected $8 billion in dividends.
As for the bear case, Coke has $28 billion in net debt (long-term debt minus cash) and is in an ongoing $3.4 billion tax dispute with the U.S. government. While management feels good about its debt position, it could become a more significant burden if high interest rates persist.
Nonetheless, Coke is an institution worldwide, and it will likely continue its dominance in the soft drink industry for the foreseeable future.
3. Kraft Heinz
Berkshire Hathaway owns roughly 26.5% of Kraft Heinz (NASDAQ: KHC) and has lost billions since it initiated the position in 2015. Still, Buffett has called the food company a "fabulous business" and hasn't sold any shares even though the stock price has fallen and the dividend has been slashed.
So, why does he still believe in Kraft Heinz? It's because the company's products are staples in most households, and it's profitable -- generating $2.4 billion in net income over the trailing 12 months. The company also pays a quarterly dividend of $0.40 per share, for an outsize yield of 4.2%.
As mentioned, Kraft Heinz cut its dividend in 2019 and hasn't raised it since, but that was necessary to pay down its debt. To management's credit, it has done precisely that, lowering its net debt from its peak of roughly $29 billion in 2019 to $19 billion.
Kraft Heinz was ahead of the curve in cutting its debt and is in a better position than companies that are just starting to shore up their balance sheets.
Are these Buffett dividend stocks buys now?
Dividend stocks have a remarkable tendency to exhibit lower volatility than growth stocks and to outperform them as well. These three Warren Buffett stocks present attractive dividend prospects and hold dominant positions within their respective industries, making them worthy additions to any long-term portfolio.
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Collin Brantmeyer has positions in Apple, Berkshire Hathaway, and SPDR S&P 500 ETF Trust. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends Kraft Heinz and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple During Berkshire's most recent annual meeting, Buffett described Apple (NASDAQ: AAPL) as a "better business than any other we own [outright]." Buffett's affinity for dividend stocks reflects his preference for companies that exhibit strong fundamentals, generate consistent profits, and distribute a portion of their earnings to shareholders. Still, Buffett has called the food company a "fabulous business" and hasn't sold any shares even though the stock price has fallen and the dividend has been slashed. | Apple During Berkshire's most recent annual meeting, Buffett described Apple (NASDAQ: AAPL) as a "better business than any other we own [outright]." Last year, his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) generated $6 billion in dividends, up roughly 20% from $5 billion in 2021. The company consistently generates positive free cash flow, underscoring its ability to sustain those dividend payments. | Apple During Berkshire's most recent annual meeting, Buffett described Apple (NASDAQ: AAPL) as a "better business than any other we own [outright]." Last year, his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) generated $6 billion in dividends, up roughly 20% from $5 billion in 2021. A sentiment like that is probably why Berkshire owns a whopping $150 billion in Apple shares, making up 46% of its stock portfolio. | Apple During Berkshire's most recent annual meeting, Buffett described Apple (NASDAQ: AAPL) as a "better business than any other we own [outright]." Last year, his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) generated $6 billion in dividends, up roughly 20% from $5 billion in 2021. A sentiment like that is probably why Berkshire owns a whopping $150 billion in Apple shares, making up 46% of its stock portfolio. |
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15637.0 | 2023-05-28 00:00:00 UTC | 2 Winning Stocks to Buy No Matter What the Market Is Doing | AAPL | https://www.nasdaq.com/articles/2-winning-stocks-to-buy-no-matter-what-the-market-is-doing-0 | Stocks can swing wildly from year to year, as investors were reminded in 2022. While investors can't control the markets, some stocks allow them to sleep well at night better than others.
Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) provide essential services people use every day, and new technologies and product development are only strengthening their long-term growth prospects. Here's why these two top stocks will continue winning for investors over the long term.
1. Microsoft
You would be hard-pressed to find a more solid investment than Microsoft. Windows and Office software are widely used in the consumer and enterprise spaces, and Microsoft has successfully migrated these products to subscription services in recent years, leading to robust growth in earnings that helped fuel the stock's performance.
Microsoft is posting balanced revenue and earnings growth despite a challenging business environment. In the most recent quarter, Office and cloud services growth drove double-digit year-over-year increases in revenue and earnings per share on a constant-currency basis.
Thanks to the company's investment in OpenAI -- the creators behind popular artificial intelligence (AI)-powered text app ChatGPT -- Microsoft is also bringing smart AI tools to its Office suite, which could drive more demand.
Another reason to consider Microsoft a solid investment for the long haul is its booming enterprise cloud services business. Microsoft Azure has soared to second place behind Amazon over the last five years. Microsoft mentioned on the lastearnings callthat it now has more than 2,500 Azure OpenAI customers using the service's advanced language models, up an impressive 10-fold over the previous quarter.
These developments make clear that advancing technology only strengthens Microsoft's competitive moat. Microsoft has the cash flows to invest in the latest technologies fueling demand for its core software services, and that's the main reason investors can rely on the stock to keep reaching new highs over time, no matter what happens in the near term.
2. Apple
The iPhone maker is another solid stock that should continue to grow in value for years to come, regardless of what happens in the markets in the near term. The stock fell in 2022, along with everything else, but has rebounded around 32% this year. Apple generates enormous amounts of cash from operations, pays a regular dividend, and has an enviable brand.
As noted by last year's dip in the stock price, Apple is not immune from market swings, but investors can count on consistent revenue every year from a loyal customer base that continues to buy more devices. This leads to consistent, robust free cash flow the company can return to shareholders through a growing dividend and share repurchases.
AAPL data by YCharts.
Apple said its installed base of devices hit another record in the most recent quarter. It entered the year with more than 2 billion devices across its customer base, up from 1.3 billion at the start of 2018. It's unsurprising that as more customers have purchased an Apple product and spent money on subscriptions and apps, Apple's free cash flow has also grown to $97 billion, or 78% higher than five years ago.
With over 2 billion active devices, you might be wondering how much more Apple can grow. It can keep growing that figure through new product releases and converting customers from competing smartphone manufacturers.
Apple is expected to finally unveil its long-rumored mixed-reality headset next month at the company's annual Worldwide Developers' Conference. While initial sales are expected to be modest at best, especially at the rumored $3,000 price point, the product could grow in importance over the long term like the Apple Watch did after its 2015 launch.
Investors should also expect Apple to find ways to wow customers with new AI features in its existing product lineup, which could convert non-Apple users to try an iPhone. After all, CEO Tim Cook credited the recent increase in the installed base to "a large number of switchers" following the iPhone 14 launch last fall.
Apple's underlying edge over competitors is brand power. And that's why Warren Buffett has sunk billions into the stock in recent years and why investors can expect Apple to keep winning for shareholders for years to come.
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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. John Ballard has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com, Apple, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) provide essential services people use every day, and new technologies and product development are only strengthening their long-term growth prospects. AAPL data by YCharts. Windows and Office software are widely used in the consumer and enterprise spaces, and Microsoft has successfully migrated these products to subscription services in recent years, leading to robust growth in earnings that helped fuel the stock's performance. | Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) provide essential services people use every day, and new technologies and product development are only strengthening their long-term growth prospects. AAPL data by YCharts. Windows and Office software are widely used in the consumer and enterprise spaces, and Microsoft has successfully migrated these products to subscription services in recent years, leading to robust growth in earnings that helped fuel the stock's performance. | Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) provide essential services people use every day, and new technologies and product development are only strengthening their long-term growth prospects. AAPL data by YCharts. Windows and Office software are widely used in the consumer and enterprise spaces, and Microsoft has successfully migrated these products to subscription services in recent years, leading to robust growth in earnings that helped fuel the stock's performance. | Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL) provide essential services people use every day, and new technologies and product development are only strengthening their long-term growth prospects. AAPL data by YCharts. Apple The iPhone maker is another solid stock that should continue to grow in value for years to come, regardless of what happens in the markets in the near term. |
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15638.0 | 2023-05-27 00:00:00 UTC | 3 Growth Stocks to Buy to Recession-Proof Your Portfolio | AAPL | https://www.nasdaq.com/articles/3-growth-stocks-to-buy-to-recession-proof-your-portfolio | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In times of economic uncertainty, it can be wise to invest in recession-proof growth stocks that have the ability to withstand downturns and offer financial stability. Ensuring a portfolio is both robust and has growth potential is crucial. This piece spotlights three exceptional growth stocks that possess these attributes, effectively safeguarding against any potential economic setbacks.
These entities exhibit remarkable performance in terms of their strong foundations, varied sources of revenue, and significant market presence. Their outstanding characteristics make them ideal stocks for steady expansion in the face of economic recessions, presenting stability and growth prospects. Whether you possess prior experience in investment or are a novice, these leading stocks for growth could act as a financial buffer, providing protection during times of economic decline. We invite you to delve deeper into these robust market competitors and understand the rationale behind their inclusion in your investment tactics.
Here are three of the best recession-proof growth stocks that I think are worth holding, despite concerns around an impending recession.
Nvidia (NVDA)
Source: sdx15 / Shutterstock.com
Nvidia’s (NASDAQ:NVDA) stock surged impressively in 2023, surpassing a $700 billion market cap, making it the fifth-largest US company. However, this rise seems unjustified. The company’s latest earnings report showed a steep drop in sales and earnings per share due to declining demand for video cards and price cuts.
AI is a buzzword in 2023, but Nvidia’s graphics cards, its main product, remain significant. It’s unwise to short-sell NVDA stock. Nvidia leads in GPU technology, having broken the 3800 MHz barrier and set to release the potent RTX 4060 Ti graphics card with 16 GB of VRAM and a 165W TDP in July. Such graphics card innovations make Nvidia a power player.
Invest in Nvidia not just for traditional valuation metrics, but for its potential leadership in next-gen GPU and AI hardware. Nvidia shines in these areas. You might consider the stock overpriced right now, so there’s no rush to buy. Yet, expect possible upward momentum. Strong companies, like Nvidia, often yield solid long-term returns.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
The stability of Apple (NASDAQ:AAPL) makes it a desirable option for traders looking for a defensive investment amid tumultuous financial circumstances. With its strong consumer brand, pricing power, and indispensable core product, Apple remains resilient irrespective of broader economic conditions. This is why it’s also a strong pick among our recession-proof growth stocks.
Apple’s strong brand enables it to set high prices, and it shows consistent financial growth. A $1,000 investment in Apple a decade ago could have netted $12,501.62 today, reflecting an annual return of 28.7%. If invested five years ago, the same amount could have grown to $3,960.5, a 31.57% return. Even amid economic challenges, a $1,000 investment made last year would have earned a 10.8% gain, thus making it one of those top growth stocks to buy.
Additionally, rising iPhone sales significantly enhanced Apple’s Q1 revenue. While the U.S. economic downturn impacted iPhone sales in the Americas, the company’s global brand recognition has helped mitigate the decline in its domestic market. Apple boasts a strong and stable business that is poised to maintain a positive outlook for the foreseeable future, which may help you recession-proof your portfolio.
Meta Platforms (META)
Source: Blue Planet Studio / Shutterstock.com
Have you explored the investment potential of Meta Platforms (NASDAQ:META) as one of the top growth stocks in the artificial intelligence sector? Meta Platforms show promising signs of making significant strides in the machine-learning market. While investing in the company is optional at this stage, keep an eye on how AI advancements drive Meta’s growth and transformation as a prominent tech powerhouse in the coming year.
META stock offers an intriguing AI proposition that you shouldn’t overlook. Meta Platforms has introduced its “AI Sandbox,” allowing select advertisers to experiment with advanced AI tools. The company plans to expand access to this suite of tools, beginning in July. Keep an eye out for embedded ads on Meta Platforms’ Facebook and Instagram apps, leveraging generative AI technology. These ads have the potential to be more personalized and dynamic, featuring responsive text and images that deliver a smarter advertising experience.
Investing in recession-proof stocks often requires discipline. In this case, investors should patiently wait for the right time to buy Meta shares. Despite potential short-term fluctuations, Meta’s focus on cost reductions and profit generation sets the stage for long-term growth. Positive sentiment on Wall Street adds to the stock’s appeal and potential upside.
On the date of publication, Chris MacDonald has a position in AAPL, META. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
The post 3 Growth Stocks to Buy to Recession-Proof Your Portfolio appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com The stability of Apple (NASDAQ:AAPL) makes it a desirable option for traders looking for a defensive investment amid tumultuous financial circumstances. On the date of publication, Chris MacDonald has a position in AAPL, META. Whether you possess prior experience in investment or are a novice, these leading stocks for growth could act as a financial buffer, providing protection during times of economic decline. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com The stability of Apple (NASDAQ:AAPL) makes it a desirable option for traders looking for a defensive investment amid tumultuous financial circumstances. On the date of publication, Chris MacDonald has a position in AAPL, META. Nvidia (NVDA) Source: sdx15 / Shutterstock.com Nvidia’s (NASDAQ:NVDA) stock surged impressively in 2023, surpassing a $700 billion market cap, making it the fifth-largest US company. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com The stability of Apple (NASDAQ:AAPL) makes it a desirable option for traders looking for a defensive investment amid tumultuous financial circumstances. On the date of publication, Chris MacDonald has a position in AAPL, META. InvestorPlace - Stock Market News, Stock Advice & Trading Tips In times of economic uncertainty, it can be wise to invest in recession-proof growth stocks that have the ability to withstand downturns and offer financial stability. | Apple (AAPL) Source: sylv1rob1 / Shutterstock.com The stability of Apple (NASDAQ:AAPL) makes it a desirable option for traders looking for a defensive investment amid tumultuous financial circumstances. On the date of publication, Chris MacDonald has a position in AAPL, META. Meta Platforms (META) Source: Blue Planet Studio / Shutterstock.com Have you explored the investment potential of Meta Platforms (NASDAQ:META) as one of the top growth stocks in the artificial intelligence sector? |
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15652.0 | 2023-05-26 00:00:00 UTC | US judge rejects challenges to Apple's $50 mln keyboard settlement | AAPL | https://www.nasdaq.com/articles/us-judge-rejects-challenges-to-apples-%2450-mln-keyboard-settlement | By Mike Scarcella
May 26 (Reuters) - A U.S. judge on Thursday approved Apple Inc's AAPL.O $50 million class-action settlement resolving consumer claims over certain defective MacBook keyboards, in a ruling that spurned challenges to the deal.
U.S. District Judge Edward Davila in San Jose, California, federal court in his ruling called the settlement "fair, adequate and reasonable."
Eleven consumers from New York, Florida, California, Michigan and several other states were the lead plaintiffs in the national class action alleging consumer protection and warranty claims.
The lawsuit accused Apple of failing to provide sufficient repairs or troubleshooting help for certain MacBook "butterfly" keyboards made between 2015 and 2019.
An Apple spokesperson on Friday did not immediately respond to a message seeking comment.
The plaintiffs' lawyers announced the deal a year ago. Apple denied any wrongdoing.
Class members will receive $50 up to $395 based on the number and nature of repairs made to a keyboard.
More than 86,000 claims for class member payments were submitted as of early March, Davila's order showed.
One challenge to the settlement said $125 — the compensation for members of one group in the class — was not enough, because keyboard repairs can cost more than $300.
"The possibility that a better settlement may have been reached — or that the benefits provided under the settlement will not make class members 'whole' — are insufficient grounds to deny approval," Davila wrote in his order.
Other challenges argued it was unfair to deny any compensation to MacBook owners who experienced keyboard failures but who did not get them repaired.
Davila said that "while not all who were purportedly injured will receive compensation, the settlement compromise benefits a significant number of individuals."
The court's ruling approved a request from the plaintiffs' lawyers for $15 million in legal fees.
Two lead plaintiffs' lawyers at Girard Sharp and Chimicles Schwartz Kriner & Donaldson-Smith in a statement said they "look forward to getting the money out to our clients."
The case is In re: MacBook Keyboard Litigation, U.S. District Court, Northern District of California, No. 5:18-cv-02813-EJD.
Apple reaches $50 mln settlement over defective MacBook keyboards https://www.reuters.com/legal/litigation/apple-reaches-50-mln-settlement-over-defective-macbook-keyboards-2022-07-19/
(Reporting by Mike Scarcella; editing by Leigh Jones)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Mike Scarcella May 26 (Reuters) - A U.S. judge on Thursday approved Apple Inc's AAPL.O $50 million class-action settlement resolving consumer claims over certain defective MacBook keyboards, in a ruling that spurned challenges to the deal. U.S. District Judge Edward Davila in San Jose, California, federal court in his ruling called the settlement "fair, adequate and reasonable." Two lead plaintiffs' lawyers at Girard Sharp and Chimicles Schwartz Kriner & Donaldson-Smith in a statement said they "look forward to getting the money out to our clients." | By Mike Scarcella May 26 (Reuters) - A U.S. judge on Thursday approved Apple Inc's AAPL.O $50 million class-action settlement resolving consumer claims over certain defective MacBook keyboards, in a ruling that spurned challenges to the deal. The case is In re: MacBook Keyboard Litigation, U.S. District Court, Northern District of California, No. Apple reaches $50 mln settlement over defective MacBook keyboards https://www.reuters.com/legal/litigation/apple-reaches-50-mln-settlement-over-defective-macbook-keyboards-2022-07-19/ (Reporting by Mike Scarcella; editing by Leigh Jones) (([email protected];)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Mike Scarcella May 26 (Reuters) - A U.S. judge on Thursday approved Apple Inc's AAPL.O $50 million class-action settlement resolving consumer claims over certain defective MacBook keyboards, in a ruling that spurned challenges to the deal. "The possibility that a better settlement may have been reached — or that the benefits provided under the settlement will not make class members 'whole' — are insufficient grounds to deny approval," Davila wrote in his order. Apple reaches $50 mln settlement over defective MacBook keyboards https://www.reuters.com/legal/litigation/apple-reaches-50-mln-settlement-over-defective-macbook-keyboards-2022-07-19/ (Reporting by Mike Scarcella; editing by Leigh Jones) (([email protected];)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Mike Scarcella May 26 (Reuters) - A U.S. judge on Thursday approved Apple Inc's AAPL.O $50 million class-action settlement resolving consumer claims over certain defective MacBook keyboards, in a ruling that spurned challenges to the deal. One challenge to the settlement said $125 — the compensation for members of one group in the class — was not enough, because keyboard repairs can cost more than $300. "The possibility that a better settlement may have been reached — or that the benefits provided under the settlement will not make class members 'whole' — are insufficient grounds to deny approval," Davila wrote in his order. |
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15678.0 | 2023-05-25 00:00:00 UTC | 1 Green Flag for Broadcom in 2023, and 1 Red Flag | AAPL | https://www.nasdaq.com/articles/1-green-flag-for-broadcom-in-2023-and-1-red-flag | Broadcom's (NASDAQ: AVGO) stock is up about 30% over the past 12 months, bucking the broader slowdown in the semiconductor market. It outperformed most of its peers because its deep diversification across the data center, networking, wireless, storage, and industrial chip markets insulated it from the post-pandemic slowdown of the PC and smartphone markets. It also diversified its business away from semiconductors with the expansion of its infrastructure software business.
Between fiscal 2017 and fiscal 2022 (which ended last October), Broadcom's revenue had a compound annual growth rate (CAGR) of 13%, while its adjusted EPS rose at a CAGR of 19%. Analysts expect its revenue and adjusted EPS to rise 7% and 10%, respectively, this year, even as the macroeconomic headwinds rattle the broader markets.
Image source: Getty Images.
Its stock looks cheap at 16 times forward earnings, and it pays a respectable forward yield of 2.7%. All those facts and figures suggest Broadcom is still worth buying at these levels. But investors should take note of two recent events -- which can be considered as a green flag and a red flag for its future -- before pressing the "sell" button.
The green flag: A new multibillion-dollar deal with Apple
Broadcom produces Wi-Fi, Bluetooth, GPS, wireless charging, and other radio frequency chips for Apple's (NASDAQ: AAPL) iPhones, iPads, and Macs. Back in 2020, Apple and Broadcom galvanized that long-term relationship with exclusive contracts that would pay the chipmaker approximately $15 billion in revenue through 2023.
However, several reports from earlier this year suggested Apple could replace Broadcom's Wi-Fi and Bluetooth combo chips with its own first-party chips by 2025. Those rumors cast dark clouds over Broadcom's future since the company relied on Apple for 20% of revenue in fiscal 2022.
But some of those clouds recently parted when Apple announced that it had inked a new multibillion-dollar agreement to purchase Broadcom's 5G radio frequency components and other wireless connectivity parts from Broadcom over the next few years.
Apple didn't specify the exact value or length of the deal (or if it includes its Wi-Fi and Bluetooth combo chips), but it allays some bearish concerns that Apple could unexpectedly replace all of Broadcom's chips with its own first-party silicon.
The red flag: The VMware deal is still stuck in the mud
To diversify its business away from Apple and the cyclical semiconductor market, Broadcom expanded its infrastructure software division with its acquisitions of CA in 2018 and Symantec's enterprise security unit in 2019. In 2022, it agreed to buy the cloud software giant VMware (NYSE: VMW) for $61 billion.
That takeover would enable Broadcom to generate about half of its revenue from infrastructure software, compared to just 29% of its revenue in fiscal 2022. But that deal still faces intense regulatory scrutiny in the U.S., the U.K., and Europe.
In March, the U.K. Competition and Markets Authority launched an investigation into the deal that will last through September. In April, the European Commission (EC) sent Broadcom a "statement of objections" to the deal, saying that it could restrict competition in certain product categories. The EC also recently extended its deadline for making a final call on that deal from June 21 to July 17.
In the United States, the Federal Trade Commission has reportedly been trying to garner enough third-party support to launch a full-blown antitrust lawsuit against Broadcom. In other words, Broadcom's planned takeover of VMware could remain in limbo for a very long time.
Which of these flags should be flown higher?
Broadcom's VMware deal faces a lot of regulatory hurdles, but that isn't all that surprising given the size of the deal. Meanwhile, Apple's big deal with Broadcom is more interesting and newsworthy -- especially since investors had been bracing for a sudden divorce between the two companies. Therefore, I believe that the green flag should fly a lot higher than the red flag.
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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 green flag: A new multibillion-dollar deal with Apple Broadcom produces Wi-Fi, Bluetooth, GPS, wireless charging, and other radio frequency chips for Apple's (NASDAQ: AAPL) iPhones, iPads, and Macs. Analysts expect its revenue and adjusted EPS to rise 7% and 10%, respectively, this year, even as the macroeconomic headwinds rattle the broader markets. The red flag: The VMware deal is still stuck in the mud To diversify its business away from Apple and the cyclical semiconductor market, Broadcom expanded its infrastructure software division with its acquisitions of CA in 2018 and Symantec's enterprise security unit in 2019. | The green flag: A new multibillion-dollar deal with Apple Broadcom produces Wi-Fi, Bluetooth, GPS, wireless charging, and other radio frequency chips for Apple's (NASDAQ: AAPL) iPhones, iPads, and Macs. However, several reports from earlier this year suggested Apple could replace Broadcom's Wi-Fi and Bluetooth combo chips with its own first-party chips by 2025. Broadcom's VMware deal faces a lot of regulatory hurdles, but that isn't all that surprising given the size of the deal. | The green flag: A new multibillion-dollar deal with Apple Broadcom produces Wi-Fi, Bluetooth, GPS, wireless charging, and other radio frequency chips for Apple's (NASDAQ: AAPL) iPhones, iPads, and Macs. Apple didn't specify the exact value or length of the deal (or if it includes its Wi-Fi and Bluetooth combo chips), but it allays some bearish concerns that Apple could unexpectedly replace all of Broadcom's chips with its own first-party silicon. The red flag: The VMware deal is still stuck in the mud To diversify its business away from Apple and the cyclical semiconductor market, Broadcom expanded its infrastructure software division with its acquisitions of CA in 2018 and Symantec's enterprise security unit in 2019. | The green flag: A new multibillion-dollar deal with Apple Broadcom produces Wi-Fi, Bluetooth, GPS, wireless charging, and other radio frequency chips for Apple's (NASDAQ: AAPL) iPhones, iPads, and Macs. That's right -- they think these 10 stocks are even better buys. The Motley Fool recommends Broadcom and VMware. |
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15695.0 | 2023-05-24 00:00:00 UTC | Why AAPL Stock Is Low-Hanging Fruit on Any Weakness | AAPL | https://www.nasdaq.com/articles/why-aapl-stock-is-low-hanging-fruit-on-any-weakness | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Big tech stocks have been on a tear so far this year, and Apple (NASDAQ:AAPL) is no exception. In fact, AAPL stock has more-or-less bounced back from its 2022 tech sell-off losses. Shares in the iPhone today are just a few dollars below their all-time high.
However, while a satisfying turn of events for AAPL investors, concerns are rising that the FAANG component has gone up too far, too fast.
In their view, after a nearly 40% move higher since the start of 2023, a pullback, or worse, a correction is due. There are several factors that, while not affecting the stock much now, could cause a reversal to happen.
But while some temporary weakness may perhaps lie ahead for Apple, don’t assume that means you need to take profit if you currently own it. If you’ve yet to buy it, this dynamic may create a golden opportunity.
AAPL Apple $171.56
AAPL Stock and Growing Pessimism
Don’t get me wrong. It’s not as if Apple shares are anywhere close to falling out of favor with the market. According to Marketbeat, out of 33 analyst ratings, 26 rate shares a “buy,” with only 5 rating it a “hold,” and 2 rating it a “sell.”
That AAPL stock is back near pre-sell off price levels is a testament to its continued popularity among investors. Still, there are several things that could soon dampen bullishness, a revenue miss for the current quarter (ending June 30), for one. At least, that’s the view of Loop Capital’s Ananda Baruah.
On May 23, the analyst downgraded AAPL from “buy” to “hold.” They cited Apple’s reduction of its iPhone shipment forecast as a sign that revenue this quarter could fall short of expectations. It’s possible this makes the market less bullish on Apple’s Augmented Reality/Virtual reality catalyst.
There is increasing uncertainty over whether this soon-to-be-unveiled product will be a moderate hit, or a massive flop. To top things off, investors could start to adopt analyst firm Bernstein’s more doubtful view of Apple’s growth prospects in non-China emerging markets like India.
Temporary Issues Don’t Change the Story
Despite these many issues that could temporarily sink AAPL stock lower, don’t assume this means middling or weak returns for shares over a longer timeframe. While possible that Apple falls short of guidance this quarter, that doesn’t mean further misses lie ahead in subsequent quarters.
Keep in mind that Apple is only starting to bounce back from the recent tech sector slowdown. Mixed results in 2023 could give way to strong numbers in 2024 and 2025, especially as the company continues to expand the reach of its Services segment. Although Services growth slowed last quarter, it could surge back in a big way as the overall economy normalizes.
Better yet, after success in subscription-based verticals like apps and music, there’s enormous potential for Apple to “disrupt the disruptors” in fintech.
Previously, I’ve talked about Apple’s move into the “buy now, pay later” (or BNPL) space. Apple could also give incumbent fintechs a run for their money in areas like payments, merchant services, and savings accounts.
Add in its strong potential to continue releasing innovative products, even if its AR/VR device flops, and it’s clear that AAPL is far from running out of growth runway.
The Takeaway
On top of these many positives, don’t forget, either, that there’s a project still in the works that later this decade could truly move the needle for this already mammoth-sized company. That would be the Apple car, or the company’s much-anticipated electric vehicle (or EV) with self-driving capabilities.
While AAPL could pull back in the latter half of 2023, growth stands to re-accelerate in the coming years. As discussed above, Apple has many opportunities it can pursue to achieve this.
Once back fully into growth mode, Apple shares are poised to snap back to its high-water mark, then onto new highs.
If you own AAPL stock today, there’s no need to make a hasty exit. If you currently do not own it, feel free to buy at current prices, but consider pouncing on it following any weakness.
AAPL stock earns a B rating in Portfolio Grader.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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The post Why AAPL Stock Is Low-Hanging Fruit on Any Weakness 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. | On May 23, the analyst downgraded AAPL from “buy” to “hold.” They cited Apple’s reduction of its iPhone shipment forecast as a sign that revenue this quarter could fall short of expectations. Add in its strong potential to continue releasing innovative products, even if its AR/VR device flops, and it’s clear that AAPL is far from running out of growth runway. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Big tech stocks have been on a tear so far this year, and Apple (NASDAQ:AAPL) is no exception. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Big tech stocks have been on a tear so far this year, and Apple (NASDAQ:AAPL) is no exception. In fact, AAPL stock has more-or-less bounced back from its 2022 tech sell-off losses. However, while a satisfying turn of events for AAPL investors, concerns are rising that the FAANG component has gone up too far, too fast. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Big tech stocks have been on a tear so far this year, and Apple (NASDAQ:AAPL) is no exception. AAPL Apple $171.56 AAPL Stock and Growing Pessimism Don’t get me wrong. According to Marketbeat, out of 33 analyst ratings, 26 rate shares a “buy,” with only 5 rating it a “hold,” and 2 rating it a “sell.” That AAPL stock is back near pre-sell off price levels is a testament to its continued popularity among investors. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Big tech stocks have been on a tear so far this year, and Apple (NASDAQ:AAPL) is no exception. If you own AAPL stock today, there’s no need to make a hasty exit. In fact, AAPL stock has more-or-less bounced back from its 2022 tech sell-off losses. |
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15709.0 | 2023-05-23 00:00:00 UTC | Bulls vs. Bears - Who Will Emerge Victorious? | AAPL | https://www.nasdaq.com/articles/bulls-vs.-bears-who-will-emerge-victorious | Currently, the stock market is at an interesting crossroads. As investors patiently wait for the outcome of the debt ceiling negotiations from Washington, the U.S. Federal Reserve Meeting Wednesday, and the fallout from the banking crisis, there is a lot to digest. To make matters more confusing, the different equity indexes are diverging from each other in the widest margin seen in years. For example, the tech-heavy Nasdaq 100 Index ETF (QQQ) is higher by an impressive 26% year-to-date while the Russell 2000 Index ETF (IWM) is higher by a measly 1% (albeit it’s had to deal with a regional banking crisis).
From an investor perspective it can seem like a daunting task to try to account for and factor into a strategy monetary policy changes, macro-economic factors, political negotiations, geopolitics, and more. I have found that the best way to overcome this confusion is to factor in historical stats, precedent, and above all, listen to what the price and volume action is telling us. With that in mind, I will break down the bear and bull case for the stock market at this point in time.
Bear Case:
Bearish Divergence: The Relative Strength Index (RSI) measures the momentum of a particular instrument.Presently,The RSI of the S&P 500 Index ETF (SPY) is showing a bearish divergence. Bearish divergences occur when the price of an asset makes new highs while momentum does not – an indication that momentum may be lagging.
Image Source: Zacks Investment Research
“Sell the News” Potential: Wall Street tends to be a discounting device – it prices in highly anticipated events ahead of time. Is the recent melt up in stocks an indication that a resolution is likely to be found for the current debt ceiling negotiations? If so, savvy investors may use the burst of enthusiasm to take some profits. In October of 2022, stocks did the exact opposite and bought the news after the highly anticipated “highest in 40 years” inflation data hit news wires. Consequently, the S&P 500 had a bullish divergence at the time.
Image Source: Zacks Investment Research
Pictured: RSI divergences can be key inflection points.
QQQ Distance from the 50-day Moving Average: Moving averages can be a valuable tool for investors because it can provide a reference point for trends. Uptrends tend to take two steps higher and one step lower, or three steps higher and two steps back. For investors, the best course of action is to avoid chasing trends and instead look to buy into support. Historically, when an index gets extended by 7% or more above the 50-day moving average it needs to correct – either through time or price. Late last week the QQQ index reached extended levels of 7% above the 50-day moving average.
Image Source: Zacks Investment Research
Sentiment: The CNN Fear and Greed Index measures sentiment through seven fear and greed indicators. The index is currently flashing the “greediest” levels since February – just before the market endured a multi-week correction.
Image Source: Zacks Investment Research
Bull Case:
Trends Tend to Persist: As Larry Hite once said, “the trend is your friend until the end when it bends”. Presently, QQQ and SPY are in classic uptrends. Price is above a rising 200-day moving average, the moving averages are stacked (faster moving averages above slower ones), and they are making higher highs and lower lows. Rarely does it pay to fight the predominant trend for more than a short-term trade.
Image Source: Zacks Investment Research
Innovation to Drive Future Earnings and Cut Costs: Many value investors are complaining about big tech valuations in companies such as Microsoft (MSFT) (trades at 34x) and Nvidia (NVDA) (94x). Though the valuations are undoubtedly lofty, using P/E as a timing device is a fool’s errand – especially in bull markets. Firstly, the internet bubble and many bull markets over the years provide investors with proof that p/e ratio can extend to nosebleed levels and stay there for months or years before a stock tops.
Image Source: Zacks Investment Research
Secondly, the AI revolution may boost earnings to a point where innovative companies like NVDA can “grow into them”. Even with this year’s monstrous move in stocks like Alphabet (GOOGL), MSFT, and NVDA, context is important. After the 2022 tech correction, all three stocks remain well below their highs, while growth is expected to catapult higher. For example, NVDA (which reports earnings Wednesday) is expected to announce record earnings in early 2024. Meanwhile, the share price is well below the all-time high price of $346 achieved in late 2021.
Image Source: Zacks Investment Research
History Tells Us that Price Bottoms Well Before Earnings: The past three major bear markets (2020 Covid Crash, 2008 Global Financial Crisis, & 2000 Internet Bubble) saw price bottom before earnings. Will it happen once again?
Image Source: Zacks Investment Research
Stabilization Outside of Tech: A key argument in many bearish theses is that mega-cap tech stocks such as Apple (AAPL) and Advanced Micro Devices (AMD) are propping up the entire equity market.
Potential for Broader Participation: Monday, IWM shot higher by 1.22%, outperforming the other major indices. Beaten down ARK Innovation ETF (ARKK) leapt higher by nearly 5%. Troubled auto retailed Carvana (CVNA) has more than doubled off lows. All the above point to evidence that weaker areas of the market may be finally stabilizing.
Putting it All Together
The bull and bear arguments laid out above suggest that the uptrend may need to pause and correct through time or price in the short-term. While there is little evidence to go short, new longs should be avoided until we get a pullback. Longer term, the evidence points to a bull market recovery.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Image Source: Zacks Investment Research Stabilization Outside of Tech: A key argument in many bearish theses is that mega-cap tech stocks such as Apple (AAPL) and Advanced Micro Devices (AMD) are propping up the entire equity market. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report ARK Innovation ETF (ARKK): ETF Research Reports Carvana Co. (CVNA) : Free Stock Analysis Report To read this article on Zacks.com click here. As investors patiently wait for the outcome of the debt ceiling negotiations from Washington, the U.S. Federal Reserve Meeting Wednesday, and the fallout from the banking crisis, there is a lot to digest. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report ARK Innovation ETF (ARKK): ETF Research Reports Carvana Co. (CVNA) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Stabilization Outside of Tech: A key argument in many bearish theses is that mega-cap tech stocks such as Apple (AAPL) and Advanced Micro Devices (AMD) are propping up the entire equity market. Image Source: Zacks Investment Research Sentiment: The CNN Fear and Greed Index measures sentiment through seven fear and greed indicators. | Image Source: Zacks Investment Research Stabilization Outside of Tech: A key argument in many bearish theses is that mega-cap tech stocks such as Apple (AAPL) and Advanced Micro Devices (AMD) are propping up the entire equity market. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report ARK Innovation ETF (ARKK): ETF Research Reports Carvana Co. (CVNA) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research History Tells Us that Price Bottoms Well Before Earnings: The past three major bear markets (2020 Covid Crash, 2008 Global Financial Crisis, & 2000 Internet Bubble) saw price bottom before earnings. | Image Source: Zacks Investment Research Stabilization Outside of Tech: A key argument in many bearish theses is that mega-cap tech stocks such as Apple (AAPL) and Advanced Micro Devices (AMD) are propping up the entire equity market. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Russell 2000 ETF (IWM): ETF Research Reports Alphabet Inc. (GOOGL) : Free Stock Analysis Report ARK Innovation ETF (ARKK): ETF Research Reports Carvana Co. (CVNA) : Free Stock Analysis Report To read this article on Zacks.com click here. With that in mind, I will break down the bear and bull case for the stock market at this point in time. |
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15730.0 | 2023-05-22 00:00:00 UTC | Buyers Swarmed These 3 Stocks Post-Earnings | AAPL | https://www.nasdaq.com/articles/buyers-swarmed-these-3-stocks-post-earnings | With earnings season slowly winding down, one thing is for certain – we saw many surprises. Of course, the period is always hectic, but this cycle was critically important as we wade through a somewhat-cloudy economic outlook.
Several companies, including Apple AAPL, Uber Technologies UBER, and Applied Materials AMAT, all delivered results that had investors celebrating post-earnings.
Below is a chart illustrating the year-to-date performance of all three, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
Let’s take a closer look at how each currently stacks up.
Apple
Apple’s quarterly results were watched like a hawk, as it was the last of the mega-cap tech giants yet to report. Fortunately for the market, the company delivered, exceeding earnings expectations by nearly 6% and posting revenue 2% ahead of estimates.
Image Source: Zacks Investment Research
It’s worth noting that investors will have to fork up a premium for AAPL shares, with the current 29.2X forward earnings multiple sitting well above the five-year median and Zacks Computer and Technology sector average.
Image Source: Zacks Investment Research
Shares recently witnessed the golden cross, as highlighted in the chart below. The golden cross occurs when the shorter 50-day moving average rises above the 200-day moving average, indicating near-term buying pressure.
Image Source: Zacks Investment Research
Uber Technologies
Uber shares found plenty of attention following its latest release; the company posted a positive EPS surprise of 20% and reported revenue modestly above expectations.
Image Source: Zacks Investment Research
Uber shares could entice growth-focused investors, further reinforced by the Style Score of “A” for Value. The company’s earnings are forecasted to skyrocket 100% in its current fiscal year (FY23) and an additional 1,270% in FY24.
The projected earnings growth comes on top of forecasted Y/Y revenue upticks of 17% in FY23 and 18% in FY24.
Applied Materials
Like the stocks above, buyers stepped up in a big way post-earnings for AMAT shares, with the company delivering a 9% EPS beat and reporting revenue nearly 4% ahead of expectations.
Image Source: Zacks Investment Research
It’s worth noting that the company’s growth is forecasted to taper off, with earnings forecasted to pull back 6% in its current fiscal year (FY23) and a further 7% in FY23. This is illustrated in the chart below.
Image Source: Zacks Investment Research
Bottom Line
While earnings season is undeniably intense, it’s just the nature of the period. We managed to elude the so-called earnings ‘cliff’ many warned of, with many companies posting better-than-expected results and keeping sentiment in line.
And all three stocks above – Apple AAPL, Uber Technologies UBER, and Applied Materials AMAT – delivered results that had the market impressed post-earnings.
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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. | Several companies, including Apple AAPL, Uber Technologies UBER, and Applied Materials AMAT, all delivered results that had investors celebrating post-earnings. Image Source: Zacks Investment Research It’s worth noting that investors will have to fork up a premium for AAPL shares, with the current 29.2X forward earnings multiple sitting well above the five-year median and Zacks Computer and Technology sector average. And all three stocks above – Apple AAPL, Uber Technologies UBER, and Applied Materials AMAT – delivered results that had the market impressed post-earnings. | Several companies, including Apple AAPL, Uber Technologies UBER, and Applied Materials AMAT, all delivered results that had investors celebrating post-earnings. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research It’s worth noting that investors will have to fork up a premium for AAPL shares, with the current 29.2X forward earnings multiple sitting well above the five-year median and Zacks Computer and Technology sector average. | Image Source: Zacks Investment Research It’s worth noting that investors will have to fork up a premium for AAPL shares, with the current 29.2X forward earnings multiple sitting well above the five-year median and Zacks Computer and Technology sector average. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report To read this article on Zacks.com click here. Several companies, including Apple AAPL, Uber Technologies UBER, and Applied Materials AMAT, all delivered results that had investors celebrating post-earnings. | Several companies, including Apple AAPL, Uber Technologies UBER, and Applied Materials AMAT, all delivered results that had investors celebrating post-earnings. Image Source: Zacks Investment Research It’s worth noting that investors will have to fork up a premium for AAPL shares, with the current 29.2X forward earnings multiple sitting well above the five-year median and Zacks Computer and Technology sector average. And all three stocks above – Apple AAPL, Uber Technologies UBER, and Applied Materials AMAT – delivered results that had the market impressed post-earnings. |
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15743.0 | 2023-05-21 00:00:00 UTC | 7 Promising Growth Stocks to Buy Hand Over Fist | AAPL | https://www.nasdaq.com/articles/7-promising-growth-stocks-to-buy-hand-over-fist | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As 2023 unfolds, it brings about several new possibilities in the investment arena, breathing new life into promising growth stocks. After tech stocks were punished in 2022, many of the top tech growth stocks are showing signs of a vibrant comeback. However, sectors previously flourishing, such as energy stocks and regional banks, are now facing major headwinds. With investors contemplating the effects of a potential recession and financial system instability, there has been a strategic rotation back into the most enticing growth stocks to buy.
However, there is a note of caution during this shift. The rosy growth scenario of 2021 may not replicate itself during this market resurgence. The remnants of speculative excess during the stock market rally of 2021, but the market has evolved. Now the market harbors a deeper appreciation for profitability and sustainability, along with durable business models, that will guide the selection of future growth stocks.
AAPL Apple $175.16
GOOG GOOGL Alphabet $123.25
DDOG Datadog $92.09
U Unity Software $29.10
SOFI SoFi Technologies $4.93
SNOW Snowflake $176.82
BROS Dutch Bros $28.52
Growth Stocks To Buy: Apple (AAPL)
Source: 3rdtimeluckystudio / Shutterstock
Apple (NASDAQ:AAPL) has a potent brand image, with it boasting superior pricing power, a strength that has historically turned investor portfolios into massive treasure chests. Moreover, its financials have been consistently rising, representing steadfast growth. Additionally, it has made bold strides with aggressive share repurchases and dividends, underpinning its impressive $97 billion annual free cash flow balance.
Let’s turn our attention toward the iPhone, a story of triumph amidst turbulence. Despite the U.S. economic downturn casting a shadow over iPhone sales, Apple’s superior brand prowess has acted as a robust shield. IPhone sales increased substantially during the first quarter, despite the slowdown in its underlying market. The spotlight, however, rightfully belongs to Apple’s Services unit, which has delivered an astounding 463% sales growth over the past decade.
Alphabet (GOOG, GOOGL)
Source: Khakimullin Aleksandr / Shutterstock
When the AI wave swept in earlier this year, many felt that Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) missed a step. However, Alphabet’s recent I/O developer conference turned the tables, pointing to the tech giant’s retreat. Google unveiled a suite of generative AI tools positioned to dethrone ChatGPT from its perch. Moreover, it’s clear that Google won’t be letting Bing off the hook in establishing its dominance in the search engine battleground.
Alphabet and Microsoft stand on promising ground in the grand scheme of things, with AI presenting a golden growth opportunity. Google’s lackluster earnings report is essentially just a blip on the radar. With flattening interest rates and the firm’s AI aspirations soaring, GOOG stock’s value seems to have hitched a ride on a rocket. Alphabet is charting an exciting course in the ever-evolving tech cosmos as we advance.
Datadog (DDOG)
Source: MEE KO DONG / Shutterstock
Datadog (NASDAQ:DDOG) has established a robust presence in the world of cloud monitoring and security, becoming a juggernaut software-as-a-service solutions provider in its niche. The enterprise’s one-stop-shop platform delivers a masterstroke of convenience, enabling firms to watch over and secure their data easily.
Nailing the art of growth, Datadog offers an awe-inspiring trajectory. Revenues have skyrocketed from a humble $101 million in 2017 to an eye-catching $1.7 billion in 2022. Year-over-year growth stands over 50%, roughly 318% higher than the sector median. What’s more impressive is that forward revenue estimates point to more than 37% top-line growth ahead. DDOG stock is up over 24% year-to-date, and with its stock down substantially from historical metrics, there is massive potential value to tap into in the firm.
Unity Software (U)
Source: smshoot/ShutterStock.com
Unity Software (NYSE:U) dazzles as a leader in the graphics engine space, forming the digital backbone of the video game sphere. Over the years, it has evolved from being a pure-play game developer effectively branching out into the vibrant worlds of video architecture, animation, and eCommerce.
Over the years, it’s operated a financially resilient business, with average revenue growth of 40% over the past five years. Moreover, forward revenue growth is estimated at over 32%. Additionally, profitability concerns are dissipating as it has significantly expanded its profitability situation in the past year. Also, its belt-tightening measures have borne fruit, with analysts expecting an anticipated swing from a 39-cent loss to a 35-cent profit per share. Furthermore, Tipranks analysts forecast a 26.8% upside from current prices, positioning it for powerful long-term gains ahead.
SoFi Technologies (SOFI)
Source: Shutterstock
Within a few years of its stock market listing, SoFi Technologies (NASDAQ:SOFI) has already made major waves in the lending, technology platform, and financial services domains. It was awarded a bank charter designation, further bolstering its comprehensive range of financial service offerings and solidifying its position in the fintech arena.
Furthermore, unfazed by market headwinds, SoFi Technologies has effectively emerged as a leading contender in personal finance. Its recent earnings release showed remarkable revenue and adjusted profitability beat, besting market projections by a mile. Sales from its lending segment were at $325 million, up 33% from last year’s first quarter. Financial services sales tripled yearly to a whopping $81 million, while technology sales increased by 28% YOY to $78 million. The firm remains on course to achieving quarterly GAAP net income profitability by the fourth quarter of 2023, a testament to its confidence in its future performance. Based on Tipranks analyst estimates, SOFI stock trades at over a 50% upside from current price levels.
Snowflake (SNOW)
Source: Freedom365day / Shutterstock.com
Snowflake (NYSE:SNOW) has established its presence as a cloud data warehousing prodigy, effectively charting a breathtaking course in the cloud realm. Its services enable firms to ingest massive amounts of data, crafting valuable analytics from data sources.
However, its journey isn’t just a flash in the pan; its status tells a compelling story. While the pace at which it grows may be moderating from its lofty triple-digit growth rates, its anticipated 40% revenue surge to $2.88 billion this year indicates an undeniably robust trajectory.
In its most recent quarter, it delivered a whopping 54% fourth-quarter product revenue growth and an enviable net revenue retention rate of 158%. This implies an average growth rate of 58% per customer. Hence, as we advance, Snowflake, no doubt, continues carving out an impressive path in the cloud cosmos.
Dutch Bros (BROS)
Source: Shutterstock
Dutch Bros (NYSE:BROS) has been zipping ahead of its competition with a fresh take on the traditional coffee-shop concept, winning the hearts of the Gen Z demographic with its nimble locations and selfie-ready drinks ideal for its vibrant customer base.
Despite recently unveiling relatively strong first-quarter results, the company is in a spot of bother. Its 30% YOY revenue growth missed the mark, causing its stock to wobble in the process. However, these growing pains are par for the course for young up-and-coming businesses such as Dutch Bros that are sprinting towards success. It added a whopping 45 new stores already in the first quarter and a revenue growth forecast of around 30% for this year and the next. The potential to brew thousands of new stores over the next few years is a perk that’s just too good to pass up.
On the date of publication, Muslim Farooque 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.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
The post 7 Promising Growth Stocks to Buy Hand Over Fist appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AAPL Apple $175.16 GOOG GOOGL Alphabet $123.25 DDOG Datadog $92.09 U Unity Software $29.10 SOFI SoFi Technologies $4.93 SNOW Snowflake $176.82 BROS Dutch Bros $28.52 Growth Stocks To Buy: Apple (AAPL) Source: 3rdtimeluckystudio / Shutterstock Apple (NASDAQ:AAPL) has a potent brand image, with it boasting superior pricing power, a strength that has historically turned investor portfolios into massive treasure chests. With investors contemplating the effects of a potential recession and financial system instability, there has been a strategic rotation back into the most enticing growth stocks to buy. Additionally, it has made bold strides with aggressive share repurchases and dividends, underpinning its impressive $97 billion annual free cash flow balance. | AAPL Apple $175.16 GOOG GOOGL Alphabet $123.25 DDOG Datadog $92.09 U Unity Software $29.10 SOFI SoFi Technologies $4.93 SNOW Snowflake $176.82 BROS Dutch Bros $28.52 Growth Stocks To Buy: Apple (AAPL) Source: 3rdtimeluckystudio / Shutterstock Apple (NASDAQ:AAPL) has a potent brand image, with it boasting superior pricing power, a strength that has historically turned investor portfolios into massive treasure chests. SoFi Technologies (SOFI) Source: Shutterstock Within a few years of its stock market listing, SoFi Technologies (NASDAQ:SOFI) has already made major waves in the lending, technology platform, and financial services domains. Snowflake (SNOW) Source: Freedom365day / Shutterstock.com Snowflake (NYSE:SNOW) has established its presence as a cloud data warehousing prodigy, effectively charting a breathtaking course in the cloud realm. | AAPL Apple $175.16 GOOG GOOGL Alphabet $123.25 DDOG Datadog $92.09 U Unity Software $29.10 SOFI SoFi Technologies $4.93 SNOW Snowflake $176.82 BROS Dutch Bros $28.52 Growth Stocks To Buy: Apple (AAPL) Source: 3rdtimeluckystudio / Shutterstock Apple (NASDAQ:AAPL) has a potent brand image, with it boasting superior pricing power, a strength that has historically turned investor portfolios into massive treasure chests. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As 2023 unfolds, it brings about several new possibilities in the investment arena, breathing new life into promising growth stocks. SoFi Technologies (SOFI) Source: Shutterstock Within a few years of its stock market listing, SoFi Technologies (NASDAQ:SOFI) has already made major waves in the lending, technology platform, and financial services domains. | AAPL Apple $175.16 GOOG GOOGL Alphabet $123.25 DDOG Datadog $92.09 U Unity Software $29.10 SOFI SoFi Technologies $4.93 SNOW Snowflake $176.82 BROS Dutch Bros $28.52 Growth Stocks To Buy: Apple (AAPL) Source: 3rdtimeluckystudio / Shutterstock Apple (NASDAQ:AAPL) has a potent brand image, with it boasting superior pricing power, a strength that has historically turned investor portfolios into massive treasure chests. Alphabet (GOOG, GOOGL) Source: Khakimullin Aleksandr / Shutterstock When the AI wave swept in earlier this year, many felt that Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) missed a step. It added a whopping 45 new stores already in the first quarter and a revenue growth forecast of around 30% for this year and the next. |
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15750.0 | 2023-05-20 00:00:00 UTC | Why Is Everyone Talking About Apple Stock? | AAPL | https://www.nasdaq.com/articles/why-is-everyone-talking-about-apple-stock | Apple (NASDAQ: AAPL) is building its ecosystem, attracting people with its innovative products. Fool.com contributor and finance professor Parkev Tatevosian discusses why stock market investors are talking about Apple stock.
*Stock prices used were the afternoon prices of May 17, 2023. The video was published on May 19, 2023.
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Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through fool.com/parkev, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) is building its ecosystem, attracting people with its innovative products. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. | Apple (NASDAQ: AAPL) is building its ecosystem, attracting people with its innovative products. Fool.com contributor and finance professor Parkev Tatevosian discusses why stock market investors are talking about Apple stock. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | Apple (NASDAQ: AAPL) is building its ecosystem, attracting people with its innovative products. Fool.com contributor and finance professor Parkev Tatevosian discusses why stock market investors are talking about Apple stock. 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen. | Apple (NASDAQ: AAPL) is building its ecosystem, attracting people with its innovative products. See the 10 stocks *Stock Advisor returns as of May 15, 2023 Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple. |
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15766.0 | 2023-05-19 00:00:00 UTC | Britain's $1.3 bln semiconductor support plan gets cool response | AAPL | https://www.nasdaq.com/articles/britains-%241.3-bln-semiconductor-support-plan-gets-cool-response | By Alistair Smout and Kate Holton
LONDON, May 19 (Reuters) - Britain will invest 1 billion pounds ($1.3 billion) in its semiconductor sector over the next decade as part of a long-awaited strategy that was immediately criticised by the industry for being too little to make a difference.
Chipmakers around the world have poured billions of dollars into the sector in recent years, with the United States and Europe backing the development of new plants after the COVID-19 pandemic showed the risk of relying on Taiwan and China.
Britain's plan, which has been in the works for around two years, is dwarfed by the $52.7 billion of U.S. chip subsidies and 43 billion euros ($47 billion) of proposed EU investment.
But it focuses on the area where Britain excels, the design of semiconductors, used in everything from cars to smartphones and washing machines. Prime Minister Rishi Sunak said it would help Britain build a "competitive edge on the global stage".
While companies in the sector welcomed publication of a strategy, they criticised the scale of support.
AI chip designer Graphcore said it was "modest" compared with countries such as Germany, while the head of graphene maker Paragraf said it was "flaccid".
"The UK's capital commitment is nothing but a rounding error in this industry," said Simon Thomas, CEO and founder of Paragraf, which describes itself as the only company in the world capable of manufacturing graphene to mass produce chips.
UNDERWHELMING
Under the new plan, some 200 million pounds of investment will be available in 2023-25, rising to up to 1 billion pounds in the next decade. While it is focused on research and design for now, Britain said it would support investment in chip manufacturing later this year.
Citi analysts described the focus as "sensible" but the money as "too little to be of significant value to major industry partners".
Sunak, in Japan for a Group of Seven (G7) leaders, also announced a semiconductors partnership with Tokyo, echoing an agreement with South Korea.
Britain is home to Arm, which designs the processor technology used in nearly every smartphone, selling intellectual property to companies such as Apple and Qualcomm.
It was sold to Japan's SoftBank in a 2016 deal that sparked criticism that Britain had allowed its biggest tech success to be bought by foreign investors. SoftBank now plans to list it in the United States.
Business leaders have become increasingly critical of Britain's strategy in recent months, saying they need joined-up support on everything from infrastructure to skills training and investment as they transition to a post-carbon future.
A report by a panel of lawmakers said last year that a lack of an end-to-end supply chain for semiconductors made Britain particularly exposed to any future disruption to chip supplies, such as if China were to invade Taiwan, the world's biggest semiconductor supplier.
($1 = 0.7923 pounds)
($1 = 0.9084 euros)
(Reporting by Alistair Smout and Sachin Ravikumar; Editing by Alexander Smith)
(([email protected]; +44 207 542 7064; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Chipmakers around the world have poured billions of dollars into the sector in recent years, with the United States and Europe backing the development of new plants after the COVID-19 pandemic showed the risk of relying on Taiwan and China. "The UK's capital commitment is nothing but a rounding error in this industry," said Simon Thomas, CEO and founder of Paragraf, which describes itself as the only company in the world capable of manufacturing graphene to mass produce chips. Business leaders have become increasingly critical of Britain's strategy in recent months, saying they need joined-up support on everything from infrastructure to skills training and investment as they transition to a post-carbon future. | By Alistair Smout and Kate Holton LONDON, May 19 (Reuters) - Britain will invest 1 billion pounds ($1.3 billion) in its semiconductor sector over the next decade as part of a long-awaited strategy that was immediately criticised by the industry for being too little to make a difference. A report by a panel of lawmakers said last year that a lack of an end-to-end supply chain for semiconductors made Britain particularly exposed to any future disruption to chip supplies, such as if China were to invade Taiwan, the world's biggest semiconductor supplier. ($1 = 0.7923 pounds) ($1 = 0.9084 euros) (Reporting by Alistair Smout and Sachin Ravikumar; Editing by Alexander Smith) (([email protected]; +44 207 542 7064; Reuters Messaging: [email protected])) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Alistair Smout and Kate Holton LONDON, May 19 (Reuters) - Britain will invest 1 billion pounds ($1.3 billion) in its semiconductor sector over the next decade as part of a long-awaited strategy that was immediately criticised by the industry for being too little to make a difference. Britain's plan, which has been in the works for around two years, is dwarfed by the $52.7 billion of U.S. chip subsidies and 43 billion euros ($47 billion) of proposed EU investment. A report by a panel of lawmakers said last year that a lack of an end-to-end supply chain for semiconductors made Britain particularly exposed to any future disruption to chip supplies, such as if China were to invade Taiwan, the world's biggest semiconductor supplier. | By Alistair Smout and Kate Holton LONDON, May 19 (Reuters) - Britain will invest 1 billion pounds ($1.3 billion) in its semiconductor sector over the next decade as part of a long-awaited strategy that was immediately criticised by the industry for being too little to make a difference. While it is focused on research and design for now, Britain said it would support investment in chip manufacturing later this year. SoftBank now plans to list it in the United States. |
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15777.0 | 2023-05-18 00:00:00 UTC | EXPLAINER-How Montana could enforce a TikTok ban | AAPL | https://www.nasdaq.com/articles/explainer-how-montana-could-enforce-a-tiktok-ban | May 18 (Reuters) - Montana took the unusual step on Wednesday of banning Chinese-owned short video app TikTok, with lawmakers of the sparsely populated western U.S. state saying they aimed to protect residents from alleged intelligence gathering by China.
TikTok, which is wildly popular with American teens and owned by Chinese tech company ByteDance, is already banned on government-issued devices in around 30 U.S. states and for employees of the country's federal agencies.
While blocking apps by geography is not unheard of, the Montana law is notable for doing so at the state level, upending a single-market approach Apple AAPL.O and Alphabet's Google GOOGL.O have long been able to use for their U.S. app stores.
Montana's ban is set to take effect on Jan. 1 2024.
HAS THIS EVER BEEN DONE BEFORE?
Sort of.
Tech companies are now well-practiced in blocking apps at the country level, mostly to comply with U.S. sanctions or for business purposes, like Apple's blocking of messaging and privacy apps in China upon government request.
Enterprising young people in affected countries have an equally long track record of skirting the bans by downloading the apps while traveling internationally or using tools like virtual private networks (VPNs), which obscure their location.
Within the United States, Pornhub recently disabled its services for IP addresses in Utah ahead of a state law that came into effect requiring adult content platforms to verify users' ages. However, that involved a website only, not an app.
Specifically for apps, Google and Apple appear to have navigated a tangle of different U.S. state rules around online gambling by leaving compliance to individual app developers, according to their app storeguidance.
Google only started allowing gambling apps in its U.S. app store as of 2021, prior to which it restricted the apps in all but four countries: Brazil, France, Ireland and the United Kingdom.
Apple and Google declined to comment on how they approach state rules on gambling.
IS A STATE-LEVEL BAN EVEN TECHNICALLY FEASIBLE?
While TikTok can theoretically block IP addresses registered in Montana, app stores will have a more difficult time.
Apple and Google declined comment on the technical aspects of implementing a ban, but TechNet, a trade group funded by both companies, told Montana lawmakers in March that app stores "do not have the ability to geofence on a state-by-state basis."
"It would thus be impossible for our members to prevent the app from being downloaded specifically in the state of Montana," the TechNet representative testified.
According to cybersecurity researchers, that is likely because companies organize their app stores at the country level, meaning they have systems for shutting off downloads of a given app in some countries while keeping it accessible elsewhere.
The companies do not appear to have built such controls at a more granular level, the researchers said.
"I think it's possible but it's not possible today. It would require a bunch of code to be written," Alex Stamos, the director of the Stanford Internet Observatory and former top security officer at Facebook, said in a recent podcast.
The app stores also would need to monitor more detailed location data from users' phones than they currently use, infringing on users' privacy, Stamos said.
Even if the companies were to make those changes, TikTok-obsessed teens in Montana are likely to follow their peers around the world in learning how to use privacy tools and road trips to get the app onto their phones, said another researcher, John Scott-Railton at Citizen Lab.
"The youth of Montana are about to become America's experts in VPNs," Railton said.
