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0 | 12,034 | 2023-12-16 18:00:00 UTC | Is FlexShares STOXX US ESG Select Index Fund (ESG) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-flexshares-stoxx-us-esg-select-index-fund-esg-a-strong-etf-right-now-0 | null | null | Making its debut on 07/13/2016, smart beta exchange traded fund FlexShares STOXX US ESG Select Index Fund (ESG) provides investors broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
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.
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.
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.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Because the fund has amassed over $204.22 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Blend. ESG is managed by Flexshares. Before fees and expenses, this particular fund seeks to match the performance of the STOXX USA ESG Impact Index.
The STOXX USA ESG Select KPIs Index is an optimized index designed to provide broad market exposure that is tilted toward U.S. companies that score better with respect to a small set of environmental, social and governance characteristics and to provide the potential for attractive risk-adjusted performance relative to the STOXX USA 900 Index.
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.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.32%.
The fund has a 12-month trailing dividend yield of 1.11%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 25.80% of the portfolio. Financials and Consumer Discretionary round out the top three.
Taking into account individual holdings, Amazon.com Inc Common Stock Usd 0.01 (AMZN) accounts for about 5.14% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp Common Stock Usd 0.00000625 (MSFT).
ESG's top 10 holdings account for about 34.71% of its total assets under management.
Performance and Risk
The ETF return is roughly 26.91% so far this year and is up about 26.91% in the last one year (as of 12/19/2023). In the past 52-week period, it has traded between $90.43 and $115.26.
The fund has a beta of 1.03 and standard deviation of 17.87% for the trailing three-year period. With about 266 holdings, it effectively diversifies company-specific risk.
Alternatives
FlexShares STOXX US ESG Select Index Fund is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) tracks ---------------------------------------- and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. JPMorgan Nasdaq Equity Premium Income ETF has $8.40 billion in assets, iShares ESG Aware MSCI USA ETF has $13.32 billion. JEPQ has an expense ratio of 0.35% 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 Style Box - Large Cap Blend.
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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FlexShares STOXX US ESG Select Index Fund (ESG): 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 USA ETF (ESGU): ETF Research Reports
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): 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. | Taking into account individual holdings, Amazon.com Inc Common Stock Usd 0.01 (AMZN) accounts for about 5.14% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp Common Stock Usd 0.00000625 (MSFT). Click to get this free report FlexShares STOXX US ESG Select Index Fund (ESG): 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 USA ETF (ESGU): ETF Research Reports JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports To read this article on Zacks.com click here. Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results. | Click to get this free report FlexShares STOXX US ESG Select Index Fund (ESG): 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 USA ETF (ESGU): ETF Research Reports JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Amazon.com Inc Common Stock Usd 0.01 (AMZN) accounts for about 5.14% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp Common Stock Usd 0.00000625 (MSFT). Making its debut on 07/13/2016, smart beta exchange traded fund FlexShares STOXX US ESG Select Index Fund (ESG) provides investors broad exposure to the Style Box - Large Cap Blend category of the market. | Click to get this free report FlexShares STOXX US ESG Select Index Fund (ESG): 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 USA ETF (ESGU): ETF Research Reports JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Amazon.com Inc Common Stock Usd 0.01 (AMZN) accounts for about 5.14% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp Common Stock Usd 0.00000625 (MSFT). Making its debut on 07/13/2016, smart beta exchange traded fund FlexShares STOXX US ESG Select Index Fund (ESG) provides investors broad exposure to the Style Box - Large Cap Blend category of the market. | Taking into account individual holdings, Amazon.com Inc Common Stock Usd 0.01 (AMZN) accounts for about 5.14% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp Common Stock Usd 0.00000625 (MSFT). Click to get this free report FlexShares STOXX US ESG Select Index Fund (ESG): 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 USA ETF (ESGU): ETF Research Reports JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports To read this article on Zacks.com click here. Making its debut on 07/13/2016, smart beta exchange traded fund FlexShares STOXX US ESG Select Index Fund (ESG) provides investors broad exposure to the Style Box - Large Cap Blend category of the market. |
1 | 12,068 | 2023-12-15 00:00:00 UTC | Guru Fundamental Report for AAPL | AAPL | https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-28 | null | null | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. |
2 | 12,072 | 2023-12-14 00:00:00 UTC | 2 Hot Warren Buffett Stocks That Raised Their Dividends This Year | AAPL | https://www.nasdaq.com/articles/2-hot-warren-buffett-stocks-that-raised-their-dividends-this-year | null | null | The equity portfolio of Warren Buffett's investment vehicle Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) is larger than the gross domestic products of many small countries. So you can imagine the rivers of dividend payments the portfolio takes in on an annual basis.
This year has been quite a gusher in that respect for Berkshire, as two of the portfolio's largest holdings declared dividend raises. Let's dig into the payout enhancements from those two big-name companies, Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC).
1. Apple
Of the two companies, Apple was the first to crank its distribution higher. It declared a 4% dividend raise in May, which pushed the quarterly payout to $0.24 per share. This doesn't exactly make it a high yielder at 0.5% based on the latest stock price.
Regardless, Apple is a cornerstone investment in Berkshire's stock portfolio, to the point where the tech giant comprises a whopping 49% of it. All told, the Berkshire Apple position is worth more than $178 billion at the current share price.
With that kind of commitment, you can bet that Buffett and company are among Apple's most significant and committed bulls. That belief in the company is paying off with the increased dividends -- the May raise marked the 11th year in a row it has upped the payout.
That low yield aside, in other ways Apple has been showing the characteristics of a mature dividend stock with modest growth (or even slight declines, as the company has reported in recent quarters).
Yet the foundational iPhone, now in its 15th (!) iteration, continues to be a hot seller, and services revenue keeps climbing to new highs. Meanwhile, as ever, management is doing a good job of keeping up those comparatively quite lofty net margins (26% in the most recently reported quarter).
We should never thoughtlessly copy the moves of a popular investor or portfolio manager. But Apple is a strong company that generates geysers of cash, and is happy to return a bit of it to its investors.
2. Bank of America
Any guesses as to which storied lender has the second-highest weighting in Berkshire's hallowed equity portfolio? Correct! It's Bank of America (NYSE: BAC), which comprises just under 9% of the total. After the Federal Reserve's recent set of (broadly quite successful) bank stress tests, Bank of America declared a dividend raise of 9%, to $0.24 per share per quarterly distribution. These days, that yields 3%.
The health of a bank is due to prudent management, of course, but it also depends rather heavily on the health of its economy.
Yes, Americans remain worried about inflation eating into their paychecks, but for the most part growth continues to be in the cards. When an economy is thriving, business and individual confidence tend to rise, and those entities are inclined to borrow more money. That, of course, is the core activity of traditional banks.
As a highly visible lender in the U.S., Bank of America has been reaping the benefits of being a major operator in the economy.
In its latest reported quarter, the company managed to increase both its loans and leases outstanding and its credit/debit card spend by around 3% from a year earlier. Not coincidentally, total revenue also advanced by that figure. Combined with increased efficiency engineered by a good management team, net income rose at a sturdy 10% clip.
Meanwhile, within the bank's results were some very encouraging developments. For example, it managed to increase its count of relationships in the lucrative global wealth and investment management segment by 20%. And its global markets division produced 8% growth in securities sales and trading revenue.
As long as the U.S. economy is more or less humming along, Bank of America should continue to do well. And Buffett and his team will continue to own plenty of it.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Let's dig into the payout enhancements from those two big-name companies, Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC). That low yield aside, in other ways Apple has been showing the characteristics of a mature dividend stock with modest growth (or even slight declines, as the company has reported in recent quarters). In its latest reported quarter, the company managed to increase both its loans and leases outstanding and its credit/debit card spend by around 3% from a year earlier. | Let's dig into the payout enhancements from those two big-name companies, Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC). The equity portfolio of Warren Buffett's investment vehicle Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) is larger than the gross domestic products of many small countries. After the Federal Reserve's recent set of (broadly quite successful) bank stress tests, Bank of America declared a dividend raise of 9%, to $0.24 per share per quarterly distribution. | Let's dig into the payout enhancements from those two big-name companies, Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC). After the Federal Reserve's recent set of (broadly quite successful) bank stress tests, Bank of America declared a dividend raise of 9%, to $0.24 per share per quarterly distribution. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. | Let's dig into the payout enhancements from those two big-name companies, Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC). As long as the U.S. economy is more or less humming along, Bank of America should continue to do well. And Buffett and his team will continue to own plenty of it. |
3 | 12,092 | 2023-12-13 00:00:00 UTC | Technology Sector Update for 12/14/2023: ADBE, MVIS, AAPL, GOOG | AAPL | https://www.nasdaq.com/articles/technology-sector-update-for-12-14-2023%3A-adbe-mvis-aapl-goog | null | null | Tech stocks were mixed Thursday afternoon with the Technology Select Sector SPDR Fund (XLK) decreasing 0.6% and the SPDR S&P Semiconductor ETF (XSD) climbing 3%.
The Philadelphia Semiconductor index rose 2.1%.
In corporate news, Adobe (ADBE) shares tumbled 6.5%, a day after fiscal 2024 revenue guidance disappointed investors.
MicroVision (MVIS) rose 1.9% after the company said it expects its 2023 revenue to be near the top end of its previous forecast of $6.5 million to $8 million.
Apple (AAPL) and Alphabet's (GOOG) Google were asked by the European Commission to provide information on risk-mitigation measures on their app stores, the EU's executive arm said Thursday. Apple fell 0.5%, and Alphabet dropped 1.9%.
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) and Alphabet's (GOOG) Google were asked by the European Commission to provide information on risk-mitigation measures on their app stores, the EU's executive arm said Thursday. Tech stocks were mixed Thursday afternoon with the Technology Select Sector SPDR Fund (XLK) decreasing 0.6% and the SPDR S&P Semiconductor ETF (XSD) climbing 3%. In corporate news, Adobe (ADBE) shares tumbled 6.5%, a day after fiscal 2024 revenue guidance disappointed investors. | Apple (AAPL) and Alphabet's (GOOG) Google were asked by the European Commission to provide information on risk-mitigation measures on their app stores, the EU's executive arm said Thursday. The Philadelphia Semiconductor index rose 2.1%. MicroVision (MVIS) rose 1.9% after the company said it expects its 2023 revenue to be near the top end of its previous forecast of $6.5 million to $8 million. | Apple (AAPL) and Alphabet's (GOOG) Google were asked by the European Commission to provide information on risk-mitigation measures on their app stores, the EU's executive arm said Thursday. Tech stocks were mixed Thursday afternoon with the Technology Select Sector SPDR Fund (XLK) decreasing 0.6% and the SPDR S&P Semiconductor ETF (XSD) climbing 3%. MicroVision (MVIS) rose 1.9% after the company said it expects its 2023 revenue to be near the top end of its previous forecast of $6.5 million to $8 million. | Apple (AAPL) and Alphabet's (GOOG) Google were asked by the European Commission to provide information on risk-mitigation measures on their app stores, the EU's executive arm said Thursday. Tech stocks were mixed Thursday afternoon with the Technology Select Sector SPDR Fund (XLK) decreasing 0.6% and the SPDR S&P Semiconductor ETF (XSD) climbing 3%. The Philadelphia Semiconductor index rose 2.1%. |
4 | 12,138 | 2023-12-12 00:00:00 UTC | Up 149% YTD, How High Can Roku (NASDAQ:ROKU) Stock Go in 2024? | AAPL | https://www.nasdaq.com/articles/up-149-ytd-how-high-can-roku-nasdaq%3Aroku-stock-go-in-2024 | null | null | Media streaming company Roku’s (NASDAQ:ROKU) impressive third-quarter performance has fueled its stock price, driving it up by 149% year-to-date, outperforming the S&P 500’s (SPX) gain of 22%. Roku's revenue growth has begun to pick up again. Furthermore, the advertising market's recovery could be beneficial to Roku in the short term. However, I believe it could take a few more years for Roku to be profitable, which is why I'm currently bearish on ROKU stock.
Roku’s Q3 Performance Fueled Its Stock Price Performance
Roku is a television streaming platform whose affordability, ease of use, and vast content library have made it a household name. In its recent third quarter, active accounts grew to 75.8 million globally compared to 65.4 million in the prior-year quarter. Plus, global streaming hours on the platform increased by 22% year-over-year in Q3.
What sets Roku apart is its ecosystem, which includes both hardware and software elements. Roku's hardware includes a range of streaming devices that fall under its Devices segment. Thanks to its new Roku-branded televisions, Devices revenue jumped 33% year-over-year to $125.2 million in Q3.
Meanwhile, the Platform segment revenue, generated from content distribution and video advertising, also increased by 18% to $786.8 million from the prior-year quarter.
Roku’s stock price performance this year can be attributed to its strong revenue growth, which came in at 20% year-over-year, reaching $912 million, surpassing the consensus estimate of $857 million.
Profitability is Still a Long Shot
While revenue growth has been impressive, it has not been sufficient to propel the company to profitability. However, Roku is making progress, reporting a positive adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $43.4 million for the first time in the quarter.
In an 8-K filing in September, Roku announced that it was undertaking some drastic cost-cutting strategies this year. The goal is to bring down its “year-over-year operating expense growth rate by consolidating its office space utilization, performing a strategic review of its content portfolio, reducing outside services expenses, and slowing its year-over-year headcount expense growth rate through a workforce reduction and limiting new hires, among other measures.”
Strong revenue growth and cost reductions contributed to a positive EBITDA in the third quarter, according to the company. Furthermore, Roku expects the rebound in video ads to continue in Q4, predicting $955 million in revenue for the quarter. Management also stated, “We will continue to operate our business with discipline to defend margins, with a focus on driving positive free cash flow over time.”
Meanwhile, analysts foresee Q4 revenue to be around $966 million, and Roku’s full-year 2023 revenue is expected to increase by 9.8% year-over-year to $3.43 billion.
The competition in the streaming space is heating up. Roku's ability to be profitable in the coming years will be determined by how well it maintains and grows its user base while effectively reducing costs and monetizing its platform.
Is ROKU Stock a Buy, According to Analysts?
Overall, ROKU stock has earned a Moderate Buy consensus rating on TipRanks based on analyst ratings. Recently, Wedbush analyst Alicia Reese raised ROKU stock's price target, citing the possibility that the company's initiatives will result in higher revenue growth and consistent earnings in the long run. The analyst has a Buy rating on the stock.
Meanwhile, Citi analyst Jason Bazinet maintained his Hold rating on the stock, stating that while Roku's financial metrics may improve, the company's long-term outlook remains uncertain.
Out of the 23 analysts covering the stock, eight rate it a Buy, 13 rate it a Hold, and two rate the stock a Sell. ROKU has soared following its third-quarter results, surpassing its average price target of $87.84.
ROKU's high target price of $120, on the other hand, indicates upside potential of 18% in the next 12 months.
Since Roku is not profitable, it can be valued only based on its sales. Based on its estimated revenue growth of 11.8% to $3.84 billion in 2024, Roku is priced at a reasonable forward price-to-sales (P/S) ratio of 3.8, lower than its historical average of 10.8. Roku is also valued cheaper than its bigger competitors in the industry, Netflix (NASDAQ:NFLX) and Apple (NASADAQ:AAPL), which have forward P/S ratios of 5.2 and 7.1, respectively.
The Bottom Line on Roku
Despite the ongoing increase in streaming demand, it has notably declined from the peak levels experienced during the pandemic, as people are spending less time at home. While Roku is reasonably valued for a growth stock, it may be a few years before the company sees green in its bottom line. Until it is profitable, I will be steering clear of Roku.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Roku is also valued cheaper than its bigger competitors in the industry, Netflix (NASDAQ:NFLX) and Apple (NASADAQ:AAPL), which have forward P/S ratios of 5.2 and 7.1, respectively. Recently, Wedbush analyst Alicia Reese raised ROKU stock's price target, citing the possibility that the company's initiatives will result in higher revenue growth and consistent earnings in the long run. Meanwhile, Citi analyst Jason Bazinet maintained his Hold rating on the stock, stating that while Roku's financial metrics may improve, the company's long-term outlook remains uncertain. | Roku is also valued cheaper than its bigger competitors in the industry, Netflix (NASDAQ:NFLX) and Apple (NASADAQ:AAPL), which have forward P/S ratios of 5.2 and 7.1, respectively. Media streaming company Roku’s (NASDAQ:ROKU) impressive third-quarter performance has fueled its stock price, driving it up by 149% year-to-date, outperforming the S&P 500’s (SPX) gain of 22%. Roku’s Q3 Performance Fueled Its Stock Price Performance Roku is a television streaming platform whose affordability, ease of use, and vast content library have made it a household name. | Roku is also valued cheaper than its bigger competitors in the industry, Netflix (NASDAQ:NFLX) and Apple (NASADAQ:AAPL), which have forward P/S ratios of 5.2 and 7.1, respectively. Media streaming company Roku’s (NASDAQ:ROKU) impressive third-quarter performance has fueled its stock price, driving it up by 149% year-to-date, outperforming the S&P 500’s (SPX) gain of 22%. Roku’s Q3 Performance Fueled Its Stock Price Performance Roku is a television streaming platform whose affordability, ease of use, and vast content library have made it a household name. | Roku is also valued cheaper than its bigger competitors in the industry, Netflix (NASDAQ:NFLX) and Apple (NASADAQ:AAPL), which have forward P/S ratios of 5.2 and 7.1, respectively. However, I believe it could take a few more years for Roku to be profitable, which is why I'm currently bearish on ROKU stock. Roku’s stock price performance this year can be attributed to its strong revenue growth, which came in at 20% year-over-year, reaching $912 million, surpassing the consensus estimate of $857 million. |
5 | 12,158 | 2023-12-11 00:00:00 UTC | Australia's central bank aims at broad reform for payments systems | AAPL | https://www.nasdaq.com/articles/australias-central-bank-aims-at-broad-reform-for-payments-systems | null | null | SYDNEY, Dec 12 (Reuters) - Australia's central bank is considering a slate of new regulations for the payments system to open up the use of mobile wallets, make costs more transparent and allow retailers to put surcharges on buy-now-pay-later services.
In a speech on Friday, Reserve Bank of Australia (RBA) Governor Michele Bullock also outlined efforts to support the struggling business of moving cash around the country and plans to modernise the direct entry system used for salaries and welfare payments which will involve much investment by banks.
The Australian government is greatly expanding the RBA's regulatory power over the payments system, particularly for mobile wallet services offered by the likes of Apple AAPL.O and Google GOOG.O.
Bullock said the powers should be in place sometime next year, allowing the RBA to launch a broad review of the retail payments system.
"Usage of mobile wallets has grown rapidly, but the costs associated with these services remain opaque and payment service providers can face barriers to access," she added. "We will need to consider whether regulatory action is needed in this area."
It will also consider formal regulation to allow retailers to place surcharges on BNPL services, much as they do on credit cards.
Regulation might also be needed to ensure retailers have access to least-cost routing, which financial institutions have been slow to roll out, Bullock said.
The RBA will continue its work on a central bank digital currency (CBDC) and is planning a project to examine how different forms of digital money and infrastructure could support the development of tokenised asset markets in Australia.
It will also support the transition from the venerable Bulk Electronic Clearing System (BECS) to the New Payments Platform (NPP), while expanding the NPP's use for cross-border transactions.
Bullock noted that financial institutions would need to connect to the NPP all relevant accounts that currently send and receive payments via BECS, which processes around three-quarters of non-cash payments by value and is heavily relied on by many businesses and government agencies.
"Completing this will take considerable investment and time," Bullock said. "It is important that work begins now to ensure that end users are not disrupted when BECS is retire."
(Reporting by Wayne Cole; Editing by Richard Chang)
(([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. | The Australian government is greatly expanding the RBA's regulatory power over the payments system, particularly for mobile wallet services offered by the likes of Apple AAPL.O and Google GOOG.O. SYDNEY, Dec 12 (Reuters) - Australia's central bank is considering a slate of new regulations for the payments system to open up the use of mobile wallets, make costs more transparent and allow retailers to put surcharges on buy-now-pay-later services. Bullock said the powers should be in place sometime next year, allowing the RBA to launch a broad review of the retail payments system. | The Australian government is greatly expanding the RBA's regulatory power over the payments system, particularly for mobile wallet services offered by the likes of Apple AAPL.O and Google GOOG.O. SYDNEY, Dec 12 (Reuters) - Australia's central bank is considering a slate of new regulations for the payments system to open up the use of mobile wallets, make costs more transparent and allow retailers to put surcharges on buy-now-pay-later services. Bullock said the powers should be in place sometime next year, allowing the RBA to launch a broad review of the retail payments system. | The Australian government is greatly expanding the RBA's regulatory power over the payments system, particularly for mobile wallet services offered by the likes of Apple AAPL.O and Google GOOG.O. SYDNEY, Dec 12 (Reuters) - Australia's central bank is considering a slate of new regulations for the payments system to open up the use of mobile wallets, make costs more transparent and allow retailers to put surcharges on buy-now-pay-later services. In a speech on Friday, Reserve Bank of Australia (RBA) Governor Michele Bullock also outlined efforts to support the struggling business of moving cash around the country and plans to modernise the direct entry system used for salaries and welfare payments which will involve much investment by banks. | The Australian government is greatly expanding the RBA's regulatory power over the payments system, particularly for mobile wallet services offered by the likes of Apple AAPL.O and Google GOOG.O. SYDNEY, Dec 12 (Reuters) - Australia's central bank is considering a slate of new regulations for the payments system to open up the use of mobile wallets, make costs more transparent and allow retailers to put surcharges on buy-now-pay-later services. Bullock noted that financial institutions would need to connect to the NPP all relevant accounts that currently send and receive payments via BECS, which processes around three-quarters of non-cash payments by value and is heavily relied on by many businesses and government agencies. |
6 | 12,181 | 2023-12-10 00:00:00 UTC | A Bull Market Is Coming: 3 Top Stocks to Buy Before the End of the Year | AAPL | https://www.nasdaq.com/articles/a-bull-market-is-coming%3A-3-top-stocks-to-buy-before-the-end-of-the-year | null | null | Last year, the three major indexes slipped into bear territory, and ever since, the question on everyone's mind has been this: When will the next bull market start? That's impossible to answer, even in a rising market such as the one we've known this year. To officially declare a bull market from this point, indexes must reach a new high. And that hasn't happened yet.
So, how can we be so sure a bull market is on the way? Because history shows us bear environments always lead to these periods of expansion. It's just a matter of time. And while we wait, we can prepare by buying stocks that generally excel in a strong market environment. So, as you get your portfolio ready for the new investing year, here are three top stocks to buy -- to position yourself for a potential bull market win.
Image source: Getty Images.
1. Shopify
Even if you've never heard of Shopify (NYSE: SHOP), you probably have contact with the company on a daily basis. That's because Shopify helps many of your favorite e-commerce companies operate their online stores -- providing a variety of services from creating the website to tracking sales and managing inventory.
Shopify generates revenue in part through services to these clients -- including payment processing fees. So, when clients' revenue climbs, this is great news for Shopify. Most recently, Shopify said its merchants' Black Friday-Cyber Monday sales reached a record high of more than $9 billion. It's also important to note that Shopify is the e-commerce software market leader, with 28% share, according to Statista.
The e-commerce giant has demonstrated a solid growth track record, and in the most recent quarter gave us reason to believe the growth will continue. Revenue and gross profit advanced in the double digits, and the company was free cash flow positive for the fourth straight quarter.
Though Shopify has soared about 100% this year, there's still plenty of room for this stock to rise over the long term -- and especially in a bull market.
2. Etsy
If you're shopping for gifts these days, you may have stumbled across Etsy (NASDAQ: ETSY), a seller of handmade items. But one of the biggest Etsy deals may actually be Etsy stock.
Here's why. First, this company's capital light structure means it doesn't have to invest heavily to grow its business. For example, Etsy sellers run their own shops and take care of stocking and shipping their wares -- so Etsy doesn't have to invest in storage and transport. This capital light structure makes it possible for Etsy to transform 90% of its adjusted EBITDA into free cash flow.
Second, Etsy has managed to keep customers coming back even through tough economic times. This year, habitual customers stabilized at 7 million, and active customers reached a record high of 92 million. The loyalty of customers offers us reason to be confident about future revenue. I also like the fact that Etsy is profitable and has about $1.1 billion in cash.
Meanwhile, the shares trade for 16 times forward earnings estimates, which looks dirt cheap for this solid e-commerce player.
3. Apple
Apple (NASDAQ: AAPL) has a growth track record that speaks for itself. The company has increased key financial metrics, such as earnings and return on invested capital, over time.
AAPL Revenue (Annual) data by YCharts
This is thanks to top products such as the iPhone and Apple Watch, but recently, another area has stood out. And that's services. Now that Apple has built up such a huge user base, it can keep the revenue flowing in by selling services to them. That's exactly what the company has been doing, and it may just be Apple's next big growth driver.
By services, I mean anything from digital content to cloud storage. In the most recent quarter, services revenue reached a record high -- and this momentum is likely to continue thanks to more than 1 billion paid subscriptions.
Apple has what it takes to perform in bear markets and bull markets due to its moat, or competitive advantage. And Apple's moat is its brand strength, with most buyers of Apple products eagerly waiting for the next iPhone or Mac. But, clearly, in a strong market environment, Apple's earnings and shares can truly thrive, making it a top bull market buy.
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Etsy, and Shopify. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AAPL Revenue (Annual) data by YCharts This is thanks to top products such as the iPhone and Apple Watch, but recently, another area has stood out. Apple Apple (NASDAQ: AAPL) has a growth track record that speaks for itself. That's because Shopify helps many of your favorite e-commerce companies operate their online stores -- providing a variety of services from creating the website to tracking sales and managing inventory. | Apple Apple (NASDAQ: AAPL) has a growth track record that speaks for itself. AAPL Revenue (Annual) data by YCharts This is thanks to top products such as the iPhone and Apple Watch, but recently, another area has stood out. In the most recent quarter, services revenue reached a record high -- and this momentum is likely to continue thanks to more than 1 billion paid subscriptions. | Apple Apple (NASDAQ: AAPL) has a growth track record that speaks for itself. AAPL Revenue (Annual) data by YCharts This is thanks to top products such as the iPhone and Apple Watch, but recently, another area has stood out. So, as you get your portfolio ready for the new investing year, here are three top stocks to buy -- to position yourself for a potential bull market win. | Apple Apple (NASDAQ: AAPL) has a growth track record that speaks for itself. AAPL Revenue (Annual) data by YCharts This is thanks to top products such as the iPhone and Apple Watch, but recently, another area has stood out. For example, Etsy sellers run their own shops and take care of stocking and shipping their wares -- so Etsy doesn't have to invest in storage and transport. |
7 | 12,185 | 2023-12-09 00:00:00 UTC | This Is the Most Important AI Company You've Never Heard Of | AAPL | https://www.nasdaq.com/articles/this-is-the-most-important-ai-company-youve-never-heard-of | null | null | Artificial intelligence (AI) is the talk of the market, and a handful of stocks, like Nvidia (NASDAQ: NVDA) and Microsoft (NASDAQ: MSFT), have jumped on the year's AI developments. But there's one company that's more critical to AI than you might think.
In this video, Travis Hoium covers Taiwan Semiconductor's (NYSE: TSM) role in the industry and shows why it's one of the safer ways to play AI development today.
*Stock prices used were end-of-day prices of Dec. 6, 2023. The video was published on Dec. 8, 2023.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In this video, Travis Hoium covers Taiwan Semiconductor's (NYSE: TSM) role in the industry and shows why it's one of the safer ways to play AI development today. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends 10x Genomics, Amazon, Apple, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. | Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Taiwan Semiconductor Manufacturing wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends 10x Genomics, Amazon, Apple, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. | Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Taiwan Semiconductor Manufacturing wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends 10x Genomics, Amazon, Apple, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. | In this video, Travis Hoium covers Taiwan Semiconductor's (NYSE: TSM) role in the industry and shows why it's one of the safer ways to play AI development today. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. The Motley Fool has positions in and recommends 10x Genomics, Amazon, Apple, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. |
8 | 12,193 | 2023-12-08 00:00:00 UTC | Validea Detailed Fundamental Analysis - AAPL | AAPL | https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-aapl-11 | null | null | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. |
9 | 12,214 | 2023-12-07 00:00:00 UTC | AAPL Stock Outlook : Don’t Be Scared by the Noise | AAPL | https://www.nasdaq.com/articles/aapl-stock-outlook-%3A-dont-be-scared-by-the-noise | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Year-to-date, Apple (NASDAQ:AAPL) stock has risen an impressive 54%. At the same time, it missed expectations and its revenue contracted almost 3% in FY 2023, similarly along with free cash flow and net income. Since 2021, growth has stalled, while operating expenses from R&D have increased, leading many to worry about the future of AAPL stock as R&D expenses grow faster than revenue.
Despite slowing growth, it trades at a P/E ratio of 30.9x compared to the S&Ps 25.24x, over a 22% premium. However, Apple has some key fundamentals that will likely see it continue to be a cash cow in the future.
AAPL Stock and Gen Z
First, it’s a fact that Apple has a firm grip on Gen Z, with 87% saying that they own an iPhone. This isn’t just true for the United States, it’s a trend that is spreading worldwide.
In South Korea, where the most common device is Samsung, only 23% of its population uses an iPhone. However, 52% of people 18-29 own an iPhone. This grew from 44% in just two years. Meanwhile, Samsung’s overall market share has shrunk from 44% to 45%. Globalization will attract more youth to Apple.
Services Are Impressive
Apple’s services segment has grown an impressive 16.3% YoY. Because the services segment is software and inherently high-margin, it has pushed Apple’s overall margin up from 41.8% in 2021 to 44.1% in 2023.
In this time, services have grown to comprise over 35% of the revenue compared to 31%. If this trend continues, margins will continue to improve.
Furthermore, the installed base has continued to grow, providing a steady stream of potential. Since 2018, the installed base has been growing at an average rate of 27% a year. Meanwhile, the percentage of subscribers per installed base has also increased, from roughly 0.18 subscribers per device to 0.5 subscribers per device.
In the future, AI could be a major boost to services revenue. Microsoft’s AI assistant could see $14 billion alone in revenue, with just a 10% take rate of 382 million users. With Apple having access to 2 billion devices, its planned AI rollout will see more usage and could be a major revenue driver.
Dividends and Buybacks
With Apple’s stability in generating cash flow and track record in raising dividends and buying back shares, the stock remains a good long-term investment.
Its 5-year dividend yield is 6.15%, and in the past decade, it has spent almost $600 billion in buying back stores, more than any other U.S. company.
Investors will be rewarded with dividends and buybacks due to the company’s cost control and solid fundamentals.
Valuation
The elephant in the room remains Apple’s valuation and a big reason many are bearish on Apple stock. Looking at its total enterprise value to revenue, it currently trades at 7.59x, just below its all-time high of 8.52x.
For people with a short time horizon, this might mean that Apple’s stock could be risky. The stock’s fundamentals are solid and the business is expected to continue growing with AI integration and attractive software margins.
In addition, Apple’s valuation has lifted as the threat of rising rates has dropped substantially, with inflation cooling. The favorable macro environment, AI applications, and improvement in margins justify Apple’s valuation.
Conclusion
Overall, Apple remains a powerhouse and the device of future generations. Though its valuation seems high, it’s not completely unreasonable. The late Warren Buffet famously advised to buy good businesses at a fair price, and Apple continues to be a good business worthy of holding long term.
Disclaimer: On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.
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The post AAPL Stock Outlook : Don’t Be Scared by the Noise appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post AAPL Stock Outlook : Don’t Be Scared by the Noise appeared first on InvestorPlace. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Year-to-date, Apple (NASDAQ:AAPL) stock has risen an impressive 54%. Since 2021, growth has stalled, while operating expenses from R&D have increased, leading many to worry about the future of AAPL stock as R&D expenses grow faster than revenue. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Year-to-date, Apple (NASDAQ:AAPL) stock has risen an impressive 54%. Since 2021, growth has stalled, while operating expenses from R&D have increased, leading many to worry about the future of AAPL stock as R&D expenses grow faster than revenue. AAPL Stock and Gen Z First, it’s a fact that Apple has a firm grip on Gen Z, with 87% saying that they own an iPhone. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Year-to-date, Apple (NASDAQ:AAPL) stock has risen an impressive 54%. Since 2021, growth has stalled, while operating expenses from R&D have increased, leading many to worry about the future of AAPL stock as R&D expenses grow faster than revenue. AAPL Stock and Gen Z First, it’s a fact that Apple has a firm grip on Gen Z, with 87% saying that they own an iPhone. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Year-to-date, Apple (NASDAQ:AAPL) stock has risen an impressive 54%. Since 2021, growth has stalled, while operating expenses from R&D have increased, leading many to worry about the future of AAPL stock as R&D expenses grow faster than revenue. AAPL Stock and Gen Z First, it’s a fact that Apple has a firm grip on Gen Z, with 87% saying that they own an iPhone. |
10 | 12,228 | 2023-12-06 00:00:00 UTC | Decoding Apple’s Stock Trajectory: Time to Buy, Hold, or Sell AAPL? | AAPL | https://www.nasdaq.com/articles/decoding-apples-stock-trajectory%3A-time-to-buy-hold-or-sell-aapl | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Like other “Magnificent Seven” stocks, Apple (NASDAQ:AAPL) shares rallied during November. During the month, AAPL stock rose from $171 to around $190 per share, representing around an 11% increase in the span of a few weeks.
Since late last month, however, AAPL’s latest rally has petered out. Shares are now holding steady near the $190 per share price level. Not only that, concerns about a post-rally pullback are rising.
Commentators and investors are again concerned about valuation, and about the tech giant’s future growth prospects. Yet if it seems like that the latest price action/shifting near-term sentiment is a red flag to sell, think otherwise.
Even if shares encounter near-term weakness (which by the way isn’t set in stone), much still points to this “trillion dollar club” member not only eventually re-hitting past all-time highs, but climbing to substantially higher price levels over time. Here’s why.
AAPL Stock and the Return of Fear, Uncertainty, and Doubt
Since Apple shares plateaued in price around Thanksgiving, fear, uncertainty, and doubt (or FUD) has once again come out of the woodwork. Check out recent commentary about the stock, and you’ll see what I mean.
These bearish arguments about AAPL stock are based upon a cut-and-dry premise: Apple’s valuation is far too high, when you compare it to future growth forecasts. On the surface, I can see why some are making this argument. The current trading price of shares in the tech giant is approximately 29 times forward earnings.
According to sell-side forecasts, Apple’s earnings are expected to rise by 6.7% this fiscal year (ending September 2024), with earnings growth re-accelerating to around 8.9% during the following fiscal year. Still, while I agree AAPL is pricey, some of the negative takes out there, including one from a Seeking Alpha commentator suggesting that the 10-Year Treasury will outperform AAPL over the next few years, seem way too pessimistic.
Future appreciation for the iPhone maker’s shares may arrive more gradually in the future than in the past. However, I wouldn’t jump to the conclusion that shares are doomed to not only underperform the broad market, but Treasuries as well.
Solid Returns Are Well Within Reach
Before fully embracing the most negative views on AAPL stock, remember two important factors. For one, although Apple’s valuation is high compared to the market overall, don’t assume that means the company needs to report off-the-charts growth to maintain this valuation.
AAPL’s blue-chip status and strong financials suggest that a high single-digit earnings growth would be enough to sustain a high-20s forward multiple. This suggests that AAPL could keep rising in tandem with earnings growth. Right off the bat, the aforementioned argument that Apple will underperform 10-year Treasuries (currently yielding around 4.23%) seems dubious.
Second, not only could shares outperform Treasuries, outperforming the broad market over the coming years remains well within reach as well. As Wedbush’s Dan Ives recently pointed out, iPhone 15 sales have been off to a good start this holiday season.
There may be strong potential for results during this quarter, and for the full fiscal year, to handily beat current expectations. Looking at a longer time frame, there’s ample opportunity for Apple to report the elevated growth necessary to really kick shares back into high gear.
The Future Remains Bright, as Bearish Arguments Fall Flat
As I’ve pointed out previously, factors like a rebound in iPad and Mac sales, plus continued growth of Apple’s highly-profitable Services unit, suggest results down the road will come in much stronger than currently anticipated.
Apple has yet to really capitalize on the generative AI trend, but as Morgan Stanley analysts pointed out last month, the company stands to benefit tremendously from the rise of so-called “Edge AI,” or integrating artificial intelligence capabilities into hardware and software applications across the board.
Put simply, the future remains bright. A lot points to a long-term growth resurgence for Apple, thanks to existing and emerging catalysts. Bearish arguments fall flat, with some of them appearing very hyperbolic.
If you own AAPL stock, hang on. If you’ve yet to buy, sit tight and pounce on the next round of major weakness.
AAPL stock earns a B rating in Portfolio Grader.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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The post Decoding Apple’s Stock Trajectory: Time to Buy, Hold, or Sell AAPL? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The #1 AI Investment Might Be This Company You’ve Never Heard Of The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors The post Decoding Apple’s Stock Trajectory: Time to Buy, Hold, or Sell AAPL? InvestorPlace - Stock Market News, Stock Advice & Trading Tips Like other “Magnificent Seven” stocks, Apple (NASDAQ:AAPL) shares rallied during November. During the month, AAPL stock rose from $171 to around $190 per share, representing around an 11% increase in the span of a few weeks. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Like other “Magnificent Seven” stocks, Apple (NASDAQ:AAPL) shares rallied during November. AAPL Stock and the Return of Fear, Uncertainty, and Doubt Since Apple shares plateaued in price around Thanksgiving, fear, uncertainty, and doubt (or FUD) has once again come out of the woodwork. During the month, AAPL stock rose from $171 to around $190 per share, representing around an 11% increase in the span of a few weeks. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Like other “Magnificent Seven” stocks, Apple (NASDAQ:AAPL) shares rallied during November. These bearish arguments about AAPL stock are based upon a cut-and-dry premise: Apple’s valuation is far too high, when you compare it to future growth forecasts. During the month, AAPL stock rose from $171 to around $190 per share, representing around an 11% increase in the span of a few weeks. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Like other “Magnificent Seven” stocks, Apple (NASDAQ:AAPL) shares rallied during November. These bearish arguments about AAPL stock are based upon a cut-and-dry premise: Apple’s valuation is far too high, when you compare it to future growth forecasts. This suggests that AAPL could keep rising in tandem with earnings growth. |
11 | 12,250 | 2023-12-05 00:00:00 UTC | What to Expect from the Magnificent Seven Stocks in 2024 | AAPL | https://www.nasdaq.com/articles/what-to-expect-from-the-magnificent-seven-stocks-in-2024 | null | null | I
nvestors don't need to look too far to find the source of the market rally in 2023. It has been driven mostly by the so-called “Magnificent Seven” stocks. Coined by Bank of America analyst Michael Hartnett, the stocks consist of Alphabet (GOOG , GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA).
Some investors who have missed the massive rally in 2023 are wondering whether there is still room for gains in 2024. Year to date, Apple -- the largest of the bunch in terms of market cap — has retuned by 46%, while Microsoft the second largest, boasts an even more impressive gain of 59%. But the impressiveness doesn’t stop there when considering Tesla has doubled in value, while Meta has enjoyed a remarkable return of 180%.
Never missing an opportunity, even the ETF industry has hopped on the bandwagon. In November, the Roundhill Magnificent Seven ETF (MAGS), a portfolio consisting only of exposure to this basket of stocks, debuted on the market. There are a range of opinions as to whether there are value still be gained in these stocks, which have already been stellar performers, but while their collective valuation might have gotten a bit stretched, their leadership in the markets is undeniable.
The reason for their collective popularity, which can’t be overstated, stems from their exposure to high-growth technologies, such as high-end software and hardware, cloud computing and artificial intelligence. These seven stocks have more than doubled the return of the S&P 500 over the past decade. Armed with tons of cash on the balance sheet, strong cash flows and excellent leadership, they are well-positioned to continue leading their respective markets in 2024.
This belief requires an equal level of conviction in the durability of the current bull market, which has seen some doubters emerge lately. Part of their argument stems from what some perceive as limited stock participation in the S&P 500’s rally. For example, the top seven mega-cap technology companies currently account for the lion's share of the S&P 500's weight, or roughly 28%. Leading the way is Apple: the iPhone maker carries a S&P 500 weighting of 7.5%.
Microsoft is next with a weighting of 6.8% after rising to all-time highs. With a weighing of 3.8%, Alphabet is third after rising near 60% from its 52-week low. Rounding out the next four in order are Amazon (up 61% from its low) with a weighting of 3.1%, the aforementioned Nvidia (weight: 2.9%), Tesla (weight: 1.9%) and Meta Platforms (weight: 1.7%).
While these bearish arguments are fair to point out, it’s also worth noting that the Fed is likely done with its aggressive rate hike stance towards battling inflation. After all, rising interest rates is what triggered the bear market in 2022, applying pressure on businesses, forcing high growth names to borrow money at higher rates to fund their operations. Stocks got punished due to lack of liquidity. But the market is forward-looking and although the Fed signaled it is not done with the rate hike cycle, investors should nonetheless position their portfolios to be on the right side of the pivot in 2024, especially amid clearer signs of dampening inflation risk.
Combined with the fact that the recessionary risk is not where it was, it is appearing that this new bull market is here to stay. Armed with tons of cash on the balance sheet, strong cash flows and excellent leadership, the Magnificent Seven are well-positioned them to continue leading their respective markets in 2024. In other words, even as the Magnificent Seven stocks are at a combined market capitalization of more than $10 trillion, there are still many reasons to expect them to keep winning in 2024.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Coined by Bank of America analyst Michael Hartnett, the stocks consist of Alphabet (GOOG , GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA). There are a range of opinions as to whether there are value still be gained in these stocks, which have already been stellar performers, but while their collective valuation might have gotten a bit stretched, their leadership in the markets is undeniable. The reason for their collective popularity, which can’t be overstated, stems from their exposure to high-growth technologies, such as high-end software and hardware, cloud computing and artificial intelligence. | Coined by Bank of America analyst Michael Hartnett, the stocks consist of Alphabet (GOOG , GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA). Armed with tons of cash on the balance sheet, strong cash flows and excellent leadership, they are well-positioned to continue leading their respective markets in 2024. Armed with tons of cash on the balance sheet, strong cash flows and excellent leadership, the Magnificent Seven are well-positioned them to continue leading their respective markets in 2024. | Coined by Bank of America analyst Michael Hartnett, the stocks consist of Alphabet (GOOG , GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA). Rounding out the next four in order are Amazon (up 61% from its low) with a weighting of 3.1%, the aforementioned Nvidia (weight: 2.9%), Tesla (weight: 1.9%) and Meta Platforms (weight: 1.7%). Armed with tons of cash on the balance sheet, strong cash flows and excellent leadership, the Magnificent Seven are well-positioned them to continue leading their respective markets in 2024. | Coined by Bank of America analyst Michael Hartnett, the stocks consist of Alphabet (GOOG , GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA). But the impressiveness doesn’t stop there when considering Tesla has doubled in value, while Meta has enjoyed a remarkable return of 180%. Microsoft is next with a weighting of 6.8% after rising to all-time highs. |
12 | 12,260 | 2023-12-04 00:00:00 UTC | Floods, nine killed as southern India braces for Cyclone Michaung | AAPL | https://www.nasdaq.com/articles/floods-nine-killed-as-southern-india-braces-for-cyclone-michaung | null | null | By Jatindra Dash
BHUBANESHWAR, India, Dec 5 (Reuters) - Heavy rains submerged roads in southern India on Tuesday, where at least nine people, including a child, were killed in the flooding and the havoc hours before a severe cyclone was due to make landfall.
Cyclone Michaung is expected to hit the coast of Andhra Pradesh state around 11 a.m. local time (0530 GMT), the weather office said, gusting in with winds of up to 110 kph (70 mph).
Parts of the state are expected to be pelted with more than 200 mm (8 inches) of rain over the next 24 hours, the weather office said, and at least 8,000 people have been evacuated.
A 4-year-old boy died in Tirupati district after a wall fell, C. Nagaraju, executive director of the state's disaster management authority said, while eight people were killed in neighbouring Tamil Nadu state, officials said.
In Tamil Nadu's capital Chennai, a major electronics and manufacturing hub, floodwaters swept away cars and submerged a runway, triggering the shutdown of one of India's busiest airports until Tuesday morning.
The rains have stopped and water has receded at Chennai airport, and the airfield was operational from 9 a.m. local time, a spokesperson for the federal civil aviation ministry said.
The rains and winds also snapped power lines and uprooted trees, officials said, and more than 140 trains and 40 flights were cancelled in Andhra Pradesh.
Taiwan's Foxconn 2317.TW and Pegatron 4938.TW halted Apple AAPL.O iPhone production at their facilities near Chennai due to heavy rains, sources familiar with the matter said on Monday.
In December 2015, floods in Tamil Nadu killed at least 290 people and caused widespread damage.
(Reporting by Jatindra Dash and Rishika Sadam. Additional reporting by Aditi Shah, Writing by Shilpa Jamkhandikar; Editing by Miral Fahmy and Jacqueline Wong)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Taiwan's Foxconn 2317.TW and Pegatron 4938.TW halted Apple AAPL.O iPhone production at their facilities near Chennai due to heavy rains, sources familiar with the matter said on Monday. Cyclone Michaung is expected to hit the coast of Andhra Pradesh state around 11 a.m. local time (0530 GMT), the weather office said, gusting in with winds of up to 110 kph (70 mph). In Tamil Nadu's capital Chennai, a major electronics and manufacturing hub, floodwaters swept away cars and submerged a runway, triggering the shutdown of one of India's busiest airports until Tuesday morning. | Taiwan's Foxconn 2317.TW and Pegatron 4938.TW halted Apple AAPL.O iPhone production at their facilities near Chennai due to heavy rains, sources familiar with the matter said on Monday. By Jatindra Dash BHUBANESHWAR, India, Dec 5 (Reuters) - Heavy rains submerged roads in southern India on Tuesday, where at least nine people, including a child, were killed in the flooding and the havoc hours before a severe cyclone was due to make landfall. Cyclone Michaung is expected to hit the coast of Andhra Pradesh state around 11 a.m. local time (0530 GMT), the weather office said, gusting in with winds of up to 110 kph (70 mph). | Taiwan's Foxconn 2317.TW and Pegatron 4938.TW halted Apple AAPL.O iPhone production at their facilities near Chennai due to heavy rains, sources familiar with the matter said on Monday. By Jatindra Dash BHUBANESHWAR, India, Dec 5 (Reuters) - Heavy rains submerged roads in southern India on Tuesday, where at least nine people, including a child, were killed in the flooding and the havoc hours before a severe cyclone was due to make landfall. A 4-year-old boy died in Tirupati district after a wall fell, C. Nagaraju, executive director of the state's disaster management authority said, while eight people were killed in neighbouring Tamil Nadu state, officials said. | Taiwan's Foxconn 2317.TW and Pegatron 4938.TW halted Apple AAPL.O iPhone production at their facilities near Chennai due to heavy rains, sources familiar with the matter said on Monday. By Jatindra Dash BHUBANESHWAR, India, Dec 5 (Reuters) - Heavy rains submerged roads in southern India on Tuesday, where at least nine people, including a child, were killed in the flooding and the havoc hours before a severe cyclone was due to make landfall. Cyclone Michaung is expected to hit the coast of Andhra Pradesh state around 11 a.m. local time (0530 GMT), the weather office said, gusting in with winds of up to 110 kph (70 mph). |
13 | 12,293 | 2023-12-03 00:00:00 UTC | Got $2,500? 2 Top Stocks That You Can Buy and Hold for a Lifetime | AAPL | https://www.nasdaq.com/articles/got-%242500-2-top-stocks-that-you-can-buy-and-hold-for-a-lifetime-7 | null | null | Legendary investor Warren Buffett once said that someone is sitting in the shade today because someone planted a tree a long time ago. It's a great quote about long-term thinking, which translates directly to building wealth through investing.
The goal of any long-term investor should be to find great companies and hold them for a lifetime, letting them lift your portfolio for you. However, that's not easy, because so few companies deserve permanent places in your portfolio.
Buffett's Berkshire Hathaway (NYSE: BRK.B) and technology giant Microsoft (NASDAQ: MSFT) might be as strong a long-term bet as you'll find in the market, and you can buy both for under $2,500. Here is what separates them from the pack.
A company led by Earth's greatest long-term investor
Berkshire Hathaway is Buffett's holding company, the crown jewel of his vaunted investing career. The company owns many businesses, brands, and positions in other public companies. Its largest business segments include railroads, oil and gas pipelines, and insurance, while blue-chip stocks like Apple, Bank of America, and Coca-Cola anchor Berkshire's stock portfolio.
Buffett built Berkshire Hathaway in his image, focusing on resilient business models that never go out of style. That's why Berkshire has owned Geico Insurance since 1995, and has held some of its stock holdings since the late 1980s. Buffett also ensures Berkshire is always well-funded; it has more than $157 billion in cash and short-term investments on its balance sheet today.
Berkshire's earnings based on generally accepted accounting principles (GAAP) fluctuate because of how many moving pieces the company has, but owning the stock is as close as you can get to having Buffett invest on your behalf. And the record speaks for itself: Berkshire's book value has exploded, beating the S&P 500 for decades.
Data source: YCharts
Nobody can guarantee the future, but there isn't much reason to doubt Berkshire. Buffett won't be there forever, which may be Berkshire's biggest risk. Still, one would think he's been preparing for the inevitable, instilling a culture that will carry the company after he's gone. Buffett has even handpicked his successor, naming Greg Abel as the company's next chief executive officer.
The technology titan that keeps evolving
Technology giant and personal computing pioneer Microsoft could be the world's most innovative company. It's hard to stay on top in the technology sector because innovation keeps companies on their toes and creates new competition. But not only are Microsoft's legacy products like its Windows operating system still market-leading brands today, the company has penetrated other markets with leading products, including cloud computing, video gaming, and enterprise software.
Added together, these businesses create cash flow like few others on earth. Annual revenue surpasses $218 billion, and $63 billion of that is free cash flow, an impressive 29% conversion rate. Microsoft carries $144 billion in cash and short-term investments against $71.5 billion in long-term debt from acquiring video game company Activision Blizzard. Microsoft's financials are considered so strong that the company has a coveted AAA credit rating from Standard & Poor's, higher than that of the U.S. government!
Microsoft also has long-term growth opportunities lined up. Azure is the world's second-largest cloud platform after Amazon Web Services. Demand for cloud services should explode, and is forecast to more than double to $1.24 trillion by 2028. The company has tied itself up with OpenAI, the artificial intelligence company behind ChatGPT. Despite recent uncertainty, OpenAI positions Microsoft to benefit from AI's future potential.
Data source: YCharts
You can see what successful innovation has done for the company's growth. As long as Microsoft stays aggressive, it's hard to see its fortunes reversing anytime soon. Investors can slowly buy Microsoft stock and sock it away for years. There aren't many companies you can say that about.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Microsoft. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Buffett's Berkshire Hathaway (NYSE: BRK.B) and technology giant Microsoft (NASDAQ: MSFT) might be as strong a long-term bet as you'll find in the market, and you can buy both for under $2,500. Berkshire's earnings based on generally accepted accounting principles (GAAP) fluctuate because of how many moving pieces the company has, but owning the stock is as close as you can get to having Buffett invest on your behalf. Microsoft's financials are considered so strong that the company has a coveted AAA credit rating from Standard & Poor's, higher than that of the U.S. government! | But not only are Microsoft's legacy products like its Windows operating system still market-leading brands today, the company has penetrated other markets with leading products, including cloud computing, video gaming, and enterprise software. Microsoft carries $144 billion in cash and short-term investments against $71.5 billion in long-term debt from acquiring video game company Activision Blizzard. The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Microsoft. | A company led by Earth's greatest long-term investor Berkshire Hathaway is Buffett's holding company, the crown jewel of his vaunted investing career. Berkshire's earnings based on generally accepted accounting principles (GAAP) fluctuate because of how many moving pieces the company has, but owning the stock is as close as you can get to having Buffett invest on your behalf. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company. | The company owns many businesses, brands, and positions in other public companies. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway wasn't one of them! The Motley Fool has positions in and recommends Apple, Bank of America, Berkshire Hathaway, and Microsoft. |
14 | 12,302 | 2023-12-02 00:00:00 UTC | Warren Buffett's Best 3 Artificial Intelligence (AI) Stocks | AAPL | https://www.nasdaq.com/articles/warren-buffetts-best-3-artificial-intelligence-ai-stocks | null | null | Most people don't associate Warren Buffett with tech trends, as he has consistently avoided investing in many new technologies because he says he doesn't understand them. Even though his company owns a lot of Apple, it's a relatively simple business because it's all about selling hardware. While some may snicker at this comment of not investing in tech, few can deny that this approach has worked well for him and Berkshire Hathaway.
Still, that doesn't mean that Buffett doesn't own any stocks associated with artificial intelligence (AI). In fact, there are quite a few in his portfolio. Among them are Amazon (NASDAQ: AMZN), Snowflake (NYSE: SNOW), and Mastercard (NYSE: MA), and each looks like a candidate to be bought now.
AI may not be the first reason these stocks were purchased
Each of these companies uses AI differently than the others.
For Amazon, its usage is twofold. First, it uses AI to make its delivery business more efficient and predict product demand. Second, Amazon Web Services (AWS) is a cloud computing juggernaut, which positions it well as companies use cloud computing to store proprietary data needed for AI models and develop their own. Amazon may not be the most "in your face" AI investment, but it is near the top of the list for companies that will benefit from AI adoption.
Snowflake is more of a straight-line AI investment, as its data cloud software helps its clients store information efficiently and use it to create AI models. Furthermore, clients can sell their datasets on the Snowflake marketplace, which is incredibly useful for developing an AI model if you don't have the raw data. Berkshire Hathaway bought Snowflake stock at its IPO and hasn't sold a share since, showing its confidence in its future.
Finally, Mastercard, the credit card giant, deploys AI to prevent fraud and safeguard transactions. Now, Mastercard is expanding its consulting practice, which uses its economic data to analyze purchases from all over the globe. AI is invaluable for retailers and can deliver real-time insights, allowing clients to adjust their strategies faster than ever before.
All three companies have legitimate investment cases as AI companies but are also devoted to their primary missions. This makes them great investments as they are less likely to get caught up in the AI hype.
Still, Berkshire is a relatively small shareholder in these businesses as Amazon, Snowflake, and Mastercard only make up 0.4%, 0.3%, and 0.5% of its investing portfolio, respectively. But that doesn't mean they or you can't purchase shares at a moment's notice.
Each looks like a buy right now
Each of these companies is in a different phase. Mastercard is the most mature and has developed its margins to near-optimized levels. Amazon is in a transitional phase of optimizing for profits, and Snowflake is still in a growth-at-all-costs mindset, which causes it to be deeply unprofitable. As a result, each of these companies needs to be examined using a slightly different metric.
For Mastercard, I'll use its price-to-earnings (P/E) ratio, as we have strong historical data of its usual trading range.
MA PE Ratio data by YCharts.
Mastercard has often fetched a premium price (and it still does), but right now, it is near the cheapest you've been able to purchase the stock since 2018 (besides a few momentary dips).
Amazon is nearing full-term profitability, so I'll use the forward P/E ratio.
AMZN PE Ratio (Forward 1y) data by YCharts.
A valuation of 43 times 2024 earnings isn't a cheap price to pay, but those are analyst estimates that can be wrong. AWS is a sleeping giant that will benefit tremendously from AI investment, and its improving margin picture will continue to make Amazon an attractive stock. While it's likely too expensive for Berkshire's taste, I think it's still a fair price.
Last is Snowflake, whose price-to-sales ratio is quite expensive.
SNOW PS Ratio data by YCharts.
Because Snowflake has placed itself into a lucrative opportunity, investors have bid up the stock drastically in expectation of future performance. There's no sugarcoating it; Snowflake stock is incredibly expensive, but if it's as vital to AI as many think, the price you pay today will be worth it years later.
While Buffett may not be known as an AI investor, his portfolio indicates otherwise. All three stocks are solid picks, and investors should be willing to purchase them at today's prices.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keithen Drury has positions in Amazon, Mastercard, and Snowflake. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, Mastercard, and Snowflake. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Furthermore, clients can sell their datasets on the Snowflake marketplace, which is incredibly useful for developing an AI model if you don't have the raw data. Berkshire Hathaway bought Snowflake stock at its IPO and hasn't sold a share since, showing its confidence in its future. AWS is a sleeping giant that will benefit tremendously from AI investment, and its improving margin picture will continue to make Amazon an attractive stock. | Among them are Amazon (NASDAQ: AMZN), Snowflake (NYSE: SNOW), and Mastercard (NYSE: MA), and each looks like a candidate to be bought now. Second, Amazon Web Services (AWS) is a cloud computing juggernaut, which positions it well as companies use cloud computing to store proprietary data needed for AI models and develop their own. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, Mastercard, and Snowflake. | AI may not be the first reason these stocks were purchased Each of these companies uses AI differently than the others. Amazon may not be the most "in your face" AI investment, but it is near the top of the list for companies that will benefit from AI adoption. Snowflake is more of a straight-line AI investment, as its data cloud software helps its clients store information efficiently and use it to create AI models. | Still, Berkshire is a relatively small shareholder in these businesses as Amazon, Snowflake, and Mastercard only make up 0.4%, 0.3%, and 0.5% of its investing portfolio, respectively. Each looks like a buy right now Each of these companies is in a different phase. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, Mastercard, and Snowflake. |
15 | 12,313 | 2023-12-01 00:00:00 UTC | Looking for Income? These 3 Unusually Active Options Should Generate Income Over the Next 7 Days | AAPL | https://www.nasdaq.com/articles/looking-for-income-these-3-unusually-active-options-should-generate-income-over-the-next-7 | null | null | The S&P 500 gained 8.9% in November, the second-best November performance since 1980. Only November 2020 did better. The penultimate month of the year is starting to look like a sure-fire winner. In the past decade, the index has finished in negative territory on just one occasion, in 2021.
