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12100.0
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2023-12-13 00:00:00 UTC
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Meet the 1 Stock Warren Buffett Is Virtually Guaranteed to Be Buying Throughout 2024
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AAPL
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https://www.nasdaq.com/articles/meet-the-1-stock-warren-buffett-is-virtually-guaranteed-to-be-buying-throughout-2024
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For the better part of the past six decades, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett has been running circles around Wall Street. The Oracle of Omaha, as he's affably known, has overseen a nearly 20% annualized return in his company's Class A shares (BRK.A) since taking the CEO role in the mid-1960s. On an aggregate basis, we're talking about a gain of 4,355,584%, as of the closing bell on Dec. 8.
When you double up the annualized total return of the benchmark S&P 500 over nearly 60 years, you're going to get noticed. It's why professional and everyday investors closely monitor Berkshire Hathaway's quarterly 13F filings to uncover which stocks the Oracle of Omaha and his team of investors have been buying and selling.
As we prepare to close the curtain on 2023 in roughly two weeks, it's readily apparent that one highly regarded stock is a virtual lock to be purchased by Warren Buffett throughout 2024.
Image source: The Motley Fool.
Buffett and his team are piling into some familiar names
A quick look at Berkshire Hathaway's 13Fs over the past couple of years reveal some popular names that Buffett and his investing lieutenants, Todd Combs and Ted Weschler, have piled into.
Tech stock Apple (NASDAQ: AAPL) is an ideal example of a great business that Buffett and his aides have the utmost faith in. Apple accounts for nearly half of Berkshire's $365.5 billion investment portfolio.
Since opening a position in Apple during the first quarter of 2016, Buffett and his team have added to their stake on numerous occasions. In fact, Buffett stated during Berkshire's annual shareholder meeting in May that Apple is "a better business than any we own." It's an incredibly strong statement, given that Berkshire owns well-regarded insurer GEICO and highly successful railroad BNSF, among roughly five dozen other businesses.
Buffett's belief that Apple is Berkshire's best business likely has to do with the company's innovation-driven operating model. It's consistently No. 1 in U.S. smartphone market share, and it has a loyal base of consumers that were drawn in by its physical products (iPhone, Mac, and iPad). To boot, CEO Tim Cook is overseeing a natural evolution of the company's operating model that will have Apple focused on higher-margin subscription services.
The Oracle of Omaha is also, undoubtedly, a huge fan of Apple's capital-return program. The largest publicly traded company by market cap in the U.S. is returning $15 billion a year to shareholders via its dividend, and it's repurchased more than $600 billion worth of its common stock since the start of 2013. These buybacks are increasing Berkshire's stake in Apple without Buffett or his "lieutenants" having to lift a finger.
Another familiar name Warren Buffett and his team have been piling into is energy stock Occidental Petroleum (NYSE: OXY). Since the start of 2022, Berkshire Hathaway has added more than 228 million common shares of Occidental. This is on top of the $10 billion in preferred stock in Occidental (yielding 8%) Buffett's company received in 2019.
Having close to $13 billion invested in Occidental common stock is a pretty clear indication that Buffett and his closest investing confidants believe the spot price of oil will remain elevated or head even higher. Russia's ongoing war with Ukraine, along with multiple years of reduced capital investment by energy majors because of the COVID-19 pandemic, has led to tight oil supply worldwide. Anytime the supply of a major commodity is constrained, there's a good likelihood the price of said commodity will increase.
What's noteworthy about Occidental Petroleum compared to other integrated oil and gas operators is that it generates most of its revenue from its drilling operations. This is to say that its operating performance is considerably more sensitive to changes in the spot price of crude oil than other integrated energy companies. If the spot price of crude oil remains high, Occidental will disproportionately benefit from it.
Image source: Getty Images.
Meet the one stock Warren Buffett is virtually guaranteed to buy in 2024
Over the past two years, Apple and Occidental Petroleum have been regularly purchased stocks for Buffett and his team. But if I had to wager on which stock is likeliest to be bought by Warren Buffett in 2024, neither of these two companies would top the list.
Interestingly enough, the stock Warren Buffett is virtually guaranteed to buy in 2024 isn't going to be found on Berkshire Hathaway's quarterly 13Fs. Instead, you'll find evidence of these purchases toward the tail end of the company's quarterly operating results. That's right -- the company that's a practical lock to be bought by Buffett in 2024 is... Berkshire Hathaway.
Prior to July 17, 2018, Berkshire Hathaway had a share repurchase policy in place that only allowed for buybacks if Berkshire's stock fell to or below 120% of book value (i.e., no more than 20% above stated book value). At no point for well over a half-decade prior to this date did Berkshire Hathaway's stock reach this threshold. As a result, Buffett was never able to pull the trigger on any buybacks.
On July 17, 2018, Berkshire's board passed new measures that allowed its dynamic duo -- Warren Buffett and the late, great Charlie Munger -- to get off the proverbial bench and repurchase their company's stock more frequently. In order for buybacks to take place:
Berkshire Hathaway needed to have at least $30 billion in combined cash, cash equivalents, and U.S. Treasuries on its balance sheet; and
Warren Buffett and Charlie Munger needed to agree that Berkshire's stock was intrinsically cheap.
Admittedly, I'm not entirely certain who, if anyone, will step in and play the sidekick role to Warren Buffett when it comes to share repurchases moving forward. What I do know is that the Oracle of Omaha has overseen the repurchase of more than $72 billion worth of Berkshire Hathaway stock since July 2018. Further, Buffett has bought back his own company's stock for 21 consecutive quarters, through September 2023.
As of the end of the most recent quarter, Berkshire's cash position ballooned to an all-time record $157.2 billion. With little in the way of value tickling the fancy of Buffett, Weschler, or Combs, it's a virtual guarantee that at least some of this cash will be deployed to repurchase Berkshire's common stock in 2024.
To add, Berkshire Hathaway doesn't pay a dividend. The way Buffett regularly rewards his long-term shareholders is through buybacks. Reducing the number of outstanding shares over time should increase the ownership stakes of Berkshire's shareholders, much in the same way that Apple's buyback program has grown Berkshire's stake in the company.
Furthermore, reducing the outstanding share count of a company with steady or growing net income can increase earnings per share (EPS) over time. This helps Berkshire Hathaway become even more fundamentally attractive to value-seeking investors.
Should you invest $1,000 in Berkshire Hathaway right now?
Before you buy stock in Berkshire Hathaway, consider this:
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Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tech stock Apple (NASDAQ: AAPL) is an ideal example of a great business that Buffett and his aides have the utmost faith in. As we prepare to close the curtain on 2023 in roughly two weeks, it's readily apparent that one highly regarded stock is a virtual lock to be purchased by Warren Buffett throughout 2024. Russia's ongoing war with Ukraine, along with multiple years of reduced capital investment by energy majors because of the COVID-19 pandemic, has led to tight oil supply worldwide.
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Tech stock Apple (NASDAQ: AAPL) is an ideal example of a great business that Buffett and his aides have the utmost faith in. Meet the one stock Warren Buffett is virtually guaranteed to buy in 2024 Over the past two years, Apple and Occidental Petroleum have been regularly purchased stocks for Buffett and his team. Prior to July 17, 2018, Berkshire Hathaway had a share repurchase policy in place that only allowed for buybacks if Berkshire's stock fell to or below 120% of book value (i.e., no more than 20% above stated book value).
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Tech stock Apple (NASDAQ: AAPL) is an ideal example of a great business that Buffett and his aides have the utmost faith in. Meet the one stock Warren Buffett is virtually guaranteed to buy in 2024 Over the past two years, Apple and Occidental Petroleum have been regularly purchased stocks for Buffett and his team. In order for buybacks to take place: Berkshire Hathaway needed to have at least $30 billion in combined cash, cash equivalents, and U.S. Treasuries on its balance sheet; and Warren Buffett and Charlie Munger needed to agree that Berkshire's stock was intrinsically cheap.
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Tech stock Apple (NASDAQ: AAPL) is an ideal example of a great business that Buffett and his aides have the utmost faith in. Meet the one stock Warren Buffett is virtually guaranteed to buy in 2024 Over the past two years, Apple and Occidental Petroleum have been regularly purchased stocks for Buffett and his team. Should you invest $1,000 in Berkshire Hathaway right now?
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12101.0
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2023-12-13 00:00:00 UTC
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MSFT vs. AAPL: Which Stock Has More AI Upside Potential?
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AAPL
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https://www.nasdaq.com/articles/msft-vs.-aapl%3A-which-stock-has-more-ai-upside-potential
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nan
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nan
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Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) are old-time rivals that have continued their dominance many decades later, from the rise of the personal computer to the modern and rapidly advancing age of artificial intelligence (AI). Indeed, Microsoft and Apple are two tech titans that prove there are some firms out there that can keep on growing into old age. To do so, continuous reinvention by means of disruptive innovation and smart business practices have been key areas.
As we move into 2024, the main question is which tech behemoth has more AI upside. Indeed, Microsoft was/is the AI stock to own for 2023, with its exposure to ChatGPT-owner OpenAI and its new AI offerings that are released frequently, enough to keep rivals on their toes.
Though Apple has been busy with AI, incorporating it into new features (the smarter AutoCorrect in the latest iOS update), it's unknown when the company will have its own generative AI or large language model (LLM) to stack up with the growing list of competing offerings, including ChatGPT, Claude, and more.
In any case, I remain bullish on both Magnificent Seven companies heading into 2024, a year that's sure to be full of AI surprises.
The Pace of Innovation at Microsoft Has Got to Be Intimidating for AI Rivals
In recent months, Microsoft has been busy rolling out its Copilot AI across its software. Thus far, Wall Street has been absolutely loving it, rewarding shares of MSFT with enough gains to hit a new all-time high recently, just shy of $385 per share.
More recently, Microsoft stated its new AI model named Phi-2 is more capable than that of its rivals, specifically in logic-related tasks like programming and mathematics. Indeed, it seems like there's some new AI model launching every couple of weeks that's able to put the existing ones to shame. That may very well be the pace of innovation we'll come to expect in the new year as firms look to advance in what can only be described as an AI war.
Microsoft is a $2.8 trillion enterprise behemoth that is moving remarkably fast with AI -- but in a way (hopefully) as to not break things.
Meanwhile, Apple has been content sitting mostly on the sidelines when it comes to its latest and greatest AI technologies. Just because it's tighter-lipped doesn't mean it's "behind" in the AI race. For now, it's hard to tell what Apple has in store for 2024 on the AI front as it looks to launch its very first spatial computer in the Apple Vision Pro. It's hard to ignore the buzz surrounding potential AI endeavors going on behind the scenes, though.
Is MSFT Stock a Buy, According to Analysts?
On TipRanks, MSFT stock comes in as a Strong Buy. Out of 37 analyst ratings, there are 36 Buys and one Hold recommendation. The average MSFT stock price target is $421.79, implying upside potential of 15.3%. Analyst price targets range from a low of $375.00 per share to a high of $475.00 per share.
Is Apple Ready to Make an AI Splash in 2024? Analysts' Opinions Vary
Apple analyst Min-Chi Kuo, a man who's been spot on with past Apple predictions, sees the iPhone maker spending $4.75 billion on AI servers in 2024. That's a big bet on the future of AI. That said, Kuo doesn't believe Apple will launch a generative AI model in the new year.
Morgan Stanley (NYSE:MS) views Apple as one of the firms that are poised to benefit greatly from AI once it goes mainstream, going as far as to call it "an AI enabler." The investment firm sees Apple becoming one of the winners in the realm of "edge AI" as soon as early 2024.
What exactly is edge AI? Imagine having powerful AI models on your own device (think your iPhone) that don't require you to rely so heavily on the cloud. Profoundly powerful machine learning (ML) algorithms may very well be in the palm of your hand rather than on some remote server. Indeed, the concept is quite profound and could mark the next step in the world of AI.
Only time will tell how the next chapter of the AI story unfolds. Regardless, it's an exciting subsegment of AI that could put Apple at or around the front of the AI race at some point in the future. Whether the move is in 2024 or 2030, I believe Morgan Stanley is right on the money when it says Apple is one of the bigger beneficiaries of AI.
Indeed, it's hard to tell exactly where Apple stands with its AI strategy. As always, we'll probably have to wait until CEO Tim Cook is ready to announce before we can know with 100% certainty what the Cupertino-based giant is really up to and where it stands on the front of various technologies.
Is AAPL Stock a Buy, According to Analysts?
On TipRanks, AAPL stock comes in as a Strong Buy. Out of 33 analyst ratings, there are 25 Buys and eight Hold recommendations. The average AAPL stock price target is $203.70, implying upside potential of 2.8%. Analyst price targets range from a low of $150.00 per share to a high of $240.00 per share.
Bottom Line: Apple Stock Could Have More AI Upside From Here
I think Microsoft stock's upside may be limited as it's pretty common knowledge that it's an AI leader at this juncture. The stock goes for 36.3 times trailing price-to-earnings (P/E), notably above Apple's 31.8 times trailing P/E multiple. If edge AI is the next stepping stone, I'd not be shocked if Apple ends up closing the valuation gap with its long-time rival.
For now, Wall Street loves both companies but expects a bit more upside from Microsoft (15.3% vs. 2.8%). Nonetheless, expect average price targets to shift drastically as new developments arise from both firms on the front of AI.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) are old-time rivals that have continued their dominance many decades later, from the rise of the personal computer to the modern and rapidly advancing age of artificial intelligence (AI). Is AAPL Stock a Buy, According to Analysts? On TipRanks, AAPL stock comes in as a Strong Buy.
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Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) are old-time rivals that have continued their dominance many decades later, from the rise of the personal computer to the modern and rapidly advancing age of artificial intelligence (AI). The average AAPL stock price target is $203.70, implying upside potential of 2.8%. Is AAPL Stock a Buy, According to Analysts?
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Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) are old-time rivals that have continued their dominance many decades later, from the rise of the personal computer to the modern and rapidly advancing age of artificial intelligence (AI). Is AAPL Stock a Buy, According to Analysts? On TipRanks, AAPL stock comes in as a Strong Buy.
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Is AAPL Stock a Buy, According to Analysts? Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) are old-time rivals that have continued their dominance many decades later, from the rise of the personal computer to the modern and rapidly advancing age of artificial intelligence (AI). On TipRanks, AAPL stock comes in as a Strong Buy.
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12102.0
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2023-12-12 00:00:00 UTC
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5 Best-Performing Technology ETFs of 2023
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AAPL
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https://www.nasdaq.com/articles/5-best-performing-technology-etfs-of-2023
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nan
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nan
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Technology has turned out to be the most profitable sector in 2023, driven by the artificial intelligence (AI) boom, easing inflation, a surge in “Magnificent Seven” stocks and a crypto rally. Additionally, bets that the Fed’s aggressive interest rate hiking campaign might be nearing an end powered the rally in the sector in recent weeks.
Together, the seven stocks — Apple AAPL, Microsoft MSFT, Alphabet GOOG, Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms (META) — are up around 70% this year. Meanwhile, bitcoin, the world's largest cryptocurrency, soared more than 150% this year and surged past the $42,000 mark for the first time since April 2022 before retreating to near 40,000 levels. The massive rally came on the back of broad Enthusiasm about U.S. interest rate cuts and the imminent regulatory approval for Bitcoin ETFs (read: Bitcoin Reaches $42,000: 5 ETFs More Than Double in 2023).
Given the broad-based rally across sectors, we have highlighted five best-performing ETFs from different industries that have made technology the best performer. These are VanEck Vectors Digital Transformation ETF DAPP, Valkyrie Bitcoin Miners ETF WGMI, ARK Next Generation Internet ETF (ARKW), VanEck Vectors Semiconductor ETF SMH and SPDR NYSE Technology ETF XNTK.
More Rally Ahead?
Finally, the Fed, in the latest FOMC meeting, hinted at three rate cuts for the next year while keeping the rates steady for this year. The central bank will cut rates by 75 bps next year, up from the previous forecast of two rate cuts in 2024. Markets are now pricing in a nearly 60% chance that the Fed will begin to cut rates in its March meeting, up from 40% the day prior, per data from the CME Group.
As the tech sector relies on borrowing for superior growth, it is cheaper to borrow more money for initiatives when interest rates are low. The reductions in interest rates, coupled with the ongoing rise of AI, will act as a major tailwind for the next year. Higher spending across the software, semiconductors, and digital media consumer sectors will provide a further boost to the sector.
The expansion of AI applications holds the promise of ushering in fresh opportunities for growth within the sector. The global digital shift has accelerated e-commerce for everything, ranging from remote working to entertainment and shopping, thereby bolstering strength in the sector. The rapid adoption of cloud computing, big data, the Internet of Things, wearables, VR headsets, drones, virtual reality, machine learning, digital communication, blockchain and 5G technology will continue to fuel a rally.
Further, the tech titans have strong balance sheets, durable revenue streams and robust profit margins, making them attractive investments. They are better positioned to withstand a possible economic downturn and have demonstrated improved cost discipline.
VanEck Vectors Digital Transformation ETF (DAPP) – Up 191.8%
VanEck Vectors Digital Transformation ETF aims to offer exposure to companies that are at the forefront of digital asset transformation, such as digital asset exchanges, payment gateways, digital asset mining operations, software services, equipment and technology or services to the digital asset operations, digital asset infrastructure businesses or companies facilitating commerce with the use of digital assets. VanEck Vectors Digital Transformation ETF tracks the MVIS Global Digital Assets Equity Index and holds 22 securities in its basket. It charges 50 bps in annual fees and has accumulated $64.3 million in its asset base.
Valkyrie Bitcoin Miners ETF (WGMI) – Up 190.8%
Valkyrie Bitcoin Miners ETF is an actively managed ETF that invests at least 80% of its net assets (plus borrowings for investment purposes) in securities of companies that derive at least 50% of their revenues or profits from bitcoin mining operations and from providing specialized chips, hardware and software or other services to companies engaged in bitcoin mining. Valkyrie Bitcoin Miners ETF holds 22 stocks in its basket, with a double-digit concentration on the top four firms. It has amassed $33 million in its asset base and charges 75 bps in annual fees.
ARK Next Generation Internet ETF (ARKW) – Up 84.5%
ARK Next Generation Internet ETF is an actively managed fund focusing on companies expected to benefit from the shift in technology infrastructure to the cloud, enabling mobile, new and local services. The fund holds 35 stocks in its basket. ARK Next Generation Internet ETF has amassed $1.6 billion in its asset base and charges 88 bps in annual fees (read: 5 Tech ETFs That Outperformed XLK in the Past Week).
VanEck Vectors Semiconductor ETF (SMH) – Up 65.7%
VanEck Vectors Semiconductor ETF offers exposure to the companies involved in semiconductor production and equipment. SMH follows the MVIS US Listed Semiconductor 25 Index, which measures the overall performance of companies involved in semiconductor production and equipment. VanEck Vectors Semiconductor ETF holds 26 stocks in its basket. SMH has managed assets worth $10.9 billion and charges 35 bps in annual fees and expenses. It has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook (read: Semiconductors Lead Decade's Top Gainers: 3 ETFs Up At Least 550%).
SPDR NYSE Technology ETF (XNTK) – Up 64.8%
SPDR NYSE Technology ETF provides exposure to 35 leading U.S.-listed technology-related companies by tracking the NYSE Technology Index. Semiconductors take the largest share at 26%, while systems software, application software, application Software and broadline retail round off the next four spots. SPDR NYSE Technology ETF has amassed $625.1 million and charges 35 bps in annual fees.
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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.
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Together, the seven stocks — Apple AAPL, Microsoft MSFT, Alphabet GOOG, Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms (META) — are up around 70% this year. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports To read this article on Zacks.com click here. Technology has turned out to be the most profitable sector in 2023, driven by the artificial intelligence (AI) boom, easing inflation, a surge in “Magnificent Seven” stocks and a crypto rally.
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Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports To read this article on Zacks.com click here. Together, the seven stocks — Apple AAPL, Microsoft MSFT, Alphabet GOOG, Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms (META) — are up around 70% this year. These are VanEck Vectors Digital Transformation ETF DAPP, Valkyrie Bitcoin Miners ETF WGMI, ARK Next Generation Internet ETF (ARKW), VanEck Vectors Semiconductor ETF SMH and SPDR NYSE Technology ETF XNTK.
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Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports To read this article on Zacks.com click here. Together, the seven stocks — Apple AAPL, Microsoft MSFT, Alphabet GOOG, Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms (META) — are up around 70% this year. These are VanEck Vectors Digital Transformation ETF DAPP, Valkyrie Bitcoin Miners ETF WGMI, ARK Next Generation Internet ETF (ARKW), VanEck Vectors Semiconductor ETF SMH and SPDR NYSE Technology ETF XNTK.
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Together, the seven stocks — Apple AAPL, Microsoft MSFT, Alphabet GOOG, Amazon AMZN, Nvidia NVDA, Tesla TSLA and Meta Platforms (META) — are up around 70% this year. Click to get this free report Alphabet Inc. (GOOG) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports SPDR NYSE Technology ETF (XNTK): ETF Research Reports VanEck Digital Transformation ETF (DAPP): ETF Research Reports Valkyrie Bitcoin Miners ETF (WGMI): ETF Research Reports To read this article on Zacks.com click here. These are VanEck Vectors Digital Transformation ETF DAPP, Valkyrie Bitcoin Miners ETF WGMI, ARK Next Generation Internet ETF (ARKW), VanEck Vectors Semiconductor ETF SMH and SPDR NYSE Technology ETF XNTK.
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12103.0
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2023-12-12 00:00:00 UTC
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Jabil's quarterly profit beats estimates as cost cutting measures takeoff
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AAPL
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https://www.nasdaq.com/articles/jabils-quarterly-profit-beats-estimates-as-cost-cutting-measures-takeoff
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nan
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nan
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Updates share movement in paragraph 2
Dec 14 (Reuters) - Jabil JBL.N reported core quarterly profit slightly above Wall Street estimates on Thursday, as the electronic components maker turned its focus on cutting costs to navigate weak demand in a tough economy.
Shares of the St. Petersburg, Florida-based company rose 5.3% in early morning trade.
The company said in October it plans to reduce its workforce across selling, general and administrative cost bases.
Jabil on Thursday said its second-quarter operating income is likely to see an impact of between $75 million and $100 million impact due to restructuring, severance and related charges.
On an adjusted basis, the company earned $2.60 per share in the quarter ended Nov.30, compared with estimates of $2.58 per share, according to LSEG data.
"We experienced a broad-based softening in demand during the final stretch of our first quarter," said CEO Kenny Wilson.
"Despite softer demand, the team delivered good year-over-year growth in core margins and core earnings per share," he added.
First-quarter revenue of $8.4 billion was also largely in-line with estimates of $8.35 billion.
The company's consumer, digital print, retail and point-on-sale markets have been facing a supply glut as end-demand remains weak. As a result, customers are delaying or trimming fresh orders, hurting Jabil, which counts Apple AAPL.O as its largest customer.
However, Jabil in September said it expects growth in sectors such as clean energy infrastructure and artificial intelligence data centers.
Global transition to EVs is also expected to drive over 20% growth in automotive and transport segment revenue in fiscal 2024.
The company's second-quarter revenue and core profit forecasts were also largely in line with analysts' expectations.
Jabil joins the S&P 500 index .SPX on Dec. 18 after markets open.
(Reporting by Priyanka G; Editing by Shailesh Kuber)
((Priyanka.G@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As a result, customers are delaying or trimming fresh orders, hurting Jabil, which counts Apple AAPL.O as its largest customer. Updates share movement in paragraph 2 Dec 14 (Reuters) - Jabil JBL.N reported core quarterly profit slightly above Wall Street estimates on Thursday, as the electronic components maker turned its focus on cutting costs to navigate weak demand in a tough economy. The company's consumer, digital print, retail and point-on-sale markets have been facing a supply glut as end-demand remains weak.
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As a result, customers are delaying or trimming fresh orders, hurting Jabil, which counts Apple AAPL.O as its largest customer. Updates share movement in paragraph 2 Dec 14 (Reuters) - Jabil JBL.N reported core quarterly profit slightly above Wall Street estimates on Thursday, as the electronic components maker turned its focus on cutting costs to navigate weak demand in a tough economy. "Despite softer demand, the team delivered good year-over-year growth in core margins and core earnings per share," he added.
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As a result, customers are delaying or trimming fresh orders, hurting Jabil, which counts Apple AAPL.O as its largest customer. Updates share movement in paragraph 2 Dec 14 (Reuters) - Jabil JBL.N reported core quarterly profit slightly above Wall Street estimates on Thursday, as the electronic components maker turned its focus on cutting costs to navigate weak demand in a tough economy. On an adjusted basis, the company earned $2.60 per share in the quarter ended Nov.30, compared with estimates of $2.58 per share, according to LSEG data.
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As a result, customers are delaying or trimming fresh orders, hurting Jabil, which counts Apple AAPL.O as its largest customer. On an adjusted basis, the company earned $2.60 per share in the quarter ended Nov.30, compared with estimates of $2.58 per share, according to LSEG data. "Despite softer demand, the team delivered good year-over-year growth in core margins and core earnings per share," he added.
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12104.0
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2023-12-12 00:00:00 UTC
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Market Misfits: 3 Beaten-Down Stocks Poised for a 2024 Comeback
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AAPL
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https://www.nasdaq.com/articles/market-misfits%3A-3-beaten-down-stocks-poised-for-a-2024-comeback
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The stock market is closing in on its all-time high. The S&P 500 is up over 20% in 2023, with less than three weeks to go in the year. Yet those gains were not distributed equally. Three beaten-down stock picks are ready for a rebound in 2024.
For a good part of the year, virtually all of the broad market index’s gains were due to just seven stocks: Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). These were the so-called Magnificent 7. Without them, the popular index would be flat.
Because the S&P 500 is a weighted index, these stocks’ heavy footprint causes an undue influence on the whole. Several companies were even beaten down this year for good or ill. Whatever the reason for their fall, they remain good businesses with excellent long-term growth prospects.
Dollar General (DG)
Source: Jonathan Weiss / Shutterstock.com
Deep discount chain Dollar General (NYSE:DG) should be in its prime. A sagging economy weighed down by inflation and high interest rates ought to have consumers flocking to its stores to save money. Instead, they’ve avoided the dollar store and headed to Walmart (NYSE:WMT).
Dollar General’s problems come from misreading consumer demand. When people were flush with government stimulus checks from the pandemic, they bought up consumables left and right. The deep discounter apparently thought that was the new norm and overstocked on such goods. Yet today’s high cost of living has consumers shopping primarily for basics and everyday essentials, so they’ve turned to Walmart.
While the dollar store has held the line on pricing, it hurt profit margins. That’s not a bad strategy to lure customers in, but it exacerbated the problem of having the wrong products on its shelves. It suffers from falling sales and narrowing margins. Today, Dollar General is correcting course. It shed the excess inventory and is focusing on essential goods. It also brought back former CEO Todd Vasos, who oversaw Dollar General’s decade-long rise, to oversee the reversal.
Although the retailer is nominally a dollar store, most products it sells are above that price point. That’s okay, too, because it allows the retailer to offer customers a broader selection of higher-quality products. Having realized the problem and taken corrective action, expect Dollar General to come roaring back next year.
Occidental Petroleum (OXY)
Source: Pavel Kapysh / Shutterstock.com
Oil prices are down from their pandemic highs even though what you’re paying at the pump is still historically high. But that’s helping depress Occidental Petroleum‘s (NYSE:OXY) stock, down almost 12% this year.
It’s also doing itself no favors by jumping on the industry consolidation trend underway. Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) both announced multi-billion-dollar acquisitions in recent weeks, and now Occidental is spending $12 billion on privately held CrownRock. It will make Occidental Petroleum the second biggest producer in the Permian basin behind Exxon.
But Occidental is taking on debt to fund its all-cash deal. It already had $18.5 billion in long-term debt due to its previous acquisition of Anadarko Petroleum and now will add another $9.1 billion worth. It’s also issuing $1.7 billion in stock. The market is concerned because the oil stock’s cash position has been whittled away, and at the end of September, Occidental had $611 million in the bank.
Still, Occidental says the deal will increase free cash flow to $1 billion in the first year of the transaction if oil is at $70 a barrel. West Texas Intermediate currently trades just under that threshold. Warren Buffett took a 25% stake in Occidental stock because of its position in the Permian. This deal only solidifies it. Look for the market to eventually come around to the oil producer’s thinking and send its shares higher accordingly.
Alibaba (BABA)
Source: Shutterstock
Chinese online retailer Alibaba (NYSE:BABA) went in the opposite direction of the S&P 500. Its shares are down almost 20% this year, though it’s been a roller coaster ride. The latest dip in price that began in August resulted from new U.S. export control regulations. It limits China’s access to U.S. chip technology, particularly in artificial intelligence (AI) and supercomputing. Controls on computer equipment are also imposed.
Although Alibaba had planned to split into six separate companies, the export controls put the separation of its cloud services on hold. Alibaba said it will retain the business because “these new restrictions may materially and adversely affect Cloud Intelligence Group’s ability to offer products and services and perform under existing contracts, thereby negatively affecting our results of operations and financial condition.”
Alibaba is still growing, albeit at slower rates, and is still incredibly profitable. The crackdown on tech companies like the e-commerce giant by Beijing is largely over. And though China no longer appears on the verge of overtaking the U.S. economy as the world’s largest, it can still expand considerably, a bullish catalyst for the e-tailer.
With the decline in BABA stock, a downdraft in valuation followed. Alibaba trades at less than eight times next year’s earnings when Wall Street forecasts it will grow profits at a 12% clip long-term. That’s orders of magnitude larger than it grew over the past five years. That makes Alibaba a cheap, beaten-down stock primed for growth next year and beyond.
On the date of publication, Rich Duprey held a LONG position in XOM and CVX 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 post Market Misfits: 3 Beaten-Down Stocks Poised for a 2024 Comeback 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.
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For a good part of the year, virtually all of the broad market index’s gains were due to just seven stocks: Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). Yet today’s high cost of living has consumers shopping primarily for basics and everyday essentials, so they’ve turned to Walmart. And though China no longer appears on the verge of overtaking the U.S. economy as the world’s largest, it can still expand considerably, a bullish catalyst for the e-tailer.
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For a good part of the year, virtually all of the broad market index’s gains were due to just seven stocks: Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips The stock market is closing in on its all-time high. Dollar General (DG) Source: Jonathan Weiss / Shutterstock.com Deep discount chain Dollar General (NYSE:DG) should be in its prime.
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For a good part of the year, virtually all of the broad market index’s gains were due to just seven stocks: Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips The stock market is closing in on its all-time high. But that’s helping depress Occidental Petroleum‘s (NYSE:OXY) stock, down almost 12% this year.
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For a good part of the year, virtually all of the broad market index’s gains were due to just seven stocks: Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips The stock market is closing in on its all-time high. That makes Alibaba a cheap, beaten-down stock primed for growth next year and beyond.
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12105.0
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2023-12-12 00:00:00 UTC
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Intel says dozens of PC makers are using its new AI-enabled chip
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AAPL
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https://www.nasdaq.com/articles/intel-says-dozens-of-pc-makers-are-using-its-new-ai-enabled-chip
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nan
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nan
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By Stephen Nellis
Dec 14 (Reuters) - Intel INTC.O on Thursday said that dozens of personal computer makers are using its newest chip, as the company and its customers try to entice consumers to upgrade their machines for a new era of chatbots.
At a press event in New York, Intel said the new offering will be available in laptops from Dell Technologies DELL.N, Microsoft MSFT.O, Lenovo Group 0992.HK and others that will go on sale on Thursday at Best Buy BBY.N in the U.S. and other global retailers including China's JD.com 9618.HK and Australia's Harvey Norman HVN.AX.
Intel shares rose as much as 3.6% after the news.
Intel's central processor units (CPUs) have long served as the brains of most personal computers. But the new chip that went by the code name "Meteor Lake" is Intel's first that will also contain what is called an neural processing unit (NPU), a section of the chip dedicated to handling artificial intelligence tasks.
Intel's pitch to consumers and businesses comes as it is fighting its way out of a post-pandemic PC slump where buyers who upgraded to work from home in 2020 have seen little reason to buy new equipment.
Intel Chief Executive Pat Gelsinger said during the event that Intel believes using its chips will make AI services cheaper, faster and more private than using services based in cloud data centers.
"That will be the star of the show in this coming year," Gelsinger said of AI on PCs. "You're unleashing this power for every person, every use case, every location in the future."
During a demonstration of the new chip in September, the company showed some examples of AI work that it hoped would spur interest, such as transcribing voice notes without having to send data to a third-party cloud provider or generating a song in the style of pop star Taylor Swift.
Intel on Thursday also showed what it said was the first working version of a chip called Gaudi 3, which it hopes will challenge NvidiaNVDA.O in the data center AI market.
(Reporting by Stephen Nellis in San Francisco; Editing by Jamie Freed)
((Stephen.Nellis@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Stephen Nellis Dec 14 (Reuters) - Intel INTC.O on Thursday said that dozens of personal computer makers are using its newest chip, as the company and its customers try to entice consumers to upgrade their machines for a new era of chatbots. At a press event in New York, Intel said the new offering will be available in laptops from Dell Technologies DELL.N, Microsoft MSFT.O, Lenovo Group 0992.HK and others that will go on sale on Thursday at Best Buy BBY.N in the U.S. and other global retailers including China's JD.com 9618.HK and Australia's Harvey Norman HVN.AX. During a demonstration of the new chip in September, the company showed some examples of AI work that it hoped would spur interest, such as transcribing voice notes without having to send data to a third-party cloud provider or generating a song in the style of pop star Taylor Swift.
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Intel Chief Executive Pat Gelsinger said during the event that Intel believes using its chips will make AI services cheaper, faster and more private than using services based in cloud data centers. During a demonstration of the new chip in September, the company showed some examples of AI work that it hoped would spur interest, such as transcribing voice notes without having to send data to a third-party cloud provider or generating a song in the style of pop star Taylor Swift. Intel on Thursday also showed what it said was the first working version of a chip called Gaudi 3, which it hopes will challenge NvidiaNVDA.O in the data center AI market.
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By Stephen Nellis Dec 14 (Reuters) - Intel INTC.O on Thursday said that dozens of personal computer makers are using its newest chip, as the company and its customers try to entice consumers to upgrade their machines for a new era of chatbots. Intel Chief Executive Pat Gelsinger said during the event that Intel believes using its chips will make AI services cheaper, faster and more private than using services based in cloud data centers. Intel on Thursday also showed what it said was the first working version of a chip called Gaudi 3, which it hopes will challenge NvidiaNVDA.O in the data center AI market.
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By Stephen Nellis Dec 14 (Reuters) - Intel INTC.O on Thursday said that dozens of personal computer makers are using its newest chip, as the company and its customers try to entice consumers to upgrade their machines for a new era of chatbots. At a press event in New York, Intel said the new offering will be available in laptops from Dell Technologies DELL.N, Microsoft MSFT.O, Lenovo Group 0992.HK and others that will go on sale on Thursday at Best Buy BBY.N in the U.S. and other global retailers including China's JD.com 9618.HK and Australia's Harvey Norman HVN.AX. Intel on Thursday also showed what it said was the first working version of a chip called Gaudi 3, which it hopes will challenge NvidiaNVDA.O in the data center AI market.
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12106.0
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2023-12-12 00:00:00 UTC
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2 'Strong Buy' Warren Buffett Stocks to Invest In Now
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AAPL
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https://www.nasdaq.com/articles/2-strong-buy-warren-buffett-stocks-to-invest-in-now
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nan
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nan
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Warren Buffett has a long history of successful investing. The legendary investor is known for his adherence to value investing principles, which involve looking for companies with solid fundamentals, competitive advantages, and wide economic moats.
These companies are often leaders in their industries, which reduces the relative risk associated with the investment. Moreover, a few of them also offer solid dividends. Therefore, adopting a strategy of investing in stocks within Berkshire Hathaway's (BRK.A) (BRK.B) portfolio, as curated by Buffett and his team, could prove to be a prudent approach for long-term wealth creation.
While Warren Buffett holds significant stakes in quite a few companies, including Apple (AAPL), I’ll focus here on two Buffett stocks analysts are particularly bullish about. Let's take a look.
Coca-Cola
Coca-Cola (KO) stock is Buffett’s fourth largest holding, as per the latest 13F filing. The stock accounts for 7.1% of Berkshire’s holdings. Coca-Cola benefits from strong underlying demand and the company’s solid execution. What stands out is the company’s pricing power that supports organic growth and cushions its earnings.
www.barchart.com
Despite macro headwinds, Coca-Cola achieved an impressive 11% organic revenue growth in the third quarter. This was driven by positive volume growth and higher pricing. The beverage giant expanded volume and value share in both at-home and away-from-home channels during the quarter. Additionally, its comparable gross margin increased by approximately 130 basis points for the period, reflecting higher organic sales and benefits from bottler refranchising.
Encouragingly, Coca-Cola raised its fiscal 2023 revenue and earnings guidance, projecting organic revenue growth of 10-11%, up from the earlier guidance of 8-9%. The company plans to invest further in marketing and digital initiatives to enhance the relevance of its brands to consumers. It is also prioritizing its eB2B (electronic business-to-business) platforms for better product customization, pricing optimization, and inventory management.
The company’s strong business momentum and robust balance sheet provide financial flexibility for continued reinvestment in the business and returning capital to shareholders. As a dividend king, Coca-Cola has increased its annual dividend for 61 consecutive years. The combination of steady growth, consistent dividend increases, and share buybacks positions Coca-Cola as an attractive long-term investment.
Analysts seem to concur, with the majority recommending a “Strong Buy" on KO. Among the 15 analysts covering the stock, 11 advocate a “Strong Buy,” one suggests a “Moderate Buy,” and three advise a “Hold.” Furthermore, the average price target of $64.80 implies approximately 8.4% upside potential from current levels.
www.barchart.com
Amazon
Amazon.com (AMZN) stock constitutes a small fraction of Buffet’s portfolio. However, Wall Street is quite optimistic about this e-commerce and cloud computing giant.
Despite facing macroeconomic challenges, Amazon's stock has racked up substantial gains this year, primarily propelled by the strength of its cloud computing arm, Amazon Web Services (AWS). Moreover, its focus on improving profitability, investments in artificial intelligence (AI), and sustained momentum in the advertising business further supported the rally in its share price.
www.barchart.com
AWS stands out as the key catalyst behind Amazon’s revenue and profitability. The segment’s revenue reached $23.1 billion in the third quarter, reflecting a 12% year-over-year increase. The ongoing migration of new workloads to the cloud contributes to the vertical’s growth. Its strong customer pipeline, improving cost structure, and AI-driven capabilities are expected to bolster AWS’ financial performance.
As for the advertising business, the segment holds significant potential for the company. The advertising division has consistently demonstrated over 20% revenue growth in recent quarters, and has been the key driver for Amazon’s free cash flow. In the third quarter, advertising revenues surged by over 25% to $12.1 billion. Moreover, the segment’s top line also improved sequentially.
Overall, the combined strength of Amazon’s cloud and advertising businesses, its leadership in the e-commerce sector, and a focus on improving profitability through cost reduction are expected to provide a solid foundation for the company’s financial performance.
Analysts echo this sentiment with a predominantly bullish outlook on the stock. Among the 40 analysts covering Amazon, 36 recommend a “Strong Buy,” three suggest a “Moderate Buy,” and one advises a "Hold." The average price target among analysts is $174.03, indicating approximately 16.7% upside potential from current levels.
www.barchart.com
On the date of publication, Sneha Nahata 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.
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While Warren Buffett holds significant stakes in quite a few companies, including Apple (AAPL), I’ll focus here on two Buffett stocks analysts are particularly bullish about. Therefore, adopting a strategy of investing in stocks within Berkshire Hathaway's (BRK.A) (BRK.B) portfolio, as curated by Buffett and his team, could prove to be a prudent approach for long-term wealth creation. Additionally, its comparable gross margin increased by approximately 130 basis points for the period, reflecting higher organic sales and benefits from bottler refranchising.
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While Warren Buffett holds significant stakes in quite a few companies, including Apple (AAPL), I’ll focus here on two Buffett stocks analysts are particularly bullish about. Among the 15 analysts covering the stock, 11 advocate a “Strong Buy,” one suggests a “Moderate Buy,” and three advise a “Hold.” Furthermore, the average price target of $64.80 implies approximately 8.4% upside potential from current levels. Among the 40 analysts covering Amazon, 36 recommend a “Strong Buy,” three suggest a “Moderate Buy,” and one advises a "Hold."
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While Warren Buffett holds significant stakes in quite a few companies, including Apple (AAPL), I’ll focus here on two Buffett stocks analysts are particularly bullish about. Among the 15 analysts covering the stock, 11 advocate a “Strong Buy,” one suggests a “Moderate Buy,” and three advise a “Hold.” Furthermore, the average price target of $64.80 implies approximately 8.4% upside potential from current levels. Overall, the combined strength of Amazon’s cloud and advertising businesses, its leadership in the e-commerce sector, and a focus on improving profitability through cost reduction are expected to provide a solid foundation for the company’s financial performance.