(Reporting by Katie Paul; Editing by Kenneth Li and Anna Driver)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While blocking apps by geography is not unheard of, the Montana law is notable for doing so at the state level, upending a single-market approach Apple AAPL.O and Alphabet's Google GOOGL.O have long been able to use for their U.S. app stores. May 18 (Reuters) - Montana took the unusual step on Wednesday of banning Chinese-owned short video app TikTok, with lawmakers of the sparsely populated western U.S. state saying they aimed to protect residents from alleged intelligence gathering by China. Enterprising young people in affected countries have an equally long track record of skirting the bans by downloading the apps while traveling internationally or using tools like virtual private networks (VPNs), which obscure their location. | While blocking apps by geography is not unheard of, the Montana law is notable for doing so at the state level, upending a single-market approach Apple AAPL.O and Alphabet's Google GOOGL.O have long been able to use for their U.S. app stores. Apple and Google declined to comment on how they approach state rules on gambling. While TikTok can theoretically block IP addresses registered in Montana, app stores will have a more difficult time. | While blocking apps by geography is not unheard of, the Montana law is notable for doing so at the state level, upending a single-market approach Apple AAPL.O and Alphabet's Google GOOGL.O have long been able to use for their U.S. app stores. Specifically for apps, Google and Apple appear to have navigated a tangle of different U.S. state rules around online gambling by leaving compliance to individual app developers, according to their app storeguidance. Google only started allowing gambling apps in its U.S. app store as of 2021, prior to which it restricted the apps in all but four countries: Brazil, France, Ireland and the United Kingdom. | While blocking apps by geography is not unheard of, the Montana law is notable for doing so at the state level, upending a single-market approach Apple AAPL.O and Alphabet's Google GOOGL.O have long been able to use for their U.S. app stores. Within the United States, Pornhub recently disabled its services for IP addresses in Utah ahead of a state law that came into effect requiring adult content platforms to verify users' ages. Apple and Google declined to comment on how they approach state rules on gambling. |
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15813.0 | 2023-05-17 00:00:00 UTC | Is Unity Software Stock a Buy Now? | AAPL | https://www.nasdaq.com/articles/is-unity-software-stock-a-buy-now-2 | Unity Software (NYSE: U) took investors on a wild ride after its public debut in September 2020. The gaming company priced its initial public offering at $52, and its stock surged to an all-time high of $201.02 in November 2021 amid the buying frenzy in growth and meme stocks.
The bulls initially rushed to Unity because it was growing rapidly and its namesake game development engine was used to produce about half of the world's mobile, PC, and console games. It also locked in those developers with tools for monetizing their games through integrated ads, in-app purchases, and multiplayer features. Furthermore, on the company's fourth-quarter 2021earnings call Unity CEO John Riccitiello repeatedly claimed the company could grow its revenue by 30% annually over the "long term."
Image source: Getty Images.
But today, Unity's stock trades at about $30. The bulls retreated as its growth cooled off, Apple's privacy-oriented iOS changes rendered its advertising algorithms nearly useless, and it diluted its own shares with a $4.4 billion all-stock merger with the adtech company ironSource to address those existential advertising challenges.
At its peak, Unity's enterprise value bubbled to $56 billion -- or 40 times the revenue it would actually generate in 2022. But today, it has an enterprise value of $12 billion -- or 6 times the revenue it expects to generate in 2023. Does that lower valuation make Unity a worthwhile investment in this rough market for out-of-favor growth stocks?
What happened to Unity?
Unity's revenue rose 43% in 2020 and grew 44% in 2021. But in 2022, its revenue only climbed 25% to $1.39 billion as it grappled with the post-pandemic slowdown of the gaming market and Apple's ad-disrupting changes on iOS.
In the first quarter of 2023, Unity's revenue declined 2% year over year on a pro forma basis (which accounts for its merger with ironSource). It generated 63% of that revenue from its Grow Solutions, which include its advertising and monetization features. The other 37% came from its Create Solutions, which include its game development engine, Weta theatrical special effects division, and professional services (such as scanning digital twins of real-world objects) for nongaming markets.
During that quarter, Unity's Grow revenue fell 9% year over year on a pro forma basis as its rebooted advertising business faced persistent macro headwinds and difficult comparisons against the industry's "COVID elevated" performance a year earlier. Its Create Solutions revenue rose 14% as developers produced new games and it expanded its nongaming services, but that growth couldn't offset its declining Grow Solutions revenue.
Has Unity reached an inflection point?
That's a bumpy start for the year, but Unity expects the growth of both the Grow and Create segments to reaccelerate throughout the rest of the year. It expects the combination of ironSource with Unity Ads to boost its market share and drive the growth of its Grow business. As for the Create business, it expects its acceleration to be driven by its recent price hikes, the increased adoption of digital twins across nongaming markets, and the recovery of the Chinese market.
Based on those factors, Unity expects its revenue to rise 3% to 9% on a pro forma basis in 2023. That organic revenue growth seems anemic, but it's also been aggressively cutting its costs with three rounds of layoffs over the past year. As a result, the company expects to generate $250 million to $300 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the full year -- which would represent its first positive annual adjusted EBITDA as a public company. It also reiterated its long-term goal of achieving a $1 billion adjusted EBITDA run rate by the end of 2024.
Unfortunately, Unity still isn't anywhere close to breaking even on a generally accepted accounting principles (GAAP) basis due to the stock-based compensation expenses that gobbled up nearly a third of its revenue in the first quarter. The company also faces stiff competition from similar game development engines like Epic Games' Unreal Engine, and its freemium model still seems to attract more low-quality "shovelware" developers than higher-value developers.
It's not cheap relative to its near-term growth
Unity's stock still isn't cheap at 6 times this year's sales and 45 times its adjusted EBITDA. Its merger with ironSource might stabilize its advertising business, but it still faces too many near-term headwinds to be considered a viable turnaround play. Investors should stay away from Unity unless its revenue growth actually accelerates on a pro forma basis.
10 stocks we like better than Unity Software
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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 other 37% came from its Create Solutions, which include its game development engine, Weta theatrical special effects division, and professional services (such as scanning digital twins of real-world objects) for nongaming markets. It expects the combination of ironSource with Unity Ads to boost its market share and drive the growth of its Grow business. Unfortunately, Unity still isn't anywhere close to breaking even on a generally accepted accounting principles (GAAP) basis due to the stock-based compensation expenses that gobbled up nearly a third of its revenue in the first quarter. | In the first quarter of 2023, Unity's revenue declined 2% year over year on a pro forma basis (which accounts for its merger with ironSource). During that quarter, Unity's Grow revenue fell 9% year over year on a pro forma basis as its rebooted advertising business faced persistent macro headwinds and difficult comparisons against the industry's "COVID elevated" performance a year earlier. It's not cheap relative to its near-term growth Unity's stock still isn't cheap at 6 times this year's sales and 45 times its adjusted EBITDA. | In the first quarter of 2023, Unity's revenue declined 2% year over year on a pro forma basis (which accounts for its merger with ironSource). During that quarter, Unity's Grow revenue fell 9% year over year on a pro forma basis as its rebooted advertising business faced persistent macro headwinds and difficult comparisons against the industry's "COVID elevated" performance a year earlier. Its Create Solutions revenue rose 14% as developers produced new games and it expanded its nongaming services, but that growth couldn't offset its declining Grow Solutions revenue. | In the first quarter of 2023, Unity's revenue declined 2% year over year on a pro forma basis (which accounts for its merger with ironSource). Its Create Solutions revenue rose 14% as developers produced new games and it expanded its nongaming services, but that growth couldn't offset its declining Grow Solutions revenue. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Unity Software wasn't one of them! |
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15835.0 | 2023-05-16 00:00:00 UTC | This Stock Market Indicator Has Never Been Worse. Here's What Could Be Coming. | AAPL | https://www.nasdaq.com/articles/this-stock-market-indicator-has-never-been-worse.-heres-what-could-be-coming. | You don't have to look hard to find discouraging economic and market indicators. For example, the three-month/10-year U.S. Treasury yield curve is inverted the most in decades. This typically portends bad news for the economy.
But there's one stock market indicator that has never been worse. And here's what could be coming.
Image source: Getty Images.
Market breadth
J.P. Morgan recently cautioned its clients that market breadth is "the weakest ever" based on some measures. The firm's chief U.S. equity strategist, Dubravko Lakos-Bujas, warned that this could point to a "bearish outcome for the market."
Market breadth is a term used to describe how many stocks are participating in a move for a stock market index. There are several ways to measure market breadth. One common method is to count the number of stocks that are rising versus the number of stocks that are declining. JPMorgan analysts were particularly looking at the percentage of stocks in the S&P 500 that have outperformed the overall index in the latest rally.
Why is weak market breadth potentially bad news? It reflects that investors are only excited about a relatively small number of stocks rather than the broader market. In the past when this has been the case, economic downturns have often followed. In a truly healthy market, a high percentage of stocks will perform well instead of only a few.
The haves and the have-nots
There are two main reasons why the S&P 500's market breadth is so weak right now. First, a handful of big stocks make up a significant percentage of the total index value. Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) alone comprise close to 14.5% of the S&P's value. The top 10 companies in the S&P 500 make up nearly one-third of the index's total value.
Second, several of these mega-large-cap stocks have been big winners so far in 2023. Shares of Meta Platforms (NASDAQ: META) and Nvidia (NASDAQ: NVDA) have almost doubled year to date. Apple, Microsoft, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), and Tesla (NASDAQ: TSLA) stocks are up more than 25%.
AAPL data by YCharts
Indeed, the top 10 stocks in the S&P 500 have generated nearly 90% of the index's total return so far in 2023. That's an all-time record.
Meanwhile, 341 stocks that are in the S&P 500 have underperformed the overall index this year. Nearly half of the S&P's member stocks are in negative territory year to date. Well over 100 S&P 500 stocks are down by at least 10%.
We're seeing a market driven by the "haves" and the "have-nots." Many of the "haves" are surging due to investors' enthusiasm for AI. Many of the "have-nots" have fallen as a result of the banking crisis.
What should investors do?
If analysts are right that an economic downturn could be on the way, one pragmatic strategy for investors is to move their money into recession-proof stocks. These include consumer staples, healthcare, and utility stocks.
Perhaps the best approach is the one that Warren Buffett is taking to prepare for a recession. Build up a cash stockpile to take advantage of potential buying opportunities. Don't panic. And, above all, have a long-term outlook. What matters more than the breadth of the market is the length of time you're in the market.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Keith Speights has positions in Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, JPMorgan Chase, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) alone comprise close to 14.5% of the S&P's value. AAPL data by YCharts Indeed, the top 10 stocks in the S&P 500 have generated nearly 90% of the index's total return so far in 2023. The firm's chief U.S. equity strategist, Dubravko Lakos-Bujas, warned that this could point to a "bearish outcome for the market." | Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) alone comprise close to 14.5% of the S&P's value. AAPL data by YCharts Indeed, the top 10 stocks in the S&P 500 have generated nearly 90% of the index's total return so far in 2023. Why is weak market breadth potentially bad news? | Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) alone comprise close to 14.5% of the S&P's value. AAPL data by YCharts Indeed, the top 10 stocks in the S&P 500 have generated nearly 90% of the index's total return so far in 2023. Market breadth is a term used to describe how many stocks are participating in a move for a stock market index. | Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) alone comprise close to 14.5% of the S&P's value. AAPL data by YCharts Indeed, the top 10 stocks in the S&P 500 have generated nearly 90% of the index's total return so far in 2023. The haves and the have-nots There are two main reasons why the S&P 500's market breadth is so weak right now. |
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15854.0 | 2023-05-15 00:00:00 UTC | 3 Tech Stocks That May Outperform Apple in 2023 | AAPL | https://www.nasdaq.com/articles/3-tech-stocks-that-may-outperform-apple-in-2023 | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Because of the possibility for expansion and improvement in the industry, traders are attracted to many of the top tech stocks in the market.
One of the most well-known tech corporations is Apple (NASDAQ:AAPL). In the decades to come, innovation is expected to serve a key part in finding answers to problems including energy conservation, robotics, medical care and housing.
This article highlights the top tech stocks that are expected to lead the market this year. These businesses are renowned for developing ground-breaking goods and solutions that influence the years to come, and their shares provide impressive profits.
Among them are three companies that could outperform Apple in 2023.
META Meta Platforms $233.81
GOOG Alphabet $117.92
TSLA Tesla $167.98
Meta Platforms (META)
Source: Aleem Zahid Khan / Shutterstock.com
Meta Platforms (NASDAQ:META) has faced criticism for investing heavily in the metaverse project, which has resulted in losses and a decrease in market cap. However, the company’s strong underlying business should make it an attractive buy at its current range, despite ongoing debates about the metaverse’s potential success.
The company faced challenges in 2022 because of the digital advertising market’s decline. The tech giant’s monetary standing has gotten better though, and the value of its stock has increased by nearly 91% since January.
Over the past year, it has grown by 16%, and its high Altman Z-Score of 7.21 indicates strong financial resilience.
With an average three-year sales increase rate of 20.6% and a dragging-year net profit margin of 19.9%, Meta has outperformed the bulk of its rivals in terms of economic performance. Analysts consider it a moderate buy, with an average price target of $263.12, showing potential growth of over 10%.
In the coming years, Meta Platforms, a significant player in the social networking industry, is expected to flourish.
Besides dominating the online networking industry, the corporation is branching out into new industries including augmented realities and simulated reality, making it one of the tech stocks to watch this year.
Alphabet (GOOG)
Source: salarko / Shutterstock.com
Alphabet (NASDAQ:GOOG) has recently reported a strong financial performance but its AI ambitions have been largely overlooked by the financial media.
Despite being one of the top AI stocks of 2023, Alphabet is not getting enough attention.
For those looking to invest in AI stocks for long-term growth, Alphabet should be considered. In the near term, Alphabet announced profits of $1.17 per share, which was 10 cents per share more than analysts’ expectations.
The business’ earnings of $69.8 billion exceeded the average projection by about $1 billion. Alphabet announced a $70 billion buyback, indicating that its strong cash flow and balance sheet will continue to drive gains.
Even with introducing ChatGPT, Google remains the dominant search engine with a 93.37% share of all search queries across all providers. While Microsoft’s Bing may see some growth, it currently only holds less than 10% of Google’s market share, emphasizing Google’s strong position in the search industry.
Tesla (TSLA)
Source: Roschetzky Photography / Shutterstock.com
Tesla (NASDAQ:TSLA) is still the leading electric vehicle manufacturer in the world, despite controversies surrounding the company and its CEO Elon Musk. The stock remains volatile, but Tesla’s growth is uninterrupted.
The company has announced it will produce 1.8 million to two million vehicles this year, making it well ahead of its competitors in terms of EV production.
Tesla’s stock is still at a reasonable price for investors interested in growth, considering the company’s consistently strong growth despite challenging conditions. Tesla is expected to maintain a strong growth trajectory in the long term by taking advantage of the EV opportunity.
After Musk’s acquisition of Twitter last fall, TSLA’s stock took a hit, but it has since rebounded and increased by 45% since January. Despite a recent earnings miss, there are upcoming factors such as the launch of the Cybertruck and a new manufacturing plant in Mexico that could give Tesla a boost. Therefore, it is currently considered one of the top EV stocks to purchase.
On the date of publication, Chris MacDonald has a position in AAPL, META. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
The post 3 Tech Stocks That May Outperform Apple in 2023 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. | One of the most well-known tech corporations is Apple (NASDAQ:AAPL). On the date of publication, Chris MacDonald has a position in AAPL, META. In the decades to come, innovation is expected to serve a key part in finding answers to problems including energy conservation, robotics, medical care and housing. | One of the most well-known tech corporations is Apple (NASDAQ:AAPL). On the date of publication, Chris MacDonald has a position in AAPL, META. META Meta Platforms $233.81 GOOG Alphabet $117.92 TSLA Tesla $167.98 Meta Platforms (META) Source: Aleem Zahid Khan / Shutterstock.com Meta Platforms (NASDAQ:META) has faced criticism for investing heavily in the metaverse project, which has resulted in losses and a decrease in market cap. | One of the most well-known tech corporations is Apple (NASDAQ:AAPL). On the date of publication, Chris MacDonald has a position in AAPL, META. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Because of the possibility for expansion and improvement in the industry, traders are attracted to many of the top tech stocks in the market. | One of the most well-known tech corporations is Apple (NASDAQ:AAPL). On the date of publication, Chris MacDonald has a position in AAPL, META. This article highlights the top tech stocks that are expected to lead the market this year. |
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15855.0 | 2023-05-14 00:00:00 UTC | Is Apple Now a Top Dividend Stock? | AAPL | https://www.nasdaq.com/articles/is-apple-now-a-top-dividend-stock | For much of its existence, Apple (NASDAQ: AAPL) has been considered a growth stock. Many investors snapping it up for their portfolios still believe this to be so, as the company -- despite being a massive entity -- frequently books double-digit increases in key fundamental metrics.
Recently, though, Apple awarded said investors a relatively generous dividend raise. So perhaps this makes the company a solid dividend stock to own too. Here's a little exploration of this.
Big earner, big spender
Let's get the details out of the way and set some context. Concurrent with the second quarter of fiscal 2023 results published in early May, Apple declared a new quarterly payout of $0.24 per share. This dividend raise shook out to a 4% improvement on its $0.23 per share predecessor. (By the way, that wasn't the only shareholder-pleasing move the company made; it also launched a $90 billion share repurchase program.)
Nobody should worry about whether Apple can afford the extra dividend expense or the new share buyback kitty. In that quarter alone, it generated operating cash flow of almost $29 billion. These days, it's spending around $3.7 billion every quarter on dividends.
We also need to define the idea of a dividend stock. All things being equal, these stocks produce regular dividend income that yields at, or above, the average of a representative group of dividend payers. These days, the average yield of the S&P 500 index sits at just under 1.7%. It also helps greatly if the company enacts a dividend raise at least once every year.
The companies most readily identified with dividend stocks also tend to be well-established ones with modest growth but very strong and reliable free cash flow (FCF).
So does Apple fit this bill? Well, not entirely. That FCF sure is mighty. The company not only sells the enduringly popular suite of iGadgets and has thriving (if relatively niche) businesses in other hardware like desktop and laptop machines, it also makes plenty of coin from its App Store. So we'll put a tick mark next to that criterion.
As for yield, that's a different story. Strictly on that basis, Apple isn't very impressive. Its yield is a rather light 0.6% these days, well under the aforementioned S&P 500 benchmark. So while Apple's figure is in line with the often miserly tech industry, it's a fair distance below that of classic dividend stocks like Coca-Cola (which offers 2.9%), McDonald's (2.1%), and 3M (a meaty 6%).
Finally, by those two other yardsticks, Apple doesn't really fit the mold of a traditional dividend stock. It's still quite a growing company, as noted above, and while it has numerous revenue streams, it remains beholden to consumer fashion and trends.
If an Android phone maker, say, can devise some groundbreaking proprietary technology that leaps ahead of anything an iPhone is able to do, sales of those Apple devices could evaporate. By contrast, no one's yet come up with a "Coca-Cola killer," for example, or a better mass-market Big Mac.
Finally, as for the dividend raise aspect, Apple is indisputably a company that likes its lifts -- with this most recent one, it has now hiked the payout for 11 straight years (since reinstating it in 2012). But that history pales in comparison to those of the most renowned dividend stocks. Again using Coca-Cola and McDonald's as examples, those two giants have current raise streaks stretching back 60 and 46 years, respectively.
Taking stock
So, no, in my view Apple hasn't become a top dividend stock with its recent raise. It is not a compelling investment on that basis alone.
But, of course, that doesn't mean it's a lousy stock to own. Quite the contrary, in fact.
Apple does an admirable job refreshing its product lines, with the iPhone being one of the best and most cutting-edge phones on the market despite the brand's age (nearly 16 years -- wow!). More devices on the market means more purchasing through the App Store, so services revenue is on a growth path too. Apple is also unafraid to enter potentially high-growth new business ventures, such as computer chips.
I'm an Apple stock owner myself, and for me, it's never been about the dividend -- and likely never will be. Instead, I'm excited about the numerous growth opportunities the tech giant has in front of it, and the payout is just a little sweetener in my eyes. I suggest you look at the stock the same way.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For much of its existence, Apple (NASDAQ: AAPL) has been considered a growth stock. The company not only sells the enduringly popular suite of iGadgets and has thriving (if relatively niche) businesses in other hardware like desktop and laptop machines, it also makes plenty of coin from its App Store. So while Apple's figure is in line with the often miserly tech industry, it's a fair distance below that of classic dividend stocks like Coca-Cola (which offers 2.9%), McDonald's (2.1%), and 3M (a meaty 6%). | For much of its existence, Apple (NASDAQ: AAPL) has been considered a growth stock. Taking stock So, no, in my view Apple hasn't become a top dividend stock with its recent raise. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | For much of its existence, Apple (NASDAQ: AAPL) has been considered a growth stock. Taking stock So, no, in my view Apple hasn't become a top dividend stock with its recent raise. I'm an Apple stock owner myself, and for me, it's never been about the dividend -- and likely never will be. | For much of its existence, Apple (NASDAQ: AAPL) has been considered a growth stock. Finally, by those two other yardsticks, Apple doesn't really fit the mold of a traditional dividend stock. Taking stock So, no, in my view Apple hasn't become a top dividend stock with its recent raise. |
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15857.0 | 2023-05-13 00:00:00 UTC | One of the Single Most Important Metrics for Apple Investors Just Got Better | AAPL | https://www.nasdaq.com/articles/one-of-the-single-most-important-metrics-for-apple-investors-just-got-better | It goes without saying that the iPhone is Apple's (NASDAQ: AAPL) most important product. Since its debut in mid-2007, the iconic device has become the gold standard for smartphones. As a result of that simple truth, the iPhone continues to command a premium price, which is arguably the reason for the company's unbridled success.
Now, it appears, Apple has set a new benchmark that lays the foundation for the company's future success. The iPhone just proved, in the most unlikely of times, users are willing to pay up for the tech giant's flagship device.
Image source: Apple.
Gauges of iPhone demand
Apple long ago dispensed with reporting on just exactly how many iPhones the company sells in a given quarter. When it stopped providing the unit sales metric in late 2018, CFO Luca Maestri said Apple made the decision because the figure was "not representative of underlying strength of our business." He went on to note that "a unit of sale is less relevant today than it was in our past."
As a result of that decision, investors also lost the ability to calculate the average selling price (ASP), a measure of how much users were willing to pay for the iPhone. Before the change, the calculation could be made by dividing the total amount of iPhone revenue (which the company still breaks out) by the unit sales, which resulted in the ASP. This helped investors gauge the strength of demand for the device, rather than simply relying on the total percentage of revenue gains.
Since Apple has introduced more expensive models in recent years, it's difficult for investors to determine how much of its revenue gains to attribute to price increases and how much is the result of gains (or losses) in unit sales.
Fortunately, a helpful third-party market research company still provides reasonable estimates of the iPhone's ASP.
A new all-time high
During its fiscal 2023 Q2 (ended April 1), Apple reported iPhone revenue of $51.3 billion, an increase of 1.5% year over year, setting a record for the March quarter. For context, iPhone sales accounted for roughly 54% of revenue during the period. That's not far off historical averages, as the iPhone was responsible for 52% of Apple's sales in fiscal 2022.
During Q2, the weighted average retail price (WARP) for the iPhone rose to a new all-time high of $988, according to data compiled by Consumer Intelligence Research Partners (CIRP), up 12% from $882 in the prior-year quarter. The researchers are quick to point out that this doesn't take into account the trade-ins or other promotions that may result in a lower price, though this likely doesn't materially change the estimate.
This is made all the more remarkable by the fact that the WARP has declined in each and every March quarter since CIRP began calculating the metric back in 2015. What's more, the economy has been in downturn mode for more than a year now, suggesting iPhone buyers would be more inclined to purchase less expensive models, but the research simply doesn't support that conclusion. In reality, consumers were trading up to the most expensive models, even in challenging economic circumstances.
Why it matters
If the data is at least directionally accurate, it provides some insight into the state of iPhone demand. The research suggests that iPhone unit sales fell to about 52 million in the quarter, down from 57 million in the prior-year period -- a decline of about 9%. That makes sense given the state of the economy.
It also reveals that the remaining iPhone buyers were willing to pony up over $100 more to buy pricier models, spending nearly $1,000 in all for the device -- even in the face of difficult economic conditions.
Dominant profit share
The willingness of Apple fans to pay up for their devices is important for another reason. The company absolutely dominates the competition in terms of profits, leaving its rivals to fight for scraps.
Last year, Apple set a new high-water mark in terms of global smartphone market share, amassing 85% of the profits for the entire industry, according to estimates provided by Counterpoint Research. What makes this all the more incredible is that the tech titan only accounted for about 18% of global smartphone shipments last year, which speaks to the resilience of iPhone demand and the enduring appeal of the device.
This also suggests that when the economy rebounds, as it no doubt will, unit sales of iPhones will likely increase, helping fuel Apple's future growth.
The stock remains a buy.
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Danny Vena has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It goes without saying that the iPhone is Apple's (NASDAQ: AAPL) most important product. When it stopped providing the unit sales metric in late 2018, CFO Luca Maestri said Apple made the decision because the figure was "not representative of underlying strength of our business." During Q2, the weighted average retail price (WARP) for the iPhone rose to a new all-time high of $988, according to data compiled by Consumer Intelligence Research Partners (CIRP), up 12% from $882 in the prior-year quarter. | It goes without saying that the iPhone is Apple's (NASDAQ: AAPL) most important product. Fortunately, a helpful third-party market research company still provides reasonable estimates of the iPhone's ASP. A new all-time high During its fiscal 2023 Q2 (ended April 1), Apple reported iPhone revenue of $51.3 billion, an increase of 1.5% year over year, setting a record for the March quarter. | It goes without saying that the iPhone is Apple's (NASDAQ: AAPL) most important product. Gauges of iPhone demand Apple long ago dispensed with reporting on just exactly how many iPhones the company sells in a given quarter. Since Apple has introduced more expensive models in recent years, it's difficult for investors to determine how much of its revenue gains to attribute to price increases and how much is the result of gains (or losses) in unit sales. | It goes without saying that the iPhone is Apple's (NASDAQ: AAPL) most important product. Before the change, the calculation could be made by dividing the total amount of iPhone revenue (which the company still breaks out) by the unit sales, which resulted in the ASP. Since Apple has introduced more expensive models in recent years, it's difficult for investors to determine how much of its revenue gains to attribute to price increases and how much is the result of gains (or losses) in unit sales. |
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15869.0 | 2023-05-12 00:00:00 UTC | Should BNY Mellon US Large Cap Core Equity ETF (BKLC) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-bny-mellon-us-large-cap-core-equity-etf-bklc-be-on-your-investing-radar-6 | If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the BNY Mellon US Large Cap Core Equity ETF (BKLC), a passively managed exchange traded fund launched on 04/09/2020.
The fund is sponsored by Bny Mellon. It has amassed assets over $1.74 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0%, making it the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.49%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 29.20% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.43% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 32.46% of total assets under management.
Performance and Risk
BKLC seeks to match the performance of the MORNINGSTAR U.S. LARGE CAP INDEX before fees and expenses. The Morningstar US Large Cap Index is a float-adjusted market capitalization weighted index designed to measure the performance of U.S. large-capitalization stocks.
The ETF has added roughly 10.05% so far this year and is up about 7.72% in the last one year (as of 05/12/2023). In the past 52-week period, it has traded between $65.88 and $79.65.
The ETF has a beta of 1.03 and standard deviation of 19.40% for the trailing three-year period. With about 215 holdings, it effectively diversifies company-specific risk.
Alternatives
BNY Mellon US Large Cap Core Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, BKLC is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $309.03 billion in assets, SPDR S&P 500 ETF has $380.02 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.43% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report BNY Mellon US Large Cap Core Equity ETF (BKLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $1.74 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market. | Click to get this free report BNY Mellon US Large Cap Core Equity ETF (BKLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.43% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the BNY Mellon US Large Cap Core Equity ETF (BKLC), a passively managed exchange traded fund launched on 04/09/2020. | Click to get this free report BNY Mellon US Large Cap Core Equity ETF (BKLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.43% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the BNY Mellon US Large Cap Core Equity ETF (BKLC), a passively managed exchange traded fund launched on 04/09/2020. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.43% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report BNY Mellon US Large Cap Core Equity ETF (BKLC): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the BNY Mellon US Large Cap Core Equity ETF (BKLC), a passively managed exchange traded fund launched on 04/09/2020. |
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15893.0 | 2023-05-11 00:00:00 UTC | Should Schwab U.S. Large-Cap ETF (SCHX) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-schwab-u.s.-large-cap-etf-schx-be-on-your-investing-radar-0 | Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Schwab U.S. Large-Cap ETF (SCHX) is a passively managed exchange traded fund launched on 11/03/2009.
The fund is sponsored by Charles Schwab. It has amassed assets over $30.84 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.58%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 26.20% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.68% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 25.61% of total assets under management.
Performance and Risk
SCHX seeks to match the performance of the Dow Jones U.S. Large-Cap Total Stock Market Index before fees and expenses. The Dow Jones U.S. Large-Cap Total Stock Market measures all U.S. equity securities with readily available prices. The index includes approximately the largest 750 stocks and is float-adjusted market-capitalization weighted.
The ETF return is roughly 8.22% so far this year and is up about 4.74% in the last one year (as of 05/11/2023). In the past 52-week period, it has traded between $42.25 and $51.01.
The ETF has a beta of 1.01 and standard deviation of 19.14% for the trailing three-year period, making it a medium risk choice in the space. With about 760 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab U.S. Large-Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SCHX is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $309.46 billion in assets, SPDR S&P 500 ETF has $379.74 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.68% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Schwab U.S. Large-Cap ETF (SCHX) is a passively managed exchange traded fund launched on 11/03/2009. | Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.68% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Schwab U.S. Large-Cap ETF (SCHX) is a passively managed exchange traded fund launched on 11/03/2009. | Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.68% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives Schwab U.S. Large-Cap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.68% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the Schwab U.S. Large-Cap ETF (SCHX) is a passively managed exchange traded fund launched on 11/03/2009. |
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15900.0 | 2023-05-10 00:00:00 UTC | EU antitrust regulators seeking more info on Apple Pay | AAPL | https://www.nasdaq.com/articles/eu-antitrust-regulators-seeking-more-info-on-apple-pay | By Foo Yun Chee
BRUSSELS, May 10 (Reuters) - EU antitrust regulators are seeking more information on Apple's AAPL.O mobile payment system, the European Commission said on Wednesday, a sign that the enforcer is looking to close any loopholes and boost its case against the iPhone maker.
The EU competition watchdog last year accused Apple of restricting rivals' access to its tap-and-go technology, Near-Field Communication (NFC), used for mobile wallets, making it difficult for them to develop rival services on Apple devices.
"We can confirm the sending of requests for information," a commission spokesperson said, while declining to provide details.
Apple declined to comment.
Apple has previously pointed to PayPal's PYPL.O success on its iOS mobile operating system as an option for users as well as competition from Danish rival MobilePay, Sweden's Swish and Belgium's Payconiq.
Norwegian mobile payment app and complainant Vipps said, however, that alternatives to NFC are cumbersome and not competitive.
The commission's request for information to rivals and retailers is unusual as it comes three months after Apple defended itself at a Feb. 14 hearing.
The regulator, which can fine Apple up to 10% of its global turnover if found guilty of breaching antitrust rules, typically issues decisions after such hearings.
(Reporting by Foo Yun Chee; Editing by Leslie Adler)
(([email protected]; +32 2 585 2866; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Foo Yun Chee BRUSSELS, May 10 (Reuters) - EU antitrust regulators are seeking more information on Apple's AAPL.O mobile payment system, the European Commission said on Wednesday, a sign that the enforcer is looking to close any loopholes and boost its case against the iPhone maker. Apple has previously pointed to PayPal's PYPL.O success on its iOS mobile operating system as an option for users as well as competition from Danish rival MobilePay, Sweden's Swish and Belgium's Payconiq. The regulator, which can fine Apple up to 10% of its global turnover if found guilty of breaching antitrust rules, typically issues decisions after such hearings. | By Foo Yun Chee BRUSSELS, May 10 (Reuters) - EU antitrust regulators are seeking more information on Apple's AAPL.O mobile payment system, the European Commission said on Wednesday, a sign that the enforcer is looking to close any loopholes and boost its case against the iPhone maker. The commission's request for information to rivals and retailers is unusual as it comes three months after Apple defended itself at a Feb. 14 hearing. (Reporting by Foo Yun Chee; Editing by Leslie Adler) (([email protected]; +32 2 585 2866; Reuters Messaging: [email protected])) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Foo Yun Chee BRUSSELS, May 10 (Reuters) - EU antitrust regulators are seeking more information on Apple's AAPL.O mobile payment system, the European Commission said on Wednesday, a sign that the enforcer is looking to close any loopholes and boost its case against the iPhone maker. The EU competition watchdog last year accused Apple of restricting rivals' access to its tap-and-go technology, Near-Field Communication (NFC), used for mobile wallets, making it difficult for them to develop rival services on Apple devices. Apple has previously pointed to PayPal's PYPL.O success on its iOS mobile operating system as an option for users as well as competition from Danish rival MobilePay, Sweden's Swish and Belgium's Payconiq. | By Foo Yun Chee BRUSSELS, May 10 (Reuters) - EU antitrust regulators are seeking more information on Apple's AAPL.O mobile payment system, the European Commission said on Wednesday, a sign that the enforcer is looking to close any loopholes and boost its case against the iPhone maker. The EU competition watchdog last year accused Apple of restricting rivals' access to its tap-and-go technology, Near-Field Communication (NFC), used for mobile wallets, making it difficult for them to develop rival services on Apple devices. "We can confirm the sending of requests for information," a commission spokesperson said, while declining to provide details. |
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15921.0 | 2023-05-09 00:00:00 UTC | Apple Just Upped Its Dividend: What You Should Know | AAPL | https://www.nasdaq.com/articles/apple-just-upped-its-dividend%3A-what-you-should-know | Apple's (NASDAQ: AAPL) earnings report last week sent the tech stock sharply higher. Investors were impressed with the company's better-than-expected revenue and earnings per share. The upside to the quarter was largely driven by iPhone sales coming in much better than expected. Total iPhone sales were higher than any fiscal second quarter yet. Apple's smartphone revenue rose 2% year over year to $51.3 billion "despite significant foreign exchange headwinds and a challenging macroeconomic environment," said Apple chief financial officer Luca Maestri during the company's earnings call.
While Apple's financial performance for the period was impressive (particularly considering the macroeconomic headwinds the company is facing) there's another facet of the update worth exploring: Yet another dividend increase from the tech giant. The dividend hike meant Apple added to its growing streak of increasing its dividend every year.
Here's a look at the company's dividend increase, as well as another key way the company is using its excess cash to build shareholder value.
Dividend growth
Apple will increase its quarterly dividend by 4%, management revealed in its earnings report on May 4. This new quarterly dividend comes out to $0.24, which equals $0.96 of dividends on an annual basis. This payout gives Apple a dividend yield of about 0.6%.
Though this is a small dividend, investors should note that the tech giant makes up for its small payout with prospects for continued dividend growth for years to come. Indeed, Apple has already demonstrated its ability to increase its dividend by raising it each and every year since its dividend was initiated in 2012. That means Apple's latest dividend hike is its eleventh consecutive annual increase.
Apple will pay this dividend on May 18 to shareholders of record as of the close of business on May 15.
The company's history of dividend growth is evidence that management is making a habit of regularly increasing its dividend. But the best case for investors to expect continued dividend growth is Apple's low payout ratio. The iPhone maker is paying out just 16% of its earnings in dividends. This means there is plenty of room for the dividend to increase over the next decade. Contrary to Apple's current payout ratio, many dividend stocks safely operate with payout ratios greater than 50%.
Apple's stock buyback program
Looking beyond Apple's dividend, the primary way the company is returning cash to shareholders (albeit indirectly) is its share repurchase program.
Apple used its fiscal second-quarter update as an opportunity to authorize an additional $90 billion for share repurchases. The move reflects management's "confidence in Apple's future and the value we see in our stock," Maestri said in the earnings release.
The company has been spending huge sums on repurchases. In fiscal Q2, Apple spent $19.1 billion on share repurchases. This compares to $3.7 billion spent on dividends during the quarter.
Looking ahead, Apple is likely to persist in spending massive sums on repurchases and increasing its dividend on an annual basis. The company currently has $166 billion in cash and marketable securities on its balance sheet, with total debt of $110 billion. This leaves Apple with a net cash position of $57 billion. It's management's goal to get to net cash neutral over time. This will take a big effort from the company when it comes to dividends and repurchases since Apple's business generates around $100 billion of free cash flow annually.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple's (NASDAQ: AAPL) earnings report last week sent the tech stock sharply higher. While Apple's financial performance for the period was impressive (particularly considering the macroeconomic headwinds the company is facing) there's another facet of the update worth exploring: Yet another dividend increase from the tech giant. Looking ahead, Apple is likely to persist in spending massive sums on repurchases and increasing its dividend on an annual basis. | Apple's (NASDAQ: AAPL) earnings report last week sent the tech stock sharply higher. Dividend growth Apple will increase its quarterly dividend by 4%, management revealed in its earnings report on May 4. But the best case for investors to expect continued dividend growth is Apple's low payout ratio. | Apple's (NASDAQ: AAPL) earnings report last week sent the tech stock sharply higher. Dividend growth Apple will increase its quarterly dividend by 4%, management revealed in its earnings report on May 4. Indeed, Apple has already demonstrated its ability to increase its dividend by raising it each and every year since its dividend was initiated in 2012. | Apple's (NASDAQ: AAPL) earnings report last week sent the tech stock sharply higher. Total iPhone sales were higher than any fiscal second quarter yet. Dividend growth Apple will increase its quarterly dividend by 4%, management revealed in its earnings report on May 4. |
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15941.0 | 2023-05-08 00:00:00 UTC | Invest Like Warren Buffett With These 3 Stocks | AAPL | https://www.nasdaq.com/articles/invest-like-warren-buffett-with-these-3-stocks-2 | Warren Buffett, also commonly called the Oracle of Omaha, is a name that jumps to the forefront of many minds when thinking of the financial world.
As we’re all aware, many mimic his portfolio moves.
And just over the weekend, Berkshire Hathaway hosted its annual shareholder meeting, putting the Oracle of Omaha and his go-to man, Charlie Munger, in full focus.
With the legendary investing icon making headlines following the meeting, let’s take a look at three companies that Buffett has placed big bets on.
Apple (AAPL)
Apple is a long-time favorite of Buffett, reflecting the largest holding of Berkshire. Over the weekend, the icon spoke positively about the iPhone’s rock-solid status among consumers, a big reason why he believes in the company.
Apple’s quarterly results took the spotlight last week, with the tech titan delivering a positive 5.6% EPS surprise and reporting revenue nearly 2% above expectations. The company also announced a 4% increase to its quarterly cash dividend, payable on May 18th.
Image Source: Zacks Investment Research
In addition, the company posted solid iPhone results; iPhone revenue throughout the reported quarter totaled $51.3 billion, 4% above the Zacks Consensus Estimate and improving 1.5% from the year-ago period.
As we can see from the chart below, the better-than-expected iPhone results snapped a streak of back-to-back negative surprises.
Suprise (%) - iPhone Revenue
Image Source: Zacks Investment Research
Bank of America (BAC)
Despite the recent turmoil within banking, Buffett still remains optimistic about BAC. The legendary investor is well-known for his purchase of BAC shares back in 2011.
Similar to AAPL, Bank of America posted results that came in nicely above expectations in its latest release, exceeding the Zacks Consensus EPS Estimate by nearly 20% and delivering a positive 4.7% revenue surprise.
The market didn’t have a great reaction to the results post-earnings, as we can see by the green arrow in the chart below.
Image Source: Zacks Investment Research
Still, the company has consistently shown a shareholder-friendly nature, carrying a solid 10.8% five-year annualized dividend growth rate. Currently, BAC shares yield 3.2% annually, well above the Zacks Finance sector average.
Image Source: Zacks Investment Research
Occidental Petroleum (OXY)
Buffett’s been in the headlines many times over the last year regarding his OXY purchases. At the annual shareholder meeting, the Oracle of Omaha said that there were no plans to fully acquire the company despite the rapid buying of shares.
Keep an eye out for OXY’s upcoming quarterly release expected on May 9th after the market’s close; the Zacks Consensus EPS Estimate of $1.30 reflects a pullback of roughly 40% from the year-ago period.
Analysts haven’t been bullish for the quarter to be reported, with the quarterly EPS estimate being revised 15% lower since February of this year.
Image Source: Zacks Investment Research
A favorable operating environment has allowed OXY to generate substantial cash over the last year, helping it increase its dividend payout by nearly 40% during the period. The company generated $2.4 billion of free cash flow in its latest quarter, down year-over-year but well above pre-pandemic levels.
Image Source: Zacks Investment Research
Bottom Line
With the Oracle of Omaha making headlines over the weekend following the annual Berkshire Hathaway shareholder meeting, revisiting some of his favorite holdings is beneficial.
And all three stocks above – Apple AAPL, Bank of America BAC, and Occidental Petroleum OXY – are all examples of companies that the legendary investor has placed sizable bets on.
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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. | Similar to AAPL, Bank of America posted results that came in nicely above expectations in its latest release, exceeding the Zacks Consensus EPS Estimate by nearly 20% and delivering a positive 4.7% revenue surprise. Apple (AAPL) Apple is a long-time favorite of Buffett, reflecting the largest holding of Berkshire. And all three stocks above – Apple AAPL, Bank of America BAC, and Occidental Petroleum OXY – are all examples of companies that the legendary investor has placed sizable bets on. | Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple (AAPL) Apple is a long-time favorite of Buffett, reflecting the largest holding of Berkshire. Similar to AAPL, Bank of America posted results that came in nicely above expectations in its latest release, exceeding the Zacks Consensus EPS Estimate by nearly 20% and delivering a positive 4.7% revenue surprise. | Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple (AAPL) Apple is a long-time favorite of Buffett, reflecting the largest holding of Berkshire. Similar to AAPL, Bank of America posted results that came in nicely above expectations in its latest release, exceeding the Zacks Consensus EPS Estimate by nearly 20% and delivering a positive 4.7% revenue surprise. | Apple (AAPL) Apple is a long-time favorite of Buffett, reflecting the largest holding of Berkshire. Similar to AAPL, Bank of America posted results that came in nicely above expectations in its latest release, exceeding the Zacks Consensus EPS Estimate by nearly 20% and delivering a positive 4.7% revenue surprise. And all three stocks above – Apple AAPL, Bank of America BAC, and Occidental Petroleum OXY – are all examples of companies that the legendary investor has placed sizable bets on. |
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15961.0 | 2023-05-07 00:00:00 UTC | 3 No-Brainer Warren Buffett Stocks to Buy Right Now | AAPL | https://www.nasdaq.com/articles/3-no-brainer-warren-buffett-stocks-to-buy-right-now-5 | Warren Buffett is a name that's synonymous with investing success. Through his company, Berkshire Hathaway, he's managed to amass a fortune in the stock market rivaled by very few in history. Many Berkshire Hathaway shareholders have also gotten rich along the way.
Buffett's investing philosophy has remained simple yet is tried and true: Invest in great businesses and hold them for the long haul.
If you're looking for Buffett stocks to invest in right now, look no further than these three no-brainers.
1. Coca-Cola
Coca-Cola (NYSE: KO) is up the fourth-largest position in Berkshire Hathaway's portfolio, trailing behind only Apple, Bank of America, and Chevron. Buffett likes Coca-Cola because it's a stock he feels comfortable holding forever, primarily because of the company's iconic brand and unrivaled distribution.
Impressively, Coca-Cola has managed to get distribution in more than 200 countries and territories around the world, which isn't easy to do -- especially profitably. In the first quarter of this year, the company increased its organic revenue (revenue from its core business operations) by 12% year over year. That's a decline from its Q4 2022 year-over-year growth, but it still beat earnings-per-share predictions by 5.4%.
The company continues to add to its portfolio by investing in beverage categories outside of soft drinks. Coca-Cola's water and coffee segments unit case volume increased by 5% and 9%, respectively, outpacing its flagship Coca-Cola soda and other sparking soft drinks.
There's no doubt soft drinks are Coca-Cola's main money-maker, but its long-term growth will likely depend on how well it can compete in high-growth categories such as ready-to-drink alcohol. The good news is Coca-Cola's management has shown its willingness to make the necessary investments to maintain its dominance and expand its offerings.
You could argue that Coca-Cola is slightly overvalued, but if you're in it for the long term, you shouldn't be too concerned, given the company's track record. Add in the company's generous dividend, and you can be like Buffett and feel comfortable holding this stock forever.
2. Snowflake
Snowflake (NYSE: SNOW) was a rare investment in an initial public offering (IPO) for Berkshire Hathaway, which purchased about $735 million worth of shares of the company at its $120 IPO price in September 2020. Snowflake's stock is now just over $155, which isn't a loss for Berkshire Hathaway, but it's also a far cry from its November 2021 high of about $392.
Snowflake is a cloud data-warehousing platform that seems to have all the tools needed to be an industry leader for a long time. Buffett once said, "If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes," and Snowflake should be a stock investors feel comfortable holding for a decade-plus.
As of March 1, the company had just over 7,800 customers (up 31% year over year), with 330 spending at least $1 million annually with the company (up 79% year over year). And one way to know it's not just hype is Snowflake's 158% dollar-based net revenue retention rate. This means customers are spending 58% more each year with the company -- a key to longevity.
Snowflake hasn't reached net profitability yet, but its free cash flow is impressive. In its 2022 investor day presentation, the company said it wanted to achieve 25% free-cash-flow margins (free cash flow as a percentage of revenue) by its 2029 fiscal year. It managed to hit 25% this past fiscal year, so the company is headed in the right direction.
3. Visa
It's been a good few years for Visa (NYSE: V), which has outperformed the S&P 500 over the past five years.
Visa has one of Buffett's favorite qualities in a company: a huge competitive moat. In Visa's case, its competitive moat is its merchant reach. As of the fiscal second-quarter ended March 31, Visa had more than 100 million merchants in its global network.
Because Visa earns money by taking a percentage of the transactions it processes, it could take a slight hit if a recession occurs and causes people and businesses to slow spending. In the meantime, the company's been going strong. In fiscal Q2, Visa brought in $7.9 billion in revenue (up 11% year over year) and increased payments volume by 10%.
Despite its impressive reach, there's still plenty of room for Visa to grow, considering how many countries still operate predominantly with cash. The gap it has on competitors will be all but impossible to close anytime soon -- especially if Visa continues growing at the current rate.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Snowflake, and Visa. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Buffett likes Coca-Cola because it's a stock he feels comfortable holding forever, primarily because of the company's iconic brand and unrivaled distribution. There's no doubt soft drinks are Coca-Cola's main money-maker, but its long-term growth will likely depend on how well it can compete in high-growth categories such as ready-to-drink alcohol. In its 2022 investor day presentation, the company said it wanted to achieve 25% free-cash-flow margins (free cash flow as a percentage of revenue) by its 2029 fiscal year. | In the first quarter of this year, the company increased its organic revenue (revenue from its core business operations) by 12% year over year. Snowflake hasn't reached net profitability yet, but its free cash flow is impressive. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Snowflake, and Visa. | In the first quarter of this year, the company increased its organic revenue (revenue from its core business operations) by 12% year over year. Buffett once said, "If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes," and Snowflake should be a stock investors feel comfortable holding for a decade-plus. As of March 1, the company had just over 7,800 customers (up 31% year over year), with 330 spending at least $1 million annually with the company (up 79% year over year). | If you're looking for Buffett stocks to invest in right now, look no further than these three no-brainers. Visa It's been a good few years for Visa (NYSE: V), which has outperformed the S&P 500 over the past five years. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, Snowflake, and Visa. |
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15963.0 | 2023-05-06 00:00:00 UTC | Buffett says Apple is Berkshire portfolio's best business | AAPL | https://www.nasdaq.com/articles/buffett-says-apple-is-berkshire-portfolios-best-business | OMAHA/NEW YORK May 6 (Reuters) - Warren Buffett said on Saturday that Apple Inc AAPL.O is a better business than any other in Berkshire Hathaway Inc's BRKa.N portfolio.
"Apple is different than the other businesses we own. It just happens to be a better business," said Buffett during Berkshire's annual meeting in Omaha, Nebraska.
Berkshire revealed a $1 billion stake in Apple in May 2016, and by March 2023 had boosted that stake to $151 billion, accounting for 46% of its $328 billion equity portfolio,
Buffett has long praised Apple CEO Tim Cook, and viewed Apple less as a technology company and more as a consumer products company with a dominant product, the iPhone, that people want and need.
Berkshire has recently held a 5.6% stake in Apple, and Buffett said it could buy more.
(Reporting by Jonathan Stempel in Omaha, Nebraska and Carolina Mandl in New York; editing by Diane Craft)
(([email protected]; +1 (917) 891-4931;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | OMAHA/NEW YORK May 6 (Reuters) - Warren Buffett said on Saturday that Apple Inc AAPL.O is a better business than any other in Berkshire Hathaway Inc's BRKa.N portfolio. Berkshire revealed a $1 billion stake in Apple in May 2016, and by March 2023 had boosted that stake to $151 billion, accounting for 46% of its $328 billion equity portfolio, Buffett has long praised Apple CEO Tim Cook, and viewed Apple less as a technology company and more as a consumer products company with a dominant product, the iPhone, that people want and need. (Reporting by Jonathan Stempel in Omaha, Nebraska and Carolina Mandl in New York; editing by Diane Craft) (([email protected]; +1 (917) 891-4931;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | OMAHA/NEW YORK May 6 (Reuters) - Warren Buffett said on Saturday that Apple Inc AAPL.O is a better business than any other in Berkshire Hathaway Inc's BRKa.N portfolio. It just happens to be a better business," said Buffett during Berkshire's annual meeting in Omaha, Nebraska. Berkshire revealed a $1 billion stake in Apple in May 2016, and by March 2023 had boosted that stake to $151 billion, accounting for 46% of its $328 billion equity portfolio, Buffett has long praised Apple CEO Tim Cook, and viewed Apple less as a technology company and more as a consumer products company with a dominant product, the iPhone, that people want and need. | OMAHA/NEW YORK May 6 (Reuters) - Warren Buffett said on Saturday that Apple Inc AAPL.O is a better business than any other in Berkshire Hathaway Inc's BRKa.N portfolio. Berkshire revealed a $1 billion stake in Apple in May 2016, and by March 2023 had boosted that stake to $151 billion, accounting for 46% of its $328 billion equity portfolio, Buffett has long praised Apple CEO Tim Cook, and viewed Apple less as a technology company and more as a consumer products company with a dominant product, the iPhone, that people want and need. (Reporting by Jonathan Stempel in Omaha, Nebraska and Carolina Mandl in New York; editing by Diane Craft) (([email protected]; +1 (917) 891-4931;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | OMAHA/NEW YORK May 6 (Reuters) - Warren Buffett said on Saturday that Apple Inc AAPL.O is a better business than any other in Berkshire Hathaway Inc's BRKa.N portfolio. "Apple is different than the other businesses we own. It just happens to be a better business," said Buffett during Berkshire's annual meeting in Omaha, Nebraska. |
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15994.0 | 2023-05-05 00:00:00 UTC | GLOBAL MARKETS-Markets mixed as jobs data brightens outlook, rekindles inflation fears | AAPL | https://www.nasdaq.com/articles/global-markets-markets-mixed-as-jobs-data-brightens-outlook-rekindles-inflation-fears | By Naomi Rovnick
LONDON, May 5 (Reuters) - Global stocks edged higher and U.S. Treasuries sold off on Friday as strong U.S. jobs data brightened the economic outlook but forced traders to pare back expectations of Federal Reserve monetary policy easing after a long spate of rate hikes.
MSCI's broad index of global equities ..MIWO00000PUS eked out a 0.1% gain ahead of the New York market open, while Wall Street stock futures were firm.
Contracts ESc1 on the benchmark S&P 500 share index were 0.8% higher just ahead of the opening bell, also boosted by better than expected earnings overnight from Apple Inc AAPL.O. Contracts on the tech-heavy Nasdaq 100 NQc1 added 0.7%.
The yield on the two-year Treasury note US2YT-RR, which tracks interest rate expectations, added 16 basis points (bps) to 3.883% as the price of the debt instrument fell.
The benchmark 10-year Treasury yield US10YT=RR, which sets the tone for borrowing costs and asset pricing worldwide, was 11 bps higher at 3.4362%. Bond yields move inversely to prices.
The dollar, as measured against a basket of currencies, rose 0.3%, putting it on course for a slim weekly gain.
The official non-farms payroll report showed U.S. employers added 253,000 new jobs in April, up from 165,000 in March. Economists polled by Reuters expected 180,000 new jobs, in what would have been the smallest gain since December 2020.
Ahead of the jobs data markets were pricing for the Fed, which raised its main funds rate by 25 basis points (bps) to a range of 5%-5.25% on Wednesday, to pause at its next meeting in June and begin rate cuts from July FEDWATCH.
Immediately after the payrolls report, forecasts of a July cut had reduced significantly.
The Fed's recent hiking cycle, started early last year, has been its most aggressive since the 1980s in the face of high inflation, but was called into question with the collapse of Californian lender Silicon Valley Bank in March.
"We're only just entering the phase where monetary policy is having its maximum impact," said UBS head of European equity strategy Gerry Fowler said.
"We expect there will be job losses in the U.S. starting in the third quarter (of this year)," he said, with "concerns about credit quality and how that ripples through the banking system."
Los Angeles-based PacWest Bancorp PACW.O said it was exploring a sale, deepening falls in U.S. regional bank stocks. Shares in smaller U.S. banks .BKX have dropped 11.5% this week, after the weekend collapse of First Republic Bank.
In Europe, the yield on Germany's ten-year Bund DE10YT=RR, a benchmark for euro zone debt costs, rose 9bps to 2.29%.
The euro EUR=EBS dropped 0.4% to $1.0975, reversing a small gain against the dollar from earlier in the day. The Stoxx 600 index of European shares rose 0.6%, tracking Wall Street equity futures.
Spot gold XAU= lost 1.9% to $2,012 an ounce as bets of dollar weakness reduced.
Brent LCOc1 was at $74.49, up 2.7% on the day.
World FX rates YTDhttp://tmsnrt.rs/2egbfVh
Asian stock marketshttps://tmsnrt.rs/2zpUAr4
(Reporting by Naomi Rovnick. Additional reporting by Ankur Banarjee in Singapore. Editing by Jacqueline Wong, Robert Birsel, Keith Weir and Alexander Smith)
(([email protected];; Mobile - +44 7912 164 651; Twitter: @naomi_rovnick;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Contracts ESc1 on the benchmark S&P 500 share index were 0.8% higher just ahead of the opening bell, also boosted by better than expected earnings overnight from Apple Inc AAPL.O. By Naomi Rovnick LONDON, May 5 (Reuters) - Global stocks edged higher and U.S. Treasuries sold off on Friday as strong U.S. jobs data brightened the economic outlook but forced traders to pare back expectations of Federal Reserve monetary policy easing after a long spate of rate hikes. The yield on the two-year Treasury note US2YT-RR, which tracks interest rate expectations, added 16 basis points (bps) to 3.883% as the price of the debt instrument fell. | Contracts ESc1 on the benchmark S&P 500 share index were 0.8% higher just ahead of the opening bell, also boosted by better than expected earnings overnight from Apple Inc AAPL.O. MSCI's broad index of global equities ..MIWO00000PUS eked out a 0.1% gain ahead of the New York market open, while Wall Street stock futures were firm. The yield on the two-year Treasury note US2YT-RR, which tracks interest rate expectations, added 16 basis points (bps) to 3.883% as the price of the debt instrument fell. | Contracts ESc1 on the benchmark S&P 500 share index were 0.8% higher just ahead of the opening bell, also boosted by better than expected earnings overnight from Apple Inc AAPL.O. By Naomi Rovnick LONDON, May 5 (Reuters) - Global stocks edged higher and U.S. Treasuries sold off on Friday as strong U.S. jobs data brightened the economic outlook but forced traders to pare back expectations of Federal Reserve monetary policy easing after a long spate of rate hikes. The yield on the two-year Treasury note US2YT-RR, which tracks interest rate expectations, added 16 basis points (bps) to 3.883% as the price of the debt instrument fell. | Contracts ESc1 on the benchmark S&P 500 share index were 0.8% higher just ahead of the opening bell, also boosted by better than expected earnings overnight from Apple Inc AAPL.O. The yield on the two-year Treasury note US2YT-RR, which tracks interest rate expectations, added 16 basis points (bps) to 3.883% as the price of the debt instrument fell. Immediately after the payrolls report, forecasts of a July cut had reduced significantly. |
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16051.0 | 2023-05-04 00:00:00 UTC | US STOCKS-Futures waver as PacWest slide offsets Fed pause optimism | AAPL | https://www.nasdaq.com/articles/us-stocks-futures-waver-as-pacwest-slide-offsets-fed-pause-optimism | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Futures: Dow up 0.01%, S&P down 0.03%, Nasdaq up 0.22%
May 4 (Reuters) - U.S. stock index futures wavered on Thursday as PacWest Bancorp exploring strategic options deepened concerns about the health of regional banks, while investors drew comfort from the Federal Reserve signaling a likely pause in its interest rate hikes.
The central bank on Wednesday raised rates by 25 basis points to the 5.00%-5.25% range and signaled a pause in its policy tightening, giving officials time to assess the recent bank failures, U.S. debt ceiling situation and sticky inflation.
U.S. stocks ended lower on Wednesday after Fed Chair Jerome Powell said that it was too soon to say with certainty that the rate-hike cycle was over as inflation remains the chief concern.
U.S. interest rate futures priced in a pause in tightening at the June and July policy meetings, according to the CME's FedWatch tool, and also factored in a more than 50% chance of rate cuts at the September meeting.
The Fed over the past 14 months has raised rates by 500 basis points to tame price pressures in its most aggressive policy tightening since the 1980s.
PacWest Bancorp PACW.O tumbled 36.3% in premarket trading following talks with potential partners and investors about strategic options after shares of the regional lender and its peers got hammered amid fears of a worsening banking crisis.
This comes after regulators seized First Republic Bank, with JPMorgan Chase JPM.N agreeing to buy majority of the assets, marking the largest U.S. bank failure since the 2008 financial crisis.
Shares of other regional lenders such as KeyCorp KEY.N, Valley National Bancorp VLY.O and Zions Bancorp ZION.O fell between 4.5% and 6.6%, while Western Alliance Bancorp WAL.N dropped 17.2% despite noting that it had not experienced unusual deposit outflows following the sale of First Republic.
Investor concerns around banks have remained despite actions by regulators to contain a banking crisis that kicked off with the collapse of two mid-sized U.S. lenders in March.
The KBW Regional Banking index .KRX and S&P 500 Banks index .SPXBK have lost around 29% and 15% so far in 2023.
Major technology and growth stocks such as Meta Platforms Inc META.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O edged up between 0.3% and 0.8% in premarket trading on Thursday, helped by a fall in U.S. Treasury yields.
Although the end of Fed's market-punishing rate-hike cycle may be in sight, uncertainty over stock valuations and the economic outlook are keeping investors on alert for more turbulence ahead.
Moderna Inc MRNA.O, Paramount Global PARA.O, Kellogg Co K.N and Peloton Interactive Inc PTON.O are scheduled to report quarterly results before markets open. Apple Inc AAPL.O results are due after the closing bell.
Investors will also monitor weekly jobless claims for further clues on the state of the labor market.
At 5:27 a.m. ET, Dow e-minis 1YMcv1 were up 3 points, or 0.01%, S&P 500 e-minis EScv1 were down 1.25 points, or 0.03%, and Nasdaq 100 e-minis NQcv1 were up 28.75 points, or 0.22%.
Qualcomm Inc QCOM.O slumped 6.7% after third-quarter forecasts missed estimates, while Etsy Inc ETSY.O gained 3% on beating expectations for quarterly revenue.