The Federal Reserve is expected to leave interest rates alone when it meets for the last time in 2023 on Dec. 13. That should be good for stocks in December, prompting many to suggest that a Santa rally is here and could continue for weeks.
However, PNC Asset Management Group chief investment officer Amanda Agati told Yahoo Finance on Tuesday that a Santa Claus rally is unlikely.
“I think what we're left with is a bit of a rangebound kind of choppy market from here through year-end,” Agati said.
So, with uncertainty about the markets’ momentum, it might be time to look for a few income plays heading into December. These three unusually active options from Thursday should help get you started.
Have an excellent weekend!
Snowflake
Snowflake (SNOW) stock gained more than 26% over the past month. The data-as-a-service (DaaS) cloud computing company is now up 35% year-to-date, with one left in the year before closing the books on 2023 trading.
Although I wouldn’t sneeze at a 26% gain in a single month, SNOW stock has traded near $400 on two occasions in the past five years -- November 2021 and December 2020 -- so there’s plenty of room for Snowflake’s share price to run in the months ahead.
Berkshire Hathaway (BRK.B), Warren Buffett’s holding company, owns 1.9% of Snowflake, a position taken in 2020’s third quarter at an average price of $238.10, well above where it’s currently trading. He can afford to be patient with his investments.
Analysts generally like Snowflake. Of the 34 that cover its stock, 24 rate it a Moderate or Strong Buy (4.29 out of 5). However, the target price of $187.24 is only a few dollars higher than where it’s currently trading.
The company reported Q3 2024 results on Wednesday. They were very healthy, with revenues of $734 million, 32% higher than a year earlier and more than $20 million higher than the analyst estimate. On the bottom line, its adjusted earnings per share were $0.25, nine cents higher than the consensus.
It finished the quarter with remaining performance obligations of $3.7 billion, 23% higher than a year ago, with 436 customers generating more than $1 million over the trailing 12 months.
For 2024, it expects revenues to grow by 37% to $2.65 billion, with an operating margin of 7%, both higher than analyst expectations.
The income play is the Dec. 8 $180 put. If you sell one of those bad boys, you’ll pocket $140 per contract should its share price remain above $180 for the next week. The annualized yield of 42%. Should it fall to $180, your net price would be $178.60.
Given the latest results, it’s hard to see its shares retreating much between now and next Friday.
Apple
Apple (AAPL) had seven unusually active options on Thursday, with Vol/OI ratios ranging from a low of 1.30 to a high of 8.87.
I’ve narrowed it down to two calls: Dec. 8 $187.50 and Dec. 8 $197.50. The former Vol/OI was 8.87, while the latter’s was 1.99. Their ask prices were $3.55 and $0.11, respectively.
Ok, first, I’m going to assume you know why Apple is Berkshire Hathaway’s largest equity holding by a country mile, accounting for 48.2% of its $363 billion equity portfolio.
So, based on yesterday’s closing price of $189.95, AAPL stock has to rise by 2.6% or $5.02 in the next week to double your money on the $187.50 call. For the $197.50 call, the share price has to rise by 1.0% or $1.92 by next Friday to double your money.
As I write this, AAPL stock is up $1.40 in Friday trading, getting you nearly three-quarters of the way to the $1.92 bump needed on the $197.50 call. Today's ask price is up a penny to $0.12, with a $1.88 increase required to double your money.
This would be the safest of the three bets.
Beyond Meat
There is a good possibility that the struggling plant-based food company’s stock bottomed in late October at around $5.58. Since hitting a 52-week low, Beyond Meat (BYND) is up 34%. While it’s got a long way to go to get back to $235, where it traded in 2019, I think there are brighter times ahead for the company and its stock.
As I write this, halfway through Friday trading, Beyond Meat’s options volume is already at 16,402, nearly 80% of its 30-day average. The number of shares traded is relatively decent at 1.14 million, roughly half its 30-day average.
So, BYND had five options with unusual options activity on Thursday. I’m interested in the one with the highest volume-to-open-interest (Vol/OI) ratio. That would be the Dec. 8 $6.50 put with a 9.30 Vol/OI.
If you sell this contract, the bid of $0.35 is an annualized yield of 250%. It’s that high because of the risk associated with owning BYND stock.
While I understand one’s apprehension about making this bet -- it’s definitely an aggressive play -- I wouldn’t suggest it if it were longer than a week or two.
Beyond Meat reported its Q3 2023 results in early November, which were awful. Revenues fell 8.7% to $75.3 million, while it lost $57.5 million on an adjusted EBITDA basis, down from $73.8 million a year earlier.
“As we shared last week, we are conducting a review of our global operations for purposes of further and significantly reducing our operating expense base as we seek to accelerate our transition to a sustainable and, ultimately, profitable business,” stated CEO Ethan Brown.
Beyond Meat’s operating expenses fell by 29% to $182.3 million through the first nine months of the year. As it continues to hack away at its costs, the cash saved gives it more time to figure out a way out of the deep hole it’s dug for itself.
The company’s $1.15 billion in 0% convertible senior notes due March 15, 2027, have a fair value of $299 million, or just 26% of the face value. I’m not a credit expert, but those would be a possible contrarian buy, possibly a much better opportunity than its stock.
But that is a subject for another day.
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Everything You Need to Know About Michael Burry's 'Big Short' Bet on Chip Stocks
On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Apple (AAPL) had seven unusually active options on Thursday, with Vol/OI ratios ranging from a low of 1.30 to a high of 8.87. So, based on yesterday’s closing price of $189.95, AAPL stock has to rise by 2.6% or $5.02 in the next week to double your money on the $187.50 call. As I write this, AAPL stock is up $1.40 in Friday trading, getting you nearly three-quarters of the way to the $1.92 bump needed on the $197.50 call. | Apple Apple (AAPL) had seven unusually active options on Thursday, with Vol/OI ratios ranging from a low of 1.30 to a high of 8.87. So, based on yesterday’s closing price of $189.95, AAPL stock has to rise by 2.6% or $5.02 in the next week to double your money on the $187.50 call. As I write this, AAPL stock is up $1.40 in Friday trading, getting you nearly three-quarters of the way to the $1.92 bump needed on the $197.50 call. | So, based on yesterday’s closing price of $189.95, AAPL stock has to rise by 2.6% or $5.02 in the next week to double your money on the $187.50 call. Apple Apple (AAPL) had seven unusually active options on Thursday, with Vol/OI ratios ranging from a low of 1.30 to a high of 8.87. As I write this, AAPL stock is up $1.40 in Friday trading, getting you nearly three-quarters of the way to the $1.92 bump needed on the $197.50 call. | So, based on yesterday’s closing price of $189.95, AAPL stock has to rise by 2.6% or $5.02 in the next week to double your money on the $187.50 call. Apple Apple (AAPL) had seven unusually active options on Thursday, with Vol/OI ratios ranging from a low of 1.30 to a high of 8.87. As I write this, AAPL stock is up $1.40 in Friday trading, getting you nearly three-quarters of the way to the $1.92 bump needed on the $197.50 call. |
16 | 12,325 | 2023-11-30 00:00:00 UTC | Judge set to rule on Berkshire Hathaway request for speedy trial over Pilot unit | AAPL | https://www.nasdaq.com/articles/judge-set-to-rule-on-berkshire-hathaway-request-for-speedy-trial-over-pilot-unit | null | null | By Jonathan Stempel
Nov 30 (Reuters) - A Delaware judge said she will decide by Friday whether to give Warren Buffett's Berkshire Hathaway BRKa.N a January trial date over a dispute of how to value truck stop operator Pilot Travel Centers, alongside a related lawsuit by the billionaire Haslam family.
Berkshire already owns 80% of Pilot, having paid the Haslams $2.76 billion for a 38.6% stake in 2017 and $8.2 billion for another 41.4% in January.
The dispute concerns how much Berkshire would owe if the Haslams, including Cleveland Browns owner Jimmy Haslam, exercised their option to sell the remaining 20% in the first two months of 2024.
Each side accuses the other of trying to manipulate Pilot's earnings, the basis for valuing that stake.
At a Thursday hearing in Delaware Chancery Court, Vice Chancellor Morgan Zurn told Berkshire's lawyer Craig Jennings Lavoie: "I am going to get you an answer by the end of the day tomorrow" on whether both cases can be tried together.
"I have to be satisfied that there is harm to your client that won't be remedied if I don't give you the equitable relief that you're asking for," Zurn said.
The Haslams sued Omaha, Nebraska-based Berkshire in October, accusing it of seeking a "windfall" by adopting "pushdown" accounting for Pilot, requiring it take on higher depreciation and amortization costs and lowering earnings.
Berkshire countersued on Nov. 28, saying Jimmy Haslam tried to bribe Pilot executives with millions of dollars to inflate earnings in 2023 at the expense of future years.
BERKSHIRE ALLEGES 'CLOUD OF MISCONDUCT'
At Thursday's hearing, Lavoie said Haslam made "at least 28" promises of secret side payments to Pilot executives, at above their annual salaries.
Lavoie said Haslam's push to align the executives' financial interests with his own amounted to a "cloud of misconduct" and "obvious breach of fiduciary duty," and Berkshire would be irreparably harmed if forced to possibly overpay for Pilot.
"We don't view it as a particularly complex case," Lavoie said.
Anitha Reddy, a lawyer for the Haslams, countered that Berkshire - which has one of corporate America's largest and strongest balance sheets - could not claim irreparable harm from possibly overpaying.
"How could they?" she said. "It's just a matter of money."
According to court papers, the Haslams believe the 20% Pilot stake was worth $3.2 billion before Berkshire's accounting change, an amount Berkshire disputes.
The family also includes former Tennessee Governor Bill Haslam, and Jimmy's father, Jim Haslam, who founded Pilot in 1958 after paying $6,000 for a Virginia gas station.
Pilot is based in Knoxville, Tennessee. It has approximately 800 locations in the United States and Canada, and has this year added $380 million to Berkshire's profit through September.
Buffett said at Berkshire's annual meeting in May he wished he could have bought all of Pilot in 2017, but the Haslams did not want to sell.
Berkshire also owns dozens of other businesses including the BNSF railroad and Geico car insurer, and big stakes in Apple AAPL.O, Bank of America BAC.N and other stocks.
The case is Pilot Corp v Abel et al, Delaware Chancery Court, No. 2023-1068-MTZ.
(Reporting by Jonathan Stempel in New York; Editing by Lincoln Feast.)
(([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 other businesses including the BNSF railroad and Geico car insurer, and big stakes in Apple AAPL.O, Bank of America BAC.N and other stocks. By Jonathan Stempel Nov 30 (Reuters) - A Delaware judge said she will decide by Friday whether to give Warren Buffett's Berkshire Hathaway BRKa.N a January trial date over a dispute of how to value truck stop operator Pilot Travel Centers, alongside a related lawsuit by the billionaire Haslam family. At a Thursday hearing in Delaware Chancery Court, Vice Chancellor Morgan Zurn told Berkshire's lawyer Craig Jennings Lavoie: "I am going to get you an answer by the end of the day tomorrow" on whether both cases can be tried together. | Berkshire also owns dozens of other businesses including the BNSF railroad and Geico car insurer, and big stakes in Apple AAPL.O, Bank of America BAC.N and other stocks. Berkshire already owns 80% of Pilot, having paid the Haslams $2.76 billion for a 38.6% stake in 2017 and $8.2 billion for another 41.4% in January. At a Thursday hearing in Delaware Chancery Court, Vice Chancellor Morgan Zurn told Berkshire's lawyer Craig Jennings Lavoie: "I am going to get you an answer by the end of the day tomorrow" on whether both cases can be tried together. | Berkshire also owns dozens of other businesses including the BNSF railroad and Geico car insurer, and big stakes in Apple AAPL.O, Bank of America BAC.N and other stocks. By Jonathan Stempel Nov 30 (Reuters) - A Delaware judge said she will decide by Friday whether to give Warren Buffett's Berkshire Hathaway BRKa.N a January trial date over a dispute of how to value truck stop operator Pilot Travel Centers, alongside a related lawsuit by the billionaire Haslam family. Lavoie said Haslam's push to align the executives' financial interests with his own amounted to a "cloud of misconduct" and "obvious breach of fiduciary duty," and Berkshire would be irreparably harmed if forced to possibly overpay for Pilot. | Berkshire also owns dozens of other businesses including the BNSF railroad and Geico car insurer, and big stakes in Apple AAPL.O, Bank of America BAC.N and other stocks. Berkshire already owns 80% of Pilot, having paid the Haslams $2.76 billion for a 38.6% stake in 2017 and $8.2 billion for another 41.4% in January. At Thursday's hearing, Lavoie said Haslam made "at least 28" promises of secret side payments to Pilot executives, at above their annual salaries. |
17 | 12,349 | 2023-11-29 00:00:00 UTC | Half of This Massive ETF Is Invested in the "Magnificent Seven." But Is It a Buy Now? | AAPL | https://www.nasdaq.com/articles/half-of-this-massive-etf-is-invested-in-the-magnificent-seven.-but-is-it-a-buy-now | null | null | The Magnificent Seven have captivated markets this year, and for good reason. The term, coined by Bank of America analyst Michael Hartnett, is used to describe Apple (NASDAQ: AAPL), Microsoft (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA).
Combined, these companies have a market cap of $11.83 trillion. And all seven stocks are beating the market so far year to date, from Apple's 46.7% year-to-date (YTD) gain to Nvidia's blistering 242.3% YTD gain.
The Vanguard Growth exchange-traded fund (ETF) (NYSEMKT: VUG) includes 221 stocks, but the Magnificent Seven make up just over half of the fund's allocation. Here's why the ETF is a good way to invest in the Magnificent Seven, as well as other parts of the market.
Image source: Getty Images.
A magnificent year
The Vanguard Growth ETF has nearly double its exposure to the Magnificent Seven as the Vanguard S&P 500 ETF (NYSEMKT: VOO), which is a near mirror image of the S&P 500.
COMPANY
% OF VANGUARD GROWTH ETF
% OF VANGUARD S&P 500 ETF
Apple
13%
7.09%
Microsoft
12.88%
7.1%
Alphabet
6.94%
3.87%
Amazon
6.33%
3.42%
Nvidia
4.9%
2.85%
Meta Platforms
3.43%
1.89%
Tesla
2.78%
1.57%
Total
50.26%
27.79%
Data Source: Vanguard.
Interestingly enough, the Vanguard Growth ETF is more than doubling the percentage return of the S&P 500.
AAPL data by YCharts
A focus on growth instead of value and income
If you're interested in the Magnificent Seven, chances are you are interested in growth and dominant industry-leading companies, and are willing to pay a premium price for a stock relative to the market. The Vanguard Growth ETF checks all of those boxes and then some. For starters, it is one of the largest ETFs out there, with a massive $170.7 billion in net assets.
The 214 stocks in the index outside of the Magnificent Seven include a lot of companies that wouldn't be considered traditional growth stocks.
For example, Visa (NYSE: V) and Mastercard (NYSE: MA) are the ninth- and tenth-largest holdings in the fund. But they are the only companies of meaningful weight from the financial sector in the ETF. This is a stark contrast to the two largest financials in the S&P 500, which are Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) and JPMorgan Chase (NYSE: JPM).
All four companies are industry leaders and massive behemoths in terms of their size. But Visa and Mastercard are on the growth side of the financial spectrum, more so than Berkshire's property and casualty insurance business or a diversified bank like JPMorgan. They are also more expensive stocks, each supporting above a 30 price to earnings (P/E) ratio, compared to just 10.4 for Berkshire and 9.1 for JPMorgan.
75% of the fund is concentrated in the technology, communications, and consumer discretionary sectors -- all of which tend to trade at premium valuations to the market. So it's no wonder the Vanguard Growth ETF has a 32.2 P/E ratio, a premium valuation relative to the 21.2 P/E ratio of the Vanguard S&P 500 ETF.
The concentration on growth instead of value unsurprisingly results in a lower dividend yield, just 0.6% for the Vanguard Growth ETF compared to 1.6% for the Vanguard S&P 500 ETF.
The theme of the ETF is to invest in companies that are going to devote their cash flows to growing their businesses and improving operations, not paying dividends. The inherent risk with this approach, and the allocation of the ETF, makes it more volatile than the S&P 500 and more sensitive to the economic cycle. This is fine if you're an investor with a long-term time horizon, but it's not attractive if you're looking for companies that are good values and pay dividends.
Checks and balances
The Vanguard Growth ETF is a balanced and low-cost way for someone to buy the Magnificent Seven. Instead of investing $1,000 in the Magnificent Seven, $1,000 invested in the Vanguard Growth ETF is basically putting half of that in the Magnificent Seven and then the other half in a boatload of other top companies. And to top it all off, a $1,000 investment in the Vanguard Growth ETF would incur a mere 40 cent annual expense thanks to the fund's minuscule 0.04% expense ratio.
One of the biggest mistakes investors make is accidentally overly allocating into a single stock or type of stock. The Vanguard Growth ETF is a way of making sure that doesn't happen, while also being an incredibly bullish bet on the growth of the stock market. After all, this is an ETF that is up just shy of 40% YTD. So it has the potential to produce some serious returns. But it also ensures that an investment remains diversified.
The best way to invest in the Magnificent Seven
The Vanguard Growth ETF has had an incredible year. For the ETF to keep outperforming the major indexes, the Magnificent Seven are going to have to continue beating the market.
No one knows if that will happen in the short term. But over the long term, the Magnificent Seven open the door to a lot of exciting trends and paradigm-shifting technologies. The Vanguard Growth ETF provides a responsible and measured way to invest in the Magnificent Seven without compromising upside potential.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. 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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Bank of America, Berkshire Hathaway, JPMorgan Chase, Mastercard, Meta Platforms, Nvidia, Tesla, Vanguard Index Funds-Vanguard Growth ETF, Vanguard S&P 500 ETF, 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. | The term, coined by Bank of America analyst Michael Hartnett, is used to describe Apple (NASDAQ: AAPL), Microsoft (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA). AAPL data by YCharts A focus on growth instead of value and income If you're interested in the Magnificent Seven, chances are you are interested in growth and dominant industry-leading companies, and are willing to pay a premium price for a stock relative to the market. But Visa and Mastercard are on the growth side of the financial spectrum, more so than Berkshire's property and casualty insurance business or a diversified bank like JPMorgan. | The term, coined by Bank of America analyst Michael Hartnett, is used to describe Apple (NASDAQ: AAPL), Microsoft (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA). AAPL data by YCharts A focus on growth instead of value and income If you're interested in the Magnificent Seven, chances are you are interested in growth and dominant industry-leading companies, and are willing to pay a premium price for a stock relative to the market. Apple 13% 7.09% Microsoft 12.88% 7.1% Alphabet 6.94% 3.87% Amazon 6.33% 3.42% Nvidia 4.9% 2.85% Meta Platforms 3.43% 1.89% Tesla 2.78% 1.57% Total 50.26% 27.79% Data Source: Vanguard. | The term, coined by Bank of America analyst Michael Hartnett, is used to describe Apple (NASDAQ: AAPL), Microsoft (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA). AAPL data by YCharts A focus on growth instead of value and income If you're interested in the Magnificent Seven, chances are you are interested in growth and dominant industry-leading companies, and are willing to pay a premium price for a stock relative to the market. A magnificent year The Vanguard Growth ETF has nearly double its exposure to the Magnificent Seven as the Vanguard S&P 500 ETF (NYSEMKT: VOO), which is a near mirror image of the S&P 500. | The term, coined by Bank of America analyst Michael Hartnett, is used to describe Apple (NASDAQ: AAPL), Microsoft (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA). AAPL data by YCharts A focus on growth instead of value and income If you're interested in the Magnificent Seven, chances are you are interested in growth and dominant industry-leading companies, and are willing to pay a premium price for a stock relative to the market. A magnificent year The Vanguard Growth ETF has nearly double its exposure to the Magnificent Seven as the Vanguard S&P 500 ETF (NYSEMKT: VOO), which is a near mirror image of the S&P 500. |
18 | 12,361 | 2023-11-28 00:00:00 UTC | Should Schwab Fundamental U.S. Large Company Index ETF (FNDX) Be on Your Investing Radar? | AAPL | https://www.nasdaq.com/articles/should-schwab-fundamental-u.s.-large-company-index-etf-fndx-be-on-your-investing-radar-11 | null | null | Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the Schwab Fundamental U.S. Large Company Index ETF (FNDX), a passively managed exchange traded fund launched on 08/13/2013.
The fund is sponsored by Charles Schwab. It has amassed assets over $12.37 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that fall in the large cap category tend to 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.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.25%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.90%.
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 18.60% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.49% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRK/B).
The top 10 holdings account for about 20.59% of total assets under management.
Performance and Risk
FNDX seeks to match the performance of the Russell RAFI US Large Co. Index before fees and expenses. The Russell RAFI US Large Company Index measures the performance of the large company size segment by fundamental overall company scores.
The ETF has gained about 10.97% so far this year and is up roughly 6.15% in the last one year (as of 11/28/2023). In the past 52-week period, it has traded between $52.49 and $59.78.
The ETF has a beta of 1.01 and standard deviation of 16.36% for the trailing three-year period, making it a medium risk choice in the space. With about 730 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental U.S. Large Company Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FNDX is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $50.60 billion in assets, Vanguard Value ETF has $99.95 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.49% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRK/B). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. You should consider the Schwab Fundamental U.S. Large Company Index ETF (FNDX), a passively managed exchange traded fund launched on 08/13/2013. | Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.49% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRK/B). You should consider the Schwab Fundamental U.S. Large Company Index ETF (FNDX), a passively managed exchange traded fund launched on 08/13/2013. | Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.49% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRK/B). Alternatives Schwab Fundamental U.S. Large Company Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.49% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRK/B). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. You should consider the Schwab Fundamental U.S. Large Company Index ETF (FNDX), a passively managed exchange traded fund launched on 08/13/2013. |
19 | 12,375 | 2023-11-27 00:00:00 UTC | How Long Can Wall Street Overlook This Breakout Penny Stock? | AAPL | https://www.nasdaq.com/articles/how-long-can-wall-street-overlook-this-breakout-penny-stock | null | null | Investing in penny stocks is a high-risk, high-reward proposition. Generally, stocks with share prices below $5 are defined as penny stocks. For investors with a higher risk appetite who like a bargain, investing in cheap penny stocks can be a tempting way to speculate on potentially outsized returns.
In fact, shares of several big tech companies, including Apple (AAPL) and Amazon (AMZN), were priced below $5 when they first went public on the stock market. That said, penny stocks have also gained a reputation for burning significant investor wealth.
Keeping these factors in mind, let’s see if it makes sense to invest in breakout penny stock Safety Shot (SHOT) right now.
www.barchart.com
An Overview of Safety Shot
Valued at $99.6 million by market cap, Safety Shot is the first patented beverage globally that reduces blood alcohol content (BAC) and boosts clarity. A wellness and functional beverage company, Safety Shot is engaged in the research and development of OTC (over-the-counter) products and intellectual property.
Its product pipeline includes:
Photocil - To address psoriasis and vertigo
JW-700 - To treat hair loss
JW-500 - A woman-oriented sexual wellness product
NoStingz - A jellyfish sting prevention sunscreen
JW-110 - To treat atopic eczema
Previously known as Jupiter Wellness, Safety Shot sells its products through third-party retail stores and channel partners. It also aims to unlock value through the spin-out of its legacy assets from Jupiter Wellness.
In the last 12 months, Safety Shot has reported revenue of $6.83 million with a gross profit of $1.36 million and an operating loss of $11.2 million.
Short Sellers Target SHOT
Shares of Safety Shot have surged over 400% year-to-date, but recently came under pressure after a report from short sellers Capybara Research. In response, Safety Shot released a press statement accusing short sellers of publishing “malicious, defamatory, inaccurate articles” about Safety Shot and its management, forcing investors out of their holdings so they could buy shares at a lower cost and cover short positions.
By the numbers, there are 1.8 million SHOT shares sold short, as of the Oct. 31 reporting period. At the stock's average daily trading volume, it would take more than three days to cover these shorted shares.
A Billion-Dollar Market Opportunity
Safety Shot expects to launch its patented beverage in December 2023 by marketing the product on Amazon. The company has forecast the functional beverage market at $62 billion and aims to gain market share here.
SHOT estimates the hangover remedies market at $1.56 billion, which is expected to grow by 14.6% annually through 2028. Soon after its launch on Amazon, SHOT plans to focus on B2B (business-to-business) sales of its products to distributors, retailers, bars, and restaurants in Q1 of 2024. It seems SHOT is just weeks away from a potential liftoff in revenue growth.
Meanwhile, despite the massive breakout in the share price, there are no analysts offering coverage of Safety Shot. While SHOT is best reserved for those with robust risk appetites for now, any new ratings or legitimate analyst attention from Wall Street could potentially draw some new buyers to the wellness-focused penny stock in the near term.
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In fact, shares of several big tech companies, including Apple (AAPL) and Amazon (AMZN), were priced below $5 when they first went public on the stock market. For investors with a higher risk appetite who like a bargain, investing in cheap penny stocks can be a tempting way to speculate on potentially outsized returns. While SHOT is best reserved for those with robust risk appetites for now, any new ratings or legitimate analyst attention from Wall Street could potentially draw some new buyers to the wellness-focused penny stock in the near term. | In fact, shares of several big tech companies, including Apple (AAPL) and Amazon (AMZN), were priced below $5 when they first went public on the stock market. Keeping these factors in mind, let’s see if it makes sense to invest in breakout penny stock Safety Shot (SHOT) right now. A Billion-Dollar Market Opportunity Safety Shot expects to launch its patented beverage in December 2023 by marketing the product on Amazon. | In fact, shares of several big tech companies, including Apple (AAPL) and Amazon (AMZN), were priced below $5 when they first went public on the stock market. www.barchart.com An Overview of Safety Shot Valued at $99.6 million by market cap, Safety Shot is the first patented beverage globally that reduces blood alcohol content (BAC) and boosts clarity. Short Sellers Target SHOT Shares of Safety Shot have surged over 400% year-to-date, but recently came under pressure after a report from short sellers Capybara Research. | In fact, shares of several big tech companies, including Apple (AAPL) and Amazon (AMZN), were priced below $5 when they first went public on the stock market. Generally, stocks with share prices below $5 are defined as penny stocks. A Billion-Dollar Market Opportunity Safety Shot expects to launch its patented beverage in December 2023 by marketing the product on Amazon. |
20 | 12,383 | 2023-11-26 00:00:00 UTC | Guru Fundamental Report for AAPL | AAPL | https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-22 | null | null | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 94% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. |
21 | 12,385 | 2023-11-25 00:00:00 UTC | Warren Buffett-Led Berkshire Hathaway Sells Its Entire Procter & Gamble Stake. Should You? | AAPL | https://www.nasdaq.com/articles/warren-buffett-led-berkshire-hathaway-sells-its-entire-procter-gamble-stake.-should-you | null | null | Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) latest 13F filing revealed that the company sold $7 billion in equities in Q3 -- including its entire stake in Procter & Gamble (NYSE: PG).
P&G has a wide moat, a stable business, and generates a ton of cash. Plus, it's a Dividend King with 67 consecutive years of dividend payments. It sounds like the perfect Buffett stock. But apparently it wasn't.
Let's go through some of the reasons why Berkshire may have sold P&G, but why the company could still be worth buying now.
Image source: Getty Images.
A bit of housekeeping
Berkshire finished Q2 with 315,400 shares of P&G -- valued at $47.9 million. It sounds like a lot, but the position was less than 0.1% of Berkshire's portfolio.
According to its Q3 13F filing, Berkshire has completely exited the position.
The sale may have just been an effort to consolidate the portfolio a bit. After all, Berkshire also exited other smaller positions, including Johnson & Johnson, Mondelez, United Parcel Service, Celanese, and General Motors. Aside from Celanese and GM, which both made up 0.2% of the public equity portfolio, all the other positions made up less than 0.1%.
A premium valuation
There's a good chance Buffett and his team sold these small holdings simply to consolidate the portfolio. But a better question to ask is why didn't Berkshire buy more P&G in the past or make it a larger position?
The answer may simply come down to valuation. P&G sports a price-to-earnings (P/E) ratio of 24.33, right around the P/E of the S&P 500, which is 24.6. It also has a high price-to-free cash flow (FCF) ratio of 25.5.
PG PE Ratio data by YCharts
And it's not like P&G's P/E ratio of price-to-FCF has been low in the past. Its 10-year median levels are above the market average, which is rare for a low-growth, stodgy dividend stock.
By comparison, Apple (NASDAQ: AAPL) stock, which has pole-vaulted to 50% of Berkshire's public equity portfolio, was a reasonable valuation for a while. Apple sports a 31.3 P/E ratio today, which may be one of the reasons Berkshire has been holding, not buying Apple. But its 10-year median P/E ratio is 18.
Aside from preferring Apple over other stocks, Berkshire also continues buying back its own stock. Berkshire is known for its public equity holdings. But it has sizable investments in many other companies too, from insurance, finance, energy, utilities, infrastructure, and more.
All told, Berkshire's reasons for not buying more P&G in years past, and its decision to sell the position today, may come down to Buffett and his team preferring other opportunities, including Apple and its own stock.
Why P&G is worth owning
An expensive valuation is far and away the best case against P&G. But it's important to also recognize what P&G does well and why it may be worth a premium price.
At its core, P&G's success stems from its ability to develop brands, as well as to recognize what brands aren't worth developing.
P&G is a cash cow that has proven to have immense pricing power even during this inflationary environment. It has successfully raised prices quarter after quarter. Instead of choosing a less expensive comparable generic brand, the numbers show that consumers are accepting P&G's price hikes. This shows that even in the consumer staples industry, there is an element of brand and pricing power that can give a company like P&G a lever to pull to offset high inflation.
Instead of using its FCF to overly invest in its business, P&G remains disciplined and chooses instead to return the majority of profits to investors through dividends and stock buybacks. In fiscal 2023, P&G spent a staggering $9 billion on dividends and $7.4 billion on buybacks. Over the last 10 years, it has reduced its outstanding share count by 13.1%.
By reducing the share count, buybacks permanently boost earnings per share since there are fewer shares to go around. It's a way for a company to grow its earnings per share in addition to organic growth, which makes a lot of sense for P&G since it is a low-growth company with limited outlets for responsible capital investment.
P&G is a perfect stock for risk-averse investors
P&G's positioning, track record for brand development, recession resilience, and pricing power make it a great company. In addition to those factors, what makes P&G a very good stock is its commitment to shareholders through the dividends and buybacks.
In Berkshire's case, buying back its own stock is perfectly reasonable because it is confident in the strength and valuation of its businesses. But for individual investors, about the only thing not to like about P&G is its valuation. The company checks the rest of the boxes.
P&G remains an excellent choice for folks looking to supplement income in retirement or who are looking for a safe stock so that they can participate in the stock market and collect dividend income, but also reduce the impact that a recession or major sell-off would likely have on their portfolio.
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Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends General Motors, Johnson & Johnson, and United Parcel Service and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By comparison, Apple (NASDAQ: AAPL) stock, which has pole-vaulted to 50% of Berkshire's public equity portfolio, was a reasonable valuation for a while. All told, Berkshire's reasons for not buying more P&G in years past, and its decision to sell the position today, may come down to Buffett and his team preferring other opportunities, including Apple and its own stock. This shows that even in the consumer staples industry, there is an element of brand and pricing power that can give a company like P&G a lever to pull to offset high inflation. | By comparison, Apple (NASDAQ: AAPL) stock, which has pole-vaulted to 50% of Berkshire's public equity portfolio, was a reasonable valuation for a while. Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) latest 13F filing revealed that the company sold $7 billion in equities in Q3 -- including its entire stake in Procter & Gamble (NYSE: PG). After all, Berkshire also exited other smaller positions, including Johnson & Johnson, Mondelez, United Parcel Service, Celanese, and General Motors. | By comparison, Apple (NASDAQ: AAPL) stock, which has pole-vaulted to 50% of Berkshire's public equity portfolio, was a reasonable valuation for a while. Aside from preferring Apple over other stocks, Berkshire also continues buying back its own stock. All told, Berkshire's reasons for not buying more P&G in years past, and its decision to sell the position today, may come down to Buffett and his team preferring other opportunities, including Apple and its own stock. | By comparison, Apple (NASDAQ: AAPL) stock, which has pole-vaulted to 50% of Berkshire's public equity portfolio, was a reasonable valuation for a while. Let's go through some of the reasons why Berkshire may have sold P&G, but why the company could still be worth buying now. But a better question to ask is why didn't Berkshire buy more P&G in the past or make it a larger position? |
22 | 12,404 | 2023-11-24 00:00:00 UTC | EXPLAINER-What deals can shoppers find this Black Friday? | AAPL | https://www.nasdaq.com/articles/explainer-what-deals-can-shoppers-find-this-black-friday | null | null | By Juveria Tabassum, Savyata Mishra
Nov 16 (Reuters) - Retailers are preparing for what they hope will be yet another record-setting global shopping spree on Black Friday, the fourth Friday of November, which this year is Nov. 24.
Known for crowds lining up at big-box stores to pounce on doorbuster discounts during the early hours after American Thanksgiving, Black Friday normally marks the unofficial start of the Christmas shopping season.
Retailers in the U.S., Europe and elsewhere will be trying to cash in on the hoopla. Here is what to expect from Black Friday 2023.
WHY IS IT CALLED 'BLACK' FRIDAY?
Starting around the 1960s and early 1970s, police and bus drivers in Philadelphia used the term "Black Friday" to refer to the chaos an influx of people to the city created before the Thanksgiving weekend. Visitors would trawl the stores in Philadelphia on Friday with their Christmas lists looking for gifts. Shoplifting and parking violations ensued.
Department stores re-branded the term to "Big Friday" to put a more positive spin on it. But the name did not stick, and since the 1980s retailers began to describe Black Friday as the day when their retail ledgers are allegedly "in the black," or operating at a profit, as customers start holiday shopping, according to Marcus Collins, a marketing professor with Ross School of Business, University of Michigan.
"What we know is Black Friday, because it's so ceremonial, we get more people participating in it," Collins said.
WILL SHOPPERS FIND BLACK FRIDAY DEALS THIS YEAR?
Several major retailers from Dollar General DG.N to Walmart WMT.N and Macy's M.N could be saddled with too much stock for a second straight year, according to a Reuters analysis. They likely will need to offer discounts in order to drive shoppers to their stores and websites.
Even ahead of Black Friday, research firm Jane Hali & Associates said discounts at Kohl's KSS.N and Macy's were as high as 60%, with foot traffic lower at these two retailers and Nordstrom JWN.N compared to last year.
Online discounts were expected to be as steep as 35% on toys, 24% on sporting goods and 19% on furniture, according to data from Adobe Analytics.
WHAT ITEMS ARE HOT FOR BLACK FRIDAY THIS YEAR?
IPhones will be hot again, with the recent launch of the iPhone 15. Last year, shoppers looking for Apple's AAPL.O iPhone 14 Pro and iPhone 14 Pro Max returned empty handed as the technology company struggled with production snafus in China.
Electronics are expected to be the top pick this shopping season, with estimates of a 6% growth, according to a report by Mastercard.
Best Buy kicked off its Black Friday deals in late October with offers such as its Play Station 5 for $499.99 bundled with either "Call of Duty: Modern Warfare III" or Marvel's "Spider-Man 2", though the retailer on Tuesday forecast a bigger decline in annual comparable sales and pointed to "difficult to predict" consumer demand.
Skin and hair care products remain popular, with Ulta Beauty offering up to 40% discount on CoverGirl and Lancome mascaras, Bobbi Brown concealers and select products of its own label.
ARE BLACK FRIDAY CROWDS LIKELY THIS YEAR?
Around 130.7 million people are planning to shop on Black Friday this year, according to data from the National Retail Federation (NRF). Thanksgiving weekend, which encompasses Black Friday and Cyber Monday - the Monday after Thanksgiving - is typically the busiest shopping period in the United States.
But Dana Telsey, CEO of Telsey Advisory Group, said Black Friday itself will not be as important this year. With Christmas falling on a Monday, the "procrastination factor (is) even greater because shoppers can wait until Saturday or Sunday" before Christmas to get gifts, she said this week.
Throughout the holiday season, in-store traffic is expected to fall slightly this year, dropping by 3.5% compared to last year, according to retail analytics firm Sensormatic Solutions.
Wet weather, which deterred in-store traffic in some parts of the U.S. last year on Black Friday morning, is largely not expected this year, according AccuWeather.
Although most U.S. stores will be closed on Thanksgiving again this year, opening for shoppers at 5 a.m. or 6 a.m. on Friday, some retailers are advertising discounts online that kick in starting at 12:01 a.m. on Thanksgiving.
Among them is Kohl's, which is promoting what it calls a "Super Deal" on Thanksgiving and Black Friday on products including Beats Studio Buds wireless noise cancelling earbuds for $89.99, from the regular price of $149.99.
Retailers big and small are touting online ordering and curbside pick-up this year for the convenience of shoppers who want to avoid stores. In the past decade, Americans' Black Friday purchases online have more than tripled, reaching $9.12 billion on the day last year, according to Adobe.
WHAT ARE RETAILERS' PLANS THIS YEAR?
Retailers including Best Buy, Macy's, H&M and pure e-commerce retailers like Shein and Temu were touting early Black Friday "deals" of up to 30% off on some limited merchandise online and in stores.
Such early promotions could help them measure shopper demand and avoid product shortages, which could be a big problem this year. Water levels in a key shipping artery, the Panama Canal, have dropped due to a severe drought, cutting the number of ships carrying merchandise through it.
Many retailers in the U.S. intentionally muted their holiday hiring plans. Labor shortages are also a challenge for retailers in Europe, meaning shoppers could find fewer staff to help them.
ARE DISRUPTIONS EXPECTED DURING THANKSGIVING WEEKEND?
More than 400 Macy's workers in Washington state are planning a three-day strike from Black Friday through Sunday, alleging unfair labor practices and demanding better wages, according to UFCW Local 3000's website.
Amazon workers in more than a dozen U.S. warehouses are striking on Black Friday, in a fight for higher wages, improved environmental efforts and tax payments to Europe. Protests are slated in more than 30 countries, including Germany, India and Spain, where at least 30 facilities will see walk-outs.
The strike's organizer Make Amazon Pay expects "thousands of workers" to participate with the hopes of causing friction to the e-retail giant's supply chain, which sees peak demand during the holiday shopping season. "Tens of thousands" of workers participated in three previous Amazon Black Friday walk-outs.
HOW MUCH ARE SHOPPERS EXPECTED TO SPEND?
Retail sales during the holidays are expected to be up 3% to 4% year-over-year across all sales channels - online, click and collect and in-store purchases, according to David Bujnicki, senior vice president of investor relations and strategy at Kimco Realty Corp KIM.N, an owner of open-air shopping centers. As of Sept. 30, Kimco owned interests in 527 U.S. shopping centers and mixed-use assets.
"Black Friday, while still a very important retail shopping day, is no longer the make or break benchmark," he said. "Retailers and consumers are spreading out their holiday sales deals beginning in November."
Spending online during Black Friday is expected to rise 5.7% to roughly $9.6 billion, according to Adobe.
In the United Kingdom, online spending during Black Friday is expected to rise 4.5% to 1.05 billion pounds ($1.30 billion), with total sales over the Cyber Weekend reaching 3.8 billion pounds, according to an Adobe forecast.
WHAT ARE RETAILERS DOING TO ATTRACT HOLIDAY SHOPPERS?
With student loan payments returning, and costs of housing and essentials pinching household budgets, analysts believe retailers will have to rely on promotions and early offers to stay afloat this holiday season.
Consumers were looking to make the most of promotional events and wrap up their shopping in just 5.8 weeks this year, when compared to a 7.4-week window pre-pandemic, according to data from Deloitte.
WHAT ARE RETAILERS SAYING ABOUT THIS YEAR'S BLACK FRIDAY?
Macy's CEO Jeff Gennette on Thursday said the competitive landscape has shifted to Black Friday deals prior to Black Friday. "We're in the midst of that along with our competitors, customers are taking advantage of that."
Mattel President Steve Totzke told Reuters on Monday that he is expecting a strong Black Friday and run-up to the holidays even as the toymaker warned of slowing demand for the toy industry last month.
($1 = 0.8048 pounds)
(Reporting by Juveria Tabassum and Savyata Mishra in Bengaluru, Richa Naidu in London, additional reporting by Helen Reid in London and Herbert Lash; Editing by Josie Kao)
(([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. | Last year, shoppers looking for Apple's AAPL.O iPhone 14 Pro and iPhone 14 Pro Max returned empty handed as the technology company struggled with production snafus in China. Best Buy kicked off its Black Friday deals in late October with offers such as its Play Station 5 for $499.99 bundled with either "Call of Duty: Modern Warfare III" or Marvel's "Spider-Man 2", though the retailer on Tuesday forecast a bigger decline in annual comparable sales and pointed to "difficult to predict" consumer demand. The strike's organizer Make Amazon Pay expects "thousands of workers" to participate with the hopes of causing friction to the e-retail giant's supply chain, which sees peak demand during the holiday shopping season. | Last year, shoppers looking for Apple's AAPL.O iPhone 14 Pro and iPhone 14 Pro Max returned empty handed as the technology company struggled with production snafus in China. Throughout the holiday season, in-store traffic is expected to fall slightly this year, dropping by 3.5% compared to last year, according to retail analytics firm Sensormatic Solutions. More than 400 Macy's workers in Washington state are planning a three-day strike from Black Friday through Sunday, alleging unfair labor practices and demanding better wages, according to UFCW Local 3000's website. | Last year, shoppers looking for Apple's AAPL.O iPhone 14 Pro and iPhone 14 Pro Max returned empty handed as the technology company struggled with production snafus in China. By Juveria Tabassum, Savyata Mishra Nov 16 (Reuters) - Retailers are preparing for what they hope will be yet another record-setting global shopping spree on Black Friday, the fourth Friday of November, which this year is Nov. 24. But the name did not stick, and since the 1980s retailers began to describe Black Friday as the day when their retail ledgers are allegedly "in the black," or operating at a profit, as customers start holiday shopping, according to Marcus Collins, a marketing professor with Ross School of Business, University of Michigan. | Last year, shoppers looking for Apple's AAPL.O iPhone 14 Pro and iPhone 14 Pro Max returned empty handed as the technology company struggled with production snafus in China. Here is what to expect from Black Friday 2023. Retailers big and small are touting online ordering and curbside pick-up this year for the convenience of shoppers who want to avoid stores. |
23 | 12,413 | 2023-11-23 00:00:00 UTC | From Energy to Retail: The Next 3 Trillion-Dollar Stocks | AAPL | https://www.nasdaq.com/articles/from-energy-to-retail%3A-the-next-3-trillion-dollar-stocks | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It used to be a company being valued at $1 trillion was a big deal. When Apple (NASDAQ:AAPL) became the first company to cross that threshold in 2018, there was a lot of hoopla surrounding the event. Today, it seems companies routinely earn trillion-dollar market caps.
Not really, but there are six companies as of this writing that have valuations exceeding $1 trillion: Apple, Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), and the most recent one, Nvidia (NASDAQ:NVDA).
Some have achieved the distinction only to tumble afterward, namely Meta Platforms (NASDAQ:META) and Tesla (NASDAQ:TSLA). And certainly, others are within striking distance of entering this small club. What follows are three industry-leading stocks that have a good chance of becoming the next trillion-dollar stocks.
Berkshire Hathaway (BRK-A)(BRK-B)
Source: IgorGolovniov / Shutterstock.com
I’m not making any bold declarations when I say Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B) could be one of the first stocks to attain trillion-dollar status. It is already worth $789 billion. To ascend to those new heights in just five years would require Warren Buffett to generate returns of just 5% annually. Over the past five years, the Oracle of Omaha has done twice as well on average.
There are some risks to this eventuality. The main one is the advanced age of Buffett and his partner Charlie Munger. Both are nonagenarians and though we wish them all a continued long life, well, they’ve actually enjoyed that. Buffett understands this and has investment managers in place who will step in when he dies. In fact, they are making many investment decisions for Berkshire Hathaway today. What investors don’t know, though, is exactly which investments they’ve made so it’s difficult to gauge their performance. That could change the calculus of whether Berkshire can continue to grow as it has.
Berkshire Hathaway has $157 billion in cash which gives it quite a war chest to buy stocks opportunistically. Those purchases could have the stock grow even faster. It will also receive about $6 billion in dividend payments this year further juicing returns. It seems it’s only a matter of if, not when Berkshire becomes a $1 trillion stock.
Exxon Mobil (XOM)
Source: Jonathan Weiss / Shutterstock.com
Integrated oil and gas giant Exxon Mobil (NYSE:XOM) is the second stock with a good chance of gaining a trillion-dollar valuation. At a current valuation of $420 billion, it has a longer road to travel than Berkshire Hathaway, but there are strong tailwinds that should push it over the finish line.
For all the talk about renewable energy sources, fossil fuels remain the primary source of energy for the world. Demand is extraordinarily high such that renewables have little chance of meeting it for years to come if not decades. While Exxon Mobil has given a nod towards alternative energy, it is doubling down on fossil fuels.
Exxon just announced it was acquiring Pioneer Natural Resources (NYSE:PXD) for $60 billion in an all-stock deal. The oil company is the largest producer in the Permian basin while Exxon is the fifth largest. Combined, they will far outstrip any other producer, but by not so much as to trigger antitrust objections.
The merged companies could produce as much as 700,000 barrels per day of new oil and gas within four years. It will raise output to as high as 2 million barrels as well. The combination of Pioneer’s low-cost operations and Exxon’s technology could result in reduced greenhouse gas emissions and more oil per well produced.
Oil prices will likely remain high for some time further padding Exxon’s already burgeoning profit pool. That could push this oil giant up to a $1 trillion valuation sooner rather than later.
Walmart (WMT)
Source: Jonathan Weiss / Shutterstock.com
Retail king Walmart (NYSE:WMT) is in much the same boat as Exxon. It is currently valued at $418 billion, meaning it needs to more than double to grab the trillion-dollar brass ring. That’s no small feat as we’ve seen, but the world’s largest retailer can certainly pull it off.
Walmart delivered to investors a total return of 75% over the past five years or about 11% annually. It might take the retailer a few years longer to reach $1 trillion, but it’s doable. It delivered 4.4% U.S. sales growth in the third quarter and 10.8% internationally. E-commerce sales are growing smartly, too, up 24% domestically but down 3% elsewhere. The latter fell, though, because its Flipkart subsidiary pushed its Billion Dollar Days sales event into the fourth quarter from the third this year.
Profit margins should also improve over the next few years as it pushes greater automation in its fulfillment centers to increase efficiency and productivity. Walmart’s Spark Driver platform for home delivery is already achieving 15% cost reductions while shortening delivery times.
You have a traditional retailer transforming into one set up to meet the needs of tomorrow. And even though Walmart is a multinational multibillion dollar corporation, it is still surprisingly nimble. Where it is No. 1 in physical retail, it is only behind Amazon in e-commerce. Albeit a far ways back, but it is continually improving. It’s easy to see how it can reach a $1 trillion valuation over the next five to 10 years.
On the date of publication, Rich Duprey held a LONG position in XOM stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | When Apple (NASDAQ:AAPL) became the first company to cross that threshold in 2018, there was a lot of hoopla surrounding the event. The combination of Pioneer’s low-cost operations and Exxon’s technology could result in reduced greenhouse gas emissions and more oil per well produced. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. | When Apple (NASDAQ:AAPL) became the first company to cross that threshold in 2018, there was a lot of hoopla surrounding the event. Berkshire Hathaway (BRK-A)(BRK-B) Source: IgorGolovniov / Shutterstock.com I’m not making any bold declarations when I say Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B) could be one of the first stocks to attain trillion-dollar status. Exxon Mobil (XOM) Source: Jonathan Weiss / Shutterstock.com Integrated oil and gas giant Exxon Mobil (NYSE:XOM) is the second stock with a good chance of gaining a trillion-dollar valuation. | When Apple (NASDAQ:AAPL) became the first company to cross that threshold in 2018, there was a lot of hoopla surrounding the event. Not really, but there are six companies as of this writing that have valuations exceeding $1 trillion: Apple, Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), and the most recent one, Nvidia (NASDAQ:NVDA). Berkshire Hathaway (BRK-A)(BRK-B) Source: IgorGolovniov / Shutterstock.com I’m not making any bold declarations when I say Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B) could be one of the first stocks to attain trillion-dollar status. | When Apple (NASDAQ:AAPL) became the first company to cross that threshold in 2018, there was a lot of hoopla surrounding the event. Exxon Mobil (XOM) Source: Jonathan Weiss / Shutterstock.com Integrated oil and gas giant Exxon Mobil (NYSE:XOM) is the second stock with a good chance of gaining a trillion-dollar valuation. Walmart delivered to investors a total return of 75% over the past five years or about 11% annually. |
24 | 12,427 | 2023-11-22 00:00:00 UTC | Should You Invest in the Vanguard Information Technology ETF (VGT)? | AAPL | https://www.nasdaq.com/articles/should-you-invest-in-the-vanguard-information-technology-etf-vgt-9 | null | null | Looking for broad exposure to the Technology - Broad segment of the equity market? You should consider the Vanguard Information Technology ETF (VGT), a passively managed exchange traded fund launched on 01/26/2004.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many 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 5, placing it in top 31%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $54.97 billion, making it the largest ETF attempting to match the performance of the Technology - Broad segment of the equity market. VGT seeks to match the performance of the MSCI US Investable Market Information Technology 25/50 Index before fees and expenses.
The MSCI US Investable Market Information Technology 25/50 Index is designed to transition in and out of securities affected by pending updates to the information technology sector.
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 0.10%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.70%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 22.72% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA).
The top 10 holdings account for about 60.70% of total assets under management.
Performance and Risk
Year-to-date, the Vanguard Information Technology ETF return is roughly 44.30% so far, and was up about 38.01% over the last 12 months (as of 11/22/2023). VGT has traded between $311.10 and $462.42 in this past 52-week period.
The ETF has a beta of 1.15 and standard deviation of 25.16% for the trailing three-year period, making it a medium risk choice in the space. With about 325 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Information Technology ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VGT is an outstanding 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.
IShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index. IShares U.S. Technology ETF has $13.08 billion in assets, Technology Select Sector SPDR ETF has $54.51 billion. IYW has an expense ratio of 0.40% and XLK charges 0.10%.
Bottom Line
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Vanguard Information Technology ETF (VGT): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
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iShares U.S. Technology ETF (IYW): ETF Research Reports
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 22.72% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Click to get this free report Vanguard Information Technology ETF (VGT): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports To read this article on Zacks.com click here. Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. | Click to get this free report Vanguard Information Technology ETF (VGT): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 22.72% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). IShares U.S. Technology ETF (IYW) tracks Dow Jones U.S. Technology Index and the Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index. | Click to get this free report Vanguard Information Technology ETF (VGT): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 22.72% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Alternatives Vanguard Information Technology ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. | Looking at individual holdings, Apple Inc. (AAPL) accounts for about 22.72% of total assets, followed by Microsoft Corp. (MSFT) and Nvidia Corp. (NVDA). Click to get this free report Vanguard Information Technology ETF (VGT): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports To read this article on Zacks.com click here. You should consider the Vanguard Information Technology ETF (VGT), a passively managed exchange traded fund launched on 01/26/2004. |
25 | 12,435 | 2023-11-21 00:00:00 UTC | Apple (NASDAQ:AAPL): Boring, But Commands Massive Pricing Power | AAPL | https://www.nasdaq.com/articles/apple-nasdaq%3Aaapl%3A-boring-but-commands-massive-pricing-power | null | null | As one of the top consumer technology companies in the world, Apple (NASDAQ:AAPL) faces a distinct conundrum. Being a mature and established enterprise lends Apple to criticism that it’s boring. At the same time, pressure on the consumer economy implies a loss of relevance. Still, the company commands massive pricing power, making it a worthwhile investment to consider. I am bullish on AAPL stock for its resilience under pressure.
Breaking Down AAPL's Recent Results
For starters, Apple’s most recent earnings print for its fourth quarter of Fiscal 2023 provided a confidence boost for investors. Heading into the report, confidence was generally high. However, analysts pointed to concerns about weakness in the company’s hardware sales. That’s not surprising, given global demand worries – particularly in China – as well as supply constraint issues. Still, Apple delivered the goods like it usually does.
As TipRanks contributor Abdulrasaq Ariwoola reported, earnings per share landed at $1.46, beating the consensus target of $1.39 per share. On the top line, sales did happen to decrease 0.7% on a year-over-year basis to $89.46 billion. Nevertheless, this tally slightly exceeded analysts’ expectations, which called for $89.28 billion.
As for the hardware components, Apple’s iPhone sales rang up $43.81 billion, in line with Wall Street’s projections. In addition, this print represented a 2% lift from the year-ago quarter’s tally. Similarly, iPad revenue enjoyed an encouraging performance, reaching $6.44 billion, which beat the consensus view of $6.07 billion.
In fairness, it wasn’t all positive for AAPL stock. Sales related to Apple’s Mac computers slipped, coming out to $7.61 billion against an expected $8.63 billion. Further, to Ariwoola’s point, shares initially fell in after-hours trading following the earnings disclosure.
That could be due to options market dynamics. Both before and after the disclosure, options flow data showed bearish trades – both bought puts and sold calls – that may have impacted sentiment. Still, it appears that the power of the fundamentals has taken over the narrative.
Gross Margin Trend Confirms Apple’s Pricing Power
As impressive as the Fiscal Q4 print was for Apple, what could really drive AAPL stock higher for the long haul could be its pricing power. To be clear, no company is completely immune from outside pressures. For example, inflation remains stubbornly high. If the Federal Reserve wants to take the gloves off with aggressively higher interest rates, that could roil the economy.
Nevertheless, the company’s gross margin continues to march higher despite obvious headwinds impacting the consumer economy. In Fiscal Q4, Apple posted a gross margin of 45.2%. In the year-ago quarter, this metric sat at 42.3%. This is a strong indicator that, irrespective of increased prices, consumers will continue to buy Apple products. That bodes very well for AAPL stock.
Since Q4 of Fiscal 2020, when Apple’s gross margin landed at 38.2%, this metric has witnessed a dramatic surge higher. In a hyperbolic sense, the company enjoys the license to print money. Of course, as the Mac sales decline shows, Apple can’t afford to casually drop the ball. However, the fact that so many people continue to buy the firm's products in large quantities demonstrates practically unparalleled influence.
Let’s face it – there’s not much distinguishing one smart device brand from another these days. Nevertheless, Apple benefits from a social cachet that its rivals lack. Not even inflationary economic conditions can dent this market presence. That’s a huge positive for AAPL stock.
Not Cheap, but Effective
If one knock does exist about AAPL stock, it’s that the security trades at a high earnings premium. Right now, the market prices AAPL at about a trailing-year multiple of 31x. Generally speaking, Apple falls under the computer hardware sector, which runs a price/earnings ratio of 18.5x.
At the same time, the bullish argument for AAPL stock centers on the predictability of the earnings trajectory. Facing uncertain market conditions, business predictability should command a higher premium over enterprises that are merely cheap. Given Apple’s consistent strengths amid widespread pressure, that’s a premium worth absorbing.
Is AAPL Stock a Buy, According to Analysts?
Turning to Wall Street, AAPL stock has a Strong Buy consensus rating based on 25 Buys, eight Holds, and zero Sell ratings. The average AAPL stock price target is $201.99, implying 5.95% upside potential.
The Takeaway: AAPL Stock is Boring but Dependable
As an established player, no one should expect AAPL stock to be an exciting investment. However, for those concerned about the ambiguities of what may lie ahead in the new year, Apple brings a strong platform to the table. With the company consistently attracting consumer dollars despite significant headwinds, AAPL stock is worthy of consideration.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As one of the top consumer technology companies in the world, Apple (NASDAQ:AAPL) faces a distinct conundrum. I am bullish on AAPL stock for its resilience under pressure. Breaking Down AAPL's Recent Results For starters, Apple’s most recent earnings print for its fourth quarter of Fiscal 2023 provided a confidence boost for investors. | Turning to Wall Street, AAPL stock has a Strong Buy consensus rating based on 25 Buys, eight Holds, and zero Sell ratings. As one of the top consumer technology companies in the world, Apple (NASDAQ:AAPL) faces a distinct conundrum. I am bullish on AAPL stock for its resilience under pressure. | As one of the top consumer technology companies in the world, Apple (NASDAQ:AAPL) faces a distinct conundrum. Gross Margin Trend Confirms Apple’s Pricing Power As impressive as the Fiscal Q4 print was for Apple, what could really drive AAPL stock higher for the long haul could be its pricing power. The Takeaway: AAPL Stock is Boring but Dependable As an established player, no one should expect AAPL stock to be an exciting investment. | Gross Margin Trend Confirms Apple’s Pricing Power As impressive as the Fiscal Q4 print was for Apple, what could really drive AAPL stock higher for the long haul could be its pricing power. Is AAPL Stock a Buy, According to Analysts? As one of the top consumer technology companies in the world, Apple (NASDAQ:AAPL) faces a distinct conundrum. |
26 | 12,452 | 2023-11-20 00:00:00 UTC | Dow Analyst Moves: AAPL | AAPL | https://www.nasdaq.com/articles/dow-analyst-moves%3A-aapl-7 | null | null | The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #12 analyst pick. Apple also comes in above the median of analyst picks among the broader S&P 500 index components, claiming the #149 spot out of 500.