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While Warren Buffett holds significant stakes in quite a few companies, including Apple (AAPL), I’ll focus here on two Buffett stocks analysts are particularly bullish about. This was driven by positive volume growth and higher pricing. As for the advertising business, the segment holds significant potential for the company.
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12107.0
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2023-12-12 00:00:00 UTC
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US STOCKS-Wall St rises on Fed's rate-cut signal; Apple scales record high
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rises-on-feds-rate-cut-signal-apple-scales-record-high
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nan
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nan
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By Shristi Achar A and Johann M Cherian
Dec 14 (Reuters) - Wall Street's main indexes rose on Thursday, with tech giant Apple notching up a record high, a day after the Federal Reserve hinted an end to its aggressive rate-hike campaign and signaled that borrowing costs would be lower next year.
The Fed left interest rates unchanged on Wednesday, as expected, with Chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming "into view".
The Fed has raised its policy rate by a market-punishing 525 basis points since March 2022 in an effort to curb decades-high inflation. On Wednesday, 17 of 19 Fed officials projected the policy rate would be lower by end-2024.
The dovish pivot in the central bank's statement triggered a rally in equities, with the Dow Jones Industrial Average Index .DJI clocking fresh intra-day record highs on Thursday.
"The fact that we're not at a point where rates are being lowered because of some economic weakness, (but) rather the Fed re-calibrating its policy - markets seem to like that message," said George Mateyo, chief investment officer at Key Private Bank.
Money markets now see an 83.7% chance of at least a 25-basis-point rate cut in March 2024, up from about 50% before the policy decision, while almost fully pricing in another cut in May, according to CME's FedWatch tool.
Yield on the benchmark 10-year Treasury note US10YT=RR slipped further, to 3.9152%, while the dollar =USD tumbled to fresh four-month lows. US/USD/
Meanwhile, Apple's shares AAPL.Orose to anintra-day record high of $199.62, surpassing their July peak, and were last up 0.2%.
Seven of the S&P 500's 11 sectors advanced, led by a 2.4% rise in real estate stocks .SPLRCR, while the small-caps Russell 2000 index .RUT surged 2.5% to hit its strongest level since early February.
At 11:26 a.m. ET, the Dow Jones Industrial Average .DJI was up 68.34 points, or 0.18%, at 37,158.58, the S&P 500 .SPX was up 10.97 points, or 0.23%, at 4,718.06, and the Nasdaq Composite .IXIC was up 18.05 points, or 0.12%, at 14,752.02.
AdobeADBE.O shed 5.5% after the Photoshop maker forecast annual and quarterly revenue below estimates.
ModernaMRNA.Ojumped 11.7% after an experimental messenger RNA cancer vaccine it co-developed with Merck MRK.N cut the chance of recurrence or death from melanoma by half after three years, when paired with Merck's Keytruda drug.
Occidental PetroleumOXY.N added 3.4% after Warren Buffett's Berkshire Hathaway BRKa.N acquired nearly 10.5 million shares of the oil giant for about $588.7 million.
Foot Locker FL.N rose 7.9% after Piper Sandler upgraded the sportswear retailer to "overweight" from "neutral".
Advancing issues outnumbered decliners by a 5.21-to-1 ratio on the NYSE and by a 2.80-to-1 ratio on the Nasdaq.
The S&P index recorded 87 new 52-week highs and no new lows, while the Nasdaq recorded 235 new highs and 40 new lows.
Fed rate cut expectations https://tmsnrt.rs/41oElWr
(Reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai)
((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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US/USD/ Meanwhile, Apple's shares AAPL.Orose to anintra-day record high of $199.62, surpassing their July peak, and were last up 0.2%. By Shristi Achar A and Johann M Cherian Dec 14 (Reuters) - Wall Street's main indexes rose on Thursday, with tech giant Apple notching up a record high, a day after the Federal Reserve hinted an end to its aggressive rate-hike campaign and signaled that borrowing costs would be lower next year. The dovish pivot in the central bank's statement triggered a rally in equities, with the Dow Jones Industrial Average Index .DJI clocking fresh intra-day record highs on Thursday.
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US/USD/ Meanwhile, Apple's shares AAPL.Orose to anintra-day record high of $199.62, surpassing their July peak, and were last up 0.2%. By Shristi Achar A and Johann M Cherian Dec 14 (Reuters) - Wall Street's main indexes rose on Thursday, with tech giant Apple notching up a record high, a day after the Federal Reserve hinted an end to its aggressive rate-hike campaign and signaled that borrowing costs would be lower next year. The dovish pivot in the central bank's statement triggered a rally in equities, with the Dow Jones Industrial Average Index .DJI clocking fresh intra-day record highs on Thursday.
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US/USD/ Meanwhile, Apple's shares AAPL.Orose to anintra-day record high of $199.62, surpassing their July peak, and were last up 0.2%. By Shristi Achar A and Johann M Cherian Dec 14 (Reuters) - Wall Street's main indexes rose on Thursday, with tech giant Apple notching up a record high, a day after the Federal Reserve hinted an end to its aggressive rate-hike campaign and signaled that borrowing costs would be lower next year. The S&P index recorded 87 new 52-week highs and no new lows, while the Nasdaq recorded 235 new highs and 40 new lows.
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US/USD/ Meanwhile, Apple's shares AAPL.Orose to anintra-day record high of $199.62, surpassing their July peak, and were last up 0.2%. By Shristi Achar A and Johann M Cherian Dec 14 (Reuters) - Wall Street's main indexes rose on Thursday, with tech giant Apple notching up a record high, a day after the Federal Reserve hinted an end to its aggressive rate-hike campaign and signaled that borrowing costs would be lower next year. The Fed has raised its policy rate by a market-punishing 525 basis points since March 2022 in an effort to curb decades-high inflation.
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12108.0
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2023-12-12 00:00:00 UTC
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5 Winning Stocks of 2023 as Dow Jones Hits New Record
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AAPL
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https://www.nasdaq.com/articles/5-winning-stocks-of-2023-as-dow-jones-hits-new-record
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nan
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nan
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The Dow Jones Industrial Average hit a new record, surpassing 37,000 for the first time after the Fed signaled the possibility of rate cuts next year. The blue-chip index has displayed an astounding rally in the past month, outperforming the other indices. The rally broadened out to other sectors beyond the “Magnificent Seven” stocks.
While most of the stocks in the index have performed remarkably this year, we have highlighted five of them that have been leading the way higher. These include Salesforce Inc. CRM, Intel Corporation INTC, Microsoft Corporation MSFT, Apple Inc. AAPL and Boeing BA.
The Fed, as expected, kept interest rates steady at a 22-year high in the FOMC meeting ended Dec 13. In a major shift, the central bank signaled three rate cuts for the next year, with the federal funds rate falling to a range of 4.4-4.9%, down from the current 5.25% to 5.50%. This suggests that the Fed will cut rates by a total of 0.75% next year, indicating that the historic rate-hiking campaign might be ending. It had previously forecast two rate cuts for 2024. Following the meeting, markets are pricing in a nearly 60% chance that the Fed will begin to cut rates at its March meeting, up from 40% the day prior, per the data from the CME Group.
Being cyclical in nature, the blue-chip index outperforms when economic growth improves. Americans are now feeling more confident about the economy than they did over the past few months. This is especially true as consumer sentiment, as indicated by the preliminary reading on the University of Michigan preliminary index, rebounded sharply in early December and broke the streak of four consecutive months of decline.
Cyclical stocks, bank stocks and small-cap stocks have all shown an upward trend, indicating that the market is in a state of expansion, supporting the uptrend in equities.
Best-Performing Stocks
Salesforce is the leading provider of on-demand Customer Relationship Management software, which enables organizations to better manage critical operations, such as sales force automation, customer service and support, marketing automation, document management, analytics and custom application development. The stock has surged 94.1% this year.
Salesforce has an expected earnings growth rate of 16% for the fiscal year (ending January 2025). It has a Zacks Rank #3 (Hold) and a Growth Score of B.
Intel, the world’s largest semiconductor company and primary supplier of microprocessors and chipsets, is gradually reducing its dependence on the PC-centric business by moving into data-centric businesses — such as AI and autonomous driving. INTC jumped 68.6% this year.
Intel is expected to see earnings growth of 98.5% for 2024 and has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Microsoft is one of the largest broad-based technology providers in the world. The company dominates the PC software market, with more than 73% share of operating systems. MSFT has risen 56.1% this year.
Microsoft is expected to see earnings growth of 13.5% in the fiscal year ending June 2024. It has a Zacks Rank #3 and a solid Growth Score of A.
Apple designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products and HomePod. Shares of AAPL are up more than 52% this year.
Apple’s earnings are expected to grow 7% for the fiscal year (ending September 2024). The stock has a Zacks Rank #3 and has a Momentum Score of B.
Boeing has been the premier manufacturer of commercial jetliners for decades. The company’s premier jet aircraft along with varied defense products position it as one of the largest defense contractors in the United States. It has a solid estimated earnings growth of 157.6% for 2024.
Boeing has risen 31.7% so far this year. The stock has a Zacks Rank #3 and a Growth Score of A.
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These include Salesforce Inc. CRM, Intel Corporation INTC, Microsoft Corporation MSFT, Apple Inc. AAPL and Boeing BA. Shares of AAPL are up more than 52% this year. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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These include Salesforce Inc. CRM, Intel Corporation INTC, Microsoft Corporation MSFT, Apple Inc. AAPL and Boeing BA. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of AAPL are up more than 52% this year.
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Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report To read this article on Zacks.com click here. These include Salesforce Inc. CRM, Intel Corporation INTC, Microsoft Corporation MSFT, Apple Inc. AAPL and Boeing BA. Shares of AAPL are up more than 52% this year.
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These include Salesforce Inc. CRM, Intel Corporation INTC, Microsoft Corporation MSFT, Apple Inc. AAPL and Boeing BA. Shares of AAPL are up more than 52% this year. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report To read this article on Zacks.com click here.
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12109.0
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2023-12-12 00:00:00 UTC
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Where Will Apple Stock Be in 5 Years?
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AAPL
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https://www.nasdaq.com/articles/where-will-apple-stock-be-in-5-years
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nan
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nan
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You probably already know Apple (NASDAQ: AAPL) is the world's biggest company (as measured by market capitalization) as well as one of the planet's most profitable corporations. And for good reason. This is the company behind the world's single most popular smartphone, after all, and it garners fierce loyalty from users thanks to the world's most popular ecosystem of apps and other digital content.
As veteran investors can attest, though, you shouldn't buy stocks based on where their underlying companies were, or even are. You own them for where they're going.
This raises two important questions about Apple and its stock: Where will the company be five years from now, and what might that mean for Apple shares?
Spoiler alert: Current Apple investors will like the outlook but probably won't love it.
Slowing down where it hurts the most
Come 2028, Apple will still be a technology powerhouse. The company's highest-growth days, however, are largely in the past.
Nowhere is this more clearly represented than with a visualization of the company's historical iPhone revenue and iPhone deliveries. Even before the COVID-19 pandemic took hold in 2020, iPhone sales were stagnant, even teetering on the verge of measurable decline. The pandemic itself actually helped spur a wave of iPhone purchases, but that swell wasn't meant to last. Both iPhone revenue as well as deliveries are easing back to pre-pandemic levels, sinking more than they're growing.
iPhone revenue data source: Apple Inc. iPhone unit deliveries data source: IDC. Chart by author. Revenue data is in billions. Unit-delivery data is in millions.
It matters simply because the iPhone still accounts for around half of Apple's revenue. Just for the record, demand for Apple's other products has also been lackluster since peaking in the middle of last year.
Data source: Apple Inc. Chart by author. Figures are in billions.
Some of this slowdown could be attributed to economic malaise and inflation. Much of it, however, may simply reflect market saturation. The company has confirmed there are now more than 2 billion Apple-made devices (mostly iPhones) currently in use. That's obviously not the whole world, but it is a sizable chunk of the total addressable market.
People are holding onto their existing Apple-made devices for longer periods of time, crimping demand for upgrade purchases. Analysts with brokerage Morgan Stanley estimate the average iPhone is now a record-breaking 4.4 years old.
Here's the good news: Morgan Stanley also believes the likely debut of the iPhone 16 next year will unleash a wave of upgrade buying that's been put on hold for a while now. Even so, such upgrade cycles haven't exactly been game-changers for Apple. The bigger-picture, longer-term revenue trend is still mostly moving sideways rather than moving higher.
Services to the rescue ... somewhat
All is not lost. While product-revenue growth is flattening out, Apple's services revenue (sales of apps and digital content) continues to grow.
Perhaps recognizing there are only so many iPhones that can be sold in any given year -- just as there are only so many people who will ever want to own one -- the company began taking its app store more seriously back in 2017. And in retrospect, it was a brilliant move. While its services arm is Apple's distant second-biggest business in terms of revenue, it's still an incredibly profitable one. Around 70% of its services revenue is turned into gross profit, and services alone make up roughly one-third of Apple's gross profits.
Data source: Apple Inc. Chart by author. Revenue and gross profit figures are in billions.
The graphic above tells us something else about Apple's digital content business too. That is, despite last year's lull, this arm is still growing, reaching a record-breaking $22.3 billion worth of revenue during the three months ending in September.
We don't know where Apple's services business-revenue ceiling is. What we do know is the annualized revenue figure of $100 billion is being tossed around rather regularly now. That's roughly $15 billion more than its current annualized revenue run rate and makes sense as a target.
Beyond that milestone, however, the growth picture for Apple's services arm turns murky.
In the same sense that there's an absolute limit to the number of iPhone users and the number of iPhones that can be sold in any given year, there's also a limit to how many apps and how much digital content even the heaviest users of Apple's products will be willing to pay for. The planet's 2 billion-plus iOS users are currently spending an average of around $44 per year on services that make more use of their Apple-made devices. It's tough to see them spending a great deal more on this front than they already do.
Connecting the dots
So what does it all mean looking forward?
Again, nobody's got a crystal ball. What's known is where Apple stands right now, and analysts have a good feel for the trends behind the company's two biggest businesses -- the iPhone and services.
It's conceivable Apple's iPhone arm isn't going to be any bigger in five years than it is right now. It's also likely that Apple's services arm will become a $100-billion-a-year business by 2028, but it's difficult to see it getting much bigger than that. Sales of Apple's other products, like iPads and Macs, may grow a little during this time frame, although even that's a tough expectation to get behind given their lackluster results of late.
To the extent a number helps paint the picture, Apple's top line could easily be less than $500 billion in 2028. That's 30% more than the recently ended fiscal year's revenue, but it's a growth rate that's also very un-Apple-like.
The analyst community is slightly more bullish (although only slightly), calling for 2028 sales of around $550 billion. Even then, it's still not exactly a thrilling growth outlook. Earnings-growth projections don't exactly help the bullish argument much either.
Data source: StockAnalysis.com. Chart by author. Revenue figures are in billions.
As for the stock, here's where current and prospective Apple investors will likely catch a break; this ticker tends to move in step with the company's growth no matter how fast or slow that growth is. Presuming the sales and earnings-based pricing paradigm remains in place, the stock's current price near $200 could be closer to $300 five years from now.
The one potential game-changer is if Apple comes up with a new and completely unexpected must-have product that could shake up these expectations for the better. There's no such product even on the radar, though. So don't get your hopes up in that regard.
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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.
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You probably already know Apple (NASDAQ: AAPL) is the world's biggest company (as measured by market capitalization) as well as one of the planet's most profitable corporations. Here's the good news: Morgan Stanley also believes the likely debut of the iPhone 16 next year will unleash a wave of upgrade buying that's been put on hold for a while now. The planet's 2 billion-plus iOS users are currently spending an average of around $44 per year on services that make more use of their Apple-made devices.
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You probably already know Apple (NASDAQ: AAPL) is the world's biggest company (as measured by market capitalization) as well as one of the planet's most profitable corporations. iPhone revenue data source: Apple Inc. iPhone unit deliveries data source: IDC. Around 70% of its services revenue is turned into gross profit, and services alone make up roughly one-third of Apple's gross profits.
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You probably already know Apple (NASDAQ: AAPL) is the world's biggest company (as measured by market capitalization) as well as one of the planet's most profitable corporations. This raises two important questions about Apple and its stock: Where will the company be five years from now, and what might that mean for Apple shares? iPhone revenue data source: Apple Inc. iPhone unit deliveries data source: IDC.
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You probably already know Apple (NASDAQ: AAPL) is the world's biggest company (as measured by market capitalization) as well as one of the planet's most profitable corporations. Revenue data is in billions. As for the stock, here's where current and prospective Apple investors will likely catch a break; this ticker tends to move in step with the company's growth no matter how fast or slow that growth is.
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12110.0
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2023-12-12 00:00:00 UTC
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EU asks Apple, Google to clarify app store risk management
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AAPL
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https://www.nasdaq.com/articles/eu-asks-apple-google-to-clarify-app-store-risk-management
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nan
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nan
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Adds more detail, background
PARIS, Dec 14 (Reuters) - The European Commission on Thursday said it had asked technology giants Apple AAPL.O and Google GOOGL.O to clarify their risk management regarding their online platforms for purchasing apps under new regulation known as the Digital Services Act (DSA).
"The Commission is requesting the providers of these services to provide more information on how they have diligently identified any systemic risks concerning the App Store and Google Play", the EU executive said in a statement.
The two firms were given a Jan. 15 deadline to reply.
They are part of a group of over a dozen of the world's biggest tech companies facing unprecedented legal scrutiny since the DSA came into force this year, including sweeping new obligations to tackle illegal content and online security risks.
The EU's list of questions also concerns transparency-related issues linked to recommender systems and online advertisements, the commission said, adding that potential next steps include the opening of formal proceedings.
(Reporting by Bart Meijer, Tassilo Hummel)
((tassilo.hummel@thomsonreuters.com ; Twitter handle: @tassilo_hummel;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds more detail, background PARIS, Dec 14 (Reuters) - The European Commission on Thursday said it had asked technology giants Apple AAPL.O and Google GOOGL.O to clarify their risk management regarding their online platforms for purchasing apps under new regulation known as the Digital Services Act (DSA). They are part of a group of over a dozen of the world's biggest tech companies facing unprecedented legal scrutiny since the DSA came into force this year, including sweeping new obligations to tackle illegal content and online security risks. The EU's list of questions also concerns transparency-related issues linked to recommender systems and online advertisements, the commission said, adding that potential next steps include the opening of formal proceedings.
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Adds more detail, background PARIS, Dec 14 (Reuters) - The European Commission on Thursday said it had asked technology giants Apple AAPL.O and Google GOOGL.O to clarify their risk management regarding their online platforms for purchasing apps under new regulation known as the Digital Services Act (DSA). "The Commission is requesting the providers of these services to provide more information on how they have diligently identified any systemic risks concerning the App Store and Google Play", the EU executive said in a statement. The EU's list of questions also concerns transparency-related issues linked to recommender systems and online advertisements, the commission said, adding that potential next steps include the opening of formal proceedings.
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Adds more detail, background PARIS, Dec 14 (Reuters) - The European Commission on Thursday said it had asked technology giants Apple AAPL.O and Google GOOGL.O to clarify their risk management regarding their online platforms for purchasing apps under new regulation known as the Digital Services Act (DSA). The two firms were given a Jan. 15 deadline to reply. (Reporting by Bart Meijer, Tassilo Hummel) ((tassilo.hummel@thomsonreuters.com ; Twitter handle: @tassilo_hummel;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds more detail, background PARIS, Dec 14 (Reuters) - The European Commission on Thursday said it had asked technology giants Apple AAPL.O and Google GOOGL.O to clarify their risk management regarding their online platforms for purchasing apps under new regulation known as the Digital Services Act (DSA). "The Commission is requesting the providers of these services to provide more information on how they have diligently identified any systemic risks concerning the App Store and Google Play", the EU executive said in a statement. The two firms were given a Jan. 15 deadline to reply.
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12111.0
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2023-12-12 00:00:00 UTC
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Zacks Investment Ideas feature highlights: Apple
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AAPL
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-apple-1
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nan
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nan
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For Immediate Release
Chicago, IL – December 14, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL.
Apple Stock Nears All-Time High: Is the Tech Giant Too Extended?
Apple stock has been in ultrasonic mode this year. After a series of higher highs and higher lows along with fresh 52-week highs, Apple shares have now soared back near all-time highs, as the iPhone maker has benefitted from strength in the large-cap tech space. The bullish theme around artificial intelligence certainly hasn't hurt either.
Following a greater than 50% surge in 2023, are Apple shares now too far extended, or is the rally just getting underway?
Buying at New All-Time Highs
Purchasing stocks at new all-time highs following a bear market has proven to be successful in the past. It's the market's way of telling us that higher prices are on the horizon. And when we analyze the state of the economy with a sustained deceleration in inflation, better-than-expected corporate earnings, and a resilient U.S. consumer, there's plenty of reasons to suspect that the momentum can continue.
Despite the technical progress this year, most professional fund managers (along with individual investors) were underweight stocks, missing the majority of the rally. The lack of respect for the market's recovery aided the bullish move off the 2022 bear market lows.
It's normal to expect that the rally won't continue, but history tells us otherwise. The S&P 500 is less than 4% away from its own all-time high set back in January of 2022. The previous 14 times that the blue-chip index went at least a full year without a new high and then finally made one, a year later it was higher 13/14 times and up nearly 15% on average.
The Business of Apple
Apple is engaged in the designing, manufacturing, and marketing of mobile communication and media devices, personal computers, and portable digital music players. Headquartered in Cupertino, California, Apple's well-known products include the iPhone, iPad, Mac, and Apple TV, along with its software applications like iOS and the MAC OS X operating systems.
In addition to the sales generated from the devices mentioned above, Apple's business contains a Services segment that includes revenues from cloud services, the App Store, Apple Music, AppleCare, Apple Pay, as well as other licensing services that have become a major cash cow. Apple currently has more than 935 million paid subscribers across the Services portfolio.
If that all wasn't enough, Apple dominates the Wearables market, as consumers continue to adopt products like the AirPods and Apple Watch. Apple has made significant headway in this area, strengthening its presence in the personal health monitoring space. Other services include Apple News+, Apple Card, and Apple Arcade.
An increased focus on autonomous vehicles and augmented reality technologies presents a growth opportunity over the long-term. Apple is expected to ramp up its efforts with new offerings, and has clearly benefited from the AI theme this year.
Apple Stock – The Zacks Rundown
Apple is part of the Zacks Computer – Mini Computers industry, which currently ranks in the top 36% of all Zacks Ranked Industries. Because it is ranked in the top half of all industries, we expect this group to outperform the market over the next 3 to 6 months, just as it has year-to-date with a 50% return.
Historical research studies suggest that approximately half of a stock's price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Apple has exceeded earnings estimates in three of the past four quarters. The company most recently delivered fiscal fourth-quarter earnings back in November of $1.46/share, beating the $1.39 Zacks Consensus Estimate by 5.04%. Apple has delivered a trailing four-quarter average earnings surprise of 3.47%.
AAPL is currently a Zacks Rank #3 (Hold) stock. The tech giant is projected to see earnings grow 7% in the current fiscal year on revenues of $393.4 billion. Given Apple's history of beating estimates, it wouldn't be too surprising if these figures ended up being a bit light.
What to Do Now
Buying stocks when they make new highs has proven to be profitable throughout history. A stock eclipsing a previous high should be viewed as a sign of strength. Apple appears to be breaking out of a multi-month consolidation pattern, bolstering the bullish case.
The market is telling us to expect the unexpected. A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs. Make sure to keep an eye on this tech behemoth as the stock inches closer to a new all-time high.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
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.
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For Immediate Release Chicago, IL – December 14, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL. AAPL is currently a Zacks Rank #3 (Hold) stock. A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs.
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A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs. For Immediate Release Chicago, IL – December 14, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL. AAPL is currently a Zacks Rank #3 (Hold) stock.
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For Immediate Release Chicago, IL – December 14, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL. AAPL is currently a Zacks Rank #3 (Hold) stock. A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs.
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AAPL is currently a Zacks Rank #3 (Hold) stock. For Immediate Release Chicago, IL – December 14, 2023 – Today, Zacks Investment Ideas feature highlights Apple AAPL. A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs.
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12112.0
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2023-12-12 00:00:00 UTC
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Bob Iger Is Running Out of Time to Save Disney Stock
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AAPL
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https://www.nasdaq.com/articles/bob-iger-is-running-out-of-time-to-save-disney-stock
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Walt Disney Co. (NYSE:DIS) stock actually represents three companies, each with unique problems and opportunities. There’s the entertainment division, the ESPN division, and the parks division, which must maintain a pristine reputation to deliver long-term profits.
In the long term, this can be managed, but CEO Bob Iger looks like he’s out of time. Short-term activists demand a profit now, and if you buy the stock today, you’re buying what they’re selling.
The Activist View on DIS Stock
Activists Ancora and Trian, who have launched a proxy fight against the board, don’t care where DIS stock is 5 or 10 years from now. They want to make money right away.
The addition of ValueAct to the challengers’ team is already giving them a small victory. Since Trian said it had a $2.5 billion stake, and began pushing Nelson Peltz toward a board seat, Disney stock is up almost 10%.
Disney responded Nov. 30 by bringing back its 30 cent/share dividend. That’s unlikely to satisfy the activists.
What would cheer the activists is the sale of Disney assets, maybe the whole company. In the present business environment, Disney looks like a set of mismatched parts.
Las Vegas gamblers and Saudi oil tycoons are taking over sports. That makes ESPN a bad fit for a family entertainment operation.
The ABC broadcast network is losing value daily, and Byron Allen has offered $10 billion for it. A higher price, after a bidding war, might be enough to buy back the activists’ stake. It would also give Disney a better growth profile.
If Disney can’t generate bigger profits right away, the analysts aren’t averse to a complete breakup. Spin-out ESPN and its sports betting. Sell the entertainment division Apple (NASDAQ:AAPL) and license that content for a profitable parks company. Whether it works or not is less important than the cash and optimism such moves would bring to the analysts’ bottom lines.
The Disney View
Iger’s view is that many of today’s problems will fix themselves.
Both broadcast and cable are sinking. Ads aren’t as “addressable” as on a streaming service, which can target individuals and small groups, not just broad demographics.
So, Iger thinks, move the content to streaming. By cutting budgets and raising prices, Disney feels streaming profits become inevitable. Buying the rest of Hulu from Comcast (NASDAQ:CMCSA) adds even more addressable ad inventory.
Problems at the U.S. theme parks are also temporary. That’s one reason TV’s Jim Cramer wants investors to buy Disney now. Disney is still a big time global brand. Its parks in Hong Kong and Shanghai saved the most recent quarter. Better results from the U.S. parks could take earnings much higher.
Bulls also like the potential of ESPN. Penn Entertainment’s (NASDAQ:PENN) online betting platform, with ESPN’s name on it, has lower customer acquisition costs than competitors. This could give Disney 20% of a growing market.
The Bottom Line on DIS Stock
Bob Iger still has a great hand to play.
The streaming unit should be competitive with Netflix (NASDAQ:NFLX). That stock is up 53% in 2023 and is worth $30 billion than all of Disney right now. A growing U.S. economy bodes well for the parks. ESPN is a worthwhile asset no matter who owns it.
The question is whether Iger will get a chance to play that hand. Trian doesn’t want to wait the year or two it will take to prove the value of Disney assets. The rhetoric around the proxy fight is growing personal. That’s never a good sign.
You can buy Disney here but be wary. Big egos can turn big potential into small beer.
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. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack.
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The post Bob Iger Is Running Out of Time to Save Disney 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.
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Sell the entertainment division Apple (NASDAQ:AAPL) and license that content for a profitable parks company. As of this writing, Dana Blankenhorn had a LONG position in AAPL. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store.
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Sell the entertainment division Apple (NASDAQ:AAPL) and license that content for a profitable parks company. As of this writing, Dana Blankenhorn had a LONG position in AAPL. There’s the entertainment division, the ESPN division, and the parks division, which must maintain a pristine reputation to deliver long-term profits.
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Sell the entertainment division Apple (NASDAQ:AAPL) and license that content for a profitable parks company. As of this writing, Dana Blankenhorn had a LONG position in AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Walt Disney Co. (NYSE:DIS) stock actually represents three companies, each with unique problems and opportunities.
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Sell the entertainment division Apple (NASDAQ:AAPL) and license that content for a profitable parks company. As of this writing, Dana Blankenhorn had a LONG position in AAPL. Short-term activists demand a profit now, and if you buy the stock today, you’re buying what they’re selling.
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12113.0
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2023-12-12 00:00:00 UTC
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Berkshire Hathaway buys Occidental Petroleum shares worth about $588.7 mln
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AAPL
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https://www.nasdaq.com/articles/berkshire-hathaway-buys-occidental-petroleum-shares-worth-about-%24588.7-mln
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nan
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nan
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Adds background in paragraphs 2-6
Dec 13 (Reuters) - Berkshire Hathaway BRKa.Nhas acquired nearly 10.5 million shares of Occidental Petroleum OXY.N so far this week for about $588.7 million, according to a filing at the U.S. Securities and Exchange Commission on Wednesday.
The purchases bring Berkshire's stake in Occidental to about 27%. The company also holds preferred shares and warrants to acquire another 83.8 million Occidental shares for $4.7 billion, or $56.62 apiece.
The shares and warrants were obtained as part of a deal that helped Occidental finance its 2019 purchase of Anadarko Petroleum. If exercised, the warrants would bring Berkshire's total ownership to 33%.
Occidental closed at $57.22 on Wednesday.
(Reporting by Anirudh Saligrama in Bengaluru; Editing by Sherry Jacob-Phillips and Sonia Cheema)
((Anirudh.Saligrama@thomsonreuters.com; @journoanirudh on Twitter;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds background in paragraphs 2-6 Dec 13 (Reuters) - Berkshire Hathaway BRKa.Nhas acquired nearly 10.5 million shares of Occidental Petroleum OXY.N so far this week for about $588.7 million, according to a filing at the U.S. Securities and Exchange Commission on Wednesday. The shares and warrants were obtained as part of a deal that helped Occidental finance its 2019 purchase of Anadarko Petroleum. (Reporting by Anirudh Saligrama in Bengaluru; Editing by Sherry Jacob-Phillips and Sonia Cheema) ((Anirudh.Saligrama@thomsonreuters.com; @journoanirudh on Twitter;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds background in paragraphs 2-6 Dec 13 (Reuters) - Berkshire Hathaway BRKa.Nhas acquired nearly 10.5 million shares of Occidental Petroleum OXY.N so far this week for about $588.7 million, according to a filing at the U.S. Securities and Exchange Commission on Wednesday. The purchases bring Berkshire's stake in Occidental to about 27%. The company also holds preferred shares and warrants to acquire another 83.8 million Occidental shares for $4.7 billion, or $56.62 apiece.
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Adds background in paragraphs 2-6 Dec 13 (Reuters) - Berkshire Hathaway BRKa.Nhas acquired nearly 10.5 million shares of Occidental Petroleum OXY.N so far this week for about $588.7 million, according to a filing at the U.S. Securities and Exchange Commission on Wednesday. The company also holds preferred shares and warrants to acquire another 83.8 million Occidental shares for $4.7 billion, or $56.62 apiece. The shares and warrants were obtained as part of a deal that helped Occidental finance its 2019 purchase of Anadarko Petroleum.
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Adds background in paragraphs 2-6 Dec 13 (Reuters) - Berkshire Hathaway BRKa.Nhas acquired nearly 10.5 million shares of Occidental Petroleum OXY.N so far this week for about $588.7 million, according to a filing at the U.S. Securities and Exchange Commission on Wednesday. The purchases bring Berkshire's stake in Occidental to about 27%. (Reporting by Anirudh Saligrama in Bengaluru; Editing by Sherry Jacob-Phillips and Sonia Cheema) ((Anirudh.Saligrama@thomsonreuters.com; @journoanirudh on Twitter;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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12114.0
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2023-12-12 00:00:00 UTC
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Got $1,000? 4 Stocks to Buy Now While They're on Sale.
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AAPL
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https://www.nasdaq.com/articles/got-%241000-4-stocks-to-buy-now-while-theyre-on-sale.
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nan
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nan
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Even though stocks have rallied this year, many still trade at bargain prices. In fact, even some of this year's gainers offer you plenty of bang for your buck today -- like track records of growth and bright long-term earnings prospects. These players often are high-quality companies that have long been at the top of investors' "buy lists."
Here's even more good news. With $1,000, you can buy some shares of three major consumer goods companies and one up-and-coming player that recently reached the milestone of profitability -- and with a smaller investment, you can scoop up a share of each or make a bigger bet on each one. Let's take a closer look at four exciting stocks to invest in while they're on sale.
Image source: Getty Images.
1. Alphabet
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is the market leader in something we use every day: internet searches. Its Google search tool has held a 90% share of the market over time, and it's unlikely that will change any time soon for two reasons.
First, internet users are used to "Googling" something when they need information, so it would be difficult for a rival to change those habits. Second, Alphabet has invested in artificial intelligence (AI) to make its search capabilities even better.
And speaking of AI, the company recently introduced its most powerful AI model ever, Gemini. It's starting to roll out this tool across its products and right now is experimenting with it in Search.
Alphabet also is growing its cloud service, which reported a double-digit increase in revenue in the recent quarter. The company's focus on AI should boost this business over time, too.
Right now, Alphabet shares trade for only 23x forward earnings estimates -- even after this year's gains.
2. Chewy
Chewy (NYSE: CHWY) is the younger player I was talking about. This e-commerce pet supplies shop reached the big milestone of profitability last year and has continued to grow revenue this year, despite a difficult economic environment.
What's key is that Chewy customers keep coming back -- and are spending more and more. The company offers an Autoship service that automatically reorders and sends your favorite products to you. This service continues to grow and represents more than 76% of Chewy's overall net sales. What I like about Autoship is it shows us customer trends, offering visibility into future revenue.
In addition, there may be another growth catalyst just ahead. The company recently expanded into Canada -- a country where it sees significant opportunity -- and says customer demand has been high.
Chewy shares have declined this year, and the stock is trading at 36x forward earnings estimates. This is a reasonable price for a young, high-growth company.
3. Carnival
Carnival (NYSE: CCL) (NYSE: CUK) shares have climbed this year but are still well below their pre-pandemic levels. At the same time, the company has been managing its recovery from coronavirus shutdowns well and is even reporting impressive levels of growth.
CCL data by YCharts.
First, a bit about recovery. After the pandemic temporarily halted cruises, Carnival built up $34 billion in debt. But the company's efforts to cut costs -- like shifting to more fuel-efficient ships -- have been bearing fruit, and a sharp increase in cruise demand has helped, too.
Carnival paid down almost $4 billion in debt this year, and thanks to growing adjusted free cash flow, it can progressively lower debt in the months and years to come. The results of recent quarters offer us reason to be optimistic. In the third quarter, revenue hit an all-time high -- and the advanced booking position for 2024 cruises surpassed historic highs.
Even though Carnival shares have performed well in recent times, they still trade at 1.1x sales, lower than their pre-pandemic level by this measure.
4. Apple
Apple (NASDAQ: AAPL) has a solid earnings track record, growing everything from profit to return on invested capital over the years. The popularity of Apple's products hasn't let up, and the company continues to not only keep users loyal but also to attract new customers. In the most recent quarter, half of Mac and iPad purchases were made by customers new to those particular products.
And thanks to these products, Apple has built up a second major revenue stream: services. The company now has more than 1 billion paid subscribers -- and it offers them a vast range of services from digital content to payment tools. This generates revenue for Apple, and in the most recent quarter, this services revenue has reached a record high.
There's reason to be optimistic about products and services revenue continuing to grow over time -- products, thanks to Apple's strong brand and innovation, and services, due to the number of people using Apple devices. That's why the stock looks dirt cheap at 29x forward earnings estimates and makes a top investment right now.
Should you invest $1,000 in Alphabet right now?
Before you buy stock in Alphabet, 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 Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Chewy. The Motley Fool recommends Carnival Corp. 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.
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Apple Apple (NASDAQ: AAPL) has a solid earnings track record, growing everything from profit to return on invested capital over the years. In fact, even some of this year's gainers offer you plenty of bang for your buck today -- like track records of growth and bright long-term earnings prospects. But the company's efforts to cut costs -- like shifting to more fuel-efficient ships -- have been bearing fruit, and a sharp increase in cruise demand has helped, too.
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Apple Apple (NASDAQ: AAPL) has a solid earnings track record, growing everything from profit to return on invested capital over the years. With $1,000, you can buy some shares of three major consumer goods companies and one up-and-coming player that recently reached the milestone of profitability -- and with a smaller investment, you can scoop up a share of each or make a bigger bet on each one. There's reason to be optimistic about products and services revenue continuing to grow over time -- products, thanks to Apple's strong brand and innovation, and services, due to the number of people using Apple devices.
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Apple Apple (NASDAQ: AAPL) has a solid earnings track record, growing everything from profit to return on invested capital over the years. With $1,000, you can buy some shares of three major consumer goods companies and one up-and-coming player that recently reached the milestone of profitability -- and with a smaller investment, you can scoop up a share of each or make a bigger bet on each one. There's reason to be optimistic about products and services revenue continuing to grow over time -- products, thanks to Apple's strong brand and innovation, and services, due to the number of people using Apple devices.
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Apple Apple (NASDAQ: AAPL) has a solid earnings track record, growing everything from profit to return on invested capital over the years. Before you buy stock in Alphabet, 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 Alphabet wasn't one of them. The Motley Fool has positions in and recommends Alphabet, Apple, and Chewy.
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12115.0
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2023-12-12 00:00:00 UTC
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Apple reaches record high close as Fed signals rate cuts
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AAPL
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https://www.nasdaq.com/articles/apple-reaches-record-high-close-as-fed-signals-rate-cuts
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nan
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nan
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Corrects typographical error in 2nd paragraph to make it $197.96 per share instead of $179.96
Dec 13 (Reuters) - Apple's AAPL.O stock reached a record high close on Wednesday, lifted in a broad Wall Street rally after the Federal Reserve signaled lower borrowing costs are coming in 2024.
Apple's stock climbed 1.7% to end the day at $197.96 per share, beating the iPhone maker's previous record high close of $196.45 on July 31.
The stock hit an intraday high of $198.00, shy of its intraday record of $198.23 on July 19.
The world's most valuable company now has a market capitalization of $3.08 trillion.
U.S. stocks surged after the Fed held interest rates steady, with a near-unanimous 17 of 19 Fed officials projecting the policy rate will be lower by the end of 2024.
Apple's rally on Wednesday also helped propel the Dow Jones Industrial Average up 1.4% to its first record high close since January 2022.
Apple's shares have surged 52% so far in 2023, making a major contribution to the Dow's 12% recovery over that time, and to the S&P 500's 23% rally in the same period.
(Reporting by Noel Randewich; editing by Jonathan Oatis)
((noel.randewich@tr.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Corrects typographical error in 2nd paragraph to make it $197.96 per share instead of $179.96 Dec 13 (Reuters) - Apple's AAPL.O stock reached a record high close on Wednesday, lifted in a broad Wall Street rally after the Federal Reserve signaled lower borrowing costs are coming in 2024. Apple's stock climbed 1.7% to end the day at $197.96 per share, beating the iPhone maker's previous record high close of $196.45 on July 31. Apple's rally on Wednesday also helped propel the Dow Jones Industrial Average up 1.4% to its first record high close since January 2022.
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Corrects typographical error in 2nd paragraph to make it $197.96 per share instead of $179.96 Dec 13 (Reuters) - Apple's AAPL.O stock reached a record high close on Wednesday, lifted in a broad Wall Street rally after the Federal Reserve signaled lower borrowing costs are coming in 2024. Apple's stock climbed 1.7% to end the day at $197.96 per share, beating the iPhone maker's previous record high close of $196.45 on July 31. Apple's rally on Wednesday also helped propel the Dow Jones Industrial Average up 1.4% to its first record high close since January 2022.
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Corrects typographical error in 2nd paragraph to make it $197.96 per share instead of $179.96 Dec 13 (Reuters) - Apple's AAPL.O stock reached a record high close on Wednesday, lifted in a broad Wall Street rally after the Federal Reserve signaled lower borrowing costs are coming in 2024. Apple's stock climbed 1.7% to end the day at $197.96 per share, beating the iPhone maker's previous record high close of $196.45 on July 31. (Reporting by Noel Randewich; editing by Jonathan Oatis) ((noel.randewich@tr.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Corrects typographical error in 2nd paragraph to make it $197.96 per share instead of $179.96 Dec 13 (Reuters) - Apple's AAPL.O stock reached a record high close on Wednesday, lifted in a broad Wall Street rally after the Federal Reserve signaled lower borrowing costs are coming in 2024. Apple's stock climbed 1.7% to end the day at $197.96 per share, beating the iPhone maker's previous record high close of $196.45 on July 31. The stock hit an intraday high of $198.00, shy of its intraday record of $198.23 on July 19.
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12116.0
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2023-12-12 00:00:00 UTC
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80% of Warren Buffett's $313 Billion Portfolio Is in Just 5 Stocks. Find Out What He Owns Now.