Stocks and the Fedhttps://tmsnrt.rs/3AUufR0
(Reporting by Ankika Biswas in Bengaluru; Editing by Shounak Dasgupta)
(([email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Inc AAPL.O results are due after the closing bell. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures: Dow up 0.01%, S&P down 0.03%, Nasdaq up 0.22% May 4 (Reuters) - U.S. stock index futures wavered on Thursday as PacWest Bancorp exploring strategic options deepened concerns about the health of regional banks, while investors drew comfort from the Federal Reserve signaling a likely pause in its interest rate hikes. PacWest Bancorp PACW.O tumbled 36.3% in premarket trading following talks with potential partners and investors about strategic options after shares of the regional lender and its peers got hammered amid fears of a worsening banking crisis. | Apple Inc AAPL.O results are due after the closing bell. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures: Dow up 0.01%, S&P down 0.03%, Nasdaq up 0.22% May 4 (Reuters) - U.S. stock index futures wavered on Thursday as PacWest Bancorp exploring strategic options deepened concerns about the health of regional banks, while investors drew comfort from the Federal Reserve signaling a likely pause in its interest rate hikes. The central bank on Wednesday raised rates by 25 basis points to the 5.00%-5.25% range and signaled a pause in its policy tightening, giving officials time to assess the recent bank failures, U.S. debt ceiling situation and sticky inflation. | Apple Inc AAPL.O results are due after the closing bell. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Futures: Dow up 0.01%, S&P down 0.03%, Nasdaq up 0.22% May 4 (Reuters) - U.S. stock index futures wavered on Thursday as PacWest Bancorp exploring strategic options deepened concerns about the health of regional banks, while investors drew comfort from the Federal Reserve signaling a likely pause in its interest rate hikes. The central bank on Wednesday raised rates by 25 basis points to the 5.00%-5.25% range and signaled a pause in its policy tightening, giving officials time to assess the recent bank failures, U.S. debt ceiling situation and sticky inflation. | Apple Inc AAPL.O results are due after the closing bell. The Fed over the past 14 months has raised rates by 500 basis points to tame price pressures in its most aggressive policy tightening since the 1980s. PacWest Bancorp PACW.O tumbled 36.3% in premarket trading following talks with potential partners and investors about strategic options after shares of the regional lender and its peers got hammered amid fears of a worsening banking crisis. |
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16078.0 | 2023-05-03 00:00:00 UTC | Is iShares U.S. Equity Factor ETF (LRGF) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-ishares-u.s.-equity-factor-etf-lrgf-a-strong-etf-right-now-4 | Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the iShares U.S. Equity Factor ETF (LRGF) is a smart beta exchange traded fund launched on 04/28/2015.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Blackrock. It has amassed assets over $1.23 billion, making it one of the largest ETFs in the Style Box - All Cap Value. Before fees and expenses, this particular fund seeks to match the performance of the MSCI USA Diversified Multiple-Factor Index.
The STOXX U.S. Equity Factor Index composes of U.S. large and mid-capitalization stocks that have favourable exposure to target style factors subject to constraints.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.72%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
LRGF's heaviest allocation is in the Information Technology sector, which is about 27.60% of the portfolio. Its Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.63% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
Its top 10 holdings account for approximately 25.07% of LRGF's total assets under management.
Performance and Risk
So far this year, LRGF has added about 6.18%, and is up about 0.94% in the last one year (as of 05/03/2023). During this past 52-week period, the fund has traded between $36.22 and $43.47.
The fund has a beta of 0.98 and standard deviation of 19.06% for the trailing three-year period, which makes LRGF a medium risk choice in this particular space. With about 315 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares U.S. Equity Factor ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Dimensional U.S. Targeted Value ETF (DFAT) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Dimensional U.S. Targeted Value ETF has $7.38 billion in assets, iShares Core S&P U.S. Value ETF has $13.15 billion. DFAT has an expense ratio of 0.29% and IUSV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.63% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares U.S. Equity Factor ETF (LRGF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the iShares U.S. Equity Factor ETF (LRGF) is a smart beta exchange traded fund launched on 04/28/2015. | Click to get this free report iShares U.S. Equity Factor ETF (LRGF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.63% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the iShares U.S. Equity Factor ETF (LRGF) is a smart beta exchange traded fund launched on 04/28/2015. | Click to get this free report iShares U.S. Equity Factor ETF (LRGF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.63% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the iShares U.S. Equity Factor ETF (LRGF) is a smart beta exchange traded fund launched on 04/28/2015. | Click to get this free report iShares U.S. Equity Factor ETF (LRGF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares Core S&P U.S. Value ETF (IUSV): ETF Research Reports Dimensional U.S. Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.63% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the iShares U.S. Equity Factor ETF (LRGF) is a smart beta exchange traded fund launched on 04/28/2015. |
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16097.0 | 2023-05-02 00:00:00 UTC | 2 Stocks to Hold for the Next 20 Years | AAPL | https://www.nasdaq.com/articles/2-stocks-to-hold-for-the-next-20-years-4 | There are some companies whose strong brand recognition and consumer loyalty allow you to invest in their stocks with minimal hesitation that it will pay off over the long term. Recent macroeconomic headwinds and market challenges have made it crucial to invest in secure growth stocks like this, with Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) two great options.
These companies are dominating their respective industries with substantial market shares. Apple has spent years at the top of consumer electronics, while Disney is celebrating its 100th year of entertaining the masses in 2023. These companies operate in two never-ending markets, producing commodities that are unlikely to slow in demand anytime soon.
So, here are two stocks to hold for the next 20 years.
1. Apple
This tech behemoth has achieved the largest market cap in the world at $2.7 trillion thanks to its focus on quality products presented in an interconnected ecosystem. Apple's strategy makes it difficult to use competing products that don't offer the same ease of use and connectivity, which has built immense brand loyalty among consumers.
Investor tycoon Warren Buffett said in early April, "If someone offered you $10,000 to never buy an iPhone again, you wouldn't take it." And Buffett's sentiments ring true for many consumers who would have no problem switching brands of vehicles or other appliances but are reluctant to stray from Apple. That level of consumer allegiance is rare and reduces volatility in the company's business and stock.
Moreover, Apple's dominance in consumer tech led it to attract many customers to its swiftly expanding services business. The iPhone manufacturer's library of services includes Apple TV+, Music, iCloud, Arcade, News+, and more. These platforms offer attractive profit margins, hitting 72% in fiscal 2022, while products' profit margins reached 36%. The digital business fortifies Apple's earnings by allowing it to lean less on its product income amid temporary headwinds.
Apple shares soared about 315% in the last five years and over 1,000% in the last decade. The company has a reputation for consistent gains, which makes it a great option to hold over several decades.
2. The Walt Disney Company
Disney has had a challenging few years, to say the least, with the COVID-19 pandemic shuttering its box office and parks businesses for nearly two years. Then, macroeconomic hurdles last year made it costly to develop its streaming business. As a result, the company's shares plunged 44% last year. Disney has partially recovered in 2023, but recent headwinds have been detrimental to its long-term growth, with its stock barely up 1% over the last five years.
However, unavoidable challenges in recent years are unlikely to repeat, making its stock a bargain buy right now. In February, Disney CEO Bob Iger laid out a plan to get the company back on track, targeting $5.5 billion in cost savings, with the majority coming from reductions in content spending. Meanwhile, the company expects to cut about 7,000 jobs by summer, including 15% of its entertainment division. The cuts will likely pay off substantially as Disney strives to achieve profitability with its streaming service, Disney+, by 2024.
Disney shares climbed about 61% over the last decade despite recent hurdles. The company is a king of entertainment, with its monster brand increasing the reliability of its stock.
Additionally, its price/earnings-to-growth ratio of 0.9 suggests that projected growth is not currently priced into its shares. With multiple blockbusters due to premiere this year, budget cuts, and a thriving parks business, that figure aligns with the company's potential. As a result, now is an excellent time to buy Disney stock and enjoy the gains over the next 20 years and beyond.
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Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Recent macroeconomic headwinds and market challenges have made it crucial to invest in secure growth stocks like this, with Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) two great options. Apple's strategy makes it difficult to use competing products that don't offer the same ease of use and connectivity, which has built immense brand loyalty among consumers. In February, Disney CEO Bob Iger laid out a plan to get the company back on track, targeting $5.5 billion in cost savings, with the majority coming from reductions in content spending. | Recent macroeconomic headwinds and market challenges have made it crucial to invest in secure growth stocks like this, with Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) two great options. The Motley Fool has positions in and recommends Apple and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. | Recent macroeconomic headwinds and market challenges have made it crucial to invest in secure growth stocks like this, with Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) two great options. Apple has spent years at the top of consumer electronics, while Disney is celebrating its 100th year of entertaining the masses in 2023. The Walt Disney Company Disney has had a challenging few years, to say the least, with the COVID-19 pandemic shuttering its box office and parks businesses for nearly two years. | Recent macroeconomic headwinds and market challenges have made it crucial to invest in secure growth stocks like this, with Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) two great options. So, here are two stocks to hold for the next 20 years. Apple shares soared about 315% in the last five years and over 1,000% in the last decade. |
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16120.0 | 2023-05-01 00:00:00 UTC | 2 Red Flags for Broadcom's Future | AAPL | https://www.nasdaq.com/articles/2-red-flags-for-broadcoms-future | Broadcom (NASDAQ: AVGO) is often considered a safe blue chip tech stock for conservative income investors. It produces a wide range of chips for the data center, networking, broadband, wireless, storage, and industrial markets, and it also sells infrastructure software through its CA Technologies and Symantec subsidiaries.
Its revenue has grown at a compound annual growth rate (CAGR) of 13% between fiscal 2017 and fiscal 2022 (which ended last October), as its adjusted earnings per share (EPS) rose at a CAGR of 19%. Its diversification shielded it from the PC market's post-pandemic slowdown, and its stock still looks cheap at 15 times forward earnings despite rallying nearly 170% over the past five years. It also pays a forward dividend yield of 3%, and that payout should consume less than half of its projected EPS this year.
Image source: Getty Images.
I've praised Broadcom's strengths in previous articles, but investors should also be aware of its less obvious weaknesses. So today, I'll dig deeper and focus on two of those challenges: its heavy dependence on Apple (NASDAQ: AAPL) and the regulatory headwinds for its planned takeover of the cloud software giant VMware (NYSE: VMW).
Broadcom's relationship with Apple
Broadcom provides Wi-Fi, Bluetooth, GPS, wireless charging, and radio frequency chips for Apple's iPhones, iPads, Macs, and other devices. Apple accounted for 20% of Broadcom's revenue in fiscal 2022, making it the chipmaker's top customer. Back in early 2020, Broadcom secured several contracts with Apple, which were expected to pay out about $15 billion in revenue through 2023. However, there's no guarantee that Apple will renew those contracts once they expire.
Instead, several reports from earlier this year suggested that Apple could replace Broadcom's Wi-Fi and Bluetooth combo chips with its own first-party chips by 2025. That potential switch, along with the iPhone's slowing growth in recent years, indicates that Broadcom needs to proactively diversify its business away from Apple.
Broadcom isn't the only chipmaker that faces the potential loss of Apple as a top customer. Qualcomm, which Broadcom nearly acquired via a hostile takeover in 2018, also faces the looming replacement of its iPhone modems.
The VMware deal could be in trouble
To pivot away from Apple and other smartphone makers, Broadcom expanded into the infrastructure software market with its acquisitions of CA in 2018 and Symantec's enterprise security unit in 2019. But even after integrating both companies, Broadcom still only generated 29% of its revenue from infrastructure software in fiscal 2022.
To accelerate that expansion, Broadcom agreed to buy Vmware for $61 billion last year. At the time, it expected to close the deal in fiscal 2023. However, that acquisition has run into a gauntlet of regulatory challenges over the past year.
Antitrust regulators in the U.S., U.K., and Europe have all been closely scrutinizing the deal, and a recent decision by the Competition and Markets Authority (CMA) in the U.K. to block Microsoft's planned acquisition of Activision Blizzard raises some serious doubts about Broadcom's ability to seal the deal.
If Broadcom actually buys VMware, it expects to generate nearly half of its annual revenue from software and significantly reduce its dependence on chips. It also believes the acquisition will add roughly $8.5 billion in pro forma earnings before interest, taxes, depreciation, and amortization (EBITDA) to its bottom line within the first three years. By comparison, Broadcom generated an adjusted EBITDA of $21 billion on its own in fiscal 2022.
Do these risks make Broadcom a less attractive stock?
I believe Broadcom can weather the loss of Apple if it acquires VMware. But if antitrust regulators block the VMware deal, I'd avoid investing in Broadcom because it could suffer severe revenue declines in fiscal 2025 and beyond.
However, some of those doubts already seem to be priced into its low valuation -- and Broadcom could still take the cash and make smaller acquisitions or execute some big buybacks to appease investors if the deal falls through. Therefore, Broadcom isn't doomed yet, but investors who are concerned about Apple or VMware should probably stick with more conservative tech stocks until it resolves those near-term challenges.
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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 today, I'll dig deeper and focus on two of those challenges: its heavy dependence on Apple (NASDAQ: AAPL) and the regulatory headwinds for its planned takeover of the cloud software giant VMware (NYSE: VMW). It produces a wide range of chips for the data center, networking, broadband, wireless, storage, and industrial markets, and it also sells infrastructure software through its CA Technologies and Symantec subsidiaries. The VMware deal could be in trouble To pivot away from Apple and other smartphone makers, Broadcom expanded into the infrastructure software market with its acquisitions of CA in 2018 and Symantec's enterprise security unit in 2019. | So today, I'll dig deeper and focus on two of those challenges: its heavy dependence on Apple (NASDAQ: AAPL) and the regulatory headwinds for its planned takeover of the cloud software giant VMware (NYSE: VMW). Antitrust regulators in the U.S., U.K., and Europe have all been closely scrutinizing the deal, and a recent decision by the Competition and Markets Authority (CMA) in the U.K. to block Microsoft's planned acquisition of Activision Blizzard raises some serious doubts about Broadcom's ability to seal the deal. If Broadcom actually buys VMware, it expects to generate nearly half of its annual revenue from software and significantly reduce its dependence on chips. | So today, I'll dig deeper and focus on two of those challenges: its heavy dependence on Apple (NASDAQ: AAPL) and the regulatory headwinds for its planned takeover of the cloud software giant VMware (NYSE: VMW). Broadcom's relationship with Apple Broadcom provides Wi-Fi, Bluetooth, GPS, wireless charging, and radio frequency chips for Apple's iPhones, iPads, Macs, and other devices. The VMware deal could be in trouble To pivot away from Apple and other smartphone makers, Broadcom expanded into the infrastructure software market with its acquisitions of CA in 2018 and Symantec's enterprise security unit in 2019. | So today, I'll dig deeper and focus on two of those challenges: its heavy dependence on Apple (NASDAQ: AAPL) and the regulatory headwinds for its planned takeover of the cloud software giant VMware (NYSE: VMW). Back in early 2020, Broadcom secured several contracts with Apple, which were expected to pay out about $15 billion in revenue through 2023. Broadcom isn't the only chipmaker that faces the potential loss of Apple as a top customer. |
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16124.0 | 2023-04-30 00:00:00 UTC | Where Will Apple Stock Be in 3 Years? | AAPL | https://www.nasdaq.com/articles/where-will-apple-stock-be-in-3-years-0 | Apple (NASDAQ: AAPL) has undoubtedly been one of the best investments anyone could've made over the past decade, as its shares are up an incredible 1,000% since late April 2013. Even legendary investor Warren Buffett has benefited, as Berkshire Hathaway has been a shareholder for over seven years now.
But with a market capitalization of $2.6 trillion (as of this writing), investors are likely wondering what's in store for this dominant enterprise as we look ahead. Along the same line, where will Apple stock be in three years?
Apple's ubiquity
Investors are all too familiar with just how important a single product is to Apple's fortunes. The iPhone represented 56% of total company revenue in the latest fiscal quarter (Q1 2023 ended Dec. 31). And it's the gateway product that brings consumers in.
"We're proud to now have over 2 billion active devices in our installed base," CFO Luca Maestri said on the Q1 2023 earnings call. This massive installed base has doubled over the past seven years, a remarkable feat that exemplifies Apple's ubiquity. While the majority of these devices are iPhones, it's worth noting the success of Apple's other products.
Apple isn't resting on its laurels. It's continuing what it has long been known for -- a relentless focus on innovation. Refreshing existing products, like the iPhone, MacBook, or Apple Watch, is always a part of the game plan. But sometimes, completely new products are introduced. The most anticipated product release in the near term is a headset that combines augmented reality and virtual reality, which is set to launch in June. There are also rumors swirling that Apple could be working on a phone that folds.
There's possibly an even bigger product on the horizon that can be an absolute game changer. It is still believed that Apple is working on an electric vehicle. Unsurprisingly, information about this is scarce, but it's hard to imagine a scenario where an automobile designed and made by Apple, with integration into the software ecosystem, doesn't immediately become a hit. And because the car market is gigantic, this has the potential to move the needle for the business.
Although Apple isn't usually the first to bring a new product to market, it has proven that what it offers can be the best. Finding ways to have a higher number of active devices across the world, whether it's phones, tablets, headsets, or cars, feeds into Apple's powerful ecosystem, making its economic moat that much stronger.
Besides beautiful hardware products, Apple's services segment is becoming a more important part of the business that drives customer loyalty and stickiness. In the latest fiscal quarter, services accounted for 18% of total sales, a percentage that has increased steadily over time. This segment carries a gross margin of over 70%, much higher than the products group, so investors can expect Apple's profitability to rise in the years ahead.
Moreover, Apple's ongoing foray into financial services has been impressive, with Apple Pay, Apple Card, and now a high-yield savings account added to the mix. The business attracts a more affluent customer base, so these offerings are poised to do well in the long run, providing Apple with another key revenue driver.
Apple's shareholder focus
With its gargantuan size and remarkable historical stock performance, it's hard not to like this company. With the combination of more active devices, proven pricing power, and a burgeoning services segment, Apple's revenue should continue marching higher. And with this, greater profits will follow. Berkshire Hathaway has already made a killing owning the company, and as of Dec. 31, Apple constituted 44% of the overall portfolio. As a result, Buffett is clearly still bullish on the stock.
And for good reason. Apple has rewarded its shareholders in spectacular fashion. The share price is up 132% in just the last three years. And since the start of fiscal 2020, Apple has paid over $47 billion in dividends. But if that isn't enough, the business continues repurchasing shares like there's no tomorrow. Over the past 13 fiscal quarters, Apple has spent a whopping $267 billion on buybacks.
Clearly, this is a cash machine that is well positioned to keep up the outstanding fundamental performance investors have become accustomed to. And this bodes well for the stock.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) has undoubtedly been one of the best investments anyone could've made over the past decade, as its shares are up an incredible 1,000% since late April 2013. Unsurprisingly, information about this is scarce, but it's hard to imagine a scenario where an automobile designed and made by Apple, with integration into the software ecosystem, doesn't immediately become a hit. Finding ways to have a higher number of active devices across the world, whether it's phones, tablets, headsets, or cars, feeds into Apple's powerful ecosystem, making its economic moat that much stronger. | Apple (NASDAQ: AAPL) has undoubtedly been one of the best investments anyone could've made over the past decade, as its shares are up an incredible 1,000% since late April 2013. The iPhone represented 56% of total company revenue in the latest fiscal quarter (Q1 2023 ended Dec. 31). In the latest fiscal quarter, services accounted for 18% of total sales, a percentage that has increased steadily over time. | Apple (NASDAQ: AAPL) has undoubtedly been one of the best investments anyone could've made over the past decade, as its shares are up an incredible 1,000% since late April 2013. Apple's ubiquity Investors are all too familiar with just how important a single product is to Apple's fortunes. This segment carries a gross margin of over 70%, much higher than the products group, so investors can expect Apple's profitability to rise in the years ahead. | Apple (NASDAQ: AAPL) has undoubtedly been one of the best investments anyone could've made over the past decade, as its shares are up an incredible 1,000% since late April 2013. Although Apple isn't usually the first to bring a new product to market, it has proven that what it offers can be the best. This segment carries a gross margin of over 70%, much higher than the products group, so investors can expect Apple's profitability to rise in the years ahead. |
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16130.0 | 2023-04-29 00:00:00 UTC | Spotify Keeps Beating Expectations. Is It Time to Buy? | AAPL | https://www.nasdaq.com/articles/spotify-keeps-beating-expectations.-is-it-time-to-buy | Shares of Spotify (NYSE: SPOT) recently ran up to a 52-week high thanks to another well-received earnings report. Markets cheered because the company's first-quarter results blew the doors off previous expectations.
In January, Spotify told investors to expect around 11 million new monthly active users during the first three months of 2023. Instead, the music streaming service added a whopping 26 million monthly active users. That made it the company's best first quarter ever for member additions.
This wasn't the first time in recent memory that Spotify blasted past expectations, and investors have noticed. The stock has risen around 69% since the beginning of 2023. Is it still a good stock to buy following a giant run-up this year? Let's look a little closer at recent results to find out.
What competition?
Unlike video streamers, which produce original content, the music available from one subscription-based service to the next is nearly identical from the consumer's perspective. Despite the commoditization you might expect in this niche, Spotify is holding its share of the market.
Its biggest competitors, Amazon and Apple, didn't share new-user numbers from their music businesses in their first-quarter reports. But if they were taking market share from Spotify, they would most likely boast about it to investors.
In the first quarter, Spotify reported that revenue from premium subscribers rose 14% year over year to 2.7 billion euros ($3 billion). Advertising budgets are under pressure from a looming recession, but revenue from the platform's ad-supported service still grew 17% year over year.
The company is no longer the only music streamer that includes access to podcasts, but that didn't stop first-quarter podcast revenue from rising 20% year over year. At the end of March, the number of publishers and shows participating in the Spotify Audience Network was up by a double-digit percentage compared to the end of last December.
The bad news
Over the past few years, revenue at Spotify has more or less kept up with operating expenses, but not lately. The company hired a lot of new people in 2022, but in January, it turned around and laid off around 6% of its workforce.
SPOT revenue (TTM) data by YCharts. TTM = trailing 12 months.
First-quarter operating expenses jumped 36% year over year, which was much faster than revenue. Altogether, the company's operations lost 156 million euros ($172 million) in the first quarter.
The layoffs Spotify announced in January haven't had a chance to work their magic on the bottom line. It's also been a long time since the company raised subscription prices. With 210 million paid subscribers, a small price increase could quickly push its bottom line into positive territory.
A buy now?
At recent prices, you can buy shares of Spotify for 2.1 times trailing sales. That's a much lower price than investors saw during its first few years as a publicly listed company.
When I bought Spotify stock a little over a year ago, it was trading at a much lower price-to-sales multiple, and revenue had been outpacing operating expenses. I'm not about to sell my shares, but I'm probably not going to buy more until recent cost-cutting and price increases actually allow the company to report a sustainable net profit.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Its biggest competitors, Amazon and Apple, didn't share new-user numbers from their music businesses in their first-quarter reports. With 210 million paid subscribers, a small price increase could quickly push its bottom line into positive territory. When I bought Spotify stock a little over a year ago, it was trading at a much lower price-to-sales multiple, and revenue had been outpacing operating expenses. | In January, Spotify told investors to expect around 11 million new monthly active users during the first three months of 2023. In the first quarter, Spotify reported that revenue from premium subscribers rose 14% year over year to 2.7 billion euros ($3 billion). At recent prices, you can buy shares of Spotify for 2.1 times trailing sales. | In the first quarter, Spotify reported that revenue from premium subscribers rose 14% year over year to 2.7 billion euros ($3 billion). The company is no longer the only music streamer that includes access to podcasts, but that didn't stop first-quarter podcast revenue from rising 20% year over year. When I bought Spotify stock a little over a year ago, it was trading at a much lower price-to-sales multiple, and revenue had been outpacing operating expenses. | At recent prices, you can buy shares of Spotify for 2.1 times trailing sales. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Spotify Technology wasn't one of them! That's right -- they think these 10 stocks are even better buys. |
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16138.0 | 2023-04-28 00:00:00 UTC | Is Meta Platforms Stock a Buy? | AAPL | https://www.nasdaq.com/articles/is-meta-platforms-stock-a-buy-2 | Meta Platforms' (NASDAQ: META) stock jumped 12% during after-hours trading on April 26 following its first-quarter report. The social media giant's revenue rose 3% year over year to $28.65 billion and beat analysts' estimates by $990 million.
Its net income fell 24% to $5.71 billion. Its earnings per share (EPS), which was buoyed by $9.22 billion in buybacks during the quarter, dropped 19% to $2.20 but still cleared the consensus forecast by $0.23.
Those better-than-expected numbers brought back some bulls, but Meta's stock remains nearly 40% below its all-time high. Is it time to hop aboard before Meta's stock recovers, or does it still face too many near-term headwinds?
Image source: Meta Platforms.
Meta's advertising business is stabilizing
Meta's advertising business, which accounted for 98% of its revenues in Q1, suffered a severe slowdown over the past year. After rising 21% in 2020 and 37% in 2021, its ad revenues declined 1% in 2022.
That deceleration was caused by Apple's (NASDAQ: AAPL) privacy changes on iOS (which made it difficult for Facebook and Instagram to deliver targeted ads driven by third-party data), stiff competition from ByteDance's short video platform TikTok, and the macro headwinds for the broader advertising industry. But in Q1, Meta's advertising revenues rose 4% year over year and finally ended the segment's three-quarter streak of declining revenues.
METRIC
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Meta ad revenue
$27.0B
$28.2B
$27.2B
$32.2B
$28.1B
Growth (YOY)
6%
(2%)
(4%)
(4%)
4%
Data source: Meta Platforms. YOY = Year-over-year.
Meta mainly attributed that acceleration to elevated spending from Chinese e-commerce companies, which ramped up their ad purchases on Facebook and Instagram to reach more overseas buyers. That growth offset the macro-induced softness of the financial and tech verticals. A 26% increase in its ad impressions also offset a 17% decline in average ad prices.
Meta's ecosystem also continues to expand. Its Family of Apps (Facebook, Instagram, Messenger, and WhatsApp) served 3.81 billion people on a monthly basis, representing 5% growth from a year earlier. Within that total, Facebook's monthly active users (MAUs) grew 2% year over year to 2.99 billion. That ongoing expansion ensures that Meta should remain a top advertising platform alongside Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google for the foreseeable future.
As for Apple's iOS changes, Meta continues to pivot from third-party data to first-party data (gathered within its own apps) to craft more effective targeted ads. To counter TikTok, Meta is expanding its short video platform Reels across Facebook and Instagram. During the conference call, CEO Mark Zuckerberg said its users were "resharing Reels more than two billion times every day" -- and that figure had doubled over the past six months.
But its margins are still declining
The stabilization of Meta's advertising business is encouraging, but its total operating margin still fell six percentage points year over year to 25% in Q1. Even if we exclude $1.14 billion in restructuring charges related to its recent layoffs, its operating margin would still have shrunk by two percentage points.
That contraction was largely caused by its Reality Labs segment, which houses its virtual reality and augmented reality (VR/AR) products. Its Reality Labs revenues declined 51% year over year to $339 million as it sold fewer Quest 2 headsets, and the segment's operating loss widened from $2.96 billion to $3.99 billion.
By comparison, Meta's Family of Apps division generated an operating profit of $11.2 billion in Q1, and its operating margin only dipped two percentage points year over year to 40%. That's why some investors argue that Meta should either shutter or spin off the struggling Reality Labs segment to stabilize its margins.
But that won't happen anytime soon. During the call, CFO Susan Li said Meta expected the Reality Labs segment's operating losses to "increase year over year in 2023." Zuckerberg also noted that "building the metaverse is a long-term project."
Meta's commitment to the metaverse will likely remain a divisive topic, but investors should note that Alphabet also posted an operating margin of 25% in Q1. Just as Meta subsidizes the growth of Reality Labs with its higher-margin advertising business, Alphabet subsidizes the expansion of its lower-margin cloud and hardware divisions with its core advertising business. Therefore, Meta's metaverse ambitions don't necessarily make it a worse investment than Alphabet -- as long as you believe Meta can actually turn VR into the next big computing platform.
Brighter days could be ahead
Meta expects its revenue to rise 2% to 11% year over year in the second quarter, compared to the consensus forecast for 2% growth. It also plans to continue repurchasing more shares, and its $37.4 billion in cash, cash equivalents, and marketable securities gives it plenty of room for fresh investments.
Analysts expect Meta's revenue and earnings to rise 5% and 16%, respectively, for the full year. The stock still looks reasonably valued at 22 times forward earnings, and it could easily recover from its slump if the macro environment improves. Therefore, I believe Meta is still worth buying before it overcomes its near-term challenges.
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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 deceleration was caused by Apple's (NASDAQ: AAPL) privacy changes on iOS (which made it difficult for Facebook and Instagram to deliver targeted ads driven by third-party data), stiff competition from ByteDance's short video platform TikTok, and the macro headwinds for the broader advertising industry. Meta mainly attributed that acceleration to elevated spending from Chinese e-commerce companies, which ramped up their ad purchases on Facebook and Instagram to reach more overseas buyers. During the conference call, CEO Mark Zuckerberg said its users were "resharing Reels more than two billion times every day" -- and that figure had doubled over the past six months. | That deceleration was caused by Apple's (NASDAQ: AAPL) privacy changes on iOS (which made it difficult for Facebook and Instagram to deliver targeted ads driven by third-party data), stiff competition from ByteDance's short video platform TikTok, and the macro headwinds for the broader advertising industry. During the call, CFO Susan Li said Meta expected the Reality Labs segment's operating losses to "increase year over year in 2023." Just as Meta subsidizes the growth of Reality Labs with its higher-margin advertising business, Alphabet subsidizes the expansion of its lower-margin cloud and hardware divisions with its core advertising business. | That deceleration was caused by Apple's (NASDAQ: AAPL) privacy changes on iOS (which made it difficult for Facebook and Instagram to deliver targeted ads driven by third-party data), stiff competition from ByteDance's short video platform TikTok, and the macro headwinds for the broader advertising industry. Meta's advertising business is stabilizing Meta's advertising business, which accounted for 98% of its revenues in Q1, suffered a severe slowdown over the past year. But its margins are still declining The stabilization of Meta's advertising business is encouraging, but its total operating margin still fell six percentage points year over year to 25% in Q1. | That deceleration was caused by Apple's (NASDAQ: AAPL) privacy changes on iOS (which made it difficult for Facebook and Instagram to deliver targeted ads driven by third-party data), stiff competition from ByteDance's short video platform TikTok, and the macro headwinds for the broader advertising industry. Growth (YOY) 6% (2%) (4%) (4%) 4% Data source: Meta Platforms. But its margins are still declining The stabilization of Meta's advertising business is encouraging, but its total operating margin still fell six percentage points year over year to 25% in Q1. |
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16153.0 | 2023-04-27 00:00:00 UTC | 1 Company That Could Be Worth $1 Trillion by 2033 | AAPL | https://www.nasdaq.com/articles/1-company-that-could-be-worth-%241-trillion-by-2033 | There are only five companies in the $1 trillion market cap club as of this writing, making it one of the most exclusive on the planet. Market cap is something that changes all the time and can drastically shift in a short period. However, most stocks will experience large movement over time as their stock prices move.
For a stock to be worth $1 trillion 10 years from now, it will either be a high-growth stock or already be worth several hundred-billion dollars today. One stock in the latter category that seems a likely candidate is financial powerhouse Visa (NYSE: V). It's already almost half-way there.
Why Visa is a no-brainer for growth
Visa has developed an almost impenetrable network for credit card processing. Although there are other big names in the business that have carved out their own niche in the industry, notably Mastercard and American Express, it's not likely that either of these could displace Visa as the biggest.
Incidentally, shares of all three of these are owned by Warren Buffett, which says a lot about his opinion of this kind of business. Visa and its peers operate in an industry that has a simple recurring-revenue model and straightforward growth opportunities as well as high profit margins.
Visa itself has a moat based on its size, bank partnerships, merchant network of more than 80 million businesses, and commitment to innovation.
It powers 4.1 billion cards globally and processed more than $14 trillion in trailing-12-month payment volume, making it the largest player in the industry. It was an early adopter, and creator, of digital payments technology, and it sits comfortably both as a blue-chip financial company and a fresh fintech.
Investors love Visa because it grows along with the economy. When the economy is in good shape, shoppers spend more, and Visa benefits. That happens most of the time.
Is Visa facing any challenges?
The flip side is that Visa can suffer when the economy worsens. It had wide declines at the beginning of the pandemic despite customer spending on essentials and e-commerce. However, not only has it recovered, it has also continued to post robust performance even as inflation has hurt spending. Revenue increased 11% in its fiscal 2023 second quarter (ended March 31), and earnings per share increased a whopping 20%.
It could also face challenges from emerging payments technologies. As services such as Apple's Apple Pay rise in usage, there's the potential that disruptors could step into Visa's territory. This seems very unlikely right now, though, because Visa typically partners with most of the same companies and fuels their technology.
In fact, new Chief Executive Officer Ryan McInerney, who took the reins in February, attributed Visa's phenomenal second-quarter performance to the "continued focus on our growth levers: consumer payments, new flows, and value-added services." Visa's wide moat covers its unbeatable consumer payments systems, and its new technology and partnerships create value-added services that bring in new business.
The road to $1 trillion is paved with credit card swipes
Visa has a market cap of about $475 billion. To reach $1 trillion by 2033, it has to slightly more than double over the next 10 years. Visa stock gained 465% during the past 10 years -- much more than a doubling -- so it's not hard to imagine that happening.
But let's take a more practical look at how that could play out. The stock trades at less than 32 times trailing-12-month earnings, which is a little lower than its 10-year average. Keeping that constant, doubling market cap entails doubling its current net income from $15 billion to $30 billion. Since net income almost tripled over the past 10 years, it's not hard to envision it doubling by 2033.
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American Express is an advertising partner of The Ascent, a Motley Fool company. Jennifer Saibil has positions in American Express. The Motley Fool has positions in and recommends Apple, Mastercard, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Although there are other big names in the business that have carved out their own niche in the industry, notably Mastercard and American Express, it's not likely that either of these could displace Visa as the biggest. In fact, new Chief Executive Officer Ryan McInerney, who took the reins in February, attributed Visa's phenomenal second-quarter performance to the "continued focus on our growth levers: consumer payments, new flows, and value-added services." Visa's wide moat covers its unbeatable consumer payments systems, and its new technology and partnerships create value-added services that bring in new business. | Keeping that constant, doubling market cap entails doubling its current net income from $15 billion to $30 billion. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. | Why Visa is a no-brainer for growth Visa has developed an almost impenetrable network for credit card processing. 10 stocks we like better than Visa When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of April 21, 2023 American Express is an advertising partner of The Ascent, a Motley Fool company. | Keeping that constant, doubling market cap entails doubling its current net income from $15 billion to $30 billion. See the 10 stocks *Stock Advisor returns as of April 21, 2023 American Express is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Apple, Mastercard, and Visa. |
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16178.0 | 2023-04-26 00:00:00 UTC | Montana governor seeks to broaden bill that would ban TikTok to cover other social media platforms - WSJ | AAPL | https://www.nasdaq.com/articles/montana-governor-seeks-to-broaden-bill-that-would-ban-tiktok-to-cover-other-social-media | Adds details, background
April 25 (Reuters) - Montana Governor Greg Gianforte is seeking to broaden a bill that will ban not just TikTok, but other social media applications that provide certain data to foreign adversaries, the Wall Street Journal reported on Tuesday.
Earlier this month, Montana lawmakers passed a bill, known as SB 419, to ban TikTok, which is owned by Chinese tech company ByteDance, from operating in the state.
TikTok as well as Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, which operate mobile app stores, would face fines if they violate the ban, should the bill become law.
The governor's proposed language in the broader bill removes app stores from being held liable for offering such social media apps for downloading in the state, WSJ said, citing an amended draft of the bill.
TikTok is facing growing calls from some U.S. lawmakers to ban the app nationwide over concerns about potential Chinese government influence over the platform.
The short-form video app has repeatedly denied that it has ever shared data with the Chinese government and has said the company would not do so if asked.
The governor's office and TikTok did not immediately respond to a Reuters request for comment.
(Reporting by Jahnavi Nidumolu in Bengaluru; Editing by Edmund Klamann and Michael Perry)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | TikTok as well as Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, which operate mobile app stores, would face fines if they violate the ban, should the bill become law. Adds details, background April 25 (Reuters) - Montana Governor Greg Gianforte is seeking to broaden a bill that will ban not just TikTok, but other social media applications that provide certain data to foreign adversaries, the Wall Street Journal reported on Tuesday. Earlier this month, Montana lawmakers passed a bill, known as SB 419, to ban TikTok, which is owned by Chinese tech company ByteDance, from operating in the state. | TikTok as well as Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, which operate mobile app stores, would face fines if they violate the ban, should the bill become law. Adds details, background April 25 (Reuters) - Montana Governor Greg Gianforte is seeking to broaden a bill that will ban not just TikTok, but other social media applications that provide certain data to foreign adversaries, the Wall Street Journal reported on Tuesday. The governor's proposed language in the broader bill removes app stores from being held liable for offering such social media apps for downloading in the state, WSJ said, citing an amended draft of the bill. | TikTok as well as Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, which operate mobile app stores, would face fines if they violate the ban, should the bill become law. Adds details, background April 25 (Reuters) - Montana Governor Greg Gianforte is seeking to broaden a bill that will ban not just TikTok, but other social media applications that provide certain data to foreign adversaries, the Wall Street Journal reported on Tuesday. Earlier this month, Montana lawmakers passed a bill, known as SB 419, to ban TikTok, which is owned by Chinese tech company ByteDance, from operating in the state. | TikTok as well as Apple Inc AAPL.O and Alphabet Inc's GOOGL.O Google, which operate mobile app stores, would face fines if they violate the ban, should the bill become law. Adds details, background April 25 (Reuters) - Montana Governor Greg Gianforte is seeking to broaden a bill that will ban not just TikTok, but other social media applications that provide certain data to foreign adversaries, the Wall Street Journal reported on Tuesday. Earlier this month, Montana lawmakers passed a bill, known as SB 419, to ban TikTok, which is owned by Chinese tech company ByteDance, from operating in the state. |
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16195.0 | 2023-04-25 00:00:00 UTC | INSIGHT-Inside Meta's scramble to catch up on AI | AAPL | https://www.nasdaq.com/articles/insight-inside-metas-scramble-to-catch-up-on-ai | By Katie Paul, Krystal Hu, Stephen Nellis and Anna Tong
April 25 (Reuters) - As the summer of 2022 came to a close, Meta CEO Mark Zuckerberg gathered his top lieutenants for a five-hour dissection of the company's computing capacity, focused on its ability to do cutting-edge artificial intelligence work, according to a company memo dated Sept. 20 reviewed by Reuters.
They had a thorny problem: despite high-profile investments in AI research, the social media giant had been slow to adopt expensive AI-friendly hardware and software systems for its main business, hobbling its ability to keep pace with innovation at scale even as it increasingly relied on AI to support its growth, according to the memo, company statements and interviews with 12 people familiar with the changes, who spoke on condition of anonymity to discuss internal company matters.
"We have a significant gap in our tooling, workflows and processes when it comes to developing for AI. We need to invest heavily here," said the memo, written by new head of infrastructure Santosh Janardhan, which was posted on Meta's internal message board in September and is being reported now for the first time.
Supporting AI work would require Meta META.O to "fundamentally shift our physical infrastructure design, our software systems, and our approach to providing a stable platform," it added.
For more than a year, Meta has been engaged in a massive project to whip its AI infrastructure into shape. While the company has publicly acknowledged "playing a little bit of catch-up" on AI hardware trends, details of the overhaul - including capacity crunches, leadership changes and a scrapped AI chip project - have not been reported previously.
Asked about the memo and the restructuring, Meta spokesperson Jon Carvill said the company "has a proven track record in creating and deploying state-of-the-art infrastructure at scale combined with deep expertise in AI research and engineering."
"We're confident in our ability to continue expanding our infrastructure's capabilities to meet our near-term and long-term needs as we bring new AI-powered experiences to our family of apps and consumer products," said Carvill. He declined to comment on whether Meta abandoned its AI chip.
Janardhan and other executives did not grant requests for interviews made via the company.
The overhaul spiked Meta's capital expenditures by about $4 billion a quarter, according to company disclosures - nearly double its spend as of 2021 - and led it to pause or cancel previously planned data center builds in four locations.
Those investments have coincided with a period of severe financial squeeze for Meta, which has been laying off employees since November at a scale not seen since the dotcom bust.
Meanwhile, Microsoft-backed OpenAI's ChatGPT surged to become the fastest-growing consumer application in history after its Nov. 30 debut, triggering an arms race among tech giants to release products using so-called generative AI, which, beyond recognizing patterns in data like other AI, creates human-like written and visual content in response to prompts.
Generative AI gobbles up reams of computing power, amplifying the urgency of Meta's capacity scramble, said five of the sources.
FALLING BEHIND
A key source of the trouble, those five sources said, can be traced back to Meta's belated embrace of the graphics processing unit, or GPU, for AI work.
GPU chips are uniquely well-suited to artificial intelligence processing because they can perform large numbers of tasks simultaneously, reducing the time needed to churn through billions of pieces of data.
However, GPUs are also more expensive than other chips, with chipmaker Nvidia Corp NVDA.O controlling 80% of the market and maintaining a commanding lead on accompanying software, the sources said.
Nvidia did not respond to a request for comment for this story.
Instead, until last year, Meta largely ran AI workloads using the company's fleet of commodity central processing units (CPUs), the workhorse chip of the computing world, which has filled data centers for decades but performs AI work poorly.
According to two of those sources, the company also started using its own custom chip it had designed in-house for inference, an AI process in which algorithms trained on huge amounts of data make judgments and generate responses to prompts.
By 2021, that two-pronged approach proved slower and less efficient than one built around GPUs, which were also more flexible in running different types of models than Meta's chip, the two people said.
Meta declined comment on its AI chip's performance.
As Zuckerberg pivoted the company toward the metaverse - a set of digital worlds enabled by augmented and virtual reality - its capacity crunch was slowing its ability to deploy AI to respond to threats, like the rise of social media rival TikTok and Apple-led ad privacy changes, said four of the sources.
The stumbles caught the attention of former Meta board member Peter Thiel, who resigned in early 2022, without explanation.
At a board meeting before he left, Thiel told Zuckerberg and his executives they were complacent about Meta's core social media business while focusing too much on the metaverse, which he said left the company vulnerable to the challenge from TikTok, according to two sources familiar with the exchange.
Meta declined to comment on the conversation.
CATCH-UP
After pulling the plug on a large-scale rollout of Meta's own custom inference chip, which was planned for 2022, executives instead reversed course and placed orders that year for billions of dollars worth of Nvidia GPUs, one source said.
Meta declined to comment on the order.
By then, Meta was already several steps behind peers like Google, which had begun deploying its own custom-built version of GPUs, called the TPU, in 2015.
Executives also that spring set about reorganizing Meta's AI units, naming two new heads of engineering in the process, including Janardhan, the author of the September memo.
More than a dozen executives left Meta during the months-long upheaval, according to their LinkedIn profiles and a source familiar with the departures, a near-wholesale change of AI infrastructure leadership.
Meta next started retooling its data centers to accommodate the incoming GPUs, which draw more power and produce more heat than CPUs, and which must be clustered closely together with specialized networking between them.
The facilities needed 24 to 32 times the networking capacity and new liquid cooling systems to manage the clusters' heat, requiring them to be "entirely redesigned," according to Janardhan's memo and four sources familiar with the project, details of which have not previously been disclosed.
As the work got underway, Meta made internal plans to start developing a new and more ambitious in-house chip, which, like a GPU, would be capable of both training AI models and performing inference. The project, which has not been reported previously, is set to finish around 2025, two sources said.
Carvill, the Meta spokesperson, said data center construction that was paused while transitioning to the new designs would resume later this year. He declined to comment on the chip project.
TRADE-OFFS
While scaling up its GPU capacity, Meta, for now, has had little to show as competitors like Microsoft and Google promote public launches of commercial generative AI products.
Chief Financial Officer Susan Li acknowledged in February that Meta was not devoting much of its current compute to generative work, saying "basically all of our AI capacity is going towards ads, feeds and Reels," its TikTok-like short video format that is popular with younger users.
According to four of the sources, Meta did not prioritize building generative AI products until after the launch of ChatGPT in November. Even though its research lab FAIR, or Facebook AI Research, has been publishing prototypes of the technology since late 2021, the company was not focused on converting its well-regarded research into products, they said.
As investor interest soars, that is changing. Zuckerberg announced a new top-level generative AI team in February that he said would "turbocharge" the company's work in the area.
Chief Technology Officer Andrew Bosworth likewise said this month that generative AI was the area where he and Zuckerberg were spending the most time, forecasting Meta would release a product this year.
Two people familiar with the new team said its work was in the early stages and focused on building a foundation model, a core program that later can be fine tuned and adapted for different products.
Carvill, the Meta spokesperson, said the company has been building generative AI products on different teams for more than a year. He confirmed that the work has accelerated in the months since ChatGPT's arrival.
Meta's capex boosthttps://tmsnrt.rs/3AhGHtx
Meta's U.S. data center statushttps://tmsnrt.rs/3LjROZc
(Reporting by Katie Paul, Krystal Hu, Stephen Nellis and Anna Tong; additional reporting by Jeffrey Dastin; editing by Kenneth Li and Claudia Parsons)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Asked about the memo and the restructuring, Meta spokesperson Jon Carvill said the company "has a proven track record in creating and deploying state-of-the-art infrastructure at scale combined with deep expertise in AI research and engineering." As Zuckerberg pivoted the company toward the metaverse - a set of digital worlds enabled by augmented and virtual reality - its capacity crunch was slowing its ability to deploy AI to respond to threats, like the rise of social media rival TikTok and Apple-led ad privacy changes, said four of the sources. Chief Financial Officer Susan Li acknowledged in February that Meta was not devoting much of its current compute to generative work, saying "basically all of our AI capacity is going towards ads, feeds and Reels," its TikTok-like short video format that is popular with younger users. | By Katie Paul, Krystal Hu, Stephen Nellis and Anna Tong April 25 (Reuters) - As the summer of 2022 came to a close, Meta CEO Mark Zuckerberg gathered his top lieutenants for a five-hour dissection of the company's computing capacity, focused on its ability to do cutting-edge artificial intelligence work, according to a company memo dated Sept. 20 reviewed by Reuters. While the company has publicly acknowledged "playing a little bit of catch-up" on AI hardware trends, details of the overhaul - including capacity crunches, leadership changes and a scrapped AI chip project - have not been reported previously. Meta's capex boosthttps://tmsnrt.rs/3AhGHtx Meta's U.S. data center statushttps://tmsnrt.rs/3LjROZc (Reporting by Katie Paul, Krystal Hu, Stephen Nellis and Anna Tong; additional reporting by Jeffrey Dastin; editing by Kenneth Li and Claudia Parsons) (([email protected];)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | They had a thorny problem: despite high-profile investments in AI research, the social media giant had been slow to adopt expensive AI-friendly hardware and software systems for its main business, hobbling its ability to keep pace with innovation at scale even as it increasingly relied on AI to support its growth, according to the memo, company statements and interviews with 12 people familiar with the changes, who spoke on condition of anonymity to discuss internal company matters. Instead, until last year, Meta largely ran AI workloads using the company's fleet of commodity central processing units (CPUs), the workhorse chip of the computing world, which has filled data centers for decades but performs AI work poorly. Carvill, the Meta spokesperson, said the company has been building generative AI products on different teams for more than a year. | As the work got underway, Meta made internal plans to start developing a new and more ambitious in-house chip, which, like a GPU, would be capable of both training AI models and performing inference. According to four of the sources, Meta did not prioritize building generative AI products until after the launch of ChatGPT in November. Carvill, the Meta spokesperson, said the company has been building generative AI products on different teams for more than a year. |
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16206.0 | 2023-04-24 00:00:00 UTC | Apple (AAPL) Outpaces Stock Market Gains: What You Should Know | AAPL | https://www.nasdaq.com/articles/apple-aapl-outpaces-stock-market-gains%3A-what-you-should-know-12 | Apple (AAPL) closed at $165.35 in the latest trading session, marking a +0.2% move from the prior day. This change outpaced the S&P 500's 0.09% gain on the day. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq lost 4.87%.
Prior to today's trading, shares of the maker of iPhones, iPads and other products had gained 2.98% over the past month. This has outpaced the Computer and Technology sector's gain of 0.98% and lagged the S&P 500's gain of 3.31% in that time.
Wall Street will be looking for positivity from Apple as it approaches its next earnings report date. This is expected to be May 4, 2023. The company is expected to report EPS of $1.44, down 5.26% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $93.32 billion, down 4.06% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.01 per share and revenue of $388.14 billion, which would represent changes of -1.64% and -1.57%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Apple. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.47% lower. Apple is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Apple has a Forward P/E ratio of 27.44 right now. Its industry sports an average Forward P/E of 8.91, so we one might conclude that Apple is trading at a premium comparatively.
We can also see that AAPL currently has a PEG ratio of 2.19. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Mini computers industry currently had an average PEG ratio of 2.73 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zacks Names "Single Best Pick to Double"
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) closed at $165.35 in the latest trading session, marking a +0.2% move from the prior day. We can also see that AAPL currently has a PEG ratio of 2.19. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple (AAPL) closed at $165.35 in the latest trading session, marking a +0.2% move from the prior day. We can also see that AAPL currently has a PEG ratio of 2.19. | Apple (AAPL) closed at $165.35 in the latest trading session, marking a +0.2% move from the prior day. We can also see that AAPL currently has a PEG ratio of 2.19. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. | Apple (AAPL) closed at $165.35 in the latest trading session, marking a +0.2% move from the prior day. We can also see that AAPL currently has a PEG ratio of 2.19. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. |
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16220.0 | 2023-04-23 00:00:00 UTC | GLOBAL MARKETS-Asia stocks off to slow start in earnings-rich week | AAPL | https://www.nasdaq.com/articles/global-markets-asia-stocks-off-to-slow-start-in-earnings-rich-week | By Wayne Cole
SYDNEY, April 24 (Reuters) - Asian shares started cautiously on Monday in a week packed with economic data and central bank meetings, along with earnings from the tech giants that have kept the S&P 500 afloat so far this year.
Early action was sluggish in the wake of Friday's surprisingly strong surveys of business activity which reinforced the case for higher interest rates.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS eased 0.1%, while Japan's Nikkei .N225 nudged up 0.2%.
S&P 500 futures ESc1 and Nasdaq futures NQc1 both eased 0.2% ahead of a busy week of earnings.
Apple Inc AAPL.O and Microsoft Corp MSFT.O alone have accounted for nearly half of the S&P 500's gains through March, so there is much riding on their outlooks.
"We believe stalwarts Microsoft, Amazon and Google should all deliver cloud results that meet and likely exceed Street 1Q expectations this week despite recent noise in the market," said analysts at Wedbush Securities.
"We also believe a major narrative of tech earnings season will be the AI arms race and each Big Tech player updating investors on their own AI ambitions/monetization strategy as Redmond battles Google and other tech stalwarts for the AI trophy case."
The U.S. House of Representatives could this week vote on a Republican plan to raise the debt ceiling in exchange for spending cuts. Weak tax receipts mean the government could run out of money earlier than expected, and the risk of default has seen a rise in U.S. credit default swaps.
Figures on U.S. wages and economic growth due this week will likely reinforce the case for further tightening. The Atlanta Fed's influential GDP Now tracker has the U.S economy growing an annualised 2.5% in the first quarter, only a shade slower than the previous quarter.
BOJ GETS A NEW BOSS
Markets 0#FF: are pricing in an 89% chance the Federal Reserve will hike rates by a quarter point at its meeting in the first week of May, and fully expects a similar hike from the European Central Bank with some risk of a half-point move. FEDWATCH, 0#ECBWATCH
Central banks in Canada and Sweden meet this week, but most attention will be on the Bank of Japan for the first meeting chaired by its new governor, Kazuo Ueda.
Only three out of 27 economists polled by Reuters expect the BOJ to start to scale-back its yield curve control policy (YCC) this soon, but there are reports the central bank is considering conducting a comprehensive review of the impact of its easing.
"Media background suggests don't expect tweaks to YCC, but its clear the writing is on the wall and the risk is of more substantive change at the next meeting," said Tapas Strickland, head of market economics at NAB.
The divergence in policy between Japan and the rest of the developed world has seen the yen weaken steadily in the last few weeks, with the euro in particular hitting a six-month high.
The single currency was firm at 147.33 yen on Monday EURJPY=, while the dollar held at 134.03 JPY=EBS.
The euro also edged up to $1.0992 EUR=EBS and nearer its recent one-year peak of $1.1075.
A higher dollar and bond yields have been a burden for gold, which shed 1.2% last week and was last lying at $1,984 an ounce XAU=. GOL/
Oil prices also lost ground last week, though planned production cuts from OPEC offer some support. O/R
Brent LCOc1 eased 9 cents on Monday to $81.57 a barrel, while U.S. crude CLc1 fell 12 cents to $77.75 per barrel.
Asia stock marketshttps://tmsnrt.rs/2zpUAr4
Asia-Pacific valuationshttps://tmsnrt.rs/2Dr2BQA
US tech earningshttps://tmsnrt.rs/40n0y5m
(Reporting by Wayne Cole; Editing by Christopher Cushing)
(([email protected]; 612 9171 7144; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Inc AAPL.O and Microsoft Corp MSFT.O alone have accounted for nearly half of the S&P 500's gains through March, so there is much riding on their outlooks. By Wayne Cole SYDNEY, April 24 (Reuters) - Asian shares started cautiously on Monday in a week packed with economic data and central bank meetings, along with earnings from the tech giants that have kept the S&P 500 afloat so far this year. Only three out of 27 economists polled by Reuters expect the BOJ to start to scale-back its yield curve control policy (YCC) this soon, but there are reports the central bank is considering conducting a comprehensive review of the impact of its easing. | Apple Inc AAPL.O and Microsoft Corp MSFT.O alone have accounted for nearly half of the S&P 500's gains through March, so there is much riding on their outlooks. By Wayne Cole SYDNEY, April 24 (Reuters) - Asian shares started cautiously on Monday in a week packed with economic data and central bank meetings, along with earnings from the tech giants that have kept the S&P 500 afloat so far this year. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS eased 0.1%, while Japan's Nikkei .N225 nudged up 0.2%. | Apple Inc AAPL.O and Microsoft Corp MSFT.O alone have accounted for nearly half of the S&P 500's gains through March, so there is much riding on their outlooks. By Wayne Cole SYDNEY, April 24 (Reuters) - Asian shares started cautiously on Monday in a week packed with economic data and central bank meetings, along with earnings from the tech giants that have kept the S&P 500 afloat so far this year. Markets 0#FF: are pricing in an 89% chance the Federal Reserve will hike rates by a quarter point at its meeting in the first week of May, and fully expects a similar hike from the European Central Bank with some risk of a half-point move. | Apple Inc AAPL.O and Microsoft Corp MSFT.O alone have accounted for nearly half of the S&P 500's gains through March, so there is much riding on their outlooks. By Wayne Cole SYDNEY, April 24 (Reuters) - Asian shares started cautiously on Monday in a week packed with economic data and central bank meetings, along with earnings from the tech giants that have kept the S&P 500 afloat so far this year. Early action was sluggish in the wake of Friday's surprisingly strong surveys of business activity which reinforced the case for higher interest rates. |
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16228.0 | 2023-04-22 00:00:00 UTC | Taiwan's Apple supplier Quanta plans Vietnam factory | AAPL | https://www.nasdaq.com/articles/taiwans-apple-supplier-quanta-plans-vietnam-factory | HANOI, April 22 (Reuters) - Apple supplier Quanta Computer 2382.TW plans to set up a factory in northern Vietnam, the Vietnamese government said.
The company, a MacBook contract manufacturer, on Friday signed an agreement with the authorities of Nam Dinh province, 90 km (56 miles) south of Hanoi, to construct the facility at an industrial park there, the government said in a statement late on Friday.
The facility, which would be Quanta's 9th factory globally, would initially cover an area of 22.5 hectares, the statement said, without giving its capacity nor a time frame for the construction.
Local media said on Saturday Quanta would invest $120 million in the factory.
(Reporting by Khanh Vu; Editing by Kim Coghill)
(([email protected]; +84 24 38259623;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | HANOI, April 22 (Reuters) - Apple supplier Quanta Computer 2382.TW plans to set up a factory in northern Vietnam, the Vietnamese government said. The company, a MacBook contract manufacturer, on Friday signed an agreement with the authorities of Nam Dinh province, 90 km (56 miles) south of Hanoi, to construct the facility at an industrial park there, the government said in a statement late on Friday. The facility, which would be Quanta's 9th factory globally, would initially cover an area of 22.5 hectares, the statement said, without giving its capacity nor a time frame for the construction. | The company, a MacBook contract manufacturer, on Friday signed an agreement with the authorities of Nam Dinh province, 90 km (56 miles) south of Hanoi, to construct the facility at an industrial park there, the government said in a statement late on Friday. The facility, which would be Quanta's 9th factory globally, would initially cover an area of 22.5 hectares, the statement said, without giving its capacity nor a time frame for the construction. (Reporting by Khanh Vu; Editing by Kim Coghill) (([email protected]; +84 24 38259623;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | HANOI, April 22 (Reuters) - Apple supplier Quanta Computer 2382.TW plans to set up a factory in northern Vietnam, the Vietnamese government said. The company, a MacBook contract manufacturer, on Friday signed an agreement with the authorities of Nam Dinh province, 90 km (56 miles) south of Hanoi, to construct the facility at an industrial park there, the government said in a statement late on Friday. The facility, which would be Quanta's 9th factory globally, would initially cover an area of 22.5 hectares, the statement said, without giving its capacity nor a time frame for the construction. | HANOI, April 22 (Reuters) - Apple supplier Quanta Computer 2382.TW plans to set up a factory in northern Vietnam, the Vietnamese government said. The company, a MacBook contract manufacturer, on Friday signed an agreement with the authorities of Nam Dinh province, 90 km (56 miles) south of Hanoi, to construct the facility at an industrial park there, the government said in a statement late on Friday. The facility, which would be Quanta's 9th factory globally, would initially cover an area of 22.5 hectares, the statement said, without giving its capacity nor a time frame for the construction. |
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16235.0 | 2023-04-21 00:00:00 UTC | Pre-Market Most Active for Apr 21, 2023 : TQQQ, SQQQ, TSLA, T, AAPL, AMZN, TSLL, NIO, WMT, FCX, UBS, CRM | AAPL | https://www.nasdaq.com/articles/pre-market-most-active-for-apr-21-2023-%3A-tqqq-sqqq-tsla-t-aapl-amzn-tsll-nio-wmt-fcx-ubs | The NASDAQ 100 Pre-Market Indicator is down -22.26 to 12,963.72. The total Pre-Market volume is currently 31,943,802 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro QQQ (TQQQ) is -0.18 at $26.64, with 4,266,248 shares traded. This represents a 65.47% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is +0.21 at $31.02, with 3,017,777 shares traded. This represents a 6.31% increase from its 52 Week Low.
Tesla, Inc. (TSLA) is +1.5501 at $164.54, with 2,594,037 shares traded. TSLA's current last sale is 74.79% of the target price of $220.
AT&T Inc. (T) is +0.18 at $17.83, with 1,366,898 shares traded. T's current last sale is 81.05% of the target price of $22.
Apple Inc. (AAPL) is -1.98 at $164.67, with 964,781 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Amazon.com, Inc. (AMZN) is +1.64 at $105.45, with 917,688 shares traded.AMZN is scheduled to provide an earnings report on 4/27/2023, for the fiscal quarter ending Mar2023. The consensus earnings per share forecast is 0.21 per share, which represents a 21 percent increase over the EPS one Year Ago
Direxion Daily TSLA Bull 1.5X Shares (TSLL) is +0.12 at $8.94, with 887,818 shares traded. This represents a 92.67% increase from its 52 Week Low.
NIO Inc. (NIO) is +0.04 at $8.32, with 464,232 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
Walmart Inc. (WMT) is -0.38 at $150.59, with 376,747 shares traded. As reported by Zacks, the current mean recommendation for WMT is in the "buy range".