Looking at the stock price movement year to date, Apple is showing a gain of 47.1%.
VIDEO: Dow Analyst Moves: AAPL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | VIDEO: Dow Analyst Moves: AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #12 analyst pick. Apple also comes in above the median of analyst picks among the broader S&P 500 index components, claiming the #149 spot out of 500. | VIDEO: Dow Analyst Moves: AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #12 analyst pick. Apple also comes in above the median of analyst picks among the broader S&P 500 index components, claiming the #149 spot out of 500. | VIDEO: Dow Analyst Moves: AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #12 analyst pick. Apple also comes in above the median of analyst picks among the broader S&P 500 index components, claiming the #149 spot out of 500. | VIDEO: Dow Analyst Moves: AAPL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The latest tally of analyst opinions from the major brokerage houses shows that among the 30 stocks making up the Dow Jones Industrial Average, Apple is the #12 analyst pick. Apple also comes in above the median of analyst picks among the broader S&P 500 index components, claiming the #149 spot out of 500. |
27 | 12,456 | 2023-11-19 00:00:00 UTC | Guru Fundamental Report for AAPL | AAPL | https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-20 | null | null | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. This momentum model looks for a combination of fundamental momentum and price momentum.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 94% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Dashan Huang Dashan Huang Portfolio About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. | Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. |
28 | 12,462 | 2023-11-18 00:00:00 UTC | Is Apple Stock a Buy Now? | AAPL | https://www.nasdaq.com/articles/is-apple-stock-a-buy-now-4 | null | null | Apple (NASDAQ: AAPL) is the largest company in the world -- worth nearly $3 trillion -- and many investors own a lot of its stock whether they know it or not. That's because Apple makes up 11.2% of the Nasdaq 100 and 7.3% of the S&P 500. If Apple doesn't do well, it will be a significant drag on these indexes, and investors across the board will see sub-par results.
On the flip side, if Apple does well, almost everyone else will, too. But here's the question: Is it worth buying additional shares of Apple if so many investors are already heavily weighted to it through their ownership of an index fund?
Apple's growth has been non-existent recently
Apple likely needs no introduction, as many in the U.S. already have an iPhone or a Mac computer. But what many people may not be aware of is Apple's service division, which generates revenue from the App Store, advertising, cloud services, and subscription products like Apple Music and Apple TV+. While some may consider this a necessary add-on, it has been a notable bright spot in Apple's fiscal 2023 (which ended Sept. 30).
CATEGORY FY 2023 REVENUE YOY GROWTH
iPhone $200.6 billion (2.4%)
Mac $29.4 billion (26.9%)
iPad $28.3 Billion (3.4%)
Wearables, Home and Accessories $39.8 billion (3.4%)
Services $85.2 billion 9.1%
Data source: Apple. YOY = year-over-year.
While iPhone sales were disappointing across the board in Apple's fiscal 2023, the fourth quarter brought a trend reversal. iPhone sales grew 2.8% year over year. While services revenue is vital, what drives Apple is the iPhone, and Apple investors need this product to sell well to do well.
Even though iPhone sales grew, that's not meaningful growth compared to other tech giants which posted revenue growth above 10%. However, revenue growth isn't everything. Profits also need to be considered, and Apple management has skillfully grown these even though revenue has declined slightly year over year.
For fiscal 2023, Apple's net income $97 billion was nearly the same as the $99.8 billion it earned a year earlier. But because of Apple's $78 billion in stock buybacks over the past year , Apple's earnings per share (EPS) for fiscal 2023 came in $0.01 higher than last year's at $6.16.
This trend of Apple's net income falling from last year reversed in Q4, as Apple's cost of sales dropped, increasing its margins and improving the bottom line. This helped increase Apple's EPS from $1.29 to $1.47, a 14% rise.
With Apple's earnings growing quickly, it weakens the bear argument. But there is still one more item to address before you buy Apple stock.
The stock fetches a premium price
There is only so much juice to squeeze from the margins before Apple hits a roadblock. It needs to return to growing its revenue in fiscal 2024 for the investment to make sense. Right now, investors have to pay a significant premium to own Apple shares, despite its lack of revenue growth.
AAPL PE Ratio data by YCharts
Normally, 30 times earnings would indicate that a stock is growing much faster than the market, but with Wall Street analysts expecting 6% revenue growth in fiscal 2024, it's not looking great for the stock.
As a result, I don't think investors should be loading up on Apple stock right now. The company doesn't offer a value proposition compared to other tech giants with its premium price tag and slow growth. If Apple can return to growing its sales at a 10% or greater pace, I may reconsider my stance.
But with a money-pinched consumer and lack of ground-breaking innovation from iPhones, this seems like a tall task for the world's largest company.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (NASDAQ: AAPL) is the largest company in the world -- worth nearly $3 trillion -- and many investors own a lot of its stock whether they know it or not. AAPL PE Ratio data by YCharts Normally, 30 times earnings would indicate that a stock is growing much faster than the market, but with Wall Street analysts expecting 6% revenue growth in fiscal 2024, it's not looking great for the stock. But here's the question: Is it worth buying additional shares of Apple if so many investors are already heavily weighted to it through their ownership of an index fund? | Apple (NASDAQ: AAPL) is the largest company in the world -- worth nearly $3 trillion -- and many investors own a lot of its stock whether they know it or not. AAPL PE Ratio data by YCharts Normally, 30 times earnings would indicate that a stock is growing much faster than the market, but with Wall Street analysts expecting 6% revenue growth in fiscal 2024, it's not looking great for the stock. Even though iPhone sales grew, that's not meaningful growth compared to other tech giants which posted revenue growth above 10%. | Apple (NASDAQ: AAPL) is the largest company in the world -- worth nearly $3 trillion -- and many investors own a lot of its stock whether they know it or not. AAPL PE Ratio data by YCharts Normally, 30 times earnings would indicate that a stock is growing much faster than the market, but with Wall Street analysts expecting 6% revenue growth in fiscal 2024, it's not looking great for the stock. But what many people may not be aware of is Apple's service division, which generates revenue from the App Store, advertising, cloud services, and subscription products like Apple Music and Apple TV+. | Apple (NASDAQ: AAPL) is the largest company in the world -- worth nearly $3 trillion -- and many investors own a lot of its stock whether they know it or not. AAPL PE Ratio data by YCharts Normally, 30 times earnings would indicate that a stock is growing much faster than the market, but with Wall Street analysts expecting 6% revenue growth in fiscal 2024, it's not looking great for the stock. However, revenue growth isn't everything. |
29 | 12,466 | 2023-11-17 00:00:00 UTC | After Hours Most Active for Nov 17, 2023 : MMM, QQQ, MATV, AAPL, NU, VCSH, MSFT, STRO, AMZN, KEY, VZ, BAC | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-nov-17-2023-%3A-mmm-qqq-matv-aapl-nu-vcsh-msft-stro-amzn-key-vz | null | null | The NASDAQ 100 After Hours Indicator is down -17.07 to 15,820.92. The total After hours volume is currently 90,330,083 shares traded.
The following are the most active stocks for the after hours session:
3M Company (MMM) is unchanged at $95.34, with 4,398,341 shares traded. MMM's current last sale is 90.37% of the target price of $105.5.
Invesco QQQ Trust, Series 1 (QQQ) is -0.27 at $385.77, with 3,562,042 shares traded. This represents a 48.53% increase from its 52 Week Low.
Mativ Holdings, Inc. (MATV) is unchanged at $13.71, with 3,402,922 shares traded. As reported by Zacks, the current mean recommendation for MATV is in the "strong buy range".
Apple Inc. (AAPL) is +0.09 at $189.78, with 3,138,577 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $1.59. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Nu Holdings Ltd. (NU) is unchanged at $8.07, with 2,492,283 shares traded. As reported by Zacks, the current mean recommendation for NU is in the "buy range".
Vanguard Short-Term Corporate Bond ETF (VCSH) is unchanged at $75.77, with 2,294,246 shares traded. This represents a 1.8% increase from its 52 Week Low.
Microsoft Corporation (MSFT) is -1.59 at $368.26, with 2,231,678 shares traded. Over the last four weeks they have had 13 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $2.75. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
Sutro Biopharma, Inc. (STRO) is unchanged at $2.69, with 1,857,662 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $-0.81. As reported by Zacks, the current mean recommendation for STRO is in the "buy range".
Amazon.com, Inc. (AMZN) is -0.09 at $145.09, with 1,804,116 shares traded. Over the last four weeks they have had 12 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.77. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
KeyCorp (KEY) is -0.02 at $12.30, with 1,493,925 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $0.26. KEY's current last sale is 94.62% of the target price of $13.
Verizon Communications Inc. (VZ) is +0.04 at $36.27, with 1,489,000 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024. The consensus EPS forecast is $1.17. VZ's current last sale is 88.46% of the target price of $41.
Bank of America Corporation (BAC) is -0.0003 at $29.98, with 1,214,143 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $0.79. BAC's current last sale is 88.18% of the target price of $34.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Inc. (AAPL) is +0.09 at $189.78, with 3,138,577 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for MATV is in the "strong buy range". | Apple Inc. (AAPL) is +0.09 at $189.78, with 3,138,577 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. | Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. Apple Inc. (AAPL) is +0.09 at $189.78, with 3,138,577 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". | Apple Inc. (AAPL) is +0.09 at $189.78, with 3,138,577 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -17.07 to 15,820.92. |
30 | 12,491 | 2023-11-16 00:00:00 UTC | TikTok joins Meta in appealing against EU gatekeeper status | AAPL | https://www.nasdaq.com/articles/tiktok-joins-meta-in-appealing-against-eu-gatekeeper-status | null | null | By Supantha Mukherjee
STOCKHOLM, Nov 16 (Reuters) - TikTok on Thursday joined Meta META.O in appealing against the "gatekeeper" status under the Digital Markets Act (DMA), an EU law that brings in tougher rules for tech companies and makes it easier for users to move between competing services.
Meta on Wednesday challenged the "gatekeeper" designations for its Messenger and Marketplace platforms, but did not appeal against the status for Facebook, Instagram and WhatsApp.
The European Union in September picked 22 "gatekeeper" services, run by six tech companies - Microsoft MSFT.O, Apple AAPL.O, Alphabet's GOOGL.O Google, Amazon AMZN.O, Meta and ByteDance's TikTok.
While Microsoft, Google and Amazon did not challenge their designations, Apple is yet to comment on its plan. Nov. 16 is the last date to appeal.
"Our appeal is based on the belief that our designation risks undermining the DMA's own stated goal by protecting actual gatekeepers from newer competitors like TikTok," it said.
"Far from being a gatekeeper, our platform, which has been operating in Europe for just over five years, is arguably the most capable challenger to more entrenched platform businesses."
The video sharing app said it does not meet the law's threshold for revenues generated in the European Economic Area of 7.5 billion euros ($8.13 billion) per annum.
Under the DMA, companies with more than 45 million monthly active users and a market capitalisation of 75 billion euros are considered gatekeepers providing a core platform service.
The company said it was designated a gatekeeper based on its parent company, ByteDance's,global marketcapitalisation that us based primarily on the performance of business lines that do not even operate in Europe.
Last month, China's ByteDance bought back shares from U.S. employees in a deal that valued the company at $223.5 billion.
TikTok, which has over 134 million monthly users, said it is a challenger, not an incumbent, in digital advertising and no market investigation was conducted in relation to its designation by the European Commission.
($1 = 0.9223 euros)
Meta appeals against EU gatekeeper status for Messenger, Marketplace
Big Tech's core businesses face overhaul under EU tech rules
Should new tech rules apply to Microsoft's Bing, Apple's iMessage, EU asks
Microsoft, Google to not challenge EU gatekeeper designation
FACTBOX-How the EU's Digital Markets Act challenges Big Tech
(Reporting by Supantha Mukherjee in Stockholm Editing by Nick Zieminski)
(([email protected]; +46 70 721 1004; 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 European Union in September picked 22 "gatekeeper" services, run by six tech companies - Microsoft MSFT.O, Apple AAPL.O, Alphabet's GOOGL.O Google, Amazon AMZN.O, Meta and ByteDance's TikTok. By Supantha Mukherjee STOCKHOLM, Nov 16 (Reuters) - TikTok on Thursday joined Meta META.O in appealing against the "gatekeeper" status under the Digital Markets Act (DMA), an EU law that brings in tougher rules for tech companies and makes it easier for users to move between competing services. Under the DMA, companies with more than 45 million monthly active users and a market capitalisation of 75 billion euros are considered gatekeepers providing a core platform service. | The European Union in September picked 22 "gatekeeper" services, run by six tech companies - Microsoft MSFT.O, Apple AAPL.O, Alphabet's GOOGL.O Google, Amazon AMZN.O, Meta and ByteDance's TikTok. By Supantha Mukherjee STOCKHOLM, Nov 16 (Reuters) - TikTok on Thursday joined Meta META.O in appealing against the "gatekeeper" status under the Digital Markets Act (DMA), an EU law that brings in tougher rules for tech companies and makes it easier for users to move between competing services. ($1 = 0.9223 euros) Meta appeals against EU gatekeeper status for Messenger, Marketplace Big Tech's core businesses face overhaul under EU tech rules Should new tech rules apply to Microsoft's Bing, Apple's iMessage, EU asks Microsoft, Google to not challenge EU gatekeeper designation FACTBOX-How the EU's Digital Markets Act challenges Big Tech (Reporting by Supantha Mukherjee in Stockholm Editing by Nick Zieminski) (([email protected]; +46 70 721 1004; 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 European Union in September picked 22 "gatekeeper" services, run by six tech companies - Microsoft MSFT.O, Apple AAPL.O, Alphabet's GOOGL.O Google, Amazon AMZN.O, Meta and ByteDance's TikTok. By Supantha Mukherjee STOCKHOLM, Nov 16 (Reuters) - TikTok on Thursday joined Meta META.O in appealing against the "gatekeeper" status under the Digital Markets Act (DMA), an EU law that brings in tougher rules for tech companies and makes it easier for users to move between competing services. ($1 = 0.9223 euros) Meta appeals against EU gatekeeper status for Messenger, Marketplace Big Tech's core businesses face overhaul under EU tech rules Should new tech rules apply to Microsoft's Bing, Apple's iMessage, EU asks Microsoft, Google to not challenge EU gatekeeper designation FACTBOX-How the EU's Digital Markets Act challenges Big Tech (Reporting by Supantha Mukherjee in Stockholm Editing by Nick Zieminski) (([email protected]; +46 70 721 1004; 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 European Union in September picked 22 "gatekeeper" services, run by six tech companies - Microsoft MSFT.O, Apple AAPL.O, Alphabet's GOOGL.O Google, Amazon AMZN.O, Meta and ByteDance's TikTok. By Supantha Mukherjee STOCKHOLM, Nov 16 (Reuters) - TikTok on Thursday joined Meta META.O in appealing against the "gatekeeper" status under the Digital Markets Act (DMA), an EU law that brings in tougher rules for tech companies and makes it easier for users to move between competing services. Under the DMA, companies with more than 45 million monthly active users and a market capitalisation of 75 billion euros are considered gatekeepers providing a core platform service. |
31 | 12,498 | 2023-11-15 00:00:00 UTC | TQQQ, KSET: Big ETF Outflows | AAPL | https://www.nasdaq.com/articles/tqqq-kset%3A-big-etf-outflows | null | null | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares UltraPro QQQ, where 18,500,000 units were destroyed, or a 4.1% decrease week over week. Among the largest underlying components of TQQQ, in morning trading today Apple is up about 0.5%, and Microsoft is up by about 0.4%.
And on a percentage change basis, the ETF with the biggest outflow was the KSET ETF, which lost 200,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior.
VIDEO: TQQQ, KSET: Big ETF Outflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of TQQQ, in morning trading today Apple is up about 0.5%, and Microsoft is up by about 0.4%. And on a percentage change basis, the ETF with the biggest outflow was the KSET ETF, which lost 200,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: TQQQ, KSET: Big ETF Outflows 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 units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares UltraPro QQQ, where 18,500,000 units were destroyed, or a 4.1% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the KSET ETF, which lost 200,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: TQQQ, KSET: Big ETF Outflows 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 units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares UltraPro QQQ, where 18,500,000 units were destroyed, or a 4.1% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the KSET ETF, which lost 200,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: TQQQ, KSET: Big ETF Outflows 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 units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the ProShares UltraPro QQQ, where 18,500,000 units were destroyed, or a 4.1% decrease week over week. Among the largest underlying components of TQQQ, in morning trading today Apple is up about 0.5%, and Microsoft is up by about 0.4%. And on a percentage change basis, the ETF with the biggest outflow was the KSET ETF, which lost 200,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. |
32 | 12,521 | 2023-11-14 00:00:00 UTC | 49% of Warren Buffett's $318 Billion Portfolio Is Now Invested in 1 Surprising Stock | AAPL | https://www.nasdaq.com/articles/49-of-warren-buffetts-%24318-billion-portfolio-is-now-invested-in-1-surprising-stock | null | null | Berkshire Hathaway CEO Warren Buffett has famously shied away from technology stocks for much of his career. He has given several explanations (and expressed a modicum of regret) for passing on opportunities like Microsoft and Alphabet, but they all amount to the same thing. Technology companies are generally outside his realm of expertise.
However, Buffett began to redefine his circle of competence about a decade ago when Berkshire took a substantial stake in IBM in 2011. Berkshire has since exited that position, but it laid the foundation for another one: Apple (NASDAQ: AAPL). As of Sept. 30, Berkshire Hathaway had 49% of its $318 billion equity securities portfolio invested in this single technology stock.
The prevailing consensus is that Buffett was not the original decision-maker when Berkshire first bought shares in 2016. That distinction probably lies with his co-investment managers Todd Combs and Ted Weschler.
But there can be no question that Buffett has a high conviction now about Apple, based on Berkshire's huge asset allocation. As Buffett said earlier this year: "Apple is different than the other businesses we own. It just happens to be a better business."
Given his conviction, is Apple stock worth buying today?
Durable advantages built on brand authority
Buffett sees a durable competitive advantage as the most important quality a business can possess, and Apple has that in spades. It ranks as the second-most-valuable brand in the world in 2023, according to consultancy Brand Finance, and its brand authority is the source of tremendous consumer loyalty and pricing power.
Buffett called attention to those qualities during a CNBC interview earlier this year: "If you're an Apple user and somebody offers you $10,000, but the only proviso is they'll take away your iPhone and you'll never be able to buy another, you're not going to take it." Not many companies have a product that is so highly prized among consumers.
A strong presence in several consumer markets
Apple has earned a strong market presence in several consumer electronics verticals. First and foremost, it is the largest smartphone manufacturer in the U.S. (55% market share in the third quarter) and the second-largest worldwide (16% market share in the third quarter). Apple is also the fourth-largest personal computer (PC) manufacturer, and it leads the market in tablets and smartwatches.
That creates a path to mid-single-digit growth in device revenue in the coming years as the broader consumer electronics market is expected to grow at 6.6% annually through 2030, according to Grand View Research.
But Apple has an installed base north of 2 billion active devices, which creates a monetization opportunity via services like App Store sales, financial products (Apple Pay), and various subscription products like Apple Music. The company has a strong presence in a few of those markets. Most notably, Apple Pay is the most popular in-store mobile wallet among U.S. consumers, and the App Store earns twice as much revenue as its closest competitor, the Google Play Store.
That creates a path to low-double-digit growth in services revenue in the coming years as mobile app sales are expected to increase at 9% annually through 2027 and the U.S. mobile payments market is projected to increase at 13% annually over the same period.
Lackluster results (again) in the fourth quarter
Apple beat expectations on the top and bottom lines in the fiscal fourth quarter (ended Sept. 30), but the results were mediocre at best. Total revenue fell for the fourth consecutive quarter, dropping about 70 basis points. That decline was due primarily to a 34% drop in Mac sales and a 10% decline in iPad sales. But meager 3% growth in iPhone sales certainly didn't help the situation.
On the bright side, Apple reported 16% sales growth in its high-margin services business, and the company repurchased more than $15 billion in stock during the quarter. As a result, GAAP earnings increased 13% to $1.46 per diluted share.
Apple stock looks expensive in context
Apple is a well-managed business that has consistently created value for shareholders. The stock is up 271% over the last five years, nearly quadrupling the S&P 500's total return. But I am skeptical as to whether the company can deliver market-beating returns from its current valuation.
Apple stock trades at just under 30 times earnings, a premium to its five-year average of 25.8 times earnings. Worse yet, Wall Street expects Apple to grow earnings per share at 9.8% annually over the long term. That forecast makes its current valuation multiple look expensive.
Personally, I would wait for a cheaper price. But Buffett clearly has immense confidence in the company, so I certainly wouldn't fault investors for buying a small position in Apple stock today.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Berkshire has since exited that position, but it laid the foundation for another one: Apple (NASDAQ: AAPL). Buffett called attention to those qualities during a CNBC interview earlier this year: "If you're an Apple user and somebody offers you $10,000, but the only proviso is they'll take away your iPhone and you'll never be able to buy another, you're not going to take it." That creates a path to mid-single-digit growth in device revenue in the coming years as the broader consumer electronics market is expected to grow at 6.6% annually through 2030, according to Grand View Research. | Berkshire has since exited that position, but it laid the foundation for another one: Apple (NASDAQ: AAPL). A strong presence in several consumer markets Apple has earned a strong market presence in several consumer electronics verticals. But Apple has an installed base north of 2 billion active devices, which creates a monetization opportunity via services like App Store sales, financial products (Apple Pay), and various subscription products like Apple Music. | Berkshire has since exited that position, but it laid the foundation for another one: Apple (NASDAQ: AAPL). But Apple has an installed base north of 2 billion active devices, which creates a monetization opportunity via services like App Store sales, financial products (Apple Pay), and various subscription products like Apple Music. On the bright side, Apple reported 16% sales growth in its high-margin services business, and the company repurchased more than $15 billion in stock during the quarter. | Berkshire has since exited that position, but it laid the foundation for another one: Apple (NASDAQ: AAPL). First and foremost, it is the largest smartphone manufacturer in the U.S. (55% market share in the third quarter) and the second-largest worldwide (16% market share in the third quarter). That's right -- they think these 10 stocks are even better buys. |
33 | 12,544 | 2023-11-13 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-3 | null | null | Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the Schwab U.S. Large-Cap ETF (SCHX), a passively managed exchange traded fund launched on 11/03/2009.
The fund is sponsored by Charles Schwab. It has amassed assets over $33.49 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
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 0.03%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.49%.
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 28.90% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.74% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
The top 10 holdings account for about 28.5% of total assets under management.
Performance and Risk
SCHX seeks to match the performance of the Dow Jones U.S. Large-Cap Total Stock Market Index before fees and expenses. The Dow Jones U.S. Large-Cap Total Stock Market measures all U.S. equity securities with readily available prices. The index includes approximately the largest 750 stocks and is float-adjusted market-capitalization weighted.
The ETF has added about 16.46% so far this year and is up about 13.15% in the last one year (as of 11/13/2023). In the past 52-week period, it has traded between $44.45 and $54.21.
The ETF has a beta of 1.01 and standard deviation of 17.87% for the trailing three-year period, making it a medium risk choice in the space. With about 753 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 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 $360.49 billion in assets, SPDR S&P 500 ETF has $413.35 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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Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.74% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : 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 $33.49 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 6.74% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : 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. 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. | Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : 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 6.74% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). 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 6.74% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report Schwab U.S. Large-Cap ETF (SCHX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : 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. You should consider the Schwab U.S. Large-Cap ETF (SCHX), a passively managed exchange traded fund launched on 11/03/2009. |
34 | 12,560 | 2023-11-12 00:00:00 UTC | The ‘iPhone For AI’: Betting Big On Artificial Intelligence | AAPL | https://www.nasdaq.com/articles/the-iphone-for-ai%3A-betting-big-on-artificial-intelligence | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Editor’s note: “The ‘iPhone For AI’: Betting Big On Artificial Intelligence” was previously published in October 2023. It has since been updated to include the most relevant information available.
Despite all the hype surrounding the internet throughout the 1990s and early 2000s, the internet didn’t really take off until Steve Jobs introduced the iPhone in 2007.
Until the iPhone’s release, the internet was something a few people used for work and even fewer used at home.
Then Apple’s (AAPL) iPhone put the power of the internet in the palm of our hand. And suddenly, the internet had gone mainstream, and internet companies started making money hand over fist.
Sure, internet stocks did fine before the iPhone’s launch. But as a group, internet stocks only rose 60% between the late 1990s and January 2007, when Jobs introduced the first iPhone.
Yet from January 2007 to today, internet stocks have soared more than 450%.
And the iPhone is what thrusted internet stocks into hyperdrive.
So, why is this important from where we sit? Well, I believe we’re about to get the iPhone for AI.
In many ways, AI parallels the internet. The two are both productivity game-changers. Like the internet, AI will allow us to do things faster, better, and cheaper.
Over the next 20 years, AI will unequivocally change society, just like the internet has over the past 20 years.
But even the internet didn’t go mainstream and truly change the world until the iPhone launched.
Similarly, AI won’t go mainstream and truly change the world until it has its own “iPhone moment.”
And we think that moment is coming very soon.
AI Is Swiftly Approaching Its ‘iPhone Moment’
OpenAI is arguably the top AI firm in the world. After all, it is the company that developed ChatGPT, the buzzy AI chatbot that kickstarted this whole AI Boom just under a year ago.
Now OpenAI is working to develop the iPhone for AI.
And it’s not going at it alone. In fact, it’s actually creating a global tech “super team” to build this AI iPhone.
For this mammoth project, the firm is teaming up with Jony Ive – the lead designer of the original iPhone – and Softbank CEO Masa Son – the world’s largest tech investor.
OpenAI is providing its AI technology. Ive is providing the design expertise. And Son is providing a whopping $1 billion in funding.
This is a tech super team embarking on a tech super project.
And the result will change the world. Thanks to the work of this super team, we’ll soon have a device that will put the power of AI in everyone’s hands, just as the iPhone did for the internet 15 years ago.
What will such a device look like?
No one knows – but we do have some clues.
Putting AI in the Palm of Our Hand
OpenAI’s biggest investor is tech titan Microsoft (MSFT). And both Microsoft and OpenAI are huge investors in another AI startup, Humane.
Humane was founded by two former Apple employees. And for years, the startup has been working to develop the next evolution of the iPhone.
Recently, Humane unveiled the culmination of its work: the Humane AI Pin.
Essentially, this wearable device – no bigger than a police badge – has all capabilities of an iPhone compacted into a shirt pin. There’s no screen, no keyboard, no headset or goggles.
It’s just a pin. And it uses cameras, sensors, projectors, and a microphone to interact with its wearer and their surroundings.
Now, details on this AI pin remain scant. But in Humane’s recent presentation, one of the firm’s founders used the pin to take a call, translate English to French, ask about the health specifications of a candy bar, and summarize the daily news.
Source: Humane
A full unveiling of the Humane AI Pin is expected in a month. Rumor has it that the company will also start selling the pin in November, too.
Is this pin the future? Will OpenAI’s “iPhone for AI” take a similar form?
We think so.
The Final Word
But we believe that what OpenAI builds with Jony Ive’s design input and Masa’s funding will be far superior.
Regardless, the future is sprinting toward us.
Some folks are calling AI a bubble – a fad or “hype train” just like NFTs were a few years ago.
Do so at your own peril.
History will be as unkind to those folks as it was to the people who laughed at the internet in the 1990s.
We’re confident that AI will change the world even more than the internet did.
And the pace of that change will skyrocket once OpenAI, Jony Ive, and Masa unveil the “iPhone for AI.”
To prepare for that pivotal moment, do everything you can to invest in the AI Boom before that vision becomes a reality.
And we think we have the best way for you to do just that.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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The post The ‘iPhone For AI’: Betting Big On Artificial Intelligence appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Then Apple’s (AAPL) iPhone put the power of the internet in the palm of our hand. For this mammoth project, the firm is teaming up with Jony Ive – the lead designer of the original iPhone – and Softbank CEO Masa Son – the world’s largest tech investor. But in Humane’s recent presentation, one of the firm’s founders used the pin to take a call, translate English to French, ask about the health specifications of a candy bar, and summarize the daily news. | Then Apple’s (AAPL) iPhone put the power of the internet in the palm of our hand. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Editor’s note: “The ‘iPhone For AI’: Betting Big On Artificial Intelligence” was previously published in October 2023. In fact, it’s actually creating a global tech “super team” to build this AI iPhone. | Then Apple’s (AAPL) iPhone put the power of the internet in the palm of our hand. AI Is Swiftly Approaching Its ‘iPhone Moment’ OpenAI is arguably the top AI firm in the world. Thanks to the work of this super team, we’ll soon have a device that will put the power of AI in everyone’s hands, just as the iPhone did for the internet 15 years ago. | Then Apple’s (AAPL) iPhone put the power of the internet in the palm of our hand. Well, I believe we’re about to get the iPhone for AI. Thanks to the work of this super team, we’ll soon have a device that will put the power of AI in everyone’s hands, just as the iPhone did for the internet 15 years ago. |
35 | 12,565 | 2023-11-11 00:00:00 UTC | PYPL Outlook: Can Paypal Become an AI Stock? | AAPL | https://www.nasdaq.com/articles/pypl-outlook%3A-can-paypal-become-an-ai-stock | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Paypal (NASDAQ:PYPL) stock has had a rough go of it, but the company has a storied history. It gave Elon Musk his first big profit. Co-founder Peter Thiel became one of Silicon Valley’s leading political players. But that’s all ancient history. What PYPL stock has been doing lately is disappointing investors. Shares are down 22% in 2023. If you put $1,000 into Paypal 5 years ago, you’d have $650 now.
It’s up to Alex Chriss, hired away from Intuit (NASDAQ:INTU) as CEO in August, to change the story on PYPL stock. Chriss’ accomplishment at Intuit was buying Mailchimp, an e-mail marketing firm, for $12 billion, but that will not be his first move here.
Shrink to Win
During his firstearnings callas CEO, on Nov. 1, Chriss mainly promised efficiency. “Our cost base remains too high and it’s actually slowing us down,” he said. Expect layoffs by Christmas, which Wall Street is bound to love.
Chriss also wants to get PayPal away from being a pure transaction company. That’s what it became under former CEO Dan Schulman. While that delivered consistent growth, Chriss sees players like Apple (NASDAQ:AAPL) grabbing share in the future. He also knows that Elon Musk’s original name for PayPal was X. The aim of X now to become what PayPal then promised to be, an “everything app” built around money.
The first step remains, however, cutting costs to improve margins. Chriss is buying back shares with extra cash flow, building a war chest. Paypal stock now sells for less than 17 times earnings and barely twice its yearly revenue. Chriss estimated full-year earnings for 2023 at $3.75 per share on his conference call, a raise from previous estimates of $3.49.
That should start the ball rolling.
The AI Growth Strategy
Chriss’ aim is to make PayPal a “platform company,” one that “can create meaningful profiles with the help of AI.”
That starts with using generative AI to enhance automated threat detection and response. Getting checkout systems to spot possible fraud as it happens is the goal. PayPal says the company has already cut its own loss rate in half with such systems, while doubling volumes.
That can also mean using AI to recommend upsells. The company conducted over 300 experiments using AI just in the first half of the year.
But there are risks to expanding outward. The Consumer Finance Protection Bureau (CFPB) wants apps like PayPal to follow the same regulations as banks. The CFPB has already warned customers of PayPal’s Venmo not to store money in their accounts, because it can be lost. PayPal has also been hit with a lawsuit over its transaction fees. Its seven-year old agreements with Visa (NYSE:V) are also drawing scrutiny.
No matter which direction PayPal looks to for growth, it’s clearly going to face competition, not just from other fintech companies but from governments.
The Bottom Line on PYPL Stock
Currently PayPal is being valued like a payment processor, and not a very good one. Fiserv (NYSE:FI), a traditional processor, is valued at almost three times revenue.
Chriss wants to see PayPal valued like a tech stock. If it were, the company’s value could easily double.
But getting there takes more than just saying “AI” or other Internet buzzwords that make you swoon. It means delivering results like those tech companies deliver. The market is not convinced PayPal can do that yet.
But for Chriss, these are early days. I’ve often said I bet the jockey and not the horse, the CEO and his vision matter to me. If Chriss can turn his current plate of buzzwords into results, I’m all ears.
I just want to see more.
As of this writing, Dana Blankenhorn had a LONG position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Write him at [email protected], tweet him at @danablankenhorn, or subscribe to his free Substack newsletter.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack.
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The post PYPL Outlook: Can Paypal Become an AI Stock? appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While that delivered consistent growth, Chriss sees players like Apple (NASDAQ:AAPL) grabbing share in the future. As of this writing, Dana Blankenhorn had a LONG position in AAPL. It’s up to Alex Chriss, hired away from Intuit (NASDAQ:INTU) as CEO in August, to change the story on PYPL stock. | He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. While that delivered consistent growth, Chriss sees players like Apple (NASDAQ:AAPL) grabbing share in the future. As of this writing, Dana Blankenhorn had a LONG position in AAPL. | While that delivered consistent growth, Chriss sees players like Apple (NASDAQ:AAPL) grabbing share in the future. As of this writing, Dana Blankenhorn had a LONG position in AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Paypal (NASDAQ:PYPL) stock has had a rough go of it, but the company has a storied history. | While that delivered consistent growth, Chriss sees players like Apple (NASDAQ:AAPL) grabbing share in the future. As of this writing, Dana Blankenhorn had a LONG position in AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Paypal (NASDAQ:PYPL) stock has had a rough go of it, but the company has a storied history. |
36 | 12,581 | 2023-11-10 00:00:00 UTC | Buy These 2 Growth Stocks on the Dip | AAPL | https://www.nasdaq.com/articles/buy-these-2-growth-stocks-on-the-dip-11 | null | null | Macroeconomic headwinds have burdened companies across multiple markets this year, with consumer-reliant businesses being some of the hardest hit. Investors have pulled back on some of the historically most successful companies despite delivering years of long-term growth. As a result, now is an excellent time to consider buying the dip on stocks that are likely to flourish in the coming years.
Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) haven't had it easy in 2023, with their stocks tumbling 7% and 5%, respectively, since the start of July. However, these companies remain the biggest names in their respective industries and will likely provide significant stock growth to investors over the long haul.
So, here are two attractive growth stocks to buy on the dip.
1. Apple: Undeniable brand loyalty that keeps customers coming back
Apple posted four consecutive quarters of revenue declines in its fiscal 2023, with total sales dipping 3% year over year. The company suffered from marketwide decreases in consumer spending, which brought revenue tumbling across its product categories.
Despite market challenges, shoppers have continued to show a strong preference for Apple's products, which will likely pay off over the long term. Counterpoint Research states that U.S. smartphone shipments decreased by 19% in the third quarter of 2023, with Samsung and Alphabet experiencing sales declines of 26% and 37%, respectively. Yet, the same period saw Apple report a more moderate decline of 11%, allowing it to retain its 55% market share in smartphones.
Moreover, while consumers haven't been keen to upgrade their devices amid spikes in inflation, Apple has still profited significantly from the digital services it offers through its products. Subscription-based platforms such as Apple TV+, Music, iCloud, and more have diversified Apple's business and proven less vulnerable to economic headwinds. Services revenue rose 9% in 2023 as profit margins hit 72%, remaining a bright spot for the company.
Shares in Apple have soared 255% over the last five years, outperforming rivals Microsoft, Alphabet, and Amazon. The company has a history of being one of the most reliable growth stocks over the long term and is well positioned to deliver substantial gains once the tech market recovers. The recent dip in its shares has only made its stock more attractive, with now being an excellent time to invest in Apple.
2. Disney: A very long-term buy
It hasn't been easy to be a Disney investor in recent years. The Covid-19 pandemic shuttered large portions of its business as theater and theme park closures stole billions of dollars in revenue. Then, an economic downturn in 2022 made it costly to expand in the streaming market, triggering countless restructuring moves to get the company back on track. As a result, Disney's stock is down 34% over the last three years.
However, the entertainment giant is in profitability mode and making big changes to its business to see significant growth over the long term. A bright spot for Disney has been its theme parks, experiences, and products division, which reported a 13% rise in revenue in the third quarter of 2023. Meanwhile, park admission sales increased by 18%. As a result, the company is heavily investing in improving guest experiences by expanding its parks worldwide while also introducing higher ticket prices and monetizing various aspects of the business.
One of Disney's weakest points over the last year has been its direct-to-consumer segment, which includes revenue from its various streaming platforms. However, it appears to be gradually inching toward profitability. The segment posted operating losses of $512 million in Q3, nearly half the losses it reported in the year-ago quarter. The company plans to introduce another price hike to its subscribers as it works to find a balance between offering value and meeting its bottom line.
Disney will report its fourth-quarter 2023 results this week, with expectations that it will reinstate its dividend after removing it during pandemic lockdowns. The company promised to bring it back before the end of the calendar year, which is quickly approaching. The return of its dividend would be a huge win for Disney and its stock, illustrating management's optimism for its future growth.
The Walt Disney Company isn't out of the woods after recent challenges. However, it remains one of the world's most recognizable brands, with millions of loyal customers. Recent restructuring moves, such as changing its CFO and pivoting its business away from streaming, are favorable for its long-term future. Now could be an excellent time to buy its stock for a bargain price, with plans to hold over many years.
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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) and Disney (NYSE: DIS) haven't had it easy in 2023, with their stocks tumbling 7% and 5%, respectively, since the start of July. Moreover, while consumers haven't been keen to upgrade their devices amid spikes in inflation, Apple has still profited significantly from the digital services it offers through its products. Then, an economic downturn in 2022 made it costly to expand in the streaming market, triggering countless restructuring moves to get the company back on track. | Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) haven't had it easy in 2023, with their stocks tumbling 7% and 5%, respectively, since the start of July. Apple: Undeniable brand loyalty that keeps customers coming back Apple posted four consecutive quarters of revenue declines in its fiscal 2023, with total sales dipping 3% year over year. Disney: A very long-term buy It hasn't been easy to be a Disney investor in recent years. | Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) haven't had it easy in 2023, with their stocks tumbling 7% and 5%, respectively, since the start of July. Apple: Undeniable brand loyalty that keeps customers coming back Apple posted four consecutive quarters of revenue declines in its fiscal 2023, with total sales dipping 3% year over year. Disney: A very long-term buy It hasn't been easy to be a Disney investor in recent years. | Apple (NASDAQ: AAPL) and Disney (NYSE: DIS) haven't had it easy in 2023, with their stocks tumbling 7% and 5%, respectively, since the start of July. Disney: A very long-term buy It hasn't been easy to be a Disney investor in recent years. As a result, Disney's stock is down 34% over the last three years. |
37 | 12,587 | 2023-11-09 00:00:00 UTC | Arm shares sink as some analysts question valuation after weak forecast | AAPL | https://www.nasdaq.com/articles/arm-shares-sink-as-some-analysts-question-valuation-after-weak-forecast | null | null | By Arsheeya Bajwa
Nov 9 (Reuters) - Shares of Arm Holdings ARM.O sank 8% on Thursday after a delay in a large deal hampered the company's quarterly forecast in the first earnings since its float in September.
The company, which develops and licences semiconductor intellectual property to tech giants including Apple AAPL.O, was set to erase more than $4 billion from its market value.
Several analysts raised questions about the valuation of the company, which is grappling with uncertainty stemming from new accounting rules on how revenue from large, multi-year license deals must be recognized in its books.
"We are surprised by its weaker royalty outlook vs its smartphone customers like Mediatek and Qualcomm," said HSBC analyst Frank Lee.
Qualcomm QCOM.O sees 10% sequential sales growth in smartphones given overall Android smartphone restocking. On the other hand, Arm only guided for mid to high single-digit sequential sales growth for its royalty revenues, the brokerage added.
Lee said Arm's current FY24 price-to-earnings ratio still remains at a significant premium, adding that the valuation "is still stretched in our view despite share price correction."
The SoftBank Group-controlled firm trades at 45 times its 12-month forward earnings estimates, compared with investor darling Nvidia's NVDA.O 29.66 and the industry median of 18.13, according to LSEG data.
Arm on Wednesday forecast a third-quarter revenue range with a midpoint of $760 million, below analysts' estimates of $767.84 million, according to LSEG data.
But its annual revenue forecast was above estimates, as it benefited from a surge in companies designing new chips to tap the boom in artificial intelligence applications.
"(Arm) along with the broader semi industry is seeing strong design activity for data center and AI integration/penetration... but, it will take some time before this begins generating meaningful revenues for some," said Justin Sumner, a senior portfolio manager at Voya Investment Management, an Arm shareholder.
A dominant player in mobile phone chips, Arm has been looking to expand into other areas such as data center servers and personal computer chips.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shailesh Kuber)
(([email protected]; +91 8510015800;))
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 develops and licences semiconductor intellectual property to tech giants including Apple AAPL.O, was set to erase more than $4 billion from its market value. By Arsheeya Bajwa Nov 9 (Reuters) - Shares of Arm Holdings ARM.O sank 8% on Thursday after a delay in a large deal hampered the company's quarterly forecast in the first earnings since its float in September. Several analysts raised questions about the valuation of the company, which is grappling with uncertainty stemming from new accounting rules on how revenue from large, multi-year license deals must be recognized in its books. | The company, which develops and licences semiconductor intellectual property to tech giants including Apple AAPL.O, was set to erase more than $4 billion from its market value. Qualcomm QCOM.O sees 10% sequential sales growth in smartphones given overall Android smartphone restocking. On the other hand, Arm only guided for mid to high single-digit sequential sales growth for its royalty revenues, the brokerage added. | The company, which develops and licences semiconductor intellectual property to tech giants including Apple AAPL.O, was set to erase more than $4 billion from its market value. By Arsheeya Bajwa Nov 9 (Reuters) - Shares of Arm Holdings ARM.O sank 8% on Thursday after a delay in a large deal hampered the company's quarterly forecast in the first earnings since its float in September. Arm on Wednesday forecast a third-quarter revenue range with a midpoint of $760 million, below analysts' estimates of $767.84 million, according to LSEG data. | The company, which develops and licences semiconductor intellectual property to tech giants including Apple AAPL.O, was set to erase more than $4 billion from its market value. By Arsheeya Bajwa Nov 9 (Reuters) - Shares of Arm Holdings ARM.O sank 8% on Thursday after a delay in a large deal hampered the company's quarterly forecast in the first earnings since its float in September. Qualcomm QCOM.O sees 10% sequential sales growth in smartphones given overall Android smartphone restocking. |
38 | 12,626 | 2023-11-08 00:00:00 UTC | Reuters NEXT-Apple is not passing on costs of climate goals to consumers, exec says | AAPL | https://www.nasdaq.com/articles/reuters-next-apple-is-not-passing-on-costs-of-climate-goals-to-consumers-exec-says | null | null | Adds details on Apple's environmental efforts in paragraphs 5-10
Nov 8 (Reuters) - Apple AAPL.O does not charge more to account for its carbon reduction efforts on its widely-used consumer technology products, its top executive for sustainability said on Wednesday at the Reuters NEXT conference in New York.
“We don’t factor in a premium to take care of the work that we’re doing," Apple Vice President Lisa Jackson said in an interview with Reuters Editor-in-Chief Alessandra Galloni.
Apple, with a roughly $2.8 trillion market capitalization, which makes it the world's most valuable publicly traded company, wants to show a way forward that can apply to other businesses, Jackson said. Apple CEO Tim Cook has set the tone, according to Jackson.
"I want to do it in a way that other businesses can say this isn't because they’re Apple," said Jackson, referring to Cook's direction. "It's because they understand how to make clean energy and (recyclable) materials work in the manufacturing chains and drive emissions down."
Apple has been aggressive among large U.S. companies in advocating for stricter public environmental policies. In September it endorsed legislation in California to require companies to report on their greenhouse gas emissions, even though trade groups in the state opposed the idea that recently became law.
Under Jackson, formerly the head of the U.S. Environmental Protection Agency, Apple was also an early backer of federal rules to require companies to disclose emissions from their value chains.
Many other executives from large U.S. companies oppose the idea, which has not been finalized by securities regulators. Critics say it is easier for a tech company like Apple to meet such goals than it would be for corporations in more energy-intensive industries.
In her remarks on Wednesday, Jackson nodded at the challenges of figuring out and reporting supply-chain details. "Even making the windmills to generate renewable energy has a carbon footprint, and so you have to account for that," she said.
For a recent model of the Apple Watch, the company has reduced 78% of its carbon footprint but not some 8 kilograms of emissions for each device. "We just right now don't have the ability to take care" of that, which includes the environmental impact of transportation and logistics.
Jackson also said Apple is working with smaller processing companies to recycle rare earths and other materials. "That's somewhere Apple can invest and then help to scale and bring (other) businesses along," she said.
(Reporting By Jeffrey Dastin and Kenneth Li in New York and Ross Kerber in Boston; Editing by Daniel Wallis)
(([email protected]; +1 424 434 7548;))
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 Apple's environmental efforts in paragraphs 5-10 Nov 8 (Reuters) - Apple AAPL.O does not charge more to account for its carbon reduction efforts on its widely-used consumer technology products, its top executive for sustainability said on Wednesday at the Reuters NEXT conference in New York. “We don’t factor in a premium to take care of the work that we’re doing," Apple Vice President Lisa Jackson said in an interview with Reuters Editor-in-Chief Alessandra Galloni. Apple, with a roughly $2.8 trillion market capitalization, which makes it the world's most valuable publicly traded company, wants to show a way forward that can apply to other businesses, Jackson said. | Adds details on Apple's environmental efforts in paragraphs 5-10 Nov 8 (Reuters) - Apple AAPL.O does not charge more to account for its carbon reduction efforts on its widely-used consumer technology products, its top executive for sustainability said on Wednesday at the Reuters NEXT conference in New York. "It's because they understand how to make clean energy and (recyclable) materials work in the manufacturing chains and drive emissions down." Many other executives from large U.S. companies oppose the idea, which has not been finalized by securities regulators. | Adds details on Apple's environmental efforts in paragraphs 5-10 Nov 8 (Reuters) - Apple AAPL.O does not charge more to account for its carbon reduction efforts on its widely-used consumer technology products, its top executive for sustainability said on Wednesday at the Reuters NEXT conference in New York. Apple, with a roughly $2.8 trillion market capitalization, which makes it the world's most valuable publicly traded company, wants to show a way forward that can apply to other businesses, Jackson said. Under Jackson, formerly the head of the U.S. Environmental Protection Agency, Apple was also an early backer of federal rules to require companies to disclose emissions from their value chains. | Adds details on Apple's environmental efforts in paragraphs 5-10 Nov 8 (Reuters) - Apple AAPL.O does not charge more to account for its carbon reduction efforts on its widely-used consumer technology products, its top executive for sustainability said on Wednesday at the Reuters NEXT conference in New York. "I want to do it in a way that other businesses can say this isn't because they’re Apple," said Jackson, referring to Cook's direction. "It's because they understand how to make clean energy and (recyclable) materials work in the manufacturing chains and drive emissions down." |
39 | 12,644 | 2023-11-07 00:00:00 UTC | Wall St regains ground on megacap boost; Fed speakers in focus | AAPL | https://www.nasdaq.com/articles/wall-st-regains-ground-on-megacap-boost-fed-speakers-in-focus | null | null | By Amruta Khandekar and Shristi Achar A
Nov 7 (Reuters) - Wall Street's main indexes climbed on Tuesday following a choppy start to the session as falling U.S. Treasury yields supported megacap growth stocks, while investors awaited more commentary by Federal Reserve officials to gauge the interest rate path.
Treasury yields slipped on Tuesday ahead of large bond auctions this week, with the benchmark ten-year Treasury yield US10YT=RR last at 4.5892%.
While investors have priced in an end to the Fed's interest rate hiking cycle, concerns that the central bank will keep rates at their current level for longer have gripped markets following hawkish comments from some Fed officials.
Federal Reserve Bank of Minneapolis President Neel Kashkari doused hopes of early rate cuts, saying the central bank may have to do more to bring inflation back down to its 2% target.
Chicago Fed chief Austan Goolsbee acknowledged the downward trend in inflation but maintained price pressures are not yet over.
Megacap growth names such as Microsoft MSFT.O, Apple AAPL.O and Amazon.com AMZN.O rose between 1.1% and 2.2%, helping the tech-heavy Nasdaq .IXIC outperform peers.
"Originally, higher rates placed concern on the multiples of these stocks (but) it's shifting now to the idea that they may be a defensive place to be in this market. They have fairly bulletproof balance sheets," said Rick Meckler, partner at Cherry Lane Investments, in New Vernon, New Jersey.
Five of the 11 major S&P 500 sectors traded higher, with information technology .SPLRCT, consumer discretionary .SPLRCD and communication services .SPLRCL leading gains.
Energy stocks .SPNY were the top decliners, down 2.4% as crude prices fell on mixed economic data from China. O/R
Market participants will parse commentary from New York Fed President John Williams later on Tuesday for more clues on the central bank's interest rate path. Fed Chair Jerome Powell's remarks will grab the spotlight on Wednesday.
The S&P 500 .SPX is set for its seventh straight day in the green, while the Nasdaq .IXIC is on track to rise for the eighth day in a row.
Despite the recent gains, uncertainty about the timing of rate cuts and the prospects of a recession have cast a doubt on whether there could be a year-end rally.
"Investors are not yet ready to completely jump back in. We're more likely to have a mixed market where you see sector rotation than we are to see a very significant year-end rally," Meckler said.
At 11:46 a.m. ET, the Dow Jones Industrial Average .DJI was up 93.99 points, or 0.28%, at 34,189.85, the S&P 500 .SPX was up 16.50 points, or 0.38%, at 4,382.48, and the Nasdaq Composite .IXIC was up 131.18 points, or 0.97%, at 13,649.96.
Uber TechnologiesUBER.N rose 3.5% as the ride-hailing firmprojected fourth-quarter adjusted core profit above estimates.
DatadogDDOG.O surged 28.5% on raising its forecast for annual adjusted profit and revenue.
Declining issues outnumbered advancers for a 1.15-to-1 ratio on the NYSE. Advancing issues outnumbered decliners by a 1.12-to-1 ratio on the Nasdaq.
The S&P index recorded 12 new 52-week highs and three new lows, while the Nasdaq recorded 29 new highs and 87 new lows.
(Reporting by Amruta Khandekar and Shristi Achar A in Bengaluru; Editing by Maju Samuel)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Megacap growth names such as Microsoft MSFT.O, Apple AAPL.O and Amazon.com AMZN.O rose between 1.1% and 2.2%, helping the tech-heavy Nasdaq .IXIC outperform peers. By Amruta Khandekar and Shristi Achar A Nov 7 (Reuters) - Wall Street's main indexes climbed on Tuesday following a choppy start to the session as falling U.S. Treasury yields supported megacap growth stocks, while investors awaited more commentary by Federal Reserve officials to gauge the interest rate path. Five of the 11 major S&P 500 sectors traded higher, with information technology .SPLRCT, consumer discretionary .SPLRCD and communication services .SPLRCL leading gains. | Megacap growth names such as Microsoft MSFT.O, Apple AAPL.O and Amazon.com AMZN.O rose between 1.1% and 2.2%, helping the tech-heavy Nasdaq .IXIC outperform peers. By Amruta Khandekar and Shristi Achar A Nov 7 (Reuters) - Wall Street's main indexes climbed on Tuesday following a choppy start to the session as falling U.S. Treasury yields supported megacap growth stocks, while investors awaited more commentary by Federal Reserve officials to gauge the interest rate path. While investors have priced in an end to the Fed's interest rate hiking cycle, concerns that the central bank will keep rates at their current level for longer have gripped markets following hawkish comments from some Fed officials. | Megacap growth names such as Microsoft MSFT.O, Apple AAPL.O and Amazon.com AMZN.O rose between 1.1% and 2.2%, helping the tech-heavy Nasdaq .IXIC outperform peers. By Amruta Khandekar and Shristi Achar A Nov 7 (Reuters) - Wall Street's main indexes climbed on Tuesday following a choppy start to the session as falling U.S. Treasury yields supported megacap growth stocks, while investors awaited more commentary by Federal Reserve officials to gauge the interest rate path. While investors have priced in an end to the Fed's interest rate hiking cycle, concerns that the central bank will keep rates at their current level for longer have gripped markets following hawkish comments from some Fed officials. | Megacap growth names such as Microsoft MSFT.O, Apple AAPL.O and Amazon.com AMZN.O rose between 1.1% and 2.2%, helping the tech-heavy Nasdaq .IXIC outperform peers. By Amruta Khandekar and Shristi Achar A Nov 7 (Reuters) - Wall Street's main indexes climbed on Tuesday following a choppy start to the session as falling U.S. Treasury yields supported megacap growth stocks, while investors awaited more commentary by Federal Reserve officials to gauge the interest rate path. While investors have priced in an end to the Fed's interest rate hiking cycle, concerns that the central bank will keep rates at their current level for longer have gripped markets following hawkish comments from some Fed officials. |
40 | 12,674 | 2023-11-06 00:00:00 UTC | Is ALPS (OUSA) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-alps-ousa-a-strong-etf-right-now-1 | null | null | Launched on 07/14/2015, the ALPS (OUSA) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by Alps, and has been able to amass over $633.25 million, which makes it one of the average sized ETFs in the Style Box - Large Cap Value. This particular fund seeks to match the performance of the FTSE US Qual / Vol / Yield Factor 5% Capped Index before fees and expenses.
The OShares U.S. Quality Dividend Index measures the performance of publicly-listed large-capitalization and mid-capitalization dividend-paying issuers in the United States.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.48% for OUSA, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.96%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 20.50% of the portfolio. Healthcare and Financials round out the top three.
Taking into account individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of the fund's total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL).
The top 10 holdings account for about 40.17% of total assets under management.
Performance and Risk
So far this year, OUSA has added roughly 2.13%, and was up about 14.35% in the last one year (as of 11/06/2023). During this past 52-week period, the fund has traded between $40.56 and $45.06.
The ETF has a beta of 0.87 and standard deviation of 14.38% for the trailing three-year period, making it a medium risk choice in the space. With about 101 holdings, it effectively diversifies company-specific risk.
Alternatives
ALPS is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $47.79 billion in assets, Vanguard Value ETF has $97.84 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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.
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ALPS (OUSA): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Taking into account individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of the fund's total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL). Click to get this free report ALPS (OUSA): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Launched on 07/14/2015, the ALPS (OUSA) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market. | Click to get this free report ALPS (OUSA): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of the fund's total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL). Sector Exposure and Top Holdings While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. | Click to get this free report ALPS (OUSA): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Taking into account individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of the fund's total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL). IShares Russell 1000 Value ETF (IWD) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. | Taking into account individual holdings, Home Depot Inc. (HD) accounts for about 5.07% of the fund's total assets, followed by Microsoft Corp. (MSFT) and Apple Inc. (AAPL). Click to get this free report ALPS (OUSA): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. The top 10 holdings account for about 40.17% of total assets under management. |
41 | 12,680 | 2023-11-05 00:00:00 UTC | Powell Speaks, Earnings and Other Key Themes to Watch This Week | AAPL | https://www.nasdaq.com/articles/powell-speaks-earnings-and-other-key-themes-to-watch-this-week | null | null | Dip buyers were back with a vengeance this week with S&P 500 ($SPX) (SPY) closing the week up almost 6%. Tesla (TSLA) and Nvidia (NVDA) also had fantastic weeks closing up 6% and 11% respectively. Outside of the Fed, perhaps the biggest news last week was the Apple (AAPL) earnings report. While they reported a top and bottom line beat, shares traded lower on Friday on another slowdown in sales. Apple being one of the largest component pieces of the S&P led to a lot of speculation about what it could mean in the long term.
This week looks to be a little less eventful than last week, but there are still plenty of things to go and watch out for. We have more earnings on deck, Powell talking again, Rising tensions in the Middle East, and plenty of other news. Here are five things to watch in the market this week.
Earnings
Tuesday morning we have Uber Technologies (UBER) out before the market opens. The ride-share giant could give us an insight into how the economy is truly working by looking at some of the metrics inside their report and by watching their forward guidance. Wednesday Disney (DIS) reports after the close and after a tough quarter with streaming and park attendance this report could be very telling.
Powell Speaking
Powell is due to speak both Wednesday and Thursday this week at different events around Washington DC. Anytime Powell speaks there is a risk for higher volatility in the market, especially recently as rate decisions become more and more important.
Rising Tensions
Tensions continue to rise not just in the Middle East, but also around the world as the conflict between Israel and Gaza continues to amplify. As each side continues to call on their potential allies, the possibility of a larger conflict could be rising. If that were to happen, we may start to see markets sell-off and oil rally. Any conflict between OPEC and the West could be bad not just for the markets but for consumers in general as they could use oil production as a key bargaining chip.