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AAPL
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https://www.nasdaq.com/articles/80-of-warren-buffetts-%24313-billion-portfolio-is-in-just-5-stocks.-find-out-what-he-owns
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nan
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nan
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Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has a $313 billion investment portfolio that Warren Buffett has been in charge of for decades. And while he is known for buying companies for cheap and holding for decades, he's made some big moves in recent years. Tech stock Apple (NASDAQ: AAPL) has become over half of the portfolio.
In this video, Travis Hoium goes through the Apple position and the top five stocks, which make up 80% of this massive portfolio.
*Stock prices used were end-of-day prices of Dec. 12, 2023. The video was published on Dec. 13, 2023.
Should you invest $1,000 in Berkshire Hathaway right now?
Before you buy stock in Berkshire Hathaway, 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 Berkshire Hathaway wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Bank of America 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. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Travis Hoium has positions in Alphabet, Apple, and Berkshire Hathaway. The Motley Fool has positions in and recommends Alphabet, Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Chevron and Occidental Petroleum and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. 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.
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Tech stock Apple (NASDAQ: AAPL) has become over half of the portfolio. And while he is known for buying companies for cheap and holding for decades, he's made some big moves in recent years. In this video, Travis Hoium goes through the Apple position and the top five stocks, which make up 80% of this massive portfolio.
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Tech stock Apple (NASDAQ: AAPL) has become over half of the portfolio. Before you buy stock in Berkshire Hathaway, 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 Berkshire Hathaway wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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Tech stock Apple (NASDAQ: AAPL) has become over half of the portfolio. Before you buy stock in Berkshire Hathaway, 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 Berkshire Hathaway wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 11, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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Tech stock Apple (NASDAQ: AAPL) has become over half of the portfolio. Before you buy stock in Berkshire Hathaway, 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 Berkshire Hathaway wasn't one of them. Travis Hoium has positions in Alphabet, Apple, and Berkshire Hathaway.
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12117.0
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2023-12-12 00:00:00 UTC
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ANALYSIS-Investors cheer Fed's dovish pivot, as focus shifts to 2024 risks
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AAPL
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https://www.nasdaq.com/articles/analysis-investors-cheer-feds-dovish-pivot-as-focus-shifts-to-2024-risks
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nan
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nan
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By Lewis Krauskopf and David Randall
NEW YORK, Dec 14 (Reuters) - A dovish shift from the Federal Reserve has put record highs in sight for U.S. stocks and sent Treasury yields tumbling, even as some investors worry the market may be moving too fast given an uncertain outlook for the economy and corporate earnings.
The Fed held interest rates steady on Wednesday and signaled in new economic projections that the historic tightening of U.S. monetary policy engineered over the last two years is at an end and lower borrowing costs are coming in 2024.
The message was more dovish than many investors were expecting. Plunging Treasury yields helped the S&P 500 .SPX rise nearly 1.4% on Wednesday, the biggest gain in the index on a day that the Fed issued its monetary policy statement since July 2022. The benchmark U.S. 10-year Treasury yield, which moves inversely to bond prices, stood at around 3.96% on Thursday morning, the lowest level since late July. US10YT=RR.
"The Fed is done raising rates, and the market could not be more thrilled to have higher conviction in that," said Matthew Miskin, co-chief investment strategist at John Hancock Investment Management.
The Fed’s view is now more aligned with that of investors - though markets remain far more dovish in their outlook.
Seventeen out of 19 Fed officials project that the policy rate will be lower by the end of 2024 than it is now - with the median projection showing a fall to 4.6% from the current 5.25%-5.50% range. That compares with a rate of 3.847% reflected in futures to the Fed’s policy rate, LSEG data showed.
With few major macroeconomic events expected for the rest of December, the S&P 500 could have the momentum to end the year by matching or exceeding the closing high it set in January 2022. The index is now less than 2% below that record of 4,796.56. The Dow Jones Industrial Average .DJI marked a record high close on Wednesday, its first since January 2022, along with shares of Apple IncAAPL.O, the world's most valuable company.
Seasonal factors could provide a tailwind: December has been the third-best month for the S&P 500 since 1950, with the second half of the month typically stronger than the first, according to data from LPL Financial.
Support could also come from formerly bearish investors' abandoning their positions. Data from BofA Global Research showed that leveraged funds “are not bullish and continue to fight rallies” in stocks after increasing their net short in the face of the S&P 500’s fourth-quarter rebound, the bank said in a recent report.
“It’s getting hard for bears to have something to point to,” said Jack Janasiewicz, a portfolio manager at Natixis Investment Managers Solutions, who recently increased his equity exposure to take advantage of seasonal trends.
Still, many investors are wondering how much of the Fed’s dovishness has already been priced in during a rally that has seen the S&P 500 rise more than 22% this year. Next year, the economy must walk a fine line to satisfy the “Goldilocks” narrative of cooling inflation coupled with still-resilient growth.
“Into this year, the market had gotten cheaper ... sentiment was bearish. Now you go into next year, the consensus is soft landing, the multiple is much higher, the earnings estimates are higher, and I think that is going to make it a tougher market environment,” said Miskin, whose firm is modestly underweight stocks versus bonds, reflecting somewhat defensive positioning.
The S&P 500 was recently trading at 19.1 times forward earnings estimates, versus its long-term average of 15.6 times, according to LSEG Datastream. S&P 500 company earnings are expected to rise 11.4% in 2024, after a 2.6% increase in 2023, according to LSEG data.
Mike Sanders, head of fixed income at Madison Investments, said the market is “far, far more aggressive in cuts than even what the Fed let on in a very dovish statement.”
The key focus of the next six months will be whether inflation can continue to fall while the jobs market remains stable, said Sanders, who is bullish five-year Treasuries. “We need to be certain that the soft landing isn’t just a prelude for a hard landing,” he said.
Carol Schleif, chief investment officer with the BMO Family Office, will be watching the health of the consumer as "we finish out the holiday season," including how consumers "are able to absorb higher credit card bills when they come in January after the holiday selling season."
Jason Pride, chief of investment strategy and research at Glenmede, said the Fed’s latest economic projections appear to forecast a soft landing.
"However, there has never been an instance where rates have remained this high for this long without causing collateral damage for the economy," Pride said.
Stocks love the Fed again https://tmsnrt.rs/3v4nD2u
(Reporting by Lewis Krauskopf and David Randall; additional reporting by Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and Leslie Adler)
((lewis.krauskopf@thomsonreuters.com; 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.
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The Dow Jones Industrial Average .DJI marked a record high close on Wednesday, its first since January 2022, along with shares of Apple IncAAPL.O, the world's most valuable company. By Lewis Krauskopf and David Randall NEW YORK, Dec 14 (Reuters) - A dovish shift from the Federal Reserve has put record highs in sight for U.S. stocks and sent Treasury yields tumbling, even as some investors worry the market may be moving too fast given an uncertain outlook for the economy and corporate earnings. The Fed held interest rates steady on Wednesday and signaled in new economic projections that the historic tightening of U.S. monetary policy engineered over the last two years is at an end and lower borrowing costs are coming in 2024.
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The Dow Jones Industrial Average .DJI marked a record high close on Wednesday, its first since January 2022, along with shares of Apple IncAAPL.O, the world's most valuable company. That compares with a rate of 3.847% reflected in futures to the Fed’s policy rate, LSEG data showed. The S&P 500 was recently trading at 19.1 times forward earnings estimates, versus its long-term average of 15.6 times, according to LSEG Datastream.
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The Dow Jones Industrial Average .DJI marked a record high close on Wednesday, its first since January 2022, along with shares of Apple IncAAPL.O, the world's most valuable company. By Lewis Krauskopf and David Randall NEW YORK, Dec 14 (Reuters) - A dovish shift from the Federal Reserve has put record highs in sight for U.S. stocks and sent Treasury yields tumbling, even as some investors worry the market may be moving too fast given an uncertain outlook for the economy and corporate earnings. Now you go into next year, the consensus is soft landing, the multiple is much higher, the earnings estimates are higher, and I think that is going to make it a tougher market environment,” said Miskin, whose firm is modestly underweight stocks versus bonds, reflecting somewhat defensive positioning.
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The Dow Jones Industrial Average .DJI marked a record high close on Wednesday, its first since January 2022, along with shares of Apple IncAAPL.O, the world's most valuable company. The message was more dovish than many investors were expecting. The Fed’s view is now more aligned with that of investors - though markets remain far more dovish in their outlook.
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12118.0
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2023-12-12 00:00:00 UTC
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Guru Fundamental Report for AAPL
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AAPL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-27
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nan
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nan
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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
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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.
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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.
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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.
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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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12119.0
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2023-12-12 00:00:00 UTC
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DGRW, CEW: Big ETF Inflows
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AAPL
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https://www.nasdaq.com/articles/dgrw-cew%3A-big-etf-inflows
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nan
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nan
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the WisdomTree U.S. Quality Dividend Growth Fund, which added 24,250,000 units, or a 15.4% increase week over week. Among the largest underlying components of DGRW, in morning trading today Microsoft is off about 1.6%, and Apple is higher by about 0.5%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree Emerging Currency Strategy Fund, which added 200,000 units, for a 40.0% increase in outstanding units.
VIDEO: DGRW, CEW: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among the largest underlying components of DGRW, in morning trading today Microsoft is off about 1.6%, and Apple is higher by about 0.5%. And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree Emerging Currency Strategy Fund, which added 200,000 units, for a 40.0% increase in outstanding units. VIDEO: DGRW, CEW: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the WisdomTree U.S. Quality Dividend Growth Fund, which added 24,250,000 units, or a 15.4% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree Emerging Currency Strategy Fund, which added 200,000 units, for a 40.0% increase in outstanding units. VIDEO: DGRW, CEW: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the WisdomTree U.S. Quality Dividend Growth Fund, which added 24,250,000 units, or a 15.4% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree Emerging Currency Strategy Fund, which added 200,000 units, for a 40.0% increase in outstanding units. VIDEO: DGRW, CEW: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the WisdomTree U.S. Quality Dividend Growth Fund, which added 24,250,000 units, or a 15.4% increase week over week. Among the largest underlying components of DGRW, in morning trading today Microsoft is off about 1.6%, and Apple is higher by about 0.5%. And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree Emerging Currency Strategy Fund, which added 200,000 units, for a 40.0% increase in outstanding units.
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12120.0
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2023-12-12 00:00:00 UTC
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Technology Sector Update for 12/13/2023: AAPL, TTWO, META
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-12-13-2023%3A-aapl-ttwo-meta
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nan
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nan
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Tech stocks were mixed Wednesday afternoon with the Technology Select Sector SPDR Fund (XLK) up 0.1% and the SPDR S&P Semiconductor ETF (XSD) down 0.8%.
The Philadelphia Semiconductor index fell 0.3%.
In corporate news, Apple (AAPL) supplier Foxconn received approval to invest at least $1 billion more in a plant in India that will make Apple products, Bloomberg News reported Wednesday. Apple shares rose 1.1%.
Meta Platforms (META) allegedly ignored its own lawyers' warning of the repercussions of using thousands of pirated books to train its AI models, Reuters reported late Tuesday. The shares were little changed.
Take-Two Interactive Software (TTWO) will be added to the Nasdaq-100 Index, while Seagen (SGEN) will be removed as part of the index's annual reconstitution from Monday. Take-Two gained 2.9%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In corporate news, Apple (AAPL) supplier Foxconn received approval to invest at least $1 billion more in a plant in India that will make Apple products, Bloomberg News reported Wednesday. Tech stocks were mixed Wednesday afternoon with the Technology Select Sector SPDR Fund (XLK) up 0.1% and the SPDR S&P Semiconductor ETF (XSD) down 0.8%. Meta Platforms (META) allegedly ignored its own lawyers' warning of the repercussions of using thousands of pirated books to train its AI models, Reuters reported late Tuesday.
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In corporate news, Apple (AAPL) supplier Foxconn received approval to invest at least $1 billion more in a plant in India that will make Apple products, Bloomberg News reported Wednesday. The Philadelphia Semiconductor index fell 0.3%. Apple shares rose 1.1%.
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In corporate news, Apple (AAPL) supplier Foxconn received approval to invest at least $1 billion more in a plant in India that will make Apple products, Bloomberg News reported Wednesday. Tech stocks were mixed Wednesday afternoon with the Technology Select Sector SPDR Fund (XLK) up 0.1% and the SPDR S&P Semiconductor ETF (XSD) down 0.8%. Take-Two Interactive Software (TTWO) will be added to the Nasdaq-100 Index, while Seagen (SGEN) will be removed as part of the index's annual reconstitution from Monday.
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In corporate news, Apple (AAPL) supplier Foxconn received approval to invest at least $1 billion more in a plant in India that will make Apple products, Bloomberg News reported Wednesday. Tech stocks were mixed Wednesday afternoon with the Technology Select Sector SPDR Fund (XLK) up 0.1% and the SPDR S&P Semiconductor ETF (XSD) down 0.8%. Apple shares rose 1.1%.
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12121.0
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2023-12-12 00:00:00 UTC
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Analysts Expect This Russell 2000 Penny Stock to Double
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AAPL
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https://www.nasdaq.com/articles/analysts-expect-this-russell-2000-penny-stock-to-double
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nan
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nan
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Investing in penny stocks is not for the faint-hearted. Typically, stocks priced below $5 are defined as penny stocks - and the share prices of these companies are often extremely volatile, but they also provide shareholders with the potential to derive game-changing returns over time.
Several big tech companies, including Apple (AAPL) and Amazon (AMZN), were once penny stocks that have delivered market-thumping gains for long-term shareholders. However, early investors in these tech titans, too, had to endure multiple pullbacks of over 80% several times on the way to outsized returns.
Investors with a large risk appetite can consider investing a small portion of their equity portfolio in penny stocks that have the potential to outpace the broader markets. One penny stock worth considering around current levels is Opko Health (OPK) - a member of the Russell 2000 Index (RUT) that analysts expect to more than double over the next 12 months.
www.barchart.com
An Overview of OPKO Health
Valued at $1.1 billion by market cap, Opko Health is a healthcare company engaged in the diagnostics and pharmaceuticals businesses in the Americas, Europe, Israel, and other international markets.
A diversified diagnostic platform, Opko Health owns and operates BioReference, one of the largest laboratories in the U.S., with a leading position in verticals such as Oncology and Urology. Following the COVID-19 pandemic, BioReference has transitioned towards core and specialty diagnostics.
It also offers the 4Kscore Test, an FDA-approved blood test that helps assess the probability of aggressive prostate cancer in patients. Last year, Opko acquired ModeX Therapeutics, a biotech company that develops multi-specific immune therapies for cancer and infectious diseases.
What's Driving Growth at Opko?
Similar to other healthcare companies, Opko Health benefited from the COVID-19 pandemic, allowing it to increase sales from $902 million in 2019 to $1.43 billion in 2020 and $1.77 billion by 2021.
However, as the virus was brought under control, sales fell to $1 billion in 2022, and are forecast to decline by 14.4% to $859 million this year. OPK remains unprofitable, but is forecast to narrow its losses in each of the next two fiscal years.
BioReference is among the largest full-service laboratories in the U.S., serving all 50 states. It has labs in New Jersey, Texas, Florida, and California, offering more than 3,000 tests. The lab serves roughly 10 million patients each year while operating high throughput facilities and specialty labs.
The total U.S. lab market is valued at $104 billion, providing Opko Health with enough room to grow its top line, given it reported sales of $868 million over the last four quarters.
In early 2023, OPKO secured FDA approval for Ngnela, which aims to develop diagnostic tests for the early detection of cancer. Its subsidiary ModeX also bagged an initial contract worth $59 million from the Biomedical Advanced Research Development Authority to develop antibodies against viral infectious disease threats. On reaching certain milestones, ModeX will be eligible for an additional grant totaling $109 million.
What Is the Target Price for This Penny Stock?
Along with the quiet endorsement of heavy insider buying, each of the five analysts tracking OPK stock has a “strong buy” rating on the healthcare company. The average target price for OPK is $3.60, indicating an upside potential of almost 137% from current levels.
www.barchart.com
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Several big tech companies, including Apple (AAPL) and Amazon (AMZN), were once penny stocks that have delivered market-thumping gains for long-term shareholders. Investors with a large risk appetite can consider investing a small portion of their equity portfolio in penny stocks that have the potential to outpace the broader markets. One penny stock worth considering around current levels is Opko Health (OPK) - a member of the Russell 2000 Index (RUT) that analysts expect to more than double over the next 12 months.
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Several big tech companies, including Apple (AAPL) and Amazon (AMZN), were once penny stocks that have delivered market-thumping gains for long-term shareholders. One penny stock worth considering around current levels is Opko Health (OPK) - a member of the Russell 2000 Index (RUT) that analysts expect to more than double over the next 12 months. www.barchart.com An Overview of OPKO Health Valued at $1.1 billion by market cap, Opko Health is a healthcare company engaged in the diagnostics and pharmaceuticals businesses in the Americas, Europe, Israel, and other international markets.
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Several big tech companies, including Apple (AAPL) and Amazon (AMZN), were once penny stocks that have delivered market-thumping gains for long-term shareholders. Typically, stocks priced below $5 are defined as penny stocks - and the share prices of these companies are often extremely volatile, but they also provide shareholders with the potential to derive game-changing returns over time. www.barchart.com An Overview of OPKO Health Valued at $1.1 billion by market cap, Opko Health is a healthcare company engaged in the diagnostics and pharmaceuticals businesses in the Americas, Europe, Israel, and other international markets.
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Several big tech companies, including Apple (AAPL) and Amazon (AMZN), were once penny stocks that have delivered market-thumping gains for long-term shareholders. Typically, stocks priced below $5 are defined as penny stocks - and the share prices of these companies are often extremely volatile, but they also provide shareholders with the potential to derive game-changing returns over time. The total U.S. lab market is valued at $104 billion, providing Opko Health with enough room to grow its top line, given it reported sales of $868 million over the last four quarters.
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12122.0
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2023-12-12 00:00:00 UTC
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Foxconn to invest additional $1.7 bln in India's Karnataka state
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AAPL
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https://www.nasdaq.com/articles/foxconn-to-invest-additional-%241.7-bln-in-indias-karnataka-state
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nan
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nan
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Adds background in paragraphs 2-6
Dec 12 (Reuters) - Apple supplier Foxconn 2317.TW plans to invest an additional 139.11 billion rupees ($1.67 billion) in India's Karnataka state, the state government said in a statement on Tuesday.
The Taiwan-based company, which assembles around 70% of iPhones and is the world's largest contract manufacturer, has been diversifying production away from China following COVID-19 disruptions and geopolitical tensions.
It has rapidly expanded its presence in India over the past year by investing heavily in manufacturing facilities in the south of the country.
In Karnataka state itself, the company announced in August an investment of $600 million in two projects to make casing components for iPhones and chip-making equipment.
Foxconn is also expected to start manufacturing iPhones in the southern state by April 2024 - a project expected to create around 50,000 jobs.
The government did not elaborate on the latest plans for the additional investment in Karnataka, and Foxconn did not immediately respond to an email seeking comment.
($1 = 83.3900 Indian rupees)
(Reporting by Munsif Vengattil; Writing by Kanjyik Ghosh and Sakshi Dayal; Editing by Devika Syamnath and Tomasz Janowski)
((Kanjyik.Ghosh@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Taiwan-based company, which assembles around 70% of iPhones and is the world's largest contract manufacturer, has been diversifying production away from China following COVID-19 disruptions and geopolitical tensions. In Karnataka state itself, the company announced in August an investment of $600 million in two projects to make casing components for iPhones and chip-making equipment. The government did not elaborate on the latest plans for the additional investment in Karnataka, and Foxconn did not immediately respond to an email seeking comment.
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Adds background in paragraphs 2-6 Dec 12 (Reuters) - Apple supplier Foxconn 2317.TW plans to invest an additional 139.11 billion rupees ($1.67 billion) in India's Karnataka state, the state government said in a statement on Tuesday. Foxconn is also expected to start manufacturing iPhones in the southern state by April 2024 - a project expected to create around 50,000 jobs. The government did not elaborate on the latest plans for the additional investment in Karnataka, and Foxconn did not immediately respond to an email seeking comment.
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Adds background in paragraphs 2-6 Dec 12 (Reuters) - Apple supplier Foxconn 2317.TW plans to invest an additional 139.11 billion rupees ($1.67 billion) in India's Karnataka state, the state government said in a statement on Tuesday. In Karnataka state itself, the company announced in August an investment of $600 million in two projects to make casing components for iPhones and chip-making equipment. Foxconn is also expected to start manufacturing iPhones in the southern state by April 2024 - a project expected to create around 50,000 jobs.
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Adds background in paragraphs 2-6 Dec 12 (Reuters) - Apple supplier Foxconn 2317.TW plans to invest an additional 139.11 billion rupees ($1.67 billion) in India's Karnataka state, the state government said in a statement on Tuesday. The Taiwan-based company, which assembles around 70% of iPhones and is the world's largest contract manufacturer, has been diversifying production away from China following COVID-19 disruptions and geopolitical tensions. It has rapidly expanded its presence in India over the past year by investing heavily in manufacturing facilities in the south of the country.
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12123.0
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2023-12-12 00:00:00 UTC
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Time for Apple ETFs on Optimism for Holiday Season & Beyond?
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AAPL
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https://www.nasdaq.com/articles/time-for-apple-etfs-on-optimism-for-holiday-season-beyond
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nan
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nan
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Apple Inc. AAPL has recorded more than 50% gains this year (as of Dec 11, 2023). However, its performance lagged some of its tech peers due to subdued demand for its hardware products, influenced by a cautious consumer sentiment.
But the fate of Apple could rebound from this holiday season. At least, Wedbush analyst Daniel Ives believes so. Even Warrant Buffett’s Berkshire Hathaway has 50% of its weight in Apple, up from about 39% in the fourth quarter of 2022. Let’s delve a little deeper (read: Buffett's Favorite 4 Sectors: ETFs in Focus).
Insight From Wedbush Analyst Daniel Ives
Wedbush analyst Daniel Ives, who maintains an Outperform rating on Apple, has raised the price target from $240 to $250. Ives holds an optimistic view regarding Apple's future, predicting that it will become the first company to reach a market capitalization of $4 trillion.
Apple stock was priced at $193.18 with a market cap of $3.04 trillion at the end of Dec 11, 2023. Ives anticipates that this target of $4 trillion market cap will likely be achieved by the end of 2024. This positive outlook stems from the expected growth and monetization prospects for the company in the upcoming year.
Expectations for a Strong Holiday Season
The analyst also foresees a robust holiday season for Apple, with expectations of iPhone sales outpacing forecasts for the December quarter. Strong upgrade activity in both the United States and China is also expected to contribute significantly to this favorable trend.
What Lies Ahead in 2024?
Ives highlights several factors that contribute to Apple's positive outlook. These include an expected increase in the average selling price of Apple products, projecting it to be $925 compared to the range of $825-$850 observed in recent years.
Shares of the tech giant suffered in September amid reports of China planning to expand a ban on the use of iPhones to government-backed agencies and state companies. These concerns are expected to moderate as Apple appears to be weakening manufacturing ties with China. Talks are doing rounds that Apple is relocating its manufacturing base from China to India (read: What Lies Ahead for Apple ETFs After iPhone Use Ban?).
For 2024, Apple anticipates potential growth opportunities with new MacBooks featuring M3 chips and the launch of the Vision Pro headset. Apple’s focus on augmented reality/virtual reality (AR/VR) technologies presents growth opportunities for the long haul.
Subdued Hardware Sales Growth to Be Nullified by Strong Services Revenues?
Ives points out that Services revenues have been experiencing steady double-digit growth. Apple’s Services and Wearables businesses are expected to drive top-line growth in fiscal 2024 and beyond. While Apple's core business revolves mainly around its flagship iPhone, the Services division has become the company's cash cow lately.
Apple's efforts to expand its ecosystem through collaborations with companies like Samsung and Amazon bode well for the Services sector. The subscription-based video streaming, news, and gaming services are anticipated to thrive due to Apple's extensive user base. Plus, the App Store's strong sales, combined with the widespread adoption of Apple Pay and Apple Music, have also contributed to this growth.
What Does Valuation Say About the Stock?
Apple shares are currently trading at 28.41X forward 12-month earnings, which compares to 27.72X for the Zacks sub-industry, 24.4X for the Zacks sector and 19.09X for the S&P 500 Index.
Although Apple’s current multiple is higher than the sub-industry, it is still lower than sub-industry’s five-year high of 32.32X.
Are ETFs Better Bets?
Investors intending to follow Warren Buffett but still wary of the slowing sales of Apple may take the ETF route. This is because ETFs helps investors to mitigate one company’s average performance with the other companies’ stellar results.
Below we highlight a few ETFs with heavy exposure to Apple for investors seeking to bet on the stock with much lower risk.
iShares Dow Jones US Technology ETF IYW – AAPL takes the second spot with 18.07% weight. The fund has a Zacks Rank #2 (Buy).
Select Sector SPDR Technology ETF XLK – AAPL holds the second spot with 22.69% weight. The fund has a Zacks Rank #2.
Vanguard Information Technology ETF VGT – AAPL occupies the first location with 20.40% weight. The fund has a Zacks Rank #2.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Apple Inc. (AAPL) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
iShares U.S. Technology ETF (IYW): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
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.
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Apple Inc. AAPL has recorded more than 50% gains this year (as of Dec 11, 2023). iShares Dow Jones US Technology ETF IYW – AAPL takes the second spot with 18.07% weight. Select Sector SPDR Technology ETF XLK – AAPL holds the second spot with 22.69% weight.
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Select Sector SPDR Technology ETF XLK – AAPL holds the second spot with 22.69% weight. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Apple Inc. AAPL has recorded more than 50% gains this year (as of Dec 11, 2023).
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Apple Inc. AAPL has recorded more than 50% gains this year (as of Dec 11, 2023). iShares Dow Jones US Technology ETF IYW – AAPL takes the second spot with 18.07% weight.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports iShares U.S. Technology ETF (IYW): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Apple Inc. AAPL has recorded more than 50% gains this year (as of Dec 11, 2023). iShares Dow Jones US Technology ETF IYW – AAPL takes the second spot with 18.07% weight.
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12124.0
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2023-12-12 00:00:00 UTC
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Apple Nears All-Time High: Is the Tech Giant Too Extended?
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AAPL
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https://www.nasdaq.com/articles/apple-nears-all-time-high%3A-is-the-tech-giant-too-extended-0
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nan
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nan
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Apple stock has been in ultrasonic mode this year. After a series of higher highs and higher lows along with fresh 52-week highs, Apple AAPL shares have now soared back near all-time highs, as the iPhone maker has benefitted from strength in the large-cap tech space. The bullish theme around artificial intelligence certainly hasn’t hurt either.
Following a greater than 50% surge in 2023, are Apple shares now too far extended, or is the rally just getting underway?
Image Source: StockCharts
Buying at New All-Time Highs
Purchasing stocks at new all-time highs following a bear market has proven to be successful in the past. It’s the market’s way of telling us that higher prices are on the horizon. And when we analyze the state of the economy with a sustained deceleration in inflation, better-than-expected corporate earnings, and a resilient U.S. consumer, there’s plenty of reasons to suspect that the momentum can continue.
Despite the technical progress this year, most professional fund managers (along with individual investors) were underweight stocks, missing the majority of the rally. The lack of respect for the market’s recovery aided the bullish move off the 2022 bear market lows.
It’s normal to expect that the rally won’t continue, but history tells us otherwise. The S&P 500 is less than 4% away from its own all-time high set back in January of 2022. The previous 14 times that the blue-chip index went at least a full year without a new high and then finally made one, a year later it was higher 13/14 times and up nearly 15% on average.
The Business of Apple
Apple is engaged in the designing, manufacturing, and marketing of mobile communication and media devices, personal computers, and portable digital music players. Headquartered in Cupertino, California, Apple’s well-known products include the iPhone, iPad, Mac, and Apple TV, along with its software applications like iOS and the MAC OS X operating systems.
In addition to the sales generated from the devices mentioned above, Apple’s business contains a Services segment that includes revenues from cloud services, the App Store, Apple Music, AppleCare, Apple Pay, as well as other licensing services that have become a major cash cow. Apple currently has more than 935 million paid subscribers across the Services portfolio.
If that all wasn’t enough, Apple dominates the Wearables market, as consumers continue to adopt products like the AirPods and Apple Watch. Apple has made significant headway in this area, strengthening its presence in the personal health monitoring space. Other services include Apple News+, Apple Card, and Apple Arcade.
An increased focus on autonomous vehicles and augmented reality technologies presents a growth opportunity over the long-term. Apple is expected to ramp up its efforts with new offerings, and has clearly benefitted from the AI theme this year.
Apple Stock – The Zacks Rundown
Apple is part of the Zacks Computer – Mini Computers industry, which currently ranks in the top 36% of all Zacks Ranked Industries. Because it is ranked in the top half of all industries, we expect this group to outperform the market over the next 3 to 6 months, just as it has year-to-date with a 50% return:
Image Source: Zacks Investment Research
Historical research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Apple has exceeded earnings estimates in three of the past four quarters. The company most recently delivered fiscal fourth-quarter earnings back in November of $1.46/share, beating the $1.39 Zacks Consensus Estimate by 5.04%. Apple has delivered a trailing four-quarter average earnings surprise of 3.47%.
AAPL is currently a Zacks Rank #3 (Hold) stock. The tech giant is projected to see earnings grow 7% in the current fiscal year on revenues of $393.4 billion. Given Apple’s history of beating estimates, it wouldn’t be too surprising if these figures ended up being a bit light.
What to Do Now
Buying stocks when they make new highs has proven to be profitable throughout history. A stock eclipsing a previous high should be viewed as a sign of strength. Apple appears to be breaking out of a multi-month consolidation pattern, bolstering the bullish case.
The market is telling us to expect the unexpected. A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs. Make sure to keep an eye on this tech behemoth as the stock inches closer to a new all-time high.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
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.
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A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs. After a series of higher highs and higher lows along with fresh 52-week highs, Apple AAPL shares have now soared back near all-time highs, as the iPhone maker has benefitted from strength in the large-cap tech space. AAPL is currently a Zacks Rank #3 (Hold) stock.
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After a series of higher highs and higher lows along with fresh 52-week highs, Apple AAPL shares have now soared back near all-time highs, as the iPhone maker has benefitted from strength in the large-cap tech space. A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs. AAPL is currently a Zacks Rank #3 (Hold) stock.
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After a series of higher highs and higher lows along with fresh 52-week highs, Apple AAPL shares have now soared back near all-time highs, as the iPhone maker has benefitted from strength in the large-cap tech space. AAPL is currently a Zacks Rank #3 (Hold) stock. A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs.
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After a series of higher highs and higher lows along with fresh 52-week highs, Apple AAPL shares have now soared back near all-time highs, as the iPhone maker has benefitted from strength in the large-cap tech space. AAPL is currently a Zacks Rank #3 (Hold) stock. A buoyant U.S. consumer along with a bullish artificial intelligence theme have helped push tech stocks like AAPL back near previous highs.
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12125.0
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2023-12-12 00:00:00 UTC
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1 Fintech Stock to Buy at a Bargain in December
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AAPL
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https://www.nasdaq.com/articles/1-fintech-stock-to-buy-at-a-bargain-in-december
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nan
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nan
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Sometimes being a contrarian can pay off. While it can be a challenge, doing your own homework and not following the crowd are attributes that distinguish some of the best investors.
When it comes to investing in a growth industry, it can be easy to get bogged down by the sheer number of players in the sector looking to capitalize on the same themes. Many investors flock to -- or shun -- the same stocks without really understanding the fundamentals of each underlying business. As a result, some solid companies fall out of favor and are seen as poor opportunities.
For fintech in particular, online payments company PayPal (NASDAQ: PYPL) seems to fit into the category of a negatively perceived stock. As PayPal shares trade near all-time lows, a thorough analysis of the business suggests that now is a lucrative time to scoop up some shares on the dip.
Is PayPal's business broken?
PayPal is an online transactions platform that helps both buyers and sellers, offering a number of merchant solutions within its ecosystem and playing an integral role in the world of digital payments. However, a cursory look at PayPal's financial results might suggest its best days are behind it. The table below illustrates some important metrics for PayPal over the past year.
CATEGORY Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023
Total payment volume (TPV) $336.9 billion $357.4 billion $354.5 billion $376.5 billion $387.7 billion
Net revenue $6.8 billion $7.4 billion $7.0 billion $7.2 billion $7.4 billion
Operating margin 16.3% 16.8% 14.2% 15.5% 15.7%
Data source: PayPal Investor Relations.
Two takeaways from the figures above are that PayPal's revenue growth is lumpy and operating margin is falling. PayPal faces intense competition, and it's not just from traditional financial institutions. The advent of payment services from tech behemoths like Apple and Alphabet has given investors some trepidation over PayPal's market position. On the surface, the results above might give credence to the notion that PayPal is losing market share.
However, a contrarian might think that as online shopping and digital payments become more common, PayPal's addressable market is actually expanding -- thereby providing a low barrier to entry for new competition.
According to research from the International Trade Association (ITA), the global business-to-business and business-to-consumer e-commerce markets are projected to grow at compound annual rates of 14.5% and 14.4%, respectively, through 2026 and 2027. In total, the ITA forecasts more than $40 trillion in e-commerce sales by 2027, with Asia being one of the biggest contributing markets.
Image source: Getty Images.
Does PayPal have any catalysts?
According to the company's third-quarter earnings, while total payment volume (TPV) increased 15% year over year, international TPV grew 19% "driven by strength in Europe as well as improvements in Asia." The tailwinds in Asia could be a subtle growth driver as platforms that support PayPal, including shopping app Temu operated by PDD Holdings, continue to gain traction over the likes of Alibaba.
A more near-term catalyst for PayPal stems from activity surrounding holiday shopping.
Our prelim PayPal #s from Thanksgiving-Cyber Monday show the impact we have with customers:
🟢Processed approx. 400M transactions
🟢Put ~$8M back in customers' hands with cash back + savings
🟢Cyber Mon was largest shopping day of the year with approx. $5.8B in TPV and 87M txns
-- Alex Chriss (@acce) November 28, 2023
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PayPal is an online transactions platform that helps both buyers and sellers, offering a number of merchant solutions within its ecosystem and playing an integral role in the world of digital payments. According to research from the International Trade Association (ITA), the global business-to-business and business-to-consumer e-commerce markets are projected to grow at compound annual rates of 14.5% and 14.4%, respectively, through 2026 and 2027. The tailwinds in Asia could be a subtle growth driver as platforms that support PayPal, including shopping app Temu operated by PDD Holdings, continue to gain traction over the likes of Alibaba.
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For fintech in particular, online payments company PayPal (NASDAQ: PYPL) seems to fit into the category of a negatively perceived stock. Total payment volume (TPV) $336.9 billion $357.4 billion $354.5 billion $376.5 billion $387.7 billion Net revenue $6.8 billion $7.4 billion $7.0 billion $7.2 billion $7.4 billion Operating margin 16.3% 16.8% 14.2% 15.5% 15.7% Data source: PayPal Investor Relations. According to the company's third-quarter earnings, while total payment volume (TPV) increased 15% year over year, international TPV grew 19% "driven by strength in Europe as well as improvements in Asia."
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Total payment volume (TPV) $336.9 billion $357.4 billion $354.5 billion $376.5 billion $387.7 billion Net revenue $6.8 billion $7.4 billion $7.0 billion $7.2 billion $7.4 billion Operating margin 16.3% 16.8% 14.2% 15.5% 15.7% Data source: PayPal Investor Relations. The advent of payment services from tech behemoths like Apple and Alphabet has given investors some trepidation over PayPal's market position. However, a contrarian might think that as online shopping and digital payments become more common, PayPal's addressable market is actually expanding -- thereby providing a low barrier to entry for new competition.
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However, a cursory look at PayPal's financial results might suggest its best days are behind it. However, a contrarian might think that as online shopping and digital payments become more common, PayPal's addressable market is actually expanding -- thereby providing a low barrier to entry for new competition. According to the company's third-quarter earnings, while total payment volume (TPV) increased 15% year over year, international TPV grew 19% "driven by strength in Europe as well as improvements in Asia."
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12126.0
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2023-12-12 00:00:00 UTC
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3 Stocking Stuffer Stocks to Buy for Your Loved Ones This Holiday
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AAPL
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https://www.nasdaq.com/articles/3-stocking-stuffer-stocks-to-buy-for-your-loved-ones-this-holiday
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As the holiday season approaches, investors seeking gift-worthy stocks.
Many turn to the portfolio of renowned investor Warren Buffett, CEO of Berkshire Hathaway (NYSE:BRK-B). After all, the focus is on gifts that keep on giving. Therefore, investments can appreciate and generate dividends over time, providing long-term returns and retirement options.
Buffett serves as a role model for long-term investors, offering insights into smart money moves in the market. His successful tech exposure and picks in sectors within his expertise make them noteworthy additions to the watchlist. So, his top picks are essentially guarantee buys. Investors would do well to keep a close watch on his market decisions, strategies, and moves.
Let’s explore these three stocks for a thoughtful and lasting holiday stocking stuffer.
Restaurant Brands (QSR)
Source: Savvapanf Photo / Shutterstock.com
In the midst of the pandemic and high inflation, consumers sought affordable fast food options over dining out. As sentiment improves, Restaurant Brands (NYSE:QSR) stands to benefit.
Priced at $69, QSR stock is undervalued with significant growth potential. And, it’s up 7% year to date (YTD) but below its 2019 peak of $78. Further, JP Morgan Chase raised the price target to $74, indicating a buy rating.
On Thursday, Restaurant Brands achieved a significant technical milestone as its Relative Strength (RS) Rating improved to 82, up from 79 the previous day. The RS Rating, ranging from 1 to 99, assesses a stock’s price performance over the past 52 weeks compared to other stocks. Thus, it provides valuable insights for investors seeking strong performers.
Apple (AAPL)
Source: Moab Republic / Shutterstock
After an autumn decline, Apple (NASDAQ:AAPL) reclaimed its status.
As the world’s most valuable publicly-traded company, it surpassed a $3 trillion market capitalization on December 5. Up 55% in 2023, Apple’s stock reached this milestone for the first time since August. This resurgence reflects investor confidence in Apple’s stability, strong cash flow, and robust shareholder returns. Hence, it’s positioned as a safe haven asset amid economic uncertainties.
Additionally, holiday sales provided an immediate boost to Apple’s profits. But its sustained success in Asian markets is a key driver of long-term stability. Despite a minor dip in 2023, Apple consistently expanded its market share in Asia. By holding only 16% of the total addressable market, this suggests significant growth potential.
Despite the high stock price, analysts express optimism, with 74% recommending a buy. With a consensus fair value around $200 per share, Apple still has room to extend its growth trajectory.
Berkshire Hathaway (BRK-B)
Source: sdx15 / Shutterstock.com
Warren Buffett’s conglomerate, Berkshire Hathaway, reported a resilient Q3. With a 40% year-over-year (YOY) surge in operating profit, it topped $10.8 billion.
Established in 1889, the company operates over 90 subsidiaries in diverse sectors. Notable entities like GEICO and General Re contributed. With a historic cash reserve of $157.2 billion representing 20% of its market cap, Berkshire Hathaway displays financial strength.
Buffett’s success stemmed from cashing in on higher short rates, securing over 5% on cash. With strategic bond yield moves, Buffett purchased short-term Treasury bills. Additionally, $1.1 billion went into share buybacks in the quarter, reaching $7 billion for the year. This solidifies BRK-B as a robust stock to retain.
Buffett’s firm strategically shed holdings, boosting cash reserves for economic resilience and future investments. Omaha-based Berkshire Hathaway faced a notable event with Vice Chairman Charlie Munger’s recent passing. Consider Berkshire as a lasting legacy beyond the Buffett-Munger era.
On the date of publication, Chris MacDonald has a LONG position in QSR, AAPL, BRK-B. 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 Stocking Stuffer Stocks to Buy for Your Loved Ones This Holiday 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.
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Apple (AAPL) Source: Moab Republic / Shutterstock After an autumn decline, Apple (NASDAQ:AAPL) reclaimed its status. On the date of publication, Chris MacDonald has a LONG position in QSR, AAPL, BRK-B. Restaurant Brands (QSR) Source: Savvapanf Photo / Shutterstock.com In the midst of the pandemic and high inflation, consumers sought affordable fast food options over dining out.
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Apple (AAPL) Source: Moab Republic / Shutterstock After an autumn decline, Apple (NASDAQ:AAPL) reclaimed its status. On the date of publication, Chris MacDonald has a LONG position in QSR, AAPL, BRK-B. Many turn to the portfolio of renowned investor Warren Buffett, CEO of Berkshire Hathaway (NYSE:BRK-B).
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Apple (AAPL) Source: Moab Republic / Shutterstock After an autumn decline, Apple (NASDAQ:AAPL) reclaimed its status. On the date of publication, Chris MacDonald has a LONG position in QSR, AAPL, BRK-B. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As the holiday season approaches, investors seeking gift-worthy stocks.
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On the date of publication, Chris MacDonald has a LONG position in QSR, AAPL, BRK-B. Apple (AAPL) Source: Moab Republic / Shutterstock After an autumn decline, Apple (NASDAQ:AAPL) reclaimed its status. Priced at $69, QSR stock is undervalued with significant growth potential.