Freeport-McMoran, Inc. (FCX) is -0.06 at $41.30, with 273,899 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023. The consensus EPS forecast is $0.47. Smarter Analyst Reports: Freeport-McMoRan Delivers Mixed Q3 Results; Shares Drop
UBS AG (UBS) is -0.24 at $20.12, with 253,094 shares traded.UBS is scheduled to provide an earnings report on 4/25/2023, for the fiscal quarter ending Mar2023. The consensus earnings per share forecast is 0.54 per share, which represents a 61 percent increase over the EPS one Year Ago
Salesforce, Inc. (CRM) is -0.74 at $196.77, with 252,734 shares traded. As reported by Zacks, the current mean recommendation for CRM 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 -1.98 at $164.67, with 964,781 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Amazon.com, Inc. (AMZN) is +1.64 at $105.45, with 917,688 shares traded.AMZN is scheduled to provide an earnings report on 4/27/2023, for the fiscal quarter ending Mar2023. | Apple Inc. (AAPL) is -1.98 at $164.67, with 964,781 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is 0.21 per share, which represents a 21 percent increase over the EPS one Year Ago | Apple Inc. (AAPL) is -1.98 at $164.67, with 964,781 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is 0.21 per share, which represents a 21 percent increase over the EPS one Year Ago | Apple Inc. (AAPL) is -1.98 at $164.67, with 964,781 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 Pre-Market Indicator is down -22.26 to 12,963.72. |
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16261.0 | 2023-04-20 00:00:00 UTC | TSMC Q1 profit rises 2% y/y, beats market expectations | AAPL | https://www.nasdaq.com/articles/tsmc-q1-profit-rises-2-y-y-beats-market-expectations | Q1 profit T$206.9 bln vs T$192.8 bln analyst view
Q1 revenue down 4.8% on year at $16.72 bln
Adds details
TAIPEI, April 20 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 2% rise in first-quarter net profit on Thursday beating market expectations but still the smallest quarterly growth in almost four years as global economic woes dented demand for chips.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw January-March net profit rise to T$206.9 billion ($6.76 billion) from T$202.7 billion a year earlier.
That compared with the T$192.8 billion average of 21 analyst estimates compiled by Refinitiv.
TSMC, Asia's most valuable listed company, said first-quarter revenue dropped 4.8% year-on-year, in line with the company's previous forecast.
Analysts said TSMC sales will be under pressure in the second quarter, which is traditionally a slow season for electronics manufacturers and as major clients cut back on orders.
TSMC's share price fell 27.1% in 2022, but is up around 14% so far this year giving the chipmaker a market value of $433.9 billion. The stock rose 0.6% on Thursday versus a 0.4% fall in the benchmark index .TWII.
($1 = 30.6210 Taiwan dollars)
(Reporting by Yimou Lee and Sarah Wu; Editing by Christopher Cushing)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw January-March net profit rise to T$206.9 billion ($6.76 billion) from T$202.7 billion a year earlier. Q1 profit T$206.9 bln vs T$192.8 bln analyst view Q1 revenue down 4.8% on year at $16.72 bln Adds details TAIPEI, April 20 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 2% rise in first-quarter net profit on Thursday beating market expectations but still the smallest quarterly growth in almost four years as global economic woes dented demand for chips. Analysts said TSMC sales will be under pressure in the second quarter, which is traditionally a slow season for electronics manufacturers and as major clients cut back on orders. | Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw January-March net profit rise to T$206.9 billion ($6.76 billion) from T$202.7 billion a year earlier. Q1 profit T$206.9 bln vs T$192.8 bln analyst view Q1 revenue down 4.8% on year at $16.72 bln Adds details TAIPEI, April 20 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 2% rise in first-quarter net profit on Thursday beating market expectations but still the smallest quarterly growth in almost four years as global economic woes dented demand for chips. TSMC, Asia's most valuable listed company, said first-quarter revenue dropped 4.8% year-on-year, in line with the company's previous forecast. | Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw January-March net profit rise to T$206.9 billion ($6.76 billion) from T$202.7 billion a year earlier. Q1 profit T$206.9 bln vs T$192.8 bln analyst view Q1 revenue down 4.8% on year at $16.72 bln Adds details TAIPEI, April 20 (Reuters) - Taiwanese chipmaker TSMC 2330.TW posted a 2% rise in first-quarter net profit on Thursday beating market expectations but still the smallest quarterly growth in almost four years as global economic woes dented demand for chips. ($1 = 30.6210 Taiwan dollars) (Reporting by Yimou Lee and Sarah Wu; Editing by Christopher Cushing) (([email protected];)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Taiwan Semiconductor Manufacturing Co Ltd (TSMC) TSM.N, the world's largest contract chipmaker and a major Apple Inc AAPL.O supplier, saw January-March net profit rise to T$206.9 billion ($6.76 billion) from T$202.7 billion a year earlier. That compared with the T$192.8 billion average of 21 analyst estimates compiled by Refinitiv. TSMC, Asia's most valuable listed company, said first-quarter revenue dropped 4.8% year-on-year, in line with the company's previous forecast. |
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16271.0 | 2023-04-19 00:00:00 UTC | Netflix (NFLX) Q1 Earnings Beat, Revenues Up Y/Y on User Gain | AAPL | https://www.nasdaq.com/articles/netflix-nflx-q1-earnings-beat-revenues-up-y-y-on-user-gain | Netflix NFLX reported first-quarter 2023 earnings of $2.88 per share, beating the Zacks Consensus Estimate by 1.77%. However, the figure slumped 18.4% year over year.
Revenues of $8.16 billion increased 3.7% year over year but lagged the consensus mark by 0.25%. On a foreign-exchange neutral basis, revenues grew 8% year over year.
The average revenues per membership decreased 1% year over year on a reported basis but increased 4% on a foreign-exchange neutral basis.
The streaming giant gained 1.75 million paid subscribers globally. It lost 0.2 million paid subscribers in the year-ago quarter.
At the end of the first quarter, Netflix had 232.5 million paid subscribers globally, up 4.9% year over year.
Netflix, Inc. Price, Consensus and EPS Surprise
Netflix, Inc. price-consensus-eps-surprise-chart | Netflix, Inc. Quote
Although Netflix is suffering from growing competition from services provided by Amazon AMZN, Disney DIS and Apple AAPL, the company benefited from a strong content portfolio in the reported quarter.
Hit shows like The Night Agent, The Glory, Full Swing, and That 90s Show helped Netflix win subscribers. Noteworthy movies include You People, Luther: The Fallen Sun and the much-anticipated Murder Mystery 2.
The company launched paid sharing in four countries (Canada, New Zealand, Spain, and Portugal) during the reported quarter. Although it witnessed cancellations at the initial stage of the launch, engagement gradually improved in the reported quarter.
In the second quarter, Netflix plans to expand the paid sharing roll-out to other countries, including the United States.
It also announced that it is shutting down DVD.com later this year. It will be shipping the final DVDs on Sep 29, 2023.
Shares of this Zacks Rank #3 (Hold) company were down almost 1.4% in pre-market trading. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company’s shares have underperformed Apple but outperformed Disney and Amazon year to date. While Netflix shares declined 4.3%, Apple, Disney and Amazon lost 0.6%, 23.5% and 35.3%, respectively.
Amazon, Apple and Disney are set to report their quarterly results on Apr 27, May 4 and May 10, respectively.
Netflix’s Segmental Revenue Details
The United States and Canada (“UCAN") reported revenues of $3.61 billion, which rose 7.7% year over year and accounted for 44.2% of total revenues. ARPU grew 9% from the year-ago quarter on a foreign-exchange neutral basis.
The paid subscriber base for UCAN decreased 0.2% from the year-ago quarter to 74.40 million. The company gained 0.102 million paid subscribers compared with the year-ago quarter’s loss of 0.636 million.
Europe, Middle East & Africa (“EMEA”) reported revenues of $2.52 billion, which declined 1.7% year over year and accounted for 30.9% of total revenues. ARPU inched up 1% from the year-ago quarter on a foreign-exchange neutral basis.
The paid subscriber base for EMEA increased 4.9% from the year-ago quarter to 77.37 million. Netflix gained 0.644 million paid subscribers compared with the year-ago quarter’s net loss of 0.303 million.
Latin America’s (LATAM) revenues of $1.07 billion increased 7.1% year over year, contributing 13.1% of total revenues. ARPU grew 8% from the year-ago quarter on a foreign-exchange neutral basis.
The paid subscriber base for LATAM rose 4.1% from the year-ago quarter to 41.25 million. It lost 0.45 million paid subscribers compared with the year-ago quarter’s loss of 0.351 million.
Asia Pacific’s (“APAC”) revenues of $933.5 million increased 1.8% year over year and accounted for 11.4% of total revenues. ARPU decreased 6% year over year on a foreign-exchange neutral basis.
The paid subscriber base for APAC jumped 17.1% from the year-ago quarter to 39.48 million. The company added 1.5 million paid subscribers in the quarter, up 33.9% year over year.
Operating Details
Marketing expenses declined 0.1% year over year to $555.4 million. As a percentage of revenues, marketing expenses decreased 30 basis points (bps) to 6.8%.
Operating income decreased 13.1% year over year to $1.71 billion, beating Netflix’s guidance of $1.63 billion, driven by higher revenues. Operating margin contracted 410 bps on a year-over-year basis to 21%, primarily due to unfavorable forex.
Balance Sheet & Free Cash Flow
Netflix had $7.83 billion of cash and cash equivalents as of Mar 31, 2023 compared with $6.06 billion as of Dec 31, 2022.
Total debt was $14.44 billion as of Mar 31, 2023 compared with $14.35 billion as of Dec 31, 2022.
Streaming content obligations were $21.53 billion as of Mar 31, 2023 compared with $21.83 billion as of Dec 31, 2022.
Netflix reported a free cash flow of $2.1 billion compared with a free cash flow of $802 million in the previous quarter.
Guidance
For the second quarter of 2023, the company forecasts earnings of $2.84 per share, indicating an almost 20% decline from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for the same is pegged at $2.97 per share, currently higher than the company’s expectation, but down 15.86% from the figure reported in the year-ago quarter.
Total revenues are anticipated to be $8.242 billion, suggesting growth of 3.4% year over year or 6% on a forex-neutral basis. The consensus mark for revenues stands at $8.17 billion, almost in line with the company’s expectation and indicating 3.88% growth from the figure reported in the year-ago quarter.
The quarterly operating margin is projected at 19% compared with the 19.8% reported in the year-ago quarter.
For 2023, Netflix expects the operating margin to be in the 18%-20% range. It expects to generate a free cash flow of at least $3.5 billion, higher than its previous guidance of $3 billion. This reflects lower spending on content this year. For 2024, it expects to spend roughly $17 billion on content.
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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, Consensus and EPS Surprise Netflix, Inc. price-consensus-eps-surprise-chart | Netflix, Inc. Quote Although Netflix is suffering from growing competition from services provided by Amazon AMZN, Disney DIS and Apple AAPL, the company benefited from a strong content portfolio in the reported quarter. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. In the second quarter, Netflix plans to expand the paid sharing roll-out to other countries, including the United States. | Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Netflix, Inc. Price, Consensus and EPS Surprise Netflix, Inc. price-consensus-eps-surprise-chart | Netflix, Inc. Quote Although Netflix is suffering from growing competition from services provided by Amazon AMZN, Disney DIS and Apple AAPL, the company benefited from a strong content portfolio in the reported quarter. Netflix’s Segmental Revenue Details The United States and Canada (“UCAN") reported revenues of $3.61 billion, which rose 7.7% year over year and accounted for 44.2% of total revenues. | Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Netflix, Inc. Price, Consensus and EPS Surprise Netflix, Inc. price-consensus-eps-surprise-chart | Netflix, Inc. Quote Although Netflix is suffering from growing competition from services provided by Amazon AMZN, Disney DIS and Apple AAPL, the company benefited from a strong content portfolio in the reported quarter. At the end of the first quarter, Netflix had 232.5 million paid subscribers globally, up 4.9% year over year. | Netflix, Inc. Price, Consensus and EPS Surprise Netflix, Inc. price-consensus-eps-surprise-chart | Netflix, Inc. Quote Although Netflix is suffering from growing competition from services provided by Amazon AMZN, Disney DIS and Apple AAPL, the company benefited from a strong content portfolio in the reported quarter. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. The company added 1.5 million paid subscribers in the quarter, up 33.9% year over year. |
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16286.0 | 2023-04-18 00:00:00 UTC | Guru Fundamental Report for AAPL - Warren Buffett | AAPL | https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-warren-buffett-21 | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Warren Buffett
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
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Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. | Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL). | Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL). | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. |
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16314.0 | 2023-04-17 00:00:00 UTC | Alphabet shares fall on report Samsung may dump Google Search for Bing | AAPL | https://www.nasdaq.com/articles/alphabet-shares-fall-on-report-samsung-may-dump-google-search-for-bing | Updates share movement
April 17 (Reuters) - Alphabet Inc GOOGL.O shares fell nearly 4% on Monday after a report that South Korea's Samsung Electronics 005930.KS was considering replacing Google with Microsoft-owned MSFT.O Bing as the default search engine on its devices.
The report, published by the New York Times over the weekend, underscores the growing challenges Google's $162-billion-a-year search engine business face from Bing - a minor player that has risen in prominence recently after the integration of the artificial intelligence tech behind ChatGPT.
Google's reaction to the threat was "panic" as the company earns an estimated $3 billion in annual revenue from the Samsung contract, the report said, citing internal messages.
Another $20 billion is tied to a similar Apple AAPL.O contract that will be up for renewal this year, the report added.
Alphabet and Samsung did not immediately respond to Reuters' requests for comment.
Google has for decades dominated the search market with a share of over 80%, but Wall Street fears the company could be falling behind Microsoft in a fast-moving AI race.
Parent firm Alphabet lost $100 billion in value on Feb. 8 after its new chatbot, Bard, shared inaccurate information in a promotional video and a company event failed to dazzle.
On Monday, the stock fell to $104.90 and erased nearly $50 billion from Alphabet's market capitalization. Microsoft, meanwhile, outperformed the broader market with a rise of 1%.
"Investors worry Google has become a lazy monopolist in search and the developments of the last couple of months have served as a wake-up call," Atlantic Equities analyst James Cordwell said.
Cordwell added the potential costs tied to making Google Search more competitive than AI-powered Bing could also be a cause of concern.
The NYT report said Google was racing to build an all-new AI-powered search engine that would offer a more personalized experience than its current service, which is also set to be upgraded with AI features.
(Reporting by Aditya Soni and Akash Sriram in Bengaluru; Editing by Shinjini Ganguli)
(([email protected]; +91 80 6749 1130;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Another $20 billion is tied to a similar Apple AAPL.O contract that will be up for renewal this year, the report added. The report, published by the New York Times over the weekend, underscores the growing challenges Google's $162-billion-a-year search engine business face from Bing - a minor player that has risen in prominence recently after the integration of the artificial intelligence tech behind ChatGPT. "Investors worry Google has become a lazy monopolist in search and the developments of the last couple of months have served as a wake-up call," Atlantic Equities analyst James Cordwell said. | Another $20 billion is tied to a similar Apple AAPL.O contract that will be up for renewal this year, the report added. Updates share movement April 17 (Reuters) - Alphabet Inc GOOGL.O shares fell nearly 4% on Monday after a report that South Korea's Samsung Electronics 005930.KS was considering replacing Google with Microsoft-owned MSFT.O Bing as the default search engine on its devices. Cordwell added the potential costs tied to making Google Search more competitive than AI-powered Bing could also be a cause of concern. | Another $20 billion is tied to a similar Apple AAPL.O contract that will be up for renewal this year, the report added. Updates share movement April 17 (Reuters) - Alphabet Inc GOOGL.O shares fell nearly 4% on Monday after a report that South Korea's Samsung Electronics 005930.KS was considering replacing Google with Microsoft-owned MSFT.O Bing as the default search engine on its devices. The report, published by the New York Times over the weekend, underscores the growing challenges Google's $162-billion-a-year search engine business face from Bing - a minor player that has risen in prominence recently after the integration of the artificial intelligence tech behind ChatGPT. | Another $20 billion is tied to a similar Apple AAPL.O contract that will be up for renewal this year, the report added. Updates share movement April 17 (Reuters) - Alphabet Inc GOOGL.O shares fell nearly 4% on Monday after a report that South Korea's Samsung Electronics 005930.KS was considering replacing Google with Microsoft-owned MSFT.O Bing as the default search engine on its devices. Google has for decades dominated the search market with a share of over 80%, but Wall Street fears the company could be falling behind Microsoft in a fast-moving AI race. |
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16319.0 | 2023-04-16 00:00:00 UTC | 3 Warren Buffett Stocks Worth Buying | AAPL | https://www.nasdaq.com/articles/3-warren-buffett-stocks-worth-buying | In times of uncertainty, investors will often look toward the relative safety of companies known to have earned a spot in Warren Buffett's portfolio. Often considered to be one of the greatest capital allocators ever, Buffett has used his investing prowess to parlay a struggling textile manufacturer into one of the largest and strongest cash-generating companies around. With that reputation and history, it's no wonder people are willing to follow Buffett into the stocks he owns and even into being part-owners of his holding company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B).
Although following the crowd is rarely a path to market-trouncing returns, if there's any investor that might be worth following even when others are doing the same, it'd be Buffett. Three Motley Fool contributors got together to look through Buffett's list of holdings to see if any are worth considering buying today. They chose Apple (NASDAQ: AAPL), Taiwan Semiconductor (NYSE: TSM), and Berkshire Hathaway itself. Read on to find out why and decide for yourself whether any of them are worth a slot in your portfolio.
Take a monster bite of this one
Eric Volkman (Apple): Remember the great tech stock slump of 2022? Well, that's now quite some time in the past, with many companies in the sector beating the market lately. One that has done so, and that looks set to continue that performance, is habitual outpacer Apple.
Buffett and Berkshire are huge believers in Apple's potential. At the end of 2022, the stock constituted 44% of Berkshire's equity portfolio. By contrast, the next-largest holding in terms of percentage -- Bank of America -- came in at less than 9%.
This faith is entirely justified. Apple has been successful in every major endeavor it's undertaken recently. Its products are mainstays with consumers around the globe, which is particularly impressive given that they've been on the market for over a decade and a half now. The typical shelf life for a hot electronic gadget line tends to be a few years, at best.
Apple has managed to build an ecosystem around the devices that continuously and strongly rakes in money; sooner or later, iPhone users are going to be tempted to buy an app or make an in-app purchase. No prizes for guessing which party typically gets a 30% cut of every single one of those sales. (It's Apple.)
Meanwhile, the company is as restless as it was in those long-ago days when founders Steve Jobs and Steve Wozniak were tinkering around in a California garage. With the introduction in late 2020 of its proprietary and very powerful M1 chip, Apple has dramatically upped the performance of its Mac computers and its MacBook laptops, keeping those products top-of-class and on many a shopping list.
Even with its recent price appreciation, the company's stock still looks cheap on its key valuations. Forward P/E -- using earnings estimates -- is just under 28, which is attractive given the many double-digit leaps in both profitability and revenue Apple has effortlessly managed in the past, plus the great potential it holds as a top tech innovator and a maker of irresistibly cool gadgets.
Buffett may have sold, but I'm looking to buy more
Jason Hall (Taiwan Semiconductor): Suggesting this stock may seem counter to following Buffett's thinking, considering that Berkshire actually sold almost 90% of its stake in Taiwan Semiconductor, better known as TSMC, less than a year after making a multibillion-dollar investment in the company. So why am I taking the contrarian position on TSMC? In short, because the reasons Buffett stated for selling, including concerns about geopolitical risk, are things I am willing to risk. I'm also not investing $4 billion of capital that belongs to other shareholders.
TSMC is one of the most important companies on earth, with a massive economic moat as the contract manufacturer of the most advanced semiconductors, and a massive share of all the prior generations that are still viable. Its scale and the trust it's earned result in massive network effect strengths, and that results in both pricing power and major cost advantages. It can make chips cheaper -- and more profitably -- than anyone else.
But concerns about potential conflict between China and Taiwan and the ongoing lull in semiconductor demand have weighed on the stock price, and I think that makes it too attractive to ignore. At recent prices, it trades for 13 times trailing earnings and 8.3 times operating cash flow. Its earnings and cash flow may suffer in 2023, but the next decade is primed to be very good for semiconductor stocks and that's going to be good news for TSMC.
The granddaddy of all Buffett stocks
Chuck Saletta (Berkshire Hathaway): There is one Buffett stock that represents a business that Buffett himself built. The company behind that stock is so strong that the biggest criticism many people can levy against it is that it has and generates too much cash. Of course, all that cash came in handy during the global financial crisis, when Buffett was able to invest it to bail out some troubled financial titans.
The stock, of course, is Berkshire Hathaway. What makes it so powerful isn't just the fact that Buffett himself sits at the helm of the business, but that it managed to generate nearly $35 billion in operating cash flow over the past year. That's $35 billion new dollars that can be reinvested to shore up what is already a diversified conglomerate.
When its subsidiaries are included, Berkshire Hathaway covers industries from insurance to power generation, and from furniture to food. It even owns a railroad to help move materials across large swaths of the country. All that adds up to a business that will have consumer demand pretty much no matter what the overall economy is doing.
That broad demand, strong cash stockpile, and incredible ability to keep generating new cash makes Berkshire Hathaway a great company to consider owning in uncertain times. When you add the fact that the company is available for around 1.5 times its book value, Berkshire Hathaway starts to look like an incredibly strong business available at a surprisingly reasonable price. That combination is what makes it a Buffett stock worth considering as an investment today.
Follow the best
In over a half century at the helm of Berkshire Hathaway, Buffett has navigated his way through all sorts of economic conditions. If you're not sure what to invest in today, given all the uncertainty, you could do far worse than to be inspired by the stocks he owns. Whether Apple, Taiwan Semiconductor, or Berkshire Hathaway itself makes the cut for you, or whether you find more to like in a different Buffett stock, you're on the right path.
By making today the day you start digging into what to buy, you'll get yourself that much closer to finding what could turn out to be your next great investment.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Chuck Saletta has no position in any of the stocks mentioned. Eric Volkman has positions in Apple. Jason Hall has positions in Berkshire Hathaway and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | They chose Apple (NASDAQ: AAPL), Taiwan Semiconductor (NYSE: TSM), and Berkshire Hathaway itself. Apple has managed to build an ecosystem around the devices that continuously and strongly rakes in money; sooner or later, iPhone users are going to be tempted to buy an app or make an in-app purchase. With the introduction in late 2020 of its proprietary and very powerful M1 chip, Apple has dramatically upped the performance of its Mac computers and its MacBook laptops, keeping those products top-of-class and on many a shopping list. | They chose Apple (NASDAQ: AAPL), Taiwan Semiconductor (NYSE: TSM), and Berkshire Hathaway itself. With that reputation and history, it's no wonder people are willing to follow Buffett into the stocks he owns and even into being part-owners of his holding company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). That broad demand, strong cash stockpile, and incredible ability to keep generating new cash makes Berkshire Hathaway a great company to consider owning in uncertain times. | They chose Apple (NASDAQ: AAPL), Taiwan Semiconductor (NYSE: TSM), and Berkshire Hathaway itself. Buffett may have sold, but I'm looking to buy more Jason Hall (Taiwan Semiconductor): Suggesting this stock may seem counter to following Buffett's thinking, considering that Berkshire actually sold almost 90% of its stake in Taiwan Semiconductor, better known as TSMC, less than a year after making a multibillion-dollar investment in the company. The granddaddy of all Buffett stocks Chuck Saletta (Berkshire Hathaway): There is one Buffett stock that represents a business that Buffett himself built. | They chose Apple (NASDAQ: AAPL), Taiwan Semiconductor (NYSE: TSM), and Berkshire Hathaway itself. (It's Apple.) The stock, of course, is Berkshire Hathaway. |
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16324.0 | 2023-04-15 00:00:00 UTC | 5 Burning Questions for Apple | AAPL | https://www.nasdaq.com/articles/5-burning-questions-for-apple | Apple (NASDAQ: AAPL) faces more challenges than it has in over a decade with its biggest supplier (China) facing uncertainty and artificial intelligence presenting a new threat. Travis Hoium asks the questions investors should be thinking about in the video below.
*Stock prices used were end-of-day prices of April 12, 2023. The video was published on April 12, 2023.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) faces more challenges than it has in over a decade with its biggest supplier (China) facing uncertainty and artificial intelligence presenting a new threat. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, and Taiwan Semiconductor Manufacturing. | Apple (NASDAQ: AAPL) faces more challenges than it has in over a decade with its biggest supplier (China) facing uncertainty and artificial intelligence presenting a new threat. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Travis Hoium has positions in Alphabet and Apple. | Apple (NASDAQ: AAPL) faces more challenges than it has in over a decade with its biggest supplier (China) facing uncertainty and artificial intelligence presenting a new threat. 10 stocks we like better than Apple 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. | Apple (NASDAQ: AAPL) faces more challenges than it has in over a decade with its biggest supplier (China) facing uncertainty and artificial intelligence presenting a new threat. Travis Hoium asks the questions investors should be thinking about in the video below. See the 10 stocks *Stock Advisor returns as of April 10, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. |
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16335.0 | 2023-04-14 00:00:00 UTC | Zacks Investment Ideas feature highlights: Rambus, Nvidia, Microsoft, Apple and Netflix | AAPL | https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-rambus-nvidia-microsoft-apple-and-netflix | For Immediate Release
Chicago, IL – April 14, 2023 – Today, Zacks Investment Ideas feature highlights Rambus RMBS, Nvidia NVDA, Microsoft MSFT, Apple AAPL and Netflix NFLX.
2 Types of Corrections, 3 Ways to Navigate Them
Investors Should Welcome Pullbacks
Wall Street is a complex and ever-changing entity, influenced by many factors such as the Federal Reserve, economic conditions, geopolitical events, and investor sentiment. While stocks can experience long streaks of price appreciation, corrections are a natural part of the market cycle. As the old saying goes, "Without pain, how could we know joy?"
Correcting through Price Versus Time
A correction through price tends to be a dramatic and sudden drop more times than not. The suddenness and velocity can lead to a domino effect, where falling prices cause more selling in what ultimately becomes a "self-fulfilling prophecy" of sorts. In early 2022, this phenomenon gave way to a correction through both price and time.
Conversely, when the stock market corrects through time, it usually means that the price is relatively stable, but the market experiences a brief period of consolidation or sideways price movement. During this time, investors may become hesitant and uncertain, leading to a dry-up in volume and a sideways price chop. Though a correction through time frustrates investors, it can be an essential building block for higher prices later.
Corrections through time are evidence of a more robust market. 2022 was indicative of an equity market that required a large correction or reset. Meanwhile, thus far, the current correction is more a sign of a pause in an uptrend.
Navigating Pullbacks
Market corrections are a normal part of the investing cycle and can often be short-lived. Regardless of whether a correction occurs through time or price, investors need to remain calm and avoid making impulsive, emotional decisions. Below are 3 tips on how to navigate a market correction:
Ask yourself, "What stocks are holding up best?": Relative strength is the most effective yet simple indicator at an investor's disposal during a correction. Think of a strong relative strength stock as a beach ball being held underwater. You can only hold the ball down for so long before it springboards back to the surface. Semiconductor leader Rambus was a prime example of relative strength in September 2022. In the yellow box on the chart below, notice how RMBS was hitting new highs while the S&P 500 Index was weak and retesting lows. Because 3-4 stocks tend to follow the market direction and RMBS didn't, the action was noteworthy.
Follow the Leaders: Leaders, or stocks that have been moving up the most in an uptrend are called leaders for a reason – they lead. Presently, tech, specifically semiconductors, are the leading stocks in the market. Innovative chip maker Nvidia is among the "cream of the crop" when it comes to true market leaders.
As such, regardless of whether or not you caught this year's breathtaking move in the stock, it bears watching. NVDA is pulling into trendline support and the 21-day moving average for the first time in 2023. If it can hold this zone, the correction may be short-lived. If the stock breaks this zone, the correction likely has longer to go.
Other leading stocks to watch for more evidence include mega-cap tech stocks such as Microsoft, Apple and Netflix.
Know your timeframe: Before a correction occurs, and before you decide to invest in the stock market, for that matter, you should be acutely aware of what you're willing to risk and your time frame. In this case, there is no right or wrong answer. However, your time frame should lead you to how you handle corrections. For example, a long-term investor should be able to take a 5-10% correction in the S&P 500 Index in stride. On the other hand, swing traders may need to stop themselves out of some positions in that case and readjust their portfolio. Either way, investors should prepare and have a clear-cut strategy ahead of time.
Conclusion
Price pullbacks are often thought of in a negative light by investors. However, as we explained above, they are a necessary ingredient for the market and can help lead the way for the next market move higher. To succeed, investors should stay calm, informed, and enter corrections with a clear action plan.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For Immediate Release Chicago, IL – April 14, 2023 – Today, Zacks Investment Ideas feature highlights Rambus RMBS, Nvidia NVDA, Microsoft MSFT, Apple AAPL and Netflix NFLX. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Rambus, Inc. (RMBS) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Know your timeframe: Before a correction occurs, and before you decide to invest in the stock market, for that matter, you should be acutely aware of what you're willing to risk and your time frame. | For Immediate Release Chicago, IL – April 14, 2023 – Today, Zacks Investment Ideas feature highlights Rambus RMBS, Nvidia NVDA, Microsoft MSFT, Apple AAPL and Netflix NFLX. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Rambus, Inc. (RMBS) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Other leading stocks to watch for more evidence include mega-cap tech stocks such as Microsoft, Apple and Netflix. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Rambus, Inc. (RMBS) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – April 14, 2023 – Today, Zacks Investment Ideas feature highlights Rambus RMBS, Nvidia NVDA, Microsoft MSFT, Apple AAPL and Netflix NFLX. Correcting through Price Versus Time A correction through price tends to be a dramatic and sudden drop more times than not. | For Immediate Release Chicago, IL – April 14, 2023 – Today, Zacks Investment Ideas feature highlights Rambus RMBS, Nvidia NVDA, Microsoft MSFT, Apple AAPL and Netflix NFLX. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Rambus, Inc. (RMBS) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report To read this article on Zacks.com click here. Correcting through Price Versus Time A correction through price tends to be a dramatic and sudden drop more times than not. |
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16364.0 | 2023-04-13 00:00:00 UTC | Apple to use only recycled cobalt in batteries by 2025 | AAPL | https://www.nasdaq.com/articles/apple-to-use-only-recycled-cobalt-in-batteries-by-2025 | Adds details on cobalt mining
April 13 (Reuters) - Apple Inc AAPL.O said on Thursday it would use only recycled cobalt in batteries by 2025 as a part of its efforts to make all its products carbon neutral by the end of the decade.
Magnets in Apple devices will use recycled rare earth elements, and in-house designed printed circuit boards will use recycled tin soldering and gold plating, the company said.
Apple is pushing to become carbon neutral through its entire supply chain and the life cycle of every product by 2030. On Tuesday, it also doubled its financial commitment to a fund it had established two years ago to invest in projects that remove carbon from the atmosphere.
In the past, several tech companies have been accused of being complicit in the death of children in the Democratic Republic of Congo (DRC) forced to mine cobalt, a critical material in the batteries used in most consumer electronics.
Most cobalt is produced as a by-product of copper or nickel mining, but artisanal miners in southern Congo exploit deposits near the surface that are rich in cobalt.
A quarter of all cobalt used in Apple products came from recycled material in 2022, up from 13% a year earlier, Apple said.
It now sources over two-thirds of all aluminum, nearly three-quarters of all rare earths, and more than 95% of all tungsten in its products from recycled material.
(Reporting by Nivedita Balu in Bengaluru; Editing by Shinjini Ganguli)
(([email protected]; Twitter: @niveditabalu;))
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 cobalt mining April 13 (Reuters) - Apple Inc AAPL.O said on Thursday it would use only recycled cobalt in batteries by 2025 as a part of its efforts to make all its products carbon neutral by the end of the decade. Apple is pushing to become carbon neutral through its entire supply chain and the life cycle of every product by 2030. On Tuesday, it also doubled its financial commitment to a fund it had established two years ago to invest in projects that remove carbon from the atmosphere. | Adds details on cobalt mining April 13 (Reuters) - Apple Inc AAPL.O said on Thursday it would use only recycled cobalt in batteries by 2025 as a part of its efforts to make all its products carbon neutral by the end of the decade. Magnets in Apple devices will use recycled rare earth elements, and in-house designed printed circuit boards will use recycled tin soldering and gold plating, the company said. A quarter of all cobalt used in Apple products came from recycled material in 2022, up from 13% a year earlier, Apple said. | Adds details on cobalt mining April 13 (Reuters) - Apple Inc AAPL.O said on Thursday it would use only recycled cobalt in batteries by 2025 as a part of its efforts to make all its products carbon neutral by the end of the decade. Magnets in Apple devices will use recycled rare earth elements, and in-house designed printed circuit boards will use recycled tin soldering and gold plating, the company said. A quarter of all cobalt used in Apple products came from recycled material in 2022, up from 13% a year earlier, Apple said. | Adds details on cobalt mining April 13 (Reuters) - Apple Inc AAPL.O said on Thursday it would use only recycled cobalt in batteries by 2025 as a part of its efforts to make all its products carbon neutral by the end of the decade. On Tuesday, it also doubled its financial commitment to a fund it had established two years ago to invest in projects that remove carbon from the atmosphere. It now sources over two-thirds of all aluminum, nearly three-quarters of all rare earths, and more than 95% of all tungsten in its products from recycled material. |
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16372.0 | 2023-04-12 00:00:00 UTC | Mac Sales Could Continue to Slip. Should Apple Investors Brace Themselves? | AAPL | https://www.nasdaq.com/articles/mac-sales-could-continue-to-slip.-should-apple-investors-brace-themselves | A recent report shows a fragile personal computer shipment in Q1 2023, and Apple (NASDAQ: AAPL) saw the most significant decline among the top makers. Check out the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were the market prices of April 11, 2023. The video was published on April 11, 2023.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A recent report shows a fragile personal computer shipment in Q1 2023, and Apple (NASDAQ: AAPL) saw the most significant decline among the top makers. Check out the short video to learn more, consider subscribing, and click the special offer link below. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | A recent report shows a fragile personal computer shipment in Q1 2023, and Apple (NASDAQ: AAPL) saw the most significant decline among the top makers. *Stock prices used were the market prices of April 11, 2023. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | A recent report shows a fragile personal computer shipment in Q1 2023, and Apple (NASDAQ: AAPL) saw the most significant decline among the top makers. 10 stocks we like better than Apple 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. | A recent report shows a fragile personal computer shipment in Q1 2023, and Apple (NASDAQ: AAPL) saw the most significant decline among the top makers. See the 10 stocks *Stock Advisor returns as of April 10, 2023 Jose Najarro has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. |
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16397.0 | 2023-04-11 00:00:00 UTC | 3 Great Foreign Companies to Invest in Right Now | AAPL | https://www.nasdaq.com/articles/3-great-foreign-companies-to-invest-in-right-now-7 | Part of having a well-diversified portfolio is investing in international companies. International companies give investors added diversification (location and currency), exposure to growth opportunities around the world, and access to industries that may not be as well represented in the United States.
If you're looking for three great foreign companies to invest in, look no further than these.
1. Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (NYSE: TSM) is the world's leading chipmaker. It's become a top player in the industry through its customized microchips used in many technology products. In fact, you're likely reading this on a device with a TSMC microchip in it.
TSMC's ability to make powerful microchips (their smallest is 3 nm) has earned it an impressive customer base from tech giants like Apple and Advanced Micro Devices, and it's paid off nicely for its top line. The company has posted a revenue compound annual growth rate of 18% since 1994. Still, even impressive numbers couldn't save the company from shedding over a third of its value last year.
Data by YCharts
There's no doubt that TSMC faces some short-term challenges with a pullback on technology sales and a cyclical semiconductor business sensitive to broader economic conditions. That shouldn't deter long-term investors, though.
TSMC can be a 2-for-1 win for investors, considering its growth potential as well as a dividend payment. TSMC's current quarterly dividend is $0.45 per share, and its trailing-12-month dividend yield is around 2%. It's not huge, but it's something, and can help investors stomach some of the short-term hiccups the company may run into.
2. Alibaba
Alibaba Group (NYSE: BABA) has had its share of ups and downs and controversies over the past few years, but brighter days seem to be ahead for the Chinese e-commerce giant. To begin, China drastically eased its zero-COVID restrictions that put a halt to much of Alibaba's core business.
The company also took steps to please Chinese regulators, most notably announcing that it's breaking up into six smaller businesses.
I believe this is a good thing for shareholders for a few reasons. Huge conglomerates are often traded at a discount compared to the sum of their individual businesses. For example, a conglomerate with five businesses worth $100 million each would generally be valued under $500 million.
As individual businesses, Alibaba's subsidiaries would be able to operate with more autonomy, which can translate into more efficient operations and increased focus on the core businesses.
Alibaba's price-to-sales ratio is hovering just above 2.1, around the lowest it's ever been, and more than 80% less than five years ago.
Data by YCharts
For an industry leader with its vast market share and resources, that makes the stock fairly undervalued, in my opinion. The upside should be far greater than any long-term risk at current price levels.
3. LVMH Moët Hennessy - Louis Vuitton, Société Européenne
French luxury conglomerate LVMH Moët Hennessy - Louis Vuitton, Société Européenne (OTC: LVMHF) has been a powerhouse for quite some time. With a portfolio that includes brands including Louis Vuitton, Tiffany and Co., Dom Pérignon, Fendi, Christian Dior, and many more Rodeo Drive inhabitants, LVMH has cemented itself among the best companies in the world.
While consumer staples are products and services that sell no matter the economic conditions because of the necessity factor, luxury goods are similar because of the status factor. LVMH's high net worth consumers make it one of the least sensitive stocks to broader economic conditions. Someone buying designer bags, high-dollar champagne, or five-figure watches likely isn't too concerned with higher inflation.
The past two years have been lucrative for the company after a small setback in 2020 because of the COVID-19 pandemic. Revenue went from 44.6 billion euros in 2020 to 64.2 billion euros in 2021 to 79.1 billion euros in 2022. In a year when many companies saw stagnant or declining sales, LVMH managed to increase its revenue by 23%.
LVMH has pricing power that not many companies can compete with, putting it in a position to thrive regardless of the global economy. Combine that with the company's constant demand and world-class products, and LVMH's dominance is primed to continue for a long time.
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Stefon Walters has positions in Alibaba Group and Apple. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | International companies give investors added diversification (location and currency), exposure to growth opportunities around the world, and access to industries that may not be as well represented in the United States. TSMC's ability to make powerful microchips (their smallest is 3 nm) has earned it an impressive customer base from tech giants like Apple and Advanced Micro Devices, and it's paid off nicely for its top line. Data by YCharts There's no doubt that TSMC faces some short-term challenges with a pullback on technology sales and a cyclical semiconductor business sensitive to broader economic conditions. | Taiwan Semiconductor Manufacturing Taiwan Semiconductor Manufacturing (NYSE: TSM) is the world's leading chipmaker. LVMH Moët Hennessy - Louis Vuitton, Société Européenne French luxury conglomerate LVMH Moët Hennessy - Louis Vuitton, Société Européenne (OTC: LVMHF) has been a powerhouse for quite some time. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, and Taiwan Semiconductor Manufacturing. | Data by YCharts There's no doubt that TSMC faces some short-term challenges with a pullback on technology sales and a cyclical semiconductor business sensitive to broader economic conditions. LVMH Moët Hennessy - Louis Vuitton, Société Européenne French luxury conglomerate LVMH Moët Hennessy - Louis Vuitton, Société Européenne (OTC: LVMHF) has been a powerhouse for quite some time. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Taiwan Semiconductor Manufacturing wasn't one of them! | Data by YCharts For an industry leader with its vast market share and resources, that makes the stock fairly undervalued, in my opinion. That's right -- they think these 10 stocks are even better buys. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, and Taiwan Semiconductor Manufacturing. |
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16417.0 | 2023-04-10 00:00:00 UTC | ChatGPT Could Break the iOS/Android Duopoly | AAPL | https://www.nasdaq.com/articles/chatgpt-could-break-the-ios-android-duopoly | When ChatGPT was launched, it was a great chatbot that captured users' attention, but the introduction of plug-ins has changed the game in technology. If users start using plug-ins instead of apps, Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) will feel the hit, which Travis Hoium discusses in this video.
*Stock prices used were end-of-day prices of April 4, 2023. The video was published on April 6, 2023.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet, Apple, and Shopify. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, and Shopify. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If users start using plug-ins instead of apps, Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) will feel the hit, which Travis Hoium discusses in this video. When ChatGPT was launched, it was a great chatbot that captured users' attention, but the introduction of plug-ins has changed the game in technology. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | If users start using plug-ins instead of apps, Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) will feel the hit, which Travis Hoium discusses in this video. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Travis Hoium has positions in Alphabet, Apple, and Shopify. | If users start using plug-ins instead of apps, Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) will feel the hit, which Travis Hoium discusses in this video. See the 10 stocks *Stock Advisor returns as of March 8, 2023 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, Apple, Microsoft, and Shopify. | If users start using plug-ins instead of apps, Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) will feel the hit, which Travis Hoium discusses in this video. That's right -- they think these 10 stocks are even better buys. Travis Hoium has positions in Alphabet, Apple, and Shopify. |
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16426.0 | 2023-04-09 00:00:00 UTC | 3 Dividend Stocks Billionaires Seem to Love | AAPL | https://www.nasdaq.com/articles/3-dividend-stocks-billionaires-seem-to-love | Billionaires make their fortunes in all sorts of ways. For some, it came partly thanks to their ability to lead or invest in excellent companies. These are the billionaires I want to focus on today. That's because the non-billionaires out there (there are way more of us than there are of them), can sometimes learn something by looking at the kinds of equities that billionaires invest in, including dividend stocks.
There is no shortage of corporations that pay dividends, but they aren't all created equal. Which ones do billionaires like? Let's look at three dividend stocks that got the investing attention of some billionaires: Gilead Sciences (NASDAQ: GILD), Microsoft (NASDAQ: MSFT), and Apple (NASDAQ: AAPL).
1. Gilead Sciences
Gilead Sciences is a leading biotech company with a particular focus on the HIV drug market. It also features among the holdings of Citadel Advisors, a hedge fund run by billionaire investor Ken Griffin. What makes Gilead Sciences an attractive dividend stock? It isn't just the company's yield, although, at 3.6%, it is much higher than the average for the S&P 500 of 1.74%.
Neither is it that Gilead Sciences has raised its quarterly payouts by 31.6% in the past five years. The best part about this biotech is how solid and reliable its business is. Gilead Sciences' portfolio of HIV medicines makes it one of the absolute leaders in this market. For instance, Biktarvy is the top prescribed medicine in this area in the U.S. Descovy is equally successful in the HIV PrEP market.
Gilead Sciences' latest breakthrough in this area is called Sunlenca, a six-month, long-acting regimen that happens to be the first of its kind. Many HIV medicines are administered monthly or bi-monthly. A bi-annual option will undoubtedly attract many eligible patients. Meanwhile, Gilead Sciences' oncology unit is making headway thanks to products such as Trodelvy.
The company has plenty of programs in the pipeline that will allow it to increase its revenue and earnings over time. Like its peers in the biotech industry, Gilead Sciences offers essential products -- lifesaving medicines no one wants to cut back on even when the economy is in shambles. This factor allows the drugmaker to generate somewhat stable revenue and earnings.
That's why income-seeking investors definitely can't go wrong with this stock. And with a cash payout ratio of 44.5%, Gilead Sciences has more than enough cash to cover increasing dividend payments.
2. Microsoft
Microsoft needs no introduction, nor does its co-founder and former CEO, Bill Gates. The billionaire largely made his fortune as a major shareholder and the head of this company. Even though he retired from this role long ago, Gates' nonprofit organization, the Bill & Melinda Gates Foundation, owns shares of the tech giant.
Why should dividend-seeking investors consider Microsoft? Let's first look at the company's operations. Microsoft is known for being the leader in computer operating systems, with an undisputed and large lead over any serious competitor.
The suite of productivity tools it offers is ubiquitous and has become entrenched in the lives of millions of people, granting the company high switching costs. That includes some like Microsoft Teams that rose in popularity amid the pandemic. It is difficult to imagine Microsoft being knocked out of its leading position in this market.
But Microsoft's business extends beyond that. It has become one of the largest players in the cloud computing industry through Microsoft Azure. There is a large opportunity here as the cloud market is rapidly expanding thanks to the advantages it confers to businesses, which include lowering costs and improving efficiency.
Then there is Microsoft's gaming unit, which will remain an important player whether or not the blockbuster acquisition of video game giant Activision Blizzard goes through.
Microsoft's leadership in multiple industries, including at least one with excellent prospects (cloud computing), makes its business strong and capable of sustaining its dividend. The company's quarterly payouts have soared by 61.9% in the last half-decade. Even with a low yield of just 0.95%, Microsoft is an excellent dividend stock.
3. Apple
Apple has been a regular on the list of holdings of billionaire Warren Buffett's Berkshire Hathaway for a while now. The Oracle of Omaha has even referred to the tech giant as "probably the best business" he knows in the world. There is a good reason for that. Apple has a knack for transforming (often by improving) already existing tech, putting its own spin on it to render it even more popular.
That's what it did with the iPhone, which remains its biggest money maker. Apple's brand name is so powerful that it generates decent sales even in challenging economic times like last year. Its products hardly fall under the "necessary goods" category and have plenty of cheaper competitors. But beyond Apple's hardware business, the company's services segment is perhaps its most promising.
Apple offers Apple Pay, Apple TV+, iCloud, Apple Music, and much more. Last year, the company's total active devices reached the 2 billion mark. That is a massive number. Investors should expect Apple to find new ways to monetize this ecosystem in this highly profitable and high-margin segment that will continue growing for years. But what about Apple's dividend?
The company's yield of 0.55% does not look very impressive either, but with a solid business backing it and the regular and massive cash flow Apple generates -- which currently stands at $97.5 billion -- Apple's payouts are secure. The tech giant has increased its dividends by 26% in the past five years. Its low cash payout ratio of 15.3% leaves plenty of room for more hikes.
Investors can buy Apple's stock for both growth and income.
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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway, Gilead Sciences, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Let's look at three dividend stocks that got the investing attention of some billionaires: Gilead Sciences (NASDAQ: GILD), Microsoft (NASDAQ: MSFT), and Apple (NASDAQ: AAPL). There is a large opportunity here as the cloud market is rapidly expanding thanks to the advantages it confers to businesses, which include lowering costs and improving efficiency. Microsoft's leadership in multiple industries, including at least one with excellent prospects (cloud computing), makes its business strong and capable of sustaining its dividend. | Let's look at three dividend stocks that got the investing attention of some billionaires: Gilead Sciences (NASDAQ: GILD), Microsoft (NASDAQ: MSFT), and Apple (NASDAQ: AAPL). Gilead Sciences Gilead Sciences is a leading biotech company with a particular focus on the HIV drug market. The Motley Fool has positions in and recommends Activision Blizzard, Apple, Berkshire Hathaway, Gilead Sciences, and Microsoft. | Let's look at three dividend stocks that got the investing attention of some billionaires: Gilead Sciences (NASDAQ: GILD), Microsoft (NASDAQ: MSFT), and Apple (NASDAQ: AAPL). Gilead Sciences Gilead Sciences is a leading biotech company with a particular focus on the HIV drug market. The company's yield of 0.55% does not look very impressive either, but with a solid business backing it and the regular and massive cash flow Apple generates -- which currently stands at $97.5 billion -- Apple's payouts are secure. | Let's look at three dividend stocks that got the investing attention of some billionaires: Gilead Sciences (NASDAQ: GILD), Microsoft (NASDAQ: MSFT), and Apple (NASDAQ: AAPL). Gilead Sciences Gilead Sciences is a leading biotech company with a particular focus on the HIV drug market. What makes Gilead Sciences an attractive dividend stock? |
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16435.0 | 2023-04-08 00:00:00 UTC | Baidu sues Apple, app developers over fake Ernie bot apps | AAPL | https://www.nasdaq.com/articles/baidu-sues-apple-app-developers-over-fake-ernie-bot-apps | SHANGHAI, April 8 (Reuters) - Chinese search engine giant Baidu 9888.HK, BIDU.O has filed lawsuits against "relevant" app developers and Apple Inc AAPL.O over fake copies of its Ernie bot app available on Apple's app store.
The company's artificial intelligence powered Ernie bot, launched last month, has been touted as China's closest answer to the U.S.-developed chatbot ChatGPT.
Baidu said it had lodged lawsuits in Beijing Haidian People's Court against the developers behind the counterfeit applications of its Ernie bot and the Apple company.
"At present, Ernie does not have any official app," Baidu said in a statement late on Friday posted on its official "Baidu AI" WeChat account.
It also posted a photograph of its court filing.
"Until our company's official announcement, any Ernie app you see from App Store or other stores are fake," it said.
Apple did not immediately respond to a request for comment.
A Reuters search on Saturday found there were still at least four apps bearing the Chinese-language name of the Ernie bot, all fake, in Apple's App Store.
The Ernie bot is only available to users who apply for and receive access codes. In its statement, Baidu also warned against people selling access codes.
(Reporting by Jason Xue and Brenda Goh; Editing by Robert Birsel)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | SHANGHAI, April 8 (Reuters) - Chinese search engine giant Baidu 9888.HK, BIDU.O has filed lawsuits against "relevant" app developers and Apple Inc AAPL.O over fake copies of its Ernie bot app available on Apple's app store. The company's artificial intelligence powered Ernie bot, launched last month, has been touted as China's closest answer to the U.S.-developed chatbot ChatGPT. Baidu said it had lodged lawsuits in Beijing Haidian People's Court against the developers behind the counterfeit applications of its Ernie bot and the Apple company. | SHANGHAI, April 8 (Reuters) - Chinese search engine giant Baidu 9888.HK, BIDU.O has filed lawsuits against "relevant" app developers and Apple Inc AAPL.O over fake copies of its Ernie bot app available on Apple's app store. "Until our company's official announcement, any Ernie app you see from App Store or other stores are fake," it said. A Reuters search on Saturday found there were still at least four apps bearing the Chinese-language name of the Ernie bot, all fake, in Apple's App Store. | SHANGHAI, April 8 (Reuters) - Chinese search engine giant Baidu 9888.HK, BIDU.O has filed lawsuits against "relevant" app developers and Apple Inc AAPL.O over fake copies of its Ernie bot app available on Apple's app store. "Until our company's official announcement, any Ernie app you see from App Store or other stores are fake," it said. A Reuters search on Saturday found there were still at least four apps bearing the Chinese-language name of the Ernie bot, all fake, in Apple's App Store. | SHANGHAI, April 8 (Reuters) - Chinese search engine giant Baidu 9888.HK, BIDU.O has filed lawsuits against "relevant" app developers and Apple Inc AAPL.O over fake copies of its Ernie bot app available on Apple's app store. Baidu said it had lodged lawsuits in Beijing Haidian People's Court against the developers behind the counterfeit applications of its Ernie bot and the Apple company. In its statement, Baidu also warned against people selling access codes. |
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16436.0 | 2023-04-07 00:00:00 UTC | Guru Fundamental Report for AAPL - Warren Buffett | AAPL | https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-warren-buffett-16 | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
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About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. | Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL). | Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL). | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. |
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16448.0 | 2023-04-06 00:00:00 UTC | Netflix (NFLX) Expands International Content With Stolen | AAPL | https://www.nasdaq.com/articles/netflix-nflx-expands-international-content-with-stolen | Netflix NFLX is expanding its international content portfolio with the adaptation of Ann-Helen Laestadius’ acclaimed novel, Stolen. Elin Kristina Oskal is starring in the leading role of Elsa and the movie is directed by Elle Marja Eira. It is slated to release globally on Netflix in 2024.
Originally published in Sweden in 2021, Stolen tells the story of a young woman’s “struggle to defend her indigenous heritage in a world where xenophobia is on the rise, climate change is threatening reindeer herding, and young people choose suicide in the face of collective desperation.”
Netflix producing Stolen reflects its initiatives to expand and diversify international content. Last year, the streaming giant entered into an agreement with the International Sami Film Institute to support Sami talent through investments in training and education.
Recently, the company announced that it would release the Swedish drama film One More Time, globally on Apr 21. It has a couple of Danish titles, including the thriller series, The Nurse, and the feature film, A Beautiful Life, scheduled to be launched in 2023.
Netflix’s latest Korean action-adventure movie, Kill Boksoon, entered Netflix’s top ten list with 19.61 million hours viewed, grabbing the #1 spot.
Strong Portfolio to Drive Growth
Netflix’s strategy to support communities in the regions it operates improves its footprint. Its ever-expanding foreign language content portfolio has been a major growth driver, as the company continues to face stiff competition from the likes of Apple AAPL, Disney DIS and Comcast CMCSA in the saturated streaming market.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
The company’s strong and diverse content portfolio has been a major growth driver in recent times. It gained 7.66 million paid subscribers globally, higher than its estimate of 4.5 million users in the fourth quarter of 2022. Hits like Wednesday, Harry & Meghan, Troll, and Glass Onion: A Knives Out Mystery helped it win subscribers.
Netflix’s strong content is also helping it win accolades. It scooped six wins out of 16 nominations at the Oscars 2023. Apart from movies and shows, Netflix has started diversifying its portfolio with mobile games. It expects to launch 40 games this year and 70 games are in development.
For the first quarter of 2023, this Zacks Rank #3 (Hold) forecasts earnings of $2.82 per share, indicating a 20% decline from the figure reported in the year-ago quarter. Total revenues are anticipated to be $8.172 billion, suggesting year-over-year growth of 3.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Estimates Steady Prior to Q1 Results
Netflix shares have gained 16.1% year to date, outperforming the Zacks Consumer Discretionary sector’s gain of 8.8%. It has also outperformed Disney and Comcast but underperformed Apple shares. Disney, Comcast, and Apple have returned 15%, 8.8% and 26%, respectively.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $8.18 billion, indicating 3.9% growth from the year-ago quarter’s reported figure.
The consensus mark for first-quarter 2023 earnings is pegged at $2.81 per share, unchanged over the past 30 days, indicating a decline of 20.4% from the year-ago quarter reported figure.
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. | Its ever-expanding foreign language content portfolio has been a major growth driver, as the company continues to face stiff competition from the likes of Apple AAPL, Disney DIS and Comcast CMCSA in the saturated streaming market. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. It has a couple of Danish titles, including the thriller series, The Nurse, and the feature film, A Beautiful Life, scheduled to be launched in 2023. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Its ever-expanding foreign language content portfolio has been a major growth driver, as the company continues to face stiff competition from the likes of Apple AAPL, Disney DIS and Comcast CMCSA in the saturated streaming market. Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote The company’s strong and diverse content portfolio has been a major growth driver in recent times. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Its ever-expanding foreign language content portfolio has been a major growth driver, as the company continues to face stiff competition from the likes of Apple AAPL, Disney DIS and Comcast CMCSA in the saturated streaming market. Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote The company’s strong and diverse content portfolio has been a major growth driver in recent times. | Its ever-expanding foreign language content portfolio has been a major growth driver, as the company continues to face stiff competition from the likes of Apple AAPL, Disney DIS and Comcast CMCSA in the saturated streaming market. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Comcast Corporation (CMCSA) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote The company’s strong and diverse content portfolio has been a major growth driver in recent times. |
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16462.0 | 2023-04-05 00:00:00 UTC | Invest with (or Against) Jim Cramer with These New ETFs | AAPL | https://www.nasdaq.com/articles/invest-with-or-against-jim-cramer-with-these-new-etfs | If you’ve ever dreamed of investing alongside CNBC’s Jim Cramer or going against his picks through a single investment vehicle, your oddly-specific dreams have now come true, thanks to two new ETFs from Tuttle Capital.
Long Jim or Short Jim?
The Long Cramer Tracker ETF (BATS:LJIM) affords investors the opportunity to invest alongside Cramer by taking positions in stocks and ETFs of sectors he speaks positively of or recommends on his popular show, Mad Money. Conversely, the Inverse Cramer ETF allows investors to “fade” Cramer by shorting stocks he recommends and by taking positions in stocks or sectors that he’s bearish about. The funds also invest in (or short) stocks that Cramer mentions on Twitter.
Tuttle Capital is also the firm behind the Tuttle Capital Short Innovation ETF (NASDAQ:SARK), which fades the picks of the ARK Invest Innovation ETF (NYSEARCA:ARKK). Like Cramer, ARK’s founder and CIO Cathie Wood is another high-profile, polarizing figure in the investing world, so it appears that Tuttle is going back to the well here with these two Cramer-themed ETFs.
SARK has attracted a decent amount of publicity and managed to accrue over $300 million in assets under management (AUM) so far, but the two Cramer ETFs have a long way to go to this point -- SJIM has about $5.5 million in AUM while LJIM has a microscopic AUM of $1 million.
The pair of ETFs only launched in early March, so their track record is based on a small sample size, but so far, SJIM is up 0.5% since inception, while LJIM is down 2.6%.
Looking into LJIM's Holdings
LJIM holds 36 positions, and its top 10 holdings make up just 35.5% of assets.
Cramer is well-known to be a long-time fan of Nvidia (NASDAQ:NVDA), even going as far as to name his dog after the company, so it is unsurprising that the semiconductor giant is LJIM’s largest holding, with a 5% weighting.
Cramer was pounding the table on Meta Platforms (NASDAQ:META) when it bottomed out in late 2022, and Meta is LJIM’s second-largest position.
Looking at LJIM as a whole, you’ll find an assortment of blue-chip U.S. stocks ranging from Dow components like Boeing (NYSE:BA) and Caterpillar (NYSE:CAT) to more tech and growth names like Advanced Micro Devices (NASDAQ:AMD), Tesla (NASDAQ:TSLA), and the aforementioned Nvidia and Meta Platforms.
Subjectively, just from my own experience watching Mad Money and Squawk on the Street here and there over the years, I would say that this strategy reflects Cramer’s general investment style fairly accurately. Below, you’ll find an overview of LJIM’s top holdings using TipRanks’ holdings screen.
While these picks may not be anything fancy or under the radar, you could do a lot worse than investing in a diversified basket of blue-chip U.S. companies and top growth stocks over the long run, so LJIM actually doesn’t look bad.
In fact, LJIM has managed to accrue an ETF Smart Score of 7 out of 10, which is just on the cusp of an outperform rating based on TipRanks’ proprietary Smart Score system. Individual top 10 holdings like Nvidia, On Holding AG (NYSE:ONON), Starbucks (NASDAQ:SBUX), ChampionX (NASDAQ:CHX), and Apple (NASDAQ:AAPL) all have Smart Scores of 8 or above.
What is the Price Target for LJIM?
LJIM stock has also accrued a Moderate Buy consensus rating from analysts. The average LJIM stock price target of $29.24 implies 17.2% upside potential from current levels.
SJIM's Holdings
On the other hand, SJIM is made up mostly of short positions in the stocks that Cramer touts. There are also smaller positions in companies that Cramer has been bearish on. Below you'll find an overview of SJIM's holdings.
One thing that I find curious about SJIM’s holdings is that it doesn’t have a position in Coinbase (NASDAQ:COIN) (or a crypto-themed ETF), given Cramer’s long-time aversion to crypto, or any Chinese stocks or ETFs, given that Cramer has advised viewers against investing in China for years, so I would think a position in something like an Alibaba (NYSE:BABA) would be a strong fit here.
Size and Fees
With just $5.5 million in assets under management, SJIM is a minuscule ETF, and LJIM is even smaller, with $1 million in assets under management. This minuscule size makes these ETFs particularly susceptible to market volatility.
Another negative here is the high fees. This is an actively-managed, niche-focused ETF, so its fees are going to be higher than a low-fee, broad-market ETF like the Vanguard S&P 500 ETF (NYSEARCA:VOO) or the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), but the expense ratio of 1.2% that both ETFs have still seems a bit steep.
Spare a Thought for Jim
It seems that Cramer has attracted quite a few detractors in recent times; bashing his picks that don’t work out has become a popular pastime on social media. For instance, the “Inverse Cramer” profile on Twitter has accrued over 226,000 followers since 2021.
In fairness to Cramer, Mad Money has been on the air since 2005, and he hosts it almost every day that the market is open (in addition to co-hosting Squawk on the Street most days), so anyone who needs to fill up this much airtime is bound to have their share of hits and misses.