10 Year Auction
Rates never really left the public discourse, but now several cuts are being priced into the 2024 market. To look for potential confirmation of this, it would make sense to start to watch the Bond Auction results, specifically the 5 Year and longer for clues of potential cuts. Looking for how the Bid to Cover compares to previous auctions is a simple way to look for bond auction health. What you want to see is an increase or stability over time.
Unemployment Change
Finally, keep an eye out on the Unemployment Change this week that is due out Thursday morning. This has been steadily revised higher, which is in line with things like Non-Farm Payrolls and labor participation being revised lower. With data coming out so mixed lately, the Fed stating that current economic conditions are a reason to continue to pause, keeping an eye on unemployment could help provide some insight into where the overall economy is heading.
Best of luck this week and don’t forget to check out my daily options article.
More Stock Market News from Barchart
1 Small-Cap Stock Set to Double, According to Analysts
Should You Buy These Breakout Cathie Wood Stocks After Earnings?
Stock Market Risk from a Single Report
Stocks Rally as Treasury Yields Plunge on U.S. Unemployment Report
On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Outside of the Fed, perhaps the biggest news last week was the Apple (AAPL) earnings report. The ride-share giant could give us an insight into how the economy is truly working by looking at some of the metrics inside their report and by watching their forward guidance. Any conflict between OPEC and the West could be bad not just for the markets but for consumers in general as they could use oil production as a key bargaining chip. | Outside of the Fed, perhaps the biggest news last week was the Apple (AAPL) earnings report. Powell Speaking Powell is due to speak both Wednesday and Thursday this week at different events around Washington DC. Rising Tensions Tensions continue to rise not just in the Middle East, but also around the world as the conflict between Israel and Gaza continues to amplify. | Outside of the Fed, perhaps the biggest news last week was the Apple (AAPL) earnings report. This week looks to be a little less eventful than last week, but there are still plenty of things to go and watch out for. More Stock Market News from Barchart 1 Small-Cap Stock Set to Double, According to Analysts Should You Buy These Breakout Cathie Wood Stocks After Earnings? | Outside of the Fed, perhaps the biggest news last week was the Apple (AAPL) earnings report. Here are five things to watch in the market this week. For more information please view the Barchart Disclosure Policy here. |
42 | 12,686 | 2023-11-04 00:00:00 UTC | Buffett's Berkshire has bigger loss as stocks fall; operating profit sets record | AAPL | https://www.nasdaq.com/articles/buffetts-berkshire-has-bigger-loss-as-stocks-fall-operating-profit-sets-record | null | null | Adds details from results
Nov 4 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N on Saturday posted its first overall quarterly loss in a year as the prices of Apple AAPL.O and other stocks it owns fell, but said improvement inits insurance operations boosted operating profit to a record.
Though its businesses fared better overall, Berkshire signaled caution about valuations, as its cash stake swelled to a record $157.2 billion in the third quarter, when it sold $5.3 billion more stocks than it bought.
Berkshire also slowed repurchases of its own stock, buying back $1.1 billion in the third quarter.
Investors watch Berkshire closely because its results often reflect broader economic trends, and because of Buffett's reputation as an investor.
The third-quarter net loss more than quadrupled to $12.77 billion, or $8,824 per Class A share, from $2.8 billion a year earlier.
Results included $23.5 billion of losses from investments, primarily reflecting a 12% decline in the stock price of Apple, in which Berkshire had owned a $177.6 billion stake.
Berkshire's net results swing widely from quarter to quarter because accounting rules require the company to report investment gains and losses even if it buys and sells nothing. Buffett says the resulting volatility is usually meaningless.
Operating profit rose 41% to $10.76 billion, or $7,444 per Class A share, from $7.65 billion a year earlier.
Insurance operations generated $4.89 billion of profit, as the Geico car insurer and reinsurance businesses made money after posting losses in 2022, while rising interest rates boosted income generated from U.S. Treasuries.
Berkshire also benefited from a relatively quiet Atlantic hurricane season, which reduced catastrophe losses, unlike in 2022 when it lost $2.7 billion from Hurricane Ian.
The conglomerate also owns dozens of other businesses including the BNSF railroad, several energy companies, Dairy Queen ice cream, Duracell batteries, Fruit of the Loom underwear and See's candies.
Buffett, 93, has run Berkshire since 1965. His $117.5 billion net worth ranks fifth worldwide according to Forbes magazine.
Berkshire shares are up 14% this year, matching the Standard & Poor's 500 .SPX.
(Reporting by Jonathan Stempel in New York; editing by Jason Neely)
(([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. | Adds details from results Nov 4 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N on Saturday posted its first overall quarterly loss in a year as the prices of Apple AAPL.O and other stocks it owns fell, but said improvement inits insurance operations boosted operating profit to a record. Berkshire also slowed repurchases of its own stock, buying back $1.1 billion in the third quarter. The conglomerate also owns dozens of other businesses including the BNSF railroad, several energy companies, Dairy Queen ice cream, Duracell batteries, Fruit of the Loom underwear and See's candies. | Adds details from results Nov 4 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N on Saturday posted its first overall quarterly loss in a year as the prices of Apple AAPL.O and other stocks it owns fell, but said improvement inits insurance operations boosted operating profit to a record. Operating profit rose 41% to $10.76 billion, or $7,444 per Class A share, from $7.65 billion a year earlier. Insurance operations generated $4.89 billion of profit, as the Geico car insurer and reinsurance businesses made money after posting losses in 2022, while rising interest rates boosted income generated from U.S. Treasuries. | Adds details from results Nov 4 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N on Saturday posted its first overall quarterly loss in a year as the prices of Apple AAPL.O and other stocks it owns fell, but said improvement inits insurance operations boosted operating profit to a record. Though its businesses fared better overall, Berkshire signaled caution about valuations, as its cash stake swelled to a record $157.2 billion in the third quarter, when it sold $5.3 billion more stocks than it bought. Results included $23.5 billion of losses from investments, primarily reflecting a 12% decline in the stock price of Apple, in which Berkshire had owned a $177.6 billion stake. | Adds details from results Nov 4 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N on Saturday posted its first overall quarterly loss in a year as the prices of Apple AAPL.O and other stocks it owns fell, but said improvement inits insurance operations boosted operating profit to a record. The third-quarter net loss more than quadrupled to $12.77 billion, or $8,824 per Class A share, from $2.8 billion a year earlier. Buffett says the resulting volatility is usually meaningless. |
43 | 12,699 | 2023-11-03 00:00:00 UTC | GLOBAL MARKETS-Stocks gain, Treasury yields fall after U.S. jobs market softens | AAPL | https://www.nasdaq.com/articles/global-markets-stocks-gain-treasury-yields-fall-after-u.s.-jobs-market-softens | null | null | *
U.S. stocks higher in late morning trading
*
U.S. job growth slower than expected in Oct
*
Oil prices lower
(Updates with late morning U.S. markets activity, adds NEW YORK dateline)
By Caroline Valetkevitch and Harry Robertson
NEW YORK/LONDON, Nov 3 (Reuters) - Global stock indexes rose, the dollar weakened and benchmark 10-year U.S. Treasury yields fell to five-week lows on Friday after data showed U.S. job growth slowed more than expected in October, underscoring views that the Federal Reserve may be done hiking interest rates.
Two-year yields also were the lowest since early September after the data, which showed U.S. job growth slowed in part as strikes by the United Auto Workers (UAW) union against Detroit's "Big Three" car makers depressed manufacturing payrolls.
The data also showed the increase in annual wages was the smallest in nearly 2-1/2 years, pointing to an easing in labor market conditions.
"The good news here is that the slowdown will likely keep the Fed on the sidelines going forward," said Brad McMillan, chief investment officer for Commonwealth Financial Network in Waltham, Massachusetts.
"One of their key concerns has been an overheated economy, especially after last quarter's GDP growth, and this suggests that problem is going away."
Wednesday's U.S. central bank decision to leave rates unchanged and comments by Fed Chair Jerome Powell indicated to some investors that the Fed may be done raising rates. The Bank of England on Thursday also left rates unchanged.
Central bank officials however stressed that more may need to be done to tackle inflation.
Benchmark 10-year yields fell as low as 4.527%, the lowest since Sept. 29. Two-year note yields reached 4.847%, the lowest since Sept. 1.
A decision on Wednesday by the U.S. Treasury to issue less long-term debt than expected also fuelled the rally in bonds, as did data on Thursday suggesting the U.S. economy might finally be cooling.
The Dow Jones Industrial Average rose 171.28 points, or 0.51%, to 34,010.36, the S&P 500 gained 35.58 points, or 0.82%, to 4,353.36 and the Nasdaq Composite added 129.78 points, or 0.98%, to 13,423.97.
Apple shares were down 1.4%, a day after the company reported quarterly results and warned of a dull holiday quarter.
The pan-European STOXX 600 index rose 0.23% and MSCI's gauge of stocks across the globe gained 1.07%.
The dollar index fell 0.942%, with the euro up 0.93% to $1.0719.
The Japanese yen strengthened 0.65% versus the greenback at 149.45 per dollar, while Sterling was last trading at $1.2345, up 1.18% on the day.
In commodities, U.S. crude recently fell 1.55% to $81.18 per barrel and Brent was at $85.53, down 1.52% on the day.
Spot gold added 0.4% to $1,993.82 an ounce.
http://tmsnrt.rs/2egbfVh Global asset performance
http://tmsnrt.rs/2yaDPgn Asian stock markets
https://tmsnrt.rs/2zpUAr4 World stocks set for biggest weekly rise in a year
https://tmsnrt.rs/3SsLId4
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Caroline Valetkevitch in New York and Harry Robertson in London; additional reporting by Chibuike Oguh in New York; editing by Jacqueline Wong, Miral Fahmy, Alison Williams and Mark Heinrich) (([email protected])) ((To read Reuters Markets and Finance news, click on https://www.reuters.com/finance/markets For the state of play of Asian stock markets please click on: )) Keywords: GLOBAL MARKETS/ (WRAPUP 4, PIX)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | * U.S. stocks higher in late morning trading * U.S. job growth slower than expected in Oct * Oil prices lower (Updates with late morning U.S. markets activity, adds NEW YORK dateline) By Caroline Valetkevitch and Harry Robertson NEW YORK/LONDON, Nov 3 (Reuters) - Global stock indexes rose, the dollar weakened and benchmark 10-year U.S. Treasury yields fell to five-week lows on Friday after data showed U.S. job growth slowed more than expected in October, underscoring views that the Federal Reserve may be done hiking interest rates. Two-year yields also were the lowest since early September after the data, which showed U.S. job growth slowed in part as strikes by the United Auto Workers (UAW) union against Detroit's "Big Three" car makers depressed manufacturing payrolls. http://tmsnrt.rs/2egbfVh Global asset performance http://tmsnrt.rs/2yaDPgn Asian stock markets https://tmsnrt.rs/2zpUAr4 World stocks set for biggest weekly rise in a year https://tmsnrt.rs/3SsLId4 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Caroline Valetkevitch in New York and Harry Robertson in London; additional reporting by Chibuike Oguh in New York; editing by Jacqueline Wong, Miral Fahmy, Alison Williams and Mark Heinrich) (([email protected])) ((To read Reuters Markets and Finance news, click on https://www.reuters.com/finance/markets For the state of play of Asian stock markets please click on: )) Keywords: GLOBAL MARKETS/ (WRAPUP 4, PIX) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | * U.S. stocks higher in late morning trading * U.S. job growth slower than expected in Oct * Oil prices lower (Updates with late morning U.S. markets activity, adds NEW YORK dateline) By Caroline Valetkevitch and Harry Robertson NEW YORK/LONDON, Nov 3 (Reuters) - Global stock indexes rose, the dollar weakened and benchmark 10-year U.S. Treasury yields fell to five-week lows on Friday after data showed U.S. job growth slowed more than expected in October, underscoring views that the Federal Reserve may be done hiking interest rates. Two-year yields also were the lowest since early September after the data, which showed U.S. job growth slowed in part as strikes by the United Auto Workers (UAW) union against Detroit's "Big Three" car makers depressed manufacturing payrolls. http://tmsnrt.rs/2egbfVh Global asset performance http://tmsnrt.rs/2yaDPgn Asian stock markets https://tmsnrt.rs/2zpUAr4 World stocks set for biggest weekly rise in a year https://tmsnrt.rs/3SsLId4 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Caroline Valetkevitch in New York and Harry Robertson in London; additional reporting by Chibuike Oguh in New York; editing by Jacqueline Wong, Miral Fahmy, Alison Williams and Mark Heinrich) (([email protected])) ((To read Reuters Markets and Finance news, click on https://www.reuters.com/finance/markets For the state of play of Asian stock markets please click on: )) Keywords: GLOBAL MARKETS/ (WRAPUP 4, PIX) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | * U.S. stocks higher in late morning trading * U.S. job growth slower than expected in Oct * Oil prices lower (Updates with late morning U.S. markets activity, adds NEW YORK dateline) By Caroline Valetkevitch and Harry Robertson NEW YORK/LONDON, Nov 3 (Reuters) - Global stock indexes rose, the dollar weakened and benchmark 10-year U.S. Treasury yields fell to five-week lows on Friday after data showed U.S. job growth slowed more than expected in October, underscoring views that the Federal Reserve may be done hiking interest rates. Wednesday's U.S. central bank decision to leave rates unchanged and comments by Fed Chair Jerome Powell indicated to some investors that the Fed may be done raising rates. http://tmsnrt.rs/2egbfVh Global asset performance http://tmsnrt.rs/2yaDPgn Asian stock markets https://tmsnrt.rs/2zpUAr4 World stocks set for biggest weekly rise in a year https://tmsnrt.rs/3SsLId4 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Caroline Valetkevitch in New York and Harry Robertson in London; additional reporting by Chibuike Oguh in New York; editing by Jacqueline Wong, Miral Fahmy, Alison Williams and Mark Heinrich) (([email protected])) ((To read Reuters Markets and Finance news, click on https://www.reuters.com/finance/markets For the state of play of Asian stock markets please click on: )) Keywords: GLOBAL MARKETS/ (WRAPUP 4, PIX) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | * U.S. stocks higher in late morning trading * U.S. job growth slower than expected in Oct * Oil prices lower (Updates with late morning U.S. markets activity, adds NEW YORK dateline) By Caroline Valetkevitch and Harry Robertson NEW YORK/LONDON, Nov 3 (Reuters) - Global stock indexes rose, the dollar weakened and benchmark 10-year U.S. Treasury yields fell to five-week lows on Friday after data showed U.S. job growth slowed more than expected in October, underscoring views that the Federal Reserve may be done hiking interest rates. "One of their key concerns has been an overheated economy, especially after last quarter's GDP growth, and this suggests that problem is going away." The dollar index fell 0.942%, with the euro up 0.93% to $1.0719. |
44 | 12,760 | 2023-11-02 00:00:00 UTC | After Hours Most Active for Nov 2, 2023 : PENN, SQ, RSI, AAPL, GOOG, PFE, CSX, DKNG, QQQ, NU, RTX, BAC | AAPL | https://www.nasdaq.com/articles/after-hours-most-active-for-nov-2-2023-%3A-penn-sq-rsi-aapl-goog-pfe-csx-dkng-qqq-nu-rtx-bac | null | null | The NASDAQ 100 After Hours Indicator is down -58.11 to 14,861.44. The total After hours volume is currently 105,099,532 shares traded.
The following are the most active stocks for the after hours session:
PENN Entertainment, Inc. (PENN) is -0.1 at $22.24, with 8,080,912 shares traded. PENN's current last sale is 76.69% of the target price of $29.
Block, Inc. (SQ) is +7.88 at $51.86, with 3,936,780 shares traded. Smarter Analyst Reports: Marqeta Expands Partnership with Klarna Bank; Shares Gain 6.5% Pre-Market
Rush Street Interactive, Inc. (RSI) is +0.01 at $3.76, with 3,006,060 shares traded. As reported by Zacks, the current mean recommendation for RSI is in the "buy range".
Apple Inc. (AAPL) is +0.46 at $178.03, with 2,821,500 shares traded. Smarter Analyst Reports: Wednesday’s Pre-Market: Here’s What You Need to Know Before the Market Opens
Alphabet Inc. (GOOG) is -0.18 at $128.40, with 2,812,856 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024. The consensus EPS forecast is $1.66. As reported by Zacks, the current mean recommendation for GOOG is in the "buy range".
Pfizer, Inc. (PFE) is unchanged at $30.50, with 2,742,710 shares traded. PFE's current last sale is 80.26% of the target price of $38.
CSX Corporation (CSX) is -0.1859 at $30.20, with 2,446,480 shares traded. As reported by Zacks, the current mean recommendation for CSX is in the "buy range".
DraftKings Inc. (DKNG) is +2.65 at $31.63, with 2,430,448 shares traded. Smarter Analyst Reports: DraftKings, NFLPA to Launch Gamified NFT; Shares Rise 2%
Invesco QQQ Trust, Series 1 (QQQ) is -0.57 at $362.87, with 2,251,073 shares traded. This represents a 40.06% increase from its 52 Week Low.
Nu Holdings Ltd. (NU) is -0.07 at $8.16, with 2,064,401 shares traded. As reported by Zacks, the current mean recommendation for NU is in the "buy range".
RTX Corporation (RTX) is unchanged at $82.78, with 2,000,624 shares traded. RTX's current last sale is 96.82% of the target price of $85.5.
Bank of America Corporation (BAC) is -0.04 at $27.58, with 1,764,230 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2024. The consensus EPS forecast is $0.83. BAC's current last sale is 81.12% of the target price of $34.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Inc. (AAPL) is +0.46 at $178.03, with 2,821,500 shares traded. Smarter Analyst Reports: Marqeta Expands Partnership with Klarna Bank; Shares Gain 6.5% Pre-Market Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024. | Apple Inc. (AAPL) is +0.46 at $178.03, with 2,821,500 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024. Smarter Analyst Reports: DraftKings, NFLPA to Launch Gamified NFT; Shares Rise 2% | Apple Inc. (AAPL) is +0.46 at $178.03, with 2,821,500 shares traded. The total After hours volume is currently 105,099,532 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024. | Apple Inc. (AAPL) is +0.46 at $178.03, with 2,821,500 shares traded. The NASDAQ 100 After Hours Indicator is down -58.11 to 14,861.44. Smarter Analyst Reports: DraftKings, NFLPA to Launch Gamified NFT; Shares Rise 2% |
45 | 12,766 | 2023-11-01 00:00:00 UTC | Apple's (AAPL) Q4 Earnings to Suffer from Weak Mac & iPad Sales | AAPL | https://www.nasdaq.com/articles/apples-aapl-q4-earnings-to-suffer-from-weak-mac-ipad-sales | null | null | Apple’s AAPL fourth-quarter fiscal 2023 results, to be reported on Nov 2, are expected to reflect the impacts of the sluggishness in the Mac and iPad shipments, as well as slowing momentum in the Services business.
Apple expects revenues for both Mac and iPad to decline double digits on a year-over-year basis in the to-be-reported quarter.
Our model estimates for fiscal fourth-quarter Mac and iPad revenues are pegged at $7.88 billion and $5.82 billion, indicating 31.5% and 18.8% year-over-year decline, respectively.
We estimate Mac and iPad shipments of roughly 6 million and 14.3 million, respectively.
Mac revenues are expected to have suffered from weak PC demand. Per Gartner’s latest report, 64.279 million PCs were shipped in the third quarter (September-end) of 2023, down 9% from the year-ago period.
Apple Inc. Revenue (TTM)
Apple Inc. revenue-ttm | Apple Inc. Quote
Shipments from Apple, Lenovo LNVGY and Dell Technologies DELL declined 24.2%, 4.4% and 14.2%, respectively. HP’s HPQ shipment grew 6.4%, the only vendor in the list to witness growth.
Overall, Lenovo remained the top vendor, with a market share of 25.1%. HP holds the second spot, with a market share of 21% in worldwide PC shipments. Dell’s market share was 16.1% in the third quarter of 2023.
Apple’s market share decreased from 11.7% in third-quarter 2022 to 9.7% in third-quarter 2023.
In fact, Apple’s non-iPhone portfolio, which comprises Mac, iPad and Wearables, is expected to have declined in the fiscal fourth quarter.
Our model estimates Wearables, Home & Accessories revenues of $9.2 billion, suggesting a 4.7% year-over-year decline.
Click here to know how Apple’s overall fiscal fourth-quarter results are likely to be.
Slowing Momentum at Services Key Concern
Apple’s growing dependence on Services business for growth is a concern. The segment, which includes revenues from the App Store, Apple Music, iCloud, Apple Arcade, Apple TV+, Apple News+ and Apple Card, accounted for 25.9% of sales in third-quarter fiscal 2023.
Although Apple’s business primarily runs around its flagship iPhone, the Services portfolio has emerged as the company’s new cash cow.
Apple had more than 1 billion paid subscribers across its Services portfolio at the end of the fiscal third quarter. This is expected to have increased in the to-be-reported quarter, thanks to the growing installed base of Apple’s devices, as well as the popularity of apps like Apple TV+.
This Zacks Rank #3 (Hold) company expects Services revenue growth to accelerate compared with the June quarter. Services revenues grew 8.2% year over year to $21.21 billion in the fiscal third quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our model estimates for Services revenues are pegged at $20.39 billion, indicating 6.3% year-over-year growth.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple’s AAPL fourth-quarter fiscal 2023 results, to be reported on Nov 2, are expected to reflect the impacts of the sluggishness in the Mac and iPad shipments, as well as slowing momentum in the Services business. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple expects revenues for both Mac and iPad to decline double digits on a year-over-year basis in the to-be-reported quarter. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple’s AAPL fourth-quarter fiscal 2023 results, to be reported on Nov 2, are expected to reflect the impacts of the sluggishness in the Mac and iPad shipments, as well as slowing momentum in the Services business. Our model estimates for fiscal fourth-quarter Mac and iPad revenues are pegged at $7.88 billion and $5.82 billion, indicating 31.5% and 18.8% year-over-year decline, respectively. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple’s AAPL fourth-quarter fiscal 2023 results, to be reported on Nov 2, are expected to reflect the impacts of the sluggishness in the Mac and iPad shipments, as well as slowing momentum in the Services business. Apple Inc. Revenue (TTM) Apple Inc. revenue-ttm | Apple Inc. Quote Shipments from Apple, Lenovo LNVGY and Dell Technologies DELL declined 24.2%, 4.4% and 14.2%, respectively. | Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple’s AAPL fourth-quarter fiscal 2023 results, to be reported on Nov 2, are expected to reflect the impacts of the sluggishness in the Mac and iPad shipments, as well as slowing momentum in the Services business. Apple expects revenues for both Mac and iPad to decline double digits on a year-over-year basis in the to-be-reported quarter. |
46 | 12,807 | 2023-10-31 00:00:00 UTC | Could 7 tech giants drag down the broader market? | AAPL | https://www.nasdaq.com/articles/could-7-tech-giants-drag-down-the-broader-market | null | null | You don't hear so much about the Magnificent Seven tech stocks anymore as the S&P 500 has been selling off since August.
That group consists of Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Alphabet Inc. (NASDAQ: GOOGL), Amazon.com Inc. (NASDAQ: AMZN), Nvidia Corp. (NASDAQ: NVDA), Tesla Inc. (NASDAQ: TSLA) and Meta Platforms Inc. (NASDAQ: META).
Together, those seven growth stocks are responsible for the bulk of the S&P 500's 9.23% year-to-gain. As you can imagine, they're all heavily weighted in the S&P 500.
Now that earnings season is upon us, the market will get more insight into whether these stocks will continue driving a rally.
However, because of their heavy influence over the broader S&P 500, the maybe-not-so-magnificent-after-all Seven have the potential to drag down the broader index.
The market has been down this exact same road, and not that long ago. A look at the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) chart shows the index rolling over just at the beginning of 2022, following a huge pandemic-era uptrend.
Techs led the market lower in 2022
As tech stocks sold off in 2022, they led the broader market.
Is history about to repeat?
As of now, the divergence between their performance is showing up. Alphabet earnings beat views, but the stock is still down nearly 10% in the past week as revenue at its cloud business came in below estimates.
Meanwhile, Microsoft's earnings report indicated that AI is contributing to its cloud-business growth, as the company is seeing rising demand for AI tools.
Microsoft stock is up less than 1% for the week.
Fading EV boom drives Tesla lower
Tesla earnings and revenue missed views as the EV boom is fading. The stock fell 15.58% the week ending October 20 and another 2.58% the following week.
Meta earnings and revenue also exceed Wall Street views, although it also issued conservative guidance, causing the slide to slide 4.25% for the week.
Apple reports on November 2, and AI chip titan Nvidia is due to report on November 21.
There's no question about the profitability of any of those companies, but guidance could make an impact, as we've seen.
Meta and Alphabet are the top two most heavily weighted stocks in the Communication Services Select Sector SPDR Fund (NYSEARCA: XLC), which was down 5.13% the week ending October 27. Those two stocks drove communications stocks as a group lower.
Microsoft, Apple and Nvidia are among the top-weighted stocks in the Technology Select Sector SPDR Fund (NYSEARCA: XLK), which was down 1.17% the week ended October 27.
Higher yields could hurt techs
The tech sector is down 1.10% in the past month.
One factor that could result in a continued downturn is higher interest rates and Treasury yields, a result of Federal Reserve actions and concerns over the broader economy.
Technology and growth stocks are vulnerable to higher bond yields due to those stocks' long-term earnings potential.
When bond yields rise, fixed-income investments become more attractive, causing investors to sell high-valuation tech stocks in favor of bonds, where they can make more money.
Higher yields also increase borrowing costs for growth companies, impacting their profitability, which in turn causes stock prices to drop.
Are investors selling techs in favor of bonds?
In addition, growth and tech companies are more vulnerable to higher yields, as their typically robust projected future cash flows are valued less highly when investors can earn more from risk-free government bonds.
In other words, can a musty old asset class like bonds put growth and tech returns at risk? In this particular environment, it's a possibility.
The yield on the benchmark 10-year Treasury was 4.86% on October 27, the highest level since 2007.
Higher rates, while not yet demonstrably affecting consumer spending, may yet have that effect. Recently, Tesla CEO Elon Musk Tesla said he believed higher interest rates could put a damper on car buying.
Higher rates can hurt the broader economy by increasing the cost of borrowing for businesses and consumers, which can lead to reduced investments, spending, and economic growth. It's possible the pain could spread well beyond the Magnificent Stocks.
The article "Could 7 tech giants drag down the broader market?" originally appeared on MarketBeat.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | That group consists of Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Alphabet Inc. (NASDAQ: GOOGL), Amazon.com Inc. (NASDAQ: AMZN), Nvidia Corp. (NASDAQ: NVDA), Tesla Inc. (NASDAQ: TSLA) and Meta Platforms Inc. (NASDAQ: META). Meta and Alphabet are the top two most heavily weighted stocks in the Communication Services Select Sector SPDR Fund (NYSEARCA: XLC), which was down 5.13% the week ending October 27. In addition, growth and tech companies are more vulnerable to higher yields, as their typically robust projected future cash flows are valued less highly when investors can earn more from risk-free government bonds. | That group consists of Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Alphabet Inc. (NASDAQ: GOOGL), Amazon.com Inc. (NASDAQ: AMZN), Nvidia Corp. (NASDAQ: NVDA), Tesla Inc. (NASDAQ: TSLA) and Meta Platforms Inc. (NASDAQ: META). Fading EV boom drives Tesla lower Tesla earnings and revenue missed views as the EV boom is fading. Technology and growth stocks are vulnerable to higher bond yields due to those stocks' long-term earnings potential. | That group consists of Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Alphabet Inc. (NASDAQ: GOOGL), Amazon.com Inc. (NASDAQ: AMZN), Nvidia Corp. (NASDAQ: NVDA), Tesla Inc. (NASDAQ: TSLA) and Meta Platforms Inc. (NASDAQ: META). Techs led the market lower in 2022 As tech stocks sold off in 2022, they led the broader market. Technology and growth stocks are vulnerable to higher bond yields due to those stocks' long-term earnings potential. | That group consists of Apple Inc. (NASDAQ: AAPL), Microsoft Corp. (NASDAQ: MSFT), Alphabet Inc. (NASDAQ: GOOGL), Amazon.com Inc. (NASDAQ: AMZN), Nvidia Corp. (NASDAQ: NVDA), Tesla Inc. (NASDAQ: TSLA) and Meta Platforms Inc. (NASDAQ: META). Alphabet earnings beat views, but the stock is still down nearly 10% in the past week as revenue at its cloud business came in below estimates. Meta and Alphabet are the top two most heavily weighted stocks in the Communication Services Select Sector SPDR Fund (NYSEARCA: XLC), which was down 5.13% the week ending October 27. |
47 | 12,825 | 2023-10-30 00:00:00 UTC | US STOCKS-Futures jump as investors await Fed rate verdict; Middle East tensions eyed | AAPL | https://www.nasdaq.com/articles/us-stocks-futures-jump-as-investors-await-fed-rate-verdict-middle-east-tensions-eyed | null | null | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.55%, S&P 0.70%, Nasdaq 0.87%
Oct 30 (Reuters) - U.S. stock index futures climbed on Monday as tensions in the Middle East failed to dampen investor sentiment ahead of a busy week full of earnings reports and an interest rate decision from the Federal Reserve.
Israeli troops stepped up ground operations in Gaza early on Monday, with Palestinians in the enclave reporting fierce air and artillery strikes as the conflict entered its fourth week.
However, the clashes had little impact on U.S. stock markets, with megacap growth names such as Nvidia NVDA.O, Amazon.com AMZN.O and Tesla TSLA.O up between 0.9% and 1.6% in premarket trading.
"The ground offensive in Gaza will still be causing some concern, but it has been largely expected and that's why I don't think you've seen any kind of particularly adverse reaction on the markets today," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
"In the United States, the emphasis has returned to the resilience within the U.S. economy and that being a good thing rather than as an indicator that there could be a rate hike."
Geopolitical concerns as well as a surge in Treasury yields have weighed on U.S. equities this month, dragging the benchmark S&P 500 .SPX down over 10% from its intraday high in July.
On Monday, the yield on the ten-year note US10YT=RR was at 4.86%, after having breached the 5% level earlier this month.
Adding to bond market worries, the U.S. Treasury is likely to boost the size of auctions for bills, notes, and bonds in the fourth quarter when it announces its financing plans this week to fund a worsening budget deficit. A subsequent rise in yields may further pressure stocks.
With inflation gradually easing in the United States, the Federal Reserve is widely expected to keep interest rates unchanged at the end of its policy meeting on Nov. 1, according to the CME Group's Fedwatch tool.
However, certain parts of the economy have proved to be resilient, spurring concerns that the central bank could signal willingness to hold rates at their current level for longer than previously anticipated.
A fresh batch of data on the U.S. economy this week, ending with the October's non-farm payrolls report on Friday, will be on the watchlist for further cues on the Fed's monetary policy path.
Investors also await quarterly results from companies including McDonald's MCD.N, Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.N, with the third-quarter earnings season having reached the halfway point.
At 5:22 a.m. ET, Dow e-minis 1YMcv1 were up 178 points, or 0.55%, S&P 500 e-minis EScv1 were up 29 points, or 0.7%, and Nasdaq 100 e-minis NQcv1 were up 123.5 points, or 0.87%.
Among individual stocks, Coherus Biosciences CHRS.O jumped 15.2% in premarket trade as the U.S. health regulator approved the company's treatment for nasopharyngeal cancer.
(Reporting by Amruta Khandekar; Editing by Maju Samuel)
(([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. | Investors also await quarterly results from companies including McDonald's MCD.N, Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.N, with the third-quarter earnings season having reached the halfway point. Israeli troops stepped up ground operations in Gaza early on Monday, with Palestinians in the enclave reporting fierce air and artillery strikes as the conflict entered its fourth week. With inflation gradually easing in the United States, the Federal Reserve is widely expected to keep interest rates unchanged at the end of its policy meeting on Nov. 1, according to the CME Group's Fedwatch tool. | Investors also await quarterly results from companies including McDonald's MCD.N, Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.N, with the third-quarter earnings season having reached the halfway point. Futures up: Dow 0.55%, S&P 0.70%, Nasdaq 0.87% Oct 30 (Reuters) - U.S. stock index futures climbed on Monday as tensions in the Middle East failed to dampen investor sentiment ahead of a busy week full of earnings reports and an interest rate decision from the Federal Reserve. With inflation gradually easing in the United States, the Federal Reserve is widely expected to keep interest rates unchanged at the end of its policy meeting on Nov. 1, according to the CME Group's Fedwatch tool. | Investors also await quarterly results from companies including McDonald's MCD.N, Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.N, with the third-quarter earnings season having reached the halfway point. Futures up: Dow 0.55%, S&P 0.70%, Nasdaq 0.87% Oct 30 (Reuters) - U.S. stock index futures climbed on Monday as tensions in the Middle East failed to dampen investor sentiment ahead of a busy week full of earnings reports and an interest rate decision from the Federal Reserve. "The ground offensive in Gaza will still be causing some concern, but it has been largely expected and that's why I don't think you've seen any kind of particularly adverse reaction on the markets today," said Susannah Streeter, head of money and markets at Hargreaves Lansdown. | Investors also await quarterly results from companies including McDonald's MCD.N, Apple AAPL.O, Pfizer PFE.N and Eli Lilly LLY.N, with the third-quarter earnings season having reached the halfway point. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. "In the United States, the emphasis has returned to the resilience within the U.S. economy and that being a good thing rather than as an indicator that there could be a rate hike." |
48 | 12,866 | 2023-10-29 00:00:00 UTC | If You Had Invested $10,000 in Apple When the iPhone Came Out, This Is How Much You Would Have Today | AAPL | https://www.nasdaq.com/articles/if-you-had-invested-%2410000-in-apple-when-the-iphone-came-out-this-is-how-much-you-would | null | null | There's no question that Apple's (NASDAQ: AAPL) iPhone has changed the world. The device, which was the first touchscreen-based smartphone, ushered in the mobile computing era. At this point, it's responsible for well more than $1 trillion in revenue for Apple -- and with high margins.
From a business perspective, the iPhone is one of the most successful products in history, and 16 years later, it still underpins Apple's tech empire today. The smartphone is bolstered by complementary devices like AirPods and the Apple Watch, as well as its services business, which has driven much of the company's profit growth in recent years.
To give a sense of how transformative the iPhone has been for Apple, the chart below shows how the stock has done since its iconic smartphone was released.
AAPL data by YCharts
With a return of 3,830%, if you had invested $10,000 in Apple on June 29, 2007, you would now have $383,000, With dividends reinvested, that figure would improve to $469,000. That's a life-changing result from one investment, and Apple's gain since the debut of the iPhone offers a number of lessons for investors.
Breakthrough products can produce transformative returns
It would have been hard to know how successful the iPhone would go on to be when it was first released, but there were some clues.
The device that preceded it -- the iPod -- was also a breakthrough product in music, becoming the de facto MP3 player. As a result, Apple's new phone was highly anticipated. Once it came out, users largely raved about it at the time. It was evident that the iPhone was something new, combining much of the utility of a computer with the portability and convenience of a cellphone. Additionally, there was plenty of hype heading into its release.
Predicting its future revenue and profits would have been impossible, but some of the signs of its success seem clear in retrospect. As an investor, it can be easy to overthink things, but sometimes the seemingly obvious choice is the right one. If you see a product that looks like it could be a big success, investing in the parent company could be a winning move.
Image source: Getty Images.
New products don't immediately move the needle
It would take a few years for the tech stock to consistently move higher following the release of the iPhone, which was partly due to the impact of the financial crisis and the stock market crash. However, it would also take years for the iPhone to become Apple's biggest product and therefore move the needle on the bottom line.
In other words, to invest in Apple successfully back then, you needed to have the foresight to see how impactful the iPhone could be, but also the patience to wait out the volatility as the device gained momentum.
Can the Vision Pro do it again?
Apple is set to have another big product release -- arguably its biggest since the iPhone -- early next year when the Vision Pro goes on sale. The Mac maker introduced its new spatial computing headset back in June at its developer conference. It will sport a price tag of $3,500.
At this point, it's unclear how the Vision Pro will fare with the general public, because no one has tried the device yet. However, it does have the potential to kick off the next generation of computing, similar to how the iPhone heralded the start of the mobile computing era.
The major difference between Apple today and Apple in 2007, when the iPhone came out, is its size. Today, the company has a market capitalization of nearly $3 trillion, while it was just a fraction of that size in 2007 at roughly $100 billion.
That means it will be much more difficult for a single product to have the kind of impact that the iPhone did. However, investors will want to pay attention to the early response to the Vision Pro since the new device certainly has the potential to move the stock. It just won't turn $10,000 into $383,000 the way that the iPhone did.
10 stocks we like better than Apple
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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool 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. | There's no question that Apple's (NASDAQ: AAPL) iPhone has changed the world. AAPL data by YCharts With a return of 3,830%, if you had invested $10,000 in Apple on June 29, 2007, you would now have $383,000, With dividends reinvested, that figure would improve to $469,000. The smartphone is bolstered by complementary devices like AirPods and the Apple Watch, as well as its services business, which has driven much of the company's profit growth in recent years. | There's no question that Apple's (NASDAQ: AAPL) iPhone has changed the world. AAPL data by YCharts With a return of 3,830%, if you had invested $10,000 in Apple on June 29, 2007, you would now have $383,000, With dividends reinvested, that figure would improve to $469,000. Apple is set to have another big product release -- arguably its biggest since the iPhone -- early next year when the Vision Pro goes on sale. | There's no question that Apple's (NASDAQ: AAPL) iPhone has changed the world. AAPL data by YCharts With a return of 3,830%, if you had invested $10,000 in Apple on June 29, 2007, you would now have $383,000, With dividends reinvested, that figure would improve to $469,000. New products don't immediately move the needle It would take a few years for the tech stock to consistently move higher following the release of the iPhone, which was partly due to the impact of the financial crisis and the stock market crash. | There's no question that Apple's (NASDAQ: AAPL) iPhone has changed the world. AAPL data by YCharts With a return of 3,830%, if you had invested $10,000 in Apple on June 29, 2007, you would now have $383,000, With dividends reinvested, that figure would improve to $469,000. At this point, it's responsible for well more than $1 trillion in revenue for Apple -- and with high margins. |
49 | 12,870 | 2023-10-28 00:00:00 UTC | Verizon's Stock Is Now Too Good to Pass Up | AAPL | https://www.nasdaq.com/articles/verizons-stock-is-now-too-good-to-pass-up | null | null | Verizon's (NYSE: VZ) period of worsening cash flow and investment in the 5G network is turning around, and the cash flow machine is starting to work in overdrive. Third-quarter 2023 results showed continued improvements across the board for the business, and the single-digit price-to-earnings multiple and dividend yield of over 7% now seem too good to pass up.
In this video, Travis Hoium goes over the results and covers why he's so bullish on the stock.
*Stock prices used were end-of-day prices of Oct. 24, 2023. The video was published on Oct. 25, 2023.
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Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool has positions in and recommends Apple and Walt Disney. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Third-quarter 2023 results showed continued improvements across the board for the business, and the single-digit price-to-earnings multiple and dividend yield of over 7% now seem too good to pass up. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Verizon Communications wasn't one of them! | See the 10 stocks *Stock Advisor returns as of October 23, 2023 Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool has positions in and recommends Apple and Walt Disney. The Motley Fool recommends Verizon Communications. | 10 stocks we like better than Verizon Communications When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of October 23, 2023 Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. | See the 10 stocks *Stock Advisor returns as of October 23, 2023 Travis Hoium has positions in Apple, Verizon Communications, and Walt Disney. The Motley Fool recommends Verizon Communications. Their opinions remain their own and are unaffected by The Motley Fool. |
50 | 12,875 | 2023-10-27 00:00:00 UTC | The Government's Case Against Google and How AI May Be Affecting Hiring | AAPL | https://www.nasdaq.com/articles/the-governments-case-against-google-and-how-ai-may-be-affecting-hiring | null | null | In this podcast, Motley Fool analyst Tim Beyers and host Dylan Lewis discuss:
The DOJ's case against Alphabet's Google.
Google's exclusive deals with Apple and how lucrative those deals were for Apple.
The similarities between this case and the government's antitrust case against Microsoft in the 1990s.
Motley Fool host Mary Long caught up with Motley Fool analyst Sanmeet Deo for a chat about airport security stock Clear Secure and the race to the front of the line.
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 Oct. 11, 2023.
Dylan Lewis: PSA. If you're looking for something you don't have to Google it, you can also use Bing, Yahoo and Duck Duck Go. Motley Fool Money starts now. I'm Dylan Lewis and I'm joined over the airwaves by Motley Fool analyst Tim Byers. Tim, scale is zero to 10. What are we looking at in terms of caffination right now?
Tim Beyers: We're going to 11 Dylan. Let's not get around.
Dylan Lewis: I'm about a half cut behind you but I will get there, I promise. Today, we are looking at the DOJ's case against Alphabet's Google, and one spot where AI may be affecting hiring. Let's start with the antitrust talk, Tim. So many of our antitrust conversations recently have been about potential deals and whether or not they will go through. In the case of the DOJ and Google, though, this is the government looking at past action by a company and saying it led to a monopoly or reinforced monopoly.
Tim Beyers: This is the deal between Google and Apple for over many years, in which Google became the default search engine across all Apple devices. But I think the one that's primarily at issue here is the iPhone, where if you were looking on the iPhone, using Safari on the iPhone, and searching on the iPhone, your default search engine was Google and this has proven to be incredibly lucrative for Apple over time, and theoretically incredibly lucrative for Google. But they're being very cagy about it, Dylan. But I think I know we're going to get to it in a second. Some of the things that current CEO, Sundar Pichai, said about this back in the day. He's being more cagy about it right now, but he wasn't so cagy in the past, which I think is very interesting. But before we get to those comments, let me just quickly frame up here to give folks a sense of how lucrative this could really be. Apple is a massive company today, with about $119 billion in operating income. That's in 2022, fiscal 2022 over the trailing 12 months, about $111 billion in operating income. Reportedly, this deal is worth about $10 billion to Apple on an annual basis. What you're talking about is close to 10 percent of operating income for Apple from one deal that has a very long history, Dylan. This is significant.
Dylan Lewis: Yeah. The arrangement for Apple would be incredibly high margin. What we're talking about here is essentially setting something as the default search engine and forgetting it and just leaving it there. There's been some talk about whether or not this is material to Apple. I think that perspective right there is pretty perfect, Tim. I think we can all agree that's material and something that is definitely benefiting the company and both companies. You mentioned the Sundar Pichai comments earlier, back in 2007 when he was in charge of Google's Chrome browser, not the CEO of the company, he had written a letter to Larry Page and Sergey Brin saying at one point I don't think it's a good user experience and I don't think the optics are great for us to be the only provider in the browser. Even suggesting there should be other options as a dropdown. Those are coming up because he is now in charge and is having to answer for this arrangement that we have in place.
Tim Beyers: To put it even more context around it, at that time, he said there should be wait for it, Yahoo as an option. That is significant at the time, because Yahoo, we haven't thought about Yahoo as a legitimate search engine for decades, let alone years. This is very significant and the fact that he brought this up at the time, I think is very damaging to Google's case because it makes it seem like what Google really paid for is not just space on the iPhone, it paid for exclusivity. Now, whether or not Google is willing to admit that it paid for exclusivity is an entirely different matter and I'm not a lawyer, so I'm not going to make a legal judgment here. But that sounds very suspicious, it sounds very damaging and according to the report that we're seeing, is that over time as this deal was renegotiated, it was renegotiated to allow Apple to have other providers in different parts of the world. To this day, Apple does have, if you use an Apple device in different parts of the world, your default search engine may not be Google, but in most of the world it still is. Of course, there are ways that you can choose to have a different search engine on your iPhone. But Dylan, I'm a reasonably smart tech guy. I've never even tried to make a different default search engine on my iPhone. I am certain that it's possible, but I don't know how to do it. I know I'd have to go research it, and I think that's part of the government's case. It's not instantly intuitive, which is what we want.
Dylan Lewis: Yeah, there is an inertia to things being defaults and just the average person is not going to go out of their way to make those changes. When you solidify yourself there, you wind up in a spot where you are the 90 percent search market share leader in the most valuable search market in the world. Google very smartly positioned themselves this way, but it seems like maybe they are finally having to pay for it. One of the things I see coming up with this case a lot, and I wanted to ask you about Tim, is there are a lot of comparisons to what is happening here and the government's antitrust case against Microsoft in the 1990s with a very similar notion of pre-installed defaults gate keeping, What is and isn't there for consumers when they open a device. Do you feel like that's a fair comparison?
Tim Beyers: I don't know that it's a fair comparison legally, but from the perspective of the narrative, point, the echoes here are just far too loud. Because at the time, for those who weren't there and didn't see this. The argument with Microsoft is that as part of their deals with different PC makers, they would ship as part of your Windows license, you were shipping Internet Explorer as the default browser inside Windows, and so that really crowded out, which was the alternative at the time, which was Netscape Navigator and it really crushed Netscape's market share over time because it was very easy, you just pointed out, Dylan. If it's the default and it's easy to set up and it's right there for you and you don't have to go download it. Then that's largely what you're going to use. Part of the issue at the time, which people may not remember, is Bill Gates wrote an internal memo that became public later and it was in some ways a roadmap for Microsoft and it was entirely about the Internet, and how important that Gates thought the Internet would be to Microsoft. Of course, the Department of Justice absolutely used that as a sledgehammer against Microsoft at the time. Said this was intentional, this is what Microsoft wanted to do. They made it the default because they had to grab market share because they knew this was the most strategic market for them. Because the Internet made the PC so relevant at the time, which is a legitimate argument. Now, again, let's separate the legality from the narrative. But I think that narrative was so strong and it echoes so much with what Sundar Pichai was saying, saying, look, this is something we don't want to get caught in because we are essentially saying, if we're the default, we own this and so we get all the advertising revenue and we're going to pay Apple to play a little bit along with us here. It feels very familiar, Dylan, and that's not a good look at all.
Dylan Lewis: Interestingly enough, that decision, that antitrust movement against Microsoft opened the window for Google and for Chrome and for all of this other second wave innovation that we saw on.
Tim Beyers: Irony never disappoints, Dylan. Irony never disappoints. [laughs]
Dylan Lewis: One of the things that's interesting about this is we don't exactly know what a remedy would look like if we wind up in a spot where the DOJ is successful here. There's discussion of would there be a fine, would there be proposed break ups for Google's search properties and its Internet properties. Tim, what do you make of all of that as a risk to the business? Is it sing you factor in at all or are you just say this is the reality of owning shares of a business that is this big.
Tim Beyers: I think it's part of the reality. I recognize this is something that could happen and there are multiple scenarios here. I think the more likely, if history is the guide, the more likely outcome is a fine, maybe a very substantial fine. But let's remember that Google has a massive balance sheet. They have a lot of cash, they generate a lot of cash. If it's a fine, they are going to be more than happy to pay it and they can make this go away if it is a break up. I think that's the unlikely scenario. But let's say it is, that is fine with me. I am an owner of Google shares. I will happily take the break up. Give me my position in YouTube, give me my position in Google Cloud, give me my position in the Alphabet core business, and separate it all out. I will take that because I think that ultimately creates value for me as a shareholder. I see that less as a risk, Dylan, as more as something that is a potential outcome that I would be happy to see if that's the route the government goes down, I think it's more likely we'll see a fine that's a short term hit that I think alphabet could easily absorb. Either way, I'm OK with this, but I do think there's a likelihood of consequences. I just don't know what the consequences would be.
Dylan Lewis: Over to our second tech story today. That in a job market that is relatively strong, we are seeing some weakness in one zone. That's IT. Tim. The unemployment rate for information technology jobs was higher than the overall jobless rate last month. The immediate take that I'm seeing online is some AI automation may be impacting entry level IT jobs. Does that hold water for you?
Tim Beyers: Well, yes and no and maybe no and yes, maybe let's put those in order. The reason it's a no is because I think we've all seen the number of layoffs in the IT sector. It's been absolutely staggering. You can expect that a large number of those layoffs were more junior people, although I'm assuming too, there are some other senior people in there because we have seen some start ups with some founders that are closer to my age. I'm in my '50s and that's actually a good cohort for venture capitalists to put some money behind because you've got seasoned entrepreneurs who know how to do this. There's probably layoffs across the spectrum. There's that, but also there is a lot of talk about AI as an automation mechanism. I do expect there is automation happening. I think it's more like Dylan, we've seen a huge number of layoffs and you have some IT firms that are unwilling as business picks up to hire back at the same pace because they may be automating some of those jobs that previously were held by a person.
Dylan Lewis: For folks that aren't as dialed in on tech trends and the role that AI plays in businesses, what would AI automation replacing entry level jobs look like at some of these places Tim?
Tim Beyers: Probably customer service jobs may be automated. Like instead of a customer service agent who is sending out e mails and responding to customer requests, that is probably something that's automated through maybe some bots. It could be having to, maybe route calls, maybe thinning out your customer service department so that more of the requests are automated and handled via automation. You have a much smaller customer service department. I could easily see some elements of marketing and marketing automation handled by different types of AI workflows that are just doing things like maybe writing base copy. Doing basic copy or updating website copy and things like that. Something that a marketing in turn might do that now an AI might be doing. Really it's not much of an AI, it's more like an algorithm, a machine learning system that has a bunch of copy in it and is doing automatically generated pages. It's not really doing anything intelligent, it's just automating things. I do think there is a bit of an emphasis on automation, and we're categorizing that as AI. You know what, there is something that's fair but also unfair about that. But I do think automation is hitting a lot of these tech companies. Where the jobs are in IT are probably a bit more senior, and the junior level jobs are going to be a little bit tougher to get. That's a trend I expect to hold up for a little while.
Dylan Lewis: Tim, no risk of us automating you away from being one of our Motley Fool Money.
Tim Beyers: I hope not.
Dylan Lewis: Always love going to you for tech intelligence. Thanks so much for joining me today.
Tim Beyers: Thanks, Dylan.
Dylan Lewis: Coming up. If you've been to an airport recently, you might know Clear. It's the company that lets travelers cut through the security line but you might not know that it's a publicly traded company. Mary Long cut up with Motley Fool senior analyst Samneet Deo, for a chat about the business and the competitors in the race to the front of a line.
Mary Long: Clear's mission is quote, to enable friction-less and safe journeys using your identity and quote, what does that mean and what does it look like as an actual business model?
Sanmeet Deo: Clear Secure ticker Y-O-U. Their business models basically is simply, we describe as like an identity management platform. They use biometric technology to verify a person's identity by looking at faces, fingerprints, you know, et cetera. It's not just an airport company though. A majority of the revenue still comes from there. But it's expanding to use cases such as stadium security, online identity verification by linkedin, financial security like know your customer, type use cases and et cetera.
Mary Long: Let's focus first on that airport security piece because that's probably one that listeners are most familiar with. Clear Plus is the company's flagship offering, and that grants expedited entry to over 50 airports in the US. It comes out to about $189 a year. How many paying members does Clear actually have today?
Sanmeet Deo: Clear as of the second quarter of 2023, they have over 6 million active Clear Plus members, so those are paying members. This is up from around 3.8 million as of the end of quarter one 2021. Clear is a pretty sticky product with their net member retention above 90%. They have a key performance indicator that that their report is called the annual plus member usage. That's been steadily increasing over the past eight quarters. That indicates how much utilization of their product, of their pass is being utilized. The amount of verification is done over how many actual members there are.
Mary Long: Interesting. Within the airport space and others because you mentioned that Clear is expanding into different sectors as well. Are there any competitors that clears up against or is this the only game in town?
Sanmeet Deo: One of the first competitors that you would think of when you think of Clear in the airport, if you've ever seen in the airport, is TSA pre-check. TSA pre-check is solely focused on airport security and royal members through an online application and in person appointments. They rely on traditional documents like boarding passes, and government ID's. It costs about $85 for a five year membership, offers no family plans or discounts. In contrast, Clear primary serves airports, but has expanded to use cases. They use stadiums, other venues, they enroll members through in personal kiosk using biometric identification, fingerprints, high scans, and they have an app which you can also enroll on. It costs about 189 per year and offers family plans, free membership for kids under 18 and various discounts. Key differentiator for Clear versus TSA pre check is that it lets you skip lines at boarding gates and passport control desks in addition to the security checks. Now an interesting thing is in 2020, TSA actually awarded Clear what they call the TSA biometric pre-check expansion services and vetting programs. That's a mouthful.
They have to have an acronym for that at some point I guess. But as part of this program, Clear is going to leverage their network and resources to handle the TSA pre check, subscription renewal processing, and new enrollments for TSA pre check. While it seems like they would be competitors, they are actually more of complimentary products. In addition to this, Clear is going to be offering a bundled Clear Plus membership and TSA pre check subscription for new members. You can have both with a bundled offering that enhances your ability to get through lines and use their products. TSA pre check while you would think right off the bat that that's a competitor, it's a little bit more of a complimentary service, especially with some of their partnerships and collaboration that they've been doing. There are some other smaller competitors like Verify and others that do some of this airport security type identification, but many of them don't have airport presence like Clear does. That's been a huge staple of Clear's businesses, having those kiosks, having that presence in the airport where passengers get an idea of what their business is all about, what their offerings are all about. And they have ambassadors, which some people might get annoyed by because they try to sell them the pass at the airport. They do also help them with kind of getting enrolled, using the service, what it could actually do for them, so you have someone to speak to at the airports to get a better understanding for that product. That's something that other competitors don't have. In terms of their biometric technology, some of the competition I would say is typically from big tech Alphabet, Google, Apple, Microsoft, Meta. Some of those big tech companies, if they start offering more identity verification system software to help with that, that could be a competitor. Of course, having privacy and all of that information with Big Tech is probably going to be a concern for many people given that they already have so much of our information. Do you want to really be giving them a lot more? So that's kind of the competitive landscape that Clear is facing.
Mary Long: When talking about the competitive landscape, you mentioned like I'll say, the threat of big tech and like their handling of biometric data and how that could be a potential obstacle for Clear. But if we focus on Clear alone, what do they actually do with our data? Should we be wary of them?
Sanmeet Deo: Look, you give them your driver's license, your passport, all this information that like, wow, they have it all. But privacy is actually heavily embedded in the DNA of the company. They're committed to never selling member data. They may use the data to improve their own marketing, but they're never going to sell your data to other outside parties. They've built a comprehensive information security and cybersecurity program. Their platform is certified at the highest level of security by government regulators and it is constantly being monitored and evaluated. The Department of Homeland Security has certified Clears security program with a FISMA high rating, which is the highest designated designation according to the Federal Information and Security Modernization Act. They do have some backing by government regulators, Department of Homeland Security. They're under the microscope, if they're not careful, they're not protecting that data, those government organizations have a much, much more in rows into really clamping down on them.
Mary Long: Clear might be a bit of an older company than people might expect and you've talked to me before about its founding story. How did Clear come to be?
Sanmeet Deo: Yeah, it's an interesting story. It was founded in 2003 and it was originally named Verified Identity Pass. It was founded by Stephen Brill who's a law writer and entrepreneur. It was in response to the intensive security checks and long wait times after the 911 attacks. And probably thought, how can we improve this? By 2008, they had 250,000 paying customers. They've been using 18 airports across the country. But then due to unsuccessful negotiations with their largest creditor, they had to file for bankruptcy and they ceased operations in 2009. Incomes, the two co founders now co founders Caryn Seidman Becker and Ken Cornick came in and bought out the assets out of bankruptcy for $6 million including hardware, access to the members,250,000 members, the Clear brand name and licenses with the Department of Homeland Security and other organizations. Seidman Becker and Cornick had come from the financial industry, running hedge funds and decided they wanted to buy this out of bankruptcy and run the company. Clear relaunched in 2010, it was a smart card company before launching pods and kiosk at airports, which many of you may have seen already. And then a partnership and investment by Delta in 2016 kind of helped accelerate their growth. Then they got 135 million in six investment rounds from various institutional investors and United Airlines bought a stake in 2019. All of that really started building their funding, building their platform. It took almost seven years for them to reach 1 million members. But it's added each subsequent million in less than a year. So it's been growing very fast and so ending in 2019, they had more than 5 million members. It's been around for a decent amount of time in a different entity. But it's really lately that it's definitely taken off. And it's well funded and has a strong balance sheet which I like as well.
Mary Long: So the company went public in June 2021, and since then, despite everything that we've talked about, the increasing enrollments, etc, the stock is down over 55% and it's now trading at about $17.50 a share. Again, that's in spite of increasing enrollments, the company's grown quarterly revenue since its Public Offering. In its most recent earnings, which were the second quarter of 2023, it posted positive net income for the first time as a public company. If we could say all that, why has the stock slumped so much?
Sanmeet Deo: One of the things that intrigued me about this investment is that it's trading it almost like a 10% free cash flow yield which is a 10 multiple on its free cash flow. So it's trading very reasonably cheaply actually in so it's like what's going on here? One, it's a very tightly held company. The co-founders own about 17% of the whole company themselves and they have pretty much, I think it's 80% of the voting control of the company. Then the rest of the holders of the stock, there's some institutional shareholders in there, Bill Miller and some T Row and some other institutional investors. The actual float that's out there is not as much as you might think. Given that it's a very tightly held company, the stock is going to be very volatile. So that definitely accounts for that. It does have an 18% short interest in the company. So that has probably been a result of some of the declines in the stock. As well a couple other points, you know, since it's heavily into the aviation airport industry as that industry news flow and things are discussed about that industry, the stock will trade on those data points, so that causes some volatility in the stock. But I have no reason to believe that they can't continue to maintain the profitability, continuing to grow, you know, memberships while, it could slow.