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12127.0
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2023-12-12 00:00:00 UTC
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Can Equal-Weighted ETFs Outperform the S&P 500 in 2024?
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AAPL
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https://www.nasdaq.com/articles/can-equal-weighted-etfs-outperform-the-sp-500-in-2024
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nan
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nan
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The biggest market story of the year is the outsized role of the Magnificent Seven stocks in the market rally. Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Amazon AMZN, NVIDIA NVDA, Meta Platforms META and Tesla TSLA now account for almost 29% of the S&P 500.
The tech-heavy Nasdaq 100 index had to undergo a special rebalancing earlier this year when the weight of these seven stocks went over 55% of the index.
The weight of the top 10 stocks in the broad index has now increased to 32%, versus the average of 20% over the last 35 years. During the dot-com bubble, the total weight of the top 10 stocks topped out at 25%, according to Goldman Sachs.
Unlike during the tech bubble, these companies are highly profitable, and their valuations, though elevated, are comparable to those seen in recent history.
They have stable cash flows and low leverage and could continue to do well if the economy slows down while interest rates stay at elevated levels for an extended period.
We have seen a broadening of the rally lately. Since bottoming in late October, all sectors except Energy are up. Areas like Real Estate, Financials, and Consumer Discretionary have significantly outperformed the Technology sector over the past month.
The Invesco S&P 500 Equal Weight ETF RSP has outperformed the market-cap-weighted index since its inception in 2003. Investors who are worried about a handful of stocks dominating funds tracking market-cap-weighted indexes have poured $9.5 billion into this ETF year-to-date.
To learn about RSP, First Trust NASDAQ-100 Equal Weighted ETFQQEW, Direxion NASDAQ-100 Equal Weighted Index Shares QQQE and iShares MSCI USA Equal Weighted ETF: EUSA, please watch the short video above.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports
First Trust NASDAQ-100 Equal Weighted ETF (QQEW): ETF Research Reports
Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports
iShares MSCI USA Equal Weighted ETF (EUSA): ETF Research Reports
Meta Platforms, Inc. (META) : Free Stock Analysis Report
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.
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Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Amazon AMZN, NVIDIA NVDA, Meta Platforms META and Tesla TSLA now account for almost 29% of the S&P 500. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports First Trust NASDAQ-100 Equal Weighted ETF (QQEW): ETF Research Reports Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports iShares MSCI USA Equal Weighted ETF (EUSA): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. They have stable cash flows and low leverage and could continue to do well if the economy slows down while interest rates stay at elevated levels for an extended period.
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Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Amazon AMZN, NVIDIA NVDA, Meta Platforms META and Tesla TSLA now account for almost 29% of the S&P 500. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports First Trust NASDAQ-100 Equal Weighted ETF (QQEW): ETF Research Reports Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports iShares MSCI USA Equal Weighted ETF (EUSA): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. To learn about RSP, First Trust NASDAQ-100 Equal Weighted ETFQQEW, Direxion NASDAQ-100 Equal Weighted Index Shares QQQE and iShares MSCI USA Equal Weighted ETF: EUSA, please watch the short video above.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports First Trust NASDAQ-100 Equal Weighted ETF (QQEW): ETF Research Reports Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports iShares MSCI USA Equal Weighted ETF (EUSA): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Amazon AMZN, NVIDIA NVDA, Meta Platforms META and Tesla TSLA now account for almost 29% of the S&P 500. They have stable cash flows and low leverage and could continue to do well if the economy slows down while interest rates stay at elevated levels for an extended period.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Invesco S&P 500 Equal Weight ETF (RSP): ETF Research Reports First Trust NASDAQ-100 Equal Weighted ETF (QQEW): ETF Research Reports Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE): ETF Research Reports iShares MSCI USA Equal Weighted ETF (EUSA): ETF Research Reports Meta Platforms, Inc. (META) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL, Microsoft MSFT, Alphabet GOOGL, Amazon AMZN, NVIDIA NVDA, Meta Platforms META and Tesla TSLA now account for almost 29% of the S&P 500. The Invesco S&P 500 Equal Weight ETF RSP has outperformed the market-cap-weighted index since its inception in 2003.
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12128.0
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2023-12-12 00:00:00 UTC
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The 7 Best Dow Stocks to Buy as America’s GDP Growth Soars
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AAPL
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https://www.nasdaq.com/articles/the-7-best-dow-stocks-to-buy-as-americas-gdp-growth-soars
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There are many reasons for optimism as the U.S. economy continues improving. America’s GDP growth continued to move in the right direction and soared by 5.2% in the third quarter. That strongly suggests that the Dow, composed of 30 of the best U.S. stocks, is worth investing in at the moment.
Generally speaking, investing in the Dow currently makes a lot of sense. It appears that not only will America avoid a recession but also that there’s growth to be had. So, the Dow Jones index is a strong place to be for investors seeking U.S. equity exposure.
McDonald’s (MCD)
Source: Vytautas Kielaitis / Shutterstock
Simply put, McDonald’s (NYSE:MCD) continues to grow incredibly despite its dominant position and size. As mentioned, U.S. GDP grew by 5.2% during the 3rd quarter. Growth at McDonald’s was even higher.
McDonald’s is, of course, a very large firm with a vast footprint. Therefore, it’s necessary to divide its growth along several comparable metrics. Fortunately, they all point to the same conclusion: McDonald’s is thriving. Global sales increased by 8.8% during the Third quarter. In the US, sales increased by 8.1%. Global systemwide sales, which measures McDonald’s owned and operated restaurants and franchisee restaurants, grew by 11.1%. Those metrics should lead investors to the same conclusion: McDonald’s is growing even faster than the rebounding US economy.
The company and its stock tend to thrive across all business cycle periods. It’s safe, continues to grow rapidly, and provides an ultra-dependable dividend for income investors in particular.
Apple (AAPL)
Source: Vytautas Kielaitis / Shutterstock.com
The news that Apple (NASDAQ:AAPL) stock is again flirting with a $3 trillion market capitalization should serve to give investors confidence.
Investor confidence is an area in which Apple currently lacks. According to a recent article by Barron’s, confidence in its shares is quite low based on analyst ratings. 61% of those analysts currently rate Apple as a buy. That is the lowest percentage since August of 2020.
The thrust of that article was that Apple shares can rise above their current market cap because of artificial intelligence. The company has been relatively quiet in relation to its plans related to AI. You can bet that the company is putting together a strategy for when it will announce those plans. When it does so, expect the markets to react positively.
The company has been maligned because of declining sales of late. However, Apple continues investing in growth while returning capital to shareholders. It is not the company to bet against.
Visa (V)
Source: Kikinunchi / Shutterstock.com
Visa (NYSE:V) and other credit card stocks have continuously defied throughout 2023. Cash-strapped American consumers have continued to rack up credit card debt nonetheless. If inflation and recession fears made the lives of Americans more difficult, you wouldn’t have known based on the results of companies like Visa.
Visa cardholders will continue to spend, especially in terms of cross-border payments. In 2023, cross-border volume increased by 20% overall. American consumers continue to satisfy their travel appetite. Beyond that, consumers continue to simply use credit cards more. Visa’s revenues increased by 11% in the most recent quarter, reaching $8.6 billion. As a result, net income increased as well. That translated to Strong per-share earnings growth in 2023 and in the most recent quarter. EPS grew by 21% and 17% during those periods, respectively.
American credit card debt has moved past $1 trillion. That’s a big threat to individual consumers but, in aggregate, will serve credit card companies well moving forward.
Salesforce (CRM)
Source: Sundry Photography / Shutterstock.com
Salesforce (NYSE:CRM) Is currently in a strong position due to multiple factors that are coming together in its favor. Most everyone knows that Salesforce is the largest customer relationship management firm and stock.
That’s particularly important at this moment in the business cycle. Investors expect the Federal Reserve to cut rates as early as March. That will drastically boost overall investment, particularly at the enterprise level. Businesses of all sizes will spend more on growth because lending will cheapen. Those enterprises will heavily invest in customer relationship management to foster growth. Salesforce is the largest CRM and, thus, is in a perfect position at the moment.
In fact, Salesforce is already doing very well. The company recently released its third-quarter results, which also suggests the reason for optimism. Revenues increased by 11% to $8.72 billion. Increasing economic confidence allowed the company to narrow its guidance for full-year growth to 11% as well.
Caterpillar (CAT)
Source: aapsky / Shutterstock.com
When Caterpillar (NYSE:CAT) released earnings at the end of October, the markets did not receive the results well. It certainly wasn’t Caterpillar’s fault. In fact, the company did extraordinarily well, particularly regarding earnings per share. The company’s EPS of $5.52 was far above what Wall Street was expecting.
However, as mentioned, its shares didn’t improve in price by much. The reason was fairly simple: Investor clarity about the economy’s future was much more muddled then. It has since been clarified, and optimism is high. It looks very much like we have avoided a recession.
The Fed is going to cut rates in 2024, likely multiple times. That will catalyze spending and investment across multiple sectors, especially construction. In other words, Caterpillar is looking better and better.
The company has continued to do well despite the high interest environment. Demand for its vehicles has remained high. Despite higher prices, the company has realized higher volumes as well.
IBM (IBM)
Source: JHVEPhoto / Shutterstock.com
IBM (NYSE:IBM) offers income and is well exposed to growth sectors overall. That’s a potent combination. IBM is entrenched in the artificial intelligence sector as well as the quantum computing industry. Investors are highly interested in both. Beyond that, IBM continues to offer a dividend that yields more than 4%.
All of those factors add up to create a stock that is very much worth investing in. Let’s start with the dividend. IBM last reduced its dividends in 1994 and continues to look secure. That dividend yields 4%, which is within the healthy range but also relatively high at the same time. Overall, IBM remains a stock to consider for investors seeking strong income sources.
At the same time, IBM is exposed to important growth sectors, including AI and quantum computing. That means equity offers investors a chance at real growth and provides a more stable income. IBM is well known for its Watson AI and is doing many things in that regard. The company is also entrenched in quantum computing, which promises to improve AI overall.
Cisco Systems (CSCO)
Source: Valeriya Zankovych / Shutterstock.com
Cisco Systems (NASDAQ:CSCO) offers investors steady, reliable income and exposure to continued technology sector growth.
The company sells Internet Protocol networking equipment and services. That means it basically grows along with the overall increase in Internet connectivity. Based on current projections, the company’s top-line growth isn’t expected to be particularly impressive and doesn’t stick out. However, Cisco Systems is amongst the leaders in its business. The company will continue to grow with the secular increases in technology. For example, many firms invest heavily To improve their positions in data centers and AI.
That is reflected at Cisco Systems, which recently announced its strongest fiscal year Q1 results ever. The company’s revenues and profitability reached their highest levels ever.
Meanwhile, investors who purchase CSCO shares also receive a dividend that yields approximately 3.2%. That’s a nice incentive for a company that is very stable and serves to push returns much higher overall for investors.
On the date of publication, Alex Sirois 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.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
More From InvestorPlace
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The Rich Use This Income Secret (NOT Dividends) Far More Than Regular Investors
The post The 7 Best Dow Stocks to Buy as America’s GDP Growth Soars 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.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com The news that Apple (NASDAQ:AAPL) stock is again flirting with a $3 trillion market capitalization should serve to give investors confidence. If inflation and recession fears made the lives of Americans more difficult, you wouldn’t have known based on the results of companies like Visa. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com The news that Apple (NASDAQ:AAPL) stock is again flirting with a $3 trillion market capitalization should serve to give investors confidence. McDonald’s (MCD) Source: Vytautas Kielaitis / Shutterstock Simply put, McDonald’s (NYSE:MCD) continues to grow incredibly despite its dominant position and size. Cisco Systems (CSCO) Source: Valeriya Zankovych / Shutterstock.com Cisco Systems (NASDAQ:CSCO) offers investors steady, reliable income and exposure to continued technology sector growth.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com The news that Apple (NASDAQ:AAPL) stock is again flirting with a $3 trillion market capitalization should serve to give investors confidence. Cisco Systems (CSCO) Source: Valeriya Zankovych / Shutterstock.com Cisco Systems (NASDAQ:CSCO) offers investors steady, reliable income and exposure to continued technology sector growth. 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 The 7 Best Dow Stocks to Buy as America’s GDP Growth Soars appeared first on InvestorPlace.
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Apple (AAPL) Source: Vytautas Kielaitis / Shutterstock.com The news that Apple (NASDAQ:AAPL) stock is again flirting with a $3 trillion market capitalization should serve to give investors confidence. That strongly suggests that the Dow, composed of 30 of the best U.S. stocks, is worth investing in at the moment. Growth at McDonald’s was even higher.
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12129.0
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2023-12-12 00:00:00 UTC
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Is Apple Stock a Buy Now?
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AAPL
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https://www.nasdaq.com/articles/is-apple-stock-a-buy-now-5
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nan
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nan
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Apple (NASDAQ: AAPL) made headlines this week by surpassing a market capitalization of $3 trillion, a level it hadn't seen since August. The company's shares are up 50% year to date, despite repeated declines in its product segments that sent revenue dipping 3% year over year in its fiscal 2023.
Macroeconomic headwinds caught up with Apple over the past 12 months, curbing consumer spending and creating weakness in foreign currencies relative to the U.S. dollar. Yet, its stock and business have remained resilient as loyal investors have continued to believe in its long-term prospects, and its heaps of cash have kept the company expanding.
The stock might be slightly overpriced today, trading at 31 times its earnings, but here's why Apple is still a buy.
A powerful position in tech that is unlikely to dissipate soon
Apple has built brand loyalty that is almost unmatched in tech. Its interconnected ecosystem of products simultaneously deters people from using competing devices and encourages users to gradually branch out into Apple's other offerings.
The popularity of Apple's products has seen it attain leading market shares in multiple industries, holding a 55% share of the U.S. smartphone market.
The company's significant user base came in handy in 2023 as spikes in inflation made people less likely to upgrade their devices. Product revenue faltered, but Apple continued to profit from the sales of past devices through its services.
The tech giant's services business includes income from the App Store and subscription-based platforms like Apple TV+, Music, and iCloud. The digital division has become the fastest-growing part of Apple's business, with revenue rising 9% year over year in fiscal 2023 and outpacing the iPhone for two consecutive years.
Consistent growth from services is positive for Apple's long-term prospects, with profit margins regularly hitting about 70%. By comparison, its products' profit margins hover around 36%.
Apple's potent brand has seen it achieve dominating roles in nearly every new market it has entered. In 2024, the company will launch its first virtual/augmented reality (VR/AR) headset and will likely continue expanding into artificial intelligence (AI). With billions of users worldwide and a free cash flow that hit nearly $100 billion this year, I wouldn't count it out as becoming a top performer in either of those high-growth sectors.
Has Apple earned its premium price tag?
Apple's substantial stock rise this year has made it slightly overpriced. Its forward price-to-earnings ratio (P/E) of 30 and price-to-free cash flow multiple of 31 are high, considering that anything below 10 to 20 for both metrics is generally regarded as a good value.
However, this is Apple, the world's most valuable company that has delivered stock growth of 345% over the last five years. Even if its shares rose half that over the next five years, it would still outperform Alphabet's and Amazon's stock gains since 2018. So, the question remains: Is Apple worth its high valuation?
Data by YCharts
The charts above compare the forward P/E and price-to-free cash flows of some of the biggest names in tech. The figures indicate that shares in Apple are trading at a better value than Amazon, Nvidia, and Microsoft, with only Alphabet potentially a better bargain.
Apple's reputation for reliable gains, loyal user base, and substantial cash reserves make the company a no-brainer for investing in tech. It's one of the cheapest options in the industry and has delivered more five-year growth than most of these companies. Even if it can't replicate the same growth over the next half-decade, the company's share price is still likely to rise significantly with its lucrative services business and expansions into other areas of tech.
The company has earned its high valuation and remains a buy right now.
10 stocks we like better than Apple
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Nvidia. 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.
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Apple (NASDAQ: AAPL) made headlines this week by surpassing a market capitalization of $3 trillion, a level it hadn't seen since August. Macroeconomic headwinds caught up with Apple over the past 12 months, curbing consumer spending and creating weakness in foreign currencies relative to the U.S. dollar. Apple's reputation for reliable gains, loyal user base, and substantial cash reserves make the company a no-brainer for investing in tech.
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Apple (NASDAQ: AAPL) made headlines this week by surpassing a market capitalization of $3 trillion, a level it hadn't seen since August. Consistent growth from services is positive for Apple's long-term prospects, with profit margins regularly hitting about 70%. Apple's substantial stock rise this year has made it slightly overpriced.
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Apple (NASDAQ: AAPL) made headlines this week by surpassing a market capitalization of $3 trillion, a level it hadn't seen since August. The digital division has become the fastest-growing part of Apple's business, with revenue rising 9% year over year in fiscal 2023 and outpacing the iPhone for two consecutive years. Apple's substantial stock rise this year has made it slightly overpriced.
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Apple (NASDAQ: AAPL) made headlines this week by surpassing a market capitalization of $3 trillion, a level it hadn't seen since August. Yet, its stock and business have remained resilient as loyal investors have continued to believe in its long-term prospects, and its heaps of cash have kept the company expanding. The company has earned its high valuation and remains a buy right now.
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2023-12-12 00:00:00 UTC
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Did the Santa Claus Rally Start Early?
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In this podcast, Motley Fool host Dylan Lewis and analysts Jason Moser and Matt Argersinger discuss:
The market's incredible November and why we may not be out of the woods yet on rate hikes.
Why Apple and Goldman Sachs are breaking up their credit card partnership.
Thoughts on Tesla's Cybertruck and the new details we have after this week's showcase.
Two stocks worth watching: Docusign and EPR Properties.
Vivek Pandya, manager of Adobe Digital Insights, talks through the trends he's seeing so far in holiday spending and whether it makes sense to buy now or wait for some of the items on your list.
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.
Should you invest $1,000 in Apple right now?
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This video was recorded on Dec. 01, 2023.
Dylan Lewis: November was one heck of a month for the market. But we may not be out of the woods yet. Motley Fool Money starts. Everybody needs money. That's why they call it money. From Cool Global headquarters, this is Motley Fool Money. It's the Motley Fool Money radio show. I'm Dylan Lewis joining me in the studio. Motley Fool Senior Analysts Jason Moser and Matt Argersinger. Gentlemen, great to have you both here. We've got a tribute to one of the greatest investors of all time, an early look at the holiday shopping trends and of course, stocks on our radar. But we're going to kick off today reflecting on November. Matt, it's a month of thanks and I think a lot of investors very thankful for the month that was.
Matt Argersinger: Very thankful, Dylan. What a month it was indeed. The S&P 500 up more than 9%, Nasdaq 100 which has already been on a super tear this year, was up another 11% in November. Russell 2000 by the way. Small caps which have really not participated finally had a good month up 9% and one of my favorite parts of the market, Real Estate Investment Trust which you have had a horrible year up 12% in November. This is probably the kicker for me guys. This is according to a report from Bank of America, the classic 60, 40 portfolio, 60% stocks, 40% bonds. The much belign 60, 40 portfolio, is least recently that was up 9.6% in November. That was the best month for that strategy in more than 32 years going back to December 1991, the month the USSR dissolved, by the way. That is quite a historic record right there. How about that? It seems like everything did well in November.
Dylan Lewis: Nice to see stocks not alone in the rally bonds in on the action as well. Jason, we typically see a little bit of a Santa rally in December. This one's coming in a little bit earlier for us. What do you see as you look at the past month?
Jason Moser: Well, I think what we saw, we saw a relatively decent earning season. I mean, we saw a lot of companies that there was continued language in regard to scrutinize spending, I heard a couple of elongated sales cycles in there. Still companies are doing a very good job of focusing on the money that's going out. I mean, it's not just about growing that revenue anymore, but a lot of companies are really focused on the money that's going out and they're really doing a good job of pairing that back, making the businesses a little bit more efficient. We're seeing margins expanding in some cases. It's not across the board. There are some pockets of weakness there and some questions. I think it's going to be an interesting holiday season from a retail perspective. But generally speaking, I think particularly considering tech, because that's really been most under the microscope, we are seeing that these companies are taking a look at this and saying, let's focus a little bit more on actually making some money and it's amazing what just shifting that narrative a little bit can really do to investor sentiment.
Dylan Lewis: That was November, and we are here taping on December 1 and as we were heading into production, Fed Chair Jerome Powell turned the lights on at the party and said, hey, we may not be totally done here yet, Matt. [LAUGHTER].
Matt Argersinger: That's right. He gave a speech on a Friday morning and it's something Powell has done a few times, I think over the past, say, year and a half, where he's come on and said, hey everyone, like you said, turn on the lights of the party. Isn't that the worst the music goes out, lights go on, it's awful.
Dylan Lewis: We're here to hang out for a while.
Matt Argersinger: I know, but no, he said hold on. Way too early to say that we're done actually raising rates, which I think is surprising. He says not until we have the full confidence, the Fed has the full confidence that inflation is heading back to our target of 2%. Basically, he said this without saying it. But he said the Fed is not even thinking about lowering rates, which is very in contrast to what we're seeing. Because if you look at, for example, the CME's Fed Watch Tool, looking at the March Fed meeting, they're looking at a 53% chance of a cut. If Pals come out and said we're not even thinking about thinking about cutting, there is a little bit of a conflict here. Now, I would say for all the things Jason said about corporate earnings, I think corporations have done a magnificent job managing their margins, especially during this. But I think one of the reasons the market rallied so much is because there's a sense that, even if the Fed is it might not be lowering, at least they're probably done hiking. We can sort of have a little more confidence in the level of interest rates and we can manage our balance sheets and our credit needs accordingly, that's a big thing. But now, if you're telling me that investors are actually thinking of a Fed cut is coming early in the year, that makes me a little more nervous.
Dylan Lewis: Matt, I'm just impressed that you got through thinking about twice. [LAUGHTER]. Well, cleanly, I struggled through it. Just trying to get out of that once from the big macro, we are going to check in on two big brands. Jason, Apple will be exiting its credit card relationship with Goldman Sachs. The tech firm reportedly submitted a proposal that would end the relationship in the next year. A bit of a change in strategy for both these businesses. This was the culmination of two initiatives for each of them and a new brand of business or a new type of business for both of them. What do you make of this partnership dissolving?
Jason Moser: It feels like it's probably the best solution for both parties involved. This is an interesting story because it brings a lot of companies into play here. You've got Apple and Goldman Sachs of course, but then you've got other companies that are interested in perhaps taking over that Apple business like American Express, or even synchrony. A lot of parties in play here. I think Apple's card aspirations on the one hand it can be seen as an acquisition tool. It's a way for them to give consumers access to more Apple devices. It's an easier way for consumers to be able to finance those devices, give it to you interest free over time, whatever it may be. And for Goldman at the time, it seemed like a reasonable bet in their consumer aspirations. You're saddling up with Apple, one of the biggest networks out there with billions upon billions of users, it feels like. But it just, it hasn't worked out that well and I think it's probably something that was a little bit, both parties were at fault here. I think when you saddle up with Apple, the idea is that you're saddling up with one of the biggest, most important companies in the world. Now, the other side of that coin is that Apple, because of their size, they can really command a lot out of that relationship as well. That typically means lower pricing. Granted, there's higher volume there. But I think also with Apple, this was a way for them to continue increasing engagement. Give people who want to be a part of that Apple universe a reason to stay in that Apple universe. You have your finances with them that means that you're going to find more value in the devices with Apple that you're using, it all makes sense when you look at how this relationship was born and the concessions that Apple demanded from Goldman. They were calling for essentially all applicants to be approved. They want to essentially 100% approval rate, and they went with an atypical billing cycle that essentially was the beginning of the month, whereas all other card companies do it on a rolling basis. That helps smooth out those finances, and so I think Goldman maybe felt like, you know what, this is far more trouble than it's worth. Apple looked at it and saying, well, if it's not going to be Goldman, I'm sure we can find another partner and I think that's ultimately what happens. I think Apple probably continues to try to make this work just with another partner. I would say that other partner better take a look at this example here and maybe push back on some of those demands that Apple's thrown out there.
Dylan Lewis: We've heard for years exactly how difficult it is to be a supplier of Apple. Usually we're talking about small chip companies going into business with them and how those contracts are incredibly demanding. Wind up straining some of the financials of those businesses because Apple can get such favorable terms. Funny to see a company like Goldman Sachs wind up in that same spot.
Jason Moser: Again, I think this is something that for Apple, it's not really a needle mover on the business. It's another service that they can offer and this is clearly becoming more and more of a services business as they work to diversify that revenue away. I don't think Apple card users really care what bank is behind all of this. Most of the time they're not really worried about the issuer of the bank as long as they are still affiliated with that Apple brand, that Apple card. I don't think Apple's going to have any problem finding another partner. But I think it'll be noteworthy how that new relationship is actually structured. Switching gears. It was a busy week for Elon Musk and we're going to maybe sidestep some of the deal book comments and discussion because we did see our first look at some of the details on Tesla's cyber truck. Matt, this was something that was first unveiled as an idea back in 2019. It is now 2023. We have a sense of what this product looks like, some of the costs, some of the specs. What did you think of the announcement?
Matt Argersinger: Well, first of all, I have to say the last few days, it feels like such a perfect representation of Elon Musk's personality. He goes from, like you said, this, let's be fair, bizarre, confusing, maybe even uncomfortable at times interview at Deal Books Summit in New York to the very next day giving this exciting almost Steve Jobs-esque unveiling of the cyber truck in Austin, Texas, or as he put it, the biggest product launch of anything by far on Earth this year. He might be right cause whatever you want to say, I think about Elon Musk the person and I have a lot of things to say, but Elon Musk, the engineer, the product designer, the salesman, is truly something entirely different and I do think the demand for the cyber truck is going to be huge. We can get into the specs, but it has more than one million reservations. It's a product that I think a lot of people four years ago certainly thought there was no chance in heck that this thing was going to roll off the production line anytime soon yet they are really rolling it off beginning this year. I have to say it's such a unique design, you have such a big Elon musk fan base and I really do believe him when he says, "The future looks like the future with this thing". I find myself intrigued and I do feel like it's going to be a success as is often the case with Musk. Some of the details they announced in 2019. A little bit different when they come to real reality here in 2023. I believe the base model will cost around $61,000. The upscale cyber base model, 100K. One of the things that I think is interesting here, Jason, is we saw this announced in 2019. It is now being revealed in 2023 and we'll probably see people really drive them on the roads in 2024 and 2025. The market for EVs and in particular truck EVs has changed pretty dramatically in that time.
Jason Moser: It has, and EVs are going through their own little moment right now where there are some questions as to the value proposition and there's consumer reports data out there showing that people are having more problems with EVs than ICs or even other vehicles.
Jason Moser: Whether that's the case or not, I think with Tesla, when you look at these trucks, it's very difficult to understand exactly what kind of driver wants this cybertruck. I think the cybertruck is a niche product that will probably do OK. I don't know how the company is ultimately defining success. For me, success is this is a contributor to the business. It sounds like for the immediate future, for the near future, at least for the foreseeable future, it's going to be something that loses money until they actually figure this whole thing out, because just making the truck on its own is a really difficult and arduous process. For most people that are driving these big trucks, the trucks are a tool of their trade. It's something that matters, that needs to be reliable. They need to know that it's going to work and how to fuel it up and use and whatnot. I don't know that they're necessarily going to be the ones making the leap to a cybertruck in the near term. Now, I think that as this iterates, as it evolves, there will be more opportunities to open that market opportunity up to more of those types of truck owners. For now, I think you probably see a few on the road, and we'll see how this develops.
Dylan Lewis: Coming up after the break, we've got a tribute and some of our favorite Mungerisms. Stay right here. This is Motley Fool Money.
Welcome back to Motley Fool Money. I'm Dylan Lewis, joined again in studio by Matt Argersinger and Jason Moser. This week, Charlie Munger, Vice Chairman of Berkshire Hathaway and Warren Buffett's right-hand man passed away at the age of 99. He is easily on the Mount Rushmore of the greatest investors of all time. I think it's probably worth spending a little time reflecting on just how remarkable his track record and success with Buffett and Berkshire was, Matt.
Matt Argersinger: Remarkable. It is Mount Rushmore, for sure. If you're talking about, as the young people say, goat, greatest of all time, Warren Buffett is the goat when it comes to investing. But I'm not sure he's quite the goat without Charlie Munger. If you look at Berkshire Hathaway's market value per share, 57 years ago, when he took over the textile mill in Massachusetts and turned this into one of the most successful businesses and companies of all time, he and Munger compound market value per share for Berkshire just under 20% a year for 57 years. Almost six decades. More than double the annual compound return of the S&P 500. Just to put that in dollar terms, if you had invested $100 in Berkshire Hathaway the moment after Buffett took over, that $100 would have turned into $2.96 million today.
Dylan Lewis: Matt, to your point about the duo, I think of Buffett and Munger as Brady and Belichick. They're both individually great, but what they've done together, just absolutely incredible, and I don't know that we're going to see it again.
Matt Argersinger: No, I don't think so. If I could tell a quick story, J. Mo was involved in this too, is early 2015, Jason and I took over a million-dollar portfolio, which is the service we had here at the Motley Fool. As we were thinking about how to run this service, the first thing that came to mind was a quote by Charlie Munger. It goes something like this: If you buy something because it's undervalued, then you have to think about selling it when it approaches your calculation of its intrinsic value. That's hard. But if you buy just a few great companies, then you can sit on your butt. That's a good thing. Now, Charlie used a little bit more colorful language than I just did. But that to me was such more than any quote from Charlie Munger has told me. It really isn't about trying to always constantly massage your portfolio. Deciding what to buy, when to buy, what to sell, when to sell. Find great companies, buy them, hold them. I think that was the lesson he also gave to Buffett six decades ago as well.
Jason Moser: Well, I was going to say you're right because Buffett was the cigar-butt guy.
Matt Argersinger: Absolutely.
Jason Moser: He is the Graham cigar-butt guy. Munger was the guy that came in today. What about just buying good businesses at fair prices?
Matt Argersinger: Yes.
Jason Moser: Buy good businesses at reasonable prices and then Matt says, sit on our butts and just go about this. Now, I think one interesting thing, and the returns numbers you quoted there are phenomenal, it's fascinating to think, and Munger is on record as saying this, he said, you know what? We could have doubled the size of Berkshire, had we done just one thing; used the leverage. It's something we talk about leverage a lot here because leverage can be a very dangerous tool. It can be a helpful tool for certain investors if you know what you're doing, but it raises the degree of difficulty when it comes to investing. He said, we could have used leverage and Berkshire would have been worth twice as much. He said the reason why they didn't do it, was because they didn't want to disappoint the people that had been with them for so long. They generated a lot of wealth. He's like if we lose three quarter of our money, we're still rich. But a lot of these people that have made all this money along the way with us, they're just individual investors. We would have let them down in a big way in understanding the nature of leverage in the fickle nature of markets. Using leverage boils down to market timing in some senses. They made that conscious decision; no, we're not going to do that, we've got our process in place. I think that's a great lesson for investors is, know what you don't know, get your process in place, and trust the process. What? Bell check, right?
Dylan Lewis: As a testament to the process and really just by keeping it simple, how easy they were able to make things for themselves, one of the top 10 largest companies in the United States, even without the benefit of using leverage, so even doing things the right way, doing things simply, and not exposing themselves to too much risk, I think they did just OK. [laughs]
Matt Argersinger: I think they did more than OK. I would say, and beyond also just buying wonderful businesses. One of the hardest things we do as investors is holding great businesses. It's one thing to identify a wonderful business, buy a wonderful business at a fair, reasonable price. Most of us just don't hold those businesses long enough. If you look at their holdings in Coca-Cola, American Express, even Apple, which is more recent purchase they've held that for almost a decade now, a lot of us just have a hard time doing that. As an individual investors, we see a stock we own go up 50%, we're like, hey, should I think about selling? Is the market at the top? What if I don't sell and the dry stock drops 20%? That is also part of the genius, it's part of the goating, which was not just buying wonderful businesses, but holding them, which is such a hard thing to do if you're an individual investor.
Dylan Lewis: I think, Matt, modeling that behavior, talking about that, and being very open about it as such great investors probably helped investor outcomes on the retail side, almost more than anybody else. I think it's probably Jack Bogle, Warren Buffett, and Charlie Munger, in terms of like good investing behavior and lessons.
Matt Argersinger: Exactly. Lessons that any investor could follow. These were the lessons. What's amazing to me is, I think it was Jeff Bassos who asked Buffett once, why aren't there more investors like you? Why don't they just copy you and do what you do? The whole refrain was, well, because people, they want to be rich fast, they don't want to get rich slowly, and that's what we did, and they did it better than anyone else.
Dylan Lewis: J. Mo, Matt mentioned a Mungerism that he particularly enjoys. Anything jump out to you?
Jason Moser: Yeah. The one that I noted earlier this week and the impact I think that Munger has had on my life from reading and the listening to him speak overall is just patience. It goes back to what you were saying. One of my favorite quotes, the big money is not in the buying and selling, but in the waiting. That really is what it boils down to. A lot of people don't want to hear that because like Matty said, they want to get rich quick. That's not the way it works. You determine your process, you do what works best for you. But I think over time, what we found is that Munger and Buffett came up with something pretty special there. It's not a bad idea to try to mirror that patience. It's not easy all the time, but it matters.
Dylan Lewis: Gentlemen, we're going to see you a little bit later in the show. Up next, we've got to check in on holiday spend and places we're seeing deflation in pricing. Stay right here. You're listening to Motley Fool Money.
Vera Lynn: We'll meet again. Don't know where, don't know when. But I know we'll meet again some sunny day. Keep smiling through just like you always do 'til the blue sky drive the dark clouds.
Dylan Lewis: Welcome back to Motley Fool Monday. I'm Dylan Lewis. The holiday season is in full swing and we've got an early read on results from Cyber Monday and Black Friday, thanks to Adobe. The firm is the source for online holiday spend data. We caught up with the Vivek Pandya, their lead insights analyst to get a sense of the trends he's seeing in the numbers this winter and whether it makes sense to buy now or wait for some of the items on your list. Let's dive right in. Your firm reported a record $9.8 billion in Black Friday online sales and over 12 billion in Cyber Monday sales. How do you think online retailers and shoppers are looking so far this holiday season?
Vivek Pandya: It's been, I think, something that they've been anticipating in terms of where they would land for these major days. Buyer propensity is the strongest on Thanksgiving to Cyber Monday. I think they're probably feeling pretty good about the momentum that they've experienced through these five days. I think what we're going to have to keep a closer eye on is how the demand continues to persist from where we are post Cyber Monday through the rest of the season. I also think they'll have to think a little bit more about how they approach early seasonal discounts, which they did in late October all the way into early November. In the past, that has done well for them. But this season, with the consumers priority around price and discount magnitudes, they really return back to Black Friday and Cyber Monday for their shopping. That's something the retailers are going to have to continue to think about in 2024.
Dylan Lewis: If I'm not mistaken, I think Black Friday spend was up somewhere around 7% year over year. We saw, I think, Cyber Monday results up nearly 10% over 2022. There are a lot of different reasons why those numbers could be going up. I think inflation is probably top of mind for a lot of people. Do you feel like we're seeing a mix of inflation and increases in demand and volume a little bit more, one or the other?
Vivek Pandya: It's a great question because with online retail prices, those have actually been coming down year on year for the past couple of years because we did see prior to the pandemic, we would continue to see online deflation. The reason for that is you'd have more and more online retail merchants enter the space. That gives the consumer much more choice and there's more competition, and that puts a downward pressure on prices. We also saw with categories like electronics, you have the newer products coming out and that pushes prices down on the older versions. That deflation was pretty apparent pre-pandemic. Then we had these supply chain issues that really put consumers in a position where they were seeing much higher prices across the board. Even for online goods, the demand was so high. But then as we got to 2022, the summer where gas prices started going up and durable and goods demand started coming down, that put online prices back on this deflationary trajectory. A lot of the growth that we're seeing is purely because people are buying more goods and buying more items. I think online retailers can really take a lot away from that. I will say that especially in certain categories like electronics, apparel prices and discounts are in the range of 20%-30% That puts a lot of impact in terms of good demand because of just people buying more goods.
Dylan Lewis: Let's talk a little bit about what people are buying. You mentioned a couple of different categories there, where are you seeing a lot of interest and are there any particular products that you're seeing really spike this holiday season?
Vivek Pandya: Well, the good news is we've seen strong boosts in categories across the board. Even categories like apparel that had softer, flat to negative growth in the off season and the rest of the time in 2023, had a bit of a boost through the Cyber Five. With apparel, you really have products that have gone viral on TikTok, things like that. The Birkenstocks, the UGG Tasman slippers, and then we have cosmetic products that have done well because the gift sets and all that are really popular this season. Electronics are massive this time of the year. With the supply chain issues easing, it's a lot easier for people to get a hold of PS5s and Xbox Series X and things like that this season than previous seasons. That's helping. We've also had the iPhone 15 release, which had an initial launch and that picked up some demand. But usually the consumer continues to want some of these goods into Christmas. It has the momentum through the gift giving season. Then obviously, toys are pretty massive this time of the year. You end up seeing the perennial favorites like the Lego and the Barbie products, but you end up seeing variations. I think about Tamagotchis, which have been around for decades, but now you have the Tamagotchi Nano, Harry Potter version, which is a much more advanced version than probably we grew up with as kids. These types of items continue to be popular and we see an uptick, especially this time of year.
Dylan Lewis: Everything old is new again, right?
Vivek Pandya: Exactly.
Dylan Lewis: Exactly. You mentioned the Cyber Five earlier and I think Black Friday and Cyber Monday continue to be the main events and they get a lot of the headlines. But it does seem like, at least anecdotally, the individual days are being blurred a little bit more. Those big days are still important, but is that what you guys are seeing in the data where it's more of a season of shopping rather than these big tent pole days?
Vivek Pandya: Well, in previous years it definitely became the early season, blurring into Thanksgiving. But this season, it's been very much the discount magnitude strengthened within the 5%-10% range to the 20-35% range as we got into Thanksgiving week. You had Thanksgiving all the way up to Cyber Monday, have really strong discounts and those ones were blurring into each other. The Black Friday deals were transforming into early Cyber Monday deals. You saw that transition. But what was interesting was something like Thanksgiving, where consumers are used to going out to the shops. Five, 10 years ago, they'd go out to the shops after Thanksgiving meal and get another deal on a TV or something like that. But then with the pandemic, those stores closed on Thanksgiving and they remain closed, but the buyer propensity and that buy mode that they're in continues to persist. That's when they just turn to their smartphones after eating or while they're talking to family and then start doing their shopping. That's where we saw a lot of spending velocity kick up and that's where we saw $5.5 billion. That really set the tone for what we would see from Black Friday to Cyber Monday.
Dylan Lewis: Earlier you mentioned people looking at their phones and doing some shopping. By my count, I think for e-commerce desktop is still king. But it seems like it's barely still king. What are we seeing in terms of mobile and desktop shopping this year?
Vivek Pandya: It's exactly right, because we're crossing this threshold where mobile devices will make up about 51% share for the season and become technically the majority way that people buy online goods. However, when we think about certain days like Thanksgiving and Cyber Monday, it's already surging beyond that 51%. We almost hit 60% on Thanksgiving because as I said, there's just so much of a shift to smartphones. Well, when you're around with family, you don't want to pull out your laptop and then start shopping. But you might pull out your smartphone and be comfortable doing some shopping there. It's been really important for retailers to ensure that their mobile experiences are state of the art and are seamless and frictionless so that when the consumer does that impulse buying, they can support that demand. Because what we still see is online conversion rates and buyer rates being stronger on online desktop. We really need to see that level of strength in mobile device conversion because that's where all the momentum is going.
Dylan Lewis: Are there any retailers that are doing anything particularly interesting or novel with mobile to try to boost those conversion rates?
Vivek Pandya: Well, we think about a lot of these online retailers across the board leveraging these initiatives to get consumers to download the mobile apps, provide additional value and discounts if they download the mobile app because that strengthens the relationship, it becomes less cost prohibitive to engage them once they've downloaded the mobile app and the conversion is stronger. We see constant encouragement to download mobile apps to leverage certain types of deals, to scan QR codes. All these types of things are designed to have consumers who are very mobile first continue to think about e-commerce from a mobile first lens too. You see it also with social media apps. TikTok has been quite the social media story these past couple of years. There's been a lot of investment into these social media advertising platforms so that they can extract the value and have the consumer who's maybe going to these apps just to browse videos and things like that to quickly be shifted into the buy mode too.
Dylan Lewis: I think one thing a lot of consumers have gotten used to over the last couple of years is seeing the option to buy now pay later as they are checking out. I look at the consumer, and we've talked about this a lot on our show. It feels like we have stretched consumers between inflation, interest rates rising, student loan payments going up. It seems like there is probably going to be a decent number of people who are looking for either holiday spend to go on credit card spend or buy now pay later options. What are you seeing over there?