While his strategy of investing in blue-chip U.S. stocks is nothing fancy or complex, for the most part, it has been an effective strategy for investors over the long run. His advice of investing in index funds first and diversifying isn't bad advice for new investors, and he has helped to get many people into investing for the first time, which is a net positive for society as a whole in my view, so I don't think he truly deserves the bad rap that he gets on some of the snarkier corners of the internet.
Additional Thoughts
Cramer can change his mind about a pick whenever he wants, or flip from bullish to bearish on a company on a whim, so there will likely be an elevated level of turnover here, especially in SJIM. According to the ETF's prospectus, "Under normal circumstances, the Fund will hold positions
no longer than a 5-day trading week but could hold a position longer if Cramer continues to have a contrary opinion." This high level of turnover could lead to a higher tax burden for investors holding these vehicles in taxable accounts.
While SARK (the aforementioned ETF that enables investors to fade the ARK Innovation ETF) has garnered a larger AUM, the difference between these ETFs and SARK is that SARK can also be used by investors as a convenient way to short a certain breed of tech stock given ARK’s association with richly-valued tech stocks.
I’m actually more bullish on LJIM than SJIM, based on its relatively high-quality portfolio of holdings with strong Smart Scores. However, given the nature of Cramer’s investment style, investors can probably simply own a cheaper broad-market U.S. ETF and achieve roughly similar results.
There's Always a Bull Market Somewhere
While the idea of the inverse Cramer ETF is entertaining, I don’t really see it as a viable long-term investing strategy. Given their size, fees, and strategies, it seems unlikely that these ETFs will attract significant institutional investments and will likely end up as more of a novelty than a widespread long-term investing strategy.
That said, the goal of the ETFs may simply be to generate more publicity for Tuttle Capital, and they have succeeded in that regard. As Cramer says, "There's always a bull market somewhere."
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Individual top 10 holdings like Nvidia, On Holding AG (NYSE:ONON), Starbucks (NASDAQ:SBUX), ChampionX (NASDAQ:CHX), and Apple (NASDAQ:AAPL) all have Smart Scores of 8 or above. Like Cramer, ARK’s founder and CIO Cathie Wood is another high-profile, polarizing figure in the investing world, so it appears that Tuttle is going back to the well here with these two Cramer-themed ETFs. Cramer is well-known to be a long-time fan of Nvidia (NASDAQ:NVDA), even going as far as to name his dog after the company, so it is unsurprising that the semiconductor giant is LJIM’s largest holding, with a 5% weighting. | Individual top 10 holdings like Nvidia, On Holding AG (NYSE:ONON), Starbucks (NASDAQ:SBUX), ChampionX (NASDAQ:CHX), and Apple (NASDAQ:AAPL) all have Smart Scores of 8 or above. The Long Cramer Tracker ETF (BATS:LJIM) affords investors the opportunity to invest alongside Cramer by taking positions in stocks and ETFs of sectors he speaks positively of or recommends on his popular show, Mad Money. Conversely, the Inverse Cramer ETF allows investors to “fade” Cramer by shorting stocks he recommends and by taking positions in stocks or sectors that he’s bearish about. | Individual top 10 holdings like Nvidia, On Holding AG (NYSE:ONON), Starbucks (NASDAQ:SBUX), ChampionX (NASDAQ:CHX), and Apple (NASDAQ:AAPL) all have Smart Scores of 8 or above. The Long Cramer Tracker ETF (BATS:LJIM) affords investors the opportunity to invest alongside Cramer by taking positions in stocks and ETFs of sectors he speaks positively of or recommends on his popular show, Mad Money. One thing that I find curious about SJIM’s holdings is that it doesn’t have a position in Coinbase (NASDAQ:COIN) (or a crypto-themed ETF), given Cramer’s long-time aversion to crypto, or any Chinese stocks or ETFs, given that Cramer has advised viewers against investing in China for years, so I would think a position in something like an Alibaba (NYSE:BABA) would be a strong fit here. | Individual top 10 holdings like Nvidia, On Holding AG (NYSE:ONON), Starbucks (NASDAQ:SBUX), ChampionX (NASDAQ:CHX), and Apple (NASDAQ:AAPL) all have Smart Scores of 8 or above. Conversely, the Inverse Cramer ETF allows investors to “fade” Cramer by shorting stocks he recommends and by taking positions in stocks or sectors that he’s bearish about. Tuttle Capital is also the firm behind the Tuttle Capital Short Innovation ETF (NASDAQ:SARK), which fades the picks of the ARK Invest Innovation ETF (NYSEARCA:ARKK). |
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16500.0 | 2023-04-04 00:00:00 UTC | Best & Worst Performing ETF Areas of Q1 2023 | AAPL | https://www.nasdaq.com/articles/best-worst-performing-etf-areas-of-q1-2023 | A volatile first quarter ended on a strong note for stocks. The Nasdaq posted its strongest quarter since the second quarter of 2020, up more than 20%. The S&P 500 gained 8%, while the Dow returned just about 1%.
Technology and Communication Services were the best performing sectors, followed by Consumer Discretionary. Financials and Energy were the biggest losers.
Tech stocks have been in favor this year as investors believe that the Fed could stop raising rates soon. These stocks also benefited from their safe-haven status amid banking turmoil.
Apple AAPL gained 30%, while NVIDIA NVDA and Tesla TSLA surged more than 90% and 80% respectively.
Bitcoin soared more than 70% sending the Valkyrie Bitcoin Miners ETF WGMI over 100% during the quarter. Strong interest in AI related stocks benefitted semiconductor, metaverse and Robotics ETFs.
The Noble Absolute Return ETF NOPE plunged about 62% as the hedge fund like ETF made some ill-timed bets.
Regional banks, natural gas, nickel, and cannabis related ETFs were also among the worst performing areas.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple AAPL gained 30%, while NVIDIA NVDA and Tesla TSLA surged more than 90% and 80% respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports iShares Semiconductor ETF (SOXX): ETF Research Reports SPDR S&P Regional Banking ETF (KRE): ETF Research Reports ARK Next Generation Internet ETF (ARKW): ETF Research Reports Roundhill Ball Metaverse ETF (METV): ETF Research Reports Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports Roundhill Cannabis ETF (WEED): ETF Research Reports Noble Absolute Return ETF (NOPE): ETF Research Reports To read this article on Zacks.com click here. Strong interest in AI related stocks benefitted semiconductor, metaverse and Robotics ETFs. | Apple AAPL gained 30%, while NVIDIA NVDA and Tesla TSLA surged more than 90% and 80% respectively. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports iShares Semiconductor ETF (SOXX): ETF Research Reports SPDR S&P Regional Banking ETF (KRE): ETF Research Reports ARK Next Generation Internet ETF (ARKW): ETF Research Reports Roundhill Ball Metaverse ETF (METV): ETF Research Reports Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports Roundhill Cannabis ETF (WEED): ETF Research Reports Noble Absolute Return ETF (NOPE): ETF Research Reports To read this article on Zacks.com click here. The Noble Absolute Return ETF NOPE plunged about 62% as the hedge fund like ETF made some ill-timed bets. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports iShares Semiconductor ETF (SOXX): ETF Research Reports SPDR S&P Regional Banking ETF (KRE): ETF Research Reports ARK Next Generation Internet ETF (ARKW): ETF Research Reports Roundhill Ball Metaverse ETF (METV): ETF Research Reports Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports Roundhill Cannabis ETF (WEED): ETF Research Reports Noble Absolute Return ETF (NOPE): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL gained 30%, while NVIDIA NVDA and Tesla TSLA surged more than 90% and 80% respectively. Financials and Energy were the biggest losers. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports iShares Semiconductor ETF (SOXX): ETF Research Reports SPDR S&P Regional Banking ETF (KRE): ETF Research Reports ARK Next Generation Internet ETF (ARKW): ETF Research Reports Roundhill Ball Metaverse ETF (METV): ETF Research Reports Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports Roundhill Cannabis ETF (WEED): ETF Research Reports Noble Absolute Return ETF (NOPE): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL gained 30%, while NVIDIA NVDA and Tesla TSLA surged more than 90% and 80% respectively. Strong interest in AI related stocks benefitted semiconductor, metaverse and Robotics ETFs. |
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16533.0 | 2023-04-03 00:00:00 UTC | US STOCKS-S&P, Nasdaq futures slip as oil output cut reignites inflation worries | AAPL | https://www.nasdaq.com/articles/us-stocks-sp-nasdaq-futures-slip-as-oil-output-cut-reignites-inflation-worries | By Ankika Biswas and Amruta Khandekar
April 3 (Reuters) - Futures tracking the S&P 500 and the Nasdaq fell on Monday as a surge in oil prices renewed worries of persistent inflationary pressures, bolstering bets that the U.S. Federal Reserve will deliver another interest rate hike at its next meeting.
Saudi Arabia and other OPEC+ oil producers announced further oil output cuts of around 1.16 million barrels per day, threatening an immediate rise in prices.
This comes just days after data showing cooling inflation fueled hopes that the Fed could soon end its aggressive monetary tightening.
As oil prices jumped, Dow Jones index constituent Chevron Corp CVX.N rose 3.8% in premarket trade, while shares of other energy firms such as Exxon Mobil Corp XOM.N and Occidental Petroleum Corp OXY.N were also up between 3% and 5%. O/R
"We could see inflation bottom out a little bit higher than anticipated, which may mean that the Fed continues their rate hiking a lot longer and further than many currently expect," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest.
An uptick in U.S. Treasury yields pushed major technology stocks and other growth shares such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O down between 0.4% and 1%.
Traders' bets were largely tilted towards a 25-basis point rate hike in May, with odds of a pause at 39.8%, according to CME Group's Fedwatch tool.
Among other major stocks, Tesla Inc TSLA.O fell 2.1% after the electric-vehicle maker posted record quarterly vehicle deliveries, but quarter-on-quarter sales growth was modest despite price cuts.
At 7:01 a.m. ET, Dow e-minis 1YMcv1 were up 131 points, or 0.39%, S&P 500 e-minis EScv1 were down 1.75 points, or 0.04%, and Nasdaq 100 e-minis NQcv1 were down 81 points, or 0.61%.
U.S. stocks have weathered turbulence in the global banking sector to notch gains in the first quarter, with the S&P 500 .SPX jumping 7% and bouncing back from a near 20% drop in 2022. The tech-heavy Nasdaq .IXIC recorded its strongest first-quarter jump of 17% since mid-2020.
"We've seen the tech sector rally so hard and so far above everything else that we do expect some profit taking during the month of April," Nolte said.
Investors will closely monitor S&P Global and ISM manufacturing PMI data for March on Monday, with the latter expected to show manufacturing activity weakened in March.
The first-quarter earnings season is also around the corner, with companies expected to start reporting quarterly results in the next few weeks.
Remarks by Fed Board Governor Lisa Cook on economic outlook and monetary policy are also expected later on Monday.
Among other stocks, shares of American Airlines Group Inc AAL.O and Delta Air Lines Inc DAL.Nfell about 1% each premarket on surging crude prices.
McDonald's Corp MCD.N edged 0.7% higher after a report said the burger chain is temporarily closing its U.S. offices this week and preparing to inform corporate employees about layoffs.
(Reporting by Ankika Biswas and Amruta Khandekar in Bengaluru; Editing by Shounak Dasgupta)
(([email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | An uptick in U.S. Treasury yields pushed major technology stocks and other growth shares such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O down between 0.4% and 1%. By Ankika Biswas and Amruta Khandekar April 3 (Reuters) - Futures tracking the S&P 500 and the Nasdaq fell on Monday as a surge in oil prices renewed worries of persistent inflationary pressures, bolstering bets that the U.S. Federal Reserve will deliver another interest rate hike at its next meeting. O/R "We could see inflation bottom out a little bit higher than anticipated, which may mean that the Fed continues their rate hiking a lot longer and further than many currently expect," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest. | An uptick in U.S. Treasury yields pushed major technology stocks and other growth shares such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O down between 0.4% and 1%. By Ankika Biswas and Amruta Khandekar April 3 (Reuters) - Futures tracking the S&P 500 and the Nasdaq fell on Monday as a surge in oil prices renewed worries of persistent inflationary pressures, bolstering bets that the U.S. Federal Reserve will deliver another interest rate hike at its next meeting. As oil prices jumped, Dow Jones index constituent Chevron Corp CVX.N rose 3.8% in premarket trade, while shares of other energy firms such as Exxon Mobil Corp XOM.N and Occidental Petroleum Corp OXY.N were also up between 3% and 5%. | An uptick in U.S. Treasury yields pushed major technology stocks and other growth shares such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O down between 0.4% and 1%. By Ankika Biswas and Amruta Khandekar April 3 (Reuters) - Futures tracking the S&P 500 and the Nasdaq fell on Monday as a surge in oil prices renewed worries of persistent inflationary pressures, bolstering bets that the U.S. Federal Reserve will deliver another interest rate hike at its next meeting. As oil prices jumped, Dow Jones index constituent Chevron Corp CVX.N rose 3.8% in premarket trade, while shares of other energy firms such as Exxon Mobil Corp XOM.N and Occidental Petroleum Corp OXY.N were also up between 3% and 5%. | An uptick in U.S. Treasury yields pushed major technology stocks and other growth shares such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O down between 0.4% and 1%. By Ankika Biswas and Amruta Khandekar April 3 (Reuters) - Futures tracking the S&P 500 and the Nasdaq fell on Monday as a surge in oil prices renewed worries of persistent inflationary pressures, bolstering bets that the U.S. Federal Reserve will deliver another interest rate hike at its next meeting. This comes just days after data showing cooling inflation fueled hopes that the Fed could soon end its aggressive monetary tightening. |
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16537.0 | 2023-04-02 00:00:00 UTC | The 7 Best Tech ETFs to Buy for Diversified Exposure | AAPL | https://www.nasdaq.com/articles/the-7-best-tech-etfs-to-buy-for-diversified-exposure | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While picking individual market ideas may offer the biggest chance for upside, the process carries risks, which is where the best tech ETFs to buy may earn their keep. Fundamentally, exchange-traded funds offer a broad range of stocks under one basket, thus limiting risk while maximizing success. Further, focusing on innovative sectors like technology may yield compelling opportunities.
That said, humans have their own limitations regarding researching which funds may be the best tech ETFs to buy. Therefore, I decided to give ChatGPT a whirl and asked it for seven tech-related ETFs that offer diversified exposure. The below names are exactly what the artificial intelligence protocol provided in the order you see.
XLK Technology Select Sector SPDR Fund $151.01
VGT Vanguard Information Technology Index Fund $385.47
IXN iShares Global Tech ETF $54.36
FDN First Trust Dow Jones Internet Index Fund $147.85
QQQ Invesco QQQ Trust Series 1 $320.93
BOTZ Global X Robotics and Artificial Intelligence $25.50
ARKK ARK Innovation ETF $40.34
Technology Select Sector SPDR Fund (XLK)
Source: kenary820 / Shutterstock
According to ChatGPT, the Technology Select Sector SPDR Fund (NYSEARCA:XLK) tracks the performance of the Technology Select Sector Index, which includes companies in the technology sector of the S&P 500. Since the Jan. opener, the XLK got off to a blistering start, gaining nearly 21% of market value. However, for the year, it’s down more than 6%.
Still, the XLK may rank among the best tech ETFs for broad exposure to the innovation space. For example, the top three holdings of the fund are Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Nvidia (NASDAQ:NVDA). Notably, the former two enterprises feature a weighting of 23.76% and 22.79%. Therefore, unless you believe the biggest tech giants in the world are about to implode, XLK should be a safe bet.
In terms of expense, the XLK appeals to cost-conscious investors with an expense ratio of 0.1%. This compares very favorably to the category average of 0.56%.
Vanguard Information Technology ETF (VGT)
Source: SHUN_J / Shutterstock
Per the AI protocol, the Vanguard Information Technology ETF (NYSEARCA:VGT) tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index, which includes companies in the technology sector of the U.S. stock market. Since the beginning of the year, VGT gained nearly 20% of its market value. However, it’s worth pointing out that the ETF dipped 9% in the trailing year.
As with the Technology Select Sector SPDR Fund, Vanguard Information features a heavy dosing of sector giants. Indeed, the top three holdings run almost identical to XLK’s: Apple, Microsoft, and Nvidia. Further, the former two enterprises carry the load for the VGT, with net weightings of 22.32% and 17.12%, respectively.
However, VGT distinguishes itself with exposure to the financial services sector. While the XLK is 100% dedicated to technology, VGT throws a bone to financial services (7.12% weighting) and industrials (1.76%). Therefore, it’s a more diverse play among the best tech ETFs to buy. Lastly, VGT features an expense ratio of 0.1%, which is relatively cheap.
iShares Global Tech ETF (IXN)
Source: SWKStock / Shutterstock
As ChatGPT stated, the iShares Global Tech ETF (NYSEARCA:IXN) tracks the performance of the S&P Global 1200 Information Technology Sector Index, which includes companies in the technology sector of global stock markets. Like the other names among the best tech ETFs to buy, IXN got off to a strong start in 2023. Since the Jan. opener, it popped up nearly 21%.
However, IXN also dipped roughly 8% in the past 365 days, something to watch for prospective investors. As with Vanguard Information Technology, IXN caters to tech heavyweights. Its top three holdings are Apple, Microsoft, and Nvidia. On a familiar theme, Apple and Microsoft make up the bulk of the ETF, with weightings of 22.27% and 19.52%, respectively.
What makes IXN slightly more distinct than other AI-recommended entries for best tech ETFs to buy centers on diversification. The IXN happens to throw a bone (a very small bone) to industrials with a 0.49% weighting. Still, investors should watch the expense ratio of 0.4%, which is a bit high compared to the category average of 0.56%.
First Trust Dow Jones Internet Index Fund (FDN)
Source: Eviart / Shutterstock.com
Per ChatGPT, the First Trust Dow Jones Internet Index Fund (NYSEARCA:FDN) tracks the performance of the Dow Jones Internet Composite Index, which includes companies that generate at least 50% of their revenue from the internet. Since the January opener, FDN gained almost 17% of its market value. However, it fell more than 23% in the trailing one-year period.
For speculators, this might make a case for the best tech ETFs to buy on a relative “chart” discount. Contextually, FDN represents a fund that aims to swing for the fences. Its top three holdings are Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL).
Of course, the risk factor here centers on the volatility of the three innovators. At the same time, according to TipRanks, all three feature consensus buy ratings. For Amazon and Alphabet, the consensus stands as a strong buy. Although FDN entices with its upside potential, keep in mind that its expense ratio runs warm at 0.51%. Again, the category average comes out to 0.56%.
Invesco QQQ Trust (QQQ)
Source: Maxx-Studio/ShutterStock.com
From ChatGPT, the Invesco QQQ Trust (NASDAQ:QQQ) tracks the performance of the Nasdaq 100 index, which includes 100 of the largest non-financial companies listed on the Nasdaq stock exchange. Since the beginning of this year, QQQ managed an outstanding performance, gaining over 19% of market value. However, it’s still recovering from the tech fallout of 2022. Since the trailing year, it’s down 13%.
For those seeking a wide canvas of innovative firms, the QQQ ETF stands among the best tech ETFs to buy for diversification. Yes, the top three holdings carry a familiar tune: Microsoft (at 12.52% net weighting), Apple (12.32%), and Amazon (6.19%). However, QQQ doesn’t exclusively (or near-exclusively) focus on the tech sector.
In fact, at the time of writing, the QQQ represents just under 50% of the fund’s weighting. Coming in second place stands the communications services industry at 16.3%. Rounding out the top three is consumer cyclical at 15%. Finally, the QQQ offers a discount in terms of its 0.2% expense ratio. That’s meaningfully under the category average of 0.54%.
Global X Robotics & Artificial Intelligence ETF (BOTZ)
Source: shutterstock.com/bangoland
According to ChatGPT, the Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ) tracks the performance of the Indxx Global Robotics & Artificial Intelligence Thematic Index, which includes companies involved in the development and production of robotics and artificial intelligence products and services. Since the January opener, BOTZ gained over 21% of its market value.
Before you get too excited, you should also note that BOTZ dipped nearly 14% in the past 365 days. Nevertheless, it’s easy to see why ChatGPT suggested BOTZ as one of the best tech ETFs to buy for diversification. Basically, the fund doesn’t just carry a wide canvas of tech-related enterprises. Instead, its specific focus aims at the robotics and automation sector.
In that regard, it’s quite diverse. While the tech segment commands 47.27% of the net weighting, the industrials, and healthcare make up the top three with weights of 35.62% and 14.82%, respectively. Also, BOTZ is geographically diverse, with significant exposure in the U.S. and Japan.
However, BOTZ presents a lofty cost profile with an expense ratio of 0.68%. That’s just under the category average of 0.69%.
ARK Innovation ETF (ARKK)
Source: shutterstock.com/Imagentle
Finally, the AI protocol notes that the ARK Innovation ETF (NYSEARCA:ARKK) seeks to provide exposure to companies that are focused on disruptive innovation, including those involved in DNA technologies, robotics, energy storage, and more. Since the January opener, ARKK adopted a take-no-prisoners attitude, skyrocketing by over 26%. Nevertheless, it’s too early to celebrate as it also absorbed a 42% loss in the trailing year.
Understandably, ChatGPT selected ARKK as a candidate for best tech ETFs to buy for diversification because, well, it’s diverse. You can find the individual holdings here, which cover a wide range of relevancies. From electric vehicles to communication services to content streaming to cryptocurrencies, you can’t go wrong with ARKK if you’re primarily seeking a shotgun approach to the tech ecosystem.
However, ARKK represents a bold bet that could go awry based on broader economic circumstances. For instance, if monetary policy doesn’t play ball, cryptos may tumble. Therefore, it’s a high risk, high reward. If that appeals to you, more power to you. However, keep in mind that ARKK’s expense ratio runs extremely hot at 0.75%. Here, the category average sits at 0.46%.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post The 7 Best Tech ETFs to Buy for Diversified Exposure 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. | For example, the top three holdings of the fund are Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Nvidia (NASDAQ:NVDA). From electric vehicles to communication services to content streaming to cryptocurrencies, you can’t go wrong with ARKK if you’re primarily seeking a shotgun approach to the tech ecosystem. A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. | For example, the top three holdings of the fund are Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Nvidia (NASDAQ:NVDA). XLK Technology Select Sector SPDR Fund $151.01 VGT Vanguard Information Technology Index Fund $385.47 IXN iShares Global Tech ETF $54.36 FDN First Trust Dow Jones Internet Index Fund $147.85 QQQ Invesco QQQ Trust Series 1 $320.93 BOTZ Global X Robotics and Artificial Intelligence $25.50 ARKK ARK Innovation ETF $40.34 Technology Select Sector SPDR Fund (XLK) Source: kenary820 / Shutterstock According to ChatGPT, the Technology Select Sector SPDR Fund (NYSEARCA:XLK) tracks the performance of the Technology Select Sector Index, which includes companies in the technology sector of the S&P 500. First Trust Dow Jones Internet Index Fund (FDN) Source: Eviart / Shutterstock.com Per ChatGPT, the First Trust Dow Jones Internet Index Fund (NYSEARCA:FDN) tracks the performance of the Dow Jones Internet Composite Index, which includes companies that generate at least 50% of their revenue from the internet. | For example, the top three holdings of the fund are Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Nvidia (NASDAQ:NVDA). XLK Technology Select Sector SPDR Fund $151.01 VGT Vanguard Information Technology Index Fund $385.47 IXN iShares Global Tech ETF $54.36 FDN First Trust Dow Jones Internet Index Fund $147.85 QQQ Invesco QQQ Trust Series 1 $320.93 BOTZ Global X Robotics and Artificial Intelligence $25.50 ARKK ARK Innovation ETF $40.34 Technology Select Sector SPDR Fund (XLK) Source: kenary820 / Shutterstock According to ChatGPT, the Technology Select Sector SPDR Fund (NYSEARCA:XLK) tracks the performance of the Technology Select Sector Index, which includes companies in the technology sector of the S&P 500. Vanguard Information Technology ETF (VGT) Source: SHUN_J / Shutterstock Per the AI protocol, the Vanguard Information Technology ETF (NYSEARCA:VGT) tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index, which includes companies in the technology sector of the U.S. stock market. | For example, the top three holdings of the fund are Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Nvidia (NASDAQ:NVDA). XLK Technology Select Sector SPDR Fund $151.01 VGT Vanguard Information Technology Index Fund $385.47 IXN iShares Global Tech ETF $54.36 FDN First Trust Dow Jones Internet Index Fund $147.85 QQQ Invesco QQQ Trust Series 1 $320.93 BOTZ Global X Robotics and Artificial Intelligence $25.50 ARKK ARK Innovation ETF $40.34 Technology Select Sector SPDR Fund (XLK) Source: kenary820 / Shutterstock According to ChatGPT, the Technology Select Sector SPDR Fund (NYSEARCA:XLK) tracks the performance of the Technology Select Sector Index, which includes companies in the technology sector of the S&P 500. Since the beginning of the year, VGT gained nearly 20% of its market value. |
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16539.0 | 2023-04-01 00:00:00 UTC | 3 Robinhood Stocks to Buy Right Now | AAPL | https://www.nasdaq.com/articles/3-robinhood-stocks-to-buy-right-now-7 | Robinhood (NASDAQ: HOOD), the online brokerage that popularized commission-free trades among retail investors, is often associated with meme stocks, speculative option trades, and cryptocurrencies. However, Robinhood's investors also hold plenty of promising blue-chip stalwarts and growth stocks in their portfolios.
According to Robinhood's own investor index, Walt Disney (NYSE: DIS), Apple (NASDAQ: AAPL), and NIO (NYSE: NIO) are among the most widely held stocks on its platform. Let's see why these three stocks could also deliver promising returns for long-term investors who might not think of themselves as "Robinhood" traders.
Image source: Getty Images.
1. Disney
Disney's stock closed at a record high of $201.91 per share on March 8, 2021, but it now trades more than 50% below that level. The House of Mouse was once considered a great post-pandemic reopening play as consumers flocked back to the movie theaters and its theme parks, but lost its luster as investors focused on its streaming losses and CEO Bob Chapek's tendency to aggressively cut costs instead of foster growth.
That's why many investors cheered when Disney fired Chapek last November and brought back Bob Iger, who had previously led the company for 15 years. Yet Iger's recent decision to lay off 7,000 employees, or 3% of its global workforce, suggests the company still faces intense pressure as its streaming losses compress its margins.
That said, Iger is also the visionary leader who led Disney through its multibillion-dollar acquisitions of Pixar, Marvel, and Lucasfilm, and he laid down the foundations of its streaming ecosystem -- which now serves 235 million subscribers -- back in 2019. So if anyone can breathe fresh life into Disney's business, it's probably Iger.
Despite all those challenges, Disney's revenue and adjusted EPS still grew 23% and 54%, respectively, in fiscal 2022 (which ended last October) as its theme park and media businesses recovered in a post-pandemic market. Analysts expect revenue and adjusted EPS to rise 8% and 18%, respectively, this year.
Therefore, investors who can tune out the near-term noise and focus on the evergreen appeal of Disney's brands and properties will likely think its stock is reasonably valued at 22 times forward earnings.
2. Apple
Apple's stock closed at its record high of $180.68 on Jan. 3, 2022. It's only pulled back about 10% from those levels since many investors still regard Apple as a safe bear market buy as interest rates continue to rise. That sterling reputation is justified by its four core strengths: its brand appeal, the stickiness of its services (which locked in 935 million paid subscribers last quarter), its consistent earnings growth, and its $165 billion in cash, cash equivalents, and marketable securities.
Apple's revenue only rose 8% in fiscal 2022 (which ended last September), compared to its 33% growth in 2021. That slowdown was caused by tough comparisons to the launch of the iPhone 12, its first family of 5G smartphones, in 2021. Analysts expect that slowdown to persist in fiscal 2023 and that revenue and EPS will decline 1% and 2%, respectively. Those declines can be attributed to macroeconomic headwinds, supply chain constraints, and unfavorable currency exchange rates.
Faced with that near-term slowdown, Apple might look a bit expensive at 27 times forward earnings. However, that multiple also doesn't fully factor in the launch of its upcoming mixed reality headset or other new services. Apple also plans to keep repurchasing tens of billions of dollars in shares every year -- even if it faces a cyclical slowdown. That mix of stability and long-term growth still make Apple a compelling investment in this wobbly market.
3. NIO
NIO is one of the top producers of high-end electric sedans and SUVs in China. It currently sells four types of SUVs (the ES8, ES6, EC6, and ES7) and two types of sedans (the ET5 and ET7). Unlike many smaller American EV makers that went public by merging with special purpose acquisition companies (SPACs) and then failed to meet their own lofty production goals, NIO already produces a steady stream of EVs.
NIO's total deliveries rose 113% in 2020, 109% in 2021, and 34% to 122,486 vehicles in 2022. Its revenue rose 36% to 49.27 billion yuan ($7.14 billion) last year, but its adjusted net loss widened from 3.01 billion yuan to 12.14 billion yuan ($1.76 billion) as its margins were squeezed by COVID-19 disruptions, extreme weather conditions, and supply chain constraints. But most of those headwinds should dissipate as China finally rolls back its COVID-era restrictions.
So for 2023, analysts expect NIO's revenue to jump 74% to 85.88 billion yuan ($12.5 billion) as its net loss narrows to 11.69 billion yuan ($1.7 billion). At $10 a share, NIO trades at just 1.4 times this year's sales -- which makes it much cheaper than most of its industry peers. NIO's stock has already plummeted more than 80% from its all-time high of $62.84 per share on Feb. 9, 2021, so it might catch on fire again once a new bull market starts.
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Leo Sun has positions in Apple and Walt Disney. The Motley Fool has positions in and recommends Apple, Nio, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, 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. | According to Robinhood's own investor index, Walt Disney (NYSE: DIS), Apple (NASDAQ: AAPL), and NIO (NYSE: NIO) are among the most widely held stocks on its platform. The House of Mouse was once considered a great post-pandemic reopening play as consumers flocked back to the movie theaters and its theme parks, but lost its luster as investors focused on its streaming losses and CEO Bob Chapek's tendency to aggressively cut costs instead of foster growth. Yet Iger's recent decision to lay off 7,000 employees, or 3% of its global workforce, suggests the company still faces intense pressure as its streaming losses compress its margins. | According to Robinhood's own investor index, Walt Disney (NYSE: DIS), Apple (NASDAQ: AAPL), and NIO (NYSE: NIO) are among the most widely held stocks on its platform. Its revenue rose 36% to 49.27 billion yuan ($7.14 billion) last year, but its adjusted net loss widened from 3.01 billion yuan to 12.14 billion yuan ($1.76 billion) as its margins were squeezed by COVID-19 disruptions, extreme weather conditions, and supply chain constraints. So for 2023, analysts expect NIO's revenue to jump 74% to 85.88 billion yuan ($12.5 billion) as its net loss narrows to 11.69 billion yuan ($1.7 billion). | According to Robinhood's own investor index, Walt Disney (NYSE: DIS), Apple (NASDAQ: AAPL), and NIO (NYSE: NIO) are among the most widely held stocks on its platform. Its revenue rose 36% to 49.27 billion yuan ($7.14 billion) last year, but its adjusted net loss widened from 3.01 billion yuan to 12.14 billion yuan ($1.76 billion) as its margins were squeezed by COVID-19 disruptions, extreme weather conditions, and supply chain constraints. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. | According to Robinhood's own investor index, Walt Disney (NYSE: DIS), Apple (NASDAQ: AAPL), and NIO (NYSE: NIO) are among the most widely held stocks on its platform. NIO is one of the top producers of high-end electric sedans and SUVs in China. *Stock Advisor returns as of March 8, 2023 Leo Sun has positions in Apple and Walt Disney. |
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16550.0 | 2023-03-31 00:00:00 UTC | Top and Flop ETFs of March | AAPL | https://www.nasdaq.com/articles/top-and-flop-etfs-of-march | The month of March proved to be extremely volatile for the U.S. stock market. While the decline in yields and the Fed’s dovish comments ignited a rally early in the month, the failure of several banks and the fear of contagion across the globe led to a series of sell-offs. Amid the wild swings in the stock market, the technology sector emerged as the biggest winner while banks lost billions.
In fact, the tech-heavy Nasdaq-100 surged to a new bull market, driven by the flight to mega-cap cash-rich technology stocks amid the bank turbulence and decline in yields. Mega-caps like Apple AAPL, Microsoft MSFT and Amazon.com AMZN saw more than $600 billion in a combined rally this month. On the other hand, the 10 largest U.S. banks have lost about $243 billion in market capitalization since Mar 8, per a Forbes article (read: Nasdaq-100 Enters Bull Market: ETFs to Ride on).
The banking scare has raised the appeal for the yellow metal as a safe haven and as a store of value. The yellow metal jumped above the 2,000 mark after the sudden collapse of two U.S. regional banks earlier this month, which led to speculation that the Fed might pause rates hikes to avoid a wider fallout from the global banking system turmoil. Bitcoin, the largest digital currency by market value, also gained momentum and topped 26,000 for the first time since June 2022 in mid-March when market sentiments were positive.
Given this, we have highlighted three best and worst-performing ETFs of Q1:
Best ETFs
Sprott Junior Gold Miners ETF (SGDJ) – Up 22.7%
Sprott Junior Gold Miners ETF follows the Solactive Junior Gold Miners Custom Factors Index, which measures the performance of junior gold producers with the strongest revenue growth and junior exploration companies with the strongest stock price momentum. It holds 44 stocks in its basket, with Canada-based firms making up the largest share at 55.6%, followed by Australia (39.3%).
Sprott Junior Gold Miners ETF has amassed $106.3 million in its asset base and trades in a lower volume of around 40,000 shares a day. It charges 50 bps in annual fees from investors (read: 5 ETFs That Outperformed the Market Last Week).
Hashdex Bitcoin Futures ETF (DEFI) – Up 20.3%
Hashdex Bitcoin Futures ETF provides access to bitcoin through a cost-effective and regulated exchange-traded fund. It does not invest directly in bitcoin but provides price exposure to the crypto asset through bitcoin futures contracts. This gives investors the opportunity to capitalize on the cryptocurrency’s growth potential, its store of value characteristics, and the prospect of a decentralized future, without the complexities of self-custody.
Hashdex Bitcoin Futures ETF has accumulated $1.8 million in its asset base since its inception last September. It charges 92 bps in annual fees.
Breakwave Dry Bulk Shipping ETF (BDRY) – Up 18.4%
The dry bulk shipping market has gained momentum due to a rise in demand across all vessel segments. It is the only freight futures ETF exclusively focused on the dry bulk shipping market through a portfolio of near-dated freight futures contracts on dry bulk indices. Breakwave Dry Bulk Shipping ETF holds freight futures with a weighted average of approximately three months to expiration, using a mix of one-to-six-month freight futures based on the prevailing calendar schedule.
Breakwave Dry Bulk Shipping ETF has accumulated about $101.1 million in AUM and trades in a good volume of about 479,000 shares per day on average. It charges a higher annual fee of 3.50%.
Worst ETFs
iShares U.S. Regional Banks ETF (IAT) – Down 29.7%
iShares U.S. Regional Banks ETF offers exposure to 35 small and mid-cap regional bank stocks by tracking the Dow Jones U.S. Select Regional Banks Index. It is largely concentrated on the top three firms with a double-digit allocation each (read: ETF Winners & Losers from the Banking Crisis).
iShares U.S. Regional Banks ETF has amassed $739.7 million in its asset base while seeing a good volume of 647,000 shares a day. The product charges 39 bps in annual fees and has a Zacks ETF Rank #4 (Sell) with a High risk outlook.
United States Natural Gas Fund (UNG) – Down 25.5%
Natural gas prices fell to the lowest since September 2020 owing to mild weather and lower-than-previously expected heating demand. United States Natural Gas Fund provides direct exposure to the price of natural gas on a daily basis through futures contracts. If the near-month contract is within two weeks of expiration, the benchmark will be the next month's contract to expire. The natural gas contract is natural gas delivered at the Henry Hub, LA.
The United States Natural Gas Fund has an AUM of $973.1 million and trades in a volume of around 23 million shares per day. UNG has a 1.11% expense ratio.
Advocate Rising Rate Hedge ETF (RRH) – Down 21.6%
The decline in yields led to a plunge in RRH as it seeks to generate capital appreciation during periods of rising long-term interest rates, specifically interest rates with maturities of five years or longer. Advocate Rising Rate Hedge ETF is a multi-asset ETF and seeks to achieve its investment objective primarily by investing in a combination of U.S. Treasury securities; forwards, futures or options on various currencies; long and short positions on the short and long-end of the Treasury or swap yield curve via futures, swaps, forwards and other over-the-counter derivatives; long and short positions on equity indexes and investment companies, including ETFs, and commodity futures and options.
Advocate Rising Rate Hedge ETF has accumulated $29.2 million in its asset base and charges 85 bps in annual fees. It trades in an average daily volume of 35,000 shares.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
iShares U.S. Regional Banks ETF (IAT): ETF Research Reports
Sprott Junior Gold Miners ETF (SGDJ): ETF Research Reports
United States Natural Gas ETF (UNG): ETF Research Reports
Breakwave Dry Bulk Shipping ETF (BDRY): ETF Research Reports
Advocate Rising Rate Hedge ETF (RRH): ETF Research Reports
Hashdex Bitcoin Futures ETF (DEFI): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Mega-caps like Apple AAPL, Microsoft MSFT and Amazon.com AMZN saw more than $600 billion in a combined rally this month. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares U.S. While the decline in yields and the Fed’s dovish comments ignited a rally early in the month, the failure of several banks and the fear of contagion across the globe led to a series of sell-offs. | Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares U.S. Mega-caps like Apple AAPL, Microsoft MSFT and Amazon.com AMZN saw more than $600 billion in a combined rally this month. Advocate Rising Rate Hedge ETF has accumulated $29.2 million in its asset base and charges 85 bps in annual fees. | Mega-caps like Apple AAPL, Microsoft MSFT and Amazon.com AMZN saw more than $600 billion in a combined rally this month. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares U.S. Given this, we have highlighted three best and worst-performing ETFs of Q1: Best ETFs Sprott Junior Gold Miners ETF (SGDJ) – Up 22.7% | Mega-caps like Apple AAPL, Microsoft MSFT and Amazon.com AMZN saw more than $600 billion in a combined rally this month. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares U.S. Breakwave Dry Bulk Shipping ETF has accumulated about $101.1 million in AUM and trades in a good volume of about 479,000 shares per day on average. |
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16588.0 | 2023-03-30 00:00:00 UTC | Warren Buffett's 4 Foundational Criteria for Major Investments, Revealed | AAPL | https://www.nasdaq.com/articles/warren-buffetts-4-foundational-criteria-for-major-investments-revealed | For nearly 60 years, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been dazzling Wall Street with his investing prowess. Though he's not perfect -- no investor is, for that matter -- the Oracle of Omaha has overseen an aggregate gain of 3,787,464% in his company's Class A shares (BRK.A) through the end of 2022. For context, that's 153 times the return of the broad-based S&P 500 over the same time frame, including dividends.
Warren Buffett's long-term success has earned him quite the following from individual and professional investors eager to unlock his secrets to long-term outperformance. But little do these investors know that Buffett spilled the beans on what he looks for in major investments nearly a half-century ago.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
One of the greatest treasure troves the Oracle of Omaha has bestowed on investors is his annual letter to shareholders. While this letter often summarizes the state of Berkshire Hathaway's operations, it also provides a look into the investing thought process of one of Wall Street's greatest minds.
In Warren Buffett's 1976 letter to Berkshire Hathaway shareholders, he laid out the four foundational criteria he and his team look for in major equity holdings.
1. "Favorable long-term economic characteristics"
For as long as Warren Buffett has been holding the reins at Berkshire Hathaway, he's preached the importance of long-term investing and analyzing businesses' performance over many years. It should come as absolutely no surprise that Berkshire's top holdings are businesses that offer sustained long-term catalysts.
For example, tech stock Apple (NASDAQ: AAPL) is leading with its innovation on multiple fronts. In the U.S., the company's iPhone has accounted for roughly half of all smartphone market share since introducing 5G wireless capability in the fourth quarter of 2020. Meanwhile, Apple is rapidly transforming into a services-oriented company that could see subscription revenue become its primary cash flow and profit driver by the second half of the decade. The need for subscription services and physical products (smartphones and laptops) continues to grow.
Credit services giant American Express (NYSE: AXP) is another example of a major equity holding with "favorable long-term economic characteristics." In addition to AmEx's payment-processing revenue growing in lockstep with the U.S. and global economies over time, American Express acts as a lender and can generate interest income and annual fee revenue from its cardholders. Being able to double-dip and play both sides of the aisle allows American Express to take advantage of disproportionately long periods of economic expansion.
2. "Competent and honest management"
The second foundational criterion for major equity holdings laid out by the Oracle of Omaha in his 1976 letter to Berkshire shareholders is "competent and honest management." While Buffett loves investing in businesses that essentially run themselves, he's well aware of the damage a poor management team can do.
For over 30 years, banking giant Wells Fargo (NYSE: WFC) was a fixture in Berkshire Hathaway's portfolio. However, that changed after the bank admitted to opening roughly 3.5 million unauthorized accounts at the branch level between 2009 and 2016. Between CEO turnover, a hefty fine from U.S. regulators, and the damage to Wells Fargo's reputation, the Oracle of Omaha and his team jettisoned this once foundational holding during the first quarter of 2022.
On the other hand, Warren Buffett has spoken fondly of what Jeff Bezos did as CEO of Amazon (NASDAQ: AMZN). Bezos stepped down as CEO in July 2021 but remains involved as executive chairman. In a 2017 interview with Becky Quick on CNBC's Squawk Box, Buffett exclaimed:
I'm amazed at the managerial talent of Jeff Bezos. I've been a constant fan, really, almost since he started. And the more I see him, the more impressed I've been with what he's accomplished.
Even though it was one of Warren Buffett's investing lieutenants who added Amazon stock to Berkshire's investment portfolio, the Oracle of Omaha has long regretted not jumping into Amazon stock earlier. In short, Buffett is a big fan of leaders who inspire trust and confidence.
Image source: Getty Images.
3. A "purchase price attractive when measured against the yardstick of value to a private owner"
The third criterion for major investments should surprise absolutely no one: Warren Buffett wants a good deal on a fantastic company and has been willing to sit on his proverbial hands until those once-in-a-blue-moon deals materialize.
For instance, the Oracle of Omaha and his team have been steadily plowing capital into media stock Paramount Global (NASDAQ: PARA) over the past couple of quarters. Although ad weakness is temporarily weighing on Paramount's legacy TV media segment, the company is enjoying lightning-fast revenue and subscriber growth from its streaming services. In fact, Pluto TV is the United States' leading ad-supported free streaming service, meaning it's uniquely positioned to excel if a recession does take shape.
When the U.S. economy is, once again, firing on all cylinders, $2-plus in annual earnings per share is very likely for Paramount Global. At roughly $20/share, that means the stock trades for a reasonably cheap 10 times (or possibly less) future earnings with a greater-than-4% dividend yield.
Another brand-name stock that passes the valuation sniff test for Warren Buffett is oil stock Chevron (NYSE: CVX). Even factoring in a softening in oil and natural gas prices since 2023 began, Chevron trades at roughly 10 times Wall Street's forecast earnings in 2023 and 2024. Considering that the global energy supply chain is broken due to three years of pandemic-related underinvestment and Russia's invasion of Ukraine, Chevron is appropriately positioned to take advantage of elevated energy commodity prices.
4. "An industry with which we are familiar and whose long-term business characteristics we feel competent to judge"
The fourth foundational criterion Warren Buffett uses when assessing whether a company can become a major equity holding for Berkshire Hathaway is his and his team's comfort level and knowledge of a specific industry. In other words, the Oracle of Omaha has a rather narrow research focus and tends to invest in sectors and industries where he and his team have authority.
There's probably no industry that Warren Buffett is more confident putting his money to work in than banking. Banks are cyclical businesses able to take advantage of long-winded economic expansions by growing their loans and deposits (i.e., the bread-and-butter of banking).
Bank of America (NYSE: BAC) is Berkshire Hathaway's unquestioned favorite bank stock. Although he appreciates the cyclical aspect of banks, BofA's interest sensitivity must have Buffett overjoyed at the moment. No U.S. money-center bank is benefiting more from the Federal Reserve's rapidly hiking interest rates than Bank of America.
The Oracle of Omaha and his lieutenants are also quite competent in assessing consumer staples stocks. Beverage behemoth Coca-Cola (NYSE: KO) is Berkshire's longest-held stock -- 35 years and counting.
Coca-Cola operates in all but three countries worldwide and has a top-notch marketing team. Coca-Cola may not be the growth story it was in the 1980s, but it continues to deliver highly predictable cash flow and has raised its base annual dividend in each of the past 61 years. This is the familiarity Buffett seeks from his major investments.
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American Express, Wells Fargo, and Bank of America are advertising partners of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Sean Williams has positions in Amazon.com, Bank of America, and Wells Fargo. The Motley Fool has positions in and recommends Amazon.com, Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola, 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. | For example, tech stock Apple (NASDAQ: AAPL) is leading with its innovation on multiple fronts. For instance, the Oracle of Omaha and his team have been steadily plowing capital into media stock Paramount Global (NASDAQ: PARA) over the past couple of quarters. Although ad weakness is temporarily weighing on Paramount's legacy TV media segment, the company is enjoying lightning-fast revenue and subscriber growth from its streaming services. | For example, tech stock Apple (NASDAQ: AAPL) is leading with its innovation on multiple fronts. "Competent and honest management" The second foundational criterion for major equity holdings laid out by the Oracle of Omaha in his 1976 letter to Berkshire shareholders is "competent and honest management." Even though it was one of Warren Buffett's investing lieutenants who added Amazon stock to Berkshire's investment portfolio, the Oracle of Omaha has long regretted not jumping into Amazon stock earlier. | For example, tech stock Apple (NASDAQ: AAPL) is leading with its innovation on multiple fronts. Even though it was one of Warren Buffett's investing lieutenants who added Amazon stock to Berkshire's investment portfolio, the Oracle of Omaha has long regretted not jumping into Amazon stock earlier. "An industry with which we are familiar and whose long-term business characteristics we feel competent to judge" The fourth foundational criterion Warren Buffett uses when assessing whether a company can become a major equity holding for Berkshire Hathaway is his and his team's comfort level and knowledge of a specific industry. | For example, tech stock Apple (NASDAQ: AAPL) is leading with its innovation on multiple fronts. Berkshire Hathaway CEO Warren Buffett. See the 10 stocks *Stock Advisor returns as of March 8, 2023 American Express, Wells Fargo, and Bank of America are advertising partners of The Ascent, a Motley Fool company. |
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16593.0 | 2023-03-29 00:00:00 UTC | Thursday Predictions: 3 Hot Stocks for Tomorrow | AAPL | https://www.nasdaq.com/articles/thursday-predictions%3A-3-hot-stocks-for-tomorrow-2 | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The stock market continues to grind in a relatively tight trading range. There have been some stocks that put together a strong rally and others that continue to chug along sideways. The stocks that are rallying are inspiring traders to look at the hot stocks for tomorrow.
Tech continues to lead the way higher for equities. Will that continue into quarter-end on Friday?
All eyes seem to be on these tech names, as they have been the indisputable first-quarter leaders for 2023. The Nasdaq is up about 12% so far this year. The next best is the S&P 500, up “just” 3.4%. The Dow Jones Industrial Average and Russell 2000 are slightly negative year to date.
Let’s look at a few of the hot stocks for tomorrow — Thursday.
Hot Stocks for Tomorrow: RH (RH)
Click to Enlarge
Source: Chart courtesy of TrendSpider
On Wednesday evening, we’ll hear from RH (NYSE:RH) and get an idea of how the higher-end consumer is doing. Are they spending? Are they pulling back? RH CEO Gary Friedman generally gives pretty good color as to what the consumer has been up to and we’ll look to get a better picture of it once RH reports.
Worth mentioning is Lululemon Athletica (NASDAQ:LULU), which opened higher by 14.6% on Wednesday and has rallied in seven straight sessions. The big upside move comes after better-than-expected earnings.
Lululemon’s earnings would suggest that consumers are still spending on premium goods and services. That should bode well for RH, even though retail as a whole has not been that impressive this quarter.
The Chart: On the upside, bulls want to see RH regain the $255 to $256 area. That would put it over last week’s high and regain prior uptrend support (blue line). Above that and $275 will be in focus, as it marks the 200-day moving average. Lastly, the $293 to $300 zone is key. That’s the 50% retracement and the 50-day moving average.
On the downside, the recent lows near $235 are key, followed by the fourth-quarter low of $227. Below the latter and the 52-week low near $210 could be vulnerable.
Hot Stocks for Tomorrow: Apple (AAPL)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Apple (NASDAQ:AAPL) stock has been trading quite well lately, as shares are up 28% so far this year. For one quarter, that’s a pretty strong return.
Apple can play a massive role in the overall direction of the stock market. With a market capitalization of more than $2.5 trillion, it’s the largest U.S. stock. Apple has a 7.1% weighting in the S&P 500, a 3.2% weighting in the Dow Jones and a 12.3% weighting in the Nasdaq 100.
The stock recently broke out over the fourth-quarter high of $157.50 and is so far holding above that mark. However, if it rotates back below this level and more weakness ensues, than the Nasdaq — the market leader so far this year — could struggle to rally.
The Chart: On Tuesday, AAPL stock pulled back but held its 10-day moving average and closed above $157.50. If it can clear the $162 area, then the 78.6% retracement is in play. Above that and $170-plus is on the table.
On the downside, bulls don’t necessarily want to see a retest of the $155 to $156 area, but if it happens, they’ll want Apple to stay above it and the 21-day moving average. Below and we could see $150 or lower.
Is Apple being marked up into quarter-end? It may be, so keep an eye on this one both Thursday and Friday, as well as into early April.
Invesco QQQ Trust Series (QQQ)
Click to Enlarge
Source: Chart courtesy of TradingView
Used by many to trade the Nasdaq, the Invesco QQQ Trust Series (NASDAQ:QQQ) is one of the top ETFs in the U.S. by trading volume. In regards to Apple, it has a 12.1% weighting in the QQQ, slightly edging out the 11.9% weighting by Microsoft (NASDAQ:MSFT).
As you can see, these two stocks make up almost 25% of the QQQ ETF. More than 50% of the ETF is weighted to its top 10 holdings, which mostly includes FAANG, Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA).
The point is, the Nasdaq — and thus the QQQ ETF — is by far the top-performing U.S. index so far this year. While it has been trading well in 2023 and is up about 10% from the mid-March low, it’s still struggling to clear a few key measures on the chart.
The Chart: The QQQ “looked above” the February high at $313.68 and quickly pulled back. While buyers continue to gobble up the dips, bulls would really like to see the QQQ clear the February high (and soon, the March high).
On the plus side, the QQQ has started making a series of higher lows, has cleared downtrend resistance (blue line on the weekly chart) and is back above all of its daily and weekly moving averages.
On the list of negatives, it’s struggling with last month’s high, as well as the VWAP measure anchored back to the all-time high. In fact, this measure has stopped each rally in its tracks. A move over this measure could open the door back to $330 or higher.
On the date of publication, Bret Kenwell held a long position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post Thursday Predictions: 3 Hot Stocks for Tomorrow 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. | Click to Enlarge Source: Chart courtesy of TrendSpider Apple (NASDAQ:AAPL) stock has been trading quite well lately, as shares are up 28% so far this year. Hot Stocks for Tomorrow: Apple (AAPL) The Chart: On Tuesday, AAPL stock pulled back but held its 10-day moving average and closed above $157.50. | Click to Enlarge Source: Chart courtesy of TrendSpider Apple (NASDAQ:AAPL) stock has been trading quite well lately, as shares are up 28% so far this year. Hot Stocks for Tomorrow: Apple (AAPL) The Chart: On Tuesday, AAPL stock pulled back but held its 10-day moving average and closed above $157.50. | Hot Stocks for Tomorrow: Apple (AAPL) Click to Enlarge Source: Chart courtesy of TrendSpider Apple (NASDAQ:AAPL) stock has been trading quite well lately, as shares are up 28% so far this year. The Chart: On Tuesday, AAPL stock pulled back but held its 10-day moving average and closed above $157.50. | Hot Stocks for Tomorrow: Apple (AAPL) Click to Enlarge Source: Chart courtesy of TrendSpider Apple (NASDAQ:AAPL) stock has been trading quite well lately, as shares are up 28% so far this year. The Chart: On Tuesday, AAPL stock pulled back but held its 10-day moving average and closed above $157.50. |
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16608.0 | 2023-03-28 00:00:00 UTC | Technology Sector Update for 03/28/2023: BABA, AAPL, MSFT | AAPL | https://www.nasdaq.com/articles/technology-sector-update-for-03-28-2023%3A-baba-aapl-msft | Technology stocks were lower on Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) slipping 1.3% while the Philadelphia Semiconductor index was falling 1.6%.
In company news, Alibaba (BABA) shares were rising 15% after the e-commerce giant said it plans to split its business into six main units, with each able to raise outside capital and explore an initial public offering.
Apple (AAPL) was down 1.2% after it said that it has introduced Apple Pay Later in the US. The product allows users to split purchases into four payments, spread over six weeks with no interest and fees.
Microsoft (MSFT) is nearing a settlement to suspend antitrust complaints from European companies Aruba, OVHcloud and the Danish Cloud Community, Bloomberg News reported Tuesday, citing unnamed sources familiar with the matter. Microsoft shares were down 1.3%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) was down 1.2% after it said that it has introduced Apple Pay Later in the US. In company news, Alibaba (BABA) shares were rising 15% after the e-commerce giant said it plans to split its business into six main units, with each able to raise outside capital and explore an initial public offering. The product allows users to split purchases into four payments, spread over six weeks with no interest and fees. | Apple (AAPL) was down 1.2% after it said that it has introduced Apple Pay Later in the US. In company news, Alibaba (BABA) shares were rising 15% after the e-commerce giant said it plans to split its business into six main units, with each able to raise outside capital and explore an initial public offering. Microsoft (MSFT) is nearing a settlement to suspend antitrust complaints from European companies Aruba, OVHcloud and the Danish Cloud Community, Bloomberg News reported Tuesday, citing unnamed sources familiar with the matter. | Apple (AAPL) was down 1.2% after it said that it has introduced Apple Pay Later in the US. In company news, Alibaba (BABA) shares were rising 15% after the e-commerce giant said it plans to split its business into six main units, with each able to raise outside capital and explore an initial public offering. Microsoft (MSFT) is nearing a settlement to suspend antitrust complaints from European companies Aruba, OVHcloud and the Danish Cloud Community, Bloomberg News reported Tuesday, citing unnamed sources familiar with the matter. | Apple (AAPL) was down 1.2% after it said that it has introduced Apple Pay Later in the US. Technology stocks were lower on Tuesday afternoon, with the Technology Select Sector SPDR Fund (XLK) slipping 1.3% while the Philadelphia Semiconductor index was falling 1.6%. Microsoft shares were down 1.3%. |
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16636.0 | 2023-03-27 00:00:00 UTC | US STOCKS-Wall Street gains as banking crisis worries ease after SVB deal | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-street-gains-as-banking-crisis-worries-ease-after-svb-deal | By Amruta Khandekar and Ankika Biswas
March 27 (Reuters) - Wall Street's main indexes climbed on Monday as worries about the banking sector eased following a buyout deal for the deposits and loans of the failed Silicon Valley Bank.
First Citizens BancShares Inc FCNCA.Owill acquire parts of Silicon Valley Bank SIVB.O, which collapsed earlier this month in the largest bank failure since the 2008 financial crisis, unleashing fears about a liquidity crunch in the sector.
First Citizens' shares jumped 44.7%, while First Republic Bank FRC.N surged 27% on a report that U.S. authorities were considering more support for banks, which could give the embattled regional lender more time to shore up its balance sheet.
"The news about SVB being bought out may be calming some jitters that are going on in the banking sector," said Randy Frederick, managing director of trading and derivatives at Charles Schwab.
"Every bank that the FDIC steps in on that gets resolved in a manner where people don't lose money adds another element of confidence to the sector and hopefully then people calm down," Frederick added.
Regional banks Western Alliance Bancorp WAL.N and PacWest Bancorp PACW.O also climbed 4.8% and 6%, respectively.
Shares of major U.S. banks JPMorgan Chase & Co JPM.N, Citigroup C.N and Bank of America BAC.N advanced between 1.6% and 3.3%.
The KBW Regional Banking index .KRX rose 2.2% while the S&P 500 Banks index .SPXBK gained nearly 3%.
Financial stocks .SPSY, up about 2%, led sectoral gains, with 10 of the 11 S&P 500 sector indexes higher.
European bank shares also rebounded from declines last week when a spike in Deutsche Bank's DB.N credit default swaps, a type of insurance for bondholders, had exacerbated worries about the health of banks in the region.
U.S. Treasury yields rose on Monday as fears about the banking sector eased, weighing on major growth stocks like Meta Platforms META.O, Microsoft Corp MSFT.O and Apple Inc AAPL.O.
Traders have largely priced in that the Federal Reserve will pause rate hikes in May amid lingering worries about the banking sector stress potentially causing a steep economic downturn.
Despite the turbulence in financial markets, in the past two weeks the benchmark S&P 500 .SPX and the tech-heavy Nasdaq .IXIC logged their biggest two-week gain since early February and are on course for a quarterly gain.
Investors are also awaiting a host of economic data this week, including an inflation report that could give more clues about the Fed's monetary policy path.
At 9:33 a.m. ET, the Dow Jones Industrial Average .DJI was up 283.97 points, or 0.88%, at 32,521.50, the S&P 500 .SPX was up 27.07 points, or 0.68%, at 3,998.06, and the Nasdaq Composite .IXIC was up 34.75 points, or 0.29%, at 11,858.71.
Tesla Inc TSLA.O rose 3% with Barclays expecting the electric carmaker's first-quarter deliveries to beat estimates.
Pinterest Inc PINS.N gained 5% after UBS upgraded the Social media firm's stock to "buy" from "neutral".
Advancing issues outnumbered decliners by a 5.48-to-1 ratio on the NYSE and 2.25-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and no new low, while the Nasdaq recorded 17 new highs and 25 new lows.
(Reporting by Amruta Khandekar and Ankika Biswas; Editing by Dhanya Ann Thoppil, Savio D'Souza and Vinay Dwivedi)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | U.S. Treasury yields rose on Monday as fears about the banking sector eased, weighing on major growth stocks like Meta Platforms META.O, Microsoft Corp MSFT.O and Apple Inc AAPL.O. "The news about SVB being bought out may be calming some jitters that are going on in the banking sector," said Randy Frederick, managing director of trading and derivatives at Charles Schwab. Traders have largely priced in that the Federal Reserve will pause rate hikes in May amid lingering worries about the banking sector stress potentially causing a steep economic downturn. | U.S. Treasury yields rose on Monday as fears about the banking sector eased, weighing on major growth stocks like Meta Platforms META.O, Microsoft Corp MSFT.O and Apple Inc AAPL.O. By Amruta Khandekar and Ankika Biswas March 27 (Reuters) - Wall Street's main indexes climbed on Monday as worries about the banking sector eased following a buyout deal for the deposits and loans of the failed Silicon Valley Bank. The KBW Regional Banking index .KRX rose 2.2% while the S&P 500 Banks index .SPXBK gained nearly 3%. | U.S. Treasury yields rose on Monday as fears about the banking sector eased, weighing on major growth stocks like Meta Platforms META.O, Microsoft Corp MSFT.O and Apple Inc AAPL.O. By Amruta Khandekar and Ankika Biswas March 27 (Reuters) - Wall Street's main indexes climbed on Monday as worries about the banking sector eased following a buyout deal for the deposits and loans of the failed Silicon Valley Bank. The KBW Regional Banking index .KRX rose 2.2% while the S&P 500 Banks index .SPXBK gained nearly 3%. | U.S. Treasury yields rose on Monday as fears about the banking sector eased, weighing on major growth stocks like Meta Platforms META.O, Microsoft Corp MSFT.O and Apple Inc AAPL.O. By Amruta Khandekar and Ankika Biswas March 27 (Reuters) - Wall Street's main indexes climbed on Monday as worries about the banking sector eased following a buyout deal for the deposits and loans of the failed Silicon Valley Bank. The KBW Regional Banking index .KRX rose 2.2% while the S&P 500 Banks index .SPXBK gained nearly 3%. |
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16645.0 | 2023-03-26 00:00:00 UTC | Wall St Week Ahead-Strength in megacap stocks masks broader U.S. market woes | AAPL | https://www.nasdaq.com/articles/wall-st-week-ahead-strength-in-megacap-stocks-masks-broader-u.s.-market-woes-0 | By Lewis Krauskopf
NEW YORK, March 24 (Reuters) - Investors are relying on an old strategy to navigate the current tumult in asset prices: buying shares of the massive U.S. companies that led markets higher for years.