They have stated that the travel industry is still very strong and that's been confirmed by some other companies that you are widely followed like booking and Airbnb and others where the revenge travel as they've called it post-pandemic is still going and that could slow for sure. I think another reason that the stock may be trading down a little bit is because, it does have a huge concentration in the aviation industry. All these use cases that I was discussing briefly before are, they're working on, but there's no guarantee that that's going to be successful or even take off. That it will be a big platform that everyone's using and it's very ubiquitous. So there's probably a lot of skepticism around that.
Mary Long: Yeah, lots of potential for it to expand into industries beyond aviation, but still early days for a lot of that it seems. Sanmeet, thanks for clarifying Clear for us. It's been great talking to you today.
Sanmeet Deo: Yeah, thank you, Mary.
Dylan Lewis: As always, people on the program may own stocks mentioned and the Motley Fool may have formal recommendations for or against. So don't fire-sell anything based solely on what you hear. I'm Dylan Lewis. Thanks for listening. We'll be back tomorrow.
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. Dylan Lewis has no position in any of the stocks mentioned. Mary Long has positions in Airbnb. Sanmeet Deo has positions in Airbnb and Alphabet. Tim Beyers has positions in Alphabet and Apple. The Motley Fool has positions in and recommends Airbnb, Alphabet, Apple, Meta Platforms, and Microsoft. The Motley Fool recommends Delta Air Lines. 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 I think that narrative was so strong and it echoes so much with what Sundar Pichai was saying, saying, look, this is something we don't want to get caught in because we are essentially saying, if we're the default, we own this and so we get all the advertising revenue and we're going to pay Apple to play a little bit along with us here. I think it's more like Dylan, we've seen a huge number of layoffs and you have some IT firms that are unwilling as business picks up to hire back at the same pace because they may be automating some of those jobs that previously were held by a person. Mary Long cut up with Motley Fool senior analyst Samneet Deo, for a chat about the business and the competitors in the race to the front of a line. | In this podcast, Motley Fool analyst Tim Beyers and host Dylan Lewis discuss: The DOJ's case against Alphabet's Google. Motley Fool host Mary Long caught up with Motley Fool analyst Sanmeet Deo for a chat about airport security stock Clear Secure and the race to the front of the line. Mary Long cut up with Motley Fool senior analyst Samneet Deo, for a chat about the business and the competitors in the race to the front of a line. | In this podcast, Motley Fool analyst Tim Beyers and host Dylan Lewis discuss: The DOJ's case against Alphabet's Google. Motley Fool host Mary Long caught up with Motley Fool analyst Sanmeet Deo for a chat about airport security stock Clear Secure and the race to the front of the line. Tim Beyers: This is the deal between Google and Apple for over many years, in which Google became the default search engine across all Apple devices. | In this podcast, Motley Fool analyst Tim Beyers and host Dylan Lewis discuss: The DOJ's case against Alphabet's Google. Tim Beyers: This is the deal between Google and Apple for over many years, in which Google became the default search engine across all Apple devices. Sanmeet Deo: Clear as of the second quarter of 2023, they have over 6 million active Clear Plus members, so those are paying members. |
51 | 12,913 | 2023-10-26 00:00:00 UTC | 3 No-Brainer Stocks I'd Buy Right Now Without Hesitation | AAPL | https://www.nasdaq.com/articles/3-no-brainer-stocks-id-buy-right-now-without-hesitation-13 | null | null | Earnings season is right around the corner, which usually causes a lot of fluctuation in the stock market. As a result, many investors are probably wondering what stocks are safe bets and likely to rise after posting earnings.
Tech stocks fell out of favor amid last year's economic downturn. However, a boom in artificial intelligence (AI) has made Wall Street optimistic about the industry again, with many companies enjoying double-digit stock growth in 2023. Meanwhile, easing inflation has allowed some businesses to recover from recent hurdles.
The great thing about tech is that it's an ever-evolving market that is almost guaranteed to reward patient investors. So, no matter the outcome of this quarter's earnings report, many of the market's leaders will likely provide significant gains over the long term.
So, here are three no-brainer stocks I'd buy right now without hesitation.
1. Apple
Shares in Apple (NASDAQ: AAPL) tumbled almost 12% since the start of August after posting a 1% year-over-year decline in revenue for the third quarter of 2023. Economic headwinds caught up with the company as reductions in consumer spending across tech hurt product sales. Yet, despite the challenges, Apple's stock has still gained 33% year to date.
The company has gained a reputation for its reliability over the long term. Since 2018, Apple's annual revenue climbed 52%, with operating income up 87%. Meanwhile, its stock soared 209% in that time. The company's nearly unrivaled dominance in consumer tech and loyalty from users enabled it to snap up leading market shares in most of its product categories.
Moreover, Apple is gradually expanding its business to lean less on product sales. Its services segment has become a particularly lucrative area, with revenue rising 8% year over year in Q3 2023. The digital business includes income from the App Store and subscription-based platforms like Apple TV+, which have proven less vulnerable to macro factors.
Apple could face another challenging quarter. However, its long-term prospects mean a recent dip has effectively put its shares on sale. With immense dominance in tech and a rapidly expanding services business, Apple's stock is a no-brainer.
2. Microsoft
Microsoft (NASDAQ: MSFT) is easily one of my favorite stocks this year, with countless earning opportunities in AI.
The tech giant was an early investor in AI, sinking $1 billion in ChatGPT developer OpenAI in 2019. Microsoft has since increased that figure by $10 billion, bringing its stake in the start-up to 49%. The partnership gave Microsoft access to some of the most advanced AI technology, allowing it to get a head start in a highly competitive industry.
With the power of OpenAI's technology, Microsoft arguably has the highest earning potential in AI thanks to its dominance in productivity and cloud services. Millions of businesses and consumers worldwide have come to rely on Microsoft's Office productivity suite, which includes popular platforms such as Word, Excel, PowerPoint, Outlook, and more. The tech giant is steadily adding AI features to these programs and moving to monetize its efforts.
The company recently unveiled Copilot, an AI assistant that will debut as a $30 monthly add-on to a Microsoft 365 subscription. Meanwhile, Microsoft is using OpenAI's models to expand its library of AI cloud services on Azure, striving to attract new customers to the platform and increase its 22% share of the cloud market.
The AI market is projected to expand at a compound annual growth rate of 37% through 2030, and Microsoft is well equipped to profit substantially as the industry develops. Its stock is a screaming buy right now and one I'd buy without hesitation.
3. Alphabet
Like the two companies above, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has a potent position in tech and a long history of providing stockholders with reliable gains. Its success is mainly owed to its dominance in the digital advertising industry, where it holds a leading 25% market share.
Digital ad spending is expected to hit $680 billion in 2023, with the largest portion of that coming from search advertising. Meanwhile, Alphabet's Google has an over 80% share of search engines. Along with YouTube, Android, Chrome, and the many other services under Google, Alphabet has almost endless advertising opportunities.
Alphabet serves billions of users daily and its annual revenue climbed 107% over the last five years, and operating income has increased 130%. Those figures are higher than any other company on this list in the same period.
In 2023, Alphabet has continued delivering strong financials as it recovers from last year's economic downturn. In the second quarter, revenue rose 8% year over year after a solid rise in its Google advertising and Google Cloud segments. The company is on a promising trajectory, and you won't want to miss out on its long-term future.
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Suzanne Frey, an executive at Alphabet, 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, 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. | Apple Shares in Apple (NASDAQ: AAPL) tumbled almost 12% since the start of August after posting a 1% year-over-year decline in revenue for the third quarter of 2023. However, a boom in artificial intelligence (AI) has made Wall Street optimistic about the industry again, with many companies enjoying double-digit stock growth in 2023. The company's nearly unrivaled dominance in consumer tech and loyalty from users enabled it to snap up leading market shares in most of its product categories. | Apple Shares in Apple (NASDAQ: AAPL) tumbled almost 12% since the start of August after posting a 1% year-over-year decline in revenue for the third quarter of 2023. Since 2018, Apple's annual revenue climbed 52%, with operating income up 87%. Alphabet Like the two companies above, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has a potent position in tech and a long history of providing stockholders with reliable gains. | Apple Shares in Apple (NASDAQ: AAPL) tumbled almost 12% since the start of August after posting a 1% year-over-year decline in revenue for the third quarter of 2023. With immense dominance in tech and a rapidly expanding services business, Apple's stock is a no-brainer. Microsoft Microsoft (NASDAQ: MSFT) is easily one of my favorite stocks this year, with countless earning opportunities in AI. | Apple Shares in Apple (NASDAQ: AAPL) tumbled almost 12% since the start of August after posting a 1% year-over-year decline in revenue for the third quarter of 2023. The AI market is projected to expand at a compound annual growth rate of 37% through 2030, and Microsoft is well equipped to profit substantially as the industry develops. In the second quarter, revenue rose 8% year over year after a solid rise in its Google advertising and Google Cloud segments. |
52 | 12,932 | 2023-10-25 00:00:00 UTC | US STOCKS-Nasdaq, S&P 500 fall as Alphabet slumps | AAPL | https://www.nasdaq.com/articles/us-stocks-nasdaq-sp-500-fall-as-alphabet-slumps | null | null | By Ankika Biswas and Shashwat Chauhan
Oct 25 (Reuters) - The tech-heavy Nasdaq and the S&P 500 dropped on Wednesday as Alphabet slumped after its cloud division missed revenue estimates, while other mega-cap stocks were also pressured by rising U.S. Treasury yields.
Google-parent AlphabetGOOGL.O slid 9.1% to a three-month low, as its cloud business crawled to its slowest growth in at least 11 quarters.
The communication services sector .SPLRCL fell 5.2%, on track for its worst single-day drop in a year, and touched a near one-month low.
MicrosoftMSFT.O, on the other hand, rose 2.7% to a three-month high after topping expectations for first-quarter results in all segments, including its cloud business.
"Generative AI was supposed to boost Google's cloud revenue and that clearly did not happen. Surging Treasury yields and mixed earnings have stock investors hitting the sell button," Edward Moya, senior market analyst at OANDA, said.
Other megacaps including Apple AAPL.O and Amazon.com AMZN.O fell 1% and 4.8%, respectively, as Treasury yields climbed after data showed accelerating in September, affirming expectations of prolonged high interest rates heading into 2024.
Focus will be on Meta Platform's META.O results after the bell, with the company expected to report its best quarterly sales growth in nearly two years. The company's shares were down 2.6% amid the broader tech decline.
Among other major S&P 500 sectors, consumer discretionary .SPLRCD and real estate .SPLRCR were among the worst hit, while utilities .SPLRCU was the top gainer.
The Dow Jones Transport Average index .DJT fell to a more than four-month low, following a 5.6% decline in trucking firm Old Dominion Freight LineODFL.O after quarterly results.
Defense contractor General DynamicsGD.N rose 3.6% after reporting a jump in third-quarter revenue.
Of the 146 S&P 500 companies that have reported so far, 80% have beaten analysts' earnings expectations, according to LSEG data. Quarterly earnings are expected to grow 2.6% year-on-year.
Israel has agreed to delay an expected invasion of Gaza for now so that the United States can rush missile defences to the region to protect U.S. troops there, the Wall Street Journal reported on Wednesday, citing U.S. and Israeli officials.
At 12:10 p.m. ET, the Dow Jones Industrial Average .DJI was up 0.54 points at 33,141.92, the S&P 500 .SPX was down 45.00 points, or 1.06%, at 4,202.68, and the Nasdaq Composite .IXIC was down 240.12 points, or 1.83%, at 12,899.76.
Investors will also monitor third-quarter gross domestic product, durable goods and personal consumption expenditure data through the rest of the week.
U.S. Federal Reserve officials were under a media blackout ahead of their decision on interest rates on Nov. 1.
Among other stocks, Texas InstrumentsTXN.O fell 3.6% after the analog chipmaker forecast fourth-quarter revenue and profit below estimates.
CoStar GroupCSGP.O dropped 6% after the real estate information provider trimmed its annual revenue outlook.
Declining issues outnumbered advancers for a 2.85-to-1 ratio on the NYSE and a 2.33-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and 58 new lows, while the Nasdaq recorded 14 new highs and 373 new lows.
(Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru; Editing by Savio D'Souza and Shounak Dasgupta)
(([email protected]; [email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other megacaps including Apple AAPL.O and Amazon.com AMZN.O fell 1% and 4.8%, respectively, as Treasury yields climbed after data showed accelerating in September, affirming expectations of prolonged high interest rates heading into 2024. By Ankika Biswas and Shashwat Chauhan Oct 25 (Reuters) - The tech-heavy Nasdaq and the S&P 500 dropped on Wednesday as Alphabet slumped after its cloud division missed revenue estimates, while other mega-cap stocks were also pressured by rising U.S. Treasury yields. Israel has agreed to delay an expected invasion of Gaza for now so that the United States can rush missile defences to the region to protect U.S. troops there, the Wall Street Journal reported on Wednesday, citing U.S. and Israeli officials. | Other megacaps including Apple AAPL.O and Amazon.com AMZN.O fell 1% and 4.8%, respectively, as Treasury yields climbed after data showed accelerating in September, affirming expectations of prolonged high interest rates heading into 2024. MicrosoftMSFT.O, on the other hand, rose 2.7% to a three-month high after topping expectations for first-quarter results in all segments, including its cloud business. Surging Treasury yields and mixed earnings have stock investors hitting the sell button," Edward Moya, senior market analyst at OANDA, said. | Other megacaps including Apple AAPL.O and Amazon.com AMZN.O fell 1% and 4.8%, respectively, as Treasury yields climbed after data showed accelerating in September, affirming expectations of prolonged high interest rates heading into 2024. By Ankika Biswas and Shashwat Chauhan Oct 25 (Reuters) - The tech-heavy Nasdaq and the S&P 500 dropped on Wednesday as Alphabet slumped after its cloud division missed revenue estimates, while other mega-cap stocks were also pressured by rising U.S. Treasury yields. The Dow Jones Transport Average index .DJT fell to a more than four-month low, following a 5.6% decline in trucking firm Old Dominion Freight LineODFL.O after quarterly results. | Other megacaps including Apple AAPL.O and Amazon.com AMZN.O fell 1% and 4.8%, respectively, as Treasury yields climbed after data showed accelerating in September, affirming expectations of prolonged high interest rates heading into 2024. By Ankika Biswas and Shashwat Chauhan Oct 25 (Reuters) - The tech-heavy Nasdaq and the S&P 500 dropped on Wednesday as Alphabet slumped after its cloud division missed revenue estimates, while other mega-cap stocks were also pressured by rising U.S. Treasury yields. Among other major S&P 500 sectors, consumer discretionary .SPLRCD and real estate .SPLRCR were among the worst hit, while utilities .SPLRCU was the top gainer. |
53 | 12,972 | 2023-10-24 00:00:00 UTC | Amid Foxconn probe, China tells Taiwan firms to play positive role in ties | AAPL | https://www.nasdaq.com/articles/amid-foxconn-probe-china-tells-taiwan-firms-to-play-positive-role-in-ties | null | null | Adds further comments from spokesperson, paragraphs 11-14
BEIJING, Oct 25 (Reuters) - Taiwanese companies should assume their social responsibilities and play a "positive role" in promoting the peaceful development of relations across the Taiwan Strait, China's government said on Wednesday, amid a probe into major Apple supplier Foxconn.
The Chinese government has not officially confirmed the investigations, first reported by nationalistic, state-backed tabloid the Global Times on Sunday. China claims Taiwan as its own territory.
Asked about the investigation at a routine news conference in Beijing, Zhu Fenglian, a spokesperson for China's Taiwan Affairs Office, did not confirm the probe or refer to Foxconn.
"Relevant mainland departments treat all enterprises equally in accordance with the law and regulations, and it is a normal law enforcement act to carry out law-abiding investigations," she said.
She signalled China expected these companies to play a political role.
Zhu did not elaborate.
On Tuesday, Taiwan Vice President Lai Ching-te, the ruling Democratic Progressive Party's (DPP) candidate for president at January elections, hit out at China over its probe of Foxconn, saying Beijing should "cherish" Taiwanese companies and not put pressure on them during an election.
China believes Lai, who is leading opinion polls, is a separatist bent on a formal declaration of independence. Lai says he will maintain the status quo with China, and has repeatedly offered talks which Beijing has rebuffed.
Zhu, in a step up of China's attacks against Lai, said he was "duping people" by both trying to "use weapons to seek independence" and also calling for dialogue.
"This comment has hit the nail on the head and is appropriate. I believe that the majority of Taiwanese compatriots have a clear understanding of this."
(Reporting by Beijing newsroom; Writing by Ben Blanchard; Editing by Jacqueline Wong and Lincoln Feast)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Adds further comments from spokesperson, paragraphs 11-14 BEIJING, Oct 25 (Reuters) - Taiwanese companies should assume their social responsibilities and play a "positive role" in promoting the peaceful development of relations across the Taiwan Strait, China's government said on Wednesday, amid a probe into major Apple supplier Foxconn. The Chinese government has not officially confirmed the investigations, first reported by nationalistic, state-backed tabloid the Global Times on Sunday. Asked about the investigation at a routine news conference in Beijing, Zhu Fenglian, a spokesperson for China's Taiwan Affairs Office, did not confirm the probe or refer to Foxconn. | Adds further comments from spokesperson, paragraphs 11-14 BEIJING, Oct 25 (Reuters) - Taiwanese companies should assume their social responsibilities and play a "positive role" in promoting the peaceful development of relations across the Taiwan Strait, China's government said on Wednesday, amid a probe into major Apple supplier Foxconn. Asked about the investigation at a routine news conference in Beijing, Zhu Fenglian, a spokesperson for China's Taiwan Affairs Office, did not confirm the probe or refer to Foxconn. On Tuesday, Taiwan Vice President Lai Ching-te, the ruling Democratic Progressive Party's (DPP) candidate for president at January elections, hit out at China over its probe of Foxconn, saying Beijing should "cherish" Taiwanese companies and not put pressure on them during an election. | Adds further comments from spokesperson, paragraphs 11-14 BEIJING, Oct 25 (Reuters) - Taiwanese companies should assume their social responsibilities and play a "positive role" in promoting the peaceful development of relations across the Taiwan Strait, China's government said on Wednesday, amid a probe into major Apple supplier Foxconn. Asked about the investigation at a routine news conference in Beijing, Zhu Fenglian, a spokesperson for China's Taiwan Affairs Office, did not confirm the probe or refer to Foxconn. On Tuesday, Taiwan Vice President Lai Ching-te, the ruling Democratic Progressive Party's (DPP) candidate for president at January elections, hit out at China over its probe of Foxconn, saying Beijing should "cherish" Taiwanese companies and not put pressure on them during an election. | Adds further comments from spokesperson, paragraphs 11-14 BEIJING, Oct 25 (Reuters) - Taiwanese companies should assume their social responsibilities and play a "positive role" in promoting the peaceful development of relations across the Taiwan Strait, China's government said on Wednesday, amid a probe into major Apple supplier Foxconn. The Chinese government has not officially confirmed the investigations, first reported by nationalistic, state-backed tabloid the Global Times on Sunday. Zhu, in a step up of China's attacks against Lai, said he was "duping people" by both trying to "use weapons to seek independence" and also calling for dialogue. |
54 | 12,989 | 2023-10-23 00:00:00 UTC | EXCLUSIVE-Nvidia to make Arm-based PC chips in major new challenge to Intel | AAPL | https://www.nasdaq.com/articles/exclusive-nvidia-to-make-arm-based-pc-chips-in-major-new-challenge-to-intel | null | null | By Stephen Nellis and Max A. Cherney
Oct 23 (Reuters) - Nvidia NVDA.O dominates the market for artificial intelligence computing chips. Now it is coming after Intel’s longtime stronghold of personal computers.
Nvidia has quietly begun designing central processing units (CPUs) that would run Microsoft’s MSFT.O Windows operating system and use technology from Arm HoldingsO9Ty.F, ARM.O, two people familiar with the matter told Reuters.
The AI chip giant's new pursuit is part of Microsoft's effort to help chip companies build Arm-based processors for Windows PCs. Microsoft's plans take aim at Apple, which has nearly doubled its market share in the three years since releasing its own Arm-based chips in-house for its Mac computers, according to preliminary third-quarter data from research firm IDC.
Advanced Micro Devices AMD.O also plans to make chips for PCs with Arm technology, according to two people familiar with the matter.
Nvidia and AMD could sell PC chips as soon as 2025, one of the people familiar with the matter said. Nvidia and AMD would join Qualcomm QCOM.O, which has been making Arm-based chips for laptops since 2016. At an event on Tuesday that will be attended by Microsoft executives, including vice president of Windows and Devices Pavan Davuluri, Qualcomm plans to reveal more details about a flagship chip that a team of ex-Apple engineers designed, according to a person familiar with the matter.
Nvidia spokesperson Ken Brown, AMD spokesperson Brandi Marina, Arm spokesperson Kristen Ray and Microsoft spokesperson Pete Wootton all declined to comment.
Nvidia, AMD and Qualcomm's efforts could shake up a PC industry that Intel long dominated but which is under increasing pressure from Apple AAPL.O. Apple’s custom chips have given Mac computers better battery life and speedy performance that rivals chips that use more energy. Executives at Microsoft have observed how efficient Apple’s Arm-based chips are, including with AI processing, and desire to attain similar performance, one of the sources said.
In 2016, Microsoft tapped Qualcomm to spearhead the effort for moving the Windows operating system to Arm’s underlying processor architecture, which has long powered smartphones and their small batteries. Microsoft granted Qualcomm an exclusivity arrangement to develop Windows-compatible chips until 2024, according to two sources familiar with the matter.
Microsoft has encouraged others to enter the market once that exclusivity deal expires, the two sources told Reuters.
“Microsoft learned from the 90s that they don’t want to be dependent on Intel again, they don’t want to be dependent on a single vendor,” said Jay Goldberg, chief executive of D2D Advisory, a finance and strategy consulting firm. “If Arm really took off in PC (chips), they were never going to let Qualcomm be the sole supplier.”
Microsoft has been encouraging the involved chipmakers to build advanced AI features into the CPUs they are designing. The company envisions AI-enhanced software such as its Copilot to become an increasingly important part of using Windows. To make that a reality, forthcoming chips from Nvidia, AMD and others will need to devote the on-chip resources to do so.
There is no guarantee of success if Microsoft and the chip firms proceed with the plans. Software developers have spent decades and billions of dollars writing code for Windows that runs on what is known as the x86 computing architecture, which is owned by Intel but also licensed to AMD. Computer code built for x86 chips will not automatically run on Arm-based designs, and the transition could pose challenges.
Intel has also been packing AI features into its chips and recently showed a laptop running features similar to ChatGPT directly on the device.
Intel spokesperson Will Moss did not immediately respond to a request for comment. AMD's entry into the Arm-based PC market was earlier reported by chip-focused publication SemiAccurate.
(Reporting by Stephen Nellis and Max A. Cherney in San Francisco; editing by Kenneth Li and Josie Kao)
(([email protected]; [email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Nvidia, AMD and Qualcomm's efforts could shake up a PC industry that Intel long dominated but which is under increasing pressure from Apple AAPL.O. Nvidia has quietly begun designing central processing units (CPUs) that would run Microsoft’s MSFT.O Windows operating system and use technology from Arm HoldingsO9Ty.F, ARM.O, two people familiar with the matter told Reuters. Microsoft's plans take aim at Apple, which has nearly doubled its market share in the three years since releasing its own Arm-based chips in-house for its Mac computers, according to preliminary third-quarter data from research firm IDC. | Nvidia, AMD and Qualcomm's efforts could shake up a PC industry that Intel long dominated but which is under increasing pressure from Apple AAPL.O. By Stephen Nellis and Max A. Cherney Oct 23 (Reuters) - Nvidia NVDA.O dominates the market for artificial intelligence computing chips. Nvidia has quietly begun designing central processing units (CPUs) that would run Microsoft’s MSFT.O Windows operating system and use technology from Arm HoldingsO9Ty.F, ARM.O, two people familiar with the matter told Reuters. | Nvidia, AMD and Qualcomm's efforts could shake up a PC industry that Intel long dominated but which is under increasing pressure from Apple AAPL.O. The AI chip giant's new pursuit is part of Microsoft's effort to help chip companies build Arm-based processors for Windows PCs. Microsoft's plans take aim at Apple, which has nearly doubled its market share in the three years since releasing its own Arm-based chips in-house for its Mac computers, according to preliminary third-quarter data from research firm IDC. | Nvidia, AMD and Qualcomm's efforts could shake up a PC industry that Intel long dominated but which is under increasing pressure from Apple AAPL.O. Advanced Micro Devices AMD.O also plans to make chips for PCs with Arm technology, according to two people familiar with the matter. Nvidia and AMD could sell PC chips as soon as 2025, one of the people familiar with the matter said. |
55 | 13,005 | 2023-10-22 00:00:00 UTC | Foxconn shares drop after report of China tax audit, land use probe | AAPL | https://www.nasdaq.com/articles/foxconn-shares-drop-after-report-of-china-tax-audit-land-use-probe | null | null | Recasts, adds details
TAIPEI, Oct 23 (Reuters) - Shares in Taiwan's Foxconn 2317.TW, a major supplier of Apple's AAPL.O iPhones, dropped as much as 3% on Monday after a report that the company is the subject of tax audits and land use probes in China.
China's state-backed the Global Times said some of Foxconn's key subsidiaries in China were the subject of tax audits and that China's natural resources department had also conducted on-site investigations on the land use of Foxconn enterprises in Henan and Hubei provinces and elsewhere.
Foxconn said in a statement on Sunday that legal compliance was a "fundamental principle" of its operations everywhere, and that it would "actively cooperate with the relevant units on the related work and operations".
The Global Times did not give details of the tax or land use probes, which have not been officially announced by any Chinese government department.
The report comes less than three months before Taiwan votes in presidential and parliamentary elections.
Foxconn's billionaire founder Terry Gou, who no longer has a role in the company's day to day operations and stepped down as company chief in 2019, is running as an independent candidate though he is at the bottom of polls.
He has accused Taiwan's ruling Democratic Progressive Party of taking the island to the brink of war with China by its hostile policies and that only he, with his extensive business and personal contacts in China and the United States, can maintain peace.
(Reporting by Ben Blanchard; Editing by Jacqueline Wong and Edwina Gibbs)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Recasts, adds details TAIPEI, Oct 23 (Reuters) - Shares in Taiwan's Foxconn 2317.TW, a major supplier of Apple's AAPL.O iPhones, dropped as much as 3% on Monday after a report that the company is the subject of tax audits and land use probes in China. The Global Times did not give details of the tax or land use probes, which have not been officially announced by any Chinese government department. He has accused Taiwan's ruling Democratic Progressive Party of taking the island to the brink of war with China by its hostile policies and that only he, with his extensive business and personal contacts in China and the United States, can maintain peace. | Recasts, adds details TAIPEI, Oct 23 (Reuters) - Shares in Taiwan's Foxconn 2317.TW, a major supplier of Apple's AAPL.O iPhones, dropped as much as 3% on Monday after a report that the company is the subject of tax audits and land use probes in China. China's state-backed the Global Times said some of Foxconn's key subsidiaries in China were the subject of tax audits and that China's natural resources department had also conducted on-site investigations on the land use of Foxconn enterprises in Henan and Hubei provinces and elsewhere. Foxconn's billionaire founder Terry Gou, who no longer has a role in the company's day to day operations and stepped down as company chief in 2019, is running as an independent candidate though he is at the bottom of polls. | Recasts, adds details TAIPEI, Oct 23 (Reuters) - Shares in Taiwan's Foxconn 2317.TW, a major supplier of Apple's AAPL.O iPhones, dropped as much as 3% on Monday after a report that the company is the subject of tax audits and land use probes in China. China's state-backed the Global Times said some of Foxconn's key subsidiaries in China were the subject of tax audits and that China's natural resources department had also conducted on-site investigations on the land use of Foxconn enterprises in Henan and Hubei provinces and elsewhere. He has accused Taiwan's ruling Democratic Progressive Party of taking the island to the brink of war with China by its hostile policies and that only he, with his extensive business and personal contacts in China and the United States, can maintain peace. | Recasts, adds details TAIPEI, Oct 23 (Reuters) - Shares in Taiwan's Foxconn 2317.TW, a major supplier of Apple's AAPL.O iPhones, dropped as much as 3% on Monday after a report that the company is the subject of tax audits and land use probes in China. China's state-backed the Global Times said some of Foxconn's key subsidiaries in China were the subject of tax audits and that China's natural resources department had also conducted on-site investigations on the land use of Foxconn enterprises in Henan and Hubei provinces and elsewhere. Foxconn said in a statement on Sunday that legal compliance was a "fundamental principle" of its operations everywhere, and that it would "actively cooperate with the relevant units on the related work and operations". |
56 | 13,011 | 2023-10-21 00:00:00 UTC | This Stock-Split Stock Is Beating Both Apple and Microsoft in 2023 -- With No Artificial Intelligence (AI) Tailwind at All | AAPL | https://www.nasdaq.com/articles/this-stock-split-stock-is-beating-both-apple-and-microsoft-in-2023-with-no-artificial | null | null | The two biggest stocks on the market have grown even bigger so far this year. Apple (NASDAQ: AAPL) shares have soared close to 40%, while Microsoft (NASDAQ: MSFT) stock is up around 23%.
Investors' excitement about artificial intelligence (AI) has helped boost many tech stocks. However, you can find big winners outside of tech, too. This stock-split stock is beating both Apple and Microsoft -- with no AI tailwind at all.
Who needs AI when you've got Ozempic and Wegovy?
Sometimes, stock splits serve as key catalysts for stocks. That wasn't the case for Novo Nordisk (NYSE: NVO), though.
The big pharma stock jumped more than 40% year to date before Novo Nordisk's two-for-one stock split conducted on Sept. 20, 2023. Novo's shares declined a bit after the split before bouncing back.
Apple and Microsoft were easily outperforming Novo Nordisk throughout much of 2023. Things changed, however, after Novo Nordisk announced positive results on Aug. 8 for semaglutide in reducing the risk of major cardiovascular events in overweight or obese adults.
Two days later, Novo Nordisk reported its financial results for the first half of the year. Semaglutide was the big star.
The drug is marketed as Ozempic as a treatment for type 2 diabetes and as Wegovy in treating weight loss. Ozempic's sales soared 58% year over year in the first half of 2023, while Wegovy's sales skyrocketed 367%.
Even brighter days ahead for Novo Nordisk
It's likely that even brighter days lie ahead for Novo Nordisk. The company raised its full-year 2023 sales growth forecast by 5%, thanks to greater expectations for Ozempic and Wegovy.
Novo Nordisk's outlook could get even better. Earlier this month, the big drugmaker announced that it was stopping a kidney outcomes trial of semaglutide.
Halting a clinical study doesn't always mean good news, but it did this time. An interim analysis found that semaglutide was so effective in slowing the progression of renal impairment in patients with type 2 diabetes and chronic kidney disease that the trial didn't need to continue.
The success of Ozempic and Wegovy has given Novo Nordisk plenty of cash to fund the expansion of its pipeline. Over the last couple of months, the company has announced the acquisition of Inversago Pharma and the purchase of experimental hypertension drug ocedurenone from KBP Biosciences.
Although AI hasn't provided a tailwind for Novo Nordisk, it could play a more important role for the company in the future. In September, Novo announced that it would collaborate with Valo Health to use AI in drug discovery. The big drugmaker also licensed three preclinical drug discovery programs targeting cardiovascular diseases that Valo developed using its AI-powered Opal Computational Platform.
Is Novo Nordisk stock a buy now?
Wall Street analysts think that Novo Nordisk stock can go even higher. The consensus 12-month price target reflects an upside potential of more than 20%. However, I don't think Novo Nordisk stock is the best pick for investors right now.
For one thing, the stock's valuation is high. Shares currently trade at a forward earnings multiple of over 34.7x. Clearly, a lot of growth is already baked into the price of this pharma stock. I also expect that Eli Lilly's Mounjaro will vault past Ozempic and Wegovy if it wins U.S. approval as a weight-loss treatment.
While Novo Nordisk stock is beating Apple and Microsoft in 2023, its performance lagged well behind both tech stocks over the last 10 years. I suspect that history will repeat itself. In my view, AI is likely to provide a more durable long-term tailwind than Ozempic and Wegovy will.
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Keith Speights has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool recommends Novo Nordisk. 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) shares have soared close to 40%, while Microsoft (NASDAQ: MSFT) stock is up around 23%. Things changed, however, after Novo Nordisk announced positive results on Aug. 8 for semaglutide in reducing the risk of major cardiovascular events in overweight or obese adults. An interim analysis found that semaglutide was so effective in slowing the progression of renal impairment in patients with type 2 diabetes and chronic kidney disease that the trial didn't need to continue. | Apple (NASDAQ: AAPL) shares have soared close to 40%, while Microsoft (NASDAQ: MSFT) stock is up around 23%. Ozempic's sales soared 58% year over year in the first half of 2023, while Wegovy's sales skyrocketed 367%. The big drugmaker also licensed three preclinical drug discovery programs targeting cardiovascular diseases that Valo developed using its AI-powered Opal Computational Platform. | Apple (NASDAQ: AAPL) shares have soared close to 40%, while Microsoft (NASDAQ: MSFT) stock is up around 23%. The big pharma stock jumped more than 40% year to date before Novo Nordisk's two-for-one stock split conducted on Sept. 20, 2023. While Novo Nordisk stock is beating Apple and Microsoft in 2023, its performance lagged well behind both tech stocks over the last 10 years. | Apple (NASDAQ: AAPL) shares have soared close to 40%, while Microsoft (NASDAQ: MSFT) stock is up around 23%. Who needs AI when you've got Ozempic and Wegovy? Is Novo Nordisk stock a buy now? |
57 | 13,023 | 2023-10-20 00:00:00 UTC | 3 Mutual Funds to Invest in for Pro Management and Low Fees | AAPL | https://www.nasdaq.com/articles/3-mutual-funds-to-invest-in-for-pro-management-and-low-fees | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Mutual funds are a great investment vehicle for people who want a margin of safety and to have a professional money manager handle their capital. That helps explain why mutual funds continue to grow in popularity. Today, more than half (52%) of Americans are invested in mutual funds, up from less than 6% of people in 1980. Generally speaking, mutual funds provide investors with broad exposure to a basket of stocks selected by a professional and actively managed. Because of the actively managed nature of mutual funds, they tend to charge higher fees than more passively managed exchange-traded funds (ETFs).
While some investors and analysts grumble about the high fees charged by mutual funds, there are many funds that offer low fees and expert stock picking. Sourcing these types of mutual funds is advantageous and can help investors save for a comfortable future. Here are three mutual funds to invest in for pro-management and low fees.
Vanguard Information Technology Index Fund Admiral Shares (VITAX)
Source: Golden Dayz / Shutterstock.com
When it comes to mutual funds, Vanguard offers the lowest fees around. The company’s flagship technology-focused fund, the Vanguard Information Technology Index Fund Admiral Shares (NASDAQ:VITAX) charges a management fee of only 0.10%, which is rock bottom for the industry. For that fee, investors get a fund that holds 319 stocks, including prominent tech names such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA) and Adobe (NASDAQ:ADBE) — to name a few.
This fund, focused entirely on companies in the electronics and computing industries, has a strong track record of growth. So far in 2023, the VITAX mutual fund is up 33% as many of its tech holdings have seen their share prices surge with the market rebound from 2022’s downturn. The nice thing about this actively managed tech fund is it also pays a regular dividend to investors. Currently, Vanguard’s VITAX fund pays a quarterly distribution of 44 cents per share.
Schwab Core Equity Fund (SWANX)
Source: Shutterstock
For more diversity, there is the Schwab Core Equity Fund (NASDAQ:SWANX) from investment giant Charles Schwab (NYSE:SCHW). The fund also contains many tech stocks, including Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN). However, its portfolio also includes energy companies such as Exxon Mobil (NYSE:XOM), healthcare companies like Johnson & Johnson (NYSE:JNJ) and even Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B).
In addition to its diversity, the SWANX fund is also more targeted, holding a total of 52 stocks. The expense ratio is higher at 0.73% but still reasonable for a mutual fund of its size. And it pays an annual dividend of $2.79 per unit held, giving it a yield of 1.26%. In terms of performance, the fund has returned 12% to investors so far in 2023. This fund is a good bet for investors wanting a targeted and diverse group of leading U.S. large-cap stocks.
Vanguard European Stock Index Fund Admiral Shares (VEUSX)
Source: Shutterstock
Investors wanting exposure to foreign stocks should consider the Vanguard European Stock Index Fund Admiral Shares (NASDAQ:VEUSX). This is a mutual fund offering broad exposure to the European market. It’s a big fund that holds more than 1,300 stocks that span the entire European region and all economic sectors. As with all Vanguard funds, the VEUSX mutual fund has a low management expense ratio of just 0.13%. However, note that the fund requires a minimum investment of $3,000.
Some of the major holdings in VEUSX include sizable European concerns such as food giant Nestle SA (OTCMKTS:NSRGY), drug maker Novo Nordisk (NYSE:NVO) and energy company Shell (NYSE:SHEL). Nearly 100% of the stocks in the fund are based on the European continent. Over the past year, the VEUSX fund has increased nearly 20%. Like nearly all Vanguard funds, this one pays a quarterly dividend of 32 cents. This investment is a great option for investors who want broad exposure to foreign markets.
On the date of publication, Joel Baglole held long positions in NVDA, AAPL and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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The post 3 Mutual Funds to Invest in for Pro Management and Low Fees 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 that fee, investors get a fund that holds 319 stocks, including prominent tech names such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA) and Adobe (NASDAQ:ADBE) — to name a few. On the date of publication, Joel Baglole held long positions in NVDA, AAPL and MSFT. Generally speaking, mutual funds provide investors with broad exposure to a basket of stocks selected by a professional and actively managed. | For that fee, investors get a fund that holds 319 stocks, including prominent tech names such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA) and Adobe (NASDAQ:ADBE) — to name a few. On the date of publication, Joel Baglole held long positions in NVDA, AAPL and MSFT. The company’s flagship technology-focused fund, the Vanguard Information Technology Index Fund Admiral Shares (NASDAQ:VITAX) charges a management fee of only 0.10%, which is rock bottom for the industry. | For that fee, investors get a fund that holds 319 stocks, including prominent tech names such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA) and Adobe (NASDAQ:ADBE) — to name a few. On the date of publication, Joel Baglole held long positions in NVDA, AAPL and MSFT. While some investors and analysts grumble about the high fees charged by mutual funds, there are many funds that offer low fees and expert stock picking. | For that fee, investors get a fund that holds 319 stocks, including prominent tech names such as Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA) and Adobe (NASDAQ:ADBE) — to name a few. On the date of publication, Joel Baglole held long positions in NVDA, AAPL and MSFT. The company’s flagship technology-focused fund, the Vanguard Information Technology Index Fund Admiral Shares (NASDAQ:VITAX) charges a management fee of only 0.10%, which is rock bottom for the industry. |
58 | 13,042 | 2023-10-19 00:00:00 UTC | These 2 Magnificent Warren Buffett Stocks Might Just Be the Best Businesses in the World | AAPL | https://www.nasdaq.com/articles/these-2-magnificent-warren-buffett-stocks-might-just-be-the-best-businesses-in-the-world | null | null | Berkshire Hathaway owns a lot of stocks in its huge $347 billion portfolio. The average investor could peek at this list of holdings to find potential investment opportunities to allocate some cash to.
Among some of the relatively smaller positions that Warren Buffett owns, investors will find Visa (NYSE: V) and Mastercard (NYSE: MA). Both stocks have crushed the broader market in the past decade.
It's worth learning more about these incredibly lucrative card payments giants, which just might be two of the best businesses in the world.
Outstanding financials
When looking at stocks to buy, Buffett certainly seems to prioritize financially sound companies. Apple, representing 47% of the overall portfolio, is one of the most profitable and cash-rich businesses on the face of the planet. When it comes to the financial picture, Visa and Mastercard are in the same category as the iPhone maker. In fact, they just might be better.
In the three-month period ended June 30, Visa and Mastercard posted operating margins of 61.8% and 58.3%, respectively. I'm sure it would take you a long time to find businesses that can match this level of profitability.
These companies generate lots of free cash flow (FCF), too. Visa made $17.9 billion in FCF in its last fiscal year, which represented a whopping 61% of overall revenue. Mastercard produced $10.1 billion in FCF in 2022, or 45% of total sales. This has allowed both businesses to pay steadily rising dividends over the years, while also repurchasing shares. Buffett definitely appreciates these capital-allocation moves.
Economic moat
There's no doubt that Buffett seeks out companies that possess an economic moat, a term that is usually associated with him. As a long-term investor, finding businesses with this competitive advantage helps raise the chances that they will still be leading their respective industries and generating strong profits well into the future.
Visa and Mastercard both benefit from having a network effect, which could arguably be the strongest type of economic moat. Each company has billions of its branded cards in circulation that are accepted at tens of millions of merchant locations around the world. These companies operate a two-sided model that gets more powerful as it gets bigger. More merchant acceptance points mean there are more places to shop for cardholders. And more cardholders translates to a larger potential customer base for merchants.
In the U.S., Visa and Mastercard combined control about 87% of the market for card payments, having essentially a duopoly position in the industry. By processing trillions of dollars each on a quarterly basis, it's virtually impossible that these two payments networks get disrupted. The barriers to entry are insurmountable. If someone wanted to start a competing payments platform from scratch, it would be extremely difficult to bring on consumers without any merchants, and vice versa.
And while popular fintech companies, particularly PayPal and Block, get a lot of attention for their disruptive potential, a valid argument can be made that they actually benefit Visa and Mastercard by propelling adoption of digital payments.
Look at the thousands of stocks out there, and it would be a tall task finding a business that has a stronger competitive position than Visa or Mastercard.
Looking at the valuations
Although the impressive financials and powerful economic moats are definitely some factors to get excited about, it's also worth pointing out that these stocks are expensive. Visa and Mastercard trade at a price-to-earnings (P/E) ratio of 30 and 37, respectively. To be fair, these are cheaper than their trailing-five-year average P/E multiples, but they represent a significant premium to the overall S&P 500.
Investors who care more about paying the right price when buying stocks could wait for a potentially better entry point. However, I also think it's a reasonable course of action to decide to pay up for these two fantastic companies.
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Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Block, Mastercard, PayPal, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard, short December 2023 $67.50 puts on PayPal, 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. | As a long-term investor, finding businesses with this competitive advantage helps raise the chances that they will still be leading their respective industries and generating strong profits well into the future. If someone wanted to start a competing payments platform from scratch, it would be extremely difficult to bring on consumers without any merchants, and vice versa. And while popular fintech companies, particularly PayPal and Block, get a lot of attention for their disruptive potential, a valid argument can be made that they actually benefit Visa and Mastercard by propelling adoption of digital payments. | Among some of the relatively smaller positions that Warren Buffett owns, investors will find Visa (NYSE: V) and Mastercard (NYSE: MA). The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Block, Mastercard, PayPal, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard, short December 2023 $67.50 puts on PayPal, and short January 2025 $380 calls on Mastercard. | And while popular fintech companies, particularly PayPal and Block, get a lot of attention for their disruptive potential, a valid argument can be made that they actually benefit Visa and Mastercard by propelling adoption of digital payments. Look at the thousands of stocks out there, and it would be a tall task finding a business that has a stronger competitive position than Visa or Mastercard. See the 10 stocks *Stock Advisor returns as of October 16, 2023 Neil Patel and his clients have no position in any of the stocks mentioned. | Outstanding financials When looking at stocks to buy, Buffett certainly seems to prioritize financially sound companies. Investors who care more about paying the right price when buying stocks could wait for a potentially better entry point. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Block, Mastercard, PayPal, and Visa. |
59 | 13,069 | 2023-10-18 00:00:00 UTC | Looking for Growth? These 2 Stocks are No-Brainer Buys Before a New Bull Market | AAPL | https://www.nasdaq.com/articles/looking-for-growth-these-2-stocks-are-no-brainer-buys-before-a-new-bull-market | null | null | Now would be a great moment to add a few growth stocks to your portfolio. Why? Because we're heading toward a bull market, and that type of economic environment tends to favor these sorts of players. We're not there yet, but, since historically, every U.S. market correction or bear has eventually been followed by a bull, there's reason to be optimistic about the future in this case. And smart investments now could lead to big rewards later.
Speaking of smart buys, today, you can pick up some top growth stocks for reasonable prices -- and two in particular would make no-brainer additions to any growth portfolio. I'm talking about trillion-dollar companies that dominate their markets and have posted triple-digit percentage revenue and stock price gains over the past decade: Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). Their growth stories are far from over, and they could truly take off in an economic environment that favors expansion.
Apple
Apple has won over the world with practical yet innovative products such as iPhones and Apple Watches. The company's brand strength offers it both pricing power (the ability to raise prices without losing customers) and a significant moat (i.e., a competitive advantage).
The bottom line is most Apple fans love its products so much that they'll pay a premium for them -- and generally aren't tempted to switch to another brand. In 2023, for the second straight year, Apple topped consulting company Kantar's list of most valuable global brands.
But even when a tough economic environment puts a brake on consumer discretionary spending, and therefore puts pressure on sales of Apple products, the company still can win. That's because it also sells a wide variety of services -- from iCloud data storage to digital content. In its fiscal third quarter, thanks to more than one billion paid subscriptions, the company's services revenue reached a record high.
Over time, Apple has increased its net income and other important measures. For example, growth in return on invested capital shows Apple has used its cash wisely -- and is benefiting from its investments.
AAPL Revenue (Annual) data by YCharts.
And consider its valuation. Even after the stock gained more than 35% this year, recovering from its 2022 slide, it still trades for only 27 times forward earnings estimates. That looks like an absolute steal for a company with Apple's track record, competitive advantages, and prospects.
Amazon
Amazon is a leader in two markets that are growing at double-digit percentage rates -- e-commerce and cloud computing -- and there's reason to believe the company can maintain its dominance in both. In e-commerce, the youngest generation of shoppers favors Amazon, which bodes well for its revenues down the road. More than half of teens in Piper Sandler's latest teen survey say Amazon is their favorite shopping website.
And to keep customers happy, Amazon continues to make its deliveries faster. That's an important point because Amazon has noted customers are more likely to order an item if estimated delivery times are speedy.
As for cloud computing, Amazon Web Services (AWS) has maintained global leadership for years. This is key because AWS generally drives profits at Amazon.
Amazon also has demonstrated its ability to manage during tough times. Last year, Amazon reported its first annual loss in almost a decade as economic headwinds weighed on the business. But Amazon quickly and efficiently turned things around, revamping its cost structure and pouring investment into high-growth areas such as technology infrastructure.
As a result, the company reported a doubling of operating income in the most recent quarter, and it switched to an inflow of cash versus an outflow in the year-earlier period.
Considering Amazon's strengths in two high-growth markets, its valuation of 61 times forward earnings estimates wouldn't scare me away. This company has what it takes to continue thriving -- especially in the next bull market.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com and Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | I'm talking about trillion-dollar companies that dominate their markets and have posted triple-digit percentage revenue and stock price gains over the past decade: Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). AAPL Revenue (Annual) data by YCharts. The bottom line is most Apple fans love its products so much that they'll pay a premium for them -- and generally aren't tempted to switch to another brand. | I'm talking about trillion-dollar companies that dominate their markets and have posted triple-digit percentage revenue and stock price gains over the past decade: Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). AAPL Revenue (Annual) data by YCharts. As for cloud computing, Amazon Web Services (AWS) has maintained global leadership for years. | I'm talking about trillion-dollar companies that dominate their markets and have posted triple-digit percentage revenue and stock price gains over the past decade: Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). AAPL Revenue (Annual) data by YCharts. Amazon Amazon is a leader in two markets that are growing at double-digit percentage rates -- e-commerce and cloud computing -- and there's reason to believe the company can maintain its dominance in both. | I'm talking about trillion-dollar companies that dominate their markets and have posted triple-digit percentage revenue and stock price gains over the past decade: Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). AAPL Revenue (Annual) data by YCharts. That's an important point because Amazon has noted customers are more likely to order an item if estimated delivery times are speedy. |
60 | 13,088 | 2023-10-17 00:00:00 UTC | US STOCKS-Wall St falls as Treasury yields rise after strong sales data, chipmakers slide | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-st-falls-as-treasury-yields-rise-after-strong-sales-data-chipmakers-slide | null | null | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
US retail sales beat expectations in September
Dollar Tree up on brokerage rating upgrade
BofA profit rises, Goldman Sachs profit plunges in Q3
Biden administration to halt China AI chip shipments
Indexes down: Dow 0.13%, S&P 0.70%, Nasdaq 1.30%
Updated at 9:48 a.m. ET/ 1348 GMT
By Ankika Biswas and Shashwat Chauhan
Oct 17 (Reuters) - Wall Street's main indexes fell on Tuesday as Treasury yields rose following hotter-than-expected economic data, while chipmakers fell after the Biden administration said it was halting shipments of AI chips to China.
U.S. retail sales rose 0.7% in September, compared with estimates of a 0.3% rise, according to economists polled by Reuters, as households boosted purchases of motor vehicles and spent more at restaurants and bars, suggesting the economy ended the third quarter on a strong note.
"This is a persistent story ... you can never bet against the U.S. consumer, and this is evidence of it," said Thomas Hayes, chairman at Great Hill Capital.
U.S. Treasury yields extended their advance after the data, with 10-year US10YT=RR yields up at 4.8552%, pressuring megacaps Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O and Amazon.com AMZN.O, down between 0.9% and 1.9%.
Nvida NVDA.O dipped 6.8% after the Biden administration said it plans to halt shipments of advanced artificial intelligence chips to China.
Other chip stocks Advanced Micro Devices AMD.O, Marvell Technology MRVL.O, Qualcomm QCOM.O and Arm Holdings ARM.O fell between 1.5% and 3.8%.
The Philadelphia SE Semiconductor index .SOX dropped 3% to hit a near two-week low.
On the earnings front, Bank of AmericaBAC.N gained 0.5% as it joined rivals in earning more from interest payments by its customers, while investment banking and trading fared better than expected.
Goldman SachsGS.N third-quarter profit dropped less than expected as a nascent recovery in dealmaking offset its $864 million writedown related to GreenSky fintech business and investments in real estate.
"People continue to underestimate the strength of the economy, they continue to underestimate the strength of the consumer and there's nowhere better to reflect that than in bank earnings which have just been off the charts," Hayes added.
Investors also kept tabs on the conflict in the Middle East as Iran's Supreme Leader Ayatollah Ali Khamenei said Israel's "genocide" of Palestinians in the Gaza Strip should stop immediately, state TV reported, sparking concerns the conflict could escalate.
U.S. President Joe Biden is set to visit Israel on Wednesday, after Washington said Prime Minister Benjamin Netanyahu had agreed to allow humanitarian aid to reach Gazans.
Several Federal Reserve officials are set to speak during the day, including New York's John Williams, Richmond's Thomas Barkin, and Minneapolis' Neel Kashkari.
At 9:48 a.m. ET, the Dow Jones Industrial Average .DJI was down 44.46 points, or 0.13%, at 33,940.08, the S&P 500 .SPX was down 30.78 points, or 0.70%, at 4,342.85, and the Nasdaq Composite .IXIC was down 176.28 points, or 1.30%, at 13,391.71.
Information technology .SPLRCT and consumer discretionary .SPLRCD led declines amongst the major S&P 500 sectors, while energy .SPNY and materials .SPLRCM advanced.
Among individual stocks, Dollar Tree DLTR.O rose 2.5% after Goldman Sachs upgraded the discount retail chain's shares to "buy" from "neutral".
Cloud computing firm VMwareVMW.N fell 8.8% as traders cited China approval uncertainty for Broadcom's AVGO.O $61 billion cash-and-stock deal for the company.
Declining issues outnumbered advancers by a 1.00-to-1 ratio on the NYSE. Advancing issues outnumbered decliners by a 1.49-to-1 ratio on the Nasdaq.
The S&P index recorded six new 52-week highs and five new lows, while the Nasdaq recorded 15 new highs and 70 new lows.
(Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru; Editing by Vinay Dwivedi)
(([email protected]; [email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | U.S. Treasury yields extended their advance after the data, with 10-year US10YT=RR yields up at 4.8552%, pressuring megacaps Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O and Amazon.com AMZN.O, down between 0.9% and 1.9%. US retail sales beat expectations in September Dollar Tree up on brokerage rating upgrade BofA profit rises, Goldman Sachs profit plunges in Q3 Biden administration to halt China AI chip shipments Indexes down: Dow 0.13%, S&P 0.70%, Nasdaq 1.30% Updated at 9:48 a.m. ET/ 1348 GMT By Ankika Biswas and Shashwat Chauhan Oct 17 (Reuters) - Wall Street's main indexes fell on Tuesday as Treasury yields rose following hotter-than-expected economic data, while chipmakers fell after the Biden administration said it was halting shipments of AI chips to China. U.S. retail sales rose 0.7% in September, compared with estimates of a 0.3% rise, according to economists polled by Reuters, as households boosted purchases of motor vehicles and spent more at restaurants and bars, suggesting the economy ended the third quarter on a strong note. | U.S. Treasury yields extended their advance after the data, with 10-year US10YT=RR yields up at 4.8552%, pressuring megacaps Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O and Amazon.com AMZN.O, down between 0.9% and 1.9%. US retail sales beat expectations in September Dollar Tree up on brokerage rating upgrade BofA profit rises, Goldman Sachs profit plunges in Q3 Biden administration to halt China AI chip shipments Indexes down: Dow 0.13%, S&P 0.70%, Nasdaq 1.30% Updated at 9:48 a.m. ET/ 1348 GMT By Ankika Biswas and Shashwat Chauhan Oct 17 (Reuters) - Wall Street's main indexes fell on Tuesday as Treasury yields rose following hotter-than-expected economic data, while chipmakers fell after the Biden administration said it was halting shipments of AI chips to China. "People continue to underestimate the strength of the economy, they continue to underestimate the strength of the consumer and there's nowhere better to reflect that than in bank earnings which have just been off the charts," Hayes added. | U.S. Treasury yields extended their advance after the data, with 10-year US10YT=RR yields up at 4.8552%, pressuring megacaps Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O and Amazon.com AMZN.O, down between 0.9% and 1.9%. US retail sales beat expectations in September Dollar Tree up on brokerage rating upgrade BofA profit rises, Goldman Sachs profit plunges in Q3 Biden administration to halt China AI chip shipments Indexes down: Dow 0.13%, S&P 0.70%, Nasdaq 1.30% Updated at 9:48 a.m. ET/ 1348 GMT By Ankika Biswas and Shashwat Chauhan Oct 17 (Reuters) - Wall Street's main indexes fell on Tuesday as Treasury yields rose following hotter-than-expected economic data, while chipmakers fell after the Biden administration said it was halting shipments of AI chips to China. Nvida NVDA.O dipped 6.8% after the Biden administration said it plans to halt shipments of advanced artificial intelligence chips to China. | U.S. Treasury yields extended their advance after the data, with 10-year US10YT=RR yields up at 4.8552%, pressuring megacaps Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O and Amazon.com AMZN.O, down between 0.9% and 1.9%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. US retail sales beat expectations in September Dollar Tree up on brokerage rating upgrade BofA profit rises, Goldman Sachs profit plunges in Q3 Biden administration to halt China AI chip shipments Indexes down: Dow 0.13%, S&P 0.70%, Nasdaq 1.30% Updated at 9:48 a.m. ET/ 1348 GMT By Ankika Biswas and Shashwat Chauhan Oct 17 (Reuters) - Wall Street's main indexes fell on Tuesday as Treasury yields rose following hotter-than-expected economic data, while chipmakers fell after the Biden administration said it was halting shipments of AI chips to China. |
61 | 13,096 | 2023-10-16 00:00:00 UTC | Dow Movers: BA, TRV | AAPL | https://www.nasdaq.com/articles/dow-movers%3A-ba-trv-0 | null | null | In early trading on Monday, shares of Travelers Companies topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.7%. Year to date, Travelers Companies has lost about 10.9% of its value.
And the worst performing Dow component thus far on the day is Boeing, trading down 0.9%. Boeing is lower by about 3.8% looking at the year to date performance.
Two other components making moves today are Apple, trading down 0.9%, and Nike, trading up 1.5% on the day.
VIDEO: Dow Movers: BA, TRV
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In early trading on Monday, shares of Travelers Companies topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.7%. And the worst performing Dow component thus far on the day is Boeing, trading down 0.9%. VIDEO: Dow Movers: BA, TRV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In early trading on Monday, shares of Travelers Companies topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.7%. Year to date, Travelers Companies has lost about 10.9% of its value. And the worst performing Dow component thus far on the day is Boeing, trading down 0.9%. | In early trading on Monday, shares of Travelers Companies topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.7%. And the worst performing Dow component thus far on the day is Boeing, trading down 0.9%. Two other components making moves today are Apple, trading down 0.9%, and Nike, trading up 1.5% on the day. | In early trading on Monday, shares of Travelers Companies topped the list of the day's best performing Dow Jones Industrial Average components, trading up 1.7%. And the worst performing Dow component thus far on the day is Boeing, trading down 0.9%. VIDEO: Dow Movers: BA, TRV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
62 | 13,117 | 2023-10-15 00:00:00 UTC | Guru Fundamental Report for AAPL | AAPL | https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-10 | null | null | Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. This multi-factor model seeks low volatility stocks that also have strong momentum and high net payout yields.