Vivek Pandya: The buy now pay later growth has been quite something even prior to getting into the holiday season. We're expecting about 17% growth for the season in terms of buy now pay later utilization. That will mean out of the $222 billion spent this holiday season, about $17 billion will be processed specifically through buy now pay later. We're already hitting that growth momentum right now. We've seen over eight billion dollar spent. It's definitely something consumers are leaning on. I would say multiple consumers and different audiences are leveraging it for different reasons. Some of them are maybe social savvy, younger consumers and they're going through the payment checkout process and they see, I thought I was going to spend $200. They're saying, I can just do $50 and just break it up into payments. It entices them to just jump on that bandwagon very quickly. Other consumers are in more of a financially strained position and they're having to lean on buy now pay later in order to support their gift giving budget. Really that's one of the things where we're going to have to just continue to see how that moves in the context of larger online growth. What I will say is you have that utilization. You've seen growth in integrations with buy now pay later. It's been a growth factor, but I think we'll have to see in the off season, so coming into 2024, how those growth rates continue to persist.
Dylan Lewis: One of the other consumer stories we've been seeing as a result of some of those pressures is this idea of consumers trading down a little bit and looking for lower priced items or maybe moving from one retailer to more of a discount retailer. Do you see any of that in the data that you're looking at?
Vivek Pandya: Well, it's something that we've kept a close eye on, I had mentioned earlier that since we started to see online inflation turn to online deflation.
Vivek Pandya: That really started kicking off as we look at how the prices shifted from 2021 into to mid 2023. What we're finding is, yes, people have absolutely downshifted to the cheaper goods. We've seen people go from organic products to non organic to save money there. We've seen people go from the higher end luxury version of a cosmetic item or apparel to the cheaper version. The exception a little bit is you see consumers being a little less price sensitive to that during the holiday season. Because A, discounts are helping bring down prices overall, and B, they're usually giving gifts to other people. They're very conscientious of how, the gifts will appear, that they got the person, the premium gift they were looking for versus a cheaper substitute. That's where we see a little bit more of a return to the premium luxury. But in the off season and when we're not in the holiday season, Bonanza, that's when we see people downshifting a lot to the cheaper versions. Cheaper, is sometimes they go for a completely different alternative altogether to make the most of their budget within these categories.
Jason Moser: You mentioned the discounting there, and my last question for you, Vivek is really, in service of our listeners, we saw the huge discounting happen as we would expect during the Cyber 5, and ahead of the Cyber 5. Based on what you're seeing, is this where we're going to see discounts bottom out, or should people wait a little bit on some of these purchases for the holidays?
Vivek Pandya: I would say for the most part, they have bottomed out. Especially in the key categories like apparel electronics. We do expect to see a bit more stronger discounting on December 4th for sporting goods. That's just how that particular category has. We've seen the pricing trends over the years. A bit in early December, maybe a bit more of a deal on sporting goods, but outside of that we're starting to see the discounts we can dissipate across a lot of the products. That's, again, almost seasonally how it's worked in previous years. Credit to retailers, they've had to train consumers that this is the moment and then that's why we also see a lot of spend velocity in the six to 11:00 PM. PST time on Cyber Monday, we see about over $4 billion spent that way because everyone's trying to get the discounts and get their shopping out of the way.
Dylan Lewis: Listeners, we'll put a link to Adobe's holiday shopping tracker in our show notes Coming up after the break, Jason Moser and Matt Argersinger return with a couple stocks on their radar. Stay right here, you're listening to motley money.
As always, people in the program may have interests in the stocks they talk about in the motley fool. May have formal recommendations for or against, start, buy, sell, anything based solely on what you hear. I'm Dylan Lewis joined again by Jason Moser and Matt Argersinger. We tend to focus on stocks here at the motley fool, but this week we are profiling a different investment. NBA owner and Shark Cubin is selling his majority stake in the Dallas Mavericks to Miriam Adelson, the largest shareholder in Las Vegas Sands. Matt, Cuban will remain in charge of basketball operations and he'll keep a small stake in the business. But this seems like an interesting choice in an interesting moment.
Matt Argersinger: Yes, it was a surprise to me and that's because, I think of Mark Cuban as a pretty successful businessman and investor. Well a highly successful businessman and investor, but at the same time he's this, highly passionate sports fan and team owner. Him selling his majority stake in what I thought was his passion makes me think he's calling a little bit of a medium term top in the market, in terms of professional sports team valuations, especially for non NFL franchise. I think if you look at the Jason and we were talking about this earlier in the week, NBA Major League Baseball, anything not in the NFL. I feel like we might be a little bit of a top and I think Mark Cuban actually might be calling that Cuban.
Dylan Lewis: Cuban timed it pretty well when it came to the.comboom. I think he may be able to time this one and we'll see.
Matt Argersinger: I think so.
Dylan Lewis: Let's get over to stocks on our radar. Our man behind the glass, Dan Boyd, is going to hit you with a question. Jason, you're up first. What are you looking at this week?
Jason Moser: Yeah. Keep an eye on Docusign. Ticker is DOCU. Earnings come out Wednesday after the market closes. They've got new Ish CEO Alan Tiger said he's been there about a year now, a little over a year. We should continue to hear more and more about CLM. Contract life cycle management. That's really the key to the long term strategy here, is taking that core specialty and E signature and just, expanding it out to that full life cycle management. They're adding features and capabilities that are working out. Last quarter reported a total customer base of 1.44 million. That was up 12% from a year. They also saw 6% year over year increase in customers with annualized contract value exceeding $300,000. A total of 1047 customers there. Those are metrics to keep an eye on. They tell us that not only are they landing new customers, but they're expanding the relationships with those customers, even in a time of scrutinized spending and elongated sales cycles. But listen, this is a company, they're going through a tough time, but they've grown revenue at a compound annual rate of 45% over the last five years. Good balance sheet, you want to see that stock based compensation continue to come down, but I think they're doing a good job of keeping the hyperbole to a minimum getting out of this pandemic, stay at home stock mentality and just getting back down to brass tacks. I'll be interested to see what one day brings.
Dylan Lewis: Dan a question about Docusign?
Dan Boyd: So the Docusign stock price is flat. If you don't count the pandemic, it's like the pandemic never happened. It's back to pre pandemic levels. Does this company have enough of a Mote?
Jason Moser: Man, I tell you, I think Mote is a very overused term. I don't know that they necessarily have a mode. There's competition out there, primarily in the form of Adobe. But again, I think this boils down to contract life cycle management. The more they can build out capabilities beyond a signature, the more of a competitive advantage they can build through.
Dylan Lewis: Matt, what is on your radar this week?
Matt Argersinger: Epr Properties. Dylan ticker, EPR. This is a real estate investment trust. You know, I love my reads. For all intents and purposes, this company was dead man walking after the pandemic, their biggest real estate holding movie theaters. Tough business. Well, and especially after one of their largest tenants, Regal Entertainment, filed for bankruptcy last year. Business is far from dead though, thriving this year, revenue in the third quarter is up 17%. Most of the theaters that were closed as part of the Regal bankruptcy have reopened with two operators portfolio was 99% lease at the end of the quarter, great balance sheet, eight times earnings and a 7% dividend yield. I can't turn away from this one. I'm looking to actually add to my position.Dan, a question about EPR properties.
Dylan Lewis: Matt, you go into movie theaters because I haven't been to one since 1919.
Matt Argersinger: I have it, but that's mainly because I have a four year old son at home, but I plan to get back there pretty soon. All right. Dan, which one are you putting on your watch list?
Dan Boyd: I got to tell you, I feel like docusign is becoming a verb like Xerox and Kleenex out there. It's like someone's going to send me a Docusign because.
Matt Argersinger: I'm going to go Docusign.
Dylan Lewis: That's usually a sign of brand strength. I'm right there with you, Dan. Dan, Thanks for weighing in on this week's Radar Stocks, Matt and Jason. Thank you guys for bringing them to us.
Matt Argersinger: Thank you.
Dylan Lewis: That's going to do it for this week's Motley Fool Money Radio show. The show is mixed by Dan Boyd. I'm Dylan Lewis. Thanks for listening. We'll see you next time.
Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Jason Moser has positions in Adobe, Apple, and DocuSign. Matthew Argersinger has positions in Coca-Cola, DocuSign, EPR Properties, and Tesla and has the following options: short January 2024 $57.50 puts on Coca-Cola. The Motley Fool has positions in and recommends Adobe, Apple, Bank of America, Berkshire Hathaway, DocuSign, Goldman Sachs Group, and Tesla. The Motley Fool recommends EPR Properties and recommends the following options: long January 2024 $420 calls on Adobe, long January 2024 $47.50 calls on Coca-Cola, long January 2024 $60 calls on DocuSign, and short January 2024 $430 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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He goes from, like you said, this, let's be fair, bizarre, confusing, maybe even uncomfortable at times interview at Deal Books Summit in New York to the very next day giving this exciting almost Steve Jobs-esque unveiling of the cyber truck in Austin, Texas, or as he put it, the biggest product launch of anything by far on Earth this year. Dylan Lewis: Listeners, we'll put a link to Adobe's holiday shopping tracker in our show notes Coming up after the break, Jason Moser and Matt Argersinger return with a couple stocks on their radar. Most of the theaters that were closed as part of the Regal bankruptcy have reopened with two operators portfolio was 99% lease at the end of the quarter, great balance sheet, eight times earnings and a 7% dividend yield.
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In this podcast, Motley Fool host Dylan Lewis and analysts Jason Moser and Matt Argersinger discuss: The market's incredible November and why we may not be out of the woods yet on rate hikes. Dylan Lewis: Listeners, we'll put a link to Adobe's holiday shopping tracker in our show notes Coming up after the break, Jason Moser and Matt Argersinger return with a couple stocks on their radar. The Motley Fool recommends EPR Properties and recommends the following options: long January 2024 $420 calls on Adobe, long January 2024 $47.50 calls on Coca-Cola, long January 2024 $60 calls on DocuSign, and short January 2024 $430 calls on Adobe.
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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. Vivek Pandya: It's a great question because with online retail prices, those have actually been coming down year on year for the past couple of years because we did see prior to the pandemic, we would continue to see online deflation. Dylan Lewis: Listeners, we'll put a link to Adobe's holiday shopping tracker in our show notes Coming up after the break, Jason Moser and Matt Argersinger return with a couple stocks on their radar.
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In this podcast, Motley Fool host Dylan Lewis and analysts Jason Moser and Matt Argersinger discuss: The market's incredible November and why we may not be out of the woods yet on rate hikes. Vivek Pandya: It's a great question because with online retail prices, those have actually been coming down year on year for the past couple of years because we did see prior to the pandemic, we would continue to see online deflation. Dylan Lewis: Let's talk a little bit about what people are buying.
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12131.0
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2023-12-12 00:00:00 UTC
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Apple Inc. (AAPL) Is a Trending Stock: Facts to Know Before Betting on It
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AAPL
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https://www.nasdaq.com/articles/apple-inc.-aapl-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-8
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nan
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nan
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this maker of iPhones, iPads and other products have returned +4.5% over the past month versus the Zacks S&P 500 composite's +4.9% change. The Zacks Computer - Mini computers industry, to which Apple belongs, has gained 3.8% 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
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Apple is expected to post earnings of $2.08 per share for the current quarter, representing a year-over-year change of +10.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.5%.
The consensus earnings estimate of $6.56 for the current fiscal year indicates a year-over-year change of +7%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $7.10 indicates a change of +8.2% from what Apple is expected to report a year ago. Over the past month, the estimate has changed -0.2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Apple is rated Zacks Rank #3 (Hold).
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 $117.31 billion indicates a year-over-year change of +0.1%. For the current and next fiscal years, $393.42 billion and $418.55 billion estimates indicate +2.7% and +6.4% changes, respectively.
Last Reported Results and Surprise History
Apple reported revenues of $89.5 billion in the last reported quarter, representing a year-over-year change of -0.7%. EPS of $1.46 for the same period compares with $1.29 a year ago.
Compared to the Zacks Consensus Estimate of $88.99 billion, the reported revenues represent a surprise of +0.57%. The EPS surprise was +5.04%.
Over the last four quarters, Apple surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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.
Conclusion
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.
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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.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Last Reported Results and Surprise History Apple reported revenues of $89.5 billion in the last reported quarter, representing a year-over-year change of -0.7%.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions.
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Apple (AAPL) is one of the stocks most watched by Zacks.com visitors lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. When earnings estimates for a company go up, the fair value for its stock goes up as well.
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12132.0
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2023-12-12 00:00:00 UTC
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Long Straddle Screener Results For December 12th
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AAPL
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https://www.nasdaq.com/articles/long-straddle-screener-results-for-december-12th
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nan
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nan
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Volatility is back down at very low levels, with the VIX Index closing at 12.63 yesterday. When volatility is low, options become cheaper, so today we’re taking a look at the Long Straddle Screener.
A long straddle is an advanced options strategy used when a trader is seeking to profit from a big move in either direction and / or an increase in implied volatility.
To execute the strategy, a trader would buy a call and a put with the following conditions:
Both options must use the same underlying stock
Both options must have the same expiration
Both options must have the same strike price
Since it involves having to buy both a call and a put, the trader must pay two premiums up-front, which also happens to be the maximum possible loss.
The potential profit is theoretically unlimited, although the trade will lose money each day through time decay if a big move does not occur.
The position means you will start with a net debit and only profit when the underlying stock rises above the upper break-even point or falls below the lower break-even point.
Profits can be made with a smaller price move if the move happens early in the trade.
Let’s take a look at Barchart’s Long Straddle Screener for December 12th. I have added a filer for Market Cap above 40b and total call volume above 2,000.
The screener shows some interesting long straddle trades on popular stocks such as CVX, XOM, AAPL, CSCO, PFE, MSFT, OXY and BAC. Let’s walk through a couple of examples.
CVX Long Straddle Example
Let’s take a look at the first line item – a long straddle on CVX.
Using the January 19th expiry, the trade would involve buying the $145-strike call and the $145-strike put. The premium paid for the trade would be $800, which is also the maximum loss. The maximum profit is theoretically unlimited. The lower breakeven price is $137 and the upper breakeven price is $153.
The premium paid is equal to 5.54% of the stock price and the probability of success is estimated at 44.1%.
The Barchart Technical Opinion rating is an 88% Sell with an Average short term outlook on maintaining the current direction.
Long term indicators fully support a continuation of the trend.
Implied volatility is currently 21.48% compared to a twelve-month low of 17.34% and a high of 35.64%.
AAPL Long Straddle Example
Let’s take a look at the third line item – a long straddle on AAPL.
Using the January 19th expiry, the trade would involve buying the $195 strike call and the $195 strike put. The premium paid for the trade would be $845, which is also the maximum loss. The maximum profit is theoretically unlimited. The lower breakeven price is $186.55 and the upper breakeven price is $203.45.
The premium paid is equal to 4.37% of the stock price and the probability of success is estimated at 43.9%.
The Barchart Technical Opinion rating is an 88% Buy with an Average short term outlook on maintaining the current direction.
Long term indicators fully support a continuation of the trend.
Implied volatility is currently 16.93% compared to a twelve-month low of 15.80% and a high of 42.79%.
CSCO Long Straddle Example
Let’s take a look at one final straddle, a long straddle on CSCO.
Using the March 15th expiry, the trade would involve buying the $50 strike call and the $50 strike put. The premium paid for the trade would be $417, which is also the maximum loss. The maximum profit is theoretically unlimited. The lower breakeven price is $45.83 and the upper breakeven price is $54.17.
The premium paid is equal to 8.44% of the stock price and the probability of success is estimated at 43.8%.
The Barchart Technical Opinion rating is a 56% Sell with a Weakening short term outlook on maintaining the current direction.
Implied volatility is currently 16.15% compared to a twelve-month low of 13.70% and a high of 34.15%.
Mitigating Risk
Long straddles can lose money fairly quickly if the stock stay flat, and / or if implied volatility drops.
Position sizing is important so that a large loss does not cause more than a 1-2% loss in total portfolio value. Another good rule of thumb is a 20-30% stop loss.
Please remember that options are risky, and investors can lose 100% of their investment. This article is for education purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions.
More Stock Market News from Barchart
Stocks Climb as Strength in Chip Stocks Leads the Broader Market Higher
This Inflation Hedge Is Now a Top AI Stock Pick
After Tripling in 2023, Is This Hot Penny Stock Still a Buy?
Are These the 2 Best Dow Stocks to Buy Now?
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.
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The screener shows some interesting long straddle trades on popular stocks such as CVX, XOM, AAPL, CSCO, PFE, MSFT, OXY and BAC. AAPL Long Straddle Example Let’s take a look at the third line item – a long straddle on AAPL. A long straddle is an advanced options strategy used when a trader is seeking to profit from a big move in either direction and / or an increase in implied volatility.
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The screener shows some interesting long straddle trades on popular stocks such as CVX, XOM, AAPL, CSCO, PFE, MSFT, OXY and BAC. AAPL Long Straddle Example Let’s take a look at the third line item – a long straddle on AAPL. The Barchart Technical Opinion rating is an 88% Sell with an Average short term outlook on maintaining the current direction.
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The screener shows some interesting long straddle trades on popular stocks such as CVX, XOM, AAPL, CSCO, PFE, MSFT, OXY and BAC. AAPL Long Straddle Example Let’s take a look at the third line item – a long straddle on AAPL. To execute the strategy, a trader would buy a call and a put with the following conditions: Both options must use the same underlying stock Both options must have the same expiration Both options must have the same strike price Since it involves having to buy both a call and a put, the trader must pay two premiums up-front, which also happens to be the maximum possible loss.
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The screener shows some interesting long straddle trades on popular stocks such as CVX, XOM, AAPL, CSCO, PFE, MSFT, OXY and BAC. AAPL Long Straddle Example Let’s take a look at the third line item – a long straddle on AAPL. When volatility is low, options become cheaper, so today we’re taking a look at the Long Straddle Screener.
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12133.0
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2023-12-12 00:00:00 UTC
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AAPL Quantitative Stock Analysis
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AAPL
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https://www.nasdaq.com/articles/aapl-quantitative-stock-analysis-9
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nan
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nan
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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
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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.
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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.
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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.
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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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12134.0
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2023-12-12 00:00:00 UTC
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After Hours Most Active for Dec 13, 2023 : RIVN, T, TLT, PM, CIM, NRDY, F, AMZN, MO, AAPL, MRTX, QQQ
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-dec-13-2023-%3A-rivn-t-tlt-pm-cim-nrdy-f-amzn-mo-aapl-mrtx-qqq
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nan
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The NASDAQ 100 After Hours Indicator is down -23.78 to 16,538.59. The total After hours volume is currently 119,937,281 shares traded.
The following are the most active stocks for the after hours session:
Rivian Automotive, Inc. (RIVN) is -0.0611 at $19.62, with 7,754,282 shares traded. As reported by Zacks, the current mean recommendation for RIVN is in the "buy range".
AT&T Inc. (T) is -0.03 at $16.42, with 5,008,281 shares traded. T's current last sale is 82.1% of the target price of $20.
iShares 20+ Year Treasury Bond ETF (TLT) is -0.06 at $96.78, with 4,871,418 shares traded. This represents a 17.42% increase from its 52 Week Low.
Philip Morris International Inc (PM) is unchanged at $94.40, with 3,812,466 shares traded. As reported by Zacks, the current mean recommendation for PM is in the "buy range".
Chimera Investment Corporation (CIM) is unchanged at $5.11, with 3,547,970 shares traded. CIM's current last sale is 92.91% of the target price of $5.5.
Nerdy Inc. (NRDY) is unchanged at $2.96, with 2,872,061 shares traded. As reported by Zacks, the current mean recommendation for NRDY is in the "buy range".
Ford Motor Company (F) is -0.03 at $11.21, with 2,705,413 shares traded. F's current last sale is 80.07% of the target price of $14.
Amazon.com, Inc. (AMZN) is unchanged at $148.84, with 2,678,604 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Altria Group (MO) is -0.0497 at $41.97, with 2,565,977 shares traded. MO's current last sale is 91.24% of the target price of $46.
Apple Inc. (AAPL) is -0.035 at $197.93, with 2,558,603 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Mirati Therapeutics, Inc. (MRTX) is unchanged at $57.37, with 2,497,888 shares traded. MRTX's current last sale is 98.07% of the target price of $58.5.
Invesco QQQ Trust, Series 1 (QQQ) is -0.12 at $403.62, with 2,379,550 shares traded., following a 52-week high recorded in today's regular session.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is -0.035 at $197.93, with 2,558,603 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". iShares 20+ Year Treasury Bond ETF (TLT) is -0.06 at $96.78, with 4,871,418 shares traded.
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Apple Inc. (AAPL) is -0.035 at $197.93, with 2,558,603 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 RIVN is in the "buy range".
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Apple Inc. (AAPL) is -0.035 at $197.93, with 2,558,603 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 119,937,281 shares traded.
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Apple Inc. (AAPL) is -0.035 at $197.93, with 2,558,603 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 -23.78 to 16,538.59.
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12135.0
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2023-12-12 00:00:00 UTC
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EXCLUSIVE-Apple offers to let rivals access tap-and-go tech in EU antitrust case, sources say
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AAPL
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https://www.nasdaq.com/articles/exclusive-apple-offers-to-let-rivals-access-tap-and-go-tech-in-eu-antitrust-case-sources
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By Foo Yun Chee
BRUSSELS, Dec 12 (Reuters) - Apple AAPL.O has offered to let rivals access its tap-and-go mobile payments systems used for mobile wallets, three people familiar with the matter said, a move that could settle EU antitrust charges and stave off a possible hefty fine.
The EU competition enforcer last year charged Apple with curbing rivals' access to its tap-and-go technology, Near-Field Communication (NFC), making it difficult for them to develop rival services on Apple devices.
It said this benefited Apple Pay, Apple's own mobile wallet solution on iPhones and iPads, and pointed to the company's significant market power in the market for smart mobile devices and dominance in mobile wallet markets.
The European Commission is likely to seek feedback next month from rivals and customers before deciding whether to accept Apple's offer, the people said.
They said the timing of the market test and whether it will go ahead could still change.
The EU watchdog declined to comment. Apple was not immediately available for comment before U.S. working hours.
Apple Pay is used by more than 2,500 banks in Europe and over 250 fintechs and challenger banks. The NFC chip enables tap-and-go payments on iPhones and iPads.
Apple faces a second charge of preventing Spotify SPOT.N and other music streaming companies from informing users of other buying options outside its App Store in a case dating from 2020.
The Commission is expected to issue a decision next year that could include a fine and an order to stop this practice.
Companies risk fines up to 10% of their global annual turnover if found guilty of breaching EU antitrust rules.
(Reporting by Foo Yun Chee; Editing by Kirsten Donovan and Louise Heavens)
((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Foo Yun Chee BRUSSELS, Dec 12 (Reuters) - Apple AAPL.O has offered to let rivals access its tap-and-go mobile payments systems used for mobile wallets, three people familiar with the matter said, a move that could settle EU antitrust charges and stave off a possible hefty fine. The European Commission is likely to seek feedback next month from rivals and customers before deciding whether to accept Apple's offer, the people said. Apple faces a second charge of preventing Spotify SPOT.N and other music streaming companies from informing users of other buying options outside its App Store in a case dating from 2020.
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By Foo Yun Chee BRUSSELS, Dec 12 (Reuters) - Apple AAPL.O has offered to let rivals access its tap-and-go mobile payments systems used for mobile wallets, three people familiar with the matter said, a move that could settle EU antitrust charges and stave off a possible hefty fine. The EU competition enforcer last year charged Apple with curbing rivals' access to its tap-and-go technology, Near-Field Communication (NFC), making it difficult for them to develop rival services on Apple devices. It said this benefited Apple Pay, Apple's own mobile wallet solution on iPhones and iPads, and pointed to the company's significant market power in the market for smart mobile devices and dominance in mobile wallet markets.
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By Foo Yun Chee BRUSSELS, Dec 12 (Reuters) - Apple AAPL.O has offered to let rivals access its tap-and-go mobile payments systems used for mobile wallets, three people familiar with the matter said, a move that could settle EU antitrust charges and stave off a possible hefty fine. The EU competition enforcer last year charged Apple with curbing rivals' access to its tap-and-go technology, Near-Field Communication (NFC), making it difficult for them to develop rival services on Apple devices. It said this benefited Apple Pay, Apple's own mobile wallet solution on iPhones and iPads, and pointed to the company's significant market power in the market for smart mobile devices and dominance in mobile wallet markets.
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By Foo Yun Chee BRUSSELS, Dec 12 (Reuters) - Apple AAPL.O has offered to let rivals access its tap-and-go mobile payments systems used for mobile wallets, three people familiar with the matter said, a move that could settle EU antitrust charges and stave off a possible hefty fine. It said this benefited Apple Pay, Apple's own mobile wallet solution on iPhones and iPads, and pointed to the company's significant market power in the market for smart mobile devices and dominance in mobile wallet markets. The EU watchdog declined to comment.
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12136.0
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2023-12-12 00:00:00 UTC
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Should You Invest in the iShares Expanded Tech Sector ETF (IGM)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-ishares-expanded-tech-sector-etf-igm-10
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The iShares Expanded Tech Sector ETF (IGM) was launched on 03/13/2001, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $3.62 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. IGM seeks to match the performance of the S&P North American Technology Sector Index before fees and expenses.
The S&P North American Expanded Technology Sector Index comprises of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.41%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 0.38%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 80.50% of the portfolio, followed by Telecom.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).
The top 10 holdings account for about 52.57% of total assets under management.
Performance and Risk
The ETF has added about 54.16% so far this year and is up roughly 47.67% in the last one year (as of 12/12/2023). In that past 52-week period, it has traded between $272.77 and $430.71.
The ETF has a beta of 1.16 and standard deviation of 26.11% for the trailing three-year period, making it a medium risk choice in the space. With about 285 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares Expanded Tech Sector ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IGM is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $56.83 billion in assets, Vanguard Information Technology ETF has $57.19 billion. XLK has an expense ratio of 0.10% and VGT charges 0.10%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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iShares Expanded Tech Sector ETF (IGM): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Technology Select Sector SPDR ETF (XLK): ETF Research Reports
Vanguard Information Technology ETF (VGT): ETF Research Reports
To read this article on Zacks.com click here.
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.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $3.62 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market.
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Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). The S&P North American Expanded Technology Sector Index comprises of North American equities in the technology sector and select North American equities from communication services to consumer discretionary sectors.
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Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 8.65% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA). Click to get this free report iShares Expanded Tech Sector ETF (IGM): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Technology Select Sector SPDR ETF (XLK): ETF Research Reports Vanguard Information Technology ETF (VGT): ETF Research Reports To read this article on Zacks.com click here. The iShares Expanded Tech Sector ETF (IGM) was launched on 03/13/2001, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
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12137.0
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2023-12-12 00:00:00 UTC
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1 Unstoppable Stock Set to Join Apple, Microsoft, Amazon, Alphabet, and Nvidia in the $1 Trillion Club in 2024
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AAPL
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https://www.nasdaq.com/articles/1-unstoppable-stock-set-to-join-apple-microsoft-amazon-alphabet-and-nvidia-in-the-%241
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Warren Buffett was born in 1930 at the outset of the Great Depression. He purchased his first stock at age 11, and by 1965, he was operating his own investment company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). He still runs the company today.
Berkshire holds an incredible portfolio of public and private companies, and it has successfully navigated every post-Depression crisis to significantly outperform the benchmark S&P 500 over the last 58 years.
Berkshire's largest holding today is Apple, which became the world's first $1 trillion company in 2018. Since then, Microsoft, Amazon, Alphabet (parent company of Google), and Nvidia have all amassed trillion-dollar valuations of their own.
Thanks to Buffett's leadership, Berkshire is now valued at $772 billion, and its stellar track record suggests it could soon become the first non-technology company in the U.S. to join the $1 trillion club. Here's why it could become a $1 trillion company as soon as 2024.
Image source: The Motley Fool.
Buffett's recipe for success
Buffett is a value investor. He looks for profitable companies with consistent growth and strong management teams, and he especially likes those returning money to shareholders through dividends and stock buybacks.
He waits patiently to grab those opportunities at a reasonable price. You won't find him chasing the latest stock market trends; in fact, he's often deploying billions of dollars when most other investors are selling.
However, Buffett's most powerful weapon is time. He buys stocks with the intention of holding for decades, which allows the effects of compounding to build his wealth for him. The companies he owns grow larger over time, and so do the dividends.
For example, Berkshire invested $1.3 billion in Coca-Cola between 1988 and 1994, acquiring 400 million shares, which it still owns today. Coca-Cola paid Berkshire a dividend of $75 million in 1994 -- in 2022, that dividend payment had swelled to $704 million! Not to mention the incredible capital growth; Berkshire's 400 million Coca-Cola shares are now worth $23.6 billion.
From the brink of failure to a financial juggernaut
Berkshire Hathaway was founded as a textiles company in 1929, and Buffett acquired a controlling stake in 1965 when it was going through a rough patch. He quickly realized Berkshire's core business was no longer viable, so he turned it into a holding company for his various investments.
Today, it owns 51 different publicly traded stocks and securities worth a combined $365 billion, and Coca-Cola is just one of many success stories. The following are equally noteworthy:
American Express: Berkshire owns a 20% stake in the credit card giant, valued at $25.5 billion. But it all started with a $1.3 billion investment in the lead up to 1995, and today, the firm collects $304 million in dividends (and growing) every year.
Apple: Berkshire has invested around $35 billion in Apple stock since 2016 -- its largest ever bet. It has paid off handsomely because the stake is currently valued at more than $179 billion, accounting for almost half of the investment company's public portfolio.
Plus, Berkshire wholly owns several successful private businesses like Dairy Queen, Duracell, and GEICO.
Berkshire has a long track record of crushing the market
Buffett has presided over substantial returns for investors. Between the time he acquired a controlling stake in Berkshire in 1965 and the end of 2022, the company's stock had delivered a mind-blowing gain of 3,787,464%.
That translates to a compound annual return of 19.8%, which is twice the return of the benchmark S&P 500 index. That would've been enough to turn a perfectly timed investment of just $100 into more than $3.7 million. The incredible gain comes on the back of a stellar operating performance by Buffett and his team.
Berkshire generated just $49 million in revenue in 1965, and by 2022, that had grown to a whopping $302 billion. Over $157 billion came from sales and services across its various businesses, with an additional $74 billion coming from insurance premiums and $52 billion coming from its railroad, utilities, and energy interests. The company is on track to increase that figure by 19% in 2023, to $360 billion.
Berkshire has delivered positive growth and strong stock returns during 11 different presidencies without straying from Buffett's fundamental strategy. With a presidential election coming up in 2024, that's a great reminder for everyday investors to stay the course, no matter which candidate wins.
Berkshire could join the $1 trillion club in 2024
As I mentioned earlier, Berkshire Hathaway is valued at $772 billion. Therefore, its stock needs to gain about 30% to propel the company into the $1 trillion club. Based on its average annual return of 19.8% since 1965, it doesn't appear likely to get there in 2024.
However, there's a good possibility Berkshire could outperform next year. History suggests 2024 will almost certainly bring more positive returns for the S&P 500, and Apple stock (Berkshire's largest holding) is entering the year near its best-ever level. Plus, some of Berkshire's top income producing stocks like Apple, Coca-Cola, American Express, and Bank of America are currently paying record dividends.
The broader macroeconomic environment will likely be more favorable in 2024, too. According to CME Group's FedWatch tool, the U.S. Federal Reserve is expected to cut interest rates five times throughout the year. That will be great for Berkshire's consumer-focused businesses, and also its transport and logistics segments as lower rates should drive more economic growth.
Finally, as my Motley Fool colleague Sean Williams points out, Berkshire is buying back its own stock hand over fist. It has completed a whopping $72 billion worth of share repurchases during the past five years, so Buffett himself is clearly very bullish on its prospects.
Nevertheless, even if Berkshire doesn't make it into the $1 trillion club in 2024, it's only a matter of time.
Should you invest $1,000 in Berkshire Hathaway right now?
Before you buy stock in Berkshire Hathaway, 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 Berkshire Hathaway wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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See the 10 stocks
*Stock Advisor returns as of December 7, 2023
Bank of America 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. American Express is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anthony Di Pizio 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, Microsoft, and Nvidia. The Motley Fool recommends CME Group and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Berkshire holds an incredible portfolio of public and private companies, and it has successfully navigated every post-Depression crisis to significantly outperform the benchmark S&P 500 over the last 58 years. From the brink of failure to a financial juggernaut Berkshire Hathaway was founded as a textiles company in 1929, and Buffett acquired a controlling stake in 1965 when it was going through a rough patch. Plus, some of Berkshire's top income producing stocks like Apple, Coca-Cola, American Express, and Bank of America are currently paying record dividends.
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He purchased his first stock at age 11, and by 1965, he was operating his own investment company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). Before you buy stock in Berkshire Hathaway, 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 Berkshire Hathaway wasn't one of them. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Bank of America, Berkshire Hathaway, Microsoft, and Nvidia.
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Berkshire could join the $1 trillion club in 2024 As I mentioned earlier, Berkshire Hathaway is valued at $772 billion. Before you buy stock in Berkshire Hathaway, 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 Berkshire Hathaway wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Bank of America is an advertising partner of The Ascent, a Motley Fool company.
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For example, Berkshire invested $1.3 billion in Coca-Cola between 1988 and 1994, acquiring 400 million shares, which it still owns today. Before you buy stock in Berkshire Hathaway, 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 Berkshire Hathaway wasn't one of them. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Bank of America, Berkshire Hathaway, Microsoft, and Nvidia.
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12138.0
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2023-12-12 00:00:00 UTC
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Up 149% YTD, How High Can Roku (NASDAQ:ROKU) Stock Go in 2024?
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AAPL
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https://www.nasdaq.com/articles/up-149-ytd-how-high-can-roku-nasdaq%3Aroku-stock-go-in-2024
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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.
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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.
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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.
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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.
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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.
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12139.0
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2023-12-11 00:00:00 UTC
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Here’s What to Expect From Apple Stock in 2024
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AAPL
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https://www.nasdaq.com/articles/heres-what-to-expect-from-apple-stock-in-2024
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As a member of the “Magnificent Seven,” Apple (NASDAQ:AAPL) earned the market’s favor throughout 2023. However, this doesn’t guarantee similar results for Apple’s investors in 2024. Overall, the outlook for AAPL stock is good and we’re assigning it a “B” grade, but there’s no urgency to buy it now if you don’t want to.
It’s amazing to consider how quickly Apple’s market capitalization swelled from $2 trillion to $3 trillion. Getting Apple’s market cap to $4 trillion might not be so quick or easy. Ultimately, Apple’s shareholders should expect decent returns over the long run, but also need to acknowledge Apple’s challenges in the coming year.
Apple’s Shift Away From China
Relations between the U.S. and China were strained in 2023, and the situation might not get any better next year. This is relevant, as China has banned government officials from using Apple’s iPhones at work. Plus, the U.S. government has limited the exports of certain technology components to China.
Amid this tense backdrop, Apple is taking actions to shift its operations away from China. In particular, the company has its eye on India as a major source of components. According to The Wall Street Journal, Apple “and its suppliers aim to build over 50 million iPhones in India annually within the next two to three years,” followed by an “additional tens of millions of units after that.”
Furthermore, Apple is in the process of moving its iPad product-development operations from China to Vietnam. This may be a savvy move for Apple, especially if Sino-U.S. relations deteriorate during the coming quarters. Going forward, investors should keep tabs on Apple’s production costs to see if the company’s operational shifts have a positive long-term impact on Apple’s financials.
Serious Concerns for AAPL Stock Investors
There’s no denying that AAPL stock ran fast in 2023. Do Apple’s fundamentals justify the share-price move, though? It’s a question that one particular analysts wants investors to consider.
Barclays Senior Analyst Tim Long said that he struggles with Apple’s “multiple and valuation.” Not long ago, Apple’s trailing 12-month price-to-earnings ratio was above 31x, versus Apple’s five-year average P/E ratio of 26.42x.
Long observed that Apple’s near-term forecasts aren’t highly optimistic. “They’ve basically lowered guidance maybe four quarters in a row. They don’t give official guidance, but numbers have come down for four quarters in a row,” Long stated.
Along with that, Long sees soft demand for Apple’s products, and especially the iPhone, in China. Notably, Apple’s revenue from China fell 2.5% year over year in the company’s most recently reported quarter.
Be Cautiously Optimistic With AAPL Stock
You might or might not agree with Long, who concluded that Apple’s “fundamentals are not good.” Still, it’s reasonable to be concerned that Apple may be somewhat overvalued after this year’s powerful share-price rally.
Apple has its share of challenges to overcome, but the company will probably continue to grow its market cap in the long term. Therefore, AAPL stock earns a “B” grade. Investors may choose to hold their Apple shares and possibly add to their positions, but there’s no need to over-invest in Apple right now.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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The post Here’s What to Expect From Apple Stock in 2024 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips As a member of the “Magnificent Seven,” Apple (NASDAQ:AAPL) earned the market’s favor throughout 2023. Overall, the outlook for AAPL stock is good and we’re assigning it a “B” grade, but there’s no urgency to buy it now if you don’t want to. Serious Concerns for AAPL Stock Investors There’s no denying that AAPL stock ran fast in 2023.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips As a member of the “Magnificent Seven,” Apple (NASDAQ:AAPL) earned the market’s favor throughout 2023. Serious Concerns for AAPL Stock Investors There’s no denying that AAPL stock ran fast in 2023. Overall, the outlook for AAPL stock is good and we’re assigning it a “B” grade, but there’s no urgency to buy it now if you don’t want to.
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Be Cautiously Optimistic With AAPL Stock You might or might not agree with Long, who concluded that Apple’s “fundamentals are not good.” Still, it’s reasonable to be concerned that Apple may be somewhat overvalued after this year’s powerful share-price rally. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As a member of the “Magnificent Seven,” Apple (NASDAQ:AAPL) earned the market’s favor throughout 2023. Overall, the outlook for AAPL stock is good and we’re assigning it a “B” grade, but there’s no urgency to buy it now if you don’t want to.
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Be Cautiously Optimistic With AAPL Stock You might or might not agree with Long, who concluded that Apple’s “fundamentals are not good.” Still, it’s reasonable to be concerned that Apple may be somewhat overvalued after this year’s powerful share-price rally. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As a member of the “Magnificent Seven,” Apple (NASDAQ:AAPL) earned the market’s favor throughout 2023. Overall, the outlook for AAPL stock is good and we’re assigning it a “B” grade, but there’s no urgency to buy it now if you don’t want to.
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12140.0
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2023-12-11 00:00:00 UTC
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Goldman (GS) to Expand Private Credit, Reshuffles Executives
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AAPL
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https://www.nasdaq.com/articles/goldman-gs-to-expand-private-credit-reshuffles-executives
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nan
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nan
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The Goldman Sachs Group, Inc. GS intends to capitalize on the significant growth of the private credit industry. It aims to double the size of its business with assets worth $110 billion under management over the medium term.
Per Bloomberg, Marc Nachmann stated, “We think it’s the biggest opportunity set across the alternative space.”
According to an internal memo circulated by the company, GS has been making changes in its senior executives’ positions. It appointed Greg Olafson as its global head of private credit. Also, it appointed James Reynolds as the global head of direct lending and Kevin Sterling as the global head of investment-grade private credit and asset finance.
The private credit market has shown impressive growth over the years. Per Morgan Stanley’s private credit outlook that cited Bloomberg's January 2023 data, the size of the private credit market in the United States at the beginning of 2023 was approximately $1.4 trillion, up from $875 billion in 2020. Further, it is projected to reach $2.3 trillion by 2027.
The expansion into the private credit space will drive Goldman’s revenue growth efforts to scale back its consumer banking footprint and focus on its core strengths of investment banking, trading and asset management.
Accordingly, in October 2023, the company entered into an agreement with a consortium led by investment firm Sixth Street Partners to divest its consumer lending platform, GreenSky, and associated loans. In August 2023, it also entered into an agreement to divest its Personal Financial Management unit to the leading registered investment advisor, Creative Planning.
Last month, Goldman received a proposal from Apple Inc. AAPL to end the credit card partnership in the next 12-15 months. Per a Reuters article, the proposal included retreating from the entire consumer partnership with Goldman. This included both credit card and savings account facilities.
Goldman’s shares have risen 2.7% over the past six months compared with the industry’s 4.5% growth.
Image Source: Zacks Investment Research
GS presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the current scenario, Goldman is not the only one expanding into the direct lending space. Given the opportunities in this market, major banks like Citigroup Inc. C and JPMorgan Chase & Co. JPM have also been looking for prospective partners to expand their offerings in the private lending business.
C intends to enter the direct lending space by early January next year. This was reported by Bloomberg. According to a source familiar with the matter, “The initiative would complement the bank’s existing broadly syndicated leveraged finance business”. Citigroup is expected to associate with one or more partners as it would aid in providing the necessary capital for giving loans.
JPM is also on the lookout for a potential partner to enhance its operations in the private credit space. This was first reported by Bloomberg in early November. Per people familiar with the matter, the discussions were at an early stage with various sovereign wealth funds, endowments and alternate asset managers.
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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.
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Last month, Goldman received a proposal from Apple Inc. AAPL to end the credit card partnership in the next 12-15 months. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Citigroup Inc. (C) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Per Bloomberg, Marc Nachmann stated, “We think it’s the biggest opportunity set across the alternative space.” According to an internal memo circulated by the company, GS has been making changes in its senior executives’ positions.