Shares of the top five companies by market value -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O and Nvidia NVDA.O -- have gained between 4.5% and 12% since March 8, when troubles at Silicon Valley Bank set off banking system worries. In that period, the S&P 500 has fallen 0.5%.
Megagaps are attracting bets because of strong balance sheets, robust profit margins and business models expected to hold up better if recession hits, investors said. A recent pullback in U.S. bond yields, whose ascent punished growth stocks last year, is also buoying their prices in 2023.
But their strength could have drawbacks. Megacaps' growing market capitalization means indexes such as the S&P 500 are increasingly driven by a smaller cluster of stocks. That could spur volatility in broader markets if circumstances change and investors make a quick exit from big tech and growth names.
"The view from investors is that technology companies are in a better place to get through an uncertain period of time,” said Keith Lerner, co-chief investment officer at Truist Advisory Services, which is overweight the tech sector. However, “when you have crowding you could see a sharp reversal out of nowhere because everyone is in the same area.”
Strength in megacaps also cloaks weakness elsewhere. Measures of market breadth have turned more negative, while the equal-weighted S&P 500 .SPXEW, a proxy for the average stock in the benchmark index, is down over 5% since March.
Investors are bracing for more banking sector volatility next week, after sharp declines in shares of European giants Deutsche Bank and UBS on Friday followed the collapse of Silicon Valley Bank and Signature Bank earlier this month. Upcoming U.S. data on consumer confidence and inflation could also sway markets.
Megacaps led the U.S. market in the decade following the financial crisis and spearheaded Wall Street's blistering rebound after the selloff in early 2020 fueled by the coronavirus pandemic. But they tumbled last year, as the Federal Reserve raised interest rates to fight 40-year high inflation.
Their rebound this year accelerated as concerns over the banking system spiked, and the combined weight of Apple and Microsoft in the S&P 500 recently topped 13%. That was the highest in over 30 years for any top two stocks in the index, according to Todd Sohn, technical strategist at Strategas.
The weight of the top five S&P 500 companies has rebounded to 21.7% from 18.8% for the top five stocks at the end of 2022.
As megacaps have rallied, some indicators of breadth, which technical analysts view as gauges of broad market health, have darkened recently.
The number of new 52-week lows on the New York Stock Exchange and Nasdaq was on pace to eclipse new highs for three straight weeks, a reversal after new highs had topped new lows almost every week to start 2023, according to Willie Delwiche, investment strategist at Hi Mount Research.
Further, the percentage of industry groups tracked by Delwiche above their 10-week moving averages has plummeted from 87% in early February to 7% in the latest week.
“After some hopeful signs earlier this year, it’s evidence that the pattern of weakness beneath the surface that we saw last year is re-emerging,” Delwiche said. “We need to see better participation if the indexes are going to be able to sustain the next leg higher.”
The performance of megacaps could suffer if banking worries ease and investors scoop up economically sensitive stocks that have struggled. The S&P 500 energy sector .SPNY is down 7.5% since March 8, while the industrials sector .SPLRCI is off 5%.
A rebound in U.S. bond yields could pressure tech and growth stocks. Earnings growth in the tech sector, meanwhile, is expected to trail the overall S&P 500 in 2023.
Nevertheless, some investors are bullish on megacap stocks.
Despite last year's market swoon, "our bias has been that we think we are still in ... an up trend," said Thomas Martin, senior portfolio manager at GLOBALT Investments, who is overweight many megacaps.
In turn, he said, that likely means "the big-cap growth stocks will be the ones who lead from here."
Big stocks beat the markethttps://tmsnrt.rs/3nhSCob
Megacap stocks' weight in S&P 500https://tmsnrt.rs/3JCvmZo
(Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David Gregorio)
(([email protected]; 646-223-6082; Reuters Messaging: [email protected], Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of the top five companies by market value -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O and Nvidia NVDA.O -- have gained between 4.5% and 12% since March 8, when troubles at Silicon Valley Bank set off banking system worries. By Lewis Krauskopf NEW YORK, March 24 (Reuters) - Investors are relying on an old strategy to navigate the current tumult in asset prices: buying shares of the massive U.S. companies that led markets higher for years. "The view from investors is that technology companies are in a better place to get through an uncertain period of time,” said Keith Lerner, co-chief investment officer at Truist Advisory Services, which is overweight the tech sector. | Shares of the top five companies by market value -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O and Nvidia NVDA.O -- have gained between 4.5% and 12% since March 8, when troubles at Silicon Valley Bank set off banking system worries. By Lewis Krauskopf NEW YORK, March 24 (Reuters) - Investors are relying on an old strategy to navigate the current tumult in asset prices: buying shares of the massive U.S. companies that led markets higher for years. Investors are bracing for more banking sector volatility next week, after sharp declines in shares of European giants Deutsche Bank and UBS on Friday followed the collapse of Silicon Valley Bank and Signature Bank earlier this month. | Shares of the top five companies by market value -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O and Nvidia NVDA.O -- have gained between 4.5% and 12% since March 8, when troubles at Silicon Valley Bank set off banking system worries. Investors are bracing for more banking sector volatility next week, after sharp declines in shares of European giants Deutsche Bank and UBS on Friday followed the collapse of Silicon Valley Bank and Signature Bank earlier this month. Big stocks beat the markethttps://tmsnrt.rs/3nhSCob Megacap stocks' weight in S&P 500https://tmsnrt.rs/3JCvmZo (Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David Gregorio) (([email protected]; 646-223-6082; Reuters Messaging: [email protected], Twitter: @LKrauskopf)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shares of the top five companies by market value -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O and Nvidia NVDA.O -- have gained between 4.5% and 12% since March 8, when troubles at Silicon Valley Bank set off banking system worries. A rebound in U.S. bond yields could pressure tech and growth stocks. In turn, he said, that likely means "the big-cap growth stocks will be the ones who lead from here." |
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16647.0 | 2023-03-25 00:00:00 UTC | 3 Warren Buffett Stocks That Are Crushing the S&P 500 This Year. Are They Still Smart Picks? | AAPL | https://www.nasdaq.com/articles/3-warren-buffett-stocks-that-are-crushing-the-sp-500-this-year.-are-they-still-smart-picks | Warren Buffett isn't beating the market so far in 2023. Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) stock performance lags well behind the S&P 500.
However, it's a much different story for some of Berkshire's holdings. Here are three Buffett stocks that are crushing the S&P 500 this year.
1. Floor & Decor Holdings
Floor & Decor Holdings (NYSE: FND) ranks as Buffett's biggest winner of the year, by far. Shares of the specialty retailer have skyrocketed close to 34%, while the S&P 500 has risen less than 5%.
Berkshire first initiated a position in Floor & Decor in 2021. It scooped up more shares last year. The giant conglomerate now owns 4.5% of the company.
The big year-to-date gains for Floor & Decor mark a stark contrast to the 46% decline in 2022. What happened? An improving overall stock market helped.
Floor & Decor also announced better-than-expected Q4 results last month. The company's net sales jumped 14.6% year over year to $1.05 billion. Floor & Decor also projected that 2023 net sales will rise nearly 10%, based on the midpoint of its guidance range.
2. Apple
Apple (NASDAQ: AAPL) is arguably the Oracle of Omaha's favorite stock after Berkshire Hathaway itself. The huge tech stock is the largest holding, by far, in Buffett's Berkshire portfolio. It's also one of Buffett's biggest winners this year, with a solid gain of over 23% after falling 27% in 2022.
Two months ago, Apple announced worse-than-expected fiscal 2023 Q1 revenue and earnings results. How has the stock beaten the market anyway? It boils down to anticipation about the future.
The company could have a new AR/VR (augmented reality/virtual reality) headset on the way. Apple is reportedly considering launching an iPhone subscription service. Several Wall Street analysts have raised their price targets on the stock in part because of these expectations.
3. Amazon
Amazon (NASDAQ: AMZN) stands out as another turnaround story for Buffett this year. In 2022, the stock plunged nearly 50%. So far in 2023, though, Amazon's shares are up close to 17%.
Buffett hasn't been buying Amazon stock lately. Berkshire's position in the e-commerce and cloud services leader amounts to only 0.3% of its total portfolio. That's still more than twice as large as the stake in Floor & Decor, though.
There have been several positive developments for Amazon over the last couple of months. For example, the company announced earlier this week that it's collaborating with Nvidia to build the most scalable artificial intelligence (AI) infrastructure on the market using Amazon Web Services (AWS) and Nvidia's chips.
Amazon has also taken steps to boost its profitability. It's expanding into new areas, as well, completing the acquisition of primary care provider One Medical in February.
Are they still smart picks?
While all three of these stocks are hot right now, momentum can quickly fizzle. Are they still smart picks? I think so.
Floor & Decor continues to expand. The retailer plans to open up to 35 warehouse stores this year.
Sure, higher interest rates have dampened the housing market somewhat. However, there's still a national housing shortage. That should provide a tailwind to Floor & Decor in the coming years.
I like Apple for the same reasons that Buffett does. It's a fantastic business with a strong moat. My hunch is that Buffett could be buying even more shares of Apple this quarter.
As for Amazon, I wouldn't be surprised if the stock doubles or more over the next seven years. Amazon certainly has room for growth in e-commerce. But I'm most excited about the prospects for its AWS cloud business. I look for an AI boom to significantly benefit AWS over the next decade and beyond.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Keith Speights has positions in Amazon.com, Apple, Berkshire Hathaway, and Nvidia. The Motley Fool has positions in and recommends Amazon.com, Apple, Berkshire Hathaway, and Nvidia. 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 Apple (NASDAQ: AAPL) is arguably the Oracle of Omaha's favorite stock after Berkshire Hathaway itself. Floor & Decor also projected that 2023 net sales will rise nearly 10%, based on the midpoint of its guidance range. Several Wall Street analysts have raised their price targets on the stock in part because of these expectations. | Apple Apple (NASDAQ: AAPL) is arguably the Oracle of Omaha's favorite stock after Berkshire Hathaway itself. Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) stock performance lags well behind the S&P 500. Floor & Decor Holdings Floor & Decor Holdings (NYSE: FND) ranks as Buffett's biggest winner of the year, by far. | Apple Apple (NASDAQ: AAPL) is arguably the Oracle of Omaha's favorite stock after Berkshire Hathaway itself. Floor & Decor Holdings Floor & Decor Holdings (NYSE: FND) ranks as Buffett's biggest winner of the year, by far. Buffett hasn't been buying Amazon stock lately. | Apple Apple (NASDAQ: AAPL) is arguably the Oracle of Omaha's favorite stock after Berkshire Hathaway itself. The company's net sales jumped 14.6% year over year to $1.05 billion. Buffett hasn't been buying Amazon stock lately. |
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16648.0 | 2023-03-24 00:00:00 UTC | Notable Friday Option Activity: ENPH, AAPL, COST | AAPL | https://www.nasdaq.com/articles/notable-friday-option-activity%3A-enph-aapl-cost | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Enphase Energy Inc. (Symbol: ENPH), where a total of 37,713 contracts have traded so far, representing approximately 3.8 million underlying shares. That amounts to about 102.2% of ENPH's average daily trading volume over the past month of 3.7 million shares. Especially high volume was seen for the $195 strike put option expiring March 24, 2023, with 2,408 contracts trading so far today, representing approximately 240,800 underlying shares of ENPH. Below is a chart showing ENPH's trailing twelve month trading history, with the $195 strike highlighted in orange:
Apple Inc (Symbol: AAPL) saw options trading volume of 655,112 contracts, representing approximately 65.5 million underlying shares or approximately 97.5% of AAPL's average daily trading volume over the past month, of 67.2 million shares. Especially high volume was seen for the $160 strike call option expiring March 24, 2023, with 74,927 contracts trading so far today, representing approximately 7.5 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $160 strike highlighted in orange:
And Costco Wholesale Corp (Symbol: COST) saw options trading volume of 19,640 contracts, representing approximately 2.0 million underlying shares or approximately 89% of COST's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $495 strike call option expiring March 24, 2023, with 1,539 contracts trading so far today, representing approximately 153,900 underlying shares of COST. Below is a chart showing COST's trailing twelve month trading history, with the $495 strike highlighted in orange:
For the various different available expirations for ENPH options, AAPL options, or COST options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
ONCS Insider Buying
MDP Stock Predictions
WTI Stock Predictions
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $160 strike call option expiring March 24, 2023, with 74,927 contracts trading so far today, representing approximately 7.5 million underlying shares of AAPL. Below is a chart showing ENPH's trailing twelve month trading history, with the $195 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 655,112 contracts, representing approximately 65.5 million underlying shares or approximately 97.5% of AAPL's average daily trading volume over the past month, of 67.2 million shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $160 strike highlighted in orange: And Costco Wholesale Corp (Symbol: COST) saw options trading volume of 19,640 contracts, representing approximately 2.0 million underlying shares or approximately 89% of COST's average daily trading volume over the past month, of 2.2 million shares. | Below is a chart showing ENPH's trailing twelve month trading history, with the $195 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 655,112 contracts, representing approximately 65.5 million underlying shares or approximately 97.5% of AAPL's average daily trading volume over the past month, of 67.2 million shares. Especially high volume was seen for the $160 strike call option expiring March 24, 2023, with 74,927 contracts trading so far today, representing approximately 7.5 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $160 strike highlighted in orange: And Costco Wholesale Corp (Symbol: COST) saw options trading volume of 19,640 contracts, representing approximately 2.0 million underlying shares or approximately 89% of COST's average daily trading volume over the past month, of 2.2 million shares. | Below is a chart showing ENPH's trailing twelve month trading history, with the $195 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 655,112 contracts, representing approximately 65.5 million underlying shares or approximately 97.5% of AAPL's average daily trading volume over the past month, of 67.2 million shares. Below is a chart showing AAPL's trailing twelve month trading history, with the $160 strike highlighted in orange: And Costco Wholesale Corp (Symbol: COST) saw options trading volume of 19,640 contracts, representing approximately 2.0 million underlying shares or approximately 89% of COST's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $160 strike call option expiring March 24, 2023, with 74,927 contracts trading so far today, representing approximately 7.5 million underlying shares of AAPL. | Below is a chart showing ENPH's trailing twelve month trading history, with the $195 strike highlighted in orange: Apple Inc (Symbol: AAPL) saw options trading volume of 655,112 contracts, representing approximately 65.5 million underlying shares or approximately 97.5% of AAPL's average daily trading volume over the past month, of 67.2 million shares. Especially high volume was seen for the $160 strike call option expiring March 24, 2023, with 74,927 contracts trading so far today, representing approximately 7.5 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $160 strike highlighted in orange: And Costco Wholesale Corp (Symbol: COST) saw options trading volume of 19,640 contracts, representing approximately 2.0 million underlying shares or approximately 89% of COST's average daily trading volume over the past month, of 2.2 million shares. |
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16672.0 | 2023-03-23 00:00:00 UTC | Amazon (AMZN) Expands Fire TV Offerings With Latest Move | AAPL | https://www.nasdaq.com/articles/amazon-amzn-expands-fire-tv-offerings-with-latest-move | Amazon.com AMZN has been continuously putting efforts into strengthening its Fire TV portfolio.
This is evident from the latest introduction of three sizes, 43”, 50” and 55”, in the Fire TV Omni QLED series.
Fire TV Omni QLED series comes with a 4K Quantum Dot Technology display. The series also supports Dolby Vision IQ and HDR10+ Adaptive.
The new Amazon-built TVs feature Fire TV Ambient Experience, which leverages built-in presence sensors to detect someone entering the room when not streaming. It also displays useful information with the help of Alexa, controls smart devices and plays audio. Also, users can control the Ambient Experience hands-free with Alexa.
In addition, Amazon has rolled out a Fire TV 2-Series, which offers both Fire TV and Alexa experience. The Fire TV 2-Series TVs are available in two sizes, 32” and 40”.
The Fire TV-2 series supports HDR 10, HLG, and Dolby Digital Audio. Further, it provides access to several movies and TV episodes from Prime Video, Netflix, Apple TV and Paramount+, to name a few.
Apart from these, the company expanded its Fire TV offerings globally. It launched Omni QLED Series, Fire TV 4-Series and Fire TV 2-Series in the U.K., Germany and Mexico.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Growth Prospects
Expanding Amazon-built TV offerings, along with a growing global footprint positions Amazon well to capitalize on the growth prospects in the booming smart TV market.
The company’s number of Fire TV devices sold has exceeded the mark of 200 million worldwide.
This is expected to drive its top-line growth in the near term.
The Zacks Consensus Estimate for first-quarter 2023 sales is pegged at $124.43 billion, indicating growth of 6.9% from the year-ago reported figure.
According to a report from Verified Market Research, the global smart TV market is anticipated to hit $359.14 billion by 2030, seeing a CAGR of 7.3% between 2022 and 2030.
A report from Grand View Research indicates that the market is likely to witness a CAGR of 11.4% between 2023 and 2030.
We believe that Amazon’s solid prospects in this promising market will help it win investors’ confidence in the days ahead.
Coming to the price performance, AMZN has lost 39.6% in the past year compared with the industry’s decline of 33%.
Competitive Scenario
Given the upbeat scenario, not only Amazon but also its peer, Apple AAPL, is leaving no stone unturned to expand its presence in this market.
The iPhone maker’s latest Apple TV 4K, which supports HDR10+ and Dolby vision and comes with a Siri remote, offers a superior quality viewing experience to users. Also, users can enjoy Dolby Atmos, Dolby Digital 7.1 or Dolby Digital 5.1 with Apple TV 4K.
It works seamlessly with other Apple devices and offers access to Apple Music, Apple TV+, Apple Arcade and Apple Fitness+.
Zacks Rank & Stocks to Consider
Amazon currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the retail-wholesale sector are American Eagle Outfitters AEO and Booking Holdings BKNG. Both companies carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Eagle Outfitters' shares have lost 26.8% in the past year. The long-term earnings growth rate for AEO is projected at 12.59%.
Booking Holdings' shares have gained 13.1% in the past year. The long-term earnings growth rate for BKNG is projected at 16.67%.
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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. | Competitive Scenario Given the upbeat scenario, not only Amazon but also its peer, Apple AAPL, is leaving no stone unturned to expand its presence in this market. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report To read this article on Zacks.com click here. The new Amazon-built TVs feature Fire TV Ambient Experience, which leverages built-in presence sensors to detect someone entering the room when not streaming. | Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report To read this article on Zacks.com click here. Competitive Scenario Given the upbeat scenario, not only Amazon but also its peer, Apple AAPL, is leaving no stone unturned to expand its presence in this market. It launched Omni QLED Series, Fire TV 4-Series and Fire TV 2-Series in the U.K., Germany and Mexico. | Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report To read this article on Zacks.com click here. Competitive Scenario Given the upbeat scenario, not only Amazon but also its peer, Apple AAPL, is leaving no stone unturned to expand its presence in this market. In addition, Amazon has rolled out a Fire TV 2-Series, which offers both Fire TV and Alexa experience. | Competitive Scenario Given the upbeat scenario, not only Amazon but also its peer, Apple AAPL, is leaving no stone unturned to expand its presence in this market. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Amazon has rolled out a Fire TV 2-Series, which offers both Fire TV and Alexa experience. |
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16690.0 | 2023-03-22 00:00:00 UTC | Netflix (NFLX) Casts Gabriel Leone as Lead of Senna Miniseries | AAPL | https://www.nasdaq.com/articles/netflix-nflx-casts-gabriel-leone-as-lead-of-senna-miniseries | Netflix NFLX recently announced that Brazilian actor Gabriel Leone would play the protagonist of three-time F1 champion Aryton Senna da Silva in its miniseries Senna. The series will be shot in English and Brazilian Portuguese and is expected to be available in 2024.
The six-episode series will explore Senna’s personality and relationships starting from his career debut and will culminate with the tragic death of Senna in an accident during the San Marino Grand Prix, Italy.
The series will be produced by Brazil’s Gullane for Netflix with complete support from Senna’s family. It will be a dual directorial with showrunner Vicente Amorim and director Juila Rezende.
Netflix’s Diverse Content Portfolio to Aid Prospect
Netflix shares have declined 20.2% in the past year, outperforming the Zacks Consumer & Discretionary sector, which plunged 21.7% over the same time frame. The streaming-giant has been suffering from stiff competition from the likes of Disney DIS, Amazon AMZN and Apple AAPL.
Netflix’s revenues increased 1.9% year over year in fourth-quarter 2022 thanks to strong content.
Moreover, the global paid subscriber base increased 4% year-over-year in the fourth quarter to 230.75 million.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
NFLX shares have also outperformed Disney and Amazon, but Apple turned out to be better. Shares of Disney, Amazon and Apple have declined 31.1%, 39% and 5.7% in the past year, respectively.
This outperformance can be explained by its diversified content portfolio and expanding game portfolio, which is attributable to heavy investments in the production and distribution of multilinguistic content.
Some other upcoming projects of Netflix are Murder Mystery 2, One Hundred Years of Solitude, Kill Boksoon.
What Awaits Netflix in 2023?
This Zacks Rank #2 (Buy) company expects first-quarter 2023 revenues to increase 3.9% year-over-year to around $8.17 billion. Earnings are pegged around $2.82 per share. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $8.18 billion, indicating 3.92% growth from the year-ago quarter’s reported figure.
The consensus mark for first-quarter 2023 earnings is pegged at $2.81 per share, unchanged in the past 30 days.
Netflix has expanded its focus on its mobile games portfolio, with 40 games to be released this year and 70 games in the development phase. It is also developing 16 games in its in-house game studios. It has also been to acquiring several game studios like Next Games, Boss Fight Entertainment and Night School Studio to expand its footprint in the industry.
Netflix has started making improvements in its newly launched ad delivery service, which will be better for consumers. More relevant advertising will bring more value to the advertisers and a better set of product offerings for advertisers to buy.
Throughout 2023, Netflix expects to see accelerating revenue growth through rolling out paid sharing model in a broad perspective and scaling of lower-priced ad supported plans.
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Amazon.com, Inc. (AMZN) : 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. | The streaming-giant has been suffering from stiff competition from the likes of Disney DIS, Amazon AMZN and Apple AAPL. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for first-quarter revenues is pegged at $8.18 billion, indicating 3.92% growth from the year-ago quarter’s reported figure. | Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. The streaming-giant has been suffering from stiff competition from the likes of Disney DIS, Amazon AMZN and Apple AAPL. Netflix’s Diverse Content Portfolio to Aid Prospect Netflix shares have declined 20.2% in the past year, outperforming the Zacks Consumer & Discretionary sector, which plunged 21.7% over the same time frame. | Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. The streaming-giant has been suffering from stiff competition from the likes of Disney DIS, Amazon AMZN and Apple AAPL. Netflix’s Diverse Content Portfolio to Aid Prospect Netflix shares have declined 20.2% in the past year, outperforming the Zacks Consumer & Discretionary sector, which plunged 21.7% over the same time frame. | Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. The streaming-giant has been suffering from stiff competition from the likes of Disney DIS, Amazon AMZN and Apple AAPL. This Zacks Rank #2 (Buy) company expects first-quarter 2023 revenues to increase 3.9% year-over-year to around $8.17 billion. |
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16714.0 | 2023-03-21 00:00:00 UTC | Battle of Dividend Stocks: Microsoft vs. Apple | AAPL | https://www.nasdaq.com/articles/battle-of-dividend-stocks%3A-microsoft-vs.-apple | Recently, investors have likely appreciated their dividend stocks more than usual. With the S&P 500 down more than 11% over the past year, many investors' portfolios have taken a hit. While it's never enjoyable to watch the prices of your stocks decline, there's one thing that probably didn't take a hit in investors' portfolios during this period: their income from high-quality dividend stocks. Not only do most top dividend-paying companies continue paying dividends through tough times, but many of them reward shareholders with increases to their payouts every year -- rain or shine.
Two tech stocks that have raised their dividend over the last year are Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL). For investors who are looking to add income to their portfolios, both of these stocks are great ideas for consideration. But which tech giant looks like a better investment today? Let's take a look at both to find out.
Dividend yield
Software company Microsoft, announced its most recent dividend increase last September. Microsoft's board of directors approved a quarterly dividend of $0.68, 10% higher than its previous payout. On an annual basis, this quarterly dividend amounts to $2.72, giving Microsoft a dividend yield of about 1% based on the stock's price at the time of this writing.
Notably, Microsoft's dividend yield easily beats out Apple's. The iPhone maker has a dividend yield of about 0.6%. But it's worth noting that Apple is due for a dividend increase soon. The company typically announces a dividend increase in April. It's last increase of 0.5% was announced on April 28, 20022. Another increase would improve Apple's dividend yield. Still, it's unlikely that the increase will be even close to enough to bring Apple's dividend yield close to Microsoft's.
When it comes to dividend yield, Microsoft is the clear winner.
Dividend growth potential
With Microsoft's recent dividend increase being greater than Apple's, it might be tempting to quickly conclude that Microsoft's dividend growth potential is better than Apple's. But Apple actually has the upper hand when it comes to dividend growth potential. This is because Apple is only paying out about 16% of its earnings in dividends, leaving massive room for dividend growth in the coming years. Microsoft's payout ratio of 28% is still exceptional, but it's notably well above Apple's.
Valuation
One final key factor to compare the two companies is valuation. As perhaps the most important factor to consider when comparing these two stocks, this final element should carry more weight in helping investors decide which stock to invest in.
Apple wins on this front, sealing its lead over Microsoft in a battle between the two dividend stocks. It has a price-to-earnings ratio of just under 27. This compares to Microsoft's price-to-earnings ratio of about 30.
While valuation is a critical element for investors to consider, investors should note that Apple's win over Microsoft on this front is only slight.
Overall, Apple looks like a better dividend stock than Microsoft. But investors who want a more meaningful income stream than that provided by Apple's paltry dividend yield may still want to go with Microsoft over Apple. At the end of the day, however, both stocks look like attractive investments for investors looking to add a growing stream of dividend income to their portfolios.
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Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple 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. | Two tech stocks that have raised their dividend over the last year are Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL). Not only do most top dividend-paying companies continue paying dividends through tough times, but many of them reward shareholders with increases to their payouts every year -- rain or shine. At the end of the day, however, both stocks look like attractive investments for investors looking to add a growing stream of dividend income to their portfolios. | Two tech stocks that have raised their dividend over the last year are Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL). Dividend yield Software company Microsoft, announced its most recent dividend increase last September. Still, it's unlikely that the increase will be even close to enough to bring Apple's dividend yield close to Microsoft's. | Two tech stocks that have raised their dividend over the last year are Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL). Dividend growth potential With Microsoft's recent dividend increase being greater than Apple's, it might be tempting to quickly conclude that Microsoft's dividend growth potential is better than Apple's. Overall, Apple looks like a better dividend stock than Microsoft. | Two tech stocks that have raised their dividend over the last year are Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL). Dividend yield Software company Microsoft, announced its most recent dividend increase last September. Another increase would improve Apple's dividend yield. |
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16718.0 | 2023-03-20 00:00:00 UTC | EU competition chief flags fresh probes into multinationals' tax deals | AAPL | https://www.nasdaq.com/articles/eu-competition-chief-flags-fresh-probes-into-multinationals-tax-deals | By Foo Yun Chee
BRUSSELS, March 20 (Reuters) - EU regulators are likely to open investigations into tax deals between EU countries and multinationals after reviewing their arrangements in the previous decade, the bloc's competition chief warned on Monday.
European Commission Vice-President Margrethe Vestager, who has ordered Apple AAPL.O to pay 13 billion euros in back taxes in Ireland and Amazon AMZN.O 250 million euros to Luxembourg, among a dozen cases, has said such tax deals amount to illegal tax breaks.
Despite her crackdown, Vestager said aggressive tax planning "is still with us".
"My services have conducted an in-depth inquiry into tax ruling practices in all member states for the period 2014-2018, and I expect this will lead to new investigations in certain countries," she told a conference in Copenhagen.
She did not name the countries or the companies.
Vestager has had a mixed record defending her decisions in court, with Europe's top court set to rule on her appeals in the coming months after a lower tribunal threw out her tax orders to Apple, Amazon and Starbucks.
She did, however, get the court's backing for her order to Engie to pay back taxes of 120 million euros to Luxembourg.
And Belgium, Ireland, Luxembourg and the Netherlands have all changed their tax practices in response to her tax crusade.
(Reporting by Foo Yun Chee; Editing by Kevin Liffey)
(([email protected]; +32 2 585 2866; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | European Commission Vice-President Margrethe Vestager, who has ordered Apple AAPL.O to pay 13 billion euros in back taxes in Ireland and Amazon AMZN.O 250 million euros to Luxembourg, among a dozen cases, has said such tax deals amount to illegal tax breaks. By Foo Yun Chee BRUSSELS, March 20 (Reuters) - EU regulators are likely to open investigations into tax deals between EU countries and multinationals after reviewing their arrangements in the previous decade, the bloc's competition chief warned on Monday. "My services have conducted an in-depth inquiry into tax ruling practices in all member states for the period 2014-2018, and I expect this will lead to new investigations in certain countries," she told a conference in Copenhagen. | European Commission Vice-President Margrethe Vestager, who has ordered Apple AAPL.O to pay 13 billion euros in back taxes in Ireland and Amazon AMZN.O 250 million euros to Luxembourg, among a dozen cases, has said such tax deals amount to illegal tax breaks. By Foo Yun Chee BRUSSELS, March 20 (Reuters) - EU regulators are likely to open investigations into tax deals between EU countries and multinationals after reviewing their arrangements in the previous decade, the bloc's competition chief warned on Monday. She did, however, get the court's backing for her order to Engie to pay back taxes of 120 million euros to Luxembourg. | European Commission Vice-President Margrethe Vestager, who has ordered Apple AAPL.O to pay 13 billion euros in back taxes in Ireland and Amazon AMZN.O 250 million euros to Luxembourg, among a dozen cases, has said such tax deals amount to illegal tax breaks. By Foo Yun Chee BRUSSELS, March 20 (Reuters) - EU regulators are likely to open investigations into tax deals between EU countries and multinationals after reviewing their arrangements in the previous decade, the bloc's competition chief warned on Monday. Vestager has had a mixed record defending her decisions in court, with Europe's top court set to rule on her appeals in the coming months after a lower tribunal threw out her tax orders to Apple, Amazon and Starbucks. | European Commission Vice-President Margrethe Vestager, who has ordered Apple AAPL.O to pay 13 billion euros in back taxes in Ireland and Amazon AMZN.O 250 million euros to Luxembourg, among a dozen cases, has said such tax deals amount to illegal tax breaks. By Foo Yun Chee BRUSSELS, March 20 (Reuters) - EU regulators are likely to open investigations into tax deals between EU countries and multinationals after reviewing their arrangements in the previous decade, the bloc's competition chief warned on Monday. Despite her crackdown, Vestager said aggressive tax planning "is still with us". |
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16723.0 | 2023-03-19 00:00:00 UTC | Buffett's Berkshire Hathaway speeds up stock buybacks | AAPL | https://www.nasdaq.com/articles/buffetts-berkshire-hathaway-speeds-up-stock-buybacks | By Jonathan Stempel
March 19 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N has stepped up its pace of stock buybacks, repurchasing more than $1.8 billion of its own stock this year.
In its proxy filing on Friday, Berkshire said that as of March 8 it had the equivalent of 1,455,698 Class A shares outstanding, down 4,035 from year end and 2,537 from Feb. 13, reflecting the repurchases.
Berkshire's repurchases have also included Class B shares, which normally cost about 1/1500th as much as Class A shares.
The Class A shares closed on Friday at $442,765, their low for the year, while the Class B shares closed at $293.51, near their low.
Berkshire's buybacks follow nearly $60 billion between 2020 and 2022.
They suggest that Buffett and fellow billionaire Vice Chairman Charlie Munger, who handle major capital allocation decisions, still view Berkshire's stock as undervalued, and repurchases as a prudent use of the company's cash.
Berkshire ended 2022 with $128.6 billion of cash and equivalents.
The Omaha, Nebraska-based conglomerate owns dozens of businesses including Geico car insurance and the BNSF railroad, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. Buffett owns 15.6% of Berkshire's stock.
In his Feb. 25 annual letter to shareholders, Buffett defended buybacks, calling someone who views all repurchases as harmful "an economic illiterate or a silver-tongued demagogue."
The comment appeared to criticize the White House and some Democrats who would prefer that companies use available cash to reinvest in their businesses.
Buybacks are subject to a 1% excise tax, which President Joe Biden has proposed quadrupling.
(Reporting by Jonathan Stempel in New York Editing by Matthew Lewis)
(([email protected]; +1 646 223 6317; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Omaha, Nebraska-based conglomerate owns dozens of businesses including Geico car insurance and the BNSF railroad, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. They suggest that Buffett and fellow billionaire Vice Chairman Charlie Munger, who handle major capital allocation decisions, still view Berkshire's stock as undervalued, and repurchases as a prudent use of the company's cash. In his Feb. 25 annual letter to shareholders, Buffett defended buybacks, calling someone who views all repurchases as harmful "an economic illiterate or a silver-tongued demagogue." | The Omaha, Nebraska-based conglomerate owns dozens of businesses including Geico car insurance and the BNSF railroad, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. By Jonathan Stempel March 19 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N has stepped up its pace of stock buybacks, repurchasing more than $1.8 billion of its own stock this year. In its proxy filing on Friday, Berkshire said that as of March 8 it had the equivalent of 1,455,698 Class A shares outstanding, down 4,035 from year end and 2,537 from Feb. 13, reflecting the repurchases. | The Omaha, Nebraska-based conglomerate owns dozens of businesses including Geico car insurance and the BNSF railroad, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. By Jonathan Stempel March 19 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N has stepped up its pace of stock buybacks, repurchasing more than $1.8 billion of its own stock this year. Berkshire's repurchases have also included Class B shares, which normally cost about 1/1500th as much as Class A shares. | The Omaha, Nebraska-based conglomerate owns dozens of businesses including Geico car insurance and the BNSF railroad, and stocks such as Apple Inc AAPL.O and Bank of America Corp BAC.N. By Jonathan Stempel March 19 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N has stepped up its pace of stock buybacks, repurchasing more than $1.8 billion of its own stock this year. In its proxy filing on Friday, Berkshire said that as of March 8 it had the equivalent of 1,455,698 Class A shares outstanding, down 4,035 from year end and 2,537 from Feb. 13, reflecting the repurchases. |
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16730.0 | 2023-03-18 00:00:00 UTC | 7 Best Stocks to Buy for a Sideways Market | AAPL | https://www.nasdaq.com/articles/7-best-stocks-to-buy-for-a-sideways-market | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
From initially going nowhere in late Feb. to suddenly dropping in March, investors still interested in staying in the market have inquired about the best stocks to buy under the challenging circumstances. Here, some of my colleagues have had fun with ChatGPT, asking the artificial intelligence platform all sorts of market-related questions.
Personally, I did something similar. But instead of AI, I decided to “ask” investment resource Gurufocus.com what it believes to be the most resilient enterprise. Fortunately, the platform features a stock filter called “Probability of Financial Distress (%).” Naturally, I entered t the lowest range possible: 0% to 5% risk of distress. If this platform is worth anything, it should capture at least some of the best stocks to buy now. Further, I entered no other filter aside from not including over-the-counter securities, trusts, and master limited partnerships (MLPs). Other than that, what you see is what you get. Below are the best stocks to buy for a sideways (or even declining) market.
AAPL Apple $155.00
MSFT Microsoft $279.43
GOOG GOOGL Alphabet $102.46
AMZN Amazon $98.95
BRK-B Berkshire Hathaway $293.51
NVDA Nvidia $257.25
TSLA Tesla $180.13
Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
Unless you’ve frozen yourself for later resuscitation, you’re familiar with consumer technology giant Apple (NASDAQ:AAPL). While the discretionary space typically isn’t the arena to look for the best stocks to buy during a downturn, Gurufocus.com disagrees. Based on its distress probability indicator, Apple represents the public enterprise least likely to fail. Financially, it’s difficult to argue with the platform. Sure, it’s not the discounted deal it once was. Presently, the market price of AAPL is at a forward multiple of 26.32. As a premium to earnings, Apple ranks worse than 84.26% of the competition.
That said, it delivers the goods operationally. For example, the company’s three-year revenue growth rate stands at 20%, above 85.09% of the competition. Also, its free cash flow (FCF) growth rate during the same period is 29.2%. Finally, Wall Street analysts support AAPL, pegging it a consensus moderate buy. As well, their average price target stands at $170.40, implying over 9% upside potential.
Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
An all-around solid enterprise, I’m not shocked at all to see Microsoft (NASDAQ:MSFT) rank so highly for best stocks to buy. Sure, it’s a tech company and the underlying sector doesn’t always offer the greatest magnitude of safety. However, Microsoft has become so ingrained in everything that we do professionally and personally that it’s a prudent choice.
Financially, it’s also difficult to argue with MSFT as one of the best stocks to buy during troubled circumstances. Sure, it’s not a great deal anymore on an objective basis. For example, the market prices MSFT at a forward multiple of 25.52, which ranks a bit better than average.
However, the company comes alive operationally. Notably, its three-year revenue growth rate stands at 17.4%, ranking above 71.36% of its peers. Its FCF growth rate during the same period comes in at 20.5%, beating out 62% of the industry. Also, Microsoft’s a profitability machine, commanding a net margin of 33%. Lastly, covering analysts peg MSFT as a consensus strong buy. Further, their average price target stands at $292.07, implying nearly 6% upside potential.
Alphabet (GOOG, GOOGL)
Source: IgorGolovniov / Shutterstock.com
Once a domineering presence in the charts, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) suffered some humbling recently. True, the Class C GOOG stock gained nearly 13% so far this year. However, in the past 365 days, GOOG gave up 25% of its equity value. Nevertheless, the underlying fundamentals of digitalized innovations may be too compelling to ignore. Further, the financials provide more than enough justification for Alphabet’s ranking among the best stocks to buy. Operationally, the tech giant features a three-year revenue growth rate of 22.9%, outpacing 74.35% of its peers. Further, its FCF growth rate during the same period pings at 27.2%, above 69.61% of the industry.
In addition, its operating and net margins come in at 26.46% and 21.2%. Both stats rate among the industry’s upper half. To boot, the company’s Altman Z-Score is 9.11, indicating very low bankruptcy risk. Turning to Wall Street, analysts peg GOOG as a unanimous strong buy. Moreover, their average price target stands at $123.78, implying over 22% upside potential.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
Synonymous with the mercurial growth in the e-commerce space, Amazon (NASDAQ:AMZN) is frequently ranked among the best stocks to buy. However, since the fallout that began in late 2021/early 2022, AMZN ate some humble pie. Yes, shares gained almost 17% of equity value since the Jan. opener. However, in the trailing year, they’re down more than 36%.
Nevertheless, Gurufocus.com has confidence that AMZN will turn out to be one of the best stocks to buy. It’s a system oddity because the platform also considers AMZN to be a possible value trap. Besides that, Amazon’s three-year revenue growth rate stands at 21.9%, boxing out 84.24% of the competition. Also, its book growth rate during the same period is 31.8%, above 87.54% of sector rivals. If there’s one major knock against AMZN at the moment, it’s the valuation. At a forward multiple of 60.11, it’s a pricey affair.
Still, covering analysts love AMZN, pegging it a consensus strong buy. Additionally, they anticipate shares hitting $136.86, implying nearly 37% upside potential.
Berkshire Hathaway (BRK.B)
Source: IgorGolovniov / Shutterstock.com
I believe it’s my InvestorPlace colleague Dana Blankenhorn that remarked something to the effect of if you’re facing unknown circumstances, it’s wise to place your bets across a wide canvas. That way, at least one of your wagers should rise higher. Fundamentally, that could be the selling point of Berkshire Hathaway (NYSE:BRK-B). The industrial conglomerate under legendary investor Warren Buffett bets on practically everything viable. Thus, it’s difficult to lose.
As one of the most popular investments, I’m not shocked in the slightest that Gurufocus.com identified it as a candidate for best stocks to buy. To be fair, Berkshire doesn’t feature the runaway financial metrics that some of the star enterprise competitors do. However, it does hold its own on certain metrics, such as a three-year book growth rate of 7.4% outpacing 62.58% of the competition. Primarily, I believe Berkshire got onto this list because of the proven wisdom and guidance of Warren Buffett. Few other investors can claim this man’s extraordinary breadth of knowledge.
As well, analysts peg BRK.B as a moderate buy. Their average price target stands at $353, implying nearly 17% upside potential.
Nvidia (NVDA)
Source: Michael Vi / Shutterstock.com
For the last two ideas for best stocks to buy, we have some controversial ideas, beginning with Nvidia (NASDAQ:NVDA). Fundamentally, I can appreciate Nvidia’s myriad strengths. Of course, most folks are familiar with the company’s graphics processing units (GPUs) for the gaming industry. Over the years, however, Nvidia also invested heavily in relevant segments such as AI and machine learning.
Still, it’s a controversial idea for the best stocks to buy because again, tech firms tend to be cyclical. Plus, it wouldn’t necessarily be one of my top choices for investors seeking stability. That said, Nvidia offers attractive financial metrics. Its three-year revenue growth rate pings at 34.5%, soaring above most of the competition. Also, its book growth rate during the same period came out to 21.6%, a robust figure. In addition, the enterprise features a profitable framework. For example, its net margin is 16.19%, ranked better than 67% of semiconductor companies.
Looking to the Street, covering analysts peg NVDA as a consensus moderate buy. However, their average price target is $257.88, implying only 1% upside potential.
Tesla (TSLA)
Source: Khairil Azhar Junos/Shutterstock.com
To be honest, the inclusion of Tesla (NASDAQ:TSLA) as one of the best stocks to buy at this juncture surprised me. While Tesla represents the king of electric vehicles – and may hold onto this status for years to come – the segment also aligns with the consumer economy. Unfortunately, consumers just aren’t feeling much motivation to buy pricey EVs, especially with the banking sector’s fallout.
Still, the operational stats may attract contrarian investors. For instance, Tesla’s three-year revenue growth rate stands at 36.4%, which is simply monstrous. Its FCF growth rate during the same period came out to 81.4%, also a ridiculously high figure. In terms of profitability, the company’s net margin is 15.45%, outpacing nearly 94% of its rivals. If that wasn’t enough, the EV maker also enjoys a stout balance sheet. Along with a cash-rich account, Tesla’s Altman Z-Score hits 11.38, indicating extremely low bankruptcy risk.
Finally, analysts peg TSLA as a consensus moderate buy. Their average price target stands at $212.89, implying nearly 16% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post 7 Best Stocks to Buy for a Sideways Market 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. | AAPL Apple $155.00 MSFT Microsoft $279.43 GOOG GOOGL Alphabet $102.46 AMZN Amazon $98.95 BRK-B Berkshire Hathaway $293.51 NVDA Nvidia $257.25 TSLA Tesla $180.13 Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Unless you’ve frozen yourself for later resuscitation, you’re familiar with consumer technology giant Apple (NASDAQ:AAPL). Presently, the market price of AAPL is at a forward multiple of 26.32. Finally, Wall Street analysts support AAPL, pegging it a consensus moderate buy. | AAPL Apple $155.00 MSFT Microsoft $279.43 GOOG GOOGL Alphabet $102.46 AMZN Amazon $98.95 BRK-B Berkshire Hathaway $293.51 NVDA Nvidia $257.25 TSLA Tesla $180.13 Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Unless you’ve frozen yourself for later resuscitation, you’re familiar with consumer technology giant Apple (NASDAQ:AAPL). Finally, Wall Street analysts support AAPL, pegging it a consensus moderate buy. Presently, the market price of AAPL is at a forward multiple of 26.32. | AAPL Apple $155.00 MSFT Microsoft $279.43 GOOG GOOGL Alphabet $102.46 AMZN Amazon $98.95 BRK-B Berkshire Hathaway $293.51 NVDA Nvidia $257.25 TSLA Tesla $180.13 Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Unless you’ve frozen yourself for later resuscitation, you’re familiar with consumer technology giant Apple (NASDAQ:AAPL). Presently, the market price of AAPL is at a forward multiple of 26.32. Finally, Wall Street analysts support AAPL, pegging it a consensus moderate buy. | AAPL Apple $155.00 MSFT Microsoft $279.43 GOOG GOOGL Alphabet $102.46 AMZN Amazon $98.95 BRK-B Berkshire Hathaway $293.51 NVDA Nvidia $257.25 TSLA Tesla $180.13 Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com Unless you’ve frozen yourself for later resuscitation, you’re familiar with consumer technology giant Apple (NASDAQ:AAPL). Presently, the market price of AAPL is at a forward multiple of 26.32. Finally, Wall Street analysts support AAPL, pegging it a consensus moderate buy. |
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16743.0 | 2023-03-17 00:00:00 UTC | SpaceX, Netflix, Boeing to join "biggest-ever" US business mission to Vietnam | AAPL | https://www.nasdaq.com/articles/spacex-netflix-boeing-to-join-biggest-ever-us-business-mission-to-vietnam | By Francesco Guarascio
HANOI, March 17 (Reuters) - SpaceX, Netflix and Boeing are among the companies joining the "biggest-ever" U.S. business mission to Vietnam next week to discuss investment and sales opportunities in the booming Southeast Asian nation, the organiser said.
More than 50 companies, including defence, pharmaceutical and tech firms, will participate in the mission organised by the US-ASEAN Business Council, an industry body, according to a list seen by Reuters.
The delegation is a sign of rising interest in the global manufacturing hub, which is benefiting from a shift away from China amid Sino-U.S. trade friction.
Vietnam, with a population of 100 million people, also has a rapidly-growing consumer market as its middle class expands.
"This is the biggest-ever mission in Vietnam," said Vu Tu Thanh, the US-ASEAN Business Council's representative in the country, noting that the body had been organising these events for three decades.
Streaming giant Netflix NFLX.O, which Reuters last month reported was planning to open an office in Vietnam, is among the companies joining the trip. Netflix did not respond to a request for comment.
Aerospace manufacturers Boeing BA.N, Lockheed Martin LMT.N and Bell TXT.N will hold meetings with state-owned Vietnamese defence procurement companies, Thanh told Reuters, adding that it was the first time in about a decade that security firms had decided to join the annual mission to Vietnam.
In December, the same companies held talks with Vietnamese government officials about the possible sale of helicopters and drones, as the country seeks new suppliers and the Ukraine conflict strains the capabilities of Russia, for decades Vietnam's main military partner.
"Helicopters is one of the things the companies hope to sell to the Vietnamese," Thanh said, although he cautioned that defence deals took time to be completed and no immediate breakthrough was expected.
Boeing said in a statement that its discussions with officials would focus on its growing partnership with Vietnam and ways to strengthen the country's aviation and defence capabilities.
Lockheed Martin and Bell did not respond to requests for comment.
The majority of the companies joining the business mission already have a business or manufacturing presence in Vietnam, including Apple AAPL.O, Coca-Cola KO.N and PepsiCo PEP.O, Thanh said, with some planning to expand it.
Some companies are also coming to get a better sense of the political situation after recent turmoil in the Communist-Party led country, including the resignation of the president in January, Thanh added.
Participants will have meetings with Vietnam's top political and regulatory leadership, including with Prime Minister Pham Minh Chinh.
Thanh said some companies were interested in Vietnam as a manufacturing hub and in providing services to increasingly wealthy consumers at a time when economic growth reached more than 8% last year.
Among them is SpaceX, which is looking to sell its satellite internet services to Vietnam and other countries in the region, Thanh said. SpaceX did not respond to a request for comment.
The mission will also include semiconductors companies, pharmaceutical giants Pfizer PFE.N and Johnson & Johnson PFE.N, medical device maker Abbott ABT.N, financial firms Visa V.N and Citibank C.N, internet and cloud companies Meta META.O and Amazon Web Services AMZN.O, the list showed.
(Reporting by Francesco Guarascio; Editing by Jamie Freed)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The majority of the companies joining the business mission already have a business or manufacturing presence in Vietnam, including Apple AAPL.O, Coca-Cola KO.N and PepsiCo PEP.O, Thanh said, with some planning to expand it. By Francesco Guarascio HANOI, March 17 (Reuters) - SpaceX, Netflix and Boeing are among the companies joining the "biggest-ever" U.S. business mission to Vietnam next week to discuss investment and sales opportunities in the booming Southeast Asian nation, the organiser said. Aerospace manufacturers Boeing BA.N, Lockheed Martin LMT.N and Bell TXT.N will hold meetings with state-owned Vietnamese defence procurement companies, Thanh told Reuters, adding that it was the first time in about a decade that security firms had decided to join the annual mission to Vietnam. | The majority of the companies joining the business mission already have a business or manufacturing presence in Vietnam, including Apple AAPL.O, Coca-Cola KO.N and PepsiCo PEP.O, Thanh said, with some planning to expand it. By Francesco Guarascio HANOI, March 17 (Reuters) - SpaceX, Netflix and Boeing are among the companies joining the "biggest-ever" U.S. business mission to Vietnam next week to discuss investment and sales opportunities in the booming Southeast Asian nation, the organiser said. More than 50 companies, including defence, pharmaceutical and tech firms, will participate in the mission organised by the US-ASEAN Business Council, an industry body, according to a list seen by Reuters. | The majority of the companies joining the business mission already have a business or manufacturing presence in Vietnam, including Apple AAPL.O, Coca-Cola KO.N and PepsiCo PEP.O, Thanh said, with some planning to expand it. By Francesco Guarascio HANOI, March 17 (Reuters) - SpaceX, Netflix and Boeing are among the companies joining the "biggest-ever" U.S. business mission to Vietnam next week to discuss investment and sales opportunities in the booming Southeast Asian nation, the organiser said. Aerospace manufacturers Boeing BA.N, Lockheed Martin LMT.N and Bell TXT.N will hold meetings with state-owned Vietnamese defence procurement companies, Thanh told Reuters, adding that it was the first time in about a decade that security firms had decided to join the annual mission to Vietnam. | The majority of the companies joining the business mission already have a business or manufacturing presence in Vietnam, including Apple AAPL.O, Coca-Cola KO.N and PepsiCo PEP.O, Thanh said, with some planning to expand it. By Francesco Guarascio HANOI, March 17 (Reuters) - SpaceX, Netflix and Boeing are among the companies joining the "biggest-ever" U.S. business mission to Vietnam next week to discuss investment and sales opportunities in the booming Southeast Asian nation, the organiser said. More than 50 companies, including defence, pharmaceutical and tech firms, will participate in the mission organised by the US-ASEAN Business Council, an industry body, according to a list seen by Reuters. |
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16753.0 | 2023-03-16 00:00:00 UTC | The 3 Stocks Warren Buffett Is Most Likely Buying Right Now in Addition to Occidental | AAPL | https://www.nasdaq.com/articles/the-3-stocks-warren-buffett-is-most-likely-buying-right-now-in-addition-to-occidental | Warren Buffett loaded up on shares of Occidental Petroleum (NYSE: OXY) throughout much of 2022. Unsurprisingly, he kept the buying spree going into this year. Buffett continued to buy shares of Occidental hand over fist earlier this month.
We don't know yet what other purchases Buffett has made so far in the first quarter of 2023. However, it's not hard to make what should be pretty good guesses. Here are the three stocks Buffett is most likely buying right now in addition to Occidental.
1. Berkshire Hathaway
If I had to bet on the stock Buffett is most likely buying this quarter, it would be his own Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). The legendary investor and his longtime business partner, Charlie Munger, can buy back Berkshire stock whenever they think it's valued attractively.
Buffett and Munger clearly thought that Berkshire's valuation looked attractive in all four quarters of 2022. The only months when they didn't repurchase shares last year were in April and May.
Berkshire's share price is currently cheaper than it was throughout most of the first quarter of 2022. It's roughly in line with the levels in November and December. If Buffett and Munger thought the stock was worth buying in the past, they almost certainly haven't changed their minds.
Buffett remains a big proponent of stock buybacks when they're done at the right price. He even took a swipe at President Biden, who has publicly criticized buybacks and wants to increase taxes on them, in his latest letter to Berkshire shareholders. Buffett wrote, "When you are told that all repurchases are harmful to shareholders or to the country, or particularly beneficial to CEOs, you are listening to either an economic illiterate or a silver-tongued demagogue (characters that are not mutually exclusive)."
2. Apple
Buffett only bought four stocks for Berkshire Hathaway in the fourth quarter of 2022. All of them were additions to existing positions, including more shares of Berkshire's biggest holding -- Apple (NASDAQ: AAPL).
Saying that Apple is the largest position in Berkshire's portfolio doesn't go far enough. The stock makes up 43.2% of Berkshire's total holdings, including shares owned by Berkshire subsidiary New England Asset Management.
But Apple's current price is now a little higher than it was throughout most of 2022 Q4. Why would Buffett still buy the stock? He would only do so if he believed the price is still a bargain. I think there's a reasonable argument that is his view.
Buffett also bought shares of Apple in the first quarter of last year. He told CNBC in May 2022 that he would have scooped up more of the stock had it not rebounded. Apple's current share price is near its lowest point in Q1 from a year ago.
3. Lousiana-Pacific
Louisiana-Pacific (NYSE: LPX) was another stock that Buffett bought in Q4 of 2022. He first initiated a position in the building-products stock in the third quarter of last year.
You might think that Louisiana-Pacific would be a horrible choice to buy right now. After all, higher interest rates have caused a slowdown in the housing market. The Federal Reserve has warned that more rate increases are on the way.
However, there are two important things to keep in mind about Buffett. First, he has a long-term mindset. Second, he focuses heavily on valuation. Both factors work to Louisiana-Pacific's advantage. Buffett knows there's still a need for more housing in the United States. He also recognizes that Louisiana-Pacific stock is dirt cheap with these great long-term prospects.
There's also the tiny detail that Louisiana-Pacific's share price is approaching the lower end of its trading range in the third and fourth quarters of 2022. If Buffett liked the stock enough then to buy it, he just might be buying again now or getting close to doing so.
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Keith Speights has positions in Apple and Berkshire Hathaway. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. 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. | All of them were additions to existing positions, including more shares of Berkshire's biggest holding -- Apple (NASDAQ: AAPL). The legendary investor and his longtime business partner, Charlie Munger, can buy back Berkshire stock whenever they think it's valued attractively. Buffett wrote, "When you are told that all repurchases are harmful to shareholders or to the country, or particularly beneficial to CEOs, you are listening to either an economic illiterate or a silver-tongued demagogue (characters that are not mutually exclusive)." | All of them were additions to existing positions, including more shares of Berkshire's biggest holding -- Apple (NASDAQ: AAPL). Apple Buffett only bought four stocks for Berkshire Hathaway in the fourth quarter of 2022. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. | All of them were additions to existing positions, including more shares of Berkshire's biggest holding -- Apple (NASDAQ: AAPL). Berkshire Hathaway If I had to bet on the stock Buffett is most likely buying this quarter, it would be his own Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). Apple Buffett only bought four stocks for Berkshire Hathaway in the fourth quarter of 2022. | All of them were additions to existing positions, including more shares of Berkshire's biggest holding -- Apple (NASDAQ: AAPL). Berkshire's share price is currently cheaper than it was throughout most of the first quarter of 2022. Why would Buffett still buy the stock? |
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16758.0 | 2023-03-15 00:00:00 UTC | Good Stocks To Buy Right Now? 3 Dow 30 Stocks To Know | AAPL | https://www.nasdaq.com/articles/good-stocks-to-buy-right-now-3-dow-30-stocks-to-know | The Dow Jones Industrial Average (DJIA), commonly referred to as the Dow, is one of the oldest and most widely followed stock market indices in the world. It is composed of 30 large-cap companies that are considered leaders in their respective industries and represent a cross-section of the American economy.
The Dow 30 Stocks are the 30 companies that make up the Dow Jones Industrial Average. These companies are some of the most recognizable and influential corporations in the world, including technology giants such as Apple (NASDAQ: AAPL) and Salesforce (NYSE: CRM), financial institutions like Goldman Sachs (NYSE: GS) and JPMorgan Chase (NYSE: JPM), and consumer goods companies such as Coca-Cola (NYSE: KO) and Procter & Gamble (NYSE: PG).
Investing in Dow 30 Stocks can be an attractive option for many investors. This is because they are well-established, financially sound companies with a long track record of success. However, it is important to remember that past performance is not a guarantee of future results. As well as investing in the stock market always carries some level of risk. It is essential to do your research and diversify your portfolio to minimize risk and maximize potential returns. If this has you keen on investing in dow 30 stocks, here are three stocks to check out in the stock market today.
Dow 30 Stocks To Watch Right Now
McDonald’s Corporation (NYSE: MCD)
The Home Depot Inc. (NYSE: HD)
Microsoft Corporation (NASDAQ: MSFT)
McDonald’s Corp (MCD Stock)
McDonald’s Corporation (MCD) is a globally renowned fast-food company, offering investors exposure to the ever-growing quick-service restaurant industry with its iconic menu items and vast franchise network.
At the end of January, Mcdonald’s reported a beat for its most recent 4th quarter 2022 financial results. In detail, the company announced Q4 2022 earnings of $2.59 per share versus analysts’ estimates of $2.46 per share. Additionally, MCD also notched in revenue of $5.9 billion, which came in over consensus estimates which were $5.6 billion for the quarter.
Moreover, year-to-date shares of MCD stock are trading modestly lower so far by 0.50%. While, during Wednesday morning’s trading session, McDonald’s stock is trading down by 1.07% on the day so far at $263.00 a share.
Source: TD Ameritrade TOS
[Read More] 3 Regional Bank Stocks To Watch Today
The Home Depot Inc. (HD Stock)
Next, The Home Depot Inc. (HD) is the largest home improvement retailer in the United States. The company provides exposure to the home construction, renovation, and do-it-yourself markets.
Just last month, Home Depot announced better-than-expected Q4 2022 financial results. Diving in, HD posted Q4 2022 earnings per share of $3.30, along with revenue of $35.8 billion. This is in comparison to Wall Street’s consensus estimates which were earnings of $3.26 per share, and revenue estimates of $36.0 billion. Though, the company did guide lower in its report. Specifically, Home Depot said it now estimates the fiscal year 2024 earnings of approximately $15.86 per share, with revenue estimates of $157.40 billion.
Continuing on, during Wednesday morning’s trading session, shares of HD stock opened flat on the day so far, trading at $285.61 per share.
Source: TD Ameritrade TOS
[Read More] 3 Cyclical Stocks To Watch For March 2023
Microsoft Corp. (MSFT Stock)
Finally, Microsoft Corporation (MSFT) is a dominant technology giant with a diverse range of products and services. This includes its flagship Windows operating system, Office productivity suite, and Azure cloud computing platform.
Earlier this week, Microsoft announced a new lead independent director and quarterly dividend. Diving in, the company appointed Sandra. E. Peterson, who is an operating Partner at Clayton, Dubilier & Rice, as its lead independent director. Also, Microsoft reported that its Board of Directors has declared a quarterly dividend of $0.68 per share. Specifically, the dividend is payable to shareholders on June 8, 2023, and to those on record on May 18, 2023.
Year-to-date, Microsoft stock has increased by 10.03% so far. While, on Wednesday morning, shares of MSFT stock are trading slightly higher off the open by 0.96% at $263.29 a share.