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating using this strategy is 93% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
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.
MARKET CAP: PASS
STANDARD DEVIATION: PASS
TWELVE MINUS ONE MOMENTUM: NEUTRAL
NET PAYOUT YIELD: NEUTRAL
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Pim van Vliet
Pim van Vliet Portfolio
About Pim van Vliet: In investing, you typically need to take more risk to get more return. There is one major exception to this in the factor investing world, though. Low volatility stocks have been proven to outperform their high volatility counterparts, and do so with less risk. Pim van Vliet is the head of Conservative Equities at Robeco Asset Management. His research into conservative factor investing led to the creation of this strategy and the publication of the book "High Returns From Low Risk: A Remarkable Stock Market Paradox". Van Vliet holds a PhD in Financial and Business Economics from Erasmus University Rotterdam.
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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 Multi-Factor Investor model based on the published strategy of Pim van Vliet. APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. | Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's guru fundamental report for APPLE INC (AAPL). Of the 22 guru strategies we follow, AAPL rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. | Of the 22 guru strategies we follow, AAPL rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's guru fundamental report for APPLE INC (AAPL). | Of the 22 guru strategies we follow, AAPL rates highest using our Multi-Factor Investor model based on the published strategy of Pim van Vliet. Detailed Analysis of APPLE INC AAPL Guru Analysis AAPL Fundamental Analysis More Information on Pim van Vliet Pim van Vliet Portfolio About Pim van Vliet: In investing, you typically need to take more risk to get more return. Below is Validea's guru fundamental report for APPLE INC (AAPL). |
63 | 13,125 | 2023-10-14 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-2 | null | null | It's hard to overstate how great of an investment Apple (NASDAQ: AAPL) has been. The stock's 52% trailing-three-year return crushes the 18% gain of the Nasdaq Composite. And if we zoom out even further, the tech giant's shares have climbed at an even more impressive clip.
But while looking at past data can show us previous winners, investors care about what the future holds. With our eyes set on the next three years, what are the prospects for this FAANG stock?
Services leading the way
The iPhone needs no introduction. Apple's flagship product represented nearly half of companywide sales in the most recent quarter (the Q3 2023, ended July 1). With the recent launch of the latest upgrade cycle, these smartphones could be an even more important contributor when Apple reports its fourth-quarter financials on Nov. 2.
Other hardware products, like the iPad, MacBook, AirPods, and Watch, are incredibly popular among consumers. And they exemplify the strong brand presence that the company has. In recent years, though, it's the services segment that is rapidly ascending, now accounting for a quarter of Apple's revenue. Notable offerings in this division include iCloud, Pay, Music, and TV+.
I see two major benefits for Apple from its budding services. The fact that this group carries a gross margin of more than 70% means that as it continues on its path of becoming a bigger revenue contributor for Apple, the company's overall profitability should get a boost.
And from a strictly qualitative perspective, this drives stickiness from consumers to not want to leave the ecosystem. Customer loyalty is what every business strives for. Apple has cracked that code. Looking ahead, it's clear that services will be even more critical to the company's financial success.
Continued operating leverage
In the last three years, Apple's revenue increased at a compound annual rate of 11.1%. That's an impressive rate for such a massive corporation. What's encouraging, however, is that its net income expanded at an even faster clip, an annualized pace of 20.9% during that same time.
This is what's called operating leverage. Apple has proven that it can spread out its fixed costs for things like research and development and SG&A (selling, general, and administrative) functions over rising sales. And this has led to an expanding bottom line. The operating margin went from 21.9% in Q3 2020 to 28.1% in the most recent quarter.
And as I alluded to above, as services grow quicker than products, profitability is set to keep rising. Plus, Apple's pricing power helps. Investors worried that inflationary pressures will continue for an extended period of time are somewhat protected by the company's premium status in the marketplace. That's because consumers have shown the propensity to pay up for what Apple sells.
Keep expectations in check
With the potential for services to become a bigger part of the overall business, coupled with the continuation of faster-rising profits, Apple's fundamentals are almost certainly going to be heading in the right direction over the next three years.
This doesn't mean the stock will automatically end up being a winning investment. The final variable to consider is the valuation. As of this writing, shares are trading hands at a price-to-earnings ratio of 30. On a historical basis, that's way on the expensive side of the equation.
For a company that's mature in its lifecycle, I think the valuation is steep. Expectations are likely pricing in double-digit revenue growth for Apple going forward, which could be a bit of a stretch.
Unless there's another breakthrough product that gets introduced, which is impossible to predict, there's a very real possibility that this stock will disappoint investors looking out over the next three years.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It's hard to overstate how great of an investment Apple (NASDAQ: AAPL) has been. The fact that this group carries a gross margin of more than 70% means that as it continues on its path of becoming a bigger revenue contributor for Apple, the company's overall profitability should get a boost. Apple has proven that it can spread out its fixed costs for things like research and development and SG&A (selling, general, and administrative) functions over rising sales. | It's hard to overstate how great of an investment Apple (NASDAQ: AAPL) has been. The fact that this group carries a gross margin of more than 70% means that as it continues on its path of becoming a bigger revenue contributor for Apple, the company's overall profitability should get a boost. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | It's hard to overstate how great of an investment Apple (NASDAQ: AAPL) has been. In recent years, though, it's the services segment that is rapidly ascending, now accounting for a quarter of Apple's revenue. Continued operating leverage In the last three years, Apple's revenue increased at a compound annual rate of 11.1%. | It's hard to overstate how great of an investment Apple (NASDAQ: AAPL) has been. Continued operating leverage In the last three years, Apple's revenue increased at a compound annual rate of 11.1%. The operating margin went from 21.9% in Q3 2020 to 28.1% in the most recent quarter. |
64 | 13,132 | 2023-10-13 00:00:00 UTC | What BlackRock's Earnings Tell You About The Stock Market Tide | AAPL | https://www.nasdaq.com/articles/what-blackrocks-earnings-tell-you-about-the-stock-market-tide | null | null | The masters of the universe, otherwise known as the institutions that call upon investor capital (individual citizens or even entire governments), can often act as a proxy for what the global economy is going through and, more importantly, where it is headed.
Today, one of the world's largest asset managers has reported quarterly earnings results, where investors can find where money is being moved and where clients are being advised to invest. A little-known indicator of future performance can be dissected in these documents: welcome to the big leagues.
After a swift reaction to the release, BlackRock (NYSE: BLK) stock has changed little, which can be a good thing to start. Still, the juice that can really make you take a second look at the market lies ahead within the data-driven assumptions of the finance titan.
Sign of the Times
Understanding what BlackRock's most prominent clients are doing, otherwise known as those fish that typically stick to the big sharks for leftover food and protection, can give you an inside look into where the sharks are hunting for alpha.
Investors like Warren Buffett were criticized for keeping a large cash balance when the stock market eked out single to double-digit returns. Yet, it looks like the big guys are following suit this quarter.
Regarding banking stocks, you can get a pulse on what has transpired year-to-date. Through the Financial Select Sector SPDR Fund (NYSEARCA: XLF), the performance of most of these names can be checked live, and 2023 could have been more exciting with a close to 0.0% performance.
So now, how can anyone digest the massive data output within quarterly SEC filings and all the corporate lingo that comes with them? Do not worry; MarketBeat has got you covered.
Beginning with what is likely to make headlines soon, net inflows and outflows to and from the bank's clients and products can be a tremendous first pillar upon which to build your outlook.
In the case of flows, BlackRock saw its first net outflows since the outset of the COVID-19 pandemic, with a total of $13 billion pulled from long-term investment fund products; where is all the money going? The answer may surprise you.
Clients are choosing to pivot their funds into money market products and other bond strategies. Can you blame them for wanting to take some risk off the table and instead take advantage of the near 5.0% yields that treasuries offer today?
Within these reports, an undisclosed international client pulled out as much as $19 billion from equity index products. This department saw its AUM (assets under management) fall by as much as $49 billion.
These moves are typically tied to advice coming from either 'family shops' or insiders at BlackRock advising on their clients' best interests, and the view driving the advice is what you came here for.
Implications
Considering that the S&P 500 has been struggling to break past its last point of resistance, and darling stocks like Apple (NASDAQ: AAPL) and even Walt Disney (NYSE: DIS) have been struggling with price declines, it makes sense that the house view is far from optimistic about stocks.
What are other investors to do with this information? As intimidating as it may seem, following the money is straightforward. Suppose the big guys are beginning to hoard liquidity for better prices, buying bonds, or seeking yield. In that case, there are ways you can follow the strategy.
MarketBeat offers a great screening tool, which allows you to find high-quality, profitable stocks at dirt-cheap valuations, sending you miles ahead of everyone else scrambling and waiting for BlackRock's next release.
For everything else regarding bonds, there are two main players stepping up to the plate, offering upside and yield at the same time. If bonds seem too boring for you, check out these stocks offering high yields with upside appreciation potential as well.
If bonds excite you, congratulations on being one of the few savvy investors. The Vanguard Short-Term Inflation-Protected Securities ETF (NASDAQ: VTIP) is a great way to generate yield. At the same time, inflation remains high and will get some appreciation once inflation inevitably lowers to the FED's 2% target.
While Vanguard's ETF offers a 3.9% dividend yield, there is another ETF out there beating this rate and offering similar upside potential. The iShares Core 10+ Year USD Bond ETF (NYSEARCA: ILTB) comes to save your newly liquidated cash with a 4.8% yield.
There you have it; now you are armed with BlackRock's advice without paying the endless fees required for a proper sit down with the pros. Whether you take the equities route, the bonds route, or both, you too can beat the market this coming quarter.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Implications Considering that the S&P 500 has been struggling to break past its last point of resistance, and darling stocks like Apple (NASDAQ: AAPL) and even Walt Disney (NYSE: DIS) have been struggling with price declines, it makes sense that the house view is far from optimistic about stocks. The masters of the universe, otherwise known as the institutions that call upon investor capital (individual citizens or even entire governments), can often act as a proxy for what the global economy is going through and, more importantly, where it is headed. Today, one of the world's largest asset managers has reported quarterly earnings results, where investors can find where money is being moved and where clients are being advised to invest. | Implications Considering that the S&P 500 has been struggling to break past its last point of resistance, and darling stocks like Apple (NASDAQ: AAPL) and even Walt Disney (NYSE: DIS) have been struggling with price declines, it makes sense that the house view is far from optimistic about stocks. Today, one of the world's largest asset managers has reported quarterly earnings results, where investors can find where money is being moved and where clients are being advised to invest. If bonds seem too boring for you, check out these stocks offering high yields with upside appreciation potential as well. | Implications Considering that the S&P 500 has been struggling to break past its last point of resistance, and darling stocks like Apple (NASDAQ: AAPL) and even Walt Disney (NYSE: DIS) have been struggling with price declines, it makes sense that the house view is far from optimistic about stocks. Today, one of the world's largest asset managers has reported quarterly earnings results, where investors can find where money is being moved and where clients are being advised to invest. Clients are choosing to pivot their funds into money market products and other bond strategies. | Implications Considering that the S&P 500 has been struggling to break past its last point of resistance, and darling stocks like Apple (NASDAQ: AAPL) and even Walt Disney (NYSE: DIS) have been struggling with price declines, it makes sense that the house view is far from optimistic about stocks. Clients are choosing to pivot their funds into money market products and other bond strategies. These moves are typically tied to advice coming from either 'family shops' or insiders at BlackRock advising on their clients' best interests, and the view driving the advice is what you came here for. |
65 | 13,150 | 2023-10-12 00:00:00 UTC | Alphabet Stock (NASDAQ:GOOGL): Analysts Predict Greater Growth from AI Boom | AAPL | https://www.nasdaq.com/articles/alphabet-stock-nasdaq%3Agoogl%3A-analysts-predict-greater-growth-from-ai-boom | null | null | Despite the ongoing antitrust trial and macro uncertainty, shares of Google parent Alphabet (NASDAQ:GOOGL, GOOG) have risen more than 59% so far this year. Several analysts have recently expressed optimism about the company’s continued growth, supported by generative artificial intelligence (AI)-induced opportunities, continued innovation, and Google’s leadership in the Search space.
Analysts Optimistic About GOOGL’s Growth Potential
Google is facing an antitrust trial, with the Department of Justice (DOJ) accusing the internet giant of entering into deals with Apple (NASDAQ:AAPL) and several other companies to maintain its dominance as the leading internet search engine and thwart competition.
While Monness analyst Brian White acknowledges the presence of regulatory headwinds and a dynamic competitive landscape, he reiterated a Buy rating on GOOGL stock with a price target of $160 on October 5 following the company’s “Made by Google” event. White noted that the company infused its new Pixel offerings with AI-powered experiences.
At the event, the company unveiled the Google Pixel 8 and Pixel 8 Pro smartphones, which are powered by the new Google Tensor G3 chip and have more AI capabilities. Alphabet also launched Google Watch 2 with advanced health tracking features supported by AI.
“Given Google’s storied history developing AI innovations, we believe the company has an opportunity to differentiate itself in mobile devices,” said White.
Like White, Goldman Sachs analyst Eric Sheridan also reacted positively to the “Made by Google” event. He continues to view Alphabet as one of the “best-positioned” companies to seamlessly integrate AI features into its consumer-facing and enterprise-facing offerings. Sheridan reiterated a Buy rating on Alphabet stock with a price target of $154.
Another GOOGL bull, Bank of America analyst Justin Post, reaffirmed a Buy rating on GOOGL stock on October 4 and increased the price target to $146 from $142. Post said that Statcounter's data revealed that Google's search market share declined slightly (27 basis points month-over-month and 84 basis points year-over-year) to 91.6% in September, but continues to be relatively stable since OpenAI’s ChatGPT was launched in late 2022.
He added that the market share of Microsoft’s (NASDAQ:MSFT) Bing Search engine fell 2 basis points month-over-month and 44 basis points year-over-year to 3% in September.
Post thinks that AI will be incrementally positive to Google's ad revenue in the second half of the year, fueled by the growing advertiser adoption of the Performance Max suite and the ramp of AI-driven offerings like dynamic keyword campaigns. With search growth accelerating, the analyst anticipates Google’s search business to enjoy solid margin leverage in the second half of 2023. Moreover, he expects cost efficiencies to drive upside to analysts’ estimates in 2024.
What is the Target Price of GOOGL Stock?
With 31 Buys and four Holds, Google stock scores Wall Street’s Strong Buy consensus rating. The average price target of $150.85 implies 7.3% upside.
Conclusion
Several analysts recently reaffirmed their bullish stance on GOOGL stock due to AI-led prospects. In fact, in a research note on Tuesday, Wedbush analyst Daniel Ives said that his firm's proprietary generative AI survey identified Microsoft and Google as the early leaders in the AI race. Overall, Wall Street remains optimistic about GOOGL stock, backed by continued innovation, search engine dominance, growth potential in the cloud, and robust AI opportunities.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Analysts Optimistic About GOOGL’s Growth Potential Google is facing an antitrust trial, with the Department of Justice (DOJ) accusing the internet giant of entering into deals with Apple (NASDAQ:AAPL) and several other companies to maintain its dominance as the leading internet search engine and thwart competition. He continues to view Alphabet as one of the “best-positioned” companies to seamlessly integrate AI features into its consumer-facing and enterprise-facing offerings. Post thinks that AI will be incrementally positive to Google's ad revenue in the second half of the year, fueled by the growing advertiser adoption of the Performance Max suite and the ramp of AI-driven offerings like dynamic keyword campaigns. | Analysts Optimistic About GOOGL’s Growth Potential Google is facing an antitrust trial, with the Department of Justice (DOJ) accusing the internet giant of entering into deals with Apple (NASDAQ:AAPL) and several other companies to maintain its dominance as the leading internet search engine and thwart competition. Post said that Statcounter's data revealed that Google's search market share declined slightly (27 basis points month-over-month and 84 basis points year-over-year) to 91.6% in September, but continues to be relatively stable since OpenAI’s ChatGPT was launched in late 2022. He added that the market share of Microsoft’s (NASDAQ:MSFT) Bing Search engine fell 2 basis points month-over-month and 44 basis points year-over-year to 3% in September. | Analysts Optimistic About GOOGL’s Growth Potential Google is facing an antitrust trial, with the Department of Justice (DOJ) accusing the internet giant of entering into deals with Apple (NASDAQ:AAPL) and several other companies to maintain its dominance as the leading internet search engine and thwart competition. While Monness analyst Brian White acknowledges the presence of regulatory headwinds and a dynamic competitive landscape, he reiterated a Buy rating on GOOGL stock with a price target of $160 on October 5 following the company’s “Made by Google” event. Another GOOGL bull, Bank of America analyst Justin Post, reaffirmed a Buy rating on GOOGL stock on October 4 and increased the price target to $146 from $142. | Analysts Optimistic About GOOGL’s Growth Potential Google is facing an antitrust trial, with the Department of Justice (DOJ) accusing the internet giant of entering into deals with Apple (NASDAQ:AAPL) and several other companies to maintain its dominance as the leading internet search engine and thwart competition. He continues to view Alphabet as one of the “best-positioned” companies to seamlessly integrate AI features into its consumer-facing and enterprise-facing offerings. Sheridan reiterated a Buy rating on Alphabet stock with a price target of $154. |
66 | 13,179 | 2023-10-11 00:00:00 UTC | Notable Wednesday Option Activity: AAPL, AMGN, MRNA | AAPL | https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-aapl-amgn-mrna | null | null | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 410,635 contracts have traded so far, representing approximately 41.1 million underlying shares. That amounts to about 69.3% of AAPL's average daily trading volume over the past month of 59.2 million shares. Especially high volume was seen for the $180 strike call option expiring October 13, 2023, with 56,782 contracts trading so far today, representing approximately 5.7 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $180 strike highlighted in orange:
Amgen Inc (Symbol: AMGN) options are showing a volume of 17,221 contracts thus far today. That number of contracts represents approximately 1.7 million underlying shares, working out to a sizeable 68% of AMGN's average daily trading volume over the past month, of 2.5 million shares. Particularly high volume was seen for the $230 strike put option expiring January 19, 2024, with 1,570 contracts trading so far today, representing approximately 157,000 underlying shares of AMGN. Below is a chart showing AMGN's trailing twelve month trading history, with the $230 strike highlighted in orange:
And Moderna Inc (Symbol: MRNA) saw options trading volume of 23,866 contracts, representing approximately 2.4 million underlying shares or approximately 63.7% of MRNA's average daily trading volume over the past month, of 3.7 million shares. Particularly high volume was seen for the $140 strike put option expiring October 20, 2023, with 3,640 contracts trading so far today, representing approximately 364,000 underlying shares of MRNA. Below is a chart showing MRNA's trailing twelve month trading history, with the $140 strike highlighted in orange:
For the various different available expirations for AAPL options, AMGN options, or MRNA options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $180 strike call option expiring October 13, 2023, with 56,782 contracts trading so far today, representing approximately 5.7 million underlying shares of AAPL. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 410,635 contracts have traded so far, representing approximately 41.1 million underlying shares. That amounts to about 69.3% of AAPL's average daily trading volume over the past month of 59.2 million shares. | Especially high volume was seen for the $180 strike call option expiring October 13, 2023, with 56,782 contracts trading so far today, representing approximately 5.7 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $180 strike highlighted in orange: Amgen Inc (Symbol: AMGN) options are showing a volume of 17,221 contracts thus far today. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 410,635 contracts have traded so far, representing approximately 41.1 million underlying shares. | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 410,635 contracts have traded so far, representing approximately 41.1 million underlying shares. Especially high volume was seen for the $180 strike call option expiring October 13, 2023, with 56,782 contracts trading so far today, representing approximately 5.7 million underlying shares of AAPL. That amounts to about 69.3% of AAPL's average daily trading volume over the past month of 59.2 million shares. | Especially high volume was seen for the $180 strike call option expiring October 13, 2023, with 56,782 contracts trading so far today, representing approximately 5.7 million underlying shares of AAPL. Below is a chart showing MRNA's trailing twelve month trading history, with the $140 strike highlighted in orange: For the various different available expirations for AAPL options, AMGN options, or MRNA options, visit StockOptionsChannel.com. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Apple Inc (Symbol: AAPL), where a total of 410,635 contracts have traded so far, representing approximately 41.1 million underlying shares. |
67 | 13,189 | 2023-10-10 00:00:00 UTC | Agree To Buy Apple At $75, Earn 1.5% Using Options | AAPL | https://www.nasdaq.com/articles/agree-to-buy-apple-at-%2475-earn-1.5-using-options | null | null | Investors eyeing a purchase of Apple Inc (Symbol: AAPL) stock, but cautious about paying the going market price of $178.27/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2026 put at the $75 strike, which has a bid at the time of this writing of $1.15. Collecting that bid as the premium represents a 1.5% return against the $75 commitment, or a 0.7% annualized rate of return (at Stock Options Channel we call this the YieldBoost).
Selling a put does not give an investor access to AAPL's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. And the person on the other side of the contract would only benefit from exercising at the $75 strike if doing so produced a better outcome than selling at the going market price. (Do options carry counterparty risk? This and six other common options myths debunked). So unless Apple Inc sees its shares decline 58.2% and the contract is exercised (resulting in a cost basis of $73.85 per share before broker commissions, subtracting the $1.15 from $75), the only upside to the put seller is from collecting that premium for the 0.7% annualized rate of return.
Worth considering, is that the annualized 0.7% figure actually exceeds the 0.5% annualized dividend paid by Apple Inc, based on the current share price of $178.27. And yet, if an investor was to buy the stock at the going market price in order to collect the dividend, there is greater downside because the stock would have to lose 58.23% to reach the $75 strike price.
Always important when discussing dividends is the fact that, in general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Apple Inc, looking at the dividend history chart for AAPL below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.5% annualized dividend yield.
Below is a chart showing the trailing twelve month trading history for Apple Inc, and highlighting in green where the $75 strike is located relative to that history:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2026 put at the $75 strike for the 0.7% annualized rate of return represents good reward for the risks. We calculate the trailing twelve month volatility for Apple Inc (considering the last 251 trading day closing values as well as today's price of $178.27) to be 27%. For other put options contract ideas at the various different available expirations, visit the AAPL Stock Options page of StockOptionsChannel.com.
In mid-afternoon trading on Tuesday, the put volume among S&P 500 components was 1.81M contracts, with call volume at 1.96M, for a put:call ratio of 0.92 so far for the day, which is unusually high compared to the long-term median put:call ratio of .65. In other words, there are lots more put buyers out there in options trading so far today than would normally be seen, as compared to call buyers. Find out which 15 call and put options traders are talking about today.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Investors eyeing a purchase of Apple Inc (Symbol: AAPL) stock, but cautious about paying the going market price of $178.27/share, might benefit from considering selling puts among the alternative strategies at their disposal. Selling a put does not give an investor access to AAPL's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. In the case of Apple Inc, looking at the dividend history chart for AAPL below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.5% annualized dividend yield. | Selling a put does not give an investor access to AAPL's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. Investors eyeing a purchase of Apple Inc (Symbol: AAPL) stock, but cautious about paying the going market price of $178.27/share, might benefit from considering selling puts among the alternative strategies at their disposal. In the case of Apple Inc, looking at the dividend history chart for AAPL below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.5% annualized dividend yield. | Selling a put does not give an investor access to AAPL's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. Investors eyeing a purchase of Apple Inc (Symbol: AAPL) stock, but cautious about paying the going market price of $178.27/share, might benefit from considering selling puts among the alternative strategies at their disposal. In the case of Apple Inc, looking at the dividend history chart for AAPL below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.5% annualized dividend yield. | In the case of Apple Inc, looking at the dividend history chart for AAPL below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.5% annualized dividend yield. Investors eyeing a purchase of Apple Inc (Symbol: AAPL) stock, but cautious about paying the going market price of $178.27/share, might benefit from considering selling puts among the alternative strategies at their disposal. Selling a put does not give an investor access to AAPL's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. |
68 | 13,211 | 2023-10-09 00:00:00 UTC | Analysts Expect IYW To Hit $125 | AAPL | https://www.nasdaq.com/articles/analysts-expect-iyw-to-hit-%24125-0 | null | null | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares U.S. Technology ETF (Symbol: IYW), we found that the implied analyst target price for the ETF based upon its underlying holdings is $124.68 per unit.
With IYW trading at a recent price near $107.97 per unit, that means that analysts see 15.48% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IYW's underlying holdings with notable upside to their analyst target prices are UiPath Inc (Symbol: PATH), Apple Inc (Symbol: AAPL), and Pinterest Inc (Symbol: PINS). Although PATH has traded at a recent price of $16.72/share, the average analyst target is 17.05% higher at $19.57/share. Similarly, AAPL has 16.08% upside from the recent share price of $177.49 if the average analyst target price of $206.03/share is reached, and analysts on average are expecting PINS to reach a target price of $32.46/share, which is 15.59% above the recent price of $28.08. Below is a twelve month price history chart comparing the stock performance of PATH, AAPL, and PINS:
Combined, PATH, AAPL, and PINS represent 18.35% of the iShares U.S. Technology ETF. Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
iShares U.S. Technology ETF IYW $107.97 $124.68 15.48%
UiPath Inc PATH $16.72 $19.57 17.05%
Apple Inc AAPL $177.49 $206.03 16.08%
Pinterest Inc PINS $28.08 $32.46 15.59%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
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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. | iShares U.S. Technology ETF IYW $107.97 $124.68 15.48% UiPath Inc PATH $16.72 $19.57 17.05% Apple Inc AAPL $177.49 $206.03 16.08% Pinterest Inc PINS $28.08 $32.46 15.59% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of IYW's underlying holdings with notable upside to their analyst target prices are UiPath Inc (Symbol: PATH), Apple Inc (Symbol: AAPL), and Pinterest Inc (Symbol: PINS). Similarly, AAPL has 16.08% upside from the recent share price of $177.49 if the average analyst target price of $206.03/share is reached, and analysts on average are expecting PINS to reach a target price of $32.46/share, which is 15.59% above the recent price of $28.08. | Three of IYW's underlying holdings with notable upside to their analyst target prices are UiPath Inc (Symbol: PATH), Apple Inc (Symbol: AAPL), and Pinterest Inc (Symbol: PINS). Similarly, AAPL has 16.08% upside from the recent share price of $177.49 if the average analyst target price of $206.03/share is reached, and analysts on average are expecting PINS to reach a target price of $32.46/share, which is 15.59% above the recent price of $28.08. iShares U.S. Technology ETF IYW $107.97 $124.68 15.48% UiPath Inc PATH $16.72 $19.57 17.05% Apple Inc AAPL $177.49 $206.03 16.08% Pinterest Inc PINS $28.08 $32.46 15.59% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, AAPL has 16.08% upside from the recent share price of $177.49 if the average analyst target price of $206.03/share is reached, and analysts on average are expecting PINS to reach a target price of $32.46/share, which is 15.59% above the recent price of $28.08. Three of IYW's underlying holdings with notable upside to their analyst target prices are UiPath Inc (Symbol: PATH), Apple Inc (Symbol: AAPL), and Pinterest Inc (Symbol: PINS). Below is a twelve month price history chart comparing the stock performance of PATH, AAPL, and PINS: Combined, PATH, AAPL, and PINS represent 18.35% of the iShares U.S. Technology ETF. | Below is a twelve month price history chart comparing the stock performance of PATH, AAPL, and PINS: Combined, PATH, AAPL, and PINS represent 18.35% of the iShares U.S. Technology ETF. Three of IYW's underlying holdings with notable upside to their analyst target prices are UiPath Inc (Symbol: PATH), Apple Inc (Symbol: AAPL), and Pinterest Inc (Symbol: PINS). Similarly, AAPL has 16.08% upside from the recent share price of $177.49 if the average analyst target price of $206.03/share is reached, and analysts on average are expecting PINS to reach a target price of $32.46/share, which is 15.59% above the recent price of $28.08. |
69 | 13,234 | 2023-10-08 00:00:00 UTC | These Stocks Turned $10,000 Into $13 Million (or More) and Are Not Done Rising Yet | AAPL | https://www.nasdaq.com/articles/these-stocks-turned-%2410000-into-%2413-million-or-more-and-are-not-done-rising-yet | null | null | Growth investors often lament that if they had just put $10,000 in one of the more successful tech giants, they would be millionaires today. Knowing that, they will often buy what they think are stocks that will soar in the future in the hope of earning such a return years later.
Admittedly, these giant companies have probably grown too large to achieve another 1,300-fold gain or greater. Nonetheless, a trio of tech titans are probably not done growing yet and appear capable of making new investors considerably richer. Three Fool contributors believe such potential remains in Apple (NASDAQ: AAPL), Oracle (NYSE: ORCL), and Amazon (NASDAQ: AMZN).
The stock market king has plenty of gas left in the tank.
Jake Lerch (Apple): A relatively modest investment of $10,000 in Apple when Steve Jobs returned to the company in February 1997 would have grown to more than $14 million today.
AAPL total return level data by YCharts.
Most of that astonishing return can be chalked up to the iPhone. Introduced in 2007, it launched Apple into the stratosphere, making it America's largest company by market cap by 2011.
However, if Apple is to stay on top, it will need to evolve. Hardware revenue is declining: In its most recent quarter (ending on June 30), Apple reported iPhone sales of $39.7 billion, down 2.4% from a year earlier. Mac sales dropped 7.3%, and iPad revenue plummeted almost 20%.
Image source: Apple
What rode to the rescue was Apple's services segment -- and wearables to a much lesser extent. Services generated $21.2 billion in revenue. This unit, which includes sales from features like iCloud, iTunes, and Apple TV+, grew 8.2% year over year and cut the company's total sales contraction to just 1.4%.
The services unit, which also includes revenue generated through the App Store, advertising (including on Apple News), and extended warranties, should continue to grow in importance. Not only is the segment driving revenue growth, but it also has fantastic margins. In its most recent quarter, it had gross margins above 70%, roughly double the hardware unit's 35%.
Apple remains a solid investment, but maybe not for the reason many investors think. Nowadays, it is as much about services -- if not more -- as it is about hardware.
Don't underestimate one of Wall Street's tech leaders
Justin Pope (Oracle): Oracle has been around for decades, successfully evolving from database software to a mix of cloud computing products and services. A modest $10,000 investment would have grown to nearly $21 million, and the stock has trounced the broader market over the past five years, so this stock still has juice.
ORCL total return level data by YCharts.
Artificial intelligence (AI) requires processing tremendous amounts of data to train models, and this is potentially a catalyst for Oracle. Co-founder and current chief technical officer Larry Ellison said on the company's fiscal 2024 first-quarter earnings call that its interconnected Nvidia superclusters, groups of powerful computers that share computing power, can train AI models twice as fast for less than half the cost of competitors. He also announced that Elon Musk's xAI company has signed on to train its models with Oracle.
The company wants to grow its revenue from $50 billion in fiscal 2023 to $65 billion in fiscal 2026, a 30% increase over the next three years. It is already a cash cow, converting between 15% and 30% of sales into free cash flow in a given year. That money tends to wind up in shareholders' pockets via dividends, or it grows the company via bolt-on acquisitions.
The above chart paints a clear track record of value creation for investors. While 30% growth over three years isn't as exciting as some other stocks on Wall Street, Oracle is a slow and steady performer that long-term investors should feel good about holding on to.
The e-commerce company that has a bright future transforming tech
Will Healy (Amazon): Amazon has served its shareholders well for most of its history, but the totality of this e-commerce pioneer's gains might surprise some investors. Those who invested $10,000 in Amazon's May 1997 initial public offering and held on now own shares worth almost $13 million.
AMZN total return level data by YCharts.
Most companies that have reached a $1.3 trillion market cap are past their days of rapid growth. But that might not be the case with Amazon. After building a first-mover advantage in e-commerce, it pioneered the cloud computing industry through Amazon Web Services (AWS).
And it has leveraged its e-commerce site to build faster-growing advertising, subscription, and third-party seller businesses. Online selling remains its largest revenue source, but the financial statements imply that this part of the business loses money.
Nonetheless, net income should grow rapidly thanks to the higher profit margins of its comparatively smaller AWS business, which has typically earned the majority of Amazon's operating income. Although it does not break out earnings for advertising, subscriptions, or third-party selling, such businesses usually yield higher margins.
Moreover, Amazon has recovered from the lows of 2022, when it had fallen about 55% from the all-time high set in 2021. And even with the recovery, the cloud stock trades at an approximate 33% discount from that record.
Ultimately, growth-focused investors should start looking at Amazon as a tech name rather than a retailer. Yes, it should remain a popular e-commerce site, but the company derives its present growth potential from AWS and the ancillary businesses tied to its website.
As long as the growth of those enterprises continues, Amazon's investors will likely want to stick with it regardless of when they bought shares.
Find out why Apple is one of the 10 best stocks to buy now
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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. Jake Lerch has positions in Amazon.com. Justin Pope has no position in any of the stocks mentioned. Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com, Apple, and Oracle. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Three Fool contributors believe such potential remains in Apple (NASDAQ: AAPL), Oracle (NYSE: ORCL), and Amazon (NASDAQ: AMZN). AAPL total return level data by YCharts. While 30% growth over three years isn't as exciting as some other stocks on Wall Street, Oracle is a slow and steady performer that long-term investors should feel good about holding on to. | Three Fool contributors believe such potential remains in Apple (NASDAQ: AAPL), Oracle (NYSE: ORCL), and Amazon (NASDAQ: AMZN). AAPL total return level data by YCharts. Don't underestimate one of Wall Street's tech leaders Justin Pope (Oracle): Oracle has been around for decades, successfully evolving from database software to a mix of cloud computing products and services. | Three Fool contributors believe such potential remains in Apple (NASDAQ: AAPL), Oracle (NYSE: ORCL), and Amazon (NASDAQ: AMZN). AAPL total return level data by YCharts. Jake Lerch (Apple): A relatively modest investment of $10,000 in Apple when Steve Jobs returned to the company in February 1997 would have grown to more than $14 million today. | Three Fool contributors believe such potential remains in Apple (NASDAQ: AAPL), Oracle (NYSE: ORCL), and Amazon (NASDAQ: AMZN). AAPL total return level data by YCharts. A modest $10,000 investment would have grown to nearly $21 million, and the stock has trounced the broader market over the past five years, so this stock still has juice. |
70 | 13,241 | 2023-10-07 00:00:00 UTC | 51% of Warren Buffett's Berkshire Hathaway Portfolio Is Invested in This 1 AI Stock | AAPL | https://www.nasdaq.com/articles/51-of-warren-buffetts-berkshire-hathaway-portfolio-is-invested-in-this-1-ai-stock | null | null | Fool.com contributor Parkev Tatevosian highlights his thoughts on why Warren Buffett and his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio allocate a large percentage to only one stock.
*Stock prices used were the afternoon prices of Oct. 4, 2023. The video was published on Oct. 6, 2023.
Find out why Apple is one of the 10 best stocks to buy now
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They just revealed their ten top stock picks for investors to buy right now. Apple is on the list -- but there are nine others you may be overlooking.
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*Stock Advisor returns as of October 2, 2023
Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Find out why Apple is one of the 10 best stocks to buy now Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. *Stock Advisor returns as of October 2, 2023 Parkev Tatevosian, CFA has positions in Apple. | Fool.com contributor Parkev Tatevosian highlights his thoughts on why Warren Buffett and his Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio allocate a large percentage to only one stock. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. | After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. *Stock Advisor returns as of October 2, 2023 Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. | *Stock Advisor returns as of October 2, 2023 Parkev Tatevosian, CFA has positions in Apple. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. His opinions remain his own and are unaffected by The Motley Fool. |
71 | 13,248 | 2023-10-06 00:00:00 UTC | 3 Top Gaming Stocks to Buy in October | AAPL | https://www.nasdaq.com/articles/3-top-gaming-stocks-to-buy-in-october-0 | null | null | The video game market is vast and has blown up in recent years with the introduction of new earning opportunities, including mobile games, microtransactions (in-game purchases), cloud gaming, and more. Video games are an ever-expanding industry that allows companies to profit from constant demand for new titles and upgraded hardware.
Data from Statista says the industry is worth $334 billion and is projected to have a compound annual growth rate of 9% through 2027.
As a result, many of the biggest names in tech have ventured into this consistently growing sector. Even if gaming isn't a company's main business, it can still benefit significantly from the market's reliable growth, and so can investors. Video game stocks are excellent options to hold over many years.
Here are three top video game stocks to buy in October.
1. Apple
Apple (NASDAQ: AAPL) might not be the first company you think of in a discussion about gaming, but it is the world's third-largest video game company after Tencent and Sony. It massively profits from the industry through its App Store, where mobile games accounted for 66% of consumer spending in 2022.
The App Store has become one of the most lucrative parts of Apple's business, with the company announcing in May that the platform had generated over $1 trillion last year. The majority of that went to developers. However, the digital marketplace's success has led services to become Apple's second-highest-earning segment, behind only the iPhone.
What's more, services revenue growth is outpacing the company's smartphone business, with a 14% rise in net sales in 2022 compared to 7% for the iPhone.
The company will launch its first virtual/augmented reality (VR/AR) headset next year, which could open a new market of gaming opportunities. Alongside a long history of consistent stock growth, Apple is an attractive way to invest in video games.
2. Microsoft
Microsoft (NASDAQ: MSFT) is just after Apple in the list of world's largest game companies, coming in fourth. But it plans to leapfrog the iPhone company and become the third largest by acquiring games developer Activision Blizzard in a deal worth $69 billion.
The purchase was first announced in January 2022 and has been held up by a lengthy regulatory process and antitrust concerns. Microsoft has needed approval from regulators worldwide, with the U.K. being the last authority needed to sign off.
It's inching closer to completing the deal after the U.K. gave preliminary approval last month, releasing a statement saying the company had "substantially" addressed its concerns.
Microsoft is already one of the biggest names in gaming with its Xbox brand, and acquiring Activision will give it access to a valuable library of content, which will potentially attract millions of new subscribers to its Xbox Game Pass service and cause an uptick in console sales.
So it's not a bad idea to invest in Microsoft stock before the merger.
3. Advanced Micro Devices
Advanced Micro Devices (NASDAQ: AMD) has garnered much attention this year thanks to its growing potential in artificial intelligence. However, the company has also had a crucial role in video games for years. Its chips are popular among PC gamers and are used to power custom-built gaming computers worldwide.
The company has suffered from a downturn in the PC market over the past year, as inflation hikes have caused reductions in consumer spending. But it could see boosts in profits over the long term as the industry recovers.
AMD is an attractive gaming stock with its diversified position in the sector, which also includes consoles. The company exclusively supplies chips to Sony's PlayStation 5 and Microsoft's Xbox Series X|S. The success of these consoles led to a 21% year-over-year rise in gaming revenue for AMD in fiscal 2022.
The company's gaming segment hasn't grown as much in the first half of 2023 as last year, but rumors of a PlayStation 5 "Pro" version have swirled for months, with similar expectations for an upgraded Xbox Series X to be released in 2024.
The updated consoles would align with past mid-generation console releases from both companies and could bolster earnings for AMD next year. It could be a smart move to add the company's stock ahead of the potential console launches.
Find out why Apple is one of the 10 best stocks to buy now
Our analyst team has spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed their ten top stock picks for investors to buy right now. Apple is on the list -- but there are nine others you may be overlooking.
Click here to get access to the full list!
*Stock Advisor returns as of October 2, 2023
Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Activision Blizzard, Advanced Micro Devices, Apple, Microsoft, and Tencent. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple Apple (NASDAQ: AAPL) might not be the first company you think of in a discussion about gaming, but it is the world's third-largest video game company after Tencent and Sony. It's inching closer to completing the deal after the U.K. gave preliminary approval last month, releasing a statement saying the company had "substantially" addressed its concerns. The company has suffered from a downturn in the PC market over the past year, as inflation hikes have caused reductions in consumer spending. | Apple Apple (NASDAQ: AAPL) might not be the first company you think of in a discussion about gaming, but it is the world's third-largest video game company after Tencent and Sony. But it plans to leapfrog the iPhone company and become the third largest by acquiring games developer Activision Blizzard in a deal worth $69 billion. Advanced Micro Devices Advanced Micro Devices (NASDAQ: AMD) has garnered much attention this year thanks to its growing potential in artificial intelligence. | Apple Apple (NASDAQ: AAPL) might not be the first company you think of in a discussion about gaming, but it is the world's third-largest video game company after Tencent and Sony. The video game market is vast and has blown up in recent years with the introduction of new earning opportunities, including mobile games, microtransactions (in-game purchases), cloud gaming, and more. Microsoft is already one of the biggest names in gaming with its Xbox brand, and acquiring Activision will give it access to a valuable library of content, which will potentially attract millions of new subscribers to its Xbox Game Pass service and cause an uptick in console sales. | Apple Apple (NASDAQ: AAPL) might not be the first company you think of in a discussion about gaming, but it is the world's third-largest video game company after Tencent and Sony. It massively profits from the industry through its App Store, where mobile games accounted for 66% of consumer spending in 2022. Microsoft Microsoft (NASDAQ: MSFT) is just after Apple in the list of world's largest game companies, coming in fourth. |
72 | 13,256 | 2023-10-05 00:00:00 UTC | Is It Too Late to Buy This Top-Performing Nasdaq-100 Dividend Stock? | AAPL | https://www.nasdaq.com/articles/is-it-too-late-to-buy-this-top-performing-nasdaq-100-dividend-stock | null | null | The first half of 2023 turned into an incredible comeback story for the U.S. tech sector, thanks primarily to artificial intelligence (AI) gaining rapid mainstream adoption among the masses. This resulted in stocks of AI industry leaders like Nvidia (NVDA) (up 203% YTD), Google (GOOGL) (up 52.6% YTD), and Microsoft (MSFT) (up 32.8% YTD) all reaching new highs this year.
A critical aspect of the AI revolution is the role played by semiconductor companies. In fact, according to a report by the Semiconductor Industry Association, total sales from the semiconductor industry could reach $1 trillion by 2030, up from $574.1 billion in 2022 - representing a CAGR of 7.2%. With much headroom for expansion left in the AI market, the longer-term uptrend in these stocks, and many others in this space, is likely still in its early stages - despite the broader market pullback that has punished growth stocks in particular in recent months.
As investors increasingly look to balance out robust growth prospects with more reliable, steady sources of income, let's take a look at one top semiconductor stock that offers industry-beating returns, and offers a healthy dividend yield, as well.
About Broadcom
Headquartered in San Jose, Calif., Broadcom (AVGO) has been in the chips business for more than six decades now. The company is a semiconductor and enterprise software company that designs, develops, manufactures, and sells a broad range of semiconductor and infrastructure software solutions. Its semiconductor products include integrated circuits for networking, storage, wireless, and broadband applications while its software products include enterprise software products for IT infrastructure management, security, and data analytics. The company currently commands a market cap of $340 billion.
Shares of Broadcom are up about 50% on a YTD basis, outperforming top semiconductor funds like the iShares Semiconductor ETF (SOXX) and VanEck Semiconductor ETF (SMH). Among its AI-focused chip industry peers, only Advanced Micro Devices (AMD) and NVDA have outperformed on the charts - but as we'll discuss below, these two can't compete with AVGO on yield.
www.barchart.com
So, after this searing rally, is Broadcom still an attractive investment choice now? I believe it is - and here's why.
1. Strong Fundamentals
Broadcom reported a solid set of numbers for its fiscal third quarter, as revenues rose 5% from the prior year to $8.8 billion, and EPS jumped 8.3% to $10.54 - surpassing the consensus estimate of $10.42. Impressively, the company's EPS has surpassed expectations in each of the past five quarters.
Both cash flow from operations and free cash flow rose in the neighborhood of 9% year over year, reflecting the company's robust operational capabilities as well as prudent cash flow management.
Although the company's sizeable debt of $38.2 billion may be cause for concern in this high-interest rate environment, AVGO's debt load is down from $39.1 billion at the start of the year. Moreover, the strategic move to replace its $32 billion bridge debt with three term facilities - $10.69B of debt maturing in two years, $10.69B in three years, and $7B in five years - is a smart debt management maneuver as the company looks to grow via acquisition.
2. Attractive Valuations and Above-Average Yield
Even after the stock's rally, Broadcom appears to be valued at reasonable levels. It is currently trading at a forward p/e of 19.56, which is below the sector median of 21.44. In terms of forward price/cash flow, AVGO's ratio of 18.62 is also below the sector median.
Notably, Broadcom's dividend yield of 2.23% is above the sector median (1.79%). Semiconductor stocks with comparable yields - such as Intel (INTC), Taiwan Semiconductor (TSM), and Qualcomm (QCOM) - have all lagged behind AVGO on the charts in 2023. Meanwhile, AMD offers no dividend, and NVDA is yielding 0.04%.
Further, in addition to its attractive dividend yield, Broadcom has consistently increased its dividend over the past seven years.
3. AI Upside
At its latestearnings conference call the company said it expects the burgeoning generative AI space to result in annualized revenues of over $8 billion by FY2024.
Further, Broadcom remains a prominent supplier of AI-specific networking products to hyperscalers, driving demand for its switches, routers, and custom silicon AI engines. Consequently, Broadcom forecasts revenue of $800 million from its AI-deployed Ethernet switches in 2023, up from $200 million in 2022.
In fact, the company expects to generate 25% of its revenues from generative AI by the end of 2024, compared to 15% now.
4. Key Deals with VMware and Apple
The impending $61 billion acquisition of VMware is expected to draw a close soon, which should unlock additional value. After receiving regulatory clearance from the UK and EU, the deal is inching closer to approval in China, too. Now, clearance from U.S. regulators could be the last hurdle.
The VMware deal is projected to improve Broadcom's credentials in the cloud-computing and virtualization markets specifically, thanks to VMware's 45% market share in the latter.
Plus, Broadcom renewed a licensing deal with Apple (AAPL) earlier this year, wherein the Cupertino-based giant will not replace Broadcom components before 2027 - providing the company with revenue visibility from the iPhone maker. Notably, Apple contributes just under 20% of Broadcom's revenues, which is a sizeable chunk.
5. Upbeat Analyst Estimates & Ratings
Finally, analysts are expecting the company to continue to generate earnings growth, with 8.1% expected in FY 2024.
www.barchart.com
Overall, analysts have assigned the stock a “Strong Buy” rating and a mean target price of $953.44. This denotes an upside potential of about 15.8% from current levels. Out of 20 analysts covering AVGO, 15 have a “Strong Buy” rating and 5 have a “Hold” rating.
www.barchart.com
On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Plus, Broadcom renewed a licensing deal with Apple (AAPL) earlier this year, wherein the Cupertino-based giant will not replace Broadcom components before 2027 - providing the company with revenue visibility from the iPhone maker. The first half of 2023 turned into an incredible comeback story for the U.S. tech sector, thanks primarily to artificial intelligence (AI) gaining rapid mainstream adoption among the masses. Among its AI-focused chip industry peers, only Advanced Micro Devices (AMD) and NVDA have outperformed on the charts - but as we'll discuss below, these two can't compete with AVGO on yield. | Plus, Broadcom renewed a licensing deal with Apple (AAPL) earlier this year, wherein the Cupertino-based giant will not replace Broadcom components before 2027 - providing the company with revenue visibility from the iPhone maker. This resulted in stocks of AI industry leaders like Nvidia (NVDA) (up 203% YTD), Google (GOOGL) (up 52.6% YTD), and Microsoft (MSFT) (up 32.8% YTD) all reaching new highs this year. Its semiconductor products include integrated circuits for networking, storage, wireless, and broadband applications while its software products include enterprise software products for IT infrastructure management, security, and data analytics. | Plus, Broadcom renewed a licensing deal with Apple (AAPL) earlier this year, wherein the Cupertino-based giant will not replace Broadcom components before 2027 - providing the company with revenue visibility from the iPhone maker. Moreover, the strategic move to replace its $32 billion bridge debt with three term facilities - $10.69B of debt maturing in two years, $10.69B in three years, and $7B in five years - is a smart debt management maneuver as the company looks to grow via acquisition. Upbeat Analyst Estimates & Ratings Finally, analysts are expecting the company to continue to generate earnings growth, with 8.1% expected in FY 2024. www.barchart.com Overall, analysts have assigned the stock a “Strong Buy” rating and a mean target price of $953.44. | Plus, Broadcom renewed a licensing deal with Apple (AAPL) earlier this year, wherein the Cupertino-based giant will not replace Broadcom components before 2027 - providing the company with revenue visibility from the iPhone maker. Notably, Broadcom's dividend yield of 2.23% is above the sector median (1.79%). Further, in addition to its attractive dividend yield, Broadcom has consistently increased its dividend over the past seven years. |
73 | 13,292 | 2023-10-04 00:00:00 UTC | Here's the Latest Must-See News From These 2 Dow Jones Stocks | AAPL | https://www.nasdaq.com/articles/heres-the-latest-must-see-news-from-these-2-dow-jones-stocks | null | null | Investors have had to deal with some tough times lately, and even the Dow Jones Industrial Average (DJINDICES: ^DJI) hasn't been immune to the forces acting on the stock market. On Wednesday morning, however, the Dow briefly saw a bit of a bounce, opening slightly higher after dealing with steep declines in recent days. Yet even the early gains seemed tenuous.
The 30 companies in the Dow Jones Industrials are among the largest in the world, and you can find several tech stocks within the Dow. Two of those stocks made news on Wednesday morning, as Intel (NASDAQ: INTC) announced a restructuring, while Apple (NASDAQ: AAPL) got some downbeat comments from stock analysts. Here's what you need to know.
Intel looks to break off a piece of its business
Shares of Intel were up about 1% early Wednesday. The semiconductor pioneer said late Tuesday that it would look to separate one of its business units from the rest of the company, with the intent of eventually creating a new publicly traded stock for those interested in the unit.
Intel said it would separate its programmable solutions group (PSG) into a stand-alone business. In Intel's view, the move will more effectively give PSG the autonomy and flexibility it needs in order to compete among other providers of field programmable gate arrays and other programmable products.
Already, PSG serves customers in the data center, communications, industrial, automotive, and aerospace & defense industries, and programmable solutions are becoming ever more important as technological innovation moves forward.
As part of the move, executive vice president Sandra Rivera will become the CEO of the PSG business. The semiconductor company expects PSG to operate independently as of Jan. 1, although it is likely to take longer for the two businesses to separate themselves fully from each other.
Currently, Intel believes it will do an initial public offering of the PSG business within the next two to three years, but it might also look to bring on institutional investors in the interim to accelerate PSG's growth while it remains as a privately held business.
Intel appears to be focusing heavily on making its existing businesses more appealing to investors. That's laudable, but Intel also needs to make sure it doesn't get left behind as many of its semiconductor rivals home in on huge demand for AI chips in the rush to capitalize on artificial intelligence.
Apple gets a downgrade
Elsewhere, shares of Apple were little changed Wednesday morning. The consumer electronics company has seen its stock fall about 12% since the beginning of August, and members of the Wall Street community appear to be losing confidence in the company's ability to keep growing at the pace they would like to see.
The downgrade came from KeyBanc Capital Markets, which cut its rating on the stock from overweight to sector weight. The primary motivation for the downgrade was rising concern about Apple's ability to keep generating revenue growth.
The launch of the iPhone 15 has faced a few hitches, and macroeconomic pressures in key markets like the U.S. could weigh on consumer demand for high-priced electronics more broadly. KeyBanc is also skeptical that current iPhone users will upgrade to the 15 models.
KeyBanc isn't the only Wall Street analyst company that's nervous about Apple's near-term sales. The combination of questionable demand and some potential issues with production throughput is particularly challenging, and few see the iPhone 15 as incorporating major changes with must-have features.
Apple's longer-term prospects arguably depend more on getting users to adopt its associated services than on its hardware sales. Nevertheless, that's a transition that will take a long time to play out. In the interim, you can expect further share-price volatility as sales figures come out.
10 stocks we like better than Intel
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Dan Caplinger has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Two of those stocks made news on Wednesday morning, as Intel (NASDAQ: INTC) announced a restructuring, while Apple (NASDAQ: AAPL) got some downbeat comments from stock analysts. Investors have had to deal with some tough times lately, and even the Dow Jones Industrial Average (DJINDICES: ^DJI) hasn't been immune to the forces acting on the stock market. That's laudable, but Intel also needs to make sure it doesn't get left behind as many of its semiconductor rivals home in on huge demand for AI chips in the rush to capitalize on artificial intelligence. | Two of those stocks made news on Wednesday morning, as Intel (NASDAQ: INTC) announced a restructuring, while Apple (NASDAQ: AAPL) got some downbeat comments from stock analysts. The semiconductor company expects PSG to operate independently as of Jan. 1, although it is likely to take longer for the two businesses to separate themselves fully from each other. KeyBanc isn't the only Wall Street analyst company that's nervous about Apple's near-term sales. | Two of those stocks made news on Wednesday morning, as Intel (NASDAQ: INTC) announced a restructuring, while Apple (NASDAQ: AAPL) got some downbeat comments from stock analysts. Currently, Intel believes it will do an initial public offering of the PSG business within the next two to three years, but it might also look to bring on institutional investors in the interim to accelerate PSG's growth while it remains as a privately held business. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. | Two of those stocks made news on Wednesday morning, as Intel (NASDAQ: INTC) announced a restructuring, while Apple (NASDAQ: AAPL) got some downbeat comments from stock analysts. Intel looks to break off a piece of its business Shares of Intel were up about 1% early Wednesday. Currently, Intel believes it will do an initial public offering of the PSG business within the next two to three years, but it might also look to bring on institutional investors in the interim to accelerate PSG's growth while it remains as a privately held business. |
74 | 13,299 | 2023-10-03 00:00:00 UTC | This Is One of the Top-Rated and Most-Upgraded Stocks | AAPL | https://www.nasdaq.com/articles/this-is-one-of-the-top-rated-and-most-upgraded-stocks | null | null | Another week has passed with shares of Meta Platforms (NASDAQ: META) outperforming the overall market, closing the prior week up 0.38% while the overall market was down almost 1%.
META recently made headlines after the company hosted its annual Connect product conference. It has continued to buck the overall market trend and remain firmly above its critical support.
The company also finds itself on the Top-Rated Stocks list, a list of 100 companies that have received the highest average rating among equities research analysts in the last twelve months, and is one of the Most-Upgraded Stocks, a list of companies that have been upgraded by Wall Street analysts most frequently during the previous 90 days.
So, as the fourth quarter begins, could META be a top pick and smart investment choice? Let's take a closer look at the news and technical setup.
META Announces Product Updates and Launch During Connect
Meta Connect 2023 spotlighted the Meta Quest 3, which received significant attention in the tech community. This new mixed-reality device aims to compete with Apple's Vision Pro headset, capitalizing on Apple's reported production delays.
Alongside this announcement, Meta unveiled a range of innovations, including the well-received Ray-Ban Meta smart glasses, the Emu text-to-image model, Meta AI for chatbots, and AI Studio for custom chatbot development.
These developments underscore Meta's commitment to making metaverse technology affordable and accessible. Mark Zuckerberg, Meta's CEO, emphasized this aspect during his keynote address, highlighting the importance of inclusivity as the company works toward its metaverse ambitions.
Analysts are Bullish on META
A host of analysts reiterated their ratings and boosted their price targets following the Connect event. Guggenheim reiterated its rating and increased its target from $375 to $380, seeing just over 27% upside for META. Notably, Morgan Stanley reiterated its rating as Overweight with a price target of $375, as did JPMorgan Chase & Co., with a price target on the high end at $425.
Overall, META has a Moderate Buy rating based on fifty-two analyst ratings. Of the fifty-two, forty-four have the stock as a Buy, one as a Strong Buy, five as Hold, and just two as Sell. The consensus analyst price target of $320.34 sees almost a 7% upside for the stock, which is impressive considering that META is already up nearly 150% year-to-date.
A Snapshot of META's Earnings
In its latest earnings report on July 26, 2023, Meta Platforms exceeded expectations with earnings per share (EPS) of $3.23, surpassing the consensus estimate of $2.87 by $0.36. The company reported quarterly revenue of $32 billion, exceeding analyst estimates of $30.91 billion. Over the past year, Meta Platforms has generated $8.58 in earnings per share and maintains a price-to-earnings ratio of 34.9. Analysts anticipate a 26.92% earnings growth for the company in the coming year, increasing from $13.26 to $16.83 per share.