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Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Citigroup Inc. (C) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Last month, Goldman received a proposal from Apple Inc. AAPL to end the credit card partnership in the next 12-15 months. The Goldman Sachs Group, Inc. GS intends to capitalize on the significant growth of the private credit industry.
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Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Citigroup Inc. (C) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Last month, Goldman received a proposal from Apple Inc. AAPL to end the credit card partnership in the next 12-15 months. Per Morgan Stanley’s private credit outlook that cited Bloomberg's January 2023 data, the size of the private credit market in the United States at the beginning of 2023 was approximately $1.4 trillion, up from $875 billion in 2020.
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Last month, Goldman received a proposal from Apple Inc. AAPL to end the credit card partnership in the next 12-15 months. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Citigroup Inc. (C) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. Per Morgan Stanley’s private credit outlook that cited Bloomberg's January 2023 data, the size of the private credit market in the United States at the beginning of 2023 was approximately $1.4 trillion, up from $875 billion in 2020.
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12141.0
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2023-12-11 00:00:00 UTC
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HYG, QGRW: Big ETF Inflows
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AAPL
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https://www.nasdaq.com/articles/hyg-qgrw%3A-big-etf-inflows
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nan
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nan
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares iBoxx $ High Yield Corporate Bond ETF, which added 12,500,000 units, or a 5.5% increase week over week.
And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree U.S. Quality Growth Fund, which added 825,000 units, for a 35.5% increase in outstanding units. Among the largest underlying components of QGRW, in morning trading today Apple is up about 0.9%, and Microsoft is higher by about 0.2%.
VIDEO: HYG, QGRW: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares iBoxx $ High Yield Corporate Bond ETF, which added 12,500,000 units, or a 5.5% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree U.S. Quality Growth Fund, which added 825,000 units, for a 35.5% increase in outstanding units. Among the largest underlying components of QGRW, in morning trading today Apple is up about 0.9%, and Microsoft is higher by about 0.2%.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares iBoxx $ High Yield Corporate Bond ETF, which added 12,500,000 units, or a 5.5% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree U.S. Quality Growth Fund, which added 825,000 units, for a 35.5% increase in outstanding units. VIDEO: HYG, QGRW: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares iBoxx $ High Yield Corporate Bond ETF, which added 12,500,000 units, or a 5.5% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree U.S. Quality Growth Fund, which added 825,000 units, for a 35.5% increase in outstanding units. VIDEO: HYG, QGRW: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the iShares iBoxx $ High Yield Corporate Bond ETF, which added 12,500,000 units, or a 5.5% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the WisdomTree U.S. Quality Growth Fund, which added 825,000 units, for a 35.5% increase in outstanding units. Among the largest underlying components of QGRW, in morning trading today Apple is up about 0.9%, and Microsoft is higher by about 0.2%.
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12142.0
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2023-12-11 00:00:00 UTC
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The "Magnificent Seven" Stocks Crushed Wall Street in 2023, but This Stock Could Continue the Party in 2024
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AAPL
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https://www.nasdaq.com/articles/the-magnificent-seven-stocks-crushed-wall-street-in-2023-but-this-stock-could-continue-the
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nan
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nan
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The "Magnificent Seven," a select group of the world's largest technology companies, has been the story of Wall Street this year. These stocks have seen gains of between 50% and 219% since in 2023.
Such gains aren't typical for stocks, especially those that are already among the largest market cap companies on the planet. It's fair to wonder whether the party will end in 2024.
Unfortunately, these types of gains probably won't go on forever. However, there could be one exception, one of the "Magnificent Seven" that's just getting started.
A year for the ages
If you're unfamiliar with the Magnificent Seven, they are Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA). They are not only leaders in their fields but have massive revenue and profits, are trusted brands, and have the attention of investors and consumers.
It's been a great year if you've been holding these stocks. The most popular stocks don't always perform well, but 2023 was an extraordinary year.
AAPL data by YCharts.
Investors must always put things in context, and this is no exception. While these stocks have gone to the metaphorical moon, their valuations have mostly followed. Their forward price-to-earnings ratios have risen by as much as 160%, except for one.
AAPL PE Ratio (Forward) data by YCharts.
Chip company Nvidia's forward earnings valuation actually fell despite its massive share price growth this year. That's because Nvidia is at the front of a generational growth opportunity, similar to what the internet or cloud technology did for the modern economy.
A $2 trillion industry in the making
Nvidia emerged as a force in artificial intelligence (AI). AI models require a ton of computing power to process immense amounts of data quickly. The hardware that provides that power is what allows users to type complex questions into large language models like ChatGPT and get detailed answers in seconds. Nvidia specializes in chips designed for these high-compute workloads.
Analysts estimate that it has a market share of between 70% and 95% in that slice of the chip market, dominating an industry with billions of dollars of investment pouring in. That shows up in Nvidia's financials, too, where its revenue growth has taken off in 2023.
NVDA Revenue (Quarterly YoY Growth) data by YCharts.
This could only be the beginning. Lisa Su, CEO of rival Advanced Micro Devices, has predicted the AI chip market will balloon to over $400 billion in the coming years. Researchers at Statista believe the global AI market opportunity will be worth as much as $2 trillion by 2030.
Even if AMD and other competitors chip away at Nvidia's market share, the growth of the pie could offset a lot of what they take from it. Remember, Nvidia's companywide revenue is at $45 billion today. A $400 billion chip market that Nvidia dominates should translate to years of revenue growth.
Somehow, Nvidia stock is still affordable
If these predictions are remotely accurate, you can make the case that Nvidia is still cheap today. Analysts believe Nvidia's earnings per share will come in at around $12.29 for the year. That gives it a price-to-earnings ratio of 38.
Growth expectations rocketed higher as Nvidia's growth accelerated and showed the impact AI could have on its business.
NVDA EPS LT Growth Estimates data by YCharts.
For a business growing earnings at 39%, a price-to-earnings ratio of 38 is a fine valuation. There are risks, in that Nvidia must live up to these high expectations. The stock has also risen by more than 200% since January, and any stock on that kind of a tear can cool off, so investors should expect some volatility.
But when all is said and done, AI would have to be a complete fluke for the long-term trend to point anywhere but up. Nvidia controls most of the market's AI chips, the building blocks of this new technology. That's a great driver's seat for the company and an opportunity for investors to ride Nvidia higher.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, 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 Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A year for the ages If you're unfamiliar with the Magnificent Seven, they are Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA). AAPL data by YCharts. AAPL PE Ratio (Forward) data by YCharts.
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A year for the ages If you're unfamiliar with the Magnificent Seven, they are Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA). AAPL data by YCharts. AAPL PE Ratio (Forward) data by YCharts.
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A year for the ages If you're unfamiliar with the Magnificent Seven, they are Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA). AAPL data by YCharts. AAPL PE Ratio (Forward) data by YCharts.
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A year for the ages If you're unfamiliar with the Magnificent Seven, they are Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA). AAPL data by YCharts. AAPL PE Ratio (Forward) data by YCharts.
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12143.0
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2023-12-11 00:00:00 UTC
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Is Lumentum a Top Stock to Buy in 2024?
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AAPL
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https://www.nasdaq.com/articles/is-lumentum-a-top-stock-to-buy-in-2024
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nan
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nan
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Lumentum's (NASDAQ: LITE) stock price has declined nearly 50% over the past three years. The maker of optical chips and lasers lost its luster as its revenue growth cooled off, its margins shrank, and it faced fresh competitive threats.
Since investing often involves looking toward the potential for future growth, should investors consider buying Lumentum as a turnaround play for 2024? Let's look at its previous challenges, its plans for growth, and its valuation to find out.
Image source: Getty Images.
What happened to Lumentum over the past five years?
In fiscal 2023 (which ended this July), Lumentum generated 88% of its revenue from its optical communications segment. This business produces optical chips for service providers, as well as 3D-sensing VCSEL (vertical-cavity surface-emitting laser) chips for mobile devices, cars, 3D printers, and other industrial machines. The remaining 12% of its revenue came from commercial manufacturing lasers. Here's how those two core businesses fared over the past five years.
METRIC
FY 2019
FY 2020
FY 2021
FY 2022
FY 2023
Optical communications revenue growth
29%
11%
7%
(6%)
3%
Lasers revenue growth
4%
(16%)
(25%)
59%
8%
Total revenue growth
26%
7%
4%
(2%)
3%
Data source: Lumentum.
The growth of its optical communications segment accelerated in fiscal 2019 as Apple (NASDAQ: AAPL) started installing its VCSEL chips in its iPhones. Other smartphone makers followed Apple's lead and started buying its VCSEL chips.
But over the following three years, the smartphone market cooled off. Apple also split Lumentum's VCSEL orders with Coherent (NYSE: COHR) and Sony (NYSE: SONY). As a result, the Mac maker's contribution to Lumentum's top line dropped from 30% in fiscal 2021 to 12% in fiscal 2023. At the same time, Apple reportedly increased Sony's share of its total VCSEL orders for the iPhone 15 because its chips were faster and more power efficient.
The U.S. trade restrictions against China also forced Lumentum to stop selling chips to Huawei, which had accounted for 11% of its revenue in fiscal 2021. That percentage dropped to zero over the following two years. Finally, macro headwinds over the past two years throttled its sales of optical chips to service providers, industrial customers, and telecom equipment giants like Ciena and Nokia, which together accounted for 26% of its revenue in fiscal 2023.
That gradual recovery of its commercial laser business, which suffered major disruptions during the pandemic, couldn't offset the sluggish growth of its optical communications segment. That slowdown drove it to buy NeoPhotonics and Cloud Light -- which both serve the higher-growth cloud and data center markets -- over the past two years to diversify its customer base.
Can Lumentum impress the bulls again?
For fiscal 2024, analysts expect Lumentum's revenue to decline 17% to $1.47 billion, even as it adds Cloud Light to its newly formed "cloud and networking" unit (formerly known as its optical communications unit). Lumentum also racked up a net loss of $132 million in fiscal 2023, and analysts project an even wider net loss of $189 million in fiscal 2024.
The company's slowing revenue growth, recent acquisitions, rising mix of lower-margin products, and underutilization of its factories all crushed its gross and operating margins in fiscal 2023. Analysts expect that pressure to persist and reduce its adjusted operating margin from 19.2% in fiscal 2023 to just 4.9% in fiscal 2024.
Those bleak forecasts indicate that Lumentum hasn't reached the trough of its cyclical downturn yet. It's preparing for a future without Apple as it expands its portfolio of higher-speed optical devices for cloud and data center customers, but those new businesses simply aren't generating enough revenue to offset its other weaknesses yet.
Its valuation isn't compelling yet
With an enterprise value of $4.5 billion, Lumentum might seem reasonably valued at 3 times this year's sales and 28 times its forward-adjusted earnings. But it isn't cheap yet, and it's easy to find other tech stocks that have more growth potential or are trading at lower valuations. It also lacks clear competitive advantages against Sony and Coherent in the VCSEL market. Simply put, I believe Lumentum's decline over the past three years was justified, and I don't see any compelling reasons to buy its stock as a turnaround play for 2024.
Should you invest $1,000 in Lumentum right now?
Before you buy stock in Lumentum, 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 Lumentum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
Leo Sun has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Coherent and Lumentum. 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.
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The growth of its optical communications segment accelerated in fiscal 2019 as Apple (NASDAQ: AAPL) started installing its VCSEL chips in its iPhones. Finally, macro headwinds over the past two years throttled its sales of optical chips to service providers, industrial customers, and telecom equipment giants like Ciena and Nokia, which together accounted for 26% of its revenue in fiscal 2023. The company's slowing revenue growth, recent acquisitions, rising mix of lower-margin products, and underutilization of its factories all crushed its gross and operating margins in fiscal 2023.
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The growth of its optical communications segment accelerated in fiscal 2019 as Apple (NASDAQ: AAPL) started installing its VCSEL chips in its iPhones. Optical communications revenue growth 29% 11% 7% (6%) 3% Lasers revenue growth 4% (16%) (25%) 59% 8% Total revenue growth 26% 7% 4% (2%) 3% Data source: Lumentum. Apple also split Lumentum's VCSEL orders with Coherent (NYSE: COHR) and Sony (NYSE: SONY).
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The growth of its optical communications segment accelerated in fiscal 2019 as Apple (NASDAQ: AAPL) started installing its VCSEL chips in its iPhones. Optical communications revenue growth 29% 11% 7% (6%) 3% Lasers revenue growth 4% (16%) (25%) 59% 8% Total revenue growth 26% 7% 4% (2%) 3% Data source: Lumentum. For fiscal 2024, analysts expect Lumentum's revenue to decline 17% to $1.47 billion, even as it adds Cloud Light to its newly formed "cloud and networking" unit (formerly known as its optical communications unit).
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The growth of its optical communications segment accelerated in fiscal 2019 as Apple (NASDAQ: AAPL) started installing its VCSEL chips in its iPhones. What happened to Lumentum over the past five years? Optical communications revenue growth 29% 11% 7% (6%) 3% Lasers revenue growth 4% (16%) (25%) 59% 8% Total revenue growth 26% 7% 4% (2%) 3% Data source: Lumentum.
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12144.0
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2023-12-11 00:00:00 UTC
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DGRW Has Hallmarks of a Great Dividend ETF
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AAPL
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https://www.nasdaq.com/articles/dgrw-has-hallmarks-of-a-great-dividend-etf
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nan
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nan
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There are scores of dividend exchange traded funds for advisors and investors to consider, and few are alike. However, there are some primary weighting methodologies found among such ETFs.
Those are weighting by yield, an emphasis on payout growth or a blend of the two. The WisdomTree US Quality Dividend Growth Fund (DGRW) fits in the second category, and that’s a positive for investors. For the three years ending December 11, the $10.8 billion ETF outperformed the S&P 500, the largest U.S.-listed dividend ETF and the Morningstar Dividend Yield Focus Index, confirming the WisdomTree ETF is a viable alternative basic core equity strategies fund.
DGRW has also shined bright relative to other such funds in the current environment of high interest rates. Since the start of 2022, the Federal Reserve hiked rates 11 times. While that hasn’t been a death knell for such ETFs over the past 24 months, DGRW topped the Morningstar Dividend Yield Focus Index during that period.
Why Dividend ETF DGRW Matters
DGRW breaks from the payout growth ETF pack by not focusing on dividend increase, but rather on companies’ return on assets and return on equity. These metrics can be harbingers of future dividend growth while steering investors away from payout cuts and suspensions.
“They are willing to accept lower current yields in exchange for higher future payouts and typically favor stocks with durable competitive advantages, long histories of dividend growth, and strong profitability,” according to Morningstar. “The stocks they invest in tend to trade at higher price multiples than those with higher dividend yields, reflecting their better outlooks but also raising the hurdle for future returns.”
By eschewing an emphasis on yield, DGRW can check some important boxes for investors. These include the potential for reduced volatility, the possibility of greater capital appreciation, and higher levels of diversification. After all, many of the highest-yielding stocks hail from a small number of slow growth, interest-rate-sensitive sectors. Those include real estate and utilities, groups that combine for just 1.49% of DGRW's roster.
Plus, the ETF's 31% weight to tech stocks, including a more than 15% combined allocation to Microsoft (MSFT) and Apple (AAPL), can help the fund keep pace with tech-led rallies. That's something many dividend ETFs don’t do.
“They don’t always keep pace with the broader market during rallies. Dividend growth funds typically underperform the market during periods of exceptionally strong growth, when expensive stocks that pay little, if any, dividends fuel the market’s rise,” concluded Morningstar.
For more news, information, and analysis, visit the Modern Alpha Channel.
Read more on ETFTrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Plus, the ETF's 31% weight to tech stocks, including a more than 15% combined allocation to Microsoft (MSFT) and Apple (AAPL), can help the fund keep pace with tech-led rallies. While that hasn’t been a death knell for such ETFs over the past 24 months, DGRW topped the Morningstar Dividend Yield Focus Index during that period. “They are willing to accept lower current yields in exchange for higher future payouts and typically favor stocks with durable competitive advantages, long histories of dividend growth, and strong profitability,” according to Morningstar.
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Plus, the ETF's 31% weight to tech stocks, including a more than 15% combined allocation to Microsoft (MSFT) and Apple (AAPL), can help the fund keep pace with tech-led rallies. For the three years ending December 11, the $10.8 billion ETF outperformed the S&P 500, the largest U.S.-listed dividend ETF and the Morningstar Dividend Yield Focus Index, confirming the WisdomTree ETF is a viable alternative basic core equity strategies fund. “They are willing to accept lower current yields in exchange for higher future payouts and typically favor stocks with durable competitive advantages, long histories of dividend growth, and strong profitability,” according to Morningstar.
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Plus, the ETF's 31% weight to tech stocks, including a more than 15% combined allocation to Microsoft (MSFT) and Apple (AAPL), can help the fund keep pace with tech-led rallies. For the three years ending December 11, the $10.8 billion ETF outperformed the S&P 500, the largest U.S.-listed dividend ETF and the Morningstar Dividend Yield Focus Index, confirming the WisdomTree ETF is a viable alternative basic core equity strategies fund. Why Dividend ETF DGRW Matters DGRW breaks from the payout growth ETF pack by not focusing on dividend increase, but rather on companies’ return on assets and return on equity.
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Plus, the ETF's 31% weight to tech stocks, including a more than 15% combined allocation to Microsoft (MSFT) and Apple (AAPL), can help the fund keep pace with tech-led rallies. Those are weighting by yield, an emphasis on payout growth or a blend of the two. That's something many dividend ETFs don’t do.
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12145.0
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2023-12-11 00:00:00 UTC
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AAPL Factor-Based Stock Analysis
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AAPL
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https://www.nasdaq.com/articles/aapl-factor-based-stock-analysis-12
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nan
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nan
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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
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
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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.
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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.
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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.
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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.
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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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12146.0
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2023-12-11 00:00:00 UTC
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1 Stunning Stock Market Statistic That Will Have You Racing for the "Buy" Button
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AAPL
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https://www.nasdaq.com/articles/1-stunning-stock-market-statistic-that-will-have-you-racing-for-the-buy-button
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nan
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nan
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The S&P stock market index included just 90 companies in 1926. It was expanded to include 500 companies in 1957, and subsequently became the S&P 500 (SNPINDEX: ^GSPC). Since then, it has served as the benchmark used by investors to measure the performance of the broader market.
There is a mountain of evidence that proves a diversified portfolio of stocks can generate incredible wealth over the long term. For example, if you invested $1,000 in an S&P 500 index fund in 1957 (with dividends reinvested), it would be worth over $671,000 today.
That represents a compound annual return of 10.2% over the last 67 years! But there's an even more impressive statistic beneath the surface of that number that might have you racing to invest in the stock market for the long term.
Image source: Getty Images.
Index funds are great, but some individual stocks have performed even better
It's a great honor to be accepted into the S&P 500 because constituents have to meet strict criteria. A company must be worth at least $14.5 billion, it must be profitable in the most recent 12-month period, and at least 50% of its shares must be available for public trading. That's a just sample of the requirements, but even after ticking all the boxes, the company still has to be selected by the U.S. Index Committee.
It's a surefire way to guarantee only the highest-quality companies make the cut. After all, they will be joining stocks like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), which are the two most important components of the S&P 500. They have a combined market value of $5.8 trillion, and as a result, they account for 15.5% of the index's weight.
But investors who bought those two stocks individually have significantly outperformed the index over the long term:
Apple stock came public in 1980 at a split-adjusted price of about $0.10 per share. It now trades above $190 per share, for a return of over 190,000%.
Microsoft stock came public in 1986 at a split-adjusted price of about $0.0729 per share. At a recent price above $370, its shares have produced gains of well over 500,000%.
That means $1,000 invested in Apple at its IPO would be worth $1.9 million today. The same amount invested in Microsoft at its IPO would be worth almost $5.1 million. It further proves there is no one way to invest in the stock market; investors of all experience levels, and with differing appetites for risk, can all build fortunes over the long term.
Here's the statistic that will make you race to buy stocks
Since 1957, the S&P 500 has posted an annual loss 15 times, and it has delivered a positive annual return 52 times. That means you are more than 3 times as likely to make money investing in stocks during a given year than you are to lose money. But it gets better.
The index has delivered an annual return of at least 10% on 41 occasions. That means you're more than twice as likely to reap a double-digit gain than you are to incur a loss (of any size) in a given year.
But here's my favorite statistic, and the one that might convince you to invest in the stock market for the long term. The S&P 500 has delivered an annual return of 20% (or more) on 24 occasions since 1957. That means you are more likely to earn a return that is twice the long-term average (10%) than you are to suffer a loss of any kind!
If you've missed out on the stock market's incredible run of success so far, don't worry. It's never too late to invest, because the best years might still be to come.
Should you invest $1,000 in S&P 500 Index-Price Return (USD) right now?
Before you buy stock in S&P 500 Index-Price Return (USD), 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 S&P 500 Index-Price Return (USD) wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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See the 10 stocks
*Stock Advisor returns as of December 7, 2023
Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends 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.
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After all, they will be joining stocks like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), which are the two most important components of the S&P 500. There is a mountain of evidence that proves a diversified portfolio of stocks can generate incredible wealth over the long term. But there's an even more impressive statistic beneath the surface of that number that might have you racing to invest in the stock market for the long term.
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After all, they will be joining stocks like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), which are the two most important components of the S&P 500. But investors who bought those two stocks individually have significantly outperformed the index over the long term: Apple stock came public in 1980 at a split-adjusted price of about $0.10 per share. Here's the statistic that will make you race to buy stocks Since 1957, the S&P 500 has posted an annual loss 15 times, and it has delivered a positive annual return 52 times.
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After all, they will be joining stocks like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), which are the two most important components of the S&P 500. But investors who bought those two stocks individually have significantly outperformed the index over the long term: Apple stock came public in 1980 at a split-adjusted price of about $0.10 per share. Before you buy stock in S&P 500 Index-Price Return (USD), 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 S&P 500 Index-Price Return (USD) wasn't one of them.
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After all, they will be joining stocks like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), which are the two most important components of the S&P 500. The S&P stock market index included just 90 companies in 1926. But investors who bought those two stocks individually have significantly outperformed the index over the long term: Apple stock came public in 1980 at a split-adjusted price of about $0.10 per share.
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12147.0
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2023-12-11 00:00:00 UTC
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Google's court loss to Epic Games may cost billions but final outcome years away
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AAPL
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https://www.nasdaq.com/articles/googles-court-loss-to-epic-games-may-cost-billions-but-final-outcome-years-away
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nan
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nan
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By Jaspreet Singh and Harshita Mary Varghese
Dec 12 (Reuters) - Google's stunning defeat in a legal battle with "Fortnite" maker Epic Games may clear the way for rival app stores on its Android mobile system but a lengthy appeals process will likely prevent any changes for years, according to analysts and legal experts.
A jury in California found on Monday that the Alphabet-owned company's GOOGL.O Play app store operated as an illegal monopoly, quashing competition and charging app developers unduly high fees of up to 30%.
Epic Games will now have a chance to submit a court filing on how it wants Google's Play Store to be fixed -- potentially putting at risk what Wells Fargo estimates is $10 billion in annual revenue from app sales and in-app purchases for the tech giant.
"This is a big win for Epic," said Pinar Akman, professor of competition law at the University of Leeds.
"The usual remedy in such case ... would mean Google may be required to allow developers to use payment systems other than Google's. If such a remedy is adopted, then that will have an impact on the entire ecosystem and business model."
Google takes a cut on each digital purchase through Play Store on Android, the mobile system it develops. While revenue from such transactions is a fraction of the total sales, it's a high-margin business for the company, according to analysts.
The remedies could force it to allow rival app stores or lower the fees it charges on app sales and in-app purchases.
Alphabet shares were down nearly 1% on Tuesday.
The unanimous ruling by the jury will intensify pressure on Google at a time it is caught in a legal battle with the U.S. Justice Department (DoJ), which has accused the online search leader of breaking antitrust law to stay on top.
"It's worth noting the ad tech case is also a jury trial. Ad tech is more complicated than app stores, but DOJ still must be feeling encouraged by last night's jury ruling," analysts at TD Cowen said.
The decision is also expected to deepen questions over Apple's AAPL.O market dominance. The company won a similar fight against Epic but both the companies have approached the Supreme Court to review their dispute.
While it may not directly impact the case, the Google ruling will amplify questions about the influence Apple exerts through its App Store, said Eleanor Fox, professor emerita at the New York University School of Law.
"Apple might be and should be more concerned that it will be found to be a monopoly," Fox said.
LENGTHY APPEALS PROCESS
Google has said it will appeal the verdict, and the case will head to the San Francisco-based 9th U.S. Circuit Court of Appeals. That is the same court that heard Epic's arguments last year to revive its antitrust claims against Apple.
In January, U.S. District Judge James Donato in San Francisco will weigh Epic's request for an injunction. Epic and Google will face off for a second time in court — before the judge only.
Google would likely argue that the proposed injunction is too broad and needs to be more tailored.
"It's not so much will there be an injunction but the strength and scope of that remedy," said antitrust legal scholar Christine Bartholomew of the University at Buffalo School of Law in New York.
Still, analysts expect Google to appeal any remedy orders from Judge Donato, delaying any potential changes.
"Using the timeline in Epic v. Apple as a guide, the 9th Circuit would likely rule around Q2 2025," TD Cowen said.
(Reporting by Jaspreet Singh, Harshita Varghese and Aditya Soni in Bengaluru and Mike Scarcella; Editing by Shinjini Ganguli)
((Aditya.Soni@thomsonreuters.com; +91 80 6210 0555;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The decision is also expected to deepen questions over Apple's AAPL.O market dominance. Epic Games will now have a chance to submit a court filing on how it wants Google's Play Store to be fixed -- potentially putting at risk what Wells Fargo estimates is $10 billion in annual revenue from app sales and in-app purchases for the tech giant. The unanimous ruling by the jury will intensify pressure on Google at a time it is caught in a legal battle with the U.S. Justice Department (DoJ), which has accused the online search leader of breaking antitrust law to stay on top.
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The decision is also expected to deepen questions over Apple's AAPL.O market dominance. By Jaspreet Singh and Harshita Mary Varghese Dec 12 (Reuters) - Google's stunning defeat in a legal battle with "Fortnite" maker Epic Games may clear the way for rival app stores on its Android mobile system but a lengthy appeals process will likely prevent any changes for years, according to analysts and legal experts. The remedies could force it to allow rival app stores or lower the fees it charges on app sales and in-app purchases.
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The decision is also expected to deepen questions over Apple's AAPL.O market dominance. By Jaspreet Singh and Harshita Mary Varghese Dec 12 (Reuters) - Google's stunning defeat in a legal battle with "Fortnite" maker Epic Games may clear the way for rival app stores on its Android mobile system but a lengthy appeals process will likely prevent any changes for years, according to analysts and legal experts. Epic Games will now have a chance to submit a court filing on how it wants Google's Play Store to be fixed -- potentially putting at risk what Wells Fargo estimates is $10 billion in annual revenue from app sales and in-app purchases for the tech giant.
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The decision is also expected to deepen questions over Apple's AAPL.O market dominance. While revenue from such transactions is a fraction of the total sales, it's a high-margin business for the company, according to analysts. Ad tech is more complicated than app stores, but DOJ still must be feeling encouraged by last night's jury ruling," analysts at TD Cowen said.
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12148.0
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2023-12-11 00:00:00 UTC
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Apple to be hit by EU antitrust order in fight with Spotify - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apple-to-be-hit-by-eu-antitrust-order-in-fight-with-spotify-bloomberg-news
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nan
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nan
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Adds details from the report and background
Dec 13 (Reuters) - Apple AAPL.O is expected to be hit by a ban on its App Store rules that govern some music-streaming services and a potential hefty fine from European Union regulators, Bloomberg News reported on Wednesday.
EU authorities are putting the finishing touches to a decision that would prohibit Apple's practice of blocking music services from pushing their users away from App Store to alternative subscription options, the report said, citing people familiar with the investigation.
The decision is slated for early next year and Apple could face a fine of as much as 10% of its annual sales, Bloomberg reported.
The probe was sparked by a complaint nearly four years ago from Sweden's Spotify Technology SPOT.N, which claimed it was forced to ramp up the price of its monthly subscriptions to cover costs associated with Apple's App Store rules.
The European Commission filed a chargesheet against Apple earlier this year, saying the conditions are unnecessary and mean customers may end up paying more.
Apple and representatives from the European Commission did not immediately respond to Reuters requests for comment.
Apple shares were marginally up in afternoon trading.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Arun Koyyur)
((yuvraj.malik@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from the report and background Dec 13 (Reuters) - Apple AAPL.O is expected to be hit by a ban on its App Store rules that govern some music-streaming services and a potential hefty fine from European Union regulators, Bloomberg News reported on Wednesday. EU authorities are putting the finishing touches to a decision that would prohibit Apple's practice of blocking music services from pushing their users away from App Store to alternative subscription options, the report said, citing people familiar with the investigation. The probe was sparked by a complaint nearly four years ago from Sweden's Spotify Technology SPOT.N, which claimed it was forced to ramp up the price of its monthly subscriptions to cover costs associated with Apple's App Store rules.
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Adds details from the report and background Dec 13 (Reuters) - Apple AAPL.O is expected to be hit by a ban on its App Store rules that govern some music-streaming services and a potential hefty fine from European Union regulators, Bloomberg News reported on Wednesday. EU authorities are putting the finishing touches to a decision that would prohibit Apple's practice of blocking music services from pushing their users away from App Store to alternative subscription options, the report said, citing people familiar with the investigation. The probe was sparked by a complaint nearly four years ago from Sweden's Spotify Technology SPOT.N, which claimed it was forced to ramp up the price of its monthly subscriptions to cover costs associated with Apple's App Store rules.
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Adds details from the report and background Dec 13 (Reuters) - Apple AAPL.O is expected to be hit by a ban on its App Store rules that govern some music-streaming services and a potential hefty fine from European Union regulators, Bloomberg News reported on Wednesday. EU authorities are putting the finishing touches to a decision that would prohibit Apple's practice of blocking music services from pushing their users away from App Store to alternative subscription options, the report said, citing people familiar with the investigation. The probe was sparked by a complaint nearly four years ago from Sweden's Spotify Technology SPOT.N, which claimed it was forced to ramp up the price of its monthly subscriptions to cover costs associated with Apple's App Store rules.
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Adds details from the report and background Dec 13 (Reuters) - Apple AAPL.O is expected to be hit by a ban on its App Store rules that govern some music-streaming services and a potential hefty fine from European Union regulators, Bloomberg News reported on Wednesday. EU authorities are putting the finishing touches to a decision that would prohibit Apple's practice of blocking music services from pushing their users away from App Store to alternative subscription options, the report said, citing people familiar with the investigation. The decision is slated for early next year and Apple could face a fine of as much as 10% of its annual sales, Bloomberg reported.
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12149.0
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2023-12-11 00:00:00 UTC
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Can Shiba Inu Reach $0.01?
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AAPL
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https://www.nasdaq.com/articles/can-shiba-inu-reach-%240.01-4
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nan
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nan
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Even though Shiba Inu (CRYPTO: SHIB) has likely been one of the most volatile cryptocurrencies out there, it has still been a big winner for those daring speculators who put their money behind it. Although the token is 89% below its peak price, it has crushed the stock market since its launch back in 2020.
Some fervent Shiba Inu bulls probably have their sights set on a much higher price target, though.
Can this dog-inspired cryptocurrency one day reach $0.01? This would translate to a monster gain of more than 1,000-fold from today's price. Let's dive in and find out if this is a possibility.
Overview of Shiba Inu
Shiba Inu was created to be more functional than its dog-themed rival, Dogecoin, which is its own blockchain. Shiba Inu, by contrast, was built on top of the Ethereum network. Because of this design decision, Shiba Inu works with smart contracts and decentralized applications.
People can use Shiba Inu's token to send or receive payments to others. And perhaps more meaningful, the token can be used to pay for things at select merchants. But according to cryptwerk.com, only 792 businesses accept payment with Shiba Inu, so it has barely made any headway in this area.
Developers recently launched Shibarium, which is a Layer-2 scaling solution that is meant to improve transaction speeds and lower fees for users. There has been heightened excitement around this update. And it could propel Shiba Inu's adoption in terms of non-fungible tokens or the metaverse. At least that's the hope of the network's supporters.
Despite the aims to raise the utility of Shiba Inu, it's worth mentioning that this token has really only been used as a tool for financial speculation. This is the case with all cryptocurrencies out there, including Bitcoin and Ethereum.
Missing the rally
It's disheartening for Shiba Inu believers to see that the token hasn't performed that well in 2023, rising just 20% (as of Dec. 12). The overall crypto market, on the other hand, has been a huge winner, going from $800 billion at the start of the year to almost $1.6 trillion today.
Moreover, both Bitcoin and Ethereum, as well as some of the largest tech stocks, have had wonderful runs this year.
Amid a resurgence in investor optimism and a risk-seeking attitude, it makes you wonder why Shiba Inu hasn't participated more in the stock and crypto rallies in 2023. If the token can't rise in this environment, what will it take for Shiba Inu to grow?
Avoid this token
Now that readers have a better understanding of Shiba Inu and its recent price performance, it's time to think critically about the possibility of the token soaring more than 1,000-fold and reaching $0.01.
To be clear, I don't think this is a possibility. And I wouldn't bet any money on this outcome happening.
Based on Shiba Inu's current token supply of 589 trillion, at a price of $0.01 per token, the total market cap would be roughly $5.9 trillion. It's wild to believe that a token with virtually no real-world utility can command this type of valuation.
Based on that gargantuan figure, Shiba Inu would be worth more than Apple, maybe the most successful business of all time based on its market valuation of about $3 trillion. This tech giant is a cultural icon with a powerful brand that sells incredibly popular hardware and software products. There's no rational way to believe that Shiba Inu is worth double that of an enterprise like this.
It's best not to get sucked into the hype and the allure of financial speculation. Investors should avoid this crypto like the plague.
10 stocks we like better than Shiba Inu
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Shiba Inu wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 29, 2023
Neil Patel and his clients have positions in Bitcoin. The Motley Fool has positions in and recommends Apple, Bitcoin, and Ethereum. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Even though Shiba Inu (CRYPTO: SHIB) has likely been one of the most volatile cryptocurrencies out there, it has still been a big winner for those daring speculators who put their money behind it. Developers recently launched Shibarium, which is a Layer-2 scaling solution that is meant to improve transaction speeds and lower fees for users. Amid a resurgence in investor optimism and a risk-seeking attitude, it makes you wonder why Shiba Inu hasn't participated more in the stock and crypto rallies in 2023.
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Overview of Shiba Inu Shiba Inu was created to be more functional than its dog-themed rival, Dogecoin, which is its own blockchain. Avoid this token Now that readers have a better understanding of Shiba Inu and its recent price performance, it's time to think critically about the possibility of the token soaring more than 1,000-fold and reaching $0.01. Based on Shiba Inu's current token supply of 589 trillion, at a price of $0.01 per token, the total market cap would be roughly $5.9 trillion.
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Overview of Shiba Inu Shiba Inu was created to be more functional than its dog-themed rival, Dogecoin, which is its own blockchain. Avoid this token Now that readers have a better understanding of Shiba Inu and its recent price performance, it's time to think critically about the possibility of the token soaring more than 1,000-fold and reaching $0.01. Based on Shiba Inu's current token supply of 589 trillion, at a price of $0.01 per token, the total market cap would be roughly $5.9 trillion.
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Despite the aims to raise the utility of Shiba Inu, it's worth mentioning that this token has really only been used as a tool for financial speculation. Avoid this token Now that readers have a better understanding of Shiba Inu and its recent price performance, it's time to think critically about the possibility of the token soaring more than 1,000-fold and reaching $0.01. To be clear, I don't think this is a possibility.
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12150.0
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2023-12-11 00:00:00 UTC
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Warren Buffett Is Raking In Nearly $3.5 Billion in Annual Dividend Income From Just 4 Stocks
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-is-raking-in-nearly-%243.5-billion-in-annual-dividend-income-from-just-4
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nan
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nan
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It's safe to say that Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett knows a thing or two about investing. In his 58 years at the helm, he's overseen a greater than 4,300,000% aggregate gain in Berkshire's Class A shares (BRK.A), as well as doubled up the annualized total return, including dividends, of the widely followed S&P 500.
Lengthy books have been written on the core philosophies the Oracle of Omaha lives by, which includes thinking long-term and buying into great businesses with sustained catalysts at a fair price.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
But what doesn't receive nearly enough credit for Buffett's nearly six decades of investment success is his penchant for buying dividend stocks. Companies that pay a regular dividend to their shareholders are usually profitable and time-tested. What's more, income stocks have a history of running circles around public companies that don't offer a payout in the return department.
A majority of the stocks currently held by Berkshire Hathaway pay a dividend, with Buffett's company set to collect close to $6 billion in income over the coming 12 months.
But what's truly surprising is how much of this income will derive from a small number of holdings. Warren Buffett and his team are set to rake in nearly $3.5 billion in annual dividend income from just four stocks over the next year.
Bank of America: $991,537,926 in annual dividend income
Berkshire Hathaway's No. 2 holding by market value, Bank of America (NYSE: BAC), will be doing the heaviest lifting of all when it comes to providing dividend income. The more than 1.03 billion shares Buffett's company owns of BofA will translate into almost $992 million in dividend income over the next 12 months.
The lure of bank stocks for Buffett has always been their cyclical ties and the recurring need for financial services. Though banks are cyclical, and will therefore contend with higher delinquency rates and loan losses during recessions, periods of economic expansion last considerably longer than downturns. Rather than foolishly trying to time when these downturns will occur, Buffett has wisely positioned Berkshire Hathaway in high-quality financial stocks, like BofA, to take advantage of long-winded expansions.
But there's more to Berkshire's No. 2 holding than just macroeconomic factors. Bank of America is also the most interest rate-sensitive of America's largest banks by assets. When interest rates change, no bank is more impacted than BofA.
Since March 2022, the nation's central bank has increased the federal funds rate by 525 basis points, which is the fastest pace of rate hikes in more than four decades. Every rate hike is leading to billions of dollars in added net interest income each quarter.
As I've previously pointed out, BofA has done an admirable job of digitizing its platform. Online and mobile-based transactions are considerably cheaper than in-person interactions. As more of its customers utilize digital transactions, Bank of America will be able to consolidate some of its physical branches and lower its expenses.
Apple: $878,937,967 in annual dividend income
Perhaps it comes as no surprise that tech stock Apple (NASDAQ: AAPL) plays a key role in Berkshire Hathaway's dividend income collection. Apple accounted for 49% of the company's nearly $366 billion of invested assets as of the closing bell on Dec. 8, 2023, making it the biggest holding by a considerable amount in Buffett's portfolio.
The $15 billion Apple is doling out in dividends annually is a reflection of its top-notch branding, as well as its cutting-edge innovation.
According to Kantar's 2023 BrandZ Rankings, Apple is the world's most valuable brand. It has an exceptionally loyal customer base, along with phenomenal pricing power. Meanwhile, Interbrand has listed Apple as the world's "best brand" for 11 consecutive years.
Beyond brand value, Apple is riding high thanks to its innovation. It's been a leading provider of smartphones for more than a decade, and it's led the way with tablets via the iPad. Moreover, CEO Tim Cook is overseeing the steady transition of Apple into a platforms-focused company. A subscription-driven model will further enhance customer loyalty and meaningfully improve the company's operating margin over the long term.
I'd be remiss if I didn't also mention Apple's unsurpassed capital-return program. In addition to its massive nominal-dollar dividend, Apple has repurchased in excess of $600 billion worth of its common stock since the start of 2013. Buffett has always appreciated a rock-solid share-buyback program.
Image source: Getty Images.
Occidental Petroleum: $843,396,739 in annual dividend income (including preferred stock dividends)
Buffett and his team will be raking in a boatload of dividend income from energy stock Occidental Petroleum (NYSE: OXY) over the next 12 months, with this income coming from two separate channels.
Berkshire Hathaway is expected to receive $164.2 million in dividend income from the nearly 228.1 million shares of Occidental common stock it owns. Every single share of common stock has been purchased since the start of 2022.
Buffett's company also holds $8.49 billion of preferred stock in Occidental yielding 8% that'll generate around $679.2 million in annual income. Berkshire originally held $10 billion in preferred stock tied to a 2019 deal that helped Occidental acquire Anadarko. However, Occidental has redeemed $1.51 billion of this preferred position, through Nov. 7.
What makes Occidental such an attractive investment to Buffett and his team is the expectation that the spot price of crude oil will remain above its historic average. Supporting this thesis is Russia's war with Ukraine, along with three years of capital underinvestment by energy companies caused by the COVID-19 pandemic. As long as crude oil supply remains tight, there's a good likelihood that the spot price of crude oil will stay elevated.
A higher spot price for crude oil is especially important for Occidental Petroleum. Although it's an integrated energy company, it generates the lion's share of its revenue from its drilling operations. This is to say that if the spot price of crude oil increases, Occidental's operating cash flow will benefit more than most other integrated oil and gas operators. Just keep in mind that the reciprocal would also be true -- a declining spot price for crude oil will disproportionately hurt Occidental's operating cash flow.