Source: TD Ameritrade TOS
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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. | These companies are some of the most recognizable and influential corporations in the world, including technology giants such as Apple (NASDAQ: AAPL) and Salesforce (NYSE: CRM), financial institutions like Goldman Sachs (NYSE: GS) and JPMorgan Chase (NYSE: JPM), and consumer goods companies such as Coca-Cola (NYSE: KO) and Procter & Gamble (NYSE: PG). It is composed of 30 large-cap companies that are considered leaders in their respective industries and represent a cross-section of the American economy. This includes its flagship Windows operating system, Office productivity suite, and Azure cloud computing platform. | These companies are some of the most recognizable and influential corporations in the world, including technology giants such as Apple (NASDAQ: AAPL) and Salesforce (NYSE: CRM), financial institutions like Goldman Sachs (NYSE: GS) and JPMorgan Chase (NYSE: JPM), and consumer goods companies such as Coca-Cola (NYSE: KO) and Procter & Gamble (NYSE: PG). Dow 30 Stocks To Watch Right Now McDonald’s Corporation (NYSE: MCD) The Home Depot Inc. (NYSE: HD) Microsoft Corporation (NASDAQ: MSFT) McDonald’s Corp (MCD Stock) McDonald’s Corporation (MCD) is a globally renowned fast-food company, offering investors exposure to the ever-growing quick-service restaurant industry with its iconic menu items and vast franchise network. Source: TD Ameritrade TOS [Read More] 3 Regional Bank Stocks To Watch Today The Home Depot Inc. (HD Stock) Next, The Home Depot Inc. (HD) is the largest home improvement retailer in the United States. | These companies are some of the most recognizable and influential corporations in the world, including technology giants such as Apple (NASDAQ: AAPL) and Salesforce (NYSE: CRM), financial institutions like Goldman Sachs (NYSE: GS) and JPMorgan Chase (NYSE: JPM), and consumer goods companies such as Coca-Cola (NYSE: KO) and Procter & Gamble (NYSE: PG). Dow 30 Stocks To Watch Right Now McDonald’s Corporation (NYSE: MCD) The Home Depot Inc. (NYSE: HD) Microsoft Corporation (NASDAQ: MSFT) McDonald’s Corp (MCD Stock) McDonald’s Corporation (MCD) is a globally renowned fast-food company, offering investors exposure to the ever-growing quick-service restaurant industry with its iconic menu items and vast franchise network. Source: TD Ameritrade TOS [Read More] 3 Regional Bank Stocks To Watch Today The Home Depot Inc. (HD Stock) Next, The Home Depot Inc. (HD) is the largest home improvement retailer in the United States. | These companies are some of the most recognizable and influential corporations in the world, including technology giants such as Apple (NASDAQ: AAPL) and Salesforce (NYSE: CRM), financial institutions like Goldman Sachs (NYSE: GS) and JPMorgan Chase (NYSE: JPM), and consumer goods companies such as Coca-Cola (NYSE: KO) and Procter & Gamble (NYSE: PG). Dow 30 Stocks To Watch Right Now McDonald’s Corporation (NYSE: MCD) The Home Depot Inc. (NYSE: HD) Microsoft Corporation (NASDAQ: MSFT) McDonald’s Corp (MCD Stock) McDonald’s Corporation (MCD) is a globally renowned fast-food company, offering investors exposure to the ever-growing quick-service restaurant industry with its iconic menu items and vast franchise network. Source: TD Ameritrade TOS [Read More] 3 Regional Bank Stocks To Watch Today The Home Depot Inc. (HD Stock) Next, The Home Depot Inc. (HD) is the largest home improvement retailer in the United States. |
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16780.0 | 2023-03-14 00:00:00 UTC | You Won't Believe How Much More Warren Buffett Has Made Than the Market Since 1965 | AAPL | https://www.nasdaq.com/articles/you-wont-believe-how-much-more-warren-buffett-has-made-than-the-market-since-1965 | Legendary investor Warren Buffett did it again in 2022. His holding company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), outperformed the market last year, gaining 4% versus the S&P 500's 19% drop.
Since Buffett took over in 1965, Berkshire Hathaway has beaten the market 39 out of 58 years. While that's about two-thirds of the time, it may not sound incredibly impressive at first; it's underperformed the market the other 19 years.
But that's not the whole story. Adding up all of the gains over time, Berkshire Hathaway has outperformed the market by an almost unbelievable amount.
What is Berkshire Hathaway anyway?
When investors talk about Warren Buffett's stocks, they're usually referring to the stocks in the Berkshire Hathaway portfolio. When you buy a stock, you're usually buying a piece of a business, and it's often a business you know and perhaps buy products from, such as Amazon or Coca-Cola.
Berkshire Hathaway is a holding company, which means it doesn't operate any business, but rather functions as an owner of other businesses. Investors give it funds, and it uses those funds to buy other companies, and, in Berkshire Hathaway's case, invest in the shares of other companies. It owns a number of companies with 100% or controlling ownership, such as GEICO and Duracell.
As for investing in stocks, it has large but not controlling stakes in about 45 companies, including DaVita, Kraft Heinz, and Liberty Media. The largest stock in its portfolio is Apple, which accounts for 42% of the stock portfolio.
In some ways, then, owning Berkshire Hathaway stock is similar to owning an index fund, since it gives shareholders exposure to many different stocks.
Berkshire Hathaway vs. the S&P 500
That leads us to how much owning Berkshire Hathaway since its inception would have done for your portfolio versus owning an index fund.
Cumulatively since 1965, including dividends, the S&P 500 has gained 24,708%. If all you had done 58 years ago was invest $10,000 in an S&P 500 index fund, you would have about $2.4 million today. Nearly 60 years is more time than most people have to build a retirement fund, but it gives you an idea of the power of compounding over time.
As incredible as that sounds, if you'd invested in Berkshire Hathaway in 1965, you would have much, much more money. Since that time, Berkshire Hathaway stock has gained 3,787,464%, or more than 153 times the S&P 500's gains over the same time period -- good enough to give you roughly $355 million based on a $10,000 investment. That translates to a compounded annual gain of 19.8%, or nearly double the S&P 500's 9.9% compound annual gain.
Is the party over?
These returns are outstanding. However, recent performance hasn't been as incredible. The further back you go, the wider the margins between the S&P 500 and Berkshire Hathaway. These results don't include dividend payouts.
^SPX data by YCharts
^SPX data by YCharts
Does that mean it's getting harder for Berkshire Hathaway to beat the market? Maybe. But consider how well it did in 2022.
The other way to look at it is that Buffett is an advocate of buying stock in businesses that will last. He's not into quick fixes and daily stock movements. Therefore, the advantage of owning Berkshire Hathaway stock may be more visible over time. Buffett has famously said that his favorite holding period is forever. However, people who know that quote may not know that there is a condition attached to it. Buffett said that's only the case when "when we own portions of outstanding businesses with outstanding managements."
Taking that lead, investors who are interested in learning how to invest like Buffett should consider buying stock in companies that operate outstanding businesses with great management and that hold for the long term.
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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. Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, and Berkshire Hathaway. The Motley Fool recommends Kraft Heinz and recommends the following options: long January 2024 $47.50 calls on Coca-Cola, 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. | As for investing in stocks, it has large but not controlling stakes in about 45 companies, including DaVita, Kraft Heinz, and Liberty Media. Taking that lead, investors who are interested in learning how to invest like Buffett should consider buying stock in companies that operate outstanding businesses with great management and that hold for the long term. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | His holding company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), outperformed the market last year, gaining 4% versus the S&P 500's 19% drop. Taking that lead, investors who are interested in learning how to invest like Buffett should consider buying stock in companies that operate outstanding businesses with great management and that hold for the long term. The Motley Fool recommends Kraft Heinz and recommends the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. | When investors talk about Warren Buffett's stocks, they're usually referring to the stocks in the Berkshire Hathaway portfolio. In some ways, then, owning Berkshire Hathaway stock is similar to owning an index fund, since it gives shareholders exposure to many different stocks. Since that time, Berkshire Hathaway stock has gained 3,787,464%, or more than 153 times the S&P 500's gains over the same time period -- good enough to give you roughly $355 million based on a $10,000 investment. | What is Berkshire Hathaway anyway? Investors give it funds, and it uses those funds to buy other companies, and, in Berkshire Hathaway's case, invest in the shares of other companies. The Motley Fool has positions in and recommends Amazon.com, Apple, and Berkshire Hathaway. |
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16789.0 | 2023-03-13 00:00:00 UTC | Court revives Apple, Google challenge to U.S. patent-review policy | AAPL | https://www.nasdaq.com/articles/court-revives-apple-google-challenge-to-u.s.-patent-review-policy | By Blake Brittain
March 13 (Reuters) - Apple Inc AAPL.O, Google LLC GOOGL.O, Cisco Systems Inc CSCO.Oand others can sue the U.S. Patent and Trademark Office to challenge a rule that reduced the number of patent-validity proceedings at a USPTO tribunal, a U.S. appeals court said Monday.
The U.S. Court of Appeals for the Federal Circuit reverseda California federal court's decision to dismiss the companies' lawsuit and said the agency may have failed to go through a required public notice-and-comment rulemaking process.
The PTO declined to comment on the ruling.
Google spokesperson José Castañeda said the company appreciates the decision and looks forward to making its case at the lower court. A Cisco spokesperson said the ruling reinforces that the PTO's patent review proceedings are "an important vehicle to preserve a balanced patent system, protect innovation, and assure patent quality in the United States."
Representatives for the other plaintiffs did not immediately respond to requests for comment.
The PTO's Patent Trial and Appeal Board is popular with big tech companies that are often targeted with patent lawsuits and that use the board's "inter partes review" process to contest patents they are accused of infringing. An internal rule that gave the agency's judges greater discretion to deny inter partes review petitions "dramatically reduced access" to the process, the companies told the appeals court.
Apple, Google, Cisco, Intel Corp INTC.O and Edwards Lifesciences Corp EW.Nsued the PTO in the California federal court in 2020 over the rule. They argued it undermined the role inter partes review plays in "protecting a strong patent system" and violated federal law.
Companies including Tesla, Honda, Comcast and Dell filed briefs at the Federal Circuit in support of the plaintiffs.
The California court dismissed the case in 2021, citing U.S. Supreme Court rulings that Patent Trial and Appeal Board decisions on whether to review inter partes review petitions cannot be appealed.
The Federal Circuit also rejected the companies' arguments that the rule was arbitrary and violated U.S. patent law. But the three-judge panel said the PTO may have been required to hold a period of public notice and comment before making the rule, and that it could be challenged based on that argument.
The case is Apple Inc v. Vidal, U.S. Court of Appeals for the Federal Circuit, No. 22-1249.
(Reporting by Blake Brittain in Washington)
(([email protected]; +1 (202) 938-5713;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Blake Brittain March 13 (Reuters) - Apple Inc AAPL.O, Google LLC GOOGL.O, Cisco Systems Inc CSCO.Oand others can sue the U.S. Patent and Trademark Office to challenge a rule that reduced the number of patent-validity proceedings at a USPTO tribunal, a U.S. appeals court said Monday. An internal rule that gave the agency's judges greater discretion to deny inter partes review petitions "dramatically reduced access" to the process, the companies told the appeals court. But the three-judge panel said the PTO may have been required to hold a period of public notice and comment before making the rule, and that it could be challenged based on that argument. | By Blake Brittain March 13 (Reuters) - Apple Inc AAPL.O, Google LLC GOOGL.O, Cisco Systems Inc CSCO.Oand others can sue the U.S. Patent and Trademark Office to challenge a rule that reduced the number of patent-validity proceedings at a USPTO tribunal, a U.S. appeals court said Monday. The U.S. Court of Appeals for the Federal Circuit reverseda California federal court's decision to dismiss the companies' lawsuit and said the agency may have failed to go through a required public notice-and-comment rulemaking process. They argued it undermined the role inter partes review plays in "protecting a strong patent system" and violated federal law. | By Blake Brittain March 13 (Reuters) - Apple Inc AAPL.O, Google LLC GOOGL.O, Cisco Systems Inc CSCO.Oand others can sue the U.S. Patent and Trademark Office to challenge a rule that reduced the number of patent-validity proceedings at a USPTO tribunal, a U.S. appeals court said Monday. The U.S. Court of Appeals for the Federal Circuit reverseda California federal court's decision to dismiss the companies' lawsuit and said the agency may have failed to go through a required public notice-and-comment rulemaking process. The PTO's Patent Trial and Appeal Board is popular with big tech companies that are often targeted with patent lawsuits and that use the board's "inter partes review" process to contest patents they are accused of infringing. | By Blake Brittain March 13 (Reuters) - Apple Inc AAPL.O, Google LLC GOOGL.O, Cisco Systems Inc CSCO.Oand others can sue the U.S. Patent and Trademark Office to challenge a rule that reduced the number of patent-validity proceedings at a USPTO tribunal, a U.S. appeals court said Monday. The U.S. Court of Appeals for the Federal Circuit reverseda California federal court's decision to dismiss the companies' lawsuit and said the agency may have failed to go through a required public notice-and-comment rulemaking process. The California court dismissed the case in 2021, citing U.S. Supreme Court rulings that Patent Trial and Appeal Board decisions on whether to review inter partes review petitions cannot be appealed. |
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16802.0 | 2023-03-12 00:00:00 UTC | Beat the Nasdaq? This Dividend Stock Has Actually Done It. | AAPL | https://www.nasdaq.com/articles/beat-the-nasdaq-this-dividend-stock-has-actually-done-it. | The Nasdaq has long been the stock market home of high-tech innovatots that have gone from unknown start-ups to household names.
This exchange is where game-changers like Apple, Amazon, Microsoft, and Tesla have consistently helped drive the Nasdaq Composite Index (NASDAQINDEX: ^IXIC) to new heights.
Over the past five years, in fact, the Nasdaq index has easily outpaced the two other major benchmarks, the Dow Jones Industrial Average (DJIANDEX: ^DJI) and the S&P 500 (SNPINDEX: ^GSPC), as you can see below:
^IXIC. Data source: YCharts.
Indeed, riding the excitement generated by all of those technology game-changers, the Nasdaq has done almost as well as, well, Mid-America Apartment Communities (NYSE: MAA), a stalwart in the comparatively boring business of providing people with a place to live.
Outperformance from one of America's largest landlords
Known as MAA, this real estate investment trust (REIT) is one of the U.S.'s largest landlords, with a collection of approximately 300 apartment communities and about 102,000 units primarily in Sunbelt growth markets such as Atlanta; Dallas, Houston, and Austin in Texas; Orlando and Tampa in Florida; Charlotte, North Carolina; Nashville, Tennessee; and Charleston, South Carolina.
This chart shows how well MAA has fared over the past five years against both the Nasdaq Composite Index, which tracks the movement of the 3,600 or so stocks trading on that exchange at any given time, and the Invesco QQQ Trust Total Return (NASDAQ: QQQ), which with a market cap of about $135 billion is one of the largest the exchange-traded funds that track Nasdaq's 100 largest stocks.
^IXIC data by YCharts.
Actively winning at passive income
That chart above shows total return terms, which account for both share price movement and reinvested dividends. And dividends are the key here for this value stock. MAA is a reliable producer of passive income, with a yield of about 3.7%, a good bit more than the 0.71% yielded by the Invesco QQQ Trust.
Here's another pair of charts. These illustrate the impact of dividends on total returns over the same five years for MAA and the Invesco QQQ ETF.
MAA. Data source: YCharts.
This is not an aberration. MAA has been public for 28 years and, during that time, has paid 116 straight quarterly cash dividends, including a payout of $1.40 per share in January that was a healthy 12% more than the previous quarter and marked 13 straight years of increases.
The Memphis, Tennessee-based company has also provided an annually compounded total shareholder return of 13.2% over the past 10 years, while a stellar A- credit rating from Standard & Poor's and a very modest 3.97 ratio of net debt-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) speak to the strength of its balance sheet.
MAA stock is currently selling for about 25% less than a year ago at this time, as this residential REIT has seen the same sell-off that higher interest rates and concerns over the ability to continue rapid rent increases (and income) have sparked among its peers.
That could make this a great time to pick up some shares of this longtime producer of strong shareholder returns with a record that can match that of many a glamorous growth stock, especially for buy-and-hold investors interested in such mundane things as sustainable retirement income.
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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. Marc Rapport has positions in Amazon.com and Mid-America Apartment Communities. The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, Mid-America Apartment Communities, and Tesla. 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. | The Memphis, Tennessee-based company has also provided an annually compounded total shareholder return of 13.2% over the past 10 years, while a stellar A- credit rating from Standard & Poor's and a very modest 3.97 ratio of net debt-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) speak to the strength of its balance sheet. MAA stock is currently selling for about 25% less than a year ago at this time, as this residential REIT has seen the same sell-off that higher interest rates and concerns over the ability to continue rapid rent increases (and income) have sparked among its peers. That could make this a great time to pick up some shares of this longtime producer of strong shareholder returns with a record that can match that of many a glamorous growth stock, especially for buy-and-hold investors interested in such mundane things as sustainable retirement income. | This chart shows how well MAA has fared over the past five years against both the Nasdaq Composite Index, which tracks the movement of the 3,600 or so stocks trading on that exchange at any given time, and the Invesco QQQ Trust Total Return (NASDAQ: QQQ), which with a market cap of about $135 billion is one of the largest the exchange-traded funds that track Nasdaq's 100 largest stocks. The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, Mid-America Apartment Communities, and Tesla. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | This chart shows how well MAA has fared over the past five years against both the Nasdaq Composite Index, which tracks the movement of the 3,600 or so stocks trading on that exchange at any given time, and the Invesco QQQ Trust Total Return (NASDAQ: QQQ), which with a market cap of about $135 billion is one of the largest the exchange-traded funds that track Nasdaq's 100 largest stocks. 10 stocks we like better than Mid-America Apartment Communities When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of March 8, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. | This chart shows how well MAA has fared over the past five years against both the Nasdaq Composite Index, which tracks the movement of the 3,600 or so stocks trading on that exchange at any given time, and the Invesco QQQ Trust Total Return (NASDAQ: QQQ), which with a market cap of about $135 billion is one of the largest the exchange-traded funds that track Nasdaq's 100 largest stocks. These illustrate the impact of dividends on total returns over the same five years for MAA and the Invesco QQQ ETF. The Motley Fool has positions in and recommends Amazon.com, Apple, Microsoft, Mid-America Apartment Communities, and Tesla. |
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16806.0 | 2023-03-11 00:00:00 UTC | The Good News From Salesforce | AAPL | https://www.nasdaq.com/articles/the-good-news-from-salesforce | In this podcast, Motley Fool senior analyst Tim Beyers discusses:
Shares of Salesforce popping 12% on better-than-expected fourth-quarter results.
How Salesforce has more focus but is still a business in transition.
The doubling of the company's share buyback program.
Motley Fool senior analyst Jason Moser and Motley Fool contributor Matt Frankel discuss the decline of the nice-to-have economy.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on March 02, 2023.
Chris Hill: Looks like another company got the message about how Wall Street likes businesses that actually make a profit. Motley Fool Money starts now. I'm Chris Hill. Joining me today, our man in Colorado, Motley Fool senior analyst, Tim Beyers. Thanks for being here.
Tim Beyers: Thanks for having me. Fully caffeinated, lots of earnings-related things to talk about.
Chris Hill: You know what else is caffeinated? Salesforce shares today up more than 12%, because Salesforce beat expectations across the board. The revenue numbers stands out to me as, and I'm not a shareholder. But I was particularly struck by the revenue number up 14% compared to a year ago. Obviously, Salesforce has been in the news lately, because of layoffs, because of the latest co-CEO to leave. It's been a pretty eventful few months for Salesforce. You're a shareholder, how are you feeling and what stood out in the report?
Tim Beyers: Well, I'm feeling better for a couple of reasons. First, the stock is up materially. That's great. Sometimes we call these things relief rallies, Chris. I think there's some real cognitive relief that, OK, great, the revenue was up materially. I think there is a bit of acknowledgment from management, particularly Marc Benioff, that yes, we have to be better at controlling cost, because they have activist investors breathing down their neck, and so you did see that. For example, in this particular quarter, granted, there's still a lot of cost in the Salesforce business. But I'll just give you a couple of things here. Cost of revenue for the quarter. $2.1 billion in the current quarter, year-ago quarter, $2 billion. This is not the spend freely Salesforce that we are used to seeing.
Total operating expenses for the quarter about $5.9 billion, that was up from $5.5 billion. Yes, material, but not big jumps the way we're used to seeing it. I think the thing that really stood out for me, Chris, this is for the quarter on a year-over-year basis, 984 million diluted shares outstanding versus 986 million, so down 2 million. Now there's a lot of accounting that can go into, I'm not saying that Salesforce is, oh boy, now they're getting some religion and they're buying back stock and actually reducing their share count. There could be some timing in effect here, they did buy back some shares. We have to wait to see how much they're actually going to get religion around that. But I would say, Chris, a little bit of encouraging signs in terms of expense management, as well as a better-than-expected revenue number. Why is the stock up? It does feel like, hey, maybe we're seeing a slightly more disciplined Salesforce. That would be a good thing.
Chris Hill: It would be a good thing. I want to come back to the discipline. But first, since you are talking about the share buybacks, part of the news here is Salesforce doubling their share buyback program that they announced last August, from 10 billion to 20 billion. I'm assuming you put that in the positive category.
Tim Beyers: It should be a positive, let's say that. Let's say it should be a positive because it depends on what Salesforce does with its historical practices around equity compensation for employees. They've historically been incredibly generous for employees that they've acquired through acquisitions and employees that they've hired organically. They tend to be very generous in this area. A $20 billion buyback could do a lot to create accretive value to shareholders, if it's not wiped out by a whole bunch of equity grants to employees. Now I think that buyback plan is large enough that it should be accretive to employees and particularly, if the current path that we're seeing continues.
For example, if just looking at the cash flow statement here. From the current quarter, the overall expense they got the credit on the cash flow statement for stock-based compensation expense, in the latest quarter was $809 million versus $763 million in the year-ago quarter. Again, it's not a huge increase in a lot of stock-based compensation expense. That may have to do as much with how the stock prices come down and so the value of that expense is a lot lower, so it just evens out and they still issued a lot of shares. Lot of things remain to be seen, but it does seem as though $20 billion is going to be put to use on behalf of shareholders. I think it's very easy to take a look at this. Chris, you and I are both sports fans, and you know how as sports fans we take one game and we say, wow, man, what an amazing performance and we project that out. I think the caution here is, let's not take this quarter and project it out and assume everything is amazing for Salesforce. We don't know that yet.
Chris Hill: We don't. You referenced the belief that we might be dealing with a more disciplined Salesforce, a more disciplined CEO, Marc Benioff. One of the bits of information we got that I think is an argument in favor of that is Benioff saying on the conference call that the company disbanded its committee on mergers and acquisitions. Again, I'm not a shareholder, but if I were, I would be happy about that. I look at Salesforce and think, no, you're big enough make the stuff that you've acquired, which on balance I think Salesforce has done a good job with that under Benioff's leadership. But it does seem like a time to, we've seen this from other companies this earning season, to really focus on basics, really stick to your knitting.
Tim Beyers: I fully agree with that. I do agree that it is good news, Chris. This is one of the areas you really going to want to watch, if you are a Salesforce shareholder, so just looking at the balance sheet. If you look at the balance sheet, there's a line on there called goodwill, and it stayed relatively stable year over year, about $48.6 billion presently versus roughly $48 billion last year. Really, no material changes there. But that is a lot of money, and goodwill is the excess that Salesforce has paid. It's like they've made a lot of acquisitions. When they paid a premium over and above the intrinsic value of the company they acquired, that premium goes on the balance sheet as goodwill.
It's like this is value we believe we're going to accrue as it becomes part of Salesforce, and so it's recorded as an asset on the balance sheet. A lot of that, Chris, is due to the acquisition of Slack. Getting their strategy right and actually getting real value, serious value out of that Slack acquisition, which I don't think we've really seen yet. That has to happen, because if it doesn't, there's going to be a quarter or a year, maybe in the next two years where they have to test this every year, and finally, they have to throw up their hands and admit like, "Yeah, you know what? We overpaid for this thing." Then it's a big write-off and the stock gets absolutely crushed.
They really do need to do this, so they avoid the specter of a big goodwill write-off on Slack. Last point on this, it is something they said they were always going to do. They wanted to make Slack, this portal into the rest of Salesforce. You go into Slack, and then you'd issue commands and start conversations, and open up a Salesforce app right from within Slack. You do all of this work together as a group and a Slack channel using a Salesforce product like Quip, or something like that. That is still the vision for this, so they do need to focus on that. Chris, there is absolutely no doubt.
Chris Hill: Let's close on the stock which is with the rise today, basically where it was three years ago at the start of the pandemic. Prior to that, you look at the chart of Salesforce and it's a pretty steady up and to the right. It's been a roller coaster since then.
Tim Beyers: Yeah.
Chris Hill: Do you look at the underlying business of Salesforce with everything we've just talked about, do you look at it and say, this is a stronger business than it was three years ago this time. With the stock basically being at the same point, is it a more challenged business? Is it weaker? Where, is the underlying business relative to the stock?
Tim Beyers: What a great question. I think it's in transition. I don't think you can say it's stronger and I don't think you can say it's weaker. I will say I think it's more focused and that is a very good sign. A more-focused sales force can do a lot of good for shareholders. It can improve. It's interface, it can improve, improve the integration, and its apps. This company has a lot of capital. If all of that capital that it generates is now focused internally on improving the business, on improving Slack, on making integrations tighter on improving the user experience. Look out, they can be very dangerous in their core markets. That is a good thing a focus Salesforce is potentially a dangerous Salesforce. But I don't think yet, you can say it's either stronger or weaker. I just think you can say it's in transition, Chris.
Chris Hill: Tim Beyers, always great talking to you. Thanks for being here.
Tim Beyers: Thanks, Chris.
Chris Hill: Just as more companies like Salesforce are sticking to the basics, so are consumers. Jason Moser and Matt Frankel share some thoughts on the decline of the nice-to-have economy.
Jason Moser: Hey Matt, it's great to catch up with you again. There was an article by Christopher Mims here several weeks back in the Wall Street Journal that talks about the decline of the nice-to-have economy and I thought it was a good and timely piece given where things stand today. The pandemic long in the rearview mirror, things are starting to normalize and at the same time with all of that, we're seeing challenges in the broader economy as it pertains to the consumer. I mean, at the end of December we saw full 64 percent of Americans were living paycheck to paycheck. Inflation of course, is still an issue and Matt, just frankly, the consumers running out of money. Let's, open up with this topic first and foremost. How would you describe the nice-to-have economy?
Matt Frankel: You hit the nail on the head with they're running out of money thing. The nice-to-have economy, it's always a thing. Everyone always wants to buy things they want, not just things they need and that's especially true in periods of economic prosperity. But the past couple of years, 2020 and 2021 in particular has been unusual in the sense that consumers had a ton of disposable income, more so than in a typical economic peak. Due to a combination of factors. There were all the stimulus measures that were taken. There was postponed payments like we're still not our student loans. I don't know about you, but that gives me an extra few hundred dollars a month of spending money on.
Jason Moser: Thankfully, Matt, I don't want to have any student loan bills coming up, but given your financial advisor said, we may need to chat after taping because I have one child going to college in the fall and another one going a year later. We're still trying to put all of those pieces together.
Matt Frankel: You figured the average student loan payments in the 300-400 dollar ballpark, that gives you the average person who with student loans like 4,000 dollar of extra money.
Jason Moser: It's a lot.
Matt Frankel: Then combine that with the lack of ability to go out and spend money on experiences and things like that. In 2020 and 2021, people had a lot of money to spend on stuff they didn't need. It's the best way to describe it.
Jason Moser: Yeah. You know what it made me think of? Immediately and your kids are a little bit younger than mine, so this may be even fresher in your mind. But as they're going through school at that young age and they're learning about wants versus needs. That's something that we deal with all throughout our lives. I mean, we're dealing with that want versus need and having to balance that. It's nice to be able to get those things that you want to make sure to take care of those needs first. It really does feel like this nice-to-have economy. That's a lot of those wants.
Matt Frankel: It is, and I mean, I'm just as guilty as anybody like, I couldn't spend money if I wanted to during '20 and 2021. What do we do? We put a pool in our backyard. I'm just as guilty as anybody. But it is really important to differentiate wants versus needs. The fact that needs have got to so much more expensive in 2022 and so far in 2023. The fact that our needs have got to so much more expensive, it's not just the people run out of money. But when needs get more expensive, it gets tougher to spend money on the wants.
Jason Moser: Yeah, it really feels like we saw an exceptional number of companies pop up over the last several years here that play into this trend. What are some of the, companies or the markets that really stand out to you as far as the, these nice-to-haves?
Matt Frankel: I already told you about my pool.
Jason Moser: Sounds like a need.
Matt Frankel: No, just another one in my house right now. Peloton. Peloton was a big one. They're definitely something that you don't need. There are exercise bikes that are about 1/10 of the price of a Peloton.
Jason Moser: Yeah.
Matt Frankel: But it's a great product. It was really nice-to-have and especially after our gym shutdown during COVID, we could really justify the cost. We got a Peloton in our house and we actually saved money of our monthly exercise expenses because we had our Peloton. So exercise equipment is one. There's a personal styling boxes. You remember Stitch Fix's a big example. My wife, she couldn't go shopping for her scrubs. She's an ICU Nurse. She couldn't really go shopping in person so companies like Figs became a big staple. I type mentioned it on the show one time, I was doing a show and three Figs packages arrived while I was on the show.
Jason Moser: Wow.
Matt Frankel: I would say even like companies that specialize in discretionary retail, like say, Best Buy, to a lesser degree because they do sell things that people need like a washer and a dryer and things like that. But they do sell a lot of things that people were buying in large quantities. One because they were working from home and two just because they had a lot of extra money?
Jason Moser: Yeah. Well, I mean, I'm glad you brought up Best Buy because it also you look at like a Best Buy and then you compare that a retail operation to something like a Target or a Walmart. Target and Walmart are certainly full of a lot of those wants. They're also businesses that are really capitalizing on the grocery market. We could argue that groceries certainly are a need. Now, it's interesting that this articles talking, speaking of groceries, I mean, it feels like one of the bigger victims here as of late, pertains to groceries. It's all of these meal-kit companies and we've seen so many of these pop-up. Like, I understand the convenience. Everybody needs to eat, that's the beauty of food from that perspective in investing in a well-run restaurant operation, for example. But it does seem like we saw a lot of the meal-kit type businesses really harping on that convenience factor. They're starting to suffer a little bit more now though, aren't they?
Matt Frankel: Yeah and it's not just the meal kits, it's the food delivery services as well like DoorDash and Uber Eats. People didn't realize as much with the pandemic shutdowns, how inflated prices get when restaurants list their stuff on DoorDash, to offset their own fees. That's something that is really starting to suffer too. The meal kits in my opinion, were just a bad business model from the start. We've used them before. The customer acquisition cost is through the roof. Peloton for all its faults, its churn is like one percent a month.
Meal kits it's like 20 times that and they have to offer things like half-price off your next three orders just to get people to stay and that's not sustainable. Those companies are losing money left and right, which was fine when money was free and investors were willing to speculate on companies like that, just growth at all costs, if you will. But now that, money is not free anymore, now that interest rates do exist, you're starting to see investors not tolerate money-losing businesses. There's not a way really for them to gain the customers that they need without losing money.
Jason Moser: Yeah and just a side note there. You said the word sustainable and that just made me think what these meal-kit companies as convenient as it may be for some, and I'll be clear, I do most of the cooking here at home and I never would consider subscribing in one of those meal-kits, partly because I just know how to cook and I like being able to do it as I like to do it. But the waste that comes along with those meal-kit companies, that's something that you have to keep in mind. We saw as the e-commerce has exploded over the last decade, one of the big concerns has always been packaging and the waste that comes along with that. How can we do this so it's a bit more sustainable and less impactful on the planet there. For all of the work, I'm sure that the meal-kit companies have done in that regard. When you're talking about sending food that requires a lot of different moving parts, keeping things cool, keeping things dry. There is just a tremendous amount of waste that really comes in with that.
Matt Frankel: For sure. I mean, one thing that meal kits do have going for them because we've used them a couple of times is they cut down on food waste, they send you the exact amount of groceries you need, which is really hard to do, especially for like two adults. It's tough to buy just enough produce for two adults without having a lot of waste. But you're right, the waste is a big issue, people are really starting to realize that now. People were willing to tolerate it a little bit more during the earlier days of the pandemic, it's still going on, but when there wasn't much of a choice. The waste is definitely something that's on consumers minds and getting them back into the grocery store.
Jason Moser: What strikes me about this trend is this doesn't really seem like a one-off. It seems like something that pops up when, like you were saying before, consumers have more money to spend, then when that money starts running out, we see these things start to pull back a little bit. It strikes me, this is something that's a bit more cyclical in nature.
Matt Frankel: Discretionary spending is very cyclical. We saw a surge in discretionary spending in the 2005-2007 time frame before the financial crisis happened, for example. But the 2020 and 2021 period had that unusual combination of factors, the stimulus, the postponed payments, the inability to go out and spend money, that really just made it an unusually high level of discretionary spending. Now combine that with the willingness of investors to pump all their money into these profitless businesses, essentially subsidizing people's discretionary spending. It was just like a perfect storm for the nice-to-have economy.
Jason Moser: Yeah. I tell you, one of these things that you see is you use these nice-to-haves as time goes on, as they become a little bit more. You find out ways to justify this being a must-have. Whether it's the convenience factor or whether it's something else entirely, you do start to find ways to justify these being need-to-have. I think it's also important for investors to remember too, just on that cyclical nature of consumer discretionary. These are the times probably where you want to start looking at the opportunities in consumer discretionary when we're seeing more pain, when we're seeing these valuations depress. Because it's not something that will last forever. It's certainly not to say that all of these will come back like meal plan companies, for example, I'm not sure that's necessarily the market that I'm looking to invest in. But perhaps fitness, perhaps specialty retail, something like that. These are probably the times to look at some of these nice-to-haves. It makes me wonder for you, what is a nice-to-have that has become a must for you over the past few years.
Matt Frankel: I would say my pool, but it's not like I could give that back even [laughs] if I wanted to.
Jason Moser: You're stuck with that one.
Matt Frankel: Something that I could get rid of, I would say my streaming services. At the start of the pandemic, I had Netflix, that was it. Now I have Netflix, I have HBO Max, I've Disney+. My kids would never let me get rid of Disney+ though. In the early days of the pandemic, it was nice to have, now I consider that an essential. For my wife, it would be the Peloton because it's that subscription model that sucks you in. Now that you've already spent thousands of dollars on your equipment, it seems silly to cancel your monthly subscription and just let it sit there.
Jason Moser: Yeah.
Matt Frankel: I guess that would be an essential too.
Jason Moser: Yeah. I mean, the health benefits too of exercise.
Matt Frankel: Absolutely. I like going to the gym, but then again, I work from home all day so I like getting out. She works in a hospital all day so she likes coming home and working out.
Jason Moser: Very understandable. Well, let's wrap this up real quick just with an idea here. In looking at these companies that start out as maybe nice-to-haves and then flip to that essential. Some good examples there. What are some characteristics or what does it take for a company to get from nice-to-have to essential? Is it something that relies on external forces, macroeconomic conditions, whatever it may be, or are there things that company itself can control to take that, to make that leap from being a nice-to-have to now listen, we are an essential part of your life and you need us?
Matt Frankel: Well, I would say one, a network effect. It wasn't that long ago when a smartphone was considered a nice-to-have luxury. You think of Apple. Everyone thinks that Apple is not an optional product. A recession hits, they don't sell any fewer iPhones, not significantly. The network effect of those products definitely helps. The same thing as with streaming. Streaming is a superior product and at a superior price point to the alternative, which is the obstacle that companies like Peloton need to overcome. Because yes, Peloton is absolutely a superior product to the $300 exercise bikes, but it's not at a similar price point. People have a really tough time viewing something as a must-have that costs 10 times as much as the alternative and that's why the streaming services, I think, are so successful because their cost is comparable to the alternatives and it's in many ways a better product.
Jason Moser: Well, we'll end it there. Matt, thanks so much for making the time for us today.
Matt Frankel: Of course. Always good to be here.
Chris Hill: As always, people on the program may have interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Chris Hill. Thanks for listening. We'll see you tomorrow.
Chris Hill has positions in Apple, Target, and Walt Disney. Jason Moser has positions in Apple and Walt Disney. Matthew Frankel, CFP® has positions in Walt Disney and has the following options: long February 2023 $112 calls on Walt Disney. Tim Beyers has positions in Apple, Netflix, Peloton Interactive, Salesforce, Stitch Fix, and Walt Disney. The Motley Fool has positions in and recommends Apple, Best Buy, DoorDash, Netflix, Peloton Interactive, Salesforce, Stitch Fix, Target, Uber Technologies, Walmart, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, 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. | There was an article by Christopher Mims here several weeks back in the Wall Street Journal that talks about the decline of the nice-to-have economy and I thought it was a good and timely piece given where things stand today. Jason Moser: Thankfully, Matt, I don't want to have any student loan bills coming up, but given your financial advisor said, we may need to chat after taping because I have one child going to college in the fall and another one going a year later. The Motley Fool has positions in and recommends Apple, Best Buy, DoorDash, Netflix, Peloton Interactive, Salesforce, Stitch Fix, Target, Uber Technologies, Walmart, and Walt Disney. | Motley Fool senior analyst Jason Moser and Motley Fool contributor Matt Frankel discuss the decline of the nice-to-have economy. The Motley Fool has positions in and recommends Apple, Best Buy, DoorDash, Netflix, Peloton Interactive, Salesforce, Stitch Fix, Target, Uber Technologies, Walmart, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, and short March 2023 $130 calls on Apple. | Motley Fool senior analyst Jason Moser and Motley Fool contributor Matt Frankel discuss the decline of the nice-to-have economy. Matt Frankel: I would say even like companies that specialize in discretionary retail, like say, Best Buy, to a lesser degree because they do sell things that people need like a washer and a dryer and things like that. It seems like something that pops up when, like you were saying before, consumers have more money to spend, then when that money starts running out, we see these things start to pull back a little bit. | That is a good thing a focus Salesforce is potentially a dangerous Salesforce. Matt Frankel: It is, and I mean, I'm just as guilty as anybody like, I couldn't spend money if I wanted to during '20 and 2021. I tell you, one of these things that you see is you use these nice-to-haves as time goes on, as they become a little bit more. |
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16811.0 | 2023-03-10 00:00:00 UTC | Apple shareholders reject proposals from conservative groups | AAPL | https://www.nasdaq.com/articles/apple-shareholders-reject-proposals-from-conservative-groups | March 10 (Reuters) - Apple Inc AAPL.O shareholders on Friday rejected two shareholder proposals put forth by conservative U.S. groups focused on scrutinizing the iPhone maker's inclusion and diversity policies and its ties to China.
Shareholders also approved the company's executive pay packages. The approval comes after the company reduced Chief Executive Officer Tim Cook's pay and made it more dependent on stock performance.
(Reporting by Stephen Nellis in San Francisco)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | March 10 (Reuters) - Apple Inc AAPL.O shareholders on Friday rejected two shareholder proposals put forth by conservative U.S. groups focused on scrutinizing the iPhone maker's inclusion and diversity policies and its ties to China. Shareholders also approved the company's executive pay packages. The approval comes after the company reduced Chief Executive Officer Tim Cook's pay and made it more dependent on stock performance. | March 10 (Reuters) - Apple Inc AAPL.O shareholders on Friday rejected two shareholder proposals put forth by conservative U.S. groups focused on scrutinizing the iPhone maker's inclusion and diversity policies and its ties to China. Shareholders also approved the company's executive pay packages. The approval comes after the company reduced Chief Executive Officer Tim Cook's pay and made it more dependent on stock performance. | March 10 (Reuters) - Apple Inc AAPL.O shareholders on Friday rejected two shareholder proposals put forth by conservative U.S. groups focused on scrutinizing the iPhone maker's inclusion and diversity policies and its ties to China. The approval comes after the company reduced Chief Executive Officer Tim Cook's pay and made it more dependent on stock performance. (Reporting by Stephen Nellis in San Francisco) (([email protected];)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | March 10 (Reuters) - Apple Inc AAPL.O shareholders on Friday rejected two shareholder proposals put forth by conservative U.S. groups focused on scrutinizing the iPhone maker's inclusion and diversity policies and its ties to China. Shareholders also approved the company's executive pay packages. The approval comes after the company reduced Chief Executive Officer Tim Cook's pay and made it more dependent on stock performance. |
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16823.0 | 2023-03-09 00:00:00 UTC | 3 Index Funds to Buy for March | AAPL | https://www.nasdaq.com/articles/3-index-funds-to-buy-for-march | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Index funds continue to be solid investments. With index funds, investors can gain broad exposure to the stock market or a particular economic sector or industry. This can help to lessen volatility and risk, and lead to big gains over the long-term. While markets around the world remain volatile, many of them have risen so far in 2023 as certain sectors recover after a bruising 2022. This presents an opportunity for investors to take positions in index funds now in order to ride the recovery as stocks gather steam and their momentum increases. Index funds’ fees can be expensive, so investors should become aware of funds with relatively low fees. Here are three index funds to buy in March.
QQQ Invesco QQQ $290
VOO Vanguard 500 Index Fund $356
VGK Vanguard FTSE Europe ETF $59
Invesco QQQ Trust Series 1 (QQQ)
Source: Shutterstock
The technology-laden Nasdaq index has been the best performer among the three best-known American stock indexes so far in 2023. After falling more than 30% in 2022, the Nasdaq has risen 7.4% so far this year as tech stocks stage a comeback. And what better way to ride the recovery of tech than by owning the Invesco QQQ Trust Series 1 (NASDAQ:QQQ) index fund? The “Q” or “Triple Q,” as the exchange-traded fund (ETF) is known, tracks the movements of the Nasdaq 100 index that is comprised of the 100 largest companies listed on the Nasdaq exchange.
In 2023, the QQQ ETF is up 10%, mirroring the gains of the Nasdaq 100. With this fund, investors get exposure to all the largest tech titans, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) and more.
The fund, which has been around since the height of the dotcom stock craze in 1999, charges a fee of 0.20%, which is about average for an ETF of its size. For investors who want broad exposure to best-in-class technology stocks, the QQQ is the gold standard.
Vanguard 500 Index Fund (VOO)
Source: PopTika / Shutterstock.com
Another index worth tracking is the S&P 500, which is made up of 503 of the largest publicly traded companies in the U.S. The S&P 500 has small, mid-sized and large-cap stocks. Consequently, it is widely viewed as the benchmark U.S. stock index and serves as a barometer for the health of all American stocks. After falling nearly 20% in 2022, the S&P 500 index has gained 1.4% since the start of January. The Vanguard 500 Index Fund (NYSE:VOO) is an ETF that tracks the S&P 500.
Many analysts recommend buying ETFs that track the S&P 500 index. In fact, VOO is one of the few ETFs that the Oracle of Omaha, Warren Buffett, holds in his own stock portfolio. There are other advantages to owning Vanguard funds, including its affordable fees which are among the lowest in the industry.
The VOO ETF currently charges an expense ratio of only 0.03%, which is about as low as investors are going to find. The fund’s major holdings include Amazon (NASDAQ:AMZN), Berkshire Hathaway (NYSE:BRK.A / NYSE:BRK.B) and UnitedHealth Group (NYSE:UNH).
Vanguard FTSE Europe ETF (VGK)
Source: Shutterstock
Foreign stocks, especially those in Europe, have also outperformed U.S. stocks this year. After badly trailing U.S. equities for more than a decade, European stocks are being bought by investors who are looking abroad for cheaper stocks as U.S. markets continue to gyrate. So far in 2023, the Vanguard FTSE Europe ETF (NYSE:VGK) is up 5%. The expense ratio of the VGK fund is a little higher than my other two picks at 0.11%, but its expense ratio is still lower than most comparable funds.
With the VGK fund, investors get exposure to leading European companies such as Nestle (SWX:NESN), Novartis (SWX:NOVN) and Shell (NYSE:SHEL). It’s an eclectic mix that covers most of the major publicly traded corporations throughout the continent. With European stocks’ performance badly lagging U.S. equities over the last ten years, VGK’s long-term performance doesn’t appear that impressive (VGK is up about 5% in the last decade). However, with European stocks back in vogue, now is the time for investors to ride its recovery.
On the date of publication, Joel Baglole held long positions in AAPL, MSFT and GOOGL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
The post 3 Index Funds to Buy for March 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 this fund, investors get exposure to all the largest tech titans, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) and more. On the date of publication, Joel Baglole held long positions in AAPL, MSFT and GOOGL. With index funds, investors can gain broad exposure to the stock market or a particular economic sector or industry. | With this fund, investors get exposure to all the largest tech titans, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) and more. On the date of publication, Joel Baglole held long positions in AAPL, MSFT and GOOGL. QQQ Invesco QQQ $290 VOO Vanguard 500 Index Fund $356 VGK Vanguard FTSE Europe ETF $59 Invesco QQQ Trust Series 1 (QQQ) Source: Shutterstock The technology-laden Nasdaq index has been the best performer among the three best-known American stock indexes so far in 2023. | With this fund, investors get exposure to all the largest tech titans, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) and more. On the date of publication, Joel Baglole held long positions in AAPL, MSFT and GOOGL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Index funds continue to be solid investments. | With this fund, investors get exposure to all the largest tech titans, including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) and more. On the date of publication, Joel Baglole held long positions in AAPL, MSFT and GOOGL. QQQ Invesco QQQ $290 VOO Vanguard 500 Index Fund $356 VGK Vanguard FTSE Europe ETF $59 Invesco QQQ Trust Series 1 (QQQ) Source: Shutterstock The technology-laden Nasdaq index has been the best performer among the three best-known American stock indexes so far in 2023. |
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16836.0 | 2023-03-08 00:00:00 UTC | Startup from ex-Apple team raises $100 million, works with OpenAI | AAPL | https://www.nasdaq.com/articles/startup-from-ex-apple-team-raises-%24100-million-works-with-openai | By Stephen Nellis
March 8 (Reuters) - Humane Inc, a startup founded by former Apple Inc AAPL.O employees, said on Wednesday it has raised $100 million and will release its first products this spring.
The company, founded in 2018 by Imran Chaudhri and Bethany Bongiorno, has now raised $241 million but has yet to disclose what it is building, saying only that it is a "software platform and consumer device built from the ground up for artificial intelligence."
A video posted by the company and patent filings suggest that a wearable device will project information onto the real world and allow users to manipulate that information with their hands.
Humane also said that it is collaborating with OpenAI, the creator of AI products such as ChatGPT that can generate human-like conversational text and Dall-E that can generate images, to integrate OpenAI's technology into Humane's device.
Sam Altman, OpenAI's founder and a previous Humane investor, participated in funding round on Wednesday, the company said.
Humane also said that Microsoft Corp MSFT.O, which has built a massive cloud computing infrastructure specifically for AI, took part in the funding round.
Humane said it will partner with Microsoft's cloud to bring Humane's software services platform to market.
"Our products are built on an integrated device and cloud platform that will allow us, and others, to create AI-driven experiences that feel natural, fun and needed," Patrick Gates, another Apple veteran who is Humane's chief technology officer, said in a statement.
Humane also said that it is working with Korean electronics giant LG Electronics Inc 066570.KS "on potential (research and development) projects for the next phase of Humane products" and with Volvo Car's VOLCARb.ST Tech Fund on "a potential future collaboration which would be the first example of Humane’s offering being applied to the automotive industry."
(Reporting by Stephen Nellis in San Francisco Editing by Marguerita Choy)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Stephen Nellis March 8 (Reuters) - Humane Inc, a startup founded by former Apple Inc AAPL.O employees, said on Wednesday it has raised $100 million and will release its first products this spring. The company, founded in 2018 by Imran Chaudhri and Bethany Bongiorno, has now raised $241 million but has yet to disclose what it is building, saying only that it is a "software platform and consumer device built from the ground up for artificial intelligence." "Our products are built on an integrated device and cloud platform that will allow us, and others, to create AI-driven experiences that feel natural, fun and needed," Patrick Gates, another Apple veteran who is Humane's chief technology officer, said in a statement. | By Stephen Nellis March 8 (Reuters) - Humane Inc, a startup founded by former Apple Inc AAPL.O employees, said on Wednesday it has raised $100 million and will release its first products this spring. Humane also said that it is collaborating with OpenAI, the creator of AI products such as ChatGPT that can generate human-like conversational text and Dall-E that can generate images, to integrate OpenAI's technology into Humane's device. Humane said it will partner with Microsoft's cloud to bring Humane's software services platform to market. | By Stephen Nellis March 8 (Reuters) - Humane Inc, a startup founded by former Apple Inc AAPL.O employees, said on Wednesday it has raised $100 million and will release its first products this spring. Humane also said that it is collaborating with OpenAI, the creator of AI products such as ChatGPT that can generate human-like conversational text and Dall-E that can generate images, to integrate OpenAI's technology into Humane's device. "Our products are built on an integrated device and cloud platform that will allow us, and others, to create AI-driven experiences that feel natural, fun and needed," Patrick Gates, another Apple veteran who is Humane's chief technology officer, said in a statement. | By Stephen Nellis March 8 (Reuters) - Humane Inc, a startup founded by former Apple Inc AAPL.O employees, said on Wednesday it has raised $100 million and will release its first products this spring. Sam Altman, OpenAI's founder and a previous Humane investor, participated in funding round on Wednesday, the company said. Humane also said that Microsoft Corp MSFT.O, which has built a massive cloud computing infrastructure specifically for AI, took part in the funding round. |
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16841.0 | 2023-03-07 00:00:00 UTC | Berkshire Hathaway resumes Occidental purchases, stake reaches 22.2% | AAPL | https://www.nasdaq.com/articles/berkshire-hathaway-resumes-occidental-purchases-stake-reaches-22.2 | By Jonathan Stempel
March 7 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N has resumed its purchases of Occidental Petroleum Corp OXY.N shares after a five-month hiatus, increasing its stake in the oil company to about 22.2%, a regulatory filing showed on Tuesday.
Berkshire paid about $355 million for 5.8 million Occidental shares between March 3 and March 7, according to the filing.
The purchases were the first Berkshire has disclosed since late September. It ended last year with a 21.4% stake.
In August, Berkshire won U.S. Federal Energy Regulatory Commission permission to buy up to 50% of Occidental's common stock.
Buffett's company now owns about 200.2 million Occidental shares worth $12.2 billion, based on Tuesday's closing price of $60.85.
Those shares would generate about $144 million of annual dividends, following a 38% increase that Occidental announced last month.
Berkshire also owns $10 billion of Occidental preferred stock that throws off $800 million of annual dividends, plus warrants to buy another $5 billion of common stock.
Occidental ended January with about 900 million shares outstanding.
Berkshire began buying large quantities of the Houston-based company's stock about one year ago.
After its stake surpassed 20%, Berkshire adopted the equity method of accounting for its holdings, and now reports its share of Occidental's results with its own.
Accounting rules normally require the equity method above the 20% threshold, reflecting an assumption that the holder might exert significant influence.
Berkshire ended 2022 with $128.6 billion of cash and equivalents. It plans to keep a $30 billion cushion.
Occidental's share price more than doubled in 2022, benefiting from higher oil prices after Russia invaded Ukraine.
Though fourth-quarter profit was lower than analysts expected, Occidental said it planned to raise capital spending this year and could repurchase up to $3 billion of stock.
Berkshire also owns dozens of companies including Geico car insurance, the BNSF railroad, consumer brands such as Dairy Queen and Fruit of the Loom, and other stocks including Apple Inc AAPL.O.
(Reporting by Jonathan Stempel in New York; Editing by Jamie Freed)
(([email protected]; +1 646 223 6317; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Berkshire also owns dozens of companies including Geico car insurance, the BNSF railroad, consumer brands such as Dairy Queen and Fruit of the Loom, and other stocks including Apple Inc AAPL.O. By Jonathan Stempel March 7 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N has resumed its purchases of Occidental Petroleum Corp OXY.N shares after a five-month hiatus, increasing its stake in the oil company to about 22.2%, a regulatory filing showed on Tuesday. After its stake surpassed 20%, Berkshire adopted the equity method of accounting for its holdings, and now reports its share of Occidental's results with its own. | Berkshire also owns dozens of companies including Geico car insurance, the BNSF railroad, consumer brands such as Dairy Queen and Fruit of the Loom, and other stocks including Apple Inc AAPL.O. By Jonathan Stempel March 7 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N has resumed its purchases of Occidental Petroleum Corp OXY.N shares after a five-month hiatus, increasing its stake in the oil company to about 22.2%, a regulatory filing showed on Tuesday. Buffett's company now owns about 200.2 million Occidental shares worth $12.2 billion, based on Tuesday's closing price of $60.85. | Berkshire also owns dozens of companies including Geico car insurance, the BNSF railroad, consumer brands such as Dairy Queen and Fruit of the Loom, and other stocks including Apple Inc AAPL.O. By Jonathan Stempel March 7 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N has resumed its purchases of Occidental Petroleum Corp OXY.N shares after a five-month hiatus, increasing its stake in the oil company to about 22.2%, a regulatory filing showed on Tuesday. Berkshire paid about $355 million for 5.8 million Occidental shares between March 3 and March 7, according to the filing. | Berkshire also owns dozens of companies including Geico car insurance, the BNSF railroad, consumer brands such as Dairy Queen and Fruit of the Loom, and other stocks including Apple Inc AAPL.O. It ended last year with a 21.4% stake. Buffett's company now owns about 200.2 million Occidental shares worth $12.2 billion, based on Tuesday's closing price of $60.85. |
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16859.0 | 2023-03-06 00:00:00 UTC | Time to Buy Apple, Alphabet, or Amazon Stock for More Upside? | AAPL | https://www.nasdaq.com/articles/time-to-buy-apple-alphabet-or-amazon-stock-for-more-upside | Many tech stocks have seen a strong start to 2023 with the Nasdaq up +11% year to date to top the broader S&P 500’s +5%.
This may have many investors wondering if big tech stocks like Apple (AAPL), Alphabet (GOOGL), and Amazon (AMZN) could have extended rallies. Let’s see if it’s time to buy these tech giants’ stocks for 2023 and beyond.
Performance
With high inflation still prevalent in the current economic environment investors will want to monitor the valuation and premium they are paying for tech stocks. This is especially true after extended rallies as a higher inflationary environment is challenging for most technology companies.
Image Source: Zacks Investment Research
Still, Apple stock is up +18% this year with Amazon up +11% and Alphabet up +8% to all outperform the S&P 500 with only shares of GOOGL trailing the Nasdaq. Over the last decade, Apple’s +897% has led these big tech peers, but Amazon’s +583% and Alphabet’s +357% have also outperformed the broader indexes.
Image Source: Zacks Investment Research
Valuation
Despite Alphabet stock trailing the Nasdaq’s performance so far this year its valuation is more intriguing than Apple and Amazon from a price-to-earnings perspective. Alphabet stock trades at $95 and 17.6X forward earnings which is nicely below its industry average of 25X and the S&P 500’s 18.1X. Shares of GOOGL also trade 44% below its decade-long high of 31.6X and at a 29% discount to the median of 24.7X.
Image Source: Zacks Investment Research
Pivoting to Apple, shares of AAPL trade at $155 per share at 23.9X forward earnings and above the benchmark’s 18.1X. However, Apple trades on par with its industry average and below its decade high of 33.6X but above the median of 14.9X.
Amazon stock also trades above the benchmark’s P/E valuation at 65.1X forward earnings and $93 per share. Amazon does trade well below its own decade-long high of 612X and at a 31% discount to the median of 93.2X but well above its industry average of 32.2X.
EPS Growth
Along with valuation, monitoring the growth of Apple, Alphabet, and Amazon will be important at their mature stages in corporate life.
To that note, Apple stock stands out sporting an “A” Zacks Style Scores grade for Growth and a higher EPS figure projected in its outlook than Alphabet and Amazon. Apple’s fiscal 2023 earnings are projected to dip -1% this year but rebound and jump 10% in FY24 at $6.68 per share. More impressive, fiscal 2024 would represent 125% EPS growth over the last five years with 2019 earnings at $2.97 per share.
Image Source: Zacks Investment Research
Alphabet and Amazon’s outlooks are attractive in their own right, with both carrying a “B” Style Scores grade for Growth. Alphabet’s earnings are expected to rise 12% in FY23 and leap another 21% in FY24 at $6.19 per share. Fiscal 2024 would represent 140% EPS growth over the last five years with 2019 earnings at $2.58 per share.
Image Source: Zacks Investment Research
Lastly, Amazon’s earnings are forecasted to climb 89% this year and jump another 59% in FY24 at $2.13 per share. Fiscal 2024 would represent 85% growth over the last five years with 2019 EPS at $1.15.
Image Source: Zacks Investment Research
Bottom Line
Apple, Alphabet, and Amazon stock all land a Zacks Rank #3 (Hold) at the moment. Despite broader economic concerns still very much prevalent and strenuous on technology companies, their stocks trade attractively relative to their past from a P/E valuation standpoint along with solid EPS growth expected.
For now, holding on to these unique and innovative tech giants at their current levels could be rewarding long-term especially when looking at their historical performances.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This may have many investors wondering if big tech stocks like Apple (AAPL), Alphabet (GOOGL), and Amazon (AMZN) could have extended rallies. Image Source: Zacks Investment Research Pivoting to Apple, shares of AAPL trade at $155 per share at 23.9X forward earnings and above the benchmark’s 18.1X. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. | This may have many investors wondering if big tech stocks like Apple (AAPL), Alphabet (GOOGL), and Amazon (AMZN) could have extended rallies. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Pivoting to Apple, shares of AAPL trade at $155 per share at 23.9X forward earnings and above the benchmark’s 18.1X. | Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. This may have many investors wondering if big tech stocks like Apple (AAPL), Alphabet (GOOGL), and Amazon (AMZN) could have extended rallies. Image Source: Zacks Investment Research Pivoting to Apple, shares of AAPL trade at $155 per share at 23.9X forward earnings and above the benchmark’s 18.1X. | Image Source: Zacks Investment Research Pivoting to Apple, shares of AAPL trade at $155 per share at 23.9X forward earnings and above the benchmark’s 18.1X. This may have many investors wondering if big tech stocks like Apple (AAPL), Alphabet (GOOGL), and Amazon (AMZN) could have extended rallies. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. |
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16889.0 | 2023-03-05 00:00:00 UTC | 3 Bargain Stocks You Can Buy Today and Hold Forever | AAPL | https://www.nasdaq.com/articles/3-bargain-stocks-you-can-buy-today-and-hold-forever-5 | Stock investors have been on a rollercoaster ride in recent years, with the COVID-19 pandemic sending shares in tech, streaming, and e-commerce companies skyrocketing in 2020 and 2021. Then, macroeconomic headwinds in 2022 triggered a sell-off that saw stocks in some of the world's most valuable companies plunge.
The market has gradually begun recovering since the start of 2023. However, plenty of opportunities exist to invest in solid growth stocks at bargain prices.
Here are three bargain stocks you can buy today and hold forever.
1. Apple
As the home of consistently in-demand products such as the iPhone, MacBook, AirPods, and more, Apple (NASDAQ: AAPL) has achieved the highest market cap in the world at $2.3 trillion. Its consistent focus on quality led it to gain almost unparalleled brand loyalty among consumers and become a steadily growing stock that investors can count on.
Apple's stock has risen about 240% over the last five years and around 880% over the last decade. However, one of the best reasons to invest in the company's stock is its performance amid economic challenges in 2022. While the Nasdaq Composite index fell 33% throughout last year, and companies such as Amazon and Netflix experienced stock declines of about 50%, Apple shares beat the market with its stock sliding a more moderate 27%.
In the first quarter of 2023, Apple reported dismal results, with revenue slipping 5.5% year over year and missing analysts' expectations by $4.5 billion. However, Apple shares have barely budged since the earnings release, mainly thanks to the company's reputation for consistent long-term growth.
Apple's forward price-to-earnings ratio (P/E) of 24.35 has decreased by 10.7% over the last year, presenting an exciting buying opportunity and making the company's stock a bargain.
2. Disney
This year officially marks 100 years of business for The Walt Disney Company (NYSE: DIS), solidifying it as one of history's most successful entertainment companies. The House of Mouse has dominating positions at the box office and in theme parks, with its streaming business likely to prove a lucrative venture over the long term.