META Continues to Hold Over Key Support
The range of META has continued to contract, along with the convergence of short to medium-term key moving averages, like the 5-day SMA and 50-day SMA. The price action can be seen as bullish, as the stock has recently outperformed the overall market and remains steadily above its rising 200-day SMA. A move above the resistance of the wedge pattern would signal a breakout and the potential for the continuation of the stock's uptrend.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Mark Zuckerberg, Meta's CEO, emphasized this aspect during his keynote address, highlighting the importance of inclusivity as the company works toward its metaverse ambitions. Over the past year, Meta Platforms has generated $8.58 in earnings per share and maintains a price-to-earnings ratio of 34.9. The price action can be seen as bullish, as the stock has recently outperformed the overall market and remains steadily above its rising 200-day SMA. | Analysts are Bullish on META A host of analysts reiterated their ratings and boosted their price targets following the Connect event. The company reported quarterly revenue of $32 billion, exceeding analyst estimates of $30.91 billion. META Continues to Hold Over Key Support The range of META has continued to contract, along with the convergence of short to medium-term key moving averages, like the 5-day SMA and 50-day SMA. | META Announces Product Updates and Launch During Connect Meta Connect 2023 spotlighted the Meta Quest 3, which received significant attention in the tech community. Alongside this announcement, Meta unveiled a range of innovations, including the well-received Ray-Ban Meta smart glasses, the Emu text-to-image model, Meta AI for chatbots, and AI Studio for custom chatbot development. A Snapshot of META's Earnings In its latest earnings report on July 26, 2023, Meta Platforms exceeded expectations with earnings per share (EPS) of $3.23, surpassing the consensus estimate of $2.87 by $0.36. | Analysts are Bullish on META A host of analysts reiterated their ratings and boosted their price targets following the Connect event. Analysts anticipate a 26.92% earnings growth for the company in the coming year, increasing from $13.26 to $16.83 per share. The price action can be seen as bullish, as the stock has recently outperformed the overall market and remains steadily above its rising 200-day SMA. |
75 | 13,328 | 2023-10-02 00:00:00 UTC | Is It Safe to Invest Today? Here Are 2 Better Questions to Ask | AAPL | https://www.nasdaq.com/articles/is-it-safe-to-invest-today-here-are-2-better-questions-to-ask | null | null | It's only natural to worry about money. We all do it, however much we might like to pretend we don't.
Yet, this natural impulse can work against you when it comes to investing. By asking, "Is it safe to invest right now?" you might forget to ask two questions that are even more important.
Here's what they are.
Image source: Getty Images.
Are you diversified?
At the top of the list for any investor should be the question, "Am I diversified?" Many investors have fallen on hard times specifically because they did not ask this simple question.
In short, a diversified portfolio consists of stocks spread across multiple industries and sectors. Some should be large; some should be small. Some should be focused on growth, others on value.
Say you have a five-stock portfolio containing Apple, Microsoft, Tesla, Starbucks, and Bank of America. That portfolio is overweight tech and underweight healthcare, materials, and energy. Perhaps swapping out Apple for Eli Lilly would make sense, or maybe replacing Microsoft with ExxonMobil would be a step in the right direction.
Better yet, increasing the overall number of stocks would spread your risk among more names, thus lowering the chance that a one-off event could wreck your portfolio. In addition, sprinkling in some foreign stocks, precious metals, bonds, and cryptocurrencies can add further diversification.
Are you trying to time the market?
The second question investors should be asking -- particularly right now -- is whether they are trying to time the market. I'm sure you've heard it before, but it's worth repeating: Timing the market doesn't work. Numerous studies show it's better to stay invested long term. Nevertheless, it's human nature to think we can beat the odds.
Staying disciplined means buying whether market sentiment is high or in the dumps. It means letting your winners run and still believing in your laggards (assuming their fundamentals and your investing thesis remain intact).
Here's a case in point as to why letting winners run is better than trying to time the market: $10,000 invested in Apple stock in January 2013 would have grown to $46,380 by February 2020. An investor who sold shares on that date -- almost perfectly anticipating the COVID pandemic stock market correction would have recorded a 364% total return.
AAPL Total Return Level data by YCharts.
However, if that same investor had held their shares through to today, the investment would have grown to $104,870 -- a total return of 949%. In short, holding through the volatility of the pandemic almost tripled the total return -- demonstrating that letting winners run can make a huge difference.
AAPL Total Return Level data by YCharts.
All in all, regardless of what concerning signs pop up in the broader economic landscape, investors should keep researching and investing in great companies. Over the long run, those investments will pay off despite any short-term volatility that may -- or may not -- occur.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Jake Lerch has positions in Tesla. The Motley Fool has positions in and recommends Apple, Bank of America, Microsoft, Starbucks, 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. | AAPL Total Return Level data by YCharts. Here's a case in point as to why letting winners run is better than trying to time the market: $10,000 invested in Apple stock in January 2013 would have grown to $46,380 by February 2020. An investor who sold shares on that date -- almost perfectly anticipating the COVID pandemic stock market correction would have recorded a 364% total return. | AAPL Total Return Level data by YCharts. The Motley Fool has positions in and recommends Apple, Bank of America, Microsoft, Starbucks, and Tesla. | AAPL Total Return Level data by YCharts. Here's a case in point as to why letting winners run is better than trying to time the market: $10,000 invested in Apple stock in January 2013 would have grown to $46,380 by February 2020. An investor who sold shares on that date -- almost perfectly anticipating the COVID pandemic stock market correction would have recorded a 364% total return. | AAPL Total Return Level data by YCharts. At the top of the list for any investor should be the question, "Am I diversified?" In short, holding through the volatility of the pandemic almost tripled the total return -- demonstrating that letting winners run can make a huge difference. |
76 | 13,347 | 2023-10-01 00:00:00 UTC | Wall St Week Ahead-US stock market’s powerhouses tested by soaring bond yields | AAPL | https://www.nasdaq.com/articles/wall-st-week-ahead-us-stock-markets-powerhouses-tested-by-soaring-bond-yields-0 | null | null | By Lewis Krauskopf and Saqib Iqbal Ahmed
NEW YORK, Sept 29 (Reuters) - Surging bond yields are rattling U.S. stocks, and some investors worry the richly valued shares of giant technology and growth companies may be another weak spot.
Seven megacap stocks -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O -- have led broader markets higher this year. As of Tuesday, these stocks accounted for more than 80% of the S&P 500's total return for 2023.
Investors see many of the stocks as major beneficiaries of advances in artificial intelligence. Earlier this year, megacaps' strong balance sheets and business models also attracted those looking for a safe haven when regional banking turmoil shook the financial system.
Their rising stock prices ballooned valuations, however, and some investors say the megacaps could be vulnerable if climbing bond yields keep pressuring stocks. The so-called Magnificent Seven stocks trade at an average price-to-earnings ratio of 31.8 based on earnings estimates for the next 12 months, according to LSEG Datastream. That far surpasses the S&P 500's ratio of 18.1.
With a collective weighting of 27% in the S&P 500, weakness in the megacaps could further deflate the broader index, now down 6.6% from its July highs, investors said. Year-to-date, the S&P 500 is up over 11%.
"When the big tech stocks start going down ... the indexes go down," said Matt Maley, chief market strategist at Miller Tabak. "Then people get nervous and sell their mutual funds or their ETFs, and ... the whole thing snowballs.”
The recent stock selloff has already dented some megacaps, with Apple -- the largest company by market value -- dropping about 13% since late July. High-flier Nvidia fell nearly 12% in September. Apple remains up 32% for the year, with Nvidia up nearly 200%.
PRESSURE FROM YIELDS
Higher yields on Treasuries - which are sensitive to rate expectations and seen as risk free - offer more investment competition to stocks while raising the cost of borrowing for corporations and households.
Shares of tech and growth companies, which often have significant expected profit growth in the years ahead, tend to be hit particularly hard when yields rise because their future projected earnings are discounted more severely.
“Because (the megacaps) are more highly valued, that just means that they are going to be more sensitive to changes in real interest rates,” said Matt Stucky, senior portfolio manager at Northwestern Mutual Wealth Management Co.
Options markets show elevated concern among investors. Thirty-day implied volatility for the Nasdaq-100-tracking Invesco QQQ ETF QQQ.O - a measure of how much traders expect the shares to gyrate in the near term - recently climbed to 22, the highest since mid-April, according to options analytics service Trade Alert.
Still, strategists point out that the rise in implied volatility for tech stocks is no more than for the broader market. That sense of complacency makes tech stocks vulnerable to increased volatility should market declines accelerate from here, said Chris Murphy, Susquehanna Financial Group co-head of derivative strategy.
To be sure, some megacap stocks have held up relatively well in the S&P 500's latest slide, including Alphabet, whose shares are down only slightly since late July.
The Nasdaq 100 .NDX, a proxy for a broader swath of big tech and growth stocks, has fallen roughly in line with the S&P 500 since late July and remains up some 35% this year. It is down 7% from its highs.
Investors also see other risks for megacap stocks.
A U.S. antitrust lawsuit filed this week against Amazon created a “new line of worry in the megacap space,” said Rick Meckler, partner at Cherry Lane Investments in New Jersey.
And while optimism about increased use of AI applications has helped tech stocks this year, there is some question about the ultimate boost to profits, said J. Bryant Evans, portfolio manager at Cozad Asset Management.
"The whole promise of AI hasn’t... reached fruition yet,” Evans said.
(Reporting by Lewis Krauskopf; additional reporting by Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and David Gregorio)
(([email protected]; 646-223-6082; Reuters Messaging: [email protected], Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Seven megacap stocks -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O -- have led broader markets higher this year. By Lewis Krauskopf and Saqib Iqbal Ahmed NEW YORK, Sept 29 (Reuters) - Surging bond yields are rattling U.S. stocks, and some investors worry the richly valued shares of giant technology and growth companies may be another weak spot. "Then people get nervous and sell their mutual funds or their ETFs, and ... the whole thing snowballs.” The recent stock selloff has already dented some megacaps, with Apple -- the largest company by market value -- dropping about 13% since late July. | Seven megacap stocks -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O -- have led broader markets higher this year. By Lewis Krauskopf and Saqib Iqbal Ahmed NEW YORK, Sept 29 (Reuters) - Surging bond yields are rattling U.S. stocks, and some investors worry the richly valued shares of giant technology and growth companies may be another weak spot. (Reporting by Lewis Krauskopf; additional reporting by Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and David Gregorio) (([email protected]; 646-223-6082; Reuters Messaging: [email protected], Twitter: @LKrauskopf)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Seven megacap stocks -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O -- have led broader markets higher this year. By Lewis Krauskopf and Saqib Iqbal Ahmed NEW YORK, Sept 29 (Reuters) - Surging bond yields are rattling U.S. stocks, and some investors worry the richly valued shares of giant technology and growth companies may be another weak spot. Their rising stock prices ballooned valuations, however, and some investors say the megacaps could be vulnerable if climbing bond yields keep pressuring stocks. | Seven megacap stocks -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Tesla TSLA.O and Meta Platforms META.O -- have led broader markets higher this year. Still, strategists point out that the rise in implied volatility for tech stocks is no more than for the broader market. The Nasdaq 100 .NDX, a proxy for a broader swath of big tech and growth stocks, has fallen roughly in line with the S&P 500 since late July and remains up some 35% this year. |
77 | 13,354 | 2023-09-30 00:00:00 UTC | Apple Has an iPhone Problem | AAPL | https://www.nasdaq.com/articles/apple-has-an-iphone-problem | null | null | The iPhone has been the product that's driven Apple (NASDAQ: AAPL) for 15 years, but it's now such a good product that new models are only slight upgrades from previous versions. Combine that with prices that make the iPhone extremely expensive, and you face a challenge growing a company the size of Apple.
In this video, Travis Hoium covers the iPhone's slowing growth rate and why services and accessories are now the real growth drivers of Apple's business.
*Stock prices used were end-of-day prices of Sept. 26, 2023. The video was published on Sept. 27, 2023.
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Travis Hoium has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The iPhone has been the product that's driven Apple (NASDAQ: AAPL) for 15 years, but it's now such a good product that new models are only slight upgrades from previous versions. Combine that with prices that make the iPhone extremely expensive, and you face a challenge growing a company the size of Apple. Find out why Apple is one of the 10 best stocks to buy now Our analyst team has spent more than a decade beating the market. | The iPhone has been the product that's driven Apple (NASDAQ: AAPL) for 15 years, but it's now such a good product that new models are only slight upgrades from previous versions. In this video, Travis Hoium covers the iPhone's slowing growth rate and why services and accessories are now the real growth drivers of Apple's business. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | The iPhone has been the product that's driven Apple (NASDAQ: AAPL) for 15 years, but it's now such a good product that new models are only slight upgrades from previous versions. In this video, Travis Hoium covers the iPhone's slowing growth rate and why services and accessories are now the real growth drivers of Apple's business. *Stock Advisor returns as of September 25, 2023 Travis Hoium has positions in Apple. | The iPhone has been the product that's driven Apple (NASDAQ: AAPL) for 15 years, but it's now such a good product that new models are only slight upgrades from previous versions. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. |
78 | 13,356 | 2023-09-29 00:00:00 UTC | Is iShares Core S&P U.S. Growth ETF (IUSG) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-ishares-core-sp-u.s.-growth-etf-iusg-a-strong-etf-right-now-9 | null | null | Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.
What Are Smart Beta ETFs?
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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
IUSG is managed by Blackrock, and this fund has amassed over $13.45 billion, which makes it the largest ETF in the Style Box - All Cap Growth. This particular fund, before fees and expenses, seeks to match the performance of the S&P 900 Growth Index.
The S&P 900 Growth Index measures the performance of the large and mid-capitalization growth sector of the U.S. equity market.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.04% for IUSG, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.11%.
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.
IUSG's heaviest allocation is in the Information Technology sector, which is about 33.90% of the portfolio. Its Healthcare and Consumer Discretionary round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.37% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
Its top 10 holdings account for approximately 42.74% of IUSG's total assets under management.
Performance and Risk
So far this year, IUSG has added about 17.68%, and was up about 14.80% in the last one year (as of 09/29/2023). During this past 52-week period, the fund has traded between $78.88 and $100.74.
IUSG has a beta of 1.05 and standard deviation of 21.60% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 482 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Core S&P U.S. Growth ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Fidelity Blue Chip Growth ETF (FBCG) tracks ---------------------------------------- and the iShares Morningstar Growth ETF (ILCG) tracks MORNINGSTAR US LARGE-MID CP BRD GRWTH ID. Fidelity Blue Chip Growth ETF has $763.54 million in assets, iShares Morningstar Growth ETF has $1.67 billion. FBCG has an expense ratio of 0.59% and ILCG charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Growth.
Bottom Line
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 12.37% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Fidelity Blue Chip Growth ETF (FBCG): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. 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 Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Fidelity Blue Chip Growth ETF (FBCG): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.37% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market. | Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Fidelity Blue Chip Growth ETF (FBCG): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.37% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market. | Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.37% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Fidelity Blue Chip Growth ETF (FBCG): ETF Research Reports iShares Morningstar Growth ETF (ILCG): ETF Research Reports To read this article on Zacks.com click here. Launched on 07/24/2000, the iShares Core S&P U.S. Growth ETF (IUSG) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market. |
79 | 13,401 | 2023-09-28 00:00:00 UTC | US STOCKS-Futures decline as soaring oil prices deepen inflation woes | AAPL | https://www.nasdaq.com/articles/us-stocks-futures-decline-as-soaring-oil-prices-deepen-inflation-woes | null | null | For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures down: Dow 0.20%, S&P 0.20%, Nasdaq 0.32%
Sept 28 (Reuters) - U.S. stock index futures slipped on Thursday as soaring oil prices cemented the prospects for a prolonged restrictive monetary policy, while investors awaited economic data and Federal Reserve Chair Jerome Powell's remarks during the day.
The scope for interest rates staying higher for longer than anticipated has only solidified with soaring energy prices keeping headline inflation elevated. Deepening such concerns, U.S. oil futures jumped to a more than one-year high on Thursday.
"Another leg up in oil prices has added to the market worries about sticky inflation, thereby stoking fears that interest rates will stay higher for longer," said Russ Mould, investment director at AJ Bell.
"The market is worried that supplies of oil are going to be tight and if prices keep going, it is going to cause a real headache for businesses and consumers."
Riding on the back of higher crude prices, energy .SPNY is set to emerge as the only major S&P 500 sector to notch monthly gains. Meanwhile, rate-sensitive information technology .SPLRCT and real estate .SPLRCT were on track to be the worst hit.
As the 10-year Treasury yield held its 16-year high, megacap growth stocks including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Tesla TSLA.O shed between 0.3% and 0.8%.
At 5:23 a.m. ET, Dow e-minis 1YMcv1 were down 68 points, or 0.2%, S&P 500 e-minis EScv1 were down 8.5 points, or 0.2%, and Nasdaq 100 e-minis NQcv1 were down 47.5 points, or 0.32%.
The S&P 500 and the Nasdaq are set for their worst monthly showing so far this year as Treasury yields embarked on a path to multi-year highs on uncertainty around the interest rates trajectory. All the three indexes, including the Dow, are set for their first quarterly decline in 2023.
Traders' bets on the benchmark rate remaining unchanged in November and December stood around 77% and 58%, respectively, according to CME's FedWatch tool. Meanwhile, a 25-basis-point rate cut is being priced in as early as March, growing to over 31% in June and July.
All eyes will be on the final gross domestic product estimate and weekly jobless claims - due at 8:30 a.m. ET - to gauge the strength of the U.S. economy and the labor market.
Investors will also monitor remarks from Powell at 2 p.m. ET, with voting members Chicago Fed President Austan Goolsbee and Board Governor Lisa Cook also set to take the stage during the day.
With a partial government shutdown just three days away, a procedural vote on a bipartisan short-term spending measure by the Senate on Thursday will be on the watch list.
Among individual movers, Micron Technology MU.O dropped 4.9% after forecasting bigger-than-expected first-quarter loss.
(Reporting by Ankika Biswas; Editing by Maju Samuel)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As the 10-year Treasury yield held its 16-year high, megacap growth stocks including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Tesla TSLA.O shed between 0.3% and 0.8%. The scope for interest rates staying higher for longer than anticipated has only solidified with soaring energy prices keeping headline inflation elevated. "Another leg up in oil prices has added to the market worries about sticky inflation, thereby stoking fears that interest rates will stay higher for longer," said Russ Mould, investment director at AJ Bell. | As the 10-year Treasury yield held its 16-year high, megacap growth stocks including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Tesla TSLA.O shed between 0.3% and 0.8%. Futures down: Dow 0.20%, S&P 0.20%, Nasdaq 0.32% Sept 28 (Reuters) - U.S. stock index futures slipped on Thursday as soaring oil prices cemented the prospects for a prolonged restrictive monetary policy, while investors awaited economic data and Federal Reserve Chair Jerome Powell's remarks during the day. The scope for interest rates staying higher for longer than anticipated has only solidified with soaring energy prices keeping headline inflation elevated. | As the 10-year Treasury yield held its 16-year high, megacap growth stocks including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Tesla TSLA.O shed between 0.3% and 0.8%. Futures down: Dow 0.20%, S&P 0.20%, Nasdaq 0.32% Sept 28 (Reuters) - U.S. stock index futures slipped on Thursday as soaring oil prices cemented the prospects for a prolonged restrictive monetary policy, while investors awaited economic data and Federal Reserve Chair Jerome Powell's remarks during the day. "Another leg up in oil prices has added to the market worries about sticky inflation, thereby stoking fears that interest rates will stay higher for longer," said Russ Mould, investment director at AJ Bell. | As the 10-year Treasury yield held its 16-year high, megacap growth stocks including Apple AAPL.O, Microsoft MSFT.O, Amazon.com AMZN.O and Tesla TSLA.O shed between 0.3% and 0.8%. Futures down: Dow 0.20%, S&P 0.20%, Nasdaq 0.32% Sept 28 (Reuters) - U.S. stock index futures slipped on Thursday as soaring oil prices cemented the prospects for a prolonged restrictive monetary policy, while investors awaited economic data and Federal Reserve Chair Jerome Powell's remarks during the day. The scope for interest rates staying higher for longer than anticipated has only solidified with soaring energy prices keeping headline inflation elevated. |
80 | 13,403 | 2023-09-27 00:00:00 UTC | Is ProShares S&P Technology Dividend Aristocrats ETF (TDV) a Strong ETF Right Now? | AAPL | https://www.nasdaq.com/articles/is-proshares-sp-technology-dividend-aristocrats-etf-tdv-a-strong-etf-right-now-0 | null | null | Launched on 11/05/2019, the ProShares S&P Technology Dividend Aristocrats ETF (TDV) is a smart beta exchange traded fund offering broad exposure to the Technology ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
The fund is managed by Proshares. TDV has been able to amass assets over $203.91 million, making it one of the average sized ETFs in the Technology ETFs. TDV seeks to match the performance of the S&P TECHNOLOGY DIVIDEND ARISTOCRATS INDX before fees and expenses.
The S&P Technology Dividend Aristocrats Index targets companies from information technology, internet and direct marketing retail, interactive home entertainment, and interactive media and services segments of the economy.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.45% for TDV, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.38%.
Performance and Risk
The ETF return is roughly 12.29% and is up about 21.22% so far this year and in the past one year (as of 09/27/2023), respectively. TDV has traded between $49.99 and $67.88 during this last 52-week period.
The fund has a beta of 1.05 and standard deviation of 20.40% for the trailing three-year period. With about 39 holdings, it has more concentrated exposure than peers.
Alternatives
ProShares S&P Technology Dividend Aristocrats ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $22.86 billion in assets, Vanguard Dividend Appreciation ETF has $66.32 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs.
Bottom Line
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Click to get this free report ProShares S&P Technology Dividend Aristocrats ETF (TDV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. TDV seeks to match the performance of the S&P TECHNOLOGY DIVIDEND ARISTOCRATS INDX before fees and expenses. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal. | Click to get this free report ProShares S&P Technology Dividend Aristocrats ETF (TDV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $22.86 billion in assets, Vanguard Dividend Appreciation ETF has $66.32 billion. | Click to get this free report ProShares S&P Technology Dividend Aristocrats ETF (TDV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Launched on 11/05/2019, the ProShares S&P Technology Dividend Aristocrats ETF (TDV) is a smart beta exchange traded fund offering broad exposure to the Technology ETFs category of the market. IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. | Click to get this free report ProShares S&P Technology Dividend Aristocrats ETF (TDV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Launched on 11/05/2019, the ProShares S&P Technology Dividend Aristocrats ETF (TDV) is a smart beta exchange traded fund offering broad exposure to the Technology ETFs category of the market. 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. |
81 | 13,461 | 2023-09-26 00:00:00 UTC | The 3 Best and 2 Worst Sectors to Invest in as the Fed Signals ‘Higher for Longer’ | AAPL | https://www.nasdaq.com/articles/the-3-best-and-2-worst-sectors-to-invest-in-as-the-fed-signals-higher-for-longer | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In the stock market’s glittering gala, all eyes are usually locked on the perceived “best sectors” – the rock stars of the investment world. But what about the industry appointed “worst sectors” – the wallflowers and underdogs? Don’t they deserve a little spotlight, too? Especially in the wake of the Fed’s latest interest rate decision, these often-ignored sectors can have a big impact on your portfolio’s performance.
Trust me, no one ever got to the top of the charts without understanding the full scope of the music industry – both hits and flops. So grab your financial VIP pass and get a front-row seat to the sectors hitting high notes and those struggling to stay in tune. Your portfolio’s setlist will thank you!
Best Sectors: Banking and Brokerage
Source: YummyBuum / Shutterstock
This sector stands to benefit from rising interest rates. As the Fed hikes rates, banks often experience wider net interest margins. Simply put, they can charge higher interest on loans than they pay on deposits, translating into increased profitability. Furthermore, brokerage firms thrive in such an environment, as higher rates can lead to greater trading activity and higher revenue from asset management fees.
Why Banking and Brokerage Shine:
Profit Margins: With interest rates climbing, banks can bolster their profitability through lending and investment operations.
Investor Activity: Brokerage firms are poised to attract more investors seeking returns in a higher-rate environment, potentially driving up trading volumes.
Diversification: These sectors provide diversification opportunities within the financial industry, reducing risk exposure.
While certain sectors gleam with promise, it’s vital to remember that the growth potential is not uniformly distributed in this emerging interest rate environment. Investors are advised to tread cautiously, especially in realms like utilities and real estate investment trusts (REITs), which traditionally lag amid ascending interest rates.
In conclusion, following the Federal Reserve’s decision to hike interest rates, the banking and brokerage sectors present attractive investment prospects. This is due to their potential for enhanced profitability and increased attractiveness to investors. However, prudent investors should consider their risk tolerance and diversify their portfolios wisely, balancing these opportunities with awareness of the worst-performing sectors in a rising rate environment.
Best Sectors: Technology
Source: Shutterstock
In the wake of the Fed’s interest rate decision, pinpointing the best and worst sectors for investment becomes crucial. Surprisingly, the tech sector stands strong despite traditional wisdom suggesting otherwise. Why? Tech companies are cash-rich. In a higher-for-longer-rate environment, having cash is like having an ace up your sleeve. These companies can finance growth without relying heavily on external debt, giving them a unique edge.
While higher rates often hit sectors dependent on financing harder, the tech sector bucks this trend. Companies like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) hold vast cash reserves. This gives them greater flexibility and security, making them resilient investment options in rising rates. They can continue to innovate, acquire and expand without the burden of hefty interest payments.
Contrast this with some of the worst sectors to consider right now, like real estate and utilities. These are industries burdened by high debt and often seen as interest rate-sensitive. In the current scenario, they could struggle with increased financing costs, slowing growth.
So, if you’re looking to navigate the maze of post-Fed interest rate hikes, the tech sector is worth a closer look. Its inherent cash richness makes it one of the best sectors to bet on, even when rates rise.
Best Sectors: Healthcare
Source: Shutterstock
The recent Fed interest rate decision has sent ripples through various sectors, spotlighting the best and worst sectors for investment. One sector emerging as a prime candidate for attention is healthcare. Traditionally, healthcare stocks have shown resilience in a rising interest rate environment.
Healthcare’s status as a necessity, not a luxury, provides stability, regardless of the economic climate. This constant demand insulates healthcare from rate fluctuations, making it one of the best sectors to invest in.
Healthcare companies inelastic pricing power is also a huge plus. This means they can raise prices without losing customers, a significant advantage when borrowing costs increase. Higher rates generally translate to increased expenses, but healthcare companies can pass these on to consumers more easily than other sectors.
Lastly, many healthcare firms maintain strong balance sheets. They’re often flush with cash and have manageable debt levels, making them less vulnerable to interest rate hikes. While sectors like real estate may struggle with higher rates, healthcare often stands firm.
Overall, the Fed’s decision to keep interest rates higher for longer places healthcare squarely in the category of best sectors to consider. Its inherent demand, pricing power and strong financials make it a sturdy and attractive investment option.
Worst Sectors: Real Estate
Source: Stock-Asso / Shutterstock
The Federal Reserve’s fresh move hinting at protracted higher interest rates sends ripples of concern to the investment community. Amidst sectors poised to bloom, real estate starkly contrasts, marking itself as a potentially unwise investment choice. Here’s the inside scoop!
Higher interest rates typically make borrowing more expensive. In real estate, developers rely heavily on loans for new projects. When interest rates increase, these loans become pricier, slowing construction. This dampens the supply of new properties, making the sector less attractive for investments.
But it’s not just the developers who feel the pinch. Homebuyers also grapple with higher mortgage rates. This reduces the demand for homes, putting downward pressure on property prices. So, supply and demand factors are against the sector when rates rise.
The higher-for-longer stance by the Fed also impacts REITs. These trusts often use leverage to maximize returns. A rise in interest rates erodes their profit margins, making them less lucrative investments.
The Fed’s interest rate decision creates a challenging environment for the real estate sector. From developers to homebuyers to REIT investors, everyone faces headwinds. While other sectors might present solid investment opportunities in a higher-rate environment, real estate looks like a risky bet.
Worst Sectors: Housing Construction
Source: ARMMY PICCA/ShutterStock.com
When the Fed signals higher-for-longer rates, certain sectors feel more heat than others. Among the worst sectors to invest in following this decision is home construction.
Higher interest rates directly lead to pricier mortgages. For many, the dream of homeownership gets pushed further out of reach. With steeper mortgage rates, potential homeowners hesitate, fearing increased monthly payments. This hesitation cripples the demand for new homes.
Now, consider the home construction sector. They thrive when demand is high, and mortgage rates are attractive. But with the Fed’s latest decision, the tables have turned. Homebuilders face dwindling orders, fewer projects and mounting uncertainties. New construction projects get shelved, and growth in this sector slows to a crawl.
While some sectors might emerge as the best in light of the Fed’s actions, home construction isn’t one of them. Investors need to tread with caution. Keeping a keen eye on the economic landscape and the Fed’s future decisions is crucial. In this higher interest rate environment, the home construction sector’s potential for growth seems bleak.
On the publication date, Faizan Farooque did not hold (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.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.
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The post The 3 Best and 2 Worst Sectors to Invest in as the Fed Signals ‘Higher for Longer’ 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. | Companies like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) hold vast cash reserves. Investors are advised to tread cautiously, especially in realms like utilities and real estate investment trusts (REITs), which traditionally lag amid ascending interest rates. Worst Sectors: Real Estate Source: Stock-Asso / Shutterstock The Federal Reserve’s fresh move hinting at protracted higher interest rates sends ripples of concern to the investment community. | Companies like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) hold vast cash reserves. In conclusion, following the Federal Reserve’s decision to hike interest rates, the banking and brokerage sectors present attractive investment prospects. Best Sectors: Healthcare Source: Shutterstock The recent Fed interest rate decision has sent ripples through various sectors, spotlighting the best and worst sectors for investment. | Companies like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) hold vast cash reserves. Best Sectors: Banking and Brokerage Source: YummyBuum / Shutterstock This sector stands to benefit from rising interest rates. Best Sectors: Technology Source: Shutterstock In the wake of the Fed’s interest rate decision, pinpointing the best and worst sectors for investment becomes crucial. | Companies like Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) hold vast cash reserves. While sectors like real estate may struggle with higher rates, healthcare often stands firm. Among the worst sectors to invest in following this decision is home construction. |
82 | 13,474 | 2023-09-25 00:00:00 UTC | Investors Heavily Search Apple Inc. (AAPL): Here is What You Need to Know | AAPL | https://www.nasdaq.com/articles/investors-heavily-search-apple-inc.-aapl%3A-here-is-what-you-need-to-know-6 | null | null | Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this maker of iPhones, iPads and other products have returned -2.1% over the past month versus the Zacks S&P 500 composite's -1.4% change. The Zacks Computer - Mini computers industry, to which Apple belongs, has lost 1.5% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Apple is expected to post earnings of $1.39 per share, indicating a change of +7.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $6.05 points to a change of -1% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $6.58 indicates a change of +8.9% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -0.1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Apple.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Apple, the consensus sales estimate for the current quarter of $88.87 billion indicates a year-over-year change of -1.4%. For the current and next fiscal years, $382.66 billion and $405.08 billion estimates indicate -3% and +5.9% changes, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $81.8 billion in the last reported quarter, representing a year-over-year change of -1.4%. EPS of $1.26 for the same period compares with $1.20 a year ago.
Compared to the Zacks Consensus Estimate of $81.36 billion, the reported revenues represent a surprise of +0.54%. The EPS surprise was +5.88%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Apple is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Apple. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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Apple Inc. (AAPL) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. | Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Revenue Growth Forecast Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. | Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. | Apple (AAPL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. And if earnings estimates go up for a company, the fair value for its stock goes up. |
83 | 13,486 | 2023-09-24 00:00:00 UTC | 3 Chip Stocks Crushing the Market With More Room to Run | AAPL | https://www.nasdaq.com/articles/3-chip-stocks-crushing-the-market-with-more-room-to-run | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The semiconductor field evolves rapidly, requiring yearly product upgrades. It’s a complex, costly and vital industry, particularly in the AI and Web 3.0 era, offering growth and security opportunities for top-performing companies. Accordingly, the top chip stocks to buy now continue to outperform, as barriers to entry amplify these market share advantages.
In this article, I will discuss three of the chip stocks to buy now that are crushing the market and still have plenty of room to run.
Nvidia (NVDA)
Source: Poetra.RH / Shutterstock.com
Nvidia (NASDAQ:NVDA) plays a vital role in the AI-driven computing shift, leveraging GPUs for accelerated computing. This has driven rapid revenue growth and a 190% year-to-date stock price increase.
Nvidia, once famous for its GPUs, now leads digital innovation in multiple sectors. The company has posted impressive financial results with quarterly sales hitting $13.5 billion, a remarkable 101.5% annual growth rate. Nvidia’s IV spectrum shows complexity: lower end activity for protection, surges from $500 to $980 signal optimism. Additionally, a number of large trades for high-upside call bets have been placed by institutional giants. Analysts are bullish, with an average target of $636.32 (45% upside). A bolder view targets $1,100 (150.57% potential gain), for those who believe these smart money investors are right.
Notably, Nvidia is a company that’s not only beating expectations on the top-line, but also by 63 cents per share in profits. Additionally, Nvidia’s Omniverse platform stands out, going beyond a typical metaverse platform.
For those thinking long-term, there are plenty of growth catalysts to support additional upside with Nvidia from here, making it a great option in chip stocks to buy now.
Advanced Micro Devices (AMD)
Source: JHVEPhoto / Shutterstock.com
While Nvidia gets attention, Advanced Micro Devices (NASDAQ:AMD) is making strides in AI chips with its Instinct MI300X GPUs. AMD has secured substantial supply chain commitments, and customer interest in its AI offerings surged, with a seven-fold increase in AI cluster engagements last quarter.
PC demand might rise during the holiday season, but significant growth isn’t expected until the 2025 replacement cycle. AMD is a long-term hold, a key rival to Nvidia in AI data center GPUs, with Intel lagging. AMD is also expanding into embedded computing for IoT devices.
Despite August’s inflation concerns, AMD is rebounding with a 4% gain since September 11, 2023. Its Mipsology acquisition enhances AI capabilities and partnerships for automotive safety, using AMD’s system-on-a-chip, offering long-term growth potential.
Intel Corp (INTC)
Source: JHVEPhoto / Shutterstock.com
Intel’s (NASDAQ:INTC) growth strategy emphasizes AI as a “superpower” across diverse applications, aiming to lead in the expanding AI market. The company’s bold strategy is paying off and it’s on track to regain chip manufacturing leadership by releasing the advanced Intel 18A process node ahead of schedule, attracting significant interest from a mystery customer, possibly Apple (NASDAQ:AAPL) or Arm Holdings (NASDAQ:ARM).
Intel’s AI chips, competitively priced and in high demand, could challenge Nvidia’s offerings, potentially leading to substantial revenue and profits. It anticipates benefiting from the growing demand for PCs optimized for AI applications. They are expanding manufacturing capacity with investments in facilities in Germany and a new assembly and test facility in Poland.
Moreover, Intel’s IDM 2.0 strategy involves investments to strengthen its semiconductor position and foundry business. Intel Foundry Services (IFS) enhances its role in the AI market, diversifying the global supply chain with leading-edge capacity beyond Asia.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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The post 3 Chip Stocks Crushing the Market With More Room to Run appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company’s bold strategy is paying off and it’s on track to regain chip manufacturing leadership by releasing the advanced Intel 18A process node ahead of schedule, attracting significant interest from a mystery customer, possibly Apple (NASDAQ:AAPL) or Arm Holdings (NASDAQ:ARM). For those thinking long-term, there are plenty of growth catalysts to support additional upside with Nvidia from here, making it a great option in chip stocks to buy now. Intel Foundry Services (IFS) enhances its role in the AI market, diversifying the global supply chain with leading-edge capacity beyond Asia. | The company’s bold strategy is paying off and it’s on track to regain chip manufacturing leadership by releasing the advanced Intel 18A process node ahead of schedule, attracting significant interest from a mystery customer, possibly Apple (NASDAQ:AAPL) or Arm Holdings (NASDAQ:ARM). Advanced Micro Devices (AMD) Source: JHVEPhoto / Shutterstock.com While Nvidia gets attention, Advanced Micro Devices (NASDAQ:AMD) is making strides in AI chips with its Instinct MI300X GPUs. AMD has secured substantial supply chain commitments, and customer interest in its AI offerings surged, with a seven-fold increase in AI cluster engagements last quarter. | The company’s bold strategy is paying off and it’s on track to regain chip manufacturing leadership by releasing the advanced Intel 18A process node ahead of schedule, attracting significant interest from a mystery customer, possibly Apple (NASDAQ:AAPL) or Arm Holdings (NASDAQ:ARM). Advanced Micro Devices (AMD) Source: JHVEPhoto / Shutterstock.com While Nvidia gets attention, Advanced Micro Devices (NASDAQ:AMD) is making strides in AI chips with its Instinct MI300X GPUs. Intel Corp (INTC) Source: JHVEPhoto / Shutterstock.com Intel’s (NASDAQ:INTC) growth strategy emphasizes AI as a “superpower” across diverse applications, aiming to lead in the expanding AI market. | The company’s bold strategy is paying off and it’s on track to regain chip manufacturing leadership by releasing the advanced Intel 18A process node ahead of schedule, attracting significant interest from a mystery customer, possibly Apple (NASDAQ:AAPL) or Arm Holdings (NASDAQ:ARM). Advanced Micro Devices (AMD) Source: JHVEPhoto / Shutterstock.com While Nvidia gets attention, Advanced Micro Devices (NASDAQ:AMD) is making strides in AI chips with its Instinct MI300X GPUs. Intel Corp (INTC) Source: JHVEPhoto / Shutterstock.com Intel’s (NASDAQ:INTC) growth strategy emphasizes AI as a “superpower” across diverse applications, aiming to lead in the expanding AI market. |
84 | 13,489 | 2023-09-23 00:00:00 UTC | Tim Cook and Apple Are Running Circles Around Mark Zuckerberg's Metaverse Vision | AAPL | https://www.nasdaq.com/articles/tim-cook-and-apple-are-running-circles-around-mark-zuckerbergs-metaverse-vision | null | null | Meta (NASDAQ: META) has spent tens of billions of dollars building out virtual reality and metaverse technology, but Apple (NASDAQ: AAPL) is already commercializing products that are easy to use and reach millions more customers than Meta. In this video, Travis Hoium covers why Apple and Tim Cook are running circles around Mark Zuckerberg's Meta.
*Stock prices used were end-of-day prices of Sept. 15, 2023. The video was published on Sept. 18, 2023.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Meta (NASDAQ: META) has spent tens of billions of dollars building out virtual reality and metaverse technology, but Apple (NASDAQ: AAPL) is already commercializing products that are easy to use and reach millions more customers than Meta. In this video, Travis Hoium covers why Apple and Tim Cook are running circles around Mark Zuckerberg's Meta. Find out why Apple is one of the 10 best stocks to buy now Our analyst team has spent more than a decade beating the market. | Meta (NASDAQ: META) has spent tens of billions of dollars building out virtual reality and metaverse technology, but Apple (NASDAQ: AAPL) is already commercializing products that are easy to use and reach millions more customers than Meta. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. The Motley Fool has positions in and recommends Apple and Meta Platforms. | Meta (NASDAQ: META) has spent tens of billions of dollars building out virtual reality and metaverse technology, but Apple (NASDAQ: AAPL) is already commercializing products that are easy to use and reach millions more customers than Meta. *Stock Advisor returns as of September 18, 2023 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool has positions in and recommends Apple and Meta Platforms. | Meta (NASDAQ: META) has spent tens of billions of dollars building out virtual reality and metaverse technology, but Apple (NASDAQ: AAPL) is already commercializing products that are easy to use and reach millions more customers than Meta. In this video, Travis Hoium covers why Apple and Tim Cook are running circles around Mark Zuckerberg's Meta. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. |
85 | 13,497 | 2023-09-22 00:00:00 UTC | 3 Stocks Delivering $2.8 Billion in Dividends to Warren Buffett Each Year | AAPL | https://www.nasdaq.com/articles/3-stocks-delivering-%242.8-billion-in-dividends-to-warren-buffett-each-year | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Since becoming CEO of Berkshire Hathaway (NYSE:BRK-A NYSE:BRK-B) in 1965, Warren Buffett generated 3.7 million percent returns for investors. That’s a staggering statistic, considering the S&P 500 returned some 24.7 thousand percent. There is a good reason he’s referred to as the Oracle of Omaha. This has led to the rise of Warren Buffett dividend stocks to buy.
Yet a good part of Buffett’s success lies in his love of dividend stocks. Companies that pay dividends are often those that have stood the test of time. They are successful, profitable businesses that have gone through numerous cycles and come out ahead.
Of the 49 stocks in Buffett’s portfolio, 31 pay dividends. He will receive nearly $6 billion in dividends from those stocks in 2023.
But like a lot of Buffett’sinvestment advice it’s often a case of do as I say, not as I do. Because as much as Buffett loves dividends, he refuses to allow Berkshire Hathaway to pay any.
That doesn’t mean investors can’t still profit off of the dividends Buffett receives. They help juice the returns of Berkshire Hathaway, ultimately making it a good investment. But The Oracle will receive over $2.8 billion from just three companies, or 50% of all the dividends he collects. What follows are the top Warren Buffett dividend stocks Berkshire Hathaway owns.
Occidental Petroleum (OXY)
Source: T. Schneider / Shutterstock.com
Because Buffett only recently paused his shopping spree of Occidental Petroleum (NYSE:OXY) stock, he now owns more than 2.24 million shares of the oil and gas giant. That means Buffett’s ownership stake is 25%, and he has permission from the Securities & Exchange Commission to buy as much as 50%. His dividend payment ought to be around $961 million.
Yet Occidental’s dividend is $0.96 per share, so if you do the math, it looks like Buffett will only collect around $161 million in dividends from his shares. What many forget (or do not know) is that Berkshire Hathaway also bought $10 billion of preferred stock. Those shares yield 8% annually giving Buffett an additional $800 million in preferred dividends. However, Occidental did begin buying some of that stock back. Any redemptions Occidental makes require it to pay Berkshire any accrued and unpaid dividends. All in all, it’s one of those Warren Buffett dividend stocks to consider.
Buffett bought Occidental Petroleum because of its dominance in the Permian Basin. He said it was “a bet on the fact that the Permian Basin is what it is cracked up to be.” However, the U.S. Energy Information Administration recently reported that Permian was leading the way in new oil and gas production. It forecasts the region’s third straight month of production declines.
That’s partly due to the higher costs of drilling deep wells. Although deeper wells produce more oil per well, thus generating higher revenue, they are also more expensive to drill. It suggests the short and medium-depth wells oil companies are opting for will end up showing up on the income statement as reduced revenue. Profits might not be hurt too much, though, due to the cost savings.
Apple (AAPL)
Source: askarim / Shutterstock
Even though Apple (NASDAQ:AAPL) is Buffett’s favorite stock, comprising 46% of Berkshire Hathaway’s total portfolio, it’s not the top dividend-generating stock. Buffett owns over 915 million shares of the tech giant, but Apple’s dividend of $0.96 per share means he will collect just under $879 million worth of dividends this year.
Apple, of course, is the most valuable stock on the market. It is worth some $2.8 trillion dollars. Even if its shares were cut in half, it would still be one of the five most valuable companies. That’s because Apple remains the technological leader when it comes to products like the iPhone, Apple Watch, Mac, and other personal electronic gear.
It just revealed its new product lineup. Apple will be releasing the iPhone 15 that will sell for $799, some $50 cheaper than last year’s iPhone 14 (The Pro will cost $999). This comes as smartphone sales are expected to fall to their lowest level in the past decade. Shipments this year will hit 1.15 billion units, a 6% decline 6%, according to Counterpoint Research.
Apple continues to narrow the gap between it and Samsung inglobal marketshare. The iPhone now has a 17% share of the market, up from 14% last year, while Samsung’s share remained flat at 20%. With the iPhone 15’s release, that gap may narrow further. This make it one of those Warren Buffett dividend stocks you should keep on your watchlist.
Apple’s stock is off nearly 10% from its all-time highs. With a pricey valuation, shares could slip further if the new iPhone doesn’t catch on quickly. Apple manages to surprise naysayers, so keep an eye out for where they go.
Bank of America (BAC)
Source: FabrikaSimf / Shutterstock
Bank of America (NYSE:BAC) stock is faring even worse than Apple as a result of the financial crisis earlier this year. The seizure of Silicon Valley Bank, Signature Bank (OTCMKTS:SBNY), and others created a ripple effect of worry about the health of America’s banking system. It reached even to the biggest banks, such as Bank of America. Its stock tumbled 25% from its highs.
Buffett owns over one billion shares of the bank. He held on tight to the stock even as he shed the shares of other financial institutions.
The market shouldn’t be so worried. While rising interest rates increase the cost of liabilities and decrease the value of investment securities held as assets, they do give banks opportunities to increase earnings by pushing up rates charged on loans, increasing profits.
Moreover, the shaken consumer confidence in banks caused them to withdraw their money from smaller banks and put it into larger ones like Bank of America. It added 157,000 net new customers in the most recent quarter. It’s the 18th consecutive quarter of growth. Revenue of $10.5 billion was 15% higher than last year.
With Bank of America’s stock trading at just 90% of its book value, the stock is a bargain. It also pays a dividend of $0.96 per share yielding 3.4% annually. For Buffett’s one-billion-plus shares, he’s raking in a cool $991.5 billion in dividends. That makes Bank of America Berkshire Hathaway’s biggest dividend check of the year.
On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L’Express, and numerous other news outlets.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) Source: askarim / Shutterstock Even though Apple (NASDAQ:AAPL) is Buffett’s favorite stock, comprising 46% of Berkshire Hathaway’s total portfolio, it’s not the top dividend-generating stock. It suggests the short and medium-depth wells oil companies are opting for will end up showing up on the income statement as reduced revenue. On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. | Apple (AAPL) Source: askarim / Shutterstock Even though Apple (NASDAQ:AAPL) is Buffett’s favorite stock, comprising 46% of Berkshire Hathaway’s total portfolio, it’s not the top dividend-generating stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since becoming CEO of Berkshire Hathaway (NYSE:BRK-A NYSE:BRK-B) in 1965, Warren Buffett generated 3.7 million percent returns for investors. What follows are the top Warren Buffett dividend stocks Berkshire Hathaway owns. | Apple (AAPL) Source: askarim / Shutterstock Even though Apple (NASDAQ:AAPL) is Buffett’s favorite stock, comprising 46% of Berkshire Hathaway’s total portfolio, it’s not the top dividend-generating stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since becoming CEO of Berkshire Hathaway (NYSE:BRK-A NYSE:BRK-B) in 1965, Warren Buffett generated 3.7 million percent returns for investors. Buffett owns over 915 million shares of the tech giant, but Apple’s dividend of $0.96 per share means he will collect just under $879 million worth of dividends this year. | Apple (AAPL) Source: askarim / Shutterstock Even though Apple (NASDAQ:AAPL) is Buffett’s favorite stock, comprising 46% of Berkshire Hathaway’s total portfolio, it’s not the top dividend-generating stock. Yet Occidental’s dividend is $0.96 per share, so if you do the math, it looks like Buffett will only collect around $161 million in dividends from his shares. The iPhone now has a 17% share of the market, up from 14% last year, while Samsung’s share remained flat at 20%. |
86 | 13,524 | 2023-09-21 00:00:00 UTC | Invesco NASDAQ 100 ETF Experiences Big Inflow | AAPL | https://www.nasdaq.com/articles/invesco-nasdaq-100-etf-experiences-big-inflow-4 | null | null | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco NASDAQ 100 ETF (Symbol: QQQM) where we have detected an approximate $201.0 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 94,210,000 to 95,550,000). Among the largest underlying components of QQQM, in trading today Apple Inc (Symbol: AAPL) is trading flat, Microsoft Corporation (Symbol: MSFT) is trading flat, and Amazon.com Inc (Symbol: AMZN) is lower by about 3.1%. For a complete list of holdings, visit the QQQM Holdings page » The chart below shows the one year price performance of QQQM, versus its 200 day moving average:
Looking at the chart above, QQQM's low point in its 52 week range is $104.62 per share, with $159.57 as the 52 week high point — that compares with a last trade of $148.20. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
Also see:
Preferred Stock Investing
EYPT market cap history
DCPH market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of QQQM, in trading today Apple Inc (Symbol: AAPL) is trading flat, Microsoft Corporation (Symbol: MSFT) is trading flat, and Amazon.com Inc (Symbol: AMZN) is lower by about 3.1%. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs. | Among the largest underlying components of QQQM, in trading today Apple Inc (Symbol: AAPL) is trading flat, Microsoft Corporation (Symbol: MSFT) is trading flat, and Amazon.com Inc (Symbol: AMZN) is lower by about 3.1%. For a complete list of holdings, visit the QQQM Holdings page » The chart below shows the one year price performance of QQQM, versus its 200 day moving average: Looking at the chart above, QQQM's low point in its 52 week range is $104.62 per share, with $159.57 as the 52 week high point — that compares with a last trade of $148.20. Click here to find out which 9 other ETFs had notable inflows » Also see: Preferred Stock Investing EYPT market cap history DCPH market cap history The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of QQQM, in trading today Apple Inc (Symbol: AAPL) is trading flat, Microsoft Corporation (Symbol: MSFT) is trading flat, and Amazon.com Inc (Symbol: AMZN) is lower by about 3.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco NASDAQ 100 ETF (Symbol: QQQM) where we have detected an approximate $201.0 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 94,210,000 to 95,550,000). For a complete list of holdings, visit the QQQM Holdings page » The chart below shows the one year price performance of QQQM, versus its 200 day moving average: Looking at the chart above, QQQM's low point in its 52 week range is $104.62 per share, with $159.57 as the 52 week high point — that compares with a last trade of $148.20. | Among the largest underlying components of QQQM, in trading today Apple Inc (Symbol: AAPL) is trading flat, Microsoft Corporation (Symbol: MSFT) is trading flat, and Amazon.com Inc (Symbol: AMZN) is lower by about 3.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco NASDAQ 100 ETF (Symbol: QQQM) where we have detected an approximate $201.0 million dollar inflow -- that's a 1.4% increase week over week in outstanding units (from 94,210,000 to 95,550,000). For a complete list of holdings, visit the QQQM Holdings page » The chart below shows the one year price performance of QQQM, versus its 200 day moving average: Looking at the chart above, QQQM's low point in its 52 week range is $104.62 per share, with $159.57 as the 52 week high point — that compares with a last trade of $148.20. |
87 | 13,558 | 2023-09-20 00:00:00 UTC | Apple Stock: Bull vs. Bear | AAPL | https://www.nasdaq.com/articles/apple-stock%3A-bull-vs.-bear-3 | null | null | As the world's most valuable company with a market cap of $2.7 trillion, Apple (NASDAQ: AAPL) has a long history of offering investors consistent gains. The company has achieved record highs and has become one of the most dominant figures in tech.
However, 2023 hasn't been easy. Apple's quarterly revenue has repeatedly slipped as macroeconomic headwinds have caught up with its product sales.
Apple is making headway in high-growth markets like artificial intelligence (AI) and virtual/augmented reality (VR/AR), but it will take time to see a solid return on its investments. So before you load up on Apple shares, it's wise to consider the positives and potential negatives of its business.
Here's the bear case versus the bull case for Apple stock.
Bull: Introducing AI features across its product lineup
Apple held its annual September event on the 12th, debuting the iPhone 15, the next generation of the Apple Watch Ultra, and an update to the AirPods Pro. The showcase gave more clues to the company's AI strategy, gradually sprinkling the technology across its lineup. While tech giants like Amazon and Microsoft have rushed to share their ventures into AI, Apple has taken a quieter approach.
Rather than speak directly about AI, the iPhone company is using its research on the technology to improve user experience with its products. Siri is now 25% more accurate, while Apple Watch users will soon be able to use finger gestures to control aspects of the device.
The AI-enabled updates shared at this month's event build on ones introduced earlier this year. In June, Apple announced an overhaul of the iPhone's autocorrect feature, which uses a language model similar to OpenAI's ChatGPT to learn texting styles. Meanwhile, the AirPods Pro will automatically turn off noise canceling when the wearer engages in conversation.
Apple's use of AI aligns with comments from CEO Tim Cook. In an interview with Reuters in August, the executive talked about the company's research and development spending increasing by $3 billion in the third quarter of 2023, hitting close to $23 billion. Cook said an increase in generative AI research primarily drove the jump.
Apple holds leading market shares in multiple product categories thanks to immense brand loyalty from consumers. Its stature in tech could see it bolster public adoption of AI, boosting sales as it attracts new customers. Other companies like Amazon are focused on the business sector, but Apple could cash in on consumer use of AI.
Bear: Repeated revenue declines
Apple shares have tumbled 10% since Aug. 1. Stockholders have grown weary after the company posted its Q3 2023 results. The period represented the third consecutive quarter of revenue declines, falling 1% year over year. Marketwide challenges have caused reductions in consumer spending on tech, with three of Apple's four product segments experiencing slips in revenue.
However, macroeconomic headwinds won't last forever, and the good news is Apple is continuing to outperform the competition. According to Counterpoint Research, smartphone shipments fell by 24% in Q2 2023. As a result, market leaders like Samsung and Motorola suffered sales declines of 37% and 17%. However, the same period saw Apple's iPhone sales fall 6%, enabling it to increase its market share from 52% to 55%.
Apple performed similarly amid PC market challenges. Data from IDC shows PC shipments dipped 13% in Q2 2023. Dell, Lenovo, and Acer reported shipment declines between 18% and 22%. Meanwhile, Apple's MacBook shipments actually increased by about 10% in the quarter.
Apple isn't out of the woods with economic challenges and could continue to see revenue declines for the rest of the year. Therefore, an investment in its stock should be held for the long term. The company could profit significantly in the coming years from easing inflation and its expanding position in AI. The recent dip in its share price makes Apple an attractive investment. However, prospective investors will need to be patient if a potential recession hits and hold for five to ten years minimum as the company recovers.
Find out why Apple is one of the 10 best stocks to buy now
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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. Dani Cook has no position in any of the stocks mentioned. 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. | As the world's most valuable company with a market cap of $2.7 trillion, Apple (NASDAQ: AAPL) has a long history of offering investors consistent gains. In June, Apple announced an overhaul of the iPhone's autocorrect feature, which uses a language model similar to OpenAI's ChatGPT to learn texting styles. *Stock Advisor returns as of September 11, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. | As the world's most valuable company with a market cap of $2.7 trillion, Apple (NASDAQ: AAPL) has a long history of offering investors consistent gains. Apple's quarterly revenue has repeatedly slipped as macroeconomic headwinds have caught up with its product sales. Bull: Introducing AI features across its product lineup Apple held its annual September event on the 12th, debuting the iPhone 15, the next generation of the Apple Watch Ultra, and an update to the AirPods Pro. | As the world's most valuable company with a market cap of $2.7 trillion, Apple (NASDAQ: AAPL) has a long history of offering investors consistent gains. Bull: Introducing AI features across its product lineup Apple held its annual September event on the 12th, debuting the iPhone 15, the next generation of the Apple Watch Ultra, and an update to the AirPods Pro. Other companies like Amazon are focused on the business sector, but Apple could cash in on consumer use of AI. | As the world's most valuable company with a market cap of $2.7 trillion, Apple (NASDAQ: AAPL) has a long history of offering investors consistent gains. Bull: Introducing AI features across its product lineup Apple held its annual September event on the 12th, debuting the iPhone 15, the next generation of the Apple Watch Ultra, and an update to the AirPods Pro. The period represented the third consecutive quarter of revenue declines, falling 1% year over year. |
88 | 13,569 | 2023-09-19 00:00:00 UTC | US has no evidence Huawei can make advanced smartphones in large volumes | AAPL | https://www.nasdaq.com/articles/us-has-no-evidence-huawei-can-make-advanced-smartphones-in-large-volumes | null | null | By David Shepardson
WASHINGTON, Sept 19 (Reuters) - The U.S. has no evidence that Chinese manufacturer Huawei can produce smartphones with advanced chips in large volume, U.S. Commerce Secretary Gina Raimondo said on Tuesday.
Huawei recently started selling its Mate 60 Pro phone containing a chip that analysts believe was made with a technology breakthrough by Chinese chip foundry Semiconductor Manufacturing International Corp (SMIC) 0981.HK.
"We don't have any evidence that they can manufacture seven-nanometer (chips) at scale," Raimondo said at a U.S. House hearing, referencing an advanced chip.
From 2019, the U.S. cut Huawei's access to certain chipmaking tools, calling Huawei a security risk, which the company denies. The U.S. government has said Huawei poses “unacceptable” national security risks because of the threat of spying on U.S. telecommunications networks.
The Commerce Department said this month it is working to obtain more information "on the character and composition" of the chip that may violate trade restrictions since they said it must have been made with U.S. technology.
Raimondo told the House Science Committee hearing she was upset by the advanced Huawei smartphone report.
Some Republicans think the Commerce Department should end all technology exports to Huawei and SMIC.
The chairs of the House Foreign Affairs, Energy and Commerce, Armed Services, and select China committees last week urged the Commerce Department to stop granting licenses to Huawei and SMIC, and said it called for additional U.S. pressure "and more effective export controls on our adversaries."
Raimondo declined to comment after the hearing on whether she was considering ending all licenses for Huawei.
Republican Representative Darrell Issa said at the hearing Raimondo was in China when the new Huawei phone was announced.
"You were bushwhacked to say the least by the launch of a 5G phone," Issa said.
White House National Security Adviser Jake Sullivan said this month the U.S. government is trying to get more information about the Huawei chip.
Raimondo also told reporters the apparent bans on some Chinese government official use of Apple's AAPL.O iPhones by the Chinese government was "concerning."