Coca-Cola: $736,000,000 in annual dividend income
The fourth stock that, collectively with Bank of America, Apple, and Occidental Petroleum, allows Buffett to rake in nearly $3.5 billion in annual dividend income is beverage stock Coca-Cola (NYSE: KO). Coca-Cola has raised its base annual payout for 61 consecutive years, and it's Berkshire's longest continuous holding (since 1988).
One reason Coke is such a phenomenal income producer is that it's a consumer staples stock. Regardless of how well or poorly the U.S. and global economy perform, consumers are going to need food and beverages. This creates a predictable demand floor for Coca-Cola each year.
Branding is another catalyst for Coca-Cola and its rock-solid payout. Coca-Cola has topped the annually released "Brand Footprint" report from Kantar as the most chosen brand for 10 years running, as of 2022. Coke has a well-recognized logo and its top-notch marketing efforts have helped it connect with young and mature audiences alike for decades.
Equally important, Coca-Cola brings virtually unmatched geographic diversity to the table. With the exception of North Korea, Cuba, and Russia (the latter of which is due to its aforementioned ongoing war with Ukraine), Coke is operating in every other country around the globe. It has 26 brands generating at least $1 billion in annual sales, and it's able to rely on emerging markets for a proverbial shot in the arm of organic growth.
Berkshire Hathaway's cost basis for its Coca-Cola shares is just $3.2475. Based on its $1.84-per-share annual payout, Buffett's company is netting almost a 57% yield on cost. Put another way, Coca-Cola's dividend income alone is more than doubling Berkshire's initial investment in the company every two years.
Should you invest $1,000 in Bank of America right now?
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Occidental Petroleum and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple: $878,937,967 in annual dividend income Perhaps it comes as no surprise that tech stock Apple (NASDAQ: AAPL) plays a key role in Berkshire Hathaway's dividend income collection. In his 58 years at the helm, he's overseen a greater than 4,300,000% aggregate gain in Berkshire's Class A shares (BRK.A), as well as doubled up the annualized total return, including dividends, of the widely followed S&P 500. Lengthy books have been written on the core philosophies the Oracle of Omaha lives by, which includes thinking long-term and buying into great businesses with sustained catalysts at a fair price.
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Apple: $878,937,967 in annual dividend income Perhaps it comes as no surprise that tech stock Apple (NASDAQ: AAPL) plays a key role in Berkshire Hathaway's dividend income collection. A majority of the stocks currently held by Berkshire Hathaway pay a dividend, with Buffett's company set to collect close to $6 billion in income over the coming 12 months. Occidental Petroleum: $843,396,739 in annual dividend income (including preferred stock dividends) Buffett and his team will be raking in a boatload of dividend income from energy stock Occidental Petroleum (NYSE: OXY) over the next 12 months, with this income coming from two separate channels.
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Apple: $878,937,967 in annual dividend income Perhaps it comes as no surprise that tech stock Apple (NASDAQ: AAPL) plays a key role in Berkshire Hathaway's dividend income collection. Occidental Petroleum: $843,396,739 in annual dividend income (including preferred stock dividends) Buffett and his team will be raking in a boatload of dividend income from energy stock Occidental Petroleum (NYSE: OXY) over the next 12 months, with this income coming from two separate channels. Coca-Cola: $736,000,000 in annual dividend income The fourth stock that, collectively with Bank of America, Apple, and Occidental Petroleum, allows Buffett to rake in nearly $3.5 billion in annual dividend income is beverage stock Coca-Cola (NYSE: KO).
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Apple: $878,937,967 in annual dividend income Perhaps it comes as no surprise that tech stock Apple (NASDAQ: AAPL) plays a key role in Berkshire Hathaway's dividend income collection. Bank of America: $991,537,926 in annual dividend income Berkshire Hathaway's No. Buffett's company also holds $8.49 billion of preferred stock in Occidental yielding 8% that'll generate around $679.2 million in annual income.
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12151.0
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2023-12-11 00:00:00 UTC
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iPhone supplier Murata targets China budget smartphone makers
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AAPL
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https://www.nasdaq.com/articles/iphone-supplier-murata-targets-china-budget-smartphone-makers
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nan
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nan
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By Sam Nussey and Miho Uranaka
TOKYO, Dec 13 (Reuters) - Japanese smartphone component supplier Murata Manufacturing 6981.T aims to grow sales to Chinese makers of lower-end handsets destined for emerging markets as it looks beyond saturated strongholds.
Murata, a leading supplier of ceramic capacitors, sees the smartphone market growing 5% in the year ending March 2025, aided by demand for mid- and low-end handsets in places such as India, Africa and Southeast Asia.
"Exports by Chinese makers to areas with growing populations are really increasing," Murata President Norio Nakajima said in an interview.
Murata, a supplier to Apple AAPL.O and Samsung Electronics 005930.KS, is among industry players grappling with depressed smartphone demand as consumers hold on to handsets for longer.
In October, smartphone sales grew 5% year-on-year after more than two years of decline, boosted by emerging-market demand, showed data from research firm Counterpoint.
Within China itself, excess inventory is normalising, Nakajima said.
Last month, Apple said demand for its iPhone in China remains strong, with analysts also pointing to strong sales of smartphones from local champion Huawei Technologies HWT.UL.
(Reporting by Sam Nussey and Miho Uranaka; Editing by Christopher Cushing)
((sam.nussey@tr.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Murata, a supplier to Apple AAPL.O and Samsung Electronics 005930.KS, is among industry players grappling with depressed smartphone demand as consumers hold on to handsets for longer. By Sam Nussey and Miho Uranaka TOKYO, Dec 13 (Reuters) - Japanese smartphone component supplier Murata Manufacturing 6981.T aims to grow sales to Chinese makers of lower-end handsets destined for emerging markets as it looks beyond saturated strongholds. Murata, a leading supplier of ceramic capacitors, sees the smartphone market growing 5% in the year ending March 2025, aided by demand for mid- and low-end handsets in places such as India, Africa and Southeast Asia.
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Murata, a supplier to Apple AAPL.O and Samsung Electronics 005930.KS, is among industry players grappling with depressed smartphone demand as consumers hold on to handsets for longer. By Sam Nussey and Miho Uranaka TOKYO, Dec 13 (Reuters) - Japanese smartphone component supplier Murata Manufacturing 6981.T aims to grow sales to Chinese makers of lower-end handsets destined for emerging markets as it looks beyond saturated strongholds. Murata, a leading supplier of ceramic capacitors, sees the smartphone market growing 5% in the year ending March 2025, aided by demand for mid- and low-end handsets in places such as India, Africa and Southeast Asia.
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Murata, a supplier to Apple AAPL.O and Samsung Electronics 005930.KS, is among industry players grappling with depressed smartphone demand as consumers hold on to handsets for longer. By Sam Nussey and Miho Uranaka TOKYO, Dec 13 (Reuters) - Japanese smartphone component supplier Murata Manufacturing 6981.T aims to grow sales to Chinese makers of lower-end handsets destined for emerging markets as it looks beyond saturated strongholds. Murata, a leading supplier of ceramic capacitors, sees the smartphone market growing 5% in the year ending March 2025, aided by demand for mid- and low-end handsets in places such as India, Africa and Southeast Asia.
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Murata, a supplier to Apple AAPL.O and Samsung Electronics 005930.KS, is among industry players grappling with depressed smartphone demand as consumers hold on to handsets for longer. By Sam Nussey and Miho Uranaka TOKYO, Dec 13 (Reuters) - Japanese smartphone component supplier Murata Manufacturing 6981.T aims to grow sales to Chinese makers of lower-end handsets destined for emerging markets as it looks beyond saturated strongholds. Murata, a leading supplier of ceramic capacitors, sees the smartphone market growing 5% in the year ending March 2025, aided by demand for mid- and low-end handsets in places such as India, Africa and Southeast Asia.
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12152.0
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2023-12-11 00:00:00 UTC
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After Hours Most Active for Dec 12, 2023 : AAPL, HST, CRH, COTY, MSFT, CCCC, BMY, QQQ, BAC, COMP, CMCSA, F
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-dec-12-2023-%3A-aapl-hst-crh-coty-msft-cccc-bmy-qqq-bac-comp
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nan
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nan
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The NASDAQ 100 After Hours Indicator is up 7.82 to 16,362.07. The total After hours volume is currently 94,543,373 shares traded.
The following are the most active stocks for the after hours session:
Apple Inc. (AAPL) is +0.03 at $194.74, with 4,650,705 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Host Hotels & Resorts, Inc. (HST) is unchanged at $18.61, with 3,764,737 shares traded. As reported in the last short interest update the days to cover for HST is 8.579568; this calculation is based on the average trading volume of the stock.
CRH PLC (CRH) is unchanged at $65.63, with 3,126,439 shares traded. As reported by Zacks, the current mean recommendation for CRH is in the "buy range".
Coty Inc. (COTY) is -0.01 at $11.90, with 2,565,817 shares traded. COTY's current last sale is 99.17% of the target price of $12.
Microsoft Corporation (MSFT) is +0.33 at $374.71, with 2,550,001 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
C4 Therapeutics, Inc. (CCCC) is +0.16 at $2.50, with 2,548,117 shares traded. As reported in the last short interest update the days to cover for CCCC is 8.628582; this calculation is based on the average trading volume of the stock.
Bristol-Myers Squibb Company (BMY) is unchanged at $50.51, with 2,537,442 shares traded. BMY's current last sale is 84.18% of the target price of $60.
Invesco QQQ Trust, Series 1 (QQQ) is +0.53 at $399.20, with 2,526,748 shares traded., following a 52-week high recorded in today's regular session.
Bank of America Corporation (BAC) is +0.02 at $30.76, with 2,472,337 shares traded. BAC's current last sale is 91.82% of the target price of $33.5.
Compass, Inc. (COMP) is +0.03 at $2.72, with 2,439,574 shares traded. COMP's current last sale is 95.44% of the target price of $2.85.
Comcast Corporation (CMCSA) is unchanged at $42.67, with 2,201,272 shares traded. As reported by Zacks, the current mean recommendation for CMCSA is in the "buy range".
Ford Motor Company (F) is +0.01 at $11.17, with 1,891,448 shares traded. F's current last sale is 79.79% of the target price of $14.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.03 at $194.74, with 4,650,705 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported in the last short interest update the days to cover for HST is 8.579568; this calculation is based on the average trading volume of the stock.
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Apple Inc. (AAPL) is +0.03 at $194.74, with 4,650,705 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 94,543,373 shares traded.
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Apple Inc. (AAPL) is +0.03 at $194.74, with 4,650,705 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 94,543,373 shares traded.
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Apple Inc. (AAPL) is +0.03 at $194.74, with 4,650,705 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The following are the most active stocks for the after hours session:
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12153.0
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2023-12-11 00:00:00 UTC
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Technology Sector Update for 12/12/2023: AAPL, ORCL, GOOG, NVEE
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AAPL
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https://www.nasdaq.com/articles/technology-sector-update-for-12-12-2023%3A-aapl-orcl-goog-nvee
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nan
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nan
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Tech stocks were mixed in late Tuesday afternoon trading, with the Technology Select Sector SPDR Fund (XLK) rising 0.6% and the SPDR S&P Semiconductor ETF (XSD) down 0.3%.
The Philadelphia Semiconductor index added 0.7%.
In corporate news, Apple (AAPL) is offering to allow competitors access to its tap-and-go mobile payment systems, which are used in mobile wallets, Reuters reported Tuesday. The move may resolve EU antitrust charges and avert a possible large fine, the report said. Apple shares rose 0.6%.
Oracle (ORCL) shares tumbled 12%. Analysts cut their price targets for the company after its fiscal Q2 results late Monday showed revenue missed estimates.
Alphabet's (GOOG) Google lost an antitrust trial to Epic Games after a US court ruled Monday that the search giant was running an illegal monopoly with its app store and payment system. Alphabet shares fell 0.8%.
NV5 Global (NVEE) shares rose 1% after the company won a one-year $9 million contract from a Northern California utility to provide vegetation management services.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In corporate news, Apple (AAPL) is offering to allow competitors access to its tap-and-go mobile payment systems, which are used in mobile wallets, Reuters reported Tuesday. Analysts cut their price targets for the company after its fiscal Q2 results late Monday showed revenue missed estimates. Alphabet's (GOOG) Google lost an antitrust trial to Epic Games after a US court ruled Monday that the search giant was running an illegal monopoly with its app store and payment system.
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In corporate news, Apple (AAPL) is offering to allow competitors access to its tap-and-go mobile payment systems, which are used in mobile wallets, Reuters reported Tuesday. Tech stocks were mixed in late Tuesday afternoon trading, with the Technology Select Sector SPDR Fund (XLK) rising 0.6% and the SPDR S&P Semiconductor ETF (XSD) down 0.3%. Apple shares rose 0.6%.
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In corporate news, Apple (AAPL) is offering to allow competitors access to its tap-and-go mobile payment systems, which are used in mobile wallets, Reuters reported Tuesday. Tech stocks were mixed in late Tuesday afternoon trading, with the Technology Select Sector SPDR Fund (XLK) rising 0.6% and the SPDR S&P Semiconductor ETF (XSD) down 0.3%. Alphabet's (GOOG) Google lost an antitrust trial to Epic Games after a US court ruled Monday that the search giant was running an illegal monopoly with its app store and payment system.
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In corporate news, Apple (AAPL) is offering to allow competitors access to its tap-and-go mobile payment systems, which are used in mobile wallets, Reuters reported Tuesday. Tech stocks were mixed in late Tuesday afternoon trading, with the Technology Select Sector SPDR Fund (XLK) rising 0.6% and the SPDR S&P Semiconductor ETF (XSD) down 0.3%. Apple shares rose 0.6%.
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12154.0
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2023-12-11 00:00:00 UTC
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Apple now requires a judge's consent to hand over push notification data
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AAPL
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https://www.nasdaq.com/articles/apple-now-requires-a-judges-consent-to-hand-over-push-notification-data
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nan
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nan
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By Raphael Satter
WASHINGTON, Dec 12 (Reuters) - Apple AAPL.O has said it now requires a judge's order to hand over information about its customers' push notification to law enforcement, putting the iPhone maker's policy in line with rival Google and raising the hurdle officials must clear to get app data about users.
The new policy was not formally announced but appeared sometime over the past few days on Apple's publicly available law enforcement guidelines. It follows the revelation from Oregon Senator Ron Wyden that officials were requesting such data from Apple as well as from Google, the unit of Alphabet GOOGL.O that makes the operating system for Android phones.
Apps of all kinds rely on push notifications to alert smartphone users to incoming messages, breaking news, and other updates. These are the audible "dings" or visual indicators users get when they receive an email or their sports team wins a game. What users often do not realize is that almost all such notifications travel over Google and Apple's servers.
In a letter first disclosed by Reuters last week, Wyden said the practice gave the two companies unique insight into traffic flowing from those apps to users, putting them "in a unique position to facilitate government surveillance of how users are using particular apps."
Apple and Google both acknowledged receiving such requests. Apple added a passage to its guidelines saying such data was available "with a subpoena or greater legal process." The passage has now been updated to refer to more stringent warrant requirements.
Apple did not offer an official statement. Google did not immediately respond to a request seeking comment.
Wyden said in a statement that Apple was "doing the right thing by matching Google and requiring a court order to hand over push notification related data."
(Reporting by Raphael Satter; Editing by David Gregorio)
((Raphael.Satter@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Raphael Satter WASHINGTON, Dec 12 (Reuters) - Apple AAPL.O has said it now requires a judge's order to hand over information about its customers' push notification to law enforcement, putting the iPhone maker's policy in line with rival Google and raising the hurdle officials must clear to get app data about users. It follows the revelation from Oregon Senator Ron Wyden that officials were requesting such data from Apple as well as from Google, the unit of Alphabet GOOGL.O that makes the operating system for Android phones. Wyden said in a statement that Apple was "doing the right thing by matching Google and requiring a court order to hand over push notification related data."
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By Raphael Satter WASHINGTON, Dec 12 (Reuters) - Apple AAPL.O has said it now requires a judge's order to hand over information about its customers' push notification to law enforcement, putting the iPhone maker's policy in line with rival Google and raising the hurdle officials must clear to get app data about users. It follows the revelation from Oregon Senator Ron Wyden that officials were requesting such data from Apple as well as from Google, the unit of Alphabet GOOGL.O that makes the operating system for Android phones. Wyden said in a statement that Apple was "doing the right thing by matching Google and requiring a court order to hand over push notification related data."
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By Raphael Satter WASHINGTON, Dec 12 (Reuters) - Apple AAPL.O has said it now requires a judge's order to hand over information about its customers' push notification to law enforcement, putting the iPhone maker's policy in line with rival Google and raising the hurdle officials must clear to get app data about users. It follows the revelation from Oregon Senator Ron Wyden that officials were requesting such data from Apple as well as from Google, the unit of Alphabet GOOGL.O that makes the operating system for Android phones. Wyden said in a statement that Apple was "doing the right thing by matching Google and requiring a court order to hand over push notification related data."
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By Raphael Satter WASHINGTON, Dec 12 (Reuters) - Apple AAPL.O has said it now requires a judge's order to hand over information about its customers' push notification to law enforcement, putting the iPhone maker's policy in line with rival Google and raising the hurdle officials must clear to get app data about users. Apple and Google both acknowledged receiving such requests. Wyden said in a statement that Apple was "doing the right thing by matching Google and requiring a court order to hand over push notification related data."
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12155.0
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2023-12-11 00:00:00 UTC
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2 Hypergrowth Tech Stocks to Buy in 2023 and Beyond
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AAPL
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https://www.nasdaq.com/articles/2-hypergrowth-tech-stocks-to-buy-in-2023-and-beyond-7
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nan
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nan
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The tech market is booming, with the Nasdaq-100 Technology sector up about 58% year to date. Advances in high-growth markets like artificial intelligence (AI) and cloud computing have made Wall Street particularly bullish, and excitement is unlikely to dissipate in 2024.
With the new year right around the corner, now is an excellent time to consider investing in companies likely to flourish over the next 12 months. Tech stocks are an attractive option, as they're known for delivering significant gains over the long term. And there's no telling how high they could rise alongside developments in AI and other markets.
So here are two hypergrowth tech stocks to buy in 2023 and beyond.
1. Alphabet
As the world's third-most-valuable tech company with a market cap of $1.7 trillion, it's hard to go wrong with Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). The company is home to some of the most recognizable brands, with Google, YouTube, and Android attracting billions of users daily. Alphabet's potent products have made it nearly impossible for most consumers to go a single day without using one of its services.
The tech giant's vast user base has seen it become an advertising powerhouse, using the popularity of its platforms to gain a 25% market share in the $680 billion digital ad market. Macroeconomic headwinds burdened the industry in 2022 as spikes in inflation caused businesses to cut ad spending. However, solid growth in Alphabet's third quarter of 2023 has likely signaled an end to market declines.
The quarter saw Alphabet post revenue gains of 11% year over year, beating analysts' expectations by $980 million. The growth was mainly thanks to boosted advertising income, with Google Search and YouTube ads reporting revenue rises of 11% and 12%, respectively.
In addition to advertising, Alphabet has a lucrative position in the cloud market with Google Cloud. The company revealed in August that 70% of AI start-ups worth more than $1 billion are Google Cloud customers. Meanwhile, the company is gearing up to launch Gemini in 2024, a large language model likely to allow Alphabet to expand its AI cloud offerings.
Data by YCharts
Despite Alphabet's success and brand recognition, it's one of the cheapest tech stocks right now. The charts above compare the price-to-earnings ratios and price-to-free cash flows of some of the biggest tech companies. These valuations are helpful when determining if a stock is trading at the right price, with the figures indicating Alphabet is a bargain compared to its peers. The company is an excellent investment option in 2023 and ahead of the new year.
2. Apple
Apple (NASDAQ: AAPL) has been a favorite on Wall Street for years, with shares that have soared more than 360% over the last five years and significantly outperformed the S&P 500's growth of 75%.
A P/E and price-to-free cash flow of 31 don't scream bargain, as the chart shows in the previous section, but that's in comparison to Alphabet, which is one of the cheapest ways to invest in tech. Meanwhile, the company has the cash and brand loyalty to flourish over the long term.
Data by YCharts
Apple hasn't had the easiest year, with an economic downturn causing repeated declines in its product sales and revenue dipping 3% year over year in its fiscal 2023. Yet it still ended the year with more than $162 billion in cash, cash equivalents, and marketable securities. And as illustrated by the table above, Apple achieved more free cash flow than many of the most prominent tech companies.
The company may have stumbled over the last 12 months, but it has the funds to overcome market challenges and heavily invest in its business.
Moreover, it wasn't all bad news for Apple this year. Its services division remained the fastest-growing part of its business, with the segment posting revenue growth of 9% year over year. Services includes income from the App Store and subscriptions like Apple TV+, Music, and iCloud. The digital business is a particularly lucrative area for Apple, proving less vulnerable to economic fluctuations and delivering profit margins of around 71%. For reference, products' profit margins come in at 36%.
Apple's business is gradually prioritizing digital offerings, making its stock an attractive long-term option. Alongside substantial cash reserves and recent expansions into AI and virtual reality, Apple is a hypergrowth stock too good to pass up.
Should you invest $1,000 in Alphabet right now?
Before you buy stock in Alphabet, consider this:
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Nvidia. 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.
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Apple Apple (NASDAQ: AAPL) has been a favorite on Wall Street for years, with shares that have soared more than 360% over the last five years and significantly outperformed the S&P 500's growth of 75%. Advances in high-growth markets like artificial intelligence (AI) and cloud computing have made Wall Street particularly bullish, and excitement is unlikely to dissipate in 2024. A P/E and price-to-free cash flow of 31 don't scream bargain, as the chart shows in the previous section, but that's in comparison to Alphabet, which is one of the cheapest ways to invest in tech.
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Apple Apple (NASDAQ: AAPL) has been a favorite on Wall Street for years, with shares that have soared more than 360% over the last five years and significantly outperformed the S&P 500's growth of 75%. The quarter saw Alphabet post revenue gains of 11% year over year, beating analysts' expectations by $980 million. Data by YCharts Apple hasn't had the easiest year, with an economic downturn causing repeated declines in its product sales and revenue dipping 3% year over year in its fiscal 2023.
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Apple Apple (NASDAQ: AAPL) has been a favorite on Wall Street for years, with shares that have soared more than 360% over the last five years and significantly outperformed the S&P 500's growth of 75%. Alphabet As the world's third-most-valuable tech company with a market cap of $1.7 trillion, it's hard to go wrong with Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). Data by YCharts Apple hasn't had the easiest year, with an economic downturn causing repeated declines in its product sales and revenue dipping 3% year over year in its fiscal 2023.
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Apple Apple (NASDAQ: AAPL) has been a favorite on Wall Street for years, with shares that have soared more than 360% over the last five years and significantly outperformed the S&P 500's growth of 75%. In addition to advertising, Alphabet has a lucrative position in the cloud market with Google Cloud. Before you buy stock in Alphabet, 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 Alphabet wasn't one of them.
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12156.0
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2023-12-11 00:00:00 UTC
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Alphabet (GOOGL) Adds Loyalty Cards to Wallet App for Wear OS
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AAPL
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https://www.nasdaq.com/articles/alphabet-googl-adds-loyalty-cards-to-wallet-app-for-wear-os
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Alphabet’s GOOGL Google announced an update to its Wallet app for Wear OS, enabling users to access their loyalty cards.
With the addition of the latest update, Google Wallet on Wear OS now supports all loyalty cards stored on phones or Google Accounts, appearing after payment methods.
Additionally, users can tap on a QR or barcode to view details, scroll down for more information and use shortcuts like “Open on phone” or “Delete pass” on their smartwatches.
Alphabet is expected to gain solid traction across smartwatch users on the back of its latest move. This, in turn, will position the company well to create a strong foothold in the global smartwatch market.
Per a Vantage Market Research report, the global smartwatch market is expected to be valued at $130.06 billion by 2030, exhibiting a CAGR of 18.6% between 2023 and 2030.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Expanding Google Wallet Features
Google is set to introduce a new Wallet notifications feature in Version 23.46.x of Google Wallet on Android, enabling users to send payment notifications directly from the app.
Further, Google announced Wallet updates to support open-loop payment systems, providing a dedicated page for recent activity and ride history, showing saved fare caps, connected payment methods, and network-specific offerings.
Additionally, Google updated its Wallet app with a link-based pass-sharing feature for airline boarding and events. Users can open a pass below the carousel of credit and debit cards and a share button appears. However, undoing the sharing is not possible.
We believe that all the above-mentioned endeavors will likely aid Alphabet in strengthening its footprint in the global digital wallet market.
Per an MMR report, the digital wallet market is expected to reach $3.61 billion by 2029, witnessing a CAGR of 14.8% between 2023 and 2029.
We believe the company’s solid prospects in the promising digital wallet market are expected to instill investor optimism in the stock.
Alphabet has gained 50.2% on a year-to-date basis compared with the industry’s rise of 52.2%.
Moreover, the aforementioned endeavors will aid Alphabet to compete well with some notable industry players like Microsoft MSFT and Apple AAPL, which have positioned themselves well in the digital wallet space.
Microsoft is enjoying the growing momentum of its Edge Wallet with new feature updates.
Microsoft’s recent Wallet app update includes the integration of a cryptocurrency wallet, providing real-time updates on cryptocurrency value fluctuations and logging transactions. The "explore" tab updates users on cryptocurrency news, while the "assets" tab displays NFTs.
Meanwhile, Apple is riding on the success of its Wallet app on iPhone or Apple Watch, which securely stores various cards, IDs and other items, allowing users to carry more while minimizing their device's size.
To Conclude
We believe that strengthening Wallet features will, in turn, aid Alphabet to solidify its Google Services segment’s performance, which constitutes the majority of total revenues.
In third-quarter 2023, Google Services’ revenues increased 10.8% year over year to $67.99 billion, accounting for 88.6% of total revenues.
Our model projects fourth-quarter 2023 Google Services revenues at $72.79 billion, indicating growth of 7.3% from 2022.
Strength in the underlined segment will likely aid its overall financial performance in the upcoming period.
Our model estimate for fourth-quarter 2023 total revenues is pegged at $81.95 billion, indicating year-over-year growth of 7.8%.
Zacks Rank & A Key Pick
Currently, Alphabet carries a Zacks Rank #3 (Hold).
A better-ranked stock in the broader technology sector is Badger Meter BMI, sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Badger Meter have gained 39.2% in the year-to-date period. BMI’s long-term earnings growth rate is currently projected at 20.39%.
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Alphabet Inc. (GOOGL) : Free Stock Analysis Report
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.
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Moreover, the aforementioned endeavors will aid Alphabet to compete well with some notable industry players like Microsoft MSFT and Apple AAPL, which have positioned themselves well in the digital wallet space. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Additionally, users can tap on a QR or barcode to view details, scroll down for more information and use shortcuts like “Open on phone” or “Delete pass” on their smartwatches.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, the aforementioned endeavors will aid Alphabet to compete well with some notable industry players like Microsoft MSFT and Apple AAPL, which have positioned themselves well in the digital wallet space. With the addition of the latest update, Google Wallet on Wear OS now supports all loyalty cards stored on phones or Google Accounts, appearing after payment methods.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, the aforementioned endeavors will aid Alphabet to compete well with some notable industry players like Microsoft MSFT and Apple AAPL, which have positioned themselves well in the digital wallet space. Alphabet’s GOOGL Google announced an update to its Wallet app for Wear OS, enabling users to access their loyalty cards.
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Moreover, the aforementioned endeavors will aid Alphabet to compete well with some notable industry players like Microsoft MSFT and Apple AAPL, which have positioned themselves well in the digital wallet space. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Badger Meter, Inc. (BMI) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Alphabet’s GOOGL Google announced an update to its Wallet app for Wear OS, enabling users to access their loyalty cards.
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12157.0
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2023-12-11 00:00:00 UTC
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This Warren Buffett Favorite Soared Nearly 50% This Year. Is It Too Late to Buy?
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AAPL
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https://www.nasdaq.com/articles/this-warren-buffett-favorite-soared-nearly-50-this-year.-is-it-too-late-to-buy
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Warren Buffett is known for picking the right stocks, and his choices have produced billions of dollars in returns and double-digit percentage gains over time. As chairman of Berkshire Hathaway, Buffett has delivered compound annual growth of more than 19% over 57 years. That's compared to 9.9% for the S&P 500. So, it's clear investors are right to pay close attention to the stocks he buys.
But Berkshire Hathaway actually doesn't own tons of stocks. There are only 45 names in the portfolio now -- and most of its value comes from just a few favorites. One of them is tech giant Apple (NASDAQ: AAPL), which accounts for almost half of the portfolio.
And right now, Buffett has reason to be happy about this investment since Apple has climbed by almost 50% this year. But for investors who haven't yet bought Apple and would like to follow in Buffett's footsteps, is it too late? After such a gain, should you still buy this top stock?
Apple as a long-term investment
A look into the past shows us that Apple has proven its ability to be a great long-term investment. The company has increased earnings over time and has grown key financial metrics. High levels of free cash flow show us the company can afford to keep paying its dividends -- making Apple a player you can count on for passive income as well as share price growth.
AAPL Return on Invested Capital data by YCharts.
And its gains in return on invested capital show the company has been benefiting from its investments, indicating that Apple has deployed its cash wisely.
All of this is thanks to a stellar collection of products -- from the iPhone to the Apple Watch -- that have helped the company build a rock-solid brand -- one that consumers prefer and won't abandon for a rival. This brand strength is Apple's moat, and it's the reason it has been able to grow product revenue over the years and why growth is continuing today.
In its fiscal Q4 2023 (which ended Sept. 30), Apple's total installed base of devices reached an all-time high across products and geographic areas. And iPhone sales set a fiscal Q4 record. The company also set fiscal Q4 records in several countries across the globe.
Apple demonstrated in the quarter that its gains in revenue aren't just due to its established customers, but also to growth in new customers. About half of Mac and iPad buyers in the quarter were new to those products.
Apple's services business
So, the mix of brand strength, returning customers, and new customers should keep Apple's earnings climbing -- but something else may actually be its biggest growth driver. I'm talking about Apple's services business, which depends on those who use Apple devices and subscribe for access to digital content, cloud storage, and more.
Apple this year reached a level of more than 1 billion paid subscriptions. And this could be the element that will kick off a whole new era of growth at Apple, an era you probably won't want to miss. Services revenue reached a record high in the most recent quarter, and gains aren't likely to stop there. Apple has a huge subscriber base right now, and as it launches new services or boosts old ones, it can grow its revenue just with today's subscriber base -- but it's likely its subscriber base will expand too.
Finally, what's great about subscription revenue is it's recurrent. You may not buy a new iPhone often, but once you own one, you'll likely sign up for services that ensure Apple a regular stream of revenue.
Is Apple cheap?
All of this sounds great, but is Apple, after this year's gain, still worth the investment? Here, it's time to look at valuation. Apple trades for about 29 times forward earnings estimates, a lower ratio than many other growth stocks, and the shares look reasonable considering the company's track record and prospects.
AAPL PE Ratio (Forward) data by YCharts.
Yes, Apple shares have advanced quite a bit this year, and they probably won't continue upward at this pace without interruption. But they have what it takes to climb higher over time as consumers flock to Apple products, and their subscriptions progressively drive even more growth for the company year after year.
So, it isn't too late for you to follow billionaire investor Warren Buffett and pick up shares of this top-performing stock. Apple shares have plenty of room to run, and like Buffett, if you buy it and hold on, you may reap the rewards.
Should you invest $1,000 in Apple right now?
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. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 11, 2023
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 and Tesla. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, 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.
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One of them is tech giant Apple (NASDAQ: AAPL), which accounts for almost half of the portfolio. AAPL Return on Invested Capital data by YCharts. AAPL PE Ratio (Forward) data by YCharts.
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One of them is tech giant Apple (NASDAQ: AAPL), which accounts for almost half of the portfolio. AAPL Return on Invested Capital data by YCharts. AAPL PE Ratio (Forward) data by YCharts.
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One of them is tech giant Apple (NASDAQ: AAPL), which accounts for almost half of the portfolio. AAPL Return on Invested Capital data by YCharts. AAPL PE Ratio (Forward) data by YCharts.
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One of them is tech giant Apple (NASDAQ: AAPL), which accounts for almost half of the portfolio. AAPL Return on Invested Capital data by YCharts. AAPL PE Ratio (Forward) data by YCharts.
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12158.0
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2023-12-11 00:00:00 UTC
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Australia's central bank aims at broad reform for payments systems
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AAPL
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https://www.nasdaq.com/articles/australias-central-bank-aims-at-broad-reform-for-payments-systems
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nan
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nan
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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)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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.
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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.
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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.
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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.
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12159.0
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2023-12-11 00:00:00 UTC
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Alphabet (GOOGL) Adds Generative AI Features to NotebookLM
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AAPL
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https://www.nasdaq.com/articles/alphabet-googl-adds-generative-ai-features-to-notebooklm
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nan
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Alphabet’s GOOGL Google is bolstering its AI-powered note-taking app, NotebookLM, by adding an array of new features before making it available to all adult users in the United States.
Notably, NotebookLM uses Google's Gemini Pro language model to aid in document understanding and reasoning. It generates summaries and suggests follow-up questions, focusing on the content of the documents.
Further, it introduced new tools for organizing curated notes into structured writing projects, allowing users to create scripts, email newsletters or marketing plans from their notes.
Additionally, NotebookLM now offers actions based on current tasks, such as summarizing selected passages or refining prose in writing and suggesting related ideas from sources based on what's been written so far.
Also, Google has made minor improvements to NotebookLM, including creating separate notes for notes and allowing users to access original quotes in chat responses or saved notes.
These useful attributes are expected to bolster the adoption rate of NotebookLM in the days ahead.
We note that the latest move has added strength to the company’s Google Services segment, which constitutes the majority of total revenues.
In third-quarter 2023, Google Services’ revenues increased 10.8% year over year to $67.99 billion, accounting for 88.6% of total revenues.
Our model projects fourth-quarter 2023 Google Services revenues at $72.79 billion, indicating growth of 7.3% from 2022.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Stiff Competition
We believe that the new features added to Google’s note-taking app is a strategic move to compete with industry peers like Microsoft MSFT and Apple AAPL, which are making concerted efforts to bolster their note-taking apps with generative AI.
Microsoft’s integration of its newly introduced in-house AI system, Copilot, into its note-taking app - Microsoft OneNote, remains noteworthy.
This new update enhances the appearance of digital notebooks, enables content organization, adjusts formatting, generates summaries and highlights key points using your own words, offering an edge to the company’s note-taking app.
Similarly, Apple is set to launch the Journal app, which uses AI to gather evidence from daily activities and mindset.
Further, Apple's Journal app allows users to write entries and insert content, with local storage on iPhones and iCloud backups. It not only provides data suggestions but also prompts users to write about their love for doing something and why it brings joy.
Growing Focus on Generative AI
The latest move is in sync with Alpahbet’s deepening focus on integrating its generative AI capabilities into its products and services.
Notably, Google is set to add an AI feature called "Help me create a list" to its Keep Notes app for Android, assisting users in generating lists for various tasks, including planning, packing, grocery shopping and task completion.
Further, Google recently introduced its new, advanced, powerful, large language model, namely Gemini. It is available in three different sizes: Gemini Ultra, which is its largest and most capable one, Gemini Pro, which is designed to offer scalability across various applications, and Gemini Nano, which is designed for specific tasks and mobile devices.
We believe that all the above-mentioned endeavors will likely strengthen Alphabet’s presence in the booming generative AI space.
Per an Allied Market Research report, the global generative AI market is expected to reach $191.8 billion by 2032, witnessing a CAGR of 34.1% between 2023 and 2032.
Strength in the promising generative AI market will likely aid this Zacks Rank #3 (Hold) company in instilling investors’ optimism in the stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alphabet has gained 54.2% on a year-to-date basis compared with the industry’s growth of 53.8%.
Moreover, growing generative AI capabilities position Alphabet well to compete with some industry leaders in the generative AI space, like Adobe ADBE, which is gaining solid momentum on the back of its family of creative generative AI models, Firefly.
Notably, Adobe introduced new Firefly Models, including Image 2 and Vector, to improve imaging creative control and quality, enabling instant template design in Adobe Express.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Stiff Competition We believe that the new features added to Google’s note-taking app is a strategic move to compete with industry peers like Microsoft MSFT and Apple AAPL, which are making concerted efforts to bolster their note-taking apps with generative AI. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. This new update enhances the appearance of digital notebooks, enables content organization, adjusts formatting, generates summaries and highlights key points using your own words, offering an edge to the company’s note-taking app.
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Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Stiff Competition We believe that the new features added to Google’s note-taking app is a strategic move to compete with industry peers like Microsoft MSFT and Apple AAPL, which are making concerted efforts to bolster their note-taking apps with generative AI. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, growing generative AI capabilities position Alphabet well to compete with some industry leaders in the generative AI space, like Adobe ADBE, which is gaining solid momentum on the back of its family of creative generative AI models, Firefly.
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Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Stiff Competition We believe that the new features added to Google’s note-taking app is a strategic move to compete with industry peers like Microsoft MSFT and Apple AAPL, which are making concerted efforts to bolster their note-taking apps with generative AI. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, growing generative AI capabilities position Alphabet well to compete with some industry leaders in the generative AI space, like Adobe ADBE, which is gaining solid momentum on the back of its family of creative generative AI models, Firefly.
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Alphabet Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Stiff Competition We believe that the new features added to Google’s note-taking app is a strategic move to compete with industry peers like Microsoft MSFT and Apple AAPL, which are making concerted efforts to bolster their note-taking apps with generative AI. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adobe Inc. (ADBE) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, growing generative AI capabilities position Alphabet well to compete with some industry leaders in the generative AI space, like Adobe ADBE, which is gaining solid momentum on the back of its family of creative generative AI models, Firefly.
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12160.0
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2023-12-11 00:00:00 UTC
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Wall Street Says the S&P 500 Is Headed Higher in 2024: 2 No-Brainer Growth Stocks to Buy Now With $200 and Hold Long Term
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AAPL
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https://www.nasdaq.com/articles/wall-street-says-the-sp-500-is-headed-higher-in-2024%3A-2-no-brainer-growth-stocks-to-buy
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Wall Street analysts have thousands of active price targets on companies across the S&P 500 (SNPINDEX: ^GSPC), but those estimates can be aggregated into a single number. That bottom-up methodology gives the index a 12-month target level of 5,059, implying 10% upside from its current level.
In short, Wall Street says the S&P 500 is headed higher in 2024. But even if those gains fail to materialize, patient investors who buy good stocks at reasonable prices have historically been well rewarded. Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) and Paycom Software (NYSE: PAYC) satisfy those conditions.
Both companies have clearly defined growth opportunities that make their current valuations look reasonable. And at less than $200 per share, the stocks are also relatively affordable. That makes Alphabet and Paycom no-brainer buys.
1. Alphabet
Alphabet provides ad tech solutions and cloud computing services. The company had a solid third quarter for the most part, beating estimates on the top and bottom lines. Sales increased 11% to $76.7 billion and GAAP net income climbed 42% to $19.7 billion. The only problem was slowing growth in Google Cloud, but that was likely a product of the challenging macroeconomic climate.
The investment thesis for Alphabet remains unchanged. Its strong presence in digital advertising and cloud computing -- two markets projected to grow at 14% annually through 2030 -- creates a path to low-double-digit revenue growth for the foreseeable future, with possible upside as the company leans into artificial intelligence (AI).
Alphabet accounted for nearly 30% of global digital ad revenue last year. That success stems from its somewhat unique ability to engage consumers and source data through its many popular platforms. The best known are Google Search, YouTube, and Android, but the company actually has six products that exceed 2 billion users.
Google Cloud accounted for 11% of cloud infrastructure and platform services spending in the third quarter. Alphabet's cloud subsidiary is still a distant third behind Amazon Web Services (32%) and Microsoft Azure (23%), but its market share has increased 4 percentage points in the last three years. That success is due, in part, to prowess in AI.
Alphabet is a major player in the cloud AI developer services market, and Forrester Research has recognized its leadership in AI infrastructure services. That puts the company in a good spot. AI spending is forecasted to increase at 37% annually through 2030, and Alphabet should be a major beneficiary. Indeed, Needham analyst Laura Martin believes Alphabet will surpass Apple in market capitalization as the AI boom unfolds.
Here’s the bottom line: Alphabet has a good shot at low-double-digit sales growth for years to come given its strong presence in digital advertising and cloud computing. That makes its current valuation of 6 times sales seem reasonable. Investors should feel comfortable buying a few shares of this growth stock today.
2. Paycom Software
Paycom provides cloud-based payroll and human capital management (HCM) software. The company published mixed financial results for the third quarter, missing expectations on the top line but beating on the bottom line. Sales climbed 22% to $406 million and generally accepted accounting principles (GAAP) net income climbed 44% to $75 million.