While it's often helpful to look at a company's five-year stock growth to determine its future long-term performance, it's more complex with Disney. The start of the pandemic sent its stock plunging in 2020 as theater and park closures effectively depleted two crucial revenue streams. Launching its flagship streaming service Disney+ helped its stock recover in 2021 as home-bound people flocked to digital entertainment.
However, Disney was again hit by external factors in 2022, with economic declines dragging its stock down about 44% throughout the year. As a result, Disney shares declined 4% in the last five years and gained about 80% in the last decade.
Disney is the exception and not the rule in this case. Its previous five-year stock performance is not indicative of the next five years. The company has seen a solid return to park guests and theater audiences, with park revenue and operating income up more than 20% in the first quarter of 2023. Meanwhile, its release of Avatar: The Way of Water generated over $2.24 billion and surpassed 1998's Titanic to become the world's third-highest grossing film ever.
Disney's forward P/E of 23.72 decreased 38.88% over the last year, meaning its current stock price offers a lot of value, That makes it a screaming buy this month and one you can hold indefinitely.
3. Alphabet
Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) stock plunged 38.6% throughout 2022 as rises in inflation triggered reductions in ad spending and revenue declines in the company's highest-earning segments. However, economic challenges won't last forever, with Alphabet remaining an excellent stock to buy and hold over many years.
With powerful brands such as YouTube, Android, Fitbit, and the many services under Google, Alphabet is a mammoth in the tech industry that will likely continue to expand for decades. The company's stock increased about 71% over the last five years and more than 235% over the last decade. The growth came alongside annual revenue, which climbed 106.7% to $282.84 billion since 2019, while operating income soared 129.6% to $74.84 billion.
Alphabet's latest quarter disappointed, with revenue missing Wall Street forecasts by about $440 million. However, its Google Cloud segment continued to thrive, with revenue rising 32% year over year. Meanwhile, the company's announcement that it would put a stronger focus on developing artificial intelligence, a high-growth market, is promising for its long-term future.
As with other stocks on this list, Alphabet's forward P/E of 18 is too good to ignore. The figure fell 36% over the last 12 months, with investors seemingly over-cautious about the growth stock. As a result, now is an excellent time to invest in Alphabet shares with plans to hold forever.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Netflix, and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney, long March 2023 $120 calls on Apple, short January 2024 $155 calls on Walt Disney, 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 As the home of consistently in-demand products such as the iPhone, MacBook, AirPods, and more, Apple (NASDAQ: AAPL) has achieved the highest market cap in the world at $2.3 trillion. Apple's forward price-to-earnings ratio (P/E) of 24.35 has decreased by 10.7% over the last year, presenting an exciting buying opportunity and making the company's stock a bargain. The House of Mouse has dominating positions at the box office and in theme parks, with its streaming business likely to prove a lucrative venture over the long term. | Apple As the home of consistently in-demand products such as the iPhone, MacBook, AirPods, and more, Apple (NASDAQ: AAPL) has achieved the highest market cap in the world at $2.3 trillion. Alphabet Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) stock plunged 38.6% throughout 2022 as rises in inflation triggered reductions in ad spending and revenue declines in the company's highest-earning segments. The Motley Fool has positions in and recommends Alphabet, Amazon.com, Apple, Netflix, and Walt Disney. | Apple As the home of consistently in-demand products such as the iPhone, MacBook, AirPods, and more, Apple (NASDAQ: AAPL) has achieved the highest market cap in the world at $2.3 trillion. While the Nasdaq Composite index fell 33% throughout last year, and companies such as Amazon and Netflix experienced stock declines of about 50%, Apple shares beat the market with its stock sliding a more moderate 27%. Alphabet Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) stock plunged 38.6% throughout 2022 as rises in inflation triggered reductions in ad spending and revenue declines in the company's highest-earning segments. | Apple As the home of consistently in-demand products such as the iPhone, MacBook, AirPods, and more, Apple (NASDAQ: AAPL) has achieved the highest market cap in the world at $2.3 trillion. While it's often helpful to look at a company's five-year stock growth to determine its future long-term performance, it's more complex with Disney. As a result, Disney shares declined 4% in the last five years and gained about 80% in the last decade. |
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16890.0 | 2023-03-04 00:00:00 UTC | Validea Guru Fundamental Report for AAPL - 3/4/2023 | AAPL | https://www.nasdaq.com/articles/validea-guru-fundamental-report-for-aapl-3-4-2023 | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
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About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. | Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL). | Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Warren Buffett Warren Buffett Portfolio Top Warren Buffett Stocks About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. Below is Validea's guru fundamental report for APPLE INC (AAPL). | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. |
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16902.0 | 2023-03-03 00:00:00 UTC | Apple cloud chief Abbott to step down - Bloomberg News | AAPL | https://www.nasdaq.com/articles/apple-cloud-chief-abbott-to-step-down-bloomberg-news | March 3 (Reuters) - Apple Inc's AAPL.O head of cloud services Michael Abbott is leaving the company, joining a growing list of senior officials who have departed the iPhone maker recently, Bloomberg News reported on Friday.
(Reporting by Leroy Leo in Bengaluru; Editing by Krishna Chandra Eluri)
(([email protected] ; Twitter: https://twitter.com/LeroyLeo7;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | March 3 (Reuters) - Apple Inc's AAPL.O head of cloud services Michael Abbott is leaving the company, joining a growing list of senior officials who have departed the iPhone maker recently, Bloomberg News reported on Friday. (Reporting by Leroy Leo in Bengaluru; Editing by Krishna Chandra Eluri) (([email protected] ; Twitter: https://twitter.com/LeroyLeo7;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | March 3 (Reuters) - Apple Inc's AAPL.O head of cloud services Michael Abbott is leaving the company, joining a growing list of senior officials who have departed the iPhone maker recently, Bloomberg News reported on Friday. (Reporting by Leroy Leo in Bengaluru; Editing by Krishna Chandra Eluri) (([email protected] ; Twitter: https://twitter.com/LeroyLeo7;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | March 3 (Reuters) - Apple Inc's AAPL.O head of cloud services Michael Abbott is leaving the company, joining a growing list of senior officials who have departed the iPhone maker recently, Bloomberg News reported on Friday. (Reporting by Leroy Leo in Bengaluru; Editing by Krishna Chandra Eluri) (([email protected] ; Twitter: https://twitter.com/LeroyLeo7;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | March 3 (Reuters) - Apple Inc's AAPL.O head of cloud services Michael Abbott is leaving the company, joining a growing list of senior officials who have departed the iPhone maker recently, Bloomberg News reported on Friday. (Reporting by Leroy Leo in Bengaluru; Editing by Krishna Chandra Eluri) (([email protected] ; Twitter: https://twitter.com/LeroyLeo7;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
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16917.0 | 2023-03-02 00:00:00 UTC | Broadcom forecasts second-quarter revenue above estimates on AI boost | AAPL | https://www.nasdaq.com/articles/broadcom-forecasts-second-quarter-revenue-above-estimates-on-ai-boost | Adds share movement, Q1 revenue
March 2 (Reuters) - Broadcom Inc AVGO.O forecast second-quarter revenue above estimates on Thursday, as increased investments in artificial intelligence spurs demand for its chips used in data centers.
In a deteriorating economy, where both consumer and enterprise spending is on a decline, AI has emerged as a bright spot for chip firms like Nvidia NVDA.O and Broadcom AVGO.O, thanks to the strong potential applications of the technology as illustrated by OpenAI's chatbot ChatGPT.
Broadcom supplies chips used in data centers for networking as well as specialized chips that speed up AI work.
The Apple Inc AAPL.O supplier is also expected to gain from pent up demand for iPhones after Apple grappled with production hurdles in China in the latter half of last year.
Shares of San Jose, California-based Broadcom rose 1.3% in extended trading.
The chip designer expects current-quarter revenue to be about $8.7 billion, while analysts on average expect $8.59 billion, according to Refinitiv data.
Revenue for the three-month ended Jan. 29 was $8.92 billion, compared with analysts' average estimate of $8.90 billion.
(Reporting by Chavi Mehta in Bengaluru; Editing by Shinjini Ganguli)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Apple Inc AAPL.O supplier is also expected to gain from pent up demand for iPhones after Apple grappled with production hurdles in China in the latter half of last year. Adds share movement, Q1 revenue March 2 (Reuters) - Broadcom Inc AVGO.O forecast second-quarter revenue above estimates on Thursday, as increased investments in artificial intelligence spurs demand for its chips used in data centers. In a deteriorating economy, where both consumer and enterprise spending is on a decline, AI has emerged as a bright spot for chip firms like Nvidia NVDA.O and Broadcom AVGO.O, thanks to the strong potential applications of the technology as illustrated by OpenAI's chatbot ChatGPT. | The Apple Inc AAPL.O supplier is also expected to gain from pent up demand for iPhones after Apple grappled with production hurdles in China in the latter half of last year. Broadcom supplies chips used in data centers for networking as well as specialized chips that speed up AI work. The chip designer expects current-quarter revenue to be about $8.7 billion, while analysts on average expect $8.59 billion, according to Refinitiv data. | The Apple Inc AAPL.O supplier is also expected to gain from pent up demand for iPhones after Apple grappled with production hurdles in China in the latter half of last year. Adds share movement, Q1 revenue March 2 (Reuters) - Broadcom Inc AVGO.O forecast second-quarter revenue above estimates on Thursday, as increased investments in artificial intelligence spurs demand for its chips used in data centers. Broadcom supplies chips used in data centers for networking as well as specialized chips that speed up AI work. | The Apple Inc AAPL.O supplier is also expected to gain from pent up demand for iPhones after Apple grappled with production hurdles in China in the latter half of last year. Adds share movement, Q1 revenue March 2 (Reuters) - Broadcom Inc AVGO.O forecast second-quarter revenue above estimates on Thursday, as increased investments in artificial intelligence spurs demand for its chips used in data centers. In a deteriorating economy, where both consumer and enterprise spending is on a decline, AI has emerged as a bright spot for chip firms like Nvidia NVDA.O and Broadcom AVGO.O, thanks to the strong potential applications of the technology as illustrated by OpenAI's chatbot ChatGPT. |
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16947.0 | 2023-03-01 00:00:00 UTC | Is iShares MSCI ACWI Low Carbon Target ETF (CRBN) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-ishares-msci-acwi-low-carbon-target-etf-crbn-a-strong-etf-right-now-6 | Designed to provide broad exposure to the World ETFs category of the market, the iShares MSCI ACWI Low Carbon Target ETF (CRBN) is a smart beta exchange traded fund launched on 12/08/2014.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $864.54 million, this makes it one of the larger ETFs in the World ETFs. CRBN is managed by Blackrock. Before fees and expenses, CRBN seeks to match the performance of the MSCI ACWI Low Carbon Target Index.
The MSCI ACWI Low Carbon Target Index is designed to address two dimensions of carbon exposure ? carbon emissions and potential carbon emissions from fossil fuel reserves.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.20% for CRBN, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.87%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Apple Inc (AAPL) accounts for about 3.63% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
Performance and Risk
So far this year, CRBN has gained about 4.17%, and is down about -8.52% in the last one year (as of 03/01/2023). During this past 52-week period, the fund has traded between $126.30 and $166.96.
CRBN has a beta of 0.94 and standard deviation of 23.41% for the trailing three-year period, which makes the fund a low risk choice in the space. With about 1360 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares MSCI ACWI Low Carbon Target ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. IShares ESG Aware MSCI EAFE ETF has $6.98 billion in assets, iShares ESG Aware MSCI USA ETF has $19.32 billion. ESGD has an expense ratio of 0.20% and ESGU charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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iShares MSCI ACWI Low Carbon Target ETF (CRBN): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Taking into account individual holdings, Apple Inc (AAPL) accounts for about 3.63% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares MSCI ACWI Low Carbon Target ETF (CRBN): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta. | Click to get this free report iShares MSCI ACWI Low Carbon Target ETF (CRBN): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 3.63% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). IShares ESG Aware MSCI EAFE ETF (ESGD) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. | Click to get this free report iShares MSCI ACWI Low Carbon Target ETF (CRBN): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Apple Inc (AAPL) accounts for about 3.63% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Designed to provide broad exposure to the World ETFs category of the market, the iShares MSCI ACWI Low Carbon Target ETF (CRBN) is a smart beta exchange traded fund launched on 12/08/2014. | Taking into account individual holdings, Apple Inc (AAPL) accounts for about 3.63% of the fund's total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares MSCI ACWI Low Carbon Target ETF (CRBN): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report iShares ESG Aware MSCI EAFE ETF (ESGD): ETF Research Reports iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the World ETFs category of the market, the iShares MSCI ACWI Low Carbon Target ETF (CRBN) is a smart beta exchange traded fund launched on 12/08/2014. |
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16948.0 | 2023-02-28 00:00:00 UTC | The Zacks Analyst Blog Highlights Apple, Linde, Marsh & McLennan Companies, GSK and Expedia | AAPL | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-apple-linde-marsh-mclennan-companies-gsk-and-expedia | For Immediate Release
Chicago, IL – February 28, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple Inc. AAPL, Linde plc LIN, Marsh & McLennan Companies, Inc. MMC, GSK plc GSK and Expedia Group, Inc. EXPE.
Here are highlights from Monday’s Analyst Blog:
Top Analyst Reports from Apple, Linde and Marsh & McLennan
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Linde plc and Marsh & McLennan Companies, Inc. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Shares of Apple have roughly matched the broader market over the past year (-10.4% for Apple vs. -10.9% for the S&P 500 index), but handily outperformed the Zacks Tech sector (down - 19.8%).
The Zacks analyst covering Apple expects year-over-year revenue growth to decelerate in the fiscal first quarter compared with the fiscal fourth quarter due to unfavorable forex. Mac revenues are expected to be negatively impacted by forex. Apple expects Mac revenues to decline substantially year over year during the December quarter.
Services revenue growth is expected to be negatively impacted by challenging macroeconomic conditions, unfavorable forex, as well as weakness in digital advertising and gaming. Nevertheless, a growing subscriber base in the Services business and a strong liquidity position are key catalysts.
(You can read the full research report on Apple here >>>)
Linde shares have outperformed the Zacks Chemical - Diversified industry over the past year (+18.6% vs. +10.3%). The company’s wide range of applications for its industrial gases, Linde is making the world more productive by the day. The company’s primary products in industrial gases include oxygen, which is used as life support in hospitals.
Its process gas, like hydrogen, is being utilized for clean fuels, while its high-purity and specialty gases are employed to manufacture electronics. Linde has long-term contracts with on-site customers backed by minimum purchase requirements, thereby securing stable cashflows. In the profitable industrial gas market, the merger of Praxair and Linde has created an efficient player with considerable size advantages.
However, the cost of sales continues to increase, hurting the firm’s bottom line. The firm has mostly been paying a lower dividend yield than the industry’s composite stocks over the past two years.
(You can read the full research report on Linde here >>>)
Marsh & McLennan shares have outperformed the Zacks Insurance - Brokerage industry over the past year (+4.3% vs. +3.6%). The company is well-poised to grow on the back of significant investments and acquisitions made within its operating units, the launch of new products and branching out into new businesses.
Its increased stake in Marsh India will further buoy growth. Revenues have been increasing thanks to a wide geographic presence and strong client retention. The Risk and Insurance Services unit has been contributing to revenue growth for a while. MMC had around $4.3 billion left under authorization as of Dec 31, 2022.
However, high operating costs might weigh on the margins. A debt-laden balance sheet is a concern. Its valuation remains stretched at the current level. As such, the stock warrants a cautious stance.
(You can read the full research report on Marsh & McLennan here >>>)
Other noteworthy reports we are featuring today include GSK plc and Expedia Group, Inc.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.8% per year. So be sure to give these hand-picked 7 your immediate attention.
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GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report
Linde plc (LIN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Stocks recently featured in the blog include: Apple Inc. AAPL, Linde plc LIN, Marsh & McLennan Companies, Inc. MMC, GSK plc GSK and Expedia Group, Inc. EXPE. Click to get this free report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report Linde plc (LIN) : Free Stock Analysis Report To read this article on Zacks.com click here. Services revenue growth is expected to be negatively impacted by challenging macroeconomic conditions, unfavorable forex, as well as weakness in digital advertising and gaming. | Stocks recently featured in the blog include: Apple Inc. AAPL, Linde plc LIN, Marsh & McLennan Companies, Inc. MMC, GSK plc GSK and Expedia Group, Inc. EXPE. Click to get this free report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report Linde plc (LIN) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Linde plc and Marsh & McLennan Companies, Inc. | Click to get this free report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report Linde plc (LIN) : Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include: Apple Inc. AAPL, Linde plc LIN, Marsh & McLennan Companies, Inc. MMC, GSK plc GSK and Expedia Group, Inc. EXPE. Here are highlights from Monday’s Analyst Blog: Top Analyst Reports from Apple, Linde and Marsh & McLennan The Zacks Research Daily presents the best research output of our analyst team. | Stocks recently featured in the blog include: Apple Inc. AAPL, Linde plc LIN, Marsh & McLennan Companies, Inc. MMC, GSK plc GSK and Expedia Group, Inc. EXPE. Click to get this free report GSK PLC Sponsored ADR (GSK) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report Marsh & McLennan Companies, Inc. (MMC) : Free Stock Analysis Report Linde plc (LIN) : Free Stock Analysis Report To read this article on Zacks.com click here. Today's Research Daily features new research reports on 16 major stocks, including Apple Inc., Linde plc and Marsh & McLennan Companies, Inc. |
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16976.0 | 2023-02-27 00:00:00 UTC | 86% of Warren Buffett's $5.4 Billion Secret Portfolio Is Invested in Only 4 Stocks | AAPL | https://www.nasdaq.com/articles/86-of-warren-buffetts-%245.4-billion-secret-portfolio-is-invested-in-only-4-stocks | Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett knows a thing or two about investing -- at least according to his track record. Since taking over as CEO in 1965, he's overseen a greater than 3,700,000% aggregate return in his company's Class A shares (BRK.A). Hypothetically, these shares could lose 99% of their value tomorrow and Buffett's company would still be handily outpacing the benchmark S&P 500's total return, including dividends paid, since 1965.
The Oracle of Omaha's long-term success has encouraged investors young and old to ride his coattails. This can be done relatively easily by tracking Berkshire Hathaway's trading activity via Form 13F filings with the Securities and Exchange Commission.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
A 13F is a required quarterly filing for institutional investors with at least $100 million in assets under management. It allows investors an under-the-hood look at what stocks, trends, industries, and sectors are intriguing the brightest and most-successful fund managers on Wall Street. But in Buffett's case, Berkshire Hathaway's 13F doesn't tell the complete story.
In 1998, Buffett's company acquired reinsurance giant General Re for $22 billion. At the time, General Re owned a specialty investment firm known as New England Asset Management (NEAM). When Berkshire Hathaway bought General Re, NEAM came with it and effectively became Warren Buffett's secret portfolio. Although Buffett doesn't oversee NEAM's investment activity as he does with Berkshire's $331 billion portfolio, what New England Asset Management holds stakes in is, effectively, owned by Buffett's company.
Since New England Asset Management has more than $5.4 billion in assets under management, it's required to file a quarterly 13F. What this latest filing showed is that Warren Buffett's secret portfolio is highly concentrated, with 86% of invested assets tied up in only four stocks (as of Dec. 31, 2022).
Apple: 48.92% of invested assets
Similar to Berkshire Hathaway's core investment portfolio, tech stock Apple (NASDAQ: AAPL) makes up the largest position. Whereas it accounts for 41% of invested assets in Berkshire's $331 billion investment portfolio, it comprises nearly 49% of Buffett's secret portfolio.
Apple has been a continuous holding for New England Asset Management for the past 10 years. The reasons it accounts for almost half of invested assets probably has to do with its innovation and capital-return program.
In one respect, Apple's physical products have endeared hundreds of millions of people worldwide to its brand. Following the launch of 5G-capable iPhones in the U.S. a little over two years ago, Apple's share of the smartphone market rocketed higher and settled around the 50% mark.
However, Apple's future depends just as much, if not more, on its evolution as a services-oriented company. CEO Tim Cook and his management team are spearheading a transition that focuses on high-margin subscription services. As services grows into a larger percentage of net sales, the ebbs and flows Apple would experience from physical product replacement cycles should be minimized.
Apple is also a cash-flow powerhouse. It's generated more than $109 billion in operating cash flow over the trailing four quarters, is returning close to $14.6 billion to its shareholders each year via dividends, and has repurchased more than $550 billion of its common stock over the past decade.
Image source: Getty Images.
Chevron: 14.64% of invested assets
Energy stock Chevron (NYSE: CVX) has been an especially popular buy in Warren Buffett's secret portfolio. The oil and gas giant is closing in on a 15% share of invested assets and has been a continuous holding by NEAM for more than two decades.
The most logical reason for New England Asset Management to have nearly $800 million put to work in Chevron stock would be the expectation of elevated energy commodity prices. Although the spot price of natural gas has absolutely nosedived due to a warmer winter in parts of the U.S. and Europe, crude oil has held up quite well.
The thesis behind higher crude oil prices relates to Russia's invasion of Ukraine and the COVID-19 pandemic. While a lot of emphasis has been placed on Europe's energy demand needs following Russia's invasion of Ukraine, three years of capital underinvestment because of the pandemic is, arguably, a bigger issue. Increasing the global supply of oil will take time, which in the interim is helping to buoy the spot price of West Texas Intermediate and Brent crude.
It's worth pointing out that Chevron is an integrated operator. Though it generates its best margins from drilling, it also operates transmission pipelines, chemical plants, and refineries. These are segments that provide predictable cash flow and/or help to hedge against weaker crude oil prices.
Furthermore, Chevron capital-return program is pretty special. It recently raised its base annual payout for a 36th consecutive year and announced a share repurchase program that could total as much as $75 billion.
Bank of America: 13.88% of invested assets
Keeping with the similarities to Berkshire Hathaway's $331 billion investment portfolio, Buffett's secret portfolio is fairly heavily weighted to Bank of America (NYSE: BAC). Money-center bank BofA has been a continuous holding for NEAM since the third quarter of 2017.
The attractiveness of bank stocks has to do with the predictability of the U.S. and global economy over time. Even though banks are cyclical and recessions are an inevitable part of the economic cycle, the U.S. and global economy tend to grow over long periods. With time as an ally, companies like Bank of America can focus on growing their loans and deposits and generate higher net income as the U.S. economy expands.
The most intriguing aspect about BofA is its interest rate sensitivity. With the Federal Reserve combatting historically high inflation by rapidly increasing interest rates, banks with outstanding variable-rate loans have seen their net-interest income rise. However, no bank is seeing a larger bump in net interest income than Bank of America, which recognized a $3.3 billion increase from the year-ago period during the fourth quarter.
Bank of America also deserves recognition for its aggressive investments in digitization. As of the end of 2022, 44 million people were active digital users -- that's up 6 million from three years earlier -- and 49% of total sales were completed online or via mobile app. It's much cheaper for banks when customers transact digitally, and it's allowing BofA the option to consolidate some of its physical branches to reduce its operating expenses.
HP: 8.15% of invested assets
The fourth stock in Warren Buffett's secret portfolio that makes up a significant percentage of invested assets is personal-computing (PC) and printing-solutions company HP (NYSE: HPQ). Despite accounting for more than 8% of New England Asset Management's invested assets, it's been a holding for less than two years.
One of the lures of HP is that its operating model tends to be predictable. Putting aside the fact that PC sales surged during the pandemic and are now falling back to normalized levels, HP can generally count on predictable sales and cash flow from PCs and printing solutions each year.
To add to the above predictability, HP is also a value stock. During bear markets, investors tend to seek out highly profitable, time-tested businesses with relatively low price-to-earnings multiples. Even though HP's growth heyday is long gone, there's (presumably) a pretty safe floor beneath a company's stock that's valued at just 8 times forecast earnings in 2024.
Similar to the other companies on this list, HP has beefed up its capital-return program as a way to reward its long-term shareholders. HP used $4.3 billion of its cash during fiscal 2022 to repurchase 126 million shares of its common stock. It recently announced a 5% increase to its quarterly dividend as well.
While HP is far from an exciting investment, it provides stability at a time when the stock market can be whipsawed at a moment's notice.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and HP. 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: 48.92% of invested assets Similar to Berkshire Hathaway's core investment portfolio, tech stock Apple (NASDAQ: AAPL) makes up the largest position. Increasing the global supply of oil will take time, which in the interim is helping to buoy the spot price of West Texas Intermediate and Brent crude. With time as an ally, companies like Bank of America can focus on growing their loans and deposits and generate higher net income as the U.S. economy expands. | Apple: 48.92% of invested assets Similar to Berkshire Hathaway's core investment portfolio, tech stock Apple (NASDAQ: AAPL) makes up the largest position. Bank of America: 13.88% of invested assets Keeping with the similarities to Berkshire Hathaway's $331 billion investment portfolio, Buffett's secret portfolio is fairly heavily weighted to Bank of America (NYSE: BAC). HP: 8.15% of invested assets The fourth stock in Warren Buffett's secret portfolio that makes up a significant percentage of invested assets is personal-computing (PC) and printing-solutions company HP (NYSE: HPQ). | Apple: 48.92% of invested assets Similar to Berkshire Hathaway's core investment portfolio, tech stock Apple (NASDAQ: AAPL) makes up the largest position. Bank of America: 13.88% of invested assets Keeping with the similarities to Berkshire Hathaway's $331 billion investment portfolio, Buffett's secret portfolio is fairly heavily weighted to Bank of America (NYSE: BAC). HP: 8.15% of invested assets The fourth stock in Warren Buffett's secret portfolio that makes up a significant percentage of invested assets is personal-computing (PC) and printing-solutions company HP (NYSE: HPQ). | Apple: 48.92% of invested assets Similar to Berkshire Hathaway's core investment portfolio, tech stock Apple (NASDAQ: AAPL) makes up the largest position. Although Buffett doesn't oversee NEAM's investment activity as he does with Berkshire's $331 billion portfolio, what New England Asset Management holds stakes in is, effectively, owned by Buffett's company. It's generated more than $109 billion in operating cash flow over the trailing four quarters, is returning close to $14.6 billion to its shareholders each year via dividends, and has repurchased more than $550 billion of its common stock over the past decade. |
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16981.0 | 2023-02-26 00:00:00 UTC | Warren Buffett's, Bill Ackman's, and Michael Burry's Portfolios All Have 1 Thing In Common | AAPL | https://www.nasdaq.com/articles/warren-buffetts-bill-ackmans-and-michael-burrys-portfolios-all-have-1-thing-in-common | If we're talking about great investors, three names that immediately come to mind are Warren Buffett, Bill Ackman, and Michael Burry.
Buffett and his company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) have routinely beaten the market since Buffett took over the company in 1965. Ackman and his fund Pershing Square Capital Management have generated 17% annualized returns since the fund launched in 2004. And Burry is famous for his call that the housing bubble would collapse prior to the Great Recession, a bet that would yield him and his investors an $800 million profit.
Yes, all three of these investors have a proven track record and decades of experience. But if you look at all three of their portfolios, you'll also notice one common trait.
They don't preach diversification
Common investing advice you've probably heard time and time again is to diversify your portfolio. That way if one of your companies goes out of business, you are not completely exposed to its stock. Don't have all of your eggs in one basket.
Image source: The Motley Fool.
But Buffett, Ackman, and Burry really throw this conventional wisdom out the window. Berkshire reports owning 49 stocks and invests hundreds of billions into these assets. But almost 60% of Berkshire's portfolio of publicly traded stocks is in just three companies: Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX).
Ackman and Pershing Square have a much smaller portfolio than Berkshire. It's valued at around $9 billion, but there are only six stocks in it. The home improvement retailer Lowe's (NYSE: LOW) makes up more than 23% of the portfolio.
Finally, Burry's fund Scion Asset Management is much, much smaller than Berkshire or Pershing and is currently valued at about $47 million. The fund only owns nine stocks, and the government service provider GEO Group (NYSE: GEO) makes up about a quarter of the portfolio.
So none of these great investors seem to really worry about diversification too much. Buffett has even said he's not a big fan of the practice. "You know, we think diversification is -- as practiced generally -- makes very little sense for anyone that knows what they're doing... it is a protection against ignorance," the Oracle of Omaha has famously said.
Buffett has also been a big believer in seizing opportunity and going in big when you see the market pricing a stock incorrectly, because these opportunities do not present themselves every day.
Should you follow their lead?
While many might perceive Buffett's quote on diversification as arrogant or elitist, I think it's important for investors to really heed his advice.
If you are a retail investor, work a full-time job, and have a family, then there's a good chance you simply do not have the time or resources to put in the required research to go all in on just a few stocks.
So when you invest, you may not have a complete 360-degree view of an individual company and all the different scenarios it may face under various economic conditions. That doesn't mean you can't do a lot of research and arrive at an informed thesis that leads you to invest. It just means you may want to protect against some downside, in which case diversification makes a lot of sense.
But for investors like Buffett, Ackman, and Burry, who are extremely skilled and have lots of time and resources to study the market and stocks, they really need to feel almost 100% confident in their picks because their investors are putting a lot of money into their funds. But this is why they make the big bucks and regularly beat the market.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Bram Berkowitz has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Lowe's Companies 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. | But almost 60% of Berkshire's portfolio of publicly traded stocks is in just three companies: Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX). If we're talking about great investors, three names that immediately come to mind are Warren Buffett, Bill Ackman, and Michael Burry. And Burry is famous for his call that the housing bubble would collapse prior to the Great Recession, a bet that would yield him and his investors an $800 million profit. | But almost 60% of Berkshire's portfolio of publicly traded stocks is in just three companies: Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX). The home improvement retailer Lowe's (NYSE: LOW) makes up more than 23% of the portfolio. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. | But almost 60% of Berkshire's portfolio of publicly traded stocks is in just three companies: Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX). But for investors like Buffett, Ackman, and Burry, who are extremely skilled and have lots of time and resources to study the market and stocks, they really need to feel almost 100% confident in their picks because their investors are putting a lot of money into their funds. See the 10 stocks *Stock Advisor returns as of February 8, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company. | But almost 60% of Berkshire's portfolio of publicly traded stocks is in just three companies: Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), and Chevron (NYSE: CVX). They don't preach diversification Common investing advice you've probably heard time and time again is to diversify your portfolio. But for investors like Buffett, Ackman, and Burry, who are extremely skilled and have lots of time and resources to study the market and stocks, they really need to feel almost 100% confident in their picks because their investors are putting a lot of money into their funds. |
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16984.0 | 2023-02-25 00:00:00 UTC | Validea Guru Fundamental Report for AAPL - 2/25/2023 | AAPL | https://www.nasdaq.com/articles/validea-guru-fundamental-report-for-aapl-2-25-2023 | Below is Validea's daily guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS PREDICTABILITY: PASS
DEBT SERVICE: PASS
RETURN ON EQUITY: PASS
RETURN ON TOTAL CAPITAL: PASS
FREE CASH FLOW: PASS
USE OF RETAINED EARNINGS: PASS
SHARE REPURCHASE: PASS
INITIAL RATE OF RETURN: PASS
EXPECTED RETURN: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
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16989.0 | 2023-02-24 00:00:00 UTC | This Supercharged Nasdaq Stock Is Up 35% in 2023, But Is It a Buy? | AAPL | https://www.nasdaq.com/articles/this-supercharged-nasdaq-stock-is-up-35-in-2023-but-is-it-a-buy | Shares of chipmaker Cirrus Logic (NASDAQ: CRUS) have been red-hot so far in 2023 amid the broader market rally as well as solid results for its fiscal 2023 third quarter (ended Dec. 24, 2022, and released on Feb. 2).
The company, which counts Apple (NASDAQ: AAPL) as its largest customer, beat the slowdown in the smartphone market last quarter and delivered year-over-year revenue growth that surprised analysts. What's more, Cirrus' adjusted earnings turned out to be way better than Wall Street had expected. Investors cheered the company's results, which is evident from the stock's terrific returns so far this year.
But can Cirrus sustain this momentum? Or will the chipmaker's rally fizzle out thanks to its poor near-term guidance? Let's find out.
Cirrus Logic faces near-term headwinds
Cirrus Logic's revenue of $591 million last quarter was a jump of 8% over the prior-year period, well ahead of the $543 million consensus estimate. Adjusted earnings of $2.40 per share also topped the estimate of $1.99 per share by a wide margin.
The company credited its smartphone business for the resilient showing last quarter, which may seem a tad surprising given the 18.3% year-over-year plunge in global smartphone shipments in the fourth quarter of 2022. What's more, Apple is Cirrus' largest customer, and the manufacturer of iPhones didn't escape the smartphone slowdown either. Shipments of iPhones were reportedly off by almost 15% year over year last quarter.
As Cirrus' largest customer produced 88% of its total revenue last quarter, the slowdown in iPhone sales should have crushed the chipmaker. But that wasn't the case as Cirrus was supplying additional content for smartphones and enjoyed an improvement in average selling prices last quarter. It is worth noting that Cirrus has moved beyond its traditional business of selling audio chips that are used by Apple. The Cupertino, California-based tech giant is tapping Cirrus for power conversion chips as well.
So Cirrus was able to offset the losses of lower unit volumes with the help of more content in each iPhone. But the massive reliance on Apple has a downside as well. Cirrus forecasts $370 million in revenue this quarter at the midpoint of its guidance range, translating into a year-over-year drop of nearly 25%.
But seasonality in the smartphone market in the first quarter of the calendar year, along with the fact that Cirrus benefited from the launch of the 5G-enabled iPhone SE in March 2022 -- a tailwind that it doesn't have this year -- means that the company will end fiscal 2023 on the back foot. Cirrus' guidance suggests that it will end the fiscal year with a 6% increase in total revenue to $1.89 billion. Adjusted earnings are expected to shrink to $6.35 per share from $6.90 per share in fiscal 2022.
CRUS Revenue Estimates for Current Fiscal Year data by YCharts.
Analysts don't expect much of an acceleration in the chipmaker's growth in the next couple of fiscal years either. However, Cirrus may have a surprise up its sleeve and step on the gas later this year. Let's see why that may be the case.
A potential catalyst could send the stock higher
Cirrus' near-term outlook doesn't look inspiring right now, but management dropped hints on the latestearnings conference callthat it could gain more business from its largest customer later this year. CEO John Forsyth pointed out that Cirrus has been witnessing an improvement in the adoption of its high-performance mixed-signal (HPMS) chips, such as camera controllers by smartphone OEMs (original equipment manufacturers), a trend that it expects to continue when it launches its next-generation camera controller later in 2023.
Forsyth also added that Cirrus has "made excellent progress toward the introduction of a new HPMS component during the second half of this year," suggesting that the company may be able to further increase its content level at Apple. Supply chain gossip suggests that Apple may equip the next-generation iPhones with touch-based buttons, and Cirrus could be the one providing chips to enable the same.
Along with a potential gain in content at Apple, Cirrus may also be able to take advantage of stronger shipments in 2023. IDC estimates that iPhone shipments were down 4% in 2022 to 226 million units. Apple is expected to ship 233.5 million iPhones, a small improvement over the prior year. One key reason why Apple may be able to increase its iPhone shipments in 2023 is because of faster growth in sales of 5G devices.
It is estimated that 5G devices could account for 69% of overall smartphone sales in 2023, up from 52% last year. That points toward a nice jump in the adoption of 5G smartphones this year, as 43% of devices sold in 2021 were 5G-enabled, suggesting that their growth slowed down in 2022 thanks to the weakness in the smartphone space. Apple is the dominant player in the 5G smartphone market as it controls nearly a third of this space, which could pave the way for an improvement in iPhone shipments this year.
So there is a chance that Cirrus' growth could accelerate in the second half of 2023, which is why investors might consider adding this tech stock to their portfolios, especially considering its valuation. Trading at 18 times trailing earnings and 16 times forward earnings, Cirrus is attractively valued when compared to the Nasdaq 100's price-to-earnings ratio of 25, which means it isn't too late for investors to buy Cirrus Logic even after its latest rally.
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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 counts Apple (NASDAQ: AAPL) as its largest customer, beat the slowdown in the smartphone market last quarter and delivered year-over-year revenue growth that surprised analysts. Shares of chipmaker Cirrus Logic (NASDAQ: CRUS) have been red-hot so far in 2023 amid the broader market rally as well as solid results for its fiscal 2023 third quarter (ended Dec. 24, 2022, and released on Feb. 2). A potential catalyst could send the stock higher Cirrus' near-term outlook doesn't look inspiring right now, but management dropped hints on the latestearnings conference callthat it could gain more business from its largest customer later this year. | The company, which counts Apple (NASDAQ: AAPL) as its largest customer, beat the slowdown in the smartphone market last quarter and delivered year-over-year revenue growth that surprised analysts. Cirrus Logic faces near-term headwinds Cirrus Logic's revenue of $591 million last quarter was a jump of 8% over the prior-year period, well ahead of the $543 million consensus estimate. As Cirrus' largest customer produced 88% of its total revenue last quarter, the slowdown in iPhone sales should have crushed the chipmaker. | The company, which counts Apple (NASDAQ: AAPL) as its largest customer, beat the slowdown in the smartphone market last quarter and delivered year-over-year revenue growth that surprised analysts. Cirrus Logic faces near-term headwinds Cirrus Logic's revenue of $591 million last quarter was a jump of 8% over the prior-year period, well ahead of the $543 million consensus estimate. But seasonality in the smartphone market in the first quarter of the calendar year, along with the fact that Cirrus benefited from the launch of the 5G-enabled iPhone SE in March 2022 -- a tailwind that it doesn't have this year -- means that the company will end fiscal 2023 on the back foot. | The company, which counts Apple (NASDAQ: AAPL) as its largest customer, beat the slowdown in the smartphone market last quarter and delivered year-over-year revenue growth that surprised analysts. But that wasn't the case as Cirrus was supplying additional content for smartphones and enjoyed an improvement in average selling prices last quarter. Analysts don't expect much of an acceleration in the chipmaker's growth in the next couple of fiscal years either. |
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17000.0 | 2023-02-23 00:00:00 UTC | 7 Stocks That Hedge Funds Are Flooding Into. Should You? | AAPL | https://www.nasdaq.com/articles/7-stocks-that-hedge-funds-are-flooding-into.-should-you | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With so many vagaries clouding the present market environment, one possible avenue for success is to align your portfolio with your favorite hedge fund stocks. Simultaneously celebrated and vilified, this special brand of institutional investor might give you an edge. Primarily, your favorite hedge fund stocks typically stem from the top experts in the stock-picking game. And these institutions only hire the absolute best analysts and provide them with unparalleled technical resources. Sure, there’s a tendency to dismiss such experts as clowns. However, the reality is that more often than not, they know what they’re doing.
Second, investors may find comfort in the safety of numbers. It’s one thing when one institutional investor places a heavy wager. It’s quite another when several of them make the same bet. Therefore, aligning with your favorite hedge fund stocks might improve your odds. Below are some of the most targeted plays – and whether you should get involved or not.
MSFT Microsoft $254.77
AAPL Apple $149.40
AMZN Amazon $95.82
BRK-A Berkshire Hathaway $459,375.00
TSLA Tesla $202.07
SCHW Charles Schwab $78.97
PLD Prologis $124.01
Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
According to information provided by HedgeFollow.com, Microsoft (NASDAQ:MSFT) ranked second place among favorite hedge fund stocks. Per the website, this category of institutional investor acquired a total of $58.99 billion worth of MSFT since the beginning of the first quarter of 2023. The top three investors are Norges Bank (buying $20.40 billion), Morgan Stanley ($3.46 billion), and BlackRock ($3.12 billion).
Financially, Microsoft arguably represents a no-brainer among popular hedge fund stocks. Per Gurufocus.com’s proprietary calculations for fair market value, MSFT rates as modestly undervalued. On the balance sheet, the company features solid strengths, including an Altman Z-Score of 8.31 (reflecting a very low bankruptcy risk). As well, it features strong growth and outstanding profitability metrics.
Presently, Wall Street analysts peg MSFT as a consensus strong buy. Further, their average price target stands at $291.70, implying 16% upside potential. In the trailing year, MSFT slipped over 10% as the technology sector suffered badly in 2022. However, since the January opener, MSFT gained 5%.
Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
A stalwart in the consumer tech space, Apple (NASDAQ:AAPL) ranks third among favorite hedge fund stocks per HedgeFollow.com. According to the website, these institutional investors acquired a total of $55.48 billion worth of AAPL stock. The top investor so far in Q1 2023 is Norges Bank at $22.44 billion. Coming in second and third were Morgan Stanley ($3.84 billion) and Barclays ($1.57 billion).
On paper, Apple should be reeling from the pressures impacting the consumer economy. However, its brand remains as powerful as ever. Currently, Gurufocus.com labels AAPL as modestly undervalued based on its proprietary FMV calculations. Not surprisingly, though, the greatest strengths center on its operational dominance.
For instance, Apple’s three-year revenue growth rate stands at 20%, outpacing 85.62% of its competitors. Its net margin pings at 24.56%, beating out 95.52% of rivals. Right now, Wall Street analysts peg AAPL as a consensus strong buy. Further, their average price target stands at $171.94, implying over 15% upside potential.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
Earning its reputation in the e-commerce space, Amazon (NASDAQ:AMZN) ranks among the favorite hedge fund stocks for its massive footprint. Per HedgeFollow.com, the company comes in fourth place among buy-ins from these institutional investors, which bought $41.62 billion worth. Again, the top investor was Norges Bank, in this case with an exposure of $9.69 billion. Morgan Stanley and JPMorgan Chase rounded out the top three at $2.04 billion and $1.38 billion, respectively.
To be fair, Amazon represents a tricky narrative because of the beating it took in 2022. In the trailing year, shares gave up nearly 34% of equity value. As well, Gurufocus.com warns that AMZN may be a possible value trap. Finally, in the past year, the net margin slipped slightly into negative territory.
On the other hand, Amazon still represents a growth machine. Its three-year revenue growth rate stands at 21.9%, beating out 84.28% of its rivals. Combined with its brand power and myriad relevancies, it should be worth a look. Presently, covering analysts peg AMZN as a consensus strong buy. Their average price target stands at $137.05, implying 43% upside potential.
Berkshire Hathaway (BRK-A)
Source: IgorGolovniov / Shutterstock.com
When it comes to discussing Berkshire Hathaway (NYSE:BRK-A), presumably most publications focus on its Class B shares. Regarding popular hedge fund stocks, however, we’re going to be talking about Class A shares – the one where a single share costs more than the average U.S. home.
Ranking fifth, hedge funds acquired $29.96 billion worth of BRK-A. The top investor was Perigon Wealth Management at $15.51 billion. Next came CI Private Wealth at $6.81 billion and Norges Bank at $2.58 billion. Financially, Gurufocus.com warns its readers that BRK.A may be modestly overvalued. That said, the industrial conglomerate attracts attention because of its wide-reaching wagers.
Plus, it features solid operations. Most notably, its three-year revenue growth rate stands at 19.7%, outpacing 81.3% of its peers. Also, its book growth rate during the same period is 17.3%, beating out 84.3% of the industry. Turning to Wall Street, covering analysts peg BRK-A as a consensus moderate buy. Further, their average price target stands at $542,568, implying nearly 18% upside potential.
Tesla (TSLA)
Source: Zigres / Shutterstock.com
As things stand now, Tesla (NASDAQ:TSLA) ranks as the top idea among popular hedge fund stocks. These institutional investors bought $60.36 billion worth of TSLA. Further, the top hedge fund was Natixis, buying up $32.35% billion worth of shares. Rounding out the top three were Norges Bank ($5.31 billion) and Susquehanna International Group ($2.17 billion). So, why didn’t I mention Tesla as the top name among popular hedge fund stocks? Mainly, it’s not clear that everyone should acquire TSLA. It really depends on your risk-reward profile.
Objectively, TSLA appears significantly overvalued. At the time of writing, the market prices TSLA at a trailing multiple of 55.44. Also, TSLA trades at a forward multiple of 50.14. Both are overwhelmingly overvalued for the underlying industry. Adding to the pressures, electric vehicles tend to be quite expensive at this juncture. Further, not everyone has access to home charging. Here’s the other thing. Although covering analysts peg TSLA as a consensus moderate buy, their average price target pings at $202.46. That’s less than 1% upside potential. If you believe in it, go for it. However, it might not be for everyone.
Charles Schwab (SCHW)
Source: Vova Shevchuk / Shutterstock.com
Another example of popular hedge fund stock that might not be everyone’s cup of tea is Charles Schwab (NYSE:SCHW). Coming in sixth place, hedge funds acquired $23.93 billion worth of the financial services firm. The top investor was Toronto Dominion Bank at $17.47 billion. The second place belongs to Norges Bank ($1.23 billion) and third to Morgan Stanley ($664.26 million).
Overall, SCHW isn’t a bad bet. However, it features confusing fundamentals. On the optimistic front, bear market cycles tend to let the cream rise to the top regarding wealth management businesses. I’ve mentioned this concept several times before. However, it does come with the risk that during down cycles, people tend not to invest. Further, the Federal Reserve poses serious problems. Theoretically, higher interest rates mean greater profitability for financial packages. But it also means fewer incentives to take those packages because of higher borrowing costs. On the Street, analysts peg SCHW as a consensus moderate buy. Further, their average price target stands at $91.05, implying nearly 14% upside potential.
Prologis (PLD)
Source: shutterstock.com/CC7
A real estate investment trust (REIT), Prologis (NYSE:PLD) invests in logistics facilities. Per HedgeFollow.com, Prologis ranks as number 11 among popular hedge fund stocks. Collectively, these institutional investors acquired $18.07 billion worth of PLD stock. Acquiring the most was Vanguard Group at $2.59 billion. Rounding out the top three were BlackRock at $1.72 billion and Cohen & Steers at $1.43 billion.
In any other circumstance, Prologis might be a no-brainer acquisition. And for those that believe in the broader post-pandemic economic recovery, it might still be. However, PLD might not be the most appropriate investor for everyone’s needs.
Setting aside that it appears objectively overvalued at this juncture, Prologis faces concerns associated with the consumer economy. Should the Fed get too aggressive in its bid to control inflation, the logistics facilities business might suffer. So far, though, Wall Street remains optimistic. Presently, covering analysts peg PLD as a consensus strong buy. Also, their average price target stands at $138.71, implying nearly 13% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post 7 Stocks That Hedge Funds Are Flooding Into. Should You? 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. | MSFT Microsoft $254.77 AAPL Apple $149.40 AMZN Amazon $95.82 BRK-A Berkshire Hathaway $459,375.00 TSLA Tesla $202.07 SCHW Charles Schwab $78.97 PLD Prologis $124.01 Microsoft (MSFT) Source: Asif Islam / Shutterstock.com According to information provided by HedgeFollow.com, Microsoft (NASDAQ:MSFT) ranked second place among favorite hedge fund stocks. Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com A stalwart in the consumer tech space, Apple (NASDAQ:AAPL) ranks third among favorite hedge fund stocks per HedgeFollow.com. According to the website, these institutional investors acquired a total of $55.48 billion worth of AAPL stock. | MSFT Microsoft $254.77 AAPL Apple $149.40 AMZN Amazon $95.82 BRK-A Berkshire Hathaway $459,375.00 TSLA Tesla $202.07 SCHW Charles Schwab $78.97 PLD Prologis $124.01 Microsoft (MSFT) Source: Asif Islam / Shutterstock.com According to information provided by HedgeFollow.com, Microsoft (NASDAQ:MSFT) ranked second place among favorite hedge fund stocks. Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com A stalwart in the consumer tech space, Apple (NASDAQ:AAPL) ranks third among favorite hedge fund stocks per HedgeFollow.com. According to the website, these institutional investors acquired a total of $55.48 billion worth of AAPL stock. | MSFT Microsoft $254.77 AAPL Apple $149.40 AMZN Amazon $95.82 BRK-A Berkshire Hathaway $459,375.00 TSLA Tesla $202.07 SCHW Charles Schwab $78.97 PLD Prologis $124.01 Microsoft (MSFT) Source: Asif Islam / Shutterstock.com According to information provided by HedgeFollow.com, Microsoft (NASDAQ:MSFT) ranked second place among favorite hedge fund stocks. Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com A stalwart in the consumer tech space, Apple (NASDAQ:AAPL) ranks third among favorite hedge fund stocks per HedgeFollow.com. According to the website, these institutional investors acquired a total of $55.48 billion worth of AAPL stock. | MSFT Microsoft $254.77 AAPL Apple $149.40 AMZN Amazon $95.82 BRK-A Berkshire Hathaway $459,375.00 TSLA Tesla $202.07 SCHW Charles Schwab $78.97 PLD Prologis $124.01 Microsoft (MSFT) Source: Asif Islam / Shutterstock.com According to information provided by HedgeFollow.com, Microsoft (NASDAQ:MSFT) ranked second place among favorite hedge fund stocks. Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com A stalwart in the consumer tech space, Apple (NASDAQ:AAPL) ranks third among favorite hedge fund stocks per HedgeFollow.com. According to the website, these institutional investors acquired a total of $55.48 billion worth of AAPL stock. |
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17021.0 | 2023-02-22 00:00:00 UTC | Why Meta Stock Should Pay a Dividend | AAPL | https://www.nasdaq.com/articles/why-meta-stock-should-pay-a-dividend | Facebook parent Meta Platforms (NASDAQ: META) has a cash problem. It wrapped up its fourth quarter with nearly $41 billion in cash, cash equivalents, and marketable securities. Subtracting its long-term debt of nearly $10 billion gives the company a net cash position of about $31 billion when including cash equivalents and marketable securities.
Further, this pile of cash can grow quickly if the company doesn't find prudent ways to spend it. The tech company's average annual free cash flow over the last two years was more than $28 billion.
With both a strong cash balance and impressive free cash flow, it's no surprise that the company recently announced a massive increase to its share-repurchase program. But is management making a mistake by not paying a dividend with some of the excess cash it is using for repurchases?
Here's why paying a dividend might be a smart move for Meta.
Share repurchases can be risky
While share repurchases can provide significant shareholder value, they can also destroy value if they are not executed wisely. Case in point: The company repurchased more than $19 billion worth of its own stock in the fourth quarter of 2021. Shares averaged about $330 apiece during the quarter. By comparison, the stock sits about 48% below this level today. This means Meta significantly overpaid for its stock.
With Meta's stock falling to levels below $100 at one point during the fourth quarter of 2022, the company must have bought its stock much more aggressively at that time, right? Not at all. Meta repurchased less than $7 billion of its stock during the quarter.
To its credit, Meta has returned to its aggressive stance more recently. On February 1, management said it is expanding its share-repurchase authorization by $40 billion (about $11 billion remained on the previous authorization). While the stock is trading substantially lower than it was in 2021, it's worth noting that it's up significantly from lows in 2022. So even this aggressive expansion of its repurchase program is arguably a bit late to the party.
Executing a share-repurchase program well requires exceptional capital skills -- especially when the buyback is meaningful. Meta hasn't yet proven its prowess in repurchasing shares in a measured, shareholder-friendly way.
A dividend would help mitigate some shareholder risk
By choosing to repurchase shares as opposed to paying a dividend, Meta's actions suggest it believes the company's business model is extremely durable. Further, it implies that the company expects its business to continue growing over the long haul. Both of these predictions are fair and, potentially, even conservative given the stock's valuation today. For this reason, there's some merit to share repurchases with the price at today's level.
But to avoid a dividend entirely and rely solely on share repurchases as a means to indirectly return cash to shareholders shows a level of hubris from management. It suggests that management is certain that the business can continue growing over the long haul.
Consider an alternative. If management also paid a small dividend with some of the excess cash allocated for share repurchases, Meta would demonstrate a level of humility. A small dividend would mean that the company (a) realizes how difficult it is to buy back stock in a way that builds shareholder value and (b) acknowledges that there is a small probability of things not going as well as expected.
A view like this might be wise, particularly in light of how a weakness in Meta's business model was exposed starting in late 2021. A change in advertising tracking and measurement on Apple's mobile operating system dealt a substantial blow to the social network specialist's business. This showed how reliant Meta is on other tech platforms, namely Apple's. While the company is working to address this issue, management would be wise to reassess its view that all roads lead to a bigger and more successful Meta years from now.
Ultimately, a regular dividend could help mitigate some of the risk in owning Meta stock. It would put cash in shareholders' hands every quarter while the company dedicates more energy to operations and a bit less to timing stock buybacks. Sure, share repurchases at Meta's stock price today might prove to be a good move in hindsight. But splitting some of the cash it has allocated for a capital return program with dividends would arguably demonstrate enhanced risk management by the company.
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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. Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Apple and Meta Platforms. 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. | But to avoid a dividend entirely and rely solely on share repurchases as a means to indirectly return cash to shareholders shows a level of hubris from management. A change in advertising tracking and measurement on Apple's mobile operating system dealt a substantial blow to the social network specialist's business. While the company is working to address this issue, management would be wise to reassess its view that all roads lead to a bigger and more successful Meta years from now. | A dividend would help mitigate some shareholder risk By choosing to repurchase shares as opposed to paying a dividend, Meta's actions suggest it believes the company's business model is extremely durable. But splitting some of the cash it has allocated for a capital return program with dividends would arguably demonstrate enhanced risk management by the company. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. | With Meta's stock falling to levels below $100 at one point during the fourth quarter of 2022, the company must have bought its stock much more aggressively at that time, right? A dividend would help mitigate some shareholder risk By choosing to repurchase shares as opposed to paying a dividend, Meta's actions suggest it believes the company's business model is extremely durable. See the 10 stocks *Stock Advisor returns as of February 8, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. | Share repurchases can be risky While share repurchases can provide significant shareholder value, they can also destroy value if they are not executed wisely. Meta repurchased less than $7 billion of its stock during the quarter. The Motley Fool has positions in and recommends Apple and Meta Platforms. |
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17038.0 | 2023-02-21 00:00:00 UTC | US STOCKS-Futures fall as Home Depot outlook disappoints | AAPL | https://www.nasdaq.com/articles/us-stocks-futures-fall-as-home-depot-outlook-disappoints | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 0.78%, S&P 0.75%, Nasdaq 0.89%
Feb 21 (Reuters) - U.S. stock index futures fell on Tuesday as fears that interest rates will remain higher for longer gripped traders returning from a long weekend, while disappointing results from Home Depot added to the gloomy mood.
The No. 1 U.S. home improvement chainHD.N dropped 3.8% in premarket trading after its fourth-quarter comparable sales fell short of estimates on higher supply-chain costs and weak demand due to inflation.
Investors will be focusing on retail giant Walmart Inc's WMT.N results due later in the day.
At 6:34 a.m. ET, Dow e-minis 1YMcv1 were down 264 points, or 0.78%, S&P 500 e-minis EScv1 were down 30.75 points, or 0.75%, and Nasdaq 100 e-minis NQcv1 were down 110.25 points, or 0.89%.
The U.S. stock market got a lift this year from its worst annual showing in more than a decade in 2022, as investors were hopeful that the central bank's rate hiking cycle was nearing its end.
However, recent economic data points to a resilient economy with inflation far from the Fed's 2% target, raising bets for two or three more 25 basis point hikes and lower chances of rate cuts at year-end.
Money market participants see the benchmark level peaking to a 5.3% in July, and staying near those levels throughout the year.
Yield on the U.S. benchmark 10-year Treasury note US10YT=TWEB edged higher, in turn pressuring rate-sensitive growth stocks.
Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O fell between 1% and 1.4% in premarket trading as yield on the benchmark 10-year Treasury note climbed. US/
Traders find government bonds as a safe alternative to investments in riskier assets like megacap firms.
In a bright spot, Meta Platforms IncMETA.O added 2.0% after the Facebook parent said it is testing a monthly subscription service called Meta Verified, which will let users verify their accounts using a government ID and get a blue badge.
(Reporting by Johann M Cherian and Medha Singh in Bengaluru; Editing by Saumyadeb Chakrabarty)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O fell between 1% and 1.4% in premarket trading as yield on the benchmark 10-year Treasury note climbed. 1 U.S. home improvement chainHD.N dropped 3.8% in premarket trading after its fourth-quarter comparable sales fell short of estimates on higher supply-chain costs and weak demand due to inflation. The U.S. stock market got a lift this year from its worst annual showing in more than a decade in 2022, as investors were hopeful that the central bank's rate hiking cycle was nearing its end. | Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O fell between 1% and 1.4% in premarket trading as yield on the benchmark 10-year Treasury note climbed. Futures down: Dow 0.78%, S&P 0.75%, Nasdaq 0.89% Feb 21 (Reuters) - U.S. stock index futures fell on Tuesday as fears that interest rates will remain higher for longer gripped traders returning from a long weekend, while disappointing results from Home Depot added to the gloomy mood. ET, Dow e-minis 1YMcv1 were down 264 points, or 0.78%, S&P 500 e-minis EScv1 were down 30.75 points, or 0.75%, and Nasdaq 100 e-minis NQcv1 were down 110.25 points, or 0.89%. | Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O fell between 1% and 1.4% in premarket trading as yield on the benchmark 10-year Treasury note climbed. Futures down: Dow 0.78%, S&P 0.75%, Nasdaq 0.89% Feb 21 (Reuters) - U.S. stock index futures fell on Tuesday as fears that interest rates will remain higher for longer gripped traders returning from a long weekend, while disappointing results from Home Depot added to the gloomy mood. ET, Dow e-minis 1YMcv1 were down 264 points, or 0.78%, S&P 500 e-minis EScv1 were down 30.75 points, or 0.75%, and Nasdaq 100 e-minis NQcv1 were down 110.25 points, or 0.89%. | Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Google-parent Alphabet Inc GOOGL.O fell between 1% and 1.4% in premarket trading as yield on the benchmark 10-year Treasury note climbed. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Futures down: Dow 0.78%, S&P 0.75%, Nasdaq 0.89% Feb 21 (Reuters) - U.S. stock index futures fell on Tuesday as fears that interest rates will remain higher for longer gripped traders returning from a long weekend, while disappointing results from Home Depot added to the gloomy mood. |
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17044.0 | 2023-02-20 00:00:00 UTC | Is Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-goldman-sachs-activebeta-world-low-vol-plus-equity-etf-glov-a-strong-etf-right-now-1 | Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Managed by Goldman Sachs Funds, GLOV has amassed assets over $614.89 million, making it one of the average sized ETFs in the Broad Developed World ETFs. GLOV, before fees and expenses, seeks to match the performance of the GOLDMAN SACHS ACTBT WORLD LW VL PL EQ ID.
The Goldman Sachs ActiveBeta World Low Vol Plus Equity Index delivers exposure to large and mid-capitalization equity securities of developed market issuers, including the United States.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.25% for this ETF, which makes it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.67%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Apple Inc (AAPL) accounts for about 2.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY).
GLOV's top 10 holdings account for about 7.08% of its total assets under management.
Performance and Risk
The ETF has added about 3.66% so far.
With about 387 holdings, it effectively diversifies company-specific risk.
Alternatives
Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares MSCI ACWI ETF (ACWI) tracks MSCI All Country World Index and the Vanguard Total World Stock ETF (VT) tracks FTSE Global All Cap Index. IShares MSCI ACWI ETF has $19.47 billion in assets, Vanguard Total World Stock ETF has $26.47 billion. ACWI has an expense ratio of 0.32% and VT charges 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Developed World ETFs.
Bottom Line
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Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report
iShares MSCI ACWI ETF (ACWI): ETF Research Reports
Vanguard Total World Stock ETF (VT): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | When you look at individual holdings, Apple Inc (AAPL) accounts for about 2.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022. | Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 2.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022. | Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. When you look at individual holdings, Apple Inc (AAPL) accounts for about 2.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022. | When you look at individual holdings, Apple Inc (AAPL) accounts for about 2.49% of the fund's total assets, followed by Microsoft Corp (MSFT) and Oreilly Automotive Inc (ORLY). Click to get this free report Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report iShares MSCI ACWI ETF (ACWI): ETF Research Reports Vanguard Total World Stock ETF (VT): ETF Research Reports To read this article on Zacks.com click here. Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the Goldman Sachs ActiveBeta World Low Vol Plus Equity ETF (GLOV) is a smart beta exchange traded fund launched on 03/15/2022. |
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