(Reporting by David Shepardson; Editing by Chizu Nomiyama and Josie Kao)
(([email protected]; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Raimondo also told reporters the apparent bans on some Chinese government official use of Apple's AAPL.O iPhones by the Chinese government was "concerning." By David Shepardson WASHINGTON, Sept 19 (Reuters) - The U.S. has no evidence that Chinese manufacturer Huawei can produce smartphones with advanced chips in large volume, U.S. Commerce Secretary Gina Raimondo said on Tuesday. The Commerce Department said this month it is working to obtain more information "on the character and composition" of the chip that may violate trade restrictions since they said it must have been made with U.S. technology. | Raimondo also told reporters the apparent bans on some Chinese government official use of Apple's AAPL.O iPhones by the Chinese government was "concerning." By David Shepardson WASHINGTON, Sept 19 (Reuters) - The U.S. has no evidence that Chinese manufacturer Huawei can produce smartphones with advanced chips in large volume, U.S. Commerce Secretary Gina Raimondo said on Tuesday. Raimondo told the House Science Committee hearing she was upset by the advanced Huawei smartphone report. | Raimondo also told reporters the apparent bans on some Chinese government official use of Apple's AAPL.O iPhones by the Chinese government was "concerning." By David Shepardson WASHINGTON, Sept 19 (Reuters) - The U.S. has no evidence that Chinese manufacturer Huawei can produce smartphones with advanced chips in large volume, U.S. Commerce Secretary Gina Raimondo said on Tuesday. Huawei recently started selling its Mate 60 Pro phone containing a chip that analysts believe was made with a technology breakthrough by Chinese chip foundry Semiconductor Manufacturing International Corp (SMIC) 0981.HK. | Raimondo also told reporters the apparent bans on some Chinese government official use of Apple's AAPL.O iPhones by the Chinese government was "concerning." Raimondo told the House Science Committee hearing she was upset by the advanced Huawei smartphone report. Some Republicans think the Commerce Department should end all technology exports to Huawei and SMIC. |
89 | 13,604 | 2023-09-18 00:00:00 UTC | Stocks Mixed on Caution Ahead of Tue/Wed FOMC Meeting | AAPL | https://www.nasdaq.com/articles/stocks-mixed-on-caution-ahead-of-tue-wed-fomc-meeting | null | null | What you need to know…
The S&P 500 Index ($SPX) (SPY) today is down -0.09%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.13%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.12%.
Bearish factors include the UAW strike, the possibility of a U.S. government shutdown on September 30, and mildly higher global bond yields. A +1.2% rally in Apple is supporting tech stocks.
Today’s NAHB U.S. housing market index fell by -5 points to a 5-month low of 45, much weaker than expectations for a -1 point drop to 49. The reduced confidence expressed by U.S. homebuilders suggests that home building activity may weaken in the coming months.
Stocks are being undercut by caution ahead of the 2-day FOMC meeting on Tuesday and Wednesday. The markets are fully expecting the FOMC this week to leave its funds rate target unchanged at 5.25/5.50%. However, the FOMC is expected to maintain a hawkish tone and remain open to one last rate hike since inflation and the economy have not yet slowed enough.
Looking ahead for the FOMC, the markets are discounting a 31% chance that the FOMC will raise the funds rate by +25 bp at the next FOMC meeting on November 1, and a 13% chance for that 25 bp rate hike at the following meeting on December 13. The markets are then expecting the FOMC to begin cutting rates in 2024 in response to an expected slowdown in the U.S. economy.
Global bond yields are steady to higher. The 10-year T-note yield is little changed at 4.333%. The 10-year German bund yield is up +3.0 bp at 2.705%. The 10-year UK gilt yield is up +3.2 bp at 4.390%.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -1.09%. China’s Shanghai Composite Index closed +0.26%. Japan was closed today for a national holiday.
Today’s stock movers…
Apple (AAPL) is up +1.1% on optimism about strong pre-orders for the company’s latest iPhone 15.
Micron (MU) is up +1.3% on an upgrade to buy from hold by Deutsche Bank on the basis that DRAM chip prices are rising faster than expected. The news is supportive of other chipmakers.
Leading losers in the Nasdaq 100 today include Moderna (MRNA), Tesla (TSLA), AstraZeneca (AZN).
L3Harris Technologies (LHX) is up +0.7% on an upgrade to overweight from equal-weight by Wells Fargo due to an improved risk-reward.
Alteryx (AYX) is up +3.8% on an upgrade to overweight from equal-weight by Morgan Stanley on the view of an attractive valuation versus its growth and profit potential.
PayPal Holdings (PYPL) is down -1.9% on a downgrade to market-perform from outperform by MoffettNathanson as the analyst expected weak profit growth due to increased competition.
NetApp (NTAP) is down -2.9% on a downgrade by William Blair to market-perform from outperform.
Carvana (CVNA) is up +4.9% on an upgrade by Wedbush to neutral from underperform.
Clorox (CLX) is down -1.2% after the company said there was “unauthorized activity” on some of its IT systems in August that would negatively impact its fiscal Q1 results due to order processing delays.
Across the markets…
December 10-year T-notes (ZNZ23) today are down -3 ticks, and the 10-year T-note yield is little changed at 4.333%. T-notes are under pressure today as oil prices continue higher and put upward pressure on inflation expectations. The 10-year breakeven inflation expectations rate today is up +0.3 bp at 2.353%. T-notes received support today from the -5 point drop in the NAHB housing market index.
The dollar index (DXY00) today is little changed. The dollar is seeing some underlying support from expectations for a mildly hawkish FOMC meeting outcome on Wednesday. Meanwhile, EUR/USD (^EURUSD) is little changed, and USD/JPY (^USDJPY) is down -0.09%. The Japanese markets were closed today but are looking forward to the Bank of Japan’s policy meeting on Friday.
October gold (GCV3) today is up +1.2 (+0.06%), and Dec silver (SIZ23) is down -0.036 (-0.15%). Gold is seeing support today from increased safe-haven demand with the weakness in stocks. However, silver is being undercut by higher global bond yields and fears of weaker global economic growth. Gold continues to be pressured by the liquidation pressures after long gold holdings in ETFs fell to a 3-1/3 year low last Thursday.
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On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Plus 3 Ideas to Get You Going Where Bulls and Bears Collide: AAPL's Max Pain Strikes at $180 Stocks Set to Open Lower as Investors Cautiously Await Fed Meeting On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. Today’s stock movers… Apple (AAPL) is up +1.1% on optimism about strong pre-orders for the company’s latest iPhone 15. PayPal Holdings (PYPL) is down -1.9% on a downgrade to market-perform from outperform by MoffettNathanson as the analyst expected weak profit growth due to increased competition. | Today’s stock movers… Apple (AAPL) is up +1.1% on optimism about strong pre-orders for the company’s latest iPhone 15. Plus 3 Ideas to Get You Going Where Bulls and Bears Collide: AAPL's Max Pain Strikes at $180 Stocks Set to Open Lower as Investors Cautiously Await Fed Meeting On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. Today’s NAHB U.S. housing market index fell by -5 points to a 5-month low of 45, much weaker than expectations for a -1 point drop to 49. | Today’s stock movers… Apple (AAPL) is up +1.1% on optimism about strong pre-orders for the company’s latest iPhone 15. Plus 3 Ideas to Get You Going Where Bulls and Bears Collide: AAPL's Max Pain Strikes at $180 Stocks Set to Open Lower as Investors Cautiously Await Fed Meeting On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. Today’s NAHB U.S. housing market index fell by -5 points to a 5-month low of 45, much weaker than expectations for a -1 point drop to 49. | Today’s stock movers… Apple (AAPL) is up +1.1% on optimism about strong pre-orders for the company’s latest iPhone 15. Plus 3 Ideas to Get You Going Where Bulls and Bears Collide: AAPL's Max Pain Strikes at $180 Stocks Set to Open Lower as Investors Cautiously Await Fed Meeting On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. The 10-year T-note yield is little changed at 4.333%. |
90 | 13,613 | 2023-09-17 00:00:00 UTC | FOMC, Energy and Other Key Things to Watch This Week | AAPL | https://www.nasdaq.com/articles/fomc-energy-and-other-key-things-to-watch-this-week | null | null | Last week we received some disappointing news on the inflation front. Both PPI and CPI came in a little hotter than expected, and fears were stoked that inflation could be coming back. Up until Friday most names were up pretty well on the week. Tesla (TSLA) shot up out of the gate on Monday and had a very tradable week. Apple (AAPL) had the opposite issue this week, it has slowly trended down the majority of the week on continued fears of the China news and a disappointing iPhone 15 launch. All of these culminated in the S&P 500 ($SPX) (SPY) ending the week down nearly 1%.
This week looks to be an exciting one, in addition to the normal news in the cycle we also have the FOMC/Fed Funds and then the press conference that follows. Here are 5 things to watch this week in the market.
Building Permits
Housing is still firmly in the news cycle as the strangeness continues. In some private data released last week, existing home sales looked to be at record low levels whereas new homes were still selling as fast as they could be built. This, in addition to existing home sales later this week, will either confirm or counter what was asserted in that private data from Realtors. Watching building permits could be a great way to gauge if builders are racing to meet the excess demand in the market. If they are it could mean that housing prices will eventually begin to subside as supply continues to increase. If this comes in lower, then the opposite could be assumed and this housing issue could be here to stay.
Fed Funds/FOMC
This is the big day everyone has been waiting for recently, with reports starting to show inflation is creeping back up and energy becoming an issue again going into the fall. What happens to the Fed Funds is anyone's guess. The market appears to be pricing in a “no change” decision, and this is what the estimates are across many financial outlets. With housing still an issue, energy starting to push inflation up again, and some other supply chain issues rearing their heads, it's possible Powell will hold firm and not take future hikes off the table. If this is the case, it's possible the market start to sell on renewed fears of hikes. On the other hand, if he pauses and or cuts, It's possible we rally on the assumption the worst is behind us.
Existing Home Sales
Similar to the Building Permits above, Existing home sales have been falling month over month and have been getting revised down in the most recent months. We are looking for an increase in existing home sales to help potentially show that housing is starting to unlock and that prices could start to come down.
Flash PMI
Both Flash Manufacturing and Services PMI are due Friday morning at 9:45. These are typically leading indicators for economic health as they show the impact on forecasted purchasing for both sectors. Usually, a beat would be a positive and would be something we would want to see. As of recently though the “good news is Bad News” seems to be the market paradigm. So it's possible that a miss would be seen as beneficial for the markets as everything seems to still be revolving around interest rates. It's also possible that FOMC impacts how this report is taken by the markets. If a pause or cut is anticipated next, it could help the market to start to look at these reports “normally” again.
Energy
Energy is still in the news and could still be a factor in the markets. This poses more of a macro risk, but as diesel and gas prices continue to rise so will the prices of the goods that need to be transported. It's possible that this fear continues to play into both rate decisions and consumer habits as the prices at the pump continue to increase.
Best of luck this week and don’t forget to check out my daily options article.
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On the date of publication, Gavin McMaster did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Apple (AAPL) had the opposite issue this week, it has slowly trended down the majority of the week on continued fears of the China news and a disappointing iPhone 15 launch. This, in addition to existing home sales later this week, will either confirm or counter what was asserted in that private data from Realtors. Watching building permits could be a great way to gauge if builders are racing to meet the excess demand in the market. | Apple (AAPL) had the opposite issue this week, it has slowly trended down the majority of the week on continued fears of the China news and a disappointing iPhone 15 launch. In some private data released last week, existing home sales looked to be at record low levels whereas new homes were still selling as fast as they could be built. Fed Funds/FOMC This is the big day everyone has been waiting for recently, with reports starting to show inflation is creeping back up and energy becoming an issue again going into the fall. | Apple (AAPL) had the opposite issue this week, it has slowly trended down the majority of the week on continued fears of the China news and a disappointing iPhone 15 launch. We are looking for an increase in existing home sales to help potentially show that housing is starting to unlock and that prices could start to come down. More Stock Market News from Barchart Soybean Prices Poised to Decline Further Into Their October Seasonal Lows 2 Buy-Rated Dividend Stocks to Scoop Up Now Stocks Slump as Tech Stock Weakness Weighs on the Overall Market Nike: Is This Underperforming Growth Stock a "Value Buy" Right Now? | Apple (AAPL) had the opposite issue this week, it has slowly trended down the majority of the week on continued fears of the China news and a disappointing iPhone 15 launch. Fed Funds/FOMC This is the big day everyone has been waiting for recently, with reports starting to show inflation is creeping back up and energy becoming an issue again going into the fall. We are looking for an increase in existing home sales to help potentially show that housing is starting to unlock and that prices could start to come down. |
91 | 13,621 | 2023-09-16 00:00:00 UTC | The 3 Most Undervalued AI Stocks to Buy in September 2023 | AAPL | https://www.nasdaq.com/articles/the-3-most-undervalued-ai-stocks-to-buy-in-september-2023 | null | null | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Although artificial intelligence has garnered tremendous interest for good reason, investors may want to focus more of their attention on undervalued AI stocks to buy. Don’t get me wrong – some of the hottest trades right now continue to impress, most noticeably Nvidia (NASDAQ:NVDA). However, these ideas are simply too hot to touch for most investors.
For those that are concerned about holding the bag should market sentiment suddenly go sour, the undervalued AI stocks make more sense. To be sure, no endeavor in the capital market operates without risk. Still, with the enterprises enjoying the machine learning spotlight carrying wildly aggressive multiples, it’s time to consider a discounted route. If that’s you, below are the less-appreciated but still power AI stocks to buy.
Qualcomm (QCOM)
Source: Akshdeep Kaur Raked / Shutterstock.com
While Qualcomm (NASDAQ:QCOM) hasn’t enjoyed the best outing this year – only gaining a bit more than 6% since the January opener – it’s worth putting on your radar for undervalued AI stocks to buy. No, it’s not just because of its poor chart performance. For one thing, Qualcomm unexpectedly got a boost when Apple (NASDAQ:AAPL) signed a new supply deal with the tech specialist.
Of course, it’s not clear how long such an arrangement will last. After all, Apple has long indicated that it wants to build its own modem chips for its flagship iPhone. Apparently, though, that’s easier said than done. Plus, even if Apple eventually separates from third-party suppliers, Qualcomm commands acumen that’s difficult to ignore. Plus, QCOM is one of the most attractively valued AI stocks. Right now, it trades at 12.41x forward earnings. In contrast, the sector median is 20.96x. Finally, analysts peg QCOM as a consensus moderate buy with a $135.82 price target, implying over 19% upside.
Teradyne (TER)
Source: Michael Vi / Shutterstock.com
An automatic test equipment designer and manufacturer, Teradyne (NASDAQ:TER) features many high-profile customers, including Qualcomm. While an important player in the broader tech ecosystem, Teradyne isn’t exactly a pure-play example of AI stocks to buy. However, it’s part of the semiconductor industry supply chain, which has benefitted from a post-pandemic demand surge.
Moving forward, Teradyne should play an increasingly important role in digital intelligence. As chip capacities increase, demand for various testing services and electronic equipment should rise. In addition, Teradyne sells robotic systems to customers in the manufacturing sector, according to Reuters.
On a financial basis, TER benefits from a stout balance sheet and excellent profit margins. Even with its superior bottom-line performance, TER trades at 16.44x forward earnings. Again, this rates much lower than the chip sector’s median 20.96x. Lastly, analysts peg TER as a moderate buy with a $119.15 price target, implying nearly 22% growth.
Baidu (BIDU)
Source: monticello / Shutterstock.com
A Chinese multinational technology firm, Baidu (NASDAQ:BIDU) is an interesting case because of the ongoing U.S.-China chip war. With tensions rising between the two biggest economies in the world, Baidu inherently presents risks. At the same time, acquiring AI stocks that trade at over 100x trailing earnings is another form of risk that many investors simply don’t want to take.
Fortunately, Baidu offers some enticing exposure for the adventurous. For example, another Reuters report noted that more than 70 large AI language models with over 1 billion parameters have been release in China. What’s more, Baidu is one of several Chinese companies that have launched AI chatbots recently following regulatory approval for mass market releases.
What makes BIDU stand out is its value proposition. Right now, the market prices shares at a forward earnings multiple of 13.88x. This compares favorably to the interactive media industry’s median value of 18.04x.
In closing, analysts peg BIDU as a consensus strong buy with a $185.07 price target, implying 35% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For one thing, Qualcomm unexpectedly got a boost when Apple (NASDAQ:AAPL) signed a new supply deal with the tech specialist. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires. | For one thing, Qualcomm unexpectedly got a boost when Apple (NASDAQ:AAPL) signed a new supply deal with the tech specialist. Finally, analysts peg QCOM as a consensus moderate buy with a $135.82 price target, implying over 19% upside. Teradyne (TER) Source: Michael Vi / Shutterstock.com An automatic test equipment designer and manufacturer, Teradyne (NASDAQ:TER) features many high-profile customers, including Qualcomm. | For one thing, Qualcomm unexpectedly got a boost when Apple (NASDAQ:AAPL) signed a new supply deal with the tech specialist. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Although artificial intelligence has garnered tremendous interest for good reason, investors may want to focus more of their attention on undervalued AI stocks to buy. Qualcomm (QCOM) Source: Akshdeep Kaur Raked / Shutterstock.com While Qualcomm (NASDAQ:QCOM) hasn’t enjoyed the best outing this year – only gaining a bit more than 6% since the January opener – it’s worth putting on your radar for undervalued AI stocks to buy. | For one thing, Qualcomm unexpectedly got a boost when Apple (NASDAQ:AAPL) signed a new supply deal with the tech specialist. As chip capacities increase, demand for various testing services and electronic equipment should rise. Baidu (BIDU) Source: monticello / Shutterstock.com A Chinese multinational technology firm, Baidu (NASDAQ:BIDU) is an interesting case because of the ongoing U.S.-China chip war. |
92 | 13,629 | 2023-09-15 00:00:00 UTC | Dividend Yield: Why it Matters | AAPL | https://www.nasdaq.com/articles/dividend-yield%3A-why-it-matters | null | null | Dividend yield is frequently the first metric you will use when considering buying one or more dividend stocks.
A common strategy for investors interested in maximizing the benefits of dividend stocks is to buy the dividend stocks that return the highest yield.
In many cases, dividends with a high yield equate to financially stable companies with the ability and willingness to increase their dividend over time. These companies typically have strong balance sheets that hold up in both good and bad financial conditions. That stability means the companies are more likely to maintain or increase their dividend over time. Companies that have increased their dividends the most are known as Dividend Aristocrats or Dividend Kings.
However, there are exceptions to this theory, which is why it’s important to understand the factors that go into a dividend yield. This article will review the significance of a stock’s dividend yield for investors.
What is Dividend Yield?
A dividend yield is an expression of a company’s dividend expressed as a percentage of its stock price. The formula for calculating dividend yield is:
Dividend yield = Current annual dividend (per share)/Current stock price
Let’s look at two examples:
Verizon Communications Inc. (NYSE: VZ) pays an annual dividend of $2.61 per share. If Verizon’s stock price is $35.48 on the day it declares its dividend (the declaration date) you could calculate the dividend yield would as follows:
2.61/35.48 = 0.07356 or 7.36%
Procter & Gamble Co. (NYSE: PG) pays an annual dividend of $3.76. The PG stock share price on the declaration date is $145.06. The dividend yield is:
3.76/145.06 = 0.0259 or 2.59%
Now, let's look at what that would mean if you bought $5,000 of each company's stock.
If you bought $5,000 of VZ stock at $35.48 per share, you would own 140.9 shares. Since Verizon pays its dividend quarterly, you would receive $0.6525 per share (2.61/4). Your payout would be:
140.9 x 0.6525 = 91.94
That means you would receive $91.94 as a cash payout or to reinvest in VZ stock.
Now let's look at Procter & Gamble. If you bought $5,000 of PG stock at $145.06, you would own 34.4 shares of PG stock. Procter & Gamble also pays its dividend quarterly, so you would receive 0.94 per share (3.76/4) for every share you owned. Your payout would be:
34.4 x 0.94 = 32.34
That means you would receive $32.34 as a cash payout or to reinvest in PG stock.
Benefits of Dividend Yield
Income-oriented investors choose dividend stocks because they are counting on the income they receive from dividends to supplement their retirement savings. Therefore, stocks with a higher yield become attractive because, for the same amount of money invested, these stocks increase the payout you receive.
If you don't need the income for immediate expenses, a major benefit of owning dividend stocks is the benefit of compounding. You receive this benefit by reinvesting your dividends into a dividend reinvestment plan (DRIP). Because dividends pay out on a regular schedule, usually quarterly, you'll continue to buy shares regularly.
This, in turn, allows you to buy more or fractional shares, which increases the size of your next payout. Over time this is a proven way to build wealth over time.
What is a Good Dividend Yield?
What constitutes a good dividend yield will depend on many factors. However, many analysts suggest that a good dividend yield is a yield that is higher than a corresponding index.
For example, as of March 31, 2023, the average dividend yield of stocks included in the S&P 500 Index was 1.66%. However, historically, the index has had an average yield between 3% and 5%, so any stock with a dividend yield within that range is said to be a high-yielding dividend stock.
How to Evaluate Dividend Yield
Because dividend yield is based on the company’s current stock price, it will change daily and even several times throughout a trading session. This makes it an imperfect standalone metric for evaluating dividend stocks.
Therefore, investors need other ways to evaluate if a company’s dividend yield is a green light or a caution signal. Here are some factors to consider when evaluating a dividend yield.
Consider the Yield to Other Stocks in the Company’s Sector
When many investors think about dividend stocks, they may think about the blue-chip stocks their grandparents or parents owned. These companies, such as The Coca-Cola Company (NYSE: KO), grow consistently over time. Still, the real benefit to owning these stocks is the ability to collect a regular dividend over time. That’s one reason Warren Buffett likes KO stock.
However, Mr. Buffett also has an affinity for Apple Inc. (NASDAQ: AAPL). The tech giant is the definition of a growth stock consistently using its profits to branch into new areas. However, it also generates so much cash that it does manage to pay a small dividend.
Is the Dividend Sustainable?
Many dividend investors have suffered hefty losses after falling into a yield trap, which occurs when the company has an appealing dividend yield not supported with a strong balance sheet. That’s why investors must perform some basic fundamental analysis to understand how healthy a company is.
Are they growing earnings? Do they carry too much debt? Some companies can get away with borrowing money to pay a dividend. But over time, that’s not a sustainable strategy.
Look at the Company’s Dividend Payout Ratio
Next to dividend yield, a company’s dividend payout ratio (DPR) is probably the second most important metric to consider. The DPR measures how much profit a company uses to pay its dividend measured as a percentage. Any number above 60% is generally considered unsustainable, but that is sector and company-specific. For example, real estate investment trusts (REITs) and master limited partnerships (MLPs) must pay at least 90% of their profits through dividends.
Look For a History of Increasing Dividends
The best dividend stocks are companies with a proven history of increasing their dividends over time. The best of the best are considered dividend aristocrats and dividend kings. These companies have increased their dividends for at least 25 and 50 consecutive years, respectively. While past increases do not guarantee future increases, companies that commit dividend increases will tend to prioritize the dividend because they know that investors see it as a compelling reason to own the stock.
Dividend Yield isn’t Perfect, but it’s a Good Start
One of the many benefits of dividend investing is the annual dividend yield, typically paid out quarterly. For income-oriented investors, reliable and predictable regular income from dividends can make a difference in the quality of life in their retirement.
The dividend yield formula is: Dividend yield = Current annual dividend (per share)/Current stock price
So, a company that pays a total annual dividend of 80 cents per share with a stock price of $20 will have a dividend yield of 4%. Although there is no perfect answer to "What is considered an acceptable dividend yield?" most investors consider a 3%-4% annual dividend yield a good target, particularly if they plan to reinvest their dividends.
A limitation of using the dividend yield as a metric for investors is that it can misrepresent a company's financial health based on its stock price. For example, a company with increased revenue and earnings per share that falls short of analysts’ recommendations may see its stock price —and therefore its dividend yield — decline even though they are operating a healthy business. Conversely, there are times when a company may proactively announce a reduction in its dividend to take care of some pressing financial issues. However, if analysts perceive this action as one that can help the company's long-term health, they may increase its stock price.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, Mr. Buffett also has an affinity for Apple Inc. (NASDAQ: AAPL). For example, real estate investment trusts (REITs) and master limited partnerships (MLPs) must pay at least 90% of their profits through dividends. A limitation of using the dividend yield as a metric for investors is that it can misrepresent a company's financial health based on its stock price. | However, Mr. Buffett also has an affinity for Apple Inc. (NASDAQ: AAPL). The formula for calculating dividend yield is: Dividend yield = Current annual dividend (per share)/Current stock price Let’s look at two examples: Verizon Communications Inc. (NYSE: VZ) pays an annual dividend of $2.61 per share. Look at the Company’s Dividend Payout Ratio Next to dividend yield, a company’s dividend payout ratio (DPR) is probably the second most important metric to consider. | However, Mr. Buffett also has an affinity for Apple Inc. (NASDAQ: AAPL). The formula for calculating dividend yield is: Dividend yield = Current annual dividend (per share)/Current stock price Let’s look at two examples: Verizon Communications Inc. (NYSE: VZ) pays an annual dividend of $2.61 per share. Look For a History of Increasing Dividends The best dividend stocks are companies with a proven history of increasing their dividends over time. | However, Mr. Buffett also has an affinity for Apple Inc. (NASDAQ: AAPL). What is Dividend Yield? Since Verizon pays its dividend quarterly, you would receive $0.6525 per share (2.61/4). |
93 | 13,654 | 2023-09-14 00:00:00 UTC | US alleges Google got rich because people stick with search defaults | AAPL | https://www.nasdaq.com/articles/us-alleges-google-got-rich-because-people-stick-with-search-defaults-0 | null | null | By Diane Bartz
WASHINGTON, Sept 14 (Reuters) - The Justice Department pressed its argument on Thursday that Google sought to strike agreements with mobile carriers to win powerful default positions on smartphones to dominate search in an antitrust trial that could change the future of the internet.
The government wrapped up questioning of Antonio Rangel, who teaches behavioral biology at the California Institute of Technology on Thursday morning. Rangel discussed how consumers were likely to stick with browsers on computers and mobile phones that were pre-installed as the default application.
The government says the Alphabet GOOGL.O unit paid $10 billion annually to wireless companies like AT&T T.N, device makers like Apple AAPL.O and browser makers like Mozilla to be the default search engine on devices tofend off rivals and keep its search engine market share near 90%.
John Schmidtlein, a lawyer for Google, during cross-examination of Rangel, pointed out that a significant number of user search queries went to Google even when another search engine was the default.
A major part of Google's defense is that the government is wrong to say that Google broke the law to hold onto its massive market share because its search engine is wildly popular because of its quality, and that any payments to wireless companies or others were fair compensation for partners.
The fight has major implications for Big Tech, which has been accused of buying or strangling small rivals but has defended itself by emphasizing that its services are free, as in the case of Google, or inexpensive, as in the case of Amazon.com AMZN.O.
The government called witnesses on Tuesday and Wednesday to show that Google, as far back as the mid-2000s, sought to attract a large number of search queries by winning default status on mobile devices.
Google's clout in search, the government alleges, has helped Google build monopolies in some aspects of online search advertising. Search is free, so Google makes money through advertising.
The government has also alleged that Google illegally took steps to protect communications about the payments.
If Google is found to have broken the law, U.S. District Judge Amit Mehta, who is deciding the case, will then decide how to resolve it. He may order Google to stop practices he has found to be illegal or to sell assets.
Previous major antitrust trials include Microsoft MSFT.O, filed in 1998, and AT&T, filed in 1974. The AT&T breakup in 1982 is credited with paving the way for the modern cell phone industry, while the fight with Microsoft is credited with opening space for Google and others on the internet.
(Reporting by Diane Bartz Editing by Mark Potter and Richard Chang)
(([email protected];))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The government says the Alphabet GOOGL.O unit paid $10 billion annually to wireless companies like AT&T T.N, device makers like Apple AAPL.O and browser makers like Mozilla to be the default search engine on devices tofend off rivals and keep its search engine market share near 90%. By Diane Bartz WASHINGTON, Sept 14 (Reuters) - The Justice Department pressed its argument on Thursday that Google sought to strike agreements with mobile carriers to win powerful default positions on smartphones to dominate search in an antitrust trial that could change the future of the internet. The government wrapped up questioning of Antonio Rangel, who teaches behavioral biology at the California Institute of Technology on Thursday morning. | The government says the Alphabet GOOGL.O unit paid $10 billion annually to wireless companies like AT&T T.N, device makers like Apple AAPL.O and browser makers like Mozilla to be the default search engine on devices tofend off rivals and keep its search engine market share near 90%. The government called witnesses on Tuesday and Wednesday to show that Google, as far back as the mid-2000s, sought to attract a large number of search queries by winning default status on mobile devices. Previous major antitrust trials include Microsoft MSFT.O, filed in 1998, and AT&T, filed in 1974. | The government says the Alphabet GOOGL.O unit paid $10 billion annually to wireless companies like AT&T T.N, device makers like Apple AAPL.O and browser makers like Mozilla to be the default search engine on devices tofend off rivals and keep its search engine market share near 90%. John Schmidtlein, a lawyer for Google, during cross-examination of Rangel, pointed out that a significant number of user search queries went to Google even when another search engine was the default. A major part of Google's defense is that the government is wrong to say that Google broke the law to hold onto its massive market share because its search engine is wildly popular because of its quality, and that any payments to wireless companies or others were fair compensation for partners. | The government says the Alphabet GOOGL.O unit paid $10 billion annually to wireless companies like AT&T T.N, device makers like Apple AAPL.O and browser makers like Mozilla to be the default search engine on devices tofend off rivals and keep its search engine market share near 90%. The government called witnesses on Tuesday and Wednesday to show that Google, as far back as the mid-2000s, sought to attract a large number of search queries by winning default status on mobile devices. Google's clout in search, the government alleges, has helped Google build monopolies in some aspects of online search advertising. |
94 | 13,727 | 2023-09-13 00:00:00 UTC | Apple Shares Stumble Into The Buy Zone | AAPL | https://www.nasdaq.com/articles/apple-shares-stumble-into-the-buy-zone | null | null | Having easily outpaced the S&P 500 all year, Apple Inc (NASDAQ: AAPL) shares are suddenly finding themselves playing catchup against the benchmark index. Since hitting an all-time high at the end of July they’ve become noticeably cooler, and the bulls will be getting nervous. The stock is down more than 10% since then, while the S&P 500 is essentially flat.
Sure, there are reasons for this recent underperformance, and we’ll be digging into them. But the high-level message here is to start getting excited. It’s not often that Apple shares open up a buying opportunity like this, with investors far more used to having to buy into them while they’re cruising to high after high. And as we’ll see below, this entry opportunity mightn’t be around for long.
iPhone Concerns
First things first though, what is behind Apple’s recent drop? Well, having rallied close to 60% since the start of the year, far outpacing most other tech names, it’s perhaps not all that surprising that their shares would at some point take a breather. One of the main catalysts for this was the company’s Q3 results, which were released in the first week of August.
Despite mostly beating expectations, the numbers weren’t as good as they needed to be in order to both justify the rally up to that point and give it fresh fuel for the next leg. Indeed, Wall Street was quick to raise some concerns around their latest iPhone launch, with expected consumer demand well below what we’ve all become accustomed to from Apple.
This cloud on the horizon darkened last week when the Chinese government was reported to have banned its employees from having or using iPhones. Given the key role the Chinese market has played and is expected to play in Apple’s future growth, this was a headwind they could have done without.
In many ways, it was seen as payback for the Biden administration’s recent ban on China’s Huawei phones and other equipment. While overall the US-China relationship has undoubtedly improved from the low points of recent years, these kinds of headlines reinforce the fact that we’re not fully out of the woods just yet. Investors getting involved need to be mindful of just how exposed Apple could become should geo-political relations worsen.
30% Upside
But for now, already there are signs that the recent dip is becoming overdone. Morgan Stanley’s Erik Woodring came out in Apple’s defense when he reiterated his Overweight rating on their shares towards the end of last week, writing in a note to clients that it’s unlikely the ban on iPhones for Chinese government employees turns into something larger. His $215 price target remains rock solid and isn’t even the highest out there.
Wedbush’s Dan Ives also weighed in on Apple’s upside potential and minimized the risks from the ban in China. He reiterated his $230 price target which points to an upside in the region of at least 30% from where shares closed on Tuesday. Hitting this in the coming weeks would also mean Apple stock is back where it likes to be, at all-time highs.
Technically, the signs are also pointing to the current bout of selling running out of steam. Shares are currently trading right around the $175 mark, which is where they topped out multiple times in 2021 and 2022.
It’s also where buyers stepped in last month to stop the first round of the slide, so we expect that same to happen in the coming sessions. If this level does indeed prove to be unbreakable, then for those of us on the sidelines weighing up an entry point, you can’t really ask for better than that.
Getting Involved
Given the stock’s relative strength index already bounced back from being below 30, which indicates extremely oversold conditions, there’s clearly a whole level of buyers waiting on the sidelines to take advantage of what feels like a discount.
Even with this year’s rally, Apple’s price-to-earnings ratio is still only 29, so you’d struggle to make the argument they’re anywhere close to expensive. Taken into account with the recent dip and you get a sense of just how cheap their shares could be at these levels. Just don't expect the sale to last for long.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Having easily outpaced the S&P 500 all year, Apple Inc (NASDAQ: AAPL) shares are suddenly finding themselves playing catchup against the benchmark index. While overall the US-China relationship has undoubtedly improved from the low points of recent years, these kinds of headlines reinforce the fact that we’re not fully out of the woods just yet. Morgan Stanley’s Erik Woodring came out in Apple’s defense when he reiterated his Overweight rating on their shares towards the end of last week, writing in a note to clients that it’s unlikely the ban on iPhones for Chinese government employees turns into something larger. | Having easily outpaced the S&P 500 all year, Apple Inc (NASDAQ: AAPL) shares are suddenly finding themselves playing catchup against the benchmark index. Morgan Stanley’s Erik Woodring came out in Apple’s defense when he reiterated his Overweight rating on their shares towards the end of last week, writing in a note to clients that it’s unlikely the ban on iPhones for Chinese government employees turns into something larger. He reiterated his $230 price target which points to an upside in the region of at least 30% from where shares closed on Tuesday. | Having easily outpaced the S&P 500 all year, Apple Inc (NASDAQ: AAPL) shares are suddenly finding themselves playing catchup against the benchmark index. It’s not often that Apple shares open up a buying opportunity like this, with investors far more used to having to buy into them while they’re cruising to high after high. Morgan Stanley’s Erik Woodring came out in Apple’s defense when he reiterated his Overweight rating on their shares towards the end of last week, writing in a note to clients that it’s unlikely the ban on iPhones for Chinese government employees turns into something larger. | Having easily outpaced the S&P 500 all year, Apple Inc (NASDAQ: AAPL) shares are suddenly finding themselves playing catchup against the benchmark index. And as we’ll see below, this entry opportunity mightn’t be around for long. Well, having rallied close to 60% since the start of the year, far outpacing most other tech names, it’s perhaps not all that surprising that their shares would at some point take a breather. |
95 | 13,754 | 2023-09-12 00:00:00 UTC | GlobalFoundries opens $4 bln Singapore chip fabrication plant | AAPL | https://www.nasdaq.com/articles/globalfoundries-opens-%244-bln-singapore-chip-fabrication-plant | null | null | Updates throughout, adds context
SINGAPORE Sept 12 (Reuters) - GlobalFoundries GFS.O, the world's third-largest contract chipmaker, opened a $4 billion semiconductor fabrication plant in Singapore on Tuesday, as part of a major global manufacturing expansion.
The U.S chipmaker's new 23,000 square meters (248,000 square feet) facility will be able to produce 450,000 300 millimetre wafers per year at full capacity, expected by 2025 to 2026, and will create 1,000 jobs, the company's Singapore general manager Tan Yew Kong told reporters.
"If we run (the Singapore campus') capacity to the fullest, that will probably be (around) 45% of revenue for GlobalFoundries," he said, adding that the company expected weak global demand for chips to pick up by the second half of 2024.
The company's Singapore operations, which serve 200 clients worldwide, also include two other fabs that produce 720,000 300mm wafers and 692,000 200mm wafers a year respectively. The chips are used in cars and 5G technology.
GlobalFoundries announced a $6 billion global expansion in 2021 amid a chip shortage during the pandemic that has since reversed into a surplus.
One of GlobalFoundries' biggest clients is Qualcomm QCOMO.OO, which said on Monday it had signed a deal with Apple
GlobalFoundries is the world's third-largest foundry by revenue behind Taiwan's TSMC 2330.TW and South Korea's Samsung Electronics 005930.KS, according to market intelligence provider TrendForce.
Singapore's overall semiconductor output, which makes up 11% of the global market, is set to grow as more chipmakers open or expand operations in the coming months.
(Reporting by Fanny Potkin; Editing by Richard Chang and Jamie Freed)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | "If we run (the Singapore campus') capacity to the fullest, that will probably be (around) 45% of revenue for GlobalFoundries," he said, adding that the company expected weak global demand for chips to pick up by the second half of 2024. GlobalFoundries announced a $6 billion global expansion in 2021 amid a chip shortage during the pandemic that has since reversed into a surplus. Singapore's overall semiconductor output, which makes up 11% of the global market, is set to grow as more chipmakers open or expand operations in the coming months. | Updates throughout, adds context SINGAPORE Sept 12 (Reuters) - GlobalFoundries GFS.O, the world's third-largest contract chipmaker, opened a $4 billion semiconductor fabrication plant in Singapore on Tuesday, as part of a major global manufacturing expansion. The U.S chipmaker's new 23,000 square meters (248,000 square feet) facility will be able to produce 450,000 300 millimetre wafers per year at full capacity, expected by 2025 to 2026, and will create 1,000 jobs, the company's Singapore general manager Tan Yew Kong told reporters. The company's Singapore operations, which serve 200 clients worldwide, also include two other fabs that produce 720,000 300mm wafers and 692,000 200mm wafers a year respectively. | Updates throughout, adds context SINGAPORE Sept 12 (Reuters) - GlobalFoundries GFS.O, the world's third-largest contract chipmaker, opened a $4 billion semiconductor fabrication plant in Singapore on Tuesday, as part of a major global manufacturing expansion. The U.S chipmaker's new 23,000 square meters (248,000 square feet) facility will be able to produce 450,000 300 millimetre wafers per year at full capacity, expected by 2025 to 2026, and will create 1,000 jobs, the company's Singapore general manager Tan Yew Kong told reporters. "If we run (the Singapore campus') capacity to the fullest, that will probably be (around) 45% of revenue for GlobalFoundries," he said, adding that the company expected weak global demand for chips to pick up by the second half of 2024. | Updates throughout, adds context SINGAPORE Sept 12 (Reuters) - GlobalFoundries GFS.O, the world's third-largest contract chipmaker, opened a $4 billion semiconductor fabrication plant in Singapore on Tuesday, as part of a major global manufacturing expansion. The U.S chipmaker's new 23,000 square meters (248,000 square feet) facility will be able to produce 450,000 300 millimetre wafers per year at full capacity, expected by 2025 to 2026, and will create 1,000 jobs, the company's Singapore general manager Tan Yew Kong told reporters. "If we run (the Singapore campus') capacity to the fullest, that will probably be (around) 45% of revenue for GlobalFoundries," he said, adding that the company expected weak global demand for chips to pick up by the second half of 2024. |
96 | 13,808 | 2023-09-11 00:00:00 UTC | US STOCKS-Wall St rises on Tesla boost as investors await inflation data | AAPL | https://www.nasdaq.com/articles/us-stocks-wall-st-rises-on-tesla-boost-as-investors-await-inflation-data | null | null | By Shristi Achar A and Shubham Batra
Sept 11 (Reuters) - The S&P 500 and Nasdaq were on course for their best day in two weeks on Monday as Tesla led gains in megacaps, while investors awaited inflation data due later this week for clues on the U.S. Federal Reserve's interest-rate path.
Tesla TSLA.O jumped 8.7% as Morgan Stanley upgraded it to "overweight" from "equal-weight", saying the EV maker's Dojo supercomputer could boost the company's market value by nearly $600 billion.
Shares of other megacaps including Apple AAPL.O, Microsoft MSFT.O and Amazon AMZN.O rose between 0.1% and 2.4%%.
The S&P 500 consumer discretionary stocks .SPLRCD rose 2.2% to their highest level in a month, leading gains in key S&P 500 sectors.
Energy shares .SPNY were a major drag, down 1.1%.
Investors now await the crucial consumer and producer prices data as well as retail sales numbers due later this week.
A survey by New York Fed showed that Americans' overall views on inflation were little changed in August, as they predicted rising costs for homes and food, while expecting bleaker personal financial health.
"I don't expect anything (on rates) in September," said Anthony Denier, CEO at brokerage Webull.
"I do expect more movement towards the end of the year, but as long as the jobs data continues on the trend that we're seeing, the Fed won't need to be aggressive and that's going to be good for markets of course."
Wall Street had logged weekly losses on Friday after a recent uptick in oil prices and stronger-than-expected economic data fueled concerns of sticky inflation and interest rates staying higher for longer.
Traders see a 93% chance of the central bank holding its interest rates at current levels in the September meeting, while their odds for a pause in November stand at nearly 61%, according to CME FedWatch Tool.
Treasury yields inched up on Monday, with yields on 2-year note, considered to best reflect short-term interest rate expectations, hovering around 4.9906%.
Fed officials have entered a blackout period, during which they usually do not make public comments, until the policy decision outcome on Sept. 20.
At 11:42 a.m. ET, the Dow Jones Industrial Average .DJI was up 18.53 points, or 0.05%, at 34,595.12, the S&P 500 .SPX was up 15.91 points, or 0.36%, at 4,473.40, and the Nasdaq Composite .IXIC was up 94.04 points, or 0.68%, at 13,855.57.
While QualcommQCOM.O advanced 3.3% after the chipmaker signed a new deal with Apple to supply 5G chips to the iPhone maker until at least 2026, peers were down, led by a 2.1% fall in Nvidia NVDA.O.
Hostess BrandsTWNK.O jumped 19.2% after J. M. Smucker SJM.N said it would buy the Twinkies-maker in a $5.6 billion deal.
Meta PlatformsMETA.O added 2.1% after a report on Sunday said the firm was working on a new, more powerful artificial-intelligence system.
Advancing issues outnumbered decliners by a 1.68-to-1 ratio on the NYSE and by a 1.35-to-1 ratio on the Nasdaq.
The S&P index recorded 11 new 52-week highs and nine new lows, while the Nasdaq recorded 23 new highs and 122 new lows.
(Reporting by Ankika Biswas, Shreyashi Sanyal and Shubham Batra in Bengaluru; Editing by Arun Koyyur 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. | Shares of other megacaps including Apple AAPL.O, Microsoft MSFT.O and Amazon AMZN.O rose between 0.1% and 2.4%%. A survey by New York Fed showed that Americans' overall views on inflation were little changed in August, as they predicted rising costs for homes and food, while expecting bleaker personal financial health. Wall Street had logged weekly losses on Friday after a recent uptick in oil prices and stronger-than-expected economic data fueled concerns of sticky inflation and interest rates staying higher for longer. | Shares of other megacaps including Apple AAPL.O, Microsoft MSFT.O and Amazon AMZN.O rose between 0.1% and 2.4%%. By Shristi Achar A and Shubham Batra Sept 11 (Reuters) - The S&P 500 and Nasdaq were on course for their best day in two weeks on Monday as Tesla led gains in megacaps, while investors awaited inflation data due later this week for clues on the U.S. Federal Reserve's interest-rate path. Treasury yields inched up on Monday, with yields on 2-year note, considered to best reflect short-term interest rate expectations, hovering around 4.9906%. | Shares of other megacaps including Apple AAPL.O, Microsoft MSFT.O and Amazon AMZN.O rose between 0.1% and 2.4%%. By Shristi Achar A and Shubham Batra Sept 11 (Reuters) - The S&P 500 and Nasdaq were on course for their best day in two weeks on Monday as Tesla led gains in megacaps, while investors awaited inflation data due later this week for clues on the U.S. Federal Reserve's interest-rate path. Wall Street had logged weekly losses on Friday after a recent uptick in oil prices and stronger-than-expected economic data fueled concerns of sticky inflation and interest rates staying higher for longer. | Shares of other megacaps including Apple AAPL.O, Microsoft MSFT.O and Amazon AMZN.O rose between 0.1% and 2.4%%. Tesla TSLA.O jumped 8.7% as Morgan Stanley upgraded it to "overweight" from "equal-weight", saying the EV maker's Dojo supercomputer could boost the company's market value by nearly $600 billion. Investors now await the crucial consumer and producer prices data as well as retail sales numbers due later this week. |
97 | 13,830 | 2023-09-10 00:00:00 UTC | Is Apple a Buy Now? | AAPL | https://www.nasdaq.com/articles/is-apple-a-buy-now | null | null | By virtually every measure, Apple (NASDAQ: AAPL) has been a huge winner for stockholders. In the past five- and 10-year periods, the shares have climbed 217% and 895%, respectively, trouncing the Nasdaq Composite. Investors would have loved to have the tech giant in their portfolios.
What's more, the stock has the approval of famed investor Warren Buffett, whose conglomerate Berkshire Hathaway owns a 5.9% stake in the FAANG stock. He's been a shareholder for over seven years now and has made a killing on the stock
But with a market capitalization of just under $2.8 trillion today, is it smart to buy Apple stock now?
Such a dominant enterprise
It's difficult to understate Apple's dominance. The business makes the most popular hardware products out there, including the revolutionary iPhone, iPad, Watch, MacBook, and AirPods. Currently, more than 2 billion active Apple devices are scattered across the globe, a sign of the company's ubiquity.
Hardware is still Apple's main revenue contributor by far, producing sales of $61 billion in the fiscal 2023 third quarter (ended July 1). And the leadership team remains focused on innovation. The latest upgrade to the iPhone is set to be introduced this month, which will surely draw strong consumer demand.
Consumer electronics companies typically aren't very special on their own. But what has made Apple truly unique is its ability to develop internal software that pairs seamlessly with its various hardware products. This so-called ecosystem is key to understanding why Apple has such tremendous customer loyalty and stickiness.
The services segment comprises software offerings like the App Store, iCloud, Apple Music, Apple TV+, and Apple Pay. This division currently represents about a fourth of overall company sales but has been posting faster growth than hardware. The fact that services also carry a much higher gross margin can be a boon to Apple's long-term profitability potential.
Creating hugely successful hardware and software that exhibits durable demand and pricing power has resulted in a ridiculously pristine balance sheet. Apple generates insane amounts of free cash flow each quarter and currently has a net cash position of $57 billion.
That remarkable financial situation gives Apple tons of optionality to continue investing in game-changing technologies. Apple is reportedly working on an artificial intelligence (AI) chatbot. The business has already announced the Vision Pro, an AR/VR (augmented reality/virtual reality) headset. And there are even rumors that the business is designing an autonomous vehicle. With a fantastic track record of success, it's not easy to bet against Apple.
Hard to see market-beating returns
There are many things to like about this company, but the current valuation isn't one of those factors. Because the shares have performed so well in recent years and are even up 36% in 2023, they are not cheap by any stretch of the imagination. The stock currently trades at a trailing price-to-earnings (P/E) ratio of 29.7. That's much more expensive than the trailing 10-year average P/E multiple of 20.2.
The steep valuation is even more discouraging when you consider Apple's growth prospects. In each of the past three fiscal quarters, the business registered a year-over-year revenue decline. With such a massive sales base and widespread product penetration, the law of large numbers is kicking in, so it's not too surprising to see the gains slow. Wall Street analysts are forecasting just 6% annualized revenue growth between fiscal 2022 and fiscal 2027, a stark contrast to the 11.5% pace posted in the previous five fiscal years.
I don't think anyone in their right mind would doubt that Apple is one of the most successful businesses ever. But based on its current valuation, coupled with limited growth prospects, buying the stock today seems like a poor use of capital.
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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. | By virtually every measure, Apple (NASDAQ: AAPL) has been a huge winner for stockholders. Hardware is still Apple's main revenue contributor by far, producing sales of $61 billion in the fiscal 2023 third quarter (ended July 1). Creating hugely successful hardware and software that exhibits durable demand and pricing power has resulted in a ridiculously pristine balance sheet. | By virtually every measure, Apple (NASDAQ: AAPL) has been a huge winner for stockholders. But based on its current valuation, coupled with limited growth prospects, buying the stock today seems like a poor use of capital. See the 10 stocks *Stock Advisor returns as of August 28, 2023 Neil Patel and his clients have no position in any of the stocks mentioned. | By virtually every measure, Apple (NASDAQ: AAPL) has been a huge winner for stockholders. He's been a shareholder for over seven years now and has made a killing on the stock But with a market capitalization of just under $2.8 trillion today, is it smart to buy Apple stock now? The services segment comprises software offerings like the App Store, iCloud, Apple Music, Apple TV+, and Apple Pay. | By virtually every measure, Apple (NASDAQ: AAPL) has been a huge winner for stockholders. Hardware is still Apple's main revenue contributor by far, producing sales of $61 billion in the fiscal 2023 third quarter (ended July 1). 10 stocks we like better than Apple When our analyst team has a stock tip, it can pay to listen. |
98 | 13,841 | 2023-09-09 00:00:00 UTC | This Warren Buffett Stock Looks Too Good to Pass Up Right Now | AAPL | https://www.nasdaq.com/articles/this-warren-buffett-stock-looks-too-good-to-pass-up-right-now | null | null | The largest position in Warren Buffett's investment portfolio is Apple (NASDAQ: AAPL). The Oracle of Omaha first took a position in the company in 2016. Due to generous returns over the years, Buffett's stake in Apple has ballooned to account for over half of his entire portfolio's value.
So far in 2023 Apple stock is up an impressive 42%. However, after the company's most recent earnings report, investors punished the stock for the company's less-than-stellar results.
While Apple's shrinking revenue is a legitimate concern, I believe the sell-off is overdone. Read on to see my analysis of Apple's earnings, noting both the highlights and lowlights. Moreover, using some valuation techniques, I'll show you why this could be a great opportunity to buy the dip.
What seems to be the problem?
For the three months ended July 1, Apple's revenue declined about 1% year over year to $81.8 billion. Moreover, through the first nine months of the company's fiscal 2023, Apple's revenue is down roughly 3% annually. To add some additional context, during the most recent quarter Apple's revenue shrank across several geographic regions including the Americas and Japan as well as across product segments such as iPhone, iPad, and Mac. These trends showcase that Apple has been struggling to grow its revenue for several consecutive quarters now.
On the bright side, Apple saw meaningful growth in both its wearables and its services businesses. Services generated $21.2 billion in revenue during the quarter, which represented an all-time record.
During theearnings call management pointed out that Apple reached 1 billion paid subscriptions on its services platform. To put this into perspective, Apple told investors that it has doubled the number of paid subscriptions in just the last three years, while adding 150 million new service subscribers over the last year alone.
While it's impressive, perhaps this isn't entirely surprising. During earnings calls, Apple's management typically likes to highlight the company's active install base. Considering that Apple has 2 billion active devices around the globe, it's natural to think consumer engagement with the company's services would improve.
Investors shouldn't overlook this dynamic because even though the company has been challenged when it comes to revenue growth for several quarters now, the underlying trend is that users remain engaged.
For this reason, I do not view Apple's ecosystem as facing any sort of existential risk. Rather, due to lingering inflation and high interest rates, I believe that consumers are acting with more caution and hesitation when it comes to discretionary items such as expensive new hardware. Moreover, as management points out, consistent operational challenges in the supply chain have added an extra layer of headwind as it pertains to growth.
Image source: Getty Images.
How are investors reacting?
The stock market is an interesting place, and equities ebb and flow all the time for any number of reasons. Since the company reported earnings on Aug. 3, Apple stock is down nearly 4%.
AAPL data by YCharts
While this may not seem like a big move, keep in mind that Apple's market capitalization was roughly $3 trillion before its earnings report. Given this math, Apple has lost well over $100 billion in value since its mixed earnings report.
Should you buy the stock?
Sure, Apple's shrinking revenue base is a big deal. However, obsessing over this fact is not entirely productive, considering the company's massive install base and the parallel growth of its services business.
Given the current macroeconomic picture, I believe that most consumers are opting to pass on new hardware upgrades at the moment. But with that said, variables such as inflation and interest rates will not go up in perpetuity.
While the current state of the consumer is cloudy, current actions from the Federal Reserve are aimed at improving the state of the economy. For this reason, consumer purchasing power should rise in the long term, and companies such as Apple could benefit greatly from an influx of demand. Given this outlook, I believe that the sell-off in Apple stock is an overreaction and now is a great opportunity to lower your cost basis in 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. | AAPL data by YCharts While this may not seem like a big move, keep in mind that Apple's market capitalization was roughly $3 trillion before its earnings report. The largest position in Warren Buffett's investment portfolio is Apple (NASDAQ: AAPL). To add some additional context, during the most recent quarter Apple's revenue shrank across several geographic regions including the Americas and Japan as well as across product segments such as iPhone, iPad, and Mac. | The largest position in Warren Buffett's investment portfolio is Apple (NASDAQ: AAPL). AAPL data by YCharts While this may not seem like a big move, keep in mind that Apple's market capitalization was roughly $3 trillion before its earnings report. During theearnings call management pointed out that Apple reached 1 billion paid subscriptions on its services platform. | The largest position in Warren Buffett's investment portfolio is Apple (NASDAQ: AAPL). AAPL data by YCharts While this may not seem like a big move, keep in mind that Apple's market capitalization was roughly $3 trillion before its earnings report. Since the company reported earnings on Aug. 3, Apple stock is down nearly 4%. | The largest position in Warren Buffett's investment portfolio is Apple (NASDAQ: AAPL). AAPL data by YCharts While this may not seem like a big move, keep in mind that Apple's market capitalization was roughly $3 trillion before its earnings report. Investors shouldn't overlook this dynamic because even though the company has been challenged when it comes to revenue growth for several quarters now, the underlying trend is that users remain engaged. |
99 | 13,854 | 2023-09-08 00:00:00 UTC | Wall Street sees small hit to Apple's revenue from China's iPhone curbs | AAPL | https://www.nasdaq.com/articles/wall-street-sees-small-hit-to-apples-revenue-from-chinas-iphone-curbs | null | null | By Aniruddha Ghosh
Sept 8 (Reuters) - Apple Inc's AAPL.O revenue may take a small hit this year from China's recent move to curb the use of iPhones by state employees, Wall Street analysts said on Friday.
Apple shares tumbled 6.4% over the last two days, wiping $190 billion from its market capitalisation, following news Beijing ordered some central government employees in recent weeks to stop using iPhones at work.
Morgan Stanley analyst Erik W Woodring said Apple's share losses were "overdone" as he does not believe the curbs will lead to something broader. He added the worst case scenario was a 4% revenue hit and a 3% earning impact for the company.
"China is critical to Apple's success, but Apple is also critical to the Chinese economy. While the potential for a broad decoupling between Apple and China in this multipolar world clearly exists, we don't believe recent headlines are necessarily foreshadowing this 'worst case' scenario," Woodring said.
BofA Global Research estimated a headwind of around 5 million to 10 million iPhone units if China were to enforce the ban and added the impact would be higher if the phones get banned from being carried into official workplaces.
Beijing's move coincides with Apple's rival Huawei Technologies [RIC:RIC:HWT.UL] recently launching its Mate 60 Pro 5G smartphone. Analysts said U.S. sanctions on Huawei, in place since May 2019, hit the company's supply chain, helping Apple increase iPhone shipments to China and grab market share.
J.P.Morgan said China's restrictions will make it tougher for Apple to continue to gain market share in China. BofA estimated a $0.11 to $0.34 earnings per share hit to Apple if Huawei was able to gain market share from the iPhone maker.
(Reporting by Aniruddha Ghosh in Bengaluru; Editing by Krishna Chandra Eluri)
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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. | By Aniruddha Ghosh Sept 8 (Reuters) - Apple Inc's AAPL.O revenue may take a small hit this year from China's recent move to curb the use of iPhones by state employees, Wall Street analysts said on Friday. Apple shares tumbled 6.4% over the last two days, wiping $190 billion from its market capitalisation, following news Beijing ordered some central government employees in recent weeks to stop using iPhones at work. Analysts said U.S. sanctions on Huawei, in place since May 2019, hit the company's supply chain, helping Apple increase iPhone shipments to China and grab market share. | By Aniruddha Ghosh Sept 8 (Reuters) - Apple Inc's AAPL.O revenue may take a small hit this year from China's recent move to curb the use of iPhones by state employees, Wall Street analysts said on Friday. He added the worst case scenario was a 4% revenue hit and a 3% earning impact for the company. Beijing's move coincides with Apple's rival Huawei Technologies [RIC:RIC:HWT.UL] recently launching its Mate 60 Pro 5G smartphone. | By Aniruddha Ghosh Sept 8 (Reuters) - Apple Inc's AAPL.O revenue may take a small hit this year from China's recent move to curb the use of iPhones by state employees, Wall Street analysts said on Friday. Analysts said U.S. sanctions on Huawei, in place since May 2019, hit the company's supply chain, helping Apple increase iPhone shipments to China and grab market share. BofA estimated a $0.11 to $0.34 earnings per share hit to Apple if Huawei was able to gain market share from the iPhone maker. | By Aniruddha Ghosh Sept 8 (Reuters) - Apple Inc's AAPL.O revenue may take a small hit this year from China's recent move to curb the use of iPhones by state employees, Wall Street analysts said on Friday. Apple shares tumbled 6.4% over the last two days, wiping $190 billion from its market capitalisation, following news Beijing ordered some central government employees in recent weeks to stop using iPhones at work. He added the worst case scenario was a 4% revenue hit and a 3% earning impact for the company. |
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