If the bad news had stopped there, shares may have slipped a few points. Unfortunately, guidance missed expectations by a mile and Paycom stock suffered its worst single-day decline in history. But the reason for the miss was somewhat unusual. In 2021, Paycom launched a first-of-its-kind payroll automation product called Beti (Better Employee Transaction Interface). That landed Paycom on Fast Company's list of the world’s most innovative companies in 2022.
Beti is working so well that clients are spending less on other services. CFO Craig Boelte explained: "Beti adoption and usage creates tremendous value to clients as they experience perfect payrolls and eliminate errors, corrections, and unscheduled payrolls, which would otherwise be billable items." So Beti is effectively cannibalizing sales, and management expects the problem to persist through next year.
Yet, Paycom’s ability to create value for clients should ultimately be a tailwind. Moreover, investors still have two reasons to be bullish, especially with shares trading at 6.6 times sales, a bargain compared to the three-year average of 18.4 times sales.
First, Paycom has grown nearly three times faster than the broader payroll and HCM software market over the last five years. That success can be ascribed to its platform strategy. Most organizations still rely on a patchwork of HCM point products, but Paycom integrates tools for hiring, training, payroll, scheduling, and human resources (HR) management on a single platform. That eliminates complex issues while it integrates and simplifies work for HR and accounting teams.
Second, Paycom launched Global HCM earlier this year, a product that makes its HCM software available in more than 180 countries. The company has also brought Beti to Canada and Mexico, and it plans to introduce its payroll software to more international markets in the future. The upshot of that expansion is that the company’s addressable market is getting bigger.
Here's the bottom line: Paycom is an innovative company with a track record for taking share in HCM and payroll software. But management says the international expansion has diluted its market share to less than 5%, meaning Paycom still has plenty of room to expand. To that end, Morningstar analyst Emma Williams expects sales to grow at 15% annually over the next five years. That makes its current valuation look cheap, creating a worthwhile buying opportunity for patient investors.
Should you invest $1,000 in Alphabet right now?
Before you buy stock in Alphabet, 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 Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 7, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Trevor Jennewine has positions in Amazon and Paycom Software. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Paycom Software. 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.
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Its strong presence in digital advertising and cloud computing -- two markets projected to grow at 14% annually through 2030 -- creates a path to low-double-digit revenue growth for the foreseeable future, with possible upside as the company leans into artificial intelligence (AI). Here’s the bottom line: Alphabet has a good shot at low-double-digit sales growth for years to come given its strong presence in digital advertising and cloud computing. Most organizations still rely on a patchwork of HCM point products, but Paycom integrates tools for hiring, training, payroll, scheduling, and human resources (HR) management on a single platform.
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Its strong presence in digital advertising and cloud computing -- two markets projected to grow at 14% annually through 2030 -- creates a path to low-double-digit revenue growth for the foreseeable future, with possible upside as the company leans into artificial intelligence (AI). Paycom Software Paycom provides cloud-based payroll and human capital management (HCM) software. Before you buy stock in Alphabet, 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 Alphabet wasn’t one of them.
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Paycom Software Paycom provides cloud-based payroll and human capital management (HCM) software. Here's the bottom line: Paycom is an innovative company with a track record for taking share in HCM and payroll software. Before you buy stock in Alphabet, 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 Alphabet wasn’t one of them.
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Paycom Software Paycom provides cloud-based payroll and human capital management (HCM) software. Beti is working so well that clients are spending less on other services. Before you buy stock in Alphabet, 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 Alphabet wasn’t one of them.
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12161.0
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2023-12-11 00:00:00 UTC
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1 Warren Buffett ETF I'm Stocking Up On Before the End of 2023
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AAPL
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https://www.nasdaq.com/articles/1-warren-buffett-etf-im-stocking-up-on-before-the-end-of-2023
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nan
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Exchange-traded funds (ETFs) can be fantastic investments for many people. Not only do they require next to no effort on your part, but they could also help you earn hundreds of thousands of dollars or more over time.
Not all ETFs are created equal, however, and the right choice for you will depend largely on your tolerance for risk and investing goals. That said, there's one ETF I've owned for years and will continue stocking up on throughout the rest of 2023 -- and it's also earned the Warren Buffett seal of approval.
The right ETF for your portfolio
For the most part, Warren Buffett invests in individual stocks. However, he does own one type of ETF: the S&P 500 ETF. Through his holding company Berkshire Hathaway, Buffett owns shares of both the Vanguard S&P 500 ETF (NYSEMKT: VOO) and the SPDR S&P 500 ETF Trust (NYSEMKT: SPY).
Buffett has long recommended S&P 500 ETFs and index funds, and back in 2008, he even famously bet $1 million that this type of investment could beat a group of actively managed hedge funds. He easily won that bet, with his investment earning returns of around 126% over 10 years, while the five hedge funds averaged returns of just 36% in that time.
There's a good reason why the S&P 500 ETF comes highly recommended by Buffett: it's one of the safest funds out there, yet it can still help you make a lot of money over time. Some of the primary advantages of this type of investment include:
Immediate diversification: Each S&P 500 ETF includes stocks from 500 companies across a wide range of industries. This provides plenty of diversification with just a single investment, which can lower your risk substantially. Even if a few stocks in the fund struggle, it won't sink your entire portfolio.
Long track record of success: Every investment has its ups and downs, but the S&P 500 itself has an impeccable long-term record. Analysts at Crestmont Research examined the S&P 500's rolling 20-year returns throughout the index's history, and they found that every single period ended in positive total returns. That means if you had invested in an S&P 500 fund at any point in history and held it for 20 years, you'd have made money -- no matter how volatile the market was.
Strong and healthy stocks: The S&P 500 includes stocks from 500 of the largest and strongest companies in the U.S., from tech giants like Apple and Amazon to century-old brands like Procter & Gamble and Coca-Cola. No stocks are immune to short-term downturns, but the companies within the S&P 500 are among the best of the best and are far more likely to recover.
Another major perk of this type of investment is that it requires little to no effort. All of the stocks are already chosen for you, so you don't need to spend time researching companies or keeping up with industry trends. Simply invest whatever you can afford, then sit back and wait for your money to grow.
Building wealth with the S&P 500
Despite being a relatively safe and simple investment, the S&P 500 ETF packs a punch. Historically, the market itself has earned an average rate of return of around 10% per year, which means that the annual highs and lows have averaged out to roughly 10% per year over several decades.
If you're investing, say, $200 per month in an S&P 500 ETF earning a 10% average annual return, here's approximately how much you could accumulate over time depending on how many years you invest:
NUMBER OF YEARS TOTAL PORTFOLIO VALUE
20 $137,000
25 $236,000
30 $395,000
35 $650,000
40 $1,062,000
Data source: Author's calculations via investor.gov.
The more time you have to let your money grow (or the more you can afford to invest each month), the more you can potentially earn over time. Again, the S&P 500 ETF is a long-term investment. While you may see significant ups and downs in the near term, it's incredibly consistent over decades.
While the S&P 500 ETF has plenty of advantages, there is one significant downside to consider: it can't beat the market. This type of investment is designed to follow the market, so it's impossible for it to earn above-average returns. If you're looking to maximize your earnings in the stock market, investing in individual stocks may be a better option.
The S&P 500 ETF is a fantastic investment for many people. While it does only earn average returns, that could be a worthwhile trade-off for a safer and more reliable fund that requires little effort. By weighing the pros and cons of this ETF, you can decide whether it's the right fit for your portfolio.
Should you invest $1,000 in Vanguard S&P 500 ETF right now?
Before you buy stock in Vanguard S&P 500 ETF, 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 Vanguard S&P 500 ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 7, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Katie Brockman has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Vanguard S&P 500 ETF. 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.
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That said, there's one ETF I've owned for years and will continue stocking up on throughout the rest of 2023 -- and it's also earned the Warren Buffett seal of approval. There's a good reason why the S&P 500 ETF comes highly recommended by Buffett: it's one of the safest funds out there, yet it can still help you make a lot of money over time. That means if you had invested in an S&P 500 fund at any point in history and held it for 20 years, you'd have made money -- no matter how volatile the market was.
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Through his holding company Berkshire Hathaway, Buffett owns shares of both the Vanguard S&P 500 ETF (NYSEMKT: VOO) and the SPDR S&P 500 ETF Trust (NYSEMKT: SPY). Before you buy stock in Vanguard S&P 500 ETF, 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 Vanguard S&P 500 ETF wasn't one of them. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Vanguard S&P 500 ETF.
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Some of the primary advantages of this type of investment include: Immediate diversification: Each S&P 500 ETF includes stocks from 500 companies across a wide range of industries. If you're investing, say, $200 per month in an S&P 500 ETF earning a 10% average annual return, here's approximately how much you could accumulate over time depending on how many years you invest: Before you buy stock in Vanguard S&P 500 ETF, 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 Vanguard S&P 500 ETF wasn't one of them.
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He easily won that bet, with his investment earning returns of around 126% over 10 years, while the five hedge funds averaged returns of just 36% in that time. If you're investing, say, $200 per month in an S&P 500 ETF earning a 10% average annual return, here's approximately how much you could accumulate over time depending on how many years you invest: Before you buy stock in Vanguard S&P 500 ETF, 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 Vanguard S&P 500 ETF wasn't one of them.
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12162.0
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2023-12-11 00:00:00 UTC
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Should SPDR Portfolio S&P 500 ETF (SPLG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-spdr-portfolio-sp-500-etf-splg-be-on-your-investing-radar-11
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Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the SPDR Portfolio S&P 500 ETF (SPLG), a passively managed exchange traded fund launched on 11/08/2005.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $23.60 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.02%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.46%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 29% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.21% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN).
The top 10 holdings account for about 31.29% of total assets under management.
Performance and Risk
SPLG seeks to match the performance of the Russell 1000 Index before fees and expenses. The S&P 500 Index is designed to measure the performance of the large-capitalization segment of the U.S. equity market.
The ETF has added roughly 21.60% so far this year and it's up approximately 17.84% in the last one year (as of 12/11/2023). In the past 52-week period, it has traded between $44.30 and $54.11.
The ETF has a beta of 1 and standard deviation of 17.42% for the trailing three-year period. With about 505 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Portfolio S&P 500 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, SPLG is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.
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 $381.68 billion in assets, SPDR S&P 500 ETF has $444.91 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
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.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.21% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $23.60 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
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Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.21% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). You should consider the SPDR Portfolio S&P 500 ETF (SPLG), a passively managed exchange traded fund launched on 11/08/2005.
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Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.21% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Alternatives SPDR Portfolio S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 7.21% of total assets, followed by Microsoft Corp (MSFT) and Amazon.com Inc (AMZN). Click to get this free report SPDR Portfolio S&P 500 ETF (SPLG): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Annual operating expenses for this ETF are 0.02%, making it one of the least expensive products in the space.
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12163.0
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2023-12-11 00:00:00 UTC
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Should iShares S&P 100 ETF (OEF) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-ishares-sp-100-etf-oef-be-on-your-investing-radar-9
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nan
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Launched on 10/23/2000, the iShares S&P 100 ETF (OEF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Blackrock. It has amassed assets over $12.13 billion, making it one of the largest ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.20%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.25%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 34.70% of the portfolio. Telecom and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 10.61% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN).
The top 10 holdings account for about 46.11% of total assets under management.
Performance and Risk
OEF seeks to match the performance of the S&P 100 Index before fees and expenses. The S&P 100 Index measures the performance of the large-capitalization sector of the U.S. equity market. It is a subset of the S&P 500 and consists of blue chip stocks from diverse industries in the S&P 500 with exchange listed options & the Index represented approximately 45% of the market capitalization of listed U.S. equities.
The ETF has gained about 28.61% so far this year and is up roughly 24.40% in the last one year (as of 12/11/2023). In the past 52-week period, it has traded between $167.54 and $217.38.
The ETF has a beta of 0.99 and standard deviation of 18.08% for the trailing three-year period, making it a medium risk choice in the space. With about 105 holdings, it effectively diversifies company-specific risk.
Alternatives
IShares S&P 100 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, OEF 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 $381.68 billion in assets, SPDR S&P 500 ETF has $444.91 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they 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.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iShares S&P 100 ETF (OEF): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
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.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 10.61% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares S&P 100 ETF (OEF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Launched on 10/23/2000, the iShares S&P 100 ETF (OEF) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
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Click to get this free report iShares S&P 100 ETF (OEF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 10.61% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Why Large Cap Blend Large cap companies typically have a market capitalization above $10 billion.
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Click to get this free report iShares S&P 100 ETF (OEF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 10.61% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Alternatives IShares S&P 100 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 10.61% of total assets, followed by Microsoft Corp (MSFT) and Amazon Com Inc (AMZN). Click to get this free report iShares S&P 100 ETF (OEF): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. 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.
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12164.0
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2023-12-11 00:00:00 UTC
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Australia's central bank flags broad payments system reforms
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AAPL
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https://www.nasdaq.com/articles/australias-central-bank-flags-broad-payments-system-reforms
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nan
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nan
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Adds comments from Bullock on NPP in paragraph 11 and 12
SYDNEY, Dec 12 (Reuters) - Australia's central bank is considering a slate of new regulations for the payments system to open 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 Tuesday, 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.
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 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.
Bullock voiced disappointment that some NPP participants were still not ready to provide cross-border payments services this month, urging the industry to deliver on this commitment as soon as possible.
"In the end, if it requires a mandate or a regulation, then we will do it but we prefer really just to work with the industry to get it done," said Bullock at the Q&A.
(Reporting by Wayne Cole; Editing by Richard Chang and Sam Holmes)
((Wayne.Cole@thomsonreuters.com; 612 9171 7144; Reuters Messaging: wayne.cole.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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. Adds comments from Bullock on NPP in paragraph 11 and 12 SYDNEY, Dec 12 (Reuters) - Australia's central bank is considering a slate of new regulations for the payments system to open 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 Tuesday, 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.
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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. Adds comments from Bullock on NPP in paragraph 11 and 12 SYDNEY, Dec 12 (Reuters) - Australia's central bank is considering a slate of new regulations for the payments system to open the use of mobile wallets, make costs more transparent and allow retailers to put surcharges on buy-now-pay-later services. Bullock voiced disappointment that some NPP participants were still not ready to provide cross-border payments services this month, urging the industry to deliver on this commitment as soon as possible.
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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. Adds comments from Bullock on NPP in paragraph 11 and 12 SYDNEY, Dec 12 (Reuters) - Australia's central bank is considering a slate of new regulations for the payments system to open 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 Tuesday, 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.
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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. Adds comments from Bullock on NPP in paragraph 11 and 12 SYDNEY, Dec 12 (Reuters) - Australia's central bank is considering a slate of new regulations for the payments system to open the use of mobile wallets, make costs more transparent and allow retailers to put surcharges on buy-now-pay-later services. It will also support the transition from the Bulk Electronic Clearing System (BECS) to the New Payments Platform (NPP), while expanding the NPP's use for cross-border transactions.
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12165.0
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2023-12-11 00:00:00 UTC
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Don’t Wait! 3 Fearless Stocks to Buy Before Year-End
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AAPL
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https://www.nasdaq.com/articles/dont-wait-3-fearless-stocks-to-buy-before-year-end
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The last bear market ended a little over a year ago. Since then the S&P 500 has rallied 27% higher. However not all stocks participated. In fact, it was the so-called Magnificent 7 group of stocks that carried the broad market index throughout most of the year. Despire the unsureness we have seen this year, there are some fearless stocks to buy making themselves known.
Nvidia (NASDAQ:NVDA) alone represents 3% of the popular benchmark’s total weighting. Its tripling in value had an outsized influence on the S&P 500’s performance. But Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), and Tesla (NASDAQ:TSLA) all played a big role in the bull market that followed.
Of course, that means the other 493 stocks barely impacted the results, or worse, worked against it. Many investors worry another bear market might be on the horizon. Although they occur on average every 3.5 years, one can happen anytime. Sharp investors understand that’s the time to buy. Of the 27 bear markets that have growled their way into existence since 1928, there have been 28 bull markets that followed.
You need to be fearless in the face of uncertainty. What follows are three tremendous stocks to buy now before year-end.
CrowdStrike Holdings (CRWD)
Source: VDB Photos / Shutterstock.com
Like death and taxes, it appears cybercrime will always be with us. The Identity Theft Resource Center says there were 2,116 data breaches in the first three quarters of 2023. That surpasses the all-time high hit in 2021 when there were 1,862 breaches. That’s where CrowdStrike Holdings (NASDAQ:CRWD) comes into play.
Through a combination of artificial intelligence (AI), machine learning, and old-fashioned human intervention, the cybersecurity leader’s Falcon platform sifts through trillions of events weekly. It quickly recognizes and responds to potential threats over time as it learns and grows. Customers are flocking to the platform, with client counts rising 45% from last year. Nearly two-thirds of them purchased at least five or more cloud module subscriptions.
Net new annual recurring revenue (ARR) hit $223.1 million, a new all-time record for CrowdStrike. Almost one-third of its revenue comes from international customers, up from 28% just three years ago. Subscription gross margin now stands at 78%, three percentage points higher than last year.
This is a stock you can buy in any market or almost anytime. Yet it is one you might want to boldly buy before the end of the year.
Digital Ocean (DOCN)
Source: monticello / Shutterstock.com
Cybersecurity is going to be a long-term growth trend, but so is helping businesses transfer their data to the cloud. Digital Ocean (NASDAQ:DOCN) is carving a niche out for itself by targeting small- and medium-sized business (SMB) to assist with the move.
SMBs don’t have the resources to pay for the cloud services of Amazon, Microsoft, or Google, but their needs are just as great as their larger brethren. For companies without large IT departments (or no IT department at all), Digital Ocean simplifies the move to the cloud. It makes the cloud accessible by having clients up and running within minutes of inquiring.
Revenue is expected to accelerate following its acquisition of AI cloud provider PaperSpace, and was up 16% in the third quarter. Net dollar retention rate, or the amount of new money existing customers spend with it each year, was 96%. That was slightly less than the 104% it had in the second quarter. Average revenue per customer, however, rose 6% year over year.
Digital Ocean is a small-cap stock itself making it the perfect vehicle for startups and other small businesses to attain their cloud goals. It’s also a perfect stock to buy now before the end of the year.
Digital Realty Trust (DLR)
Source: dotshock / Shutterstock
Yet another enduring trend we’re likely to see is the growth and strength of data centers. With all the data moving to the cloud, it needs to reside somewhere, namely in data centers. Digital Realty Trust (NYSE:DLR) is one of the largest real estate investment trusts (REIT). It owns 312 centers including 66 that are held as investments across 39.5 million square feet of space. Among its biggest customers are Oracle (NYSE:ORCL), IBM (NYSE:IBM), and Meta Platforms.
Data centers essentially serve as the backbone of the internet. They are the nerve center for everything that occurs in the cloud. They provide the warehousing for the servers and networking equipment in a secure, climate-controlled environment. As companies continue to transition their data to the cloud, they turn to Digital Realty Trust to house it.
Yet as a REIT, Digital Realty is required to return most of its profits to shareholders as distributions. The REIT’s dividend yield stands at 3.7% annually. Those profits could grow exponentially due to the advent of AI. Because of the vast computing power, storage space, and low-latency networking for training and running models required, the demand for data centers will grow. That makes Digital Realty Trust a fearless stock to buy now before the end of 2023.
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 post Don’t Wait! 3 Fearless Stocks to Buy Before Year-End 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.
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But Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), and Tesla (NASDAQ:TSLA) all played a big role in the bull market that followed. Through a combination of artificial intelligence (AI), machine learning, and old-fashioned human intervention, the cybersecurity leader’s Falcon platform sifts through trillions of events weekly. Digital Ocean (DOCN) Source: monticello / Shutterstock.com Cybersecurity is going to be a long-term growth trend, but so is helping businesses transfer their data to the cloud.
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But Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), and Tesla (NASDAQ:TSLA) all played a big role in the bull market that followed. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The last bear market ended a little over a year ago. Digital Realty Trust (DLR) Source: dotshock / Shutterstock Yet another enduring trend we’re likely to see is the growth and strength of data centers.
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But Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), and Tesla (NASDAQ:TSLA) all played a big role in the bull market that followed. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The last bear market ended a little over a year ago. That makes Digital Realty Trust a fearless stock to buy now before the end of 2023.
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But Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) Apple (NASDAQ:AAPL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), and Tesla (NASDAQ:TSLA) all played a big role in the bull market that followed. The Identity Theft Resource Center says there were 2,116 data breaches in the first three quarters of 2023. That makes Digital Realty Trust a fearless stock to buy now before the end of 2023.
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12166.0
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2023-12-11 00:00:00 UTC
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Epic Games CEO says company won in Google Play antitrust case
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AAPL
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https://www.nasdaq.com/articles/epic-games-ceo-says-company-won-in-google-play-antitrust-case
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nan
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nan
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By Mike Scarcella and Greg Bensinger
Dec 11 (Reuters) - "Fortnite" maker Epic Games has prevailed in an antitrust trial over Alphabet's Google Play app marketplace GOOGL.O, Epic Chief Executive Tim Sweeney said on Monday, hours after the federal jury took up the case.
"Victory over Google! After 4 weeks of detailed court testimony, the California jury found against the Google Play monopoly on all counts. The Court’s work on remedies will start in January," Sweeney wrote in a post on X, formerly known as Twitter.
Spokespeople for Google and Epic did not immediately respond to requests for comment.
The lawsuit, filed in 2020, also challenges the fee of up to 30% that Google imposes on developers for in-app sales.
Alphabet CEO, in Play store trial, acknowledges some materials not retained https://www.reuters.com/technology/alphabet-ceo-play-store-trial-acknowledges-some-materials-not-retained-2023-11-14/
Google and Epic Games face off at trial over Play Store rules https://www.reuters.com/legal/transactional/google-epic-games-face-off-trial-over-play-store-rules-2023-11-06/
Alphabet, Match settle Google Play antitrust claims before US trial https://www.reuters.com/legal/alphabet-match-settle-google-play-antitrust-claims-before-us-trial-2023-10-31/
(Reporting by Mike Scarcella; Editing by David Bario, Bernadette Baum and Nick Zieminski)
((Mike.Scarcella@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Mike Scarcella and Greg Bensinger Dec 11 (Reuters) - "Fortnite" maker Epic Games has prevailed in an antitrust trial over Alphabet's Google Play app marketplace GOOGL.O, Epic Chief Executive Tim Sweeney said on Monday, hours after the federal jury took up the case. After 4 weeks of detailed court testimony, the California jury found against the Google Play monopoly on all counts. Alphabet CEO, in Play store trial, acknowledges some materials not retained https://www.reuters.com/technology/alphabet-ceo-play-store-trial-acknowledges-some-materials-not-retained-2023-11-14/ Google and Epic Games face off at trial over Play Store rules https://www.reuters.com/legal/transactional/google-epic-games-face-off-trial-over-play-store-rules-2023-11-06/ Alphabet, Match settle Google Play antitrust claims before US trial https://www.reuters.com/legal/alphabet-match-settle-google-play-antitrust-claims-before-us-trial-2023-10-31/ (Reporting by Mike Scarcella; Editing by David Bario, Bernadette Baum and Nick Zieminski) ((Mike.Scarcella@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Mike Scarcella and Greg Bensinger Dec 11 (Reuters) - "Fortnite" maker Epic Games has prevailed in an antitrust trial over Alphabet's Google Play app marketplace GOOGL.O, Epic Chief Executive Tim Sweeney said on Monday, hours after the federal jury took up the case. After 4 weeks of detailed court testimony, the California jury found against the Google Play monopoly on all counts. Alphabet CEO, in Play store trial, acknowledges some materials not retained https://www.reuters.com/technology/alphabet-ceo-play-store-trial-acknowledges-some-materials-not-retained-2023-11-14/ Google and Epic Games face off at trial over Play Store rules https://www.reuters.com/legal/transactional/google-epic-games-face-off-trial-over-play-store-rules-2023-11-06/ Alphabet, Match settle Google Play antitrust claims before US trial https://www.reuters.com/legal/alphabet-match-settle-google-play-antitrust-claims-before-us-trial-2023-10-31/ (Reporting by Mike Scarcella; Editing by David Bario, Bernadette Baum and Nick Zieminski) ((Mike.Scarcella@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Mike Scarcella and Greg Bensinger Dec 11 (Reuters) - "Fortnite" maker Epic Games has prevailed in an antitrust trial over Alphabet's Google Play app marketplace GOOGL.O, Epic Chief Executive Tim Sweeney said on Monday, hours after the federal jury took up the case. After 4 weeks of detailed court testimony, the California jury found against the Google Play monopoly on all counts. Alphabet CEO, in Play store trial, acknowledges some materials not retained https://www.reuters.com/technology/alphabet-ceo-play-store-trial-acknowledges-some-materials-not-retained-2023-11-14/ Google and Epic Games face off at trial over Play Store rules https://www.reuters.com/legal/transactional/google-epic-games-face-off-trial-over-play-store-rules-2023-11-06/ Alphabet, Match settle Google Play antitrust claims before US trial https://www.reuters.com/legal/alphabet-match-settle-google-play-antitrust-claims-before-us-trial-2023-10-31/ (Reporting by Mike Scarcella; Editing by David Bario, Bernadette Baum and Nick Zieminski) ((Mike.Scarcella@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Mike Scarcella and Greg Bensinger Dec 11 (Reuters) - "Fortnite" maker Epic Games has prevailed in an antitrust trial over Alphabet's Google Play app marketplace GOOGL.O, Epic Chief Executive Tim Sweeney said on Monday, hours after the federal jury took up the case. "Victory over Google! After 4 weeks of detailed court testimony, the California jury found against the Google Play monopoly on all counts.
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12167.0
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2023-12-11 00:00:00 UTC
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After Hours Most Active for Dec 11, 2023 : CXM, INTC, PTEN, AMZN, SABR, ORCL, BMY, AAPL, CNHI, BEKE, WFC, KHC
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-dec-11-2023-%3A-cxm-intc-pten-amzn-sabr-orcl-bmy-aapl-cnhi-beke
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -3.73 to 16,218. The total After hours volume is currently 107,434,502 shares traded.
The following are the most active stocks for the after hours session:
Sprinklr, Inc. (CXM) is unchanged at $11.13, with 5,728,437 shares traded. CXM's current last sale is 61.83% of the target price of $18.
Intel Corporation (INTC) is -0.03 at $44.51, with 5,150,024 shares traded. INTC's current last sale is 117.13% of the target price of $38.
Patterson-UTI Energy, Inc. (PTEN) is +0.06 at $10.90, with 4,971,397 shares traded. As reported by Zacks, the current mean recommendation for PTEN is in the "buy range".
Amazon.com, Inc. (AMZN) is unchanged at $145.89, with 4,135,804 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Sabre Corporation (SABR) is unchanged at $4.07, with 3,128,259 shares traded. As reported in the last short interest update the days to cover for SABR is 8.805181; this calculation is based on the average trading volume of the stock.
Oracle Corporation (ORCL) is -10.67 at $104.46, with 3,079,519 shares traded. Smarter Analyst Reports: Oracle Posts Upbeat Q2 Results; Shares Jump
Bristol-Myers Squibb Company (BMY) is +0.0199 at $51.11, with 2,794,269 shares traded. BMY's current last sale is 85.18% of the target price of $60.
Apple Inc. (AAPL) is unchanged at $193.18, with 2,585,680 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
CNH Industrial N.V. (CNHI) is unchanged at $11.09, with 2,472,649 shares traded. CNHI's current last sale is 73.4% of the target price of $15.11.
KE Holdings Inc (BEKE) is unchanged at $15.18, with 2,295,528 shares traded. As reported by Zacks, the current mean recommendation for BEKE is in the "buy range".
Wells Fargo & Company (WFC) is -0.01 at $45.99, with 2,238,634 shares traded. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
The Kraft Heinz Company (KHC) is -0.04 at $36.74, with 1,995,856 shares traded. KHC's current last sale is 94.21% of the target price of $39.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is unchanged at $193.18, with 2,585,680 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 AMZN is in the "buy range".
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Apple Inc. (AAPL) is unchanged at $193.18, with 2,585,680 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 107,434,502 shares traded.
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Apple Inc. (AAPL) is unchanged at $193.18, with 2,585,680 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 107,434,502 shares traded.
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Apple Inc. (AAPL) is unchanged at $193.18, with 2,585,680 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 -3.73 to 16,218.
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12168.0
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2023-12-11 00:00:00 UTC
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Notable Monday Option Activity: PAR, SABR, AAPL
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AAPL
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https://www.nasdaq.com/articles/notable-monday-option-activity%3A-par-sabr-aapl
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Par Technology Corp. (Symbol: PAR), where a total of 21,123 contracts have traded so far, representing approximately 2.1 million underlying shares. That amounts to about 915.9% of PAR's average daily trading volume over the past month of 230,620 shares. Particularly high volume was seen for the $22.50 strike call option expiring January 17, 2025, with 9,001 contracts trading so far today, representing approximately 900,100 underlying shares of PAR. Below is a chart showing PAR's trailing twelve month trading history, with the $22.50 strike highlighted in orange:
Sabre Corp (Symbol: SABR) saw options trading volume of 72,497 contracts, representing approximately 7.2 million underlying shares or approximately 174.7% of SABR's average daily trading volume over the past month, of 4.1 million shares. Particularly high volume was seen for the $2.50 strike put option expiring July 19, 2024, with 40,120 contracts trading so far today, representing approximately 4.0 million underlying shares of SABR. Below is a chart showing SABR's trailing twelve month trading history, with the $2.50 strike highlighted in orange:
And Apple Inc (Symbol: AAPL) options are showing a volume of 666,167 contracts thus far today. That number of contracts represents approximately 66.6 million underlying shares, working out to a sizeable 140.9% of AAPL's average daily trading volume over the past month, of 47.3 million shares. Especially high volume was seen for the $195 strike call option expiring December 15, 2023, with 89,150 contracts trading so far today, representing approximately 8.9 million underlying shares of AAPL. Below is a chart showing AAPL's trailing twelve month trading history, with the $195 strike highlighted in orange:
For the various different available expirations for PAR options, SABR options, or AAPL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
LOGL Insider Buying
HNNA Historical Stock Prices
ARTW Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $195 strike call option expiring December 15, 2023, with 89,150 contracts trading so far today, representing approximately 8.9 million underlying shares of AAPL. Below is a chart showing SABR's trailing twelve month trading history, with the $2.50 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 666,167 contracts thus far today. That number of contracts represents approximately 66.6 million underlying shares, working out to a sizeable 140.9% of AAPL's average daily trading volume over the past month, of 47.3 million shares.
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Below is a chart showing SABR's trailing twelve month trading history, with the $2.50 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 666,167 contracts thus far today. That number of contracts represents approximately 66.6 million underlying shares, working out to a sizeable 140.9% of AAPL's average daily trading volume over the past month, of 47.3 million shares. Especially high volume was seen for the $195 strike call option expiring December 15, 2023, with 89,150 contracts trading so far today, representing approximately 8.9 million underlying shares of AAPL.
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Especially high volume was seen for the $195 strike call option expiring December 15, 2023, with 89,150 contracts trading so far today, representing approximately 8.9 million underlying shares of AAPL. Below is a chart showing SABR's trailing twelve month trading history, with the $2.50 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 666,167 contracts thus far today. That number of contracts represents approximately 66.6 million underlying shares, working out to a sizeable 140.9% of AAPL's average daily trading volume over the past month, of 47.3 million shares.
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Below is a chart showing AAPL's trailing twelve month trading history, with the $195 strike highlighted in orange: For the various different available expirations for PAR options, SABR options, or AAPL options, visit StockOptionsChannel.com. Below is a chart showing SABR's trailing twelve month trading history, with the $2.50 strike highlighted in orange: And Apple Inc (Symbol: AAPL) options are showing a volume of 666,167 contracts thus far today. That number of contracts represents approximately 66.6 million underlying shares, working out to a sizeable 140.9% of AAPL's average daily trading volume over the past month, of 47.3 million shares.
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12169.0
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2023-12-11 00:00:00 UTC
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Could Apple Stock Plummet in 2024?
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AAPL
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https://www.nasdaq.com/articles/could-apple-stock-plummet-in-2024
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nan
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nan
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Apple (NASDAQ: AAPL) has had a phenomenal run in 2023, with the stock rising about 50% year to date. However, that rise wasn't warranted, in my opinion. If you analyze Apple's business results for its fiscal 2023, they aren't great. In fact, if it were any company besides Apple, the stock behind the business would have likely declined.
As a result, 2024 could be a bumpy year for Apple shareholders, as the company enters the year with sky-high expectations but no execution behind it. So is Apple stock due for a crash in 2024?
iPhone sales were weak in 2023
When analyzing Apple, it's easier to break the company into two segments: iPhones and everything else. In its fiscal 2023 fourth quarter, which ended Sept. 30, iPhones accounted for 49% of Apple's sales. However, iPhone sales weren't strong this year.
PERIOD IPHONE SALES GROWTH
Fiscal Q4 2023 2.8%
Fiscal Q3 2023 (2.5%)
Fiscal Q2 2023 1.4%
Fiscal Q1 2023 (8.1%)
Data source: Apple.
When sales of a company's flagship product are hardly growing, that's a problem, and that showed on the top line. Apple's total revenues declined year over year in every quarter of fiscal 2023.
The only bright spot in fiscal 2023 was its services division, which includes Apple TV+, advertising, Apple Care, Cloud Services, and all the revenue it accrues from sales in the App Store. Services segment sales increased every quarter, and rose 16% to $22.3 billion in the most recent one.
But services only amount to about a quarter of Apple's business, and that success didn't offset the weaknesses in sales of wearables, Macs, or iPads.
Still, revenue isn't everything when assessing a business. Profits matter too.
Apple is a master at optimizing its resources, and it did a great job of that. Though revenue declined 2.8% in fiscal 2023, its earnings per share slightly rose from $6.15 last year to $6.16 this year. But barely growing earnings isn't going to cut it, especially for a stock that trades at the premium Apple does.
Apple trades at massive premium despite little growth
So Apple's 2023 wasn't spectacular. Still, investors felt the need to slap a premium price tag on the stock.
AAPL PE Ratio data by YCharts.
When Apple traded above its current valuation in 2020 and 2021, its revenue growth supported the premium. Now that Apple's earnings ratio has returned to that level without the revenue growth, it doesn't.
This makes me believe that Apple stock is trading on borrowed time. If it cannot start growing sales, investors may lose their willingness to pay this premium for the stock, especially when there are many other choices out there that are both cheaper and growing faster.
But Apple didn't become the world's largest company without reason. It could launch an innovative, must-have product that substantially boosts sales and justifies the stock price. Or iPhone sales could rebound to kick-start growth again.
However, Wall Street analysts project 3.5% growth in its fiscal 2024 and 5.7% in its fiscal 2025, so they're not expecting much growth either.
In my book, Apple's stock is overvalued, and I'd look at other investment options rather than buying its shares.
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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.
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Apple (NASDAQ: AAPL) has had a phenomenal run in 2023, with the stock rising about 50% year to date. AAPL PE Ratio data by YCharts. But services only amount to about a quarter of Apple's business, and that success didn't offset the weaknesses in sales of wearables, Macs, or iPads.
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Apple (NASDAQ: AAPL) has had a phenomenal run in 2023, with the stock rising about 50% year to date. AAPL PE Ratio data by YCharts. If you analyze Apple's business results for its fiscal 2023, they aren't great.
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Apple (NASDAQ: AAPL) has had a phenomenal run in 2023, with the stock rising about 50% year to date. AAPL PE Ratio data by YCharts. The only bright spot in fiscal 2023 was its services division, which includes Apple TV+, advertising, Apple Care, Cloud Services, and all the revenue it accrues from sales in the App Store.
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Apple (NASDAQ: AAPL) has had a phenomenal run in 2023, with the stock rising about 50% year to date. AAPL PE Ratio data by YCharts. Though revenue declined 2.8% in fiscal 2023, its earnings per share slightly rose from $6.15 last year to $6.16 this year.
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12170.0
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2023-12-11 00:00:00 UTC
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Is John Hancock Multifactor Large Cap ETF (JHML) a Strong ETF Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-john-hancock-multifactor-large-cap-etf-jhml-a-strong-etf-right-now-9
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nan
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nan
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Launched on 09/28/2015, the John Hancock Multifactor Large Cap ETF (JHML) is a smart beta exchange traded fund offering 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.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
JHML is managed by John Hancock, and this fund has amassed over $744.08 million, which makes it one of the larger ETFs in the Style Box - Large Cap Blend. JHML seeks to match the performance of the John Hancock Dimensional Large Cap Index before fees and expenses.
The John Hancock Dimensional Large Cap Index comprises of a subset of securities in the U.S. Universe issued by companies whose market capitalizations are larger than that of the 801st largest U.S. company.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.29% for this ETF, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.39%.
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 23.70% of the portfolio. Financials and Industrials round out the top three.
Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.52% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN).
JHML's top 10 holdings account for about 19.11% of its total assets under management.
Performance and Risk
The ETF return is roughly 16.04% and is up about 12.87% so far this year and in the past one year (as of 12/11/2023), respectively. JHML has traded between $48.55 and $56.80 during this last 52-week period.
JHML has a beta of 1.01 and standard deviation of 17.08% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 781 holdings, it effectively diversifies company-specific risk.
Alternatives
John Hancock Multifactor Large Cap ETF 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.
IShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY) tracks S&P 500 Index. IShares Core S&P 500 ETF has $381.68 billion in assets, SPDR S&P 500 ETF has $444.91 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
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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John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
To read this article on Zacks.com click here.
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.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.52% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. 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.
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Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.52% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Launched on 09/28/2015, the John Hancock Multifactor Large Cap ETF (JHML) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
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Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.52% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Launched on 09/28/2015, the John Hancock Multifactor Large Cap ETF (JHML) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
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Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 4.52% of total assets, followed by Apple Inc (AAPL) and Amazon.com Inc (AMZN). Click to get this free report John Hancock Multifactor Large Cap ETF (JHML): ETF Research Reports Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here. Launched on 09/28/2015, the John Hancock Multifactor Large Cap ETF (JHML) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
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12171.0
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2023-12-11 00:00:00 UTC
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US STOCKS-S&P, Nasdaq subdued on caution ahead of inflation data, Fed meeting
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-nasdaq-subdued-on-caution-ahead-of-inflation-data-fed-meeting
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nan
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nan
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By Shristi Achar A and Johann M Cherian
Dec 11 (Reuters) - The S&P 500 and Nasdaq were subdued on Monday in the run-up to an action-packed week that includes the Federal Reserve's policy meeting and inflation data, both of which will test investor optimism about interest rates easing next year.
The upbeat sentiment around stabilizing interest rates and robust quarterly earnings caused equities to rebound towards the end of the year, with the benchmark S&P 500 .SPX hitting its highest intra-day level of the year.
The S&P 500 and Nasdaq .IXIC also notched their highest closing since early 2022 on Friday, after data showed nonfarm payrolls were higher than expected, underscoring hopes that the world's largest economy could control inflation without slipping into a recession.
Focus now shifts to the Consumer Price Index (CPI) data due on Tuesday, which is expected to show headline inflation remaining unchanged in November, and the Fed's last interest rate decision of the year on Wednesday.
While money markets have almost fully priced in a rate-hike pause in the upcoming meeting, bets of a rate cut next year have been seeping in, with traders seeing a near 40% chance of at least a 25-basis-point cut in March 2024 and a 72.6% chance in May, according to the CME Group's FedWatch tool.
"Anything short of a cooler CPI number or some less hawkish commentary from (Federal Reserve) Chair Powell will throw a little bit of cold water on some of the optimism," said Michael James, managing director of equity trading at Wedbush Securities.
Elsewhere, the European Central Bank and the Bank of England, among others, are also scheduled to deliver their interest rate decisions later this week.
Megacaps including Alphabet GOOGL.O, Apple AAPL.Oand Amazon.com AMZN.O shed between 1.7% and 2%, keeping the tech-heavy Nasdaq under pressure, while a 6.6% gain in Broadcom AVGO.O, after Citigroup resumed coverage on the chipmaker with a "buy" rating, limited further losses.
CignaCI.N jumped 16.2% after the health insurer ended its attempt to negotiate the acquisition of rival Humana HUM.N, according to sources, and announced a $10 billion share buyback plan.
Cushioning the blue-chip Dow, NikeNKE.N added 2.7% after brokerage Citigroup upgraded its stock to "buy" from "neutral".
Among other movers, Macy'sM.N soared 19.3% after an investor group consisting of Arkhouse Management and Brigade Capital made a $5.8 billion offer to take the department store chain private, according to a source.
Crypto stocks like Riot Platforms RIOT.O, Coinbase COIN.O and Marathon Digital MARA.O slid between 5.5% and 12% as bitcoin BTC=BTSP fell to a week's low.
The S&P index recorded 50 new 52-week highs and no new lows, while the Nasdaq recorded 81 new highs and 95 new lows.
(Reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai)
((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar; johann.mcherian@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Megacaps including Alphabet GOOGL.O, Apple AAPL.Oand Amazon.com AMZN.O shed between 1.7% and 2%, keeping the tech-heavy Nasdaq under pressure, while a 6.6% gain in Broadcom AVGO.O, after Citigroup resumed coverage on the chipmaker with a "buy" rating, limited further losses. By Shristi Achar A and Johann M Cherian Dec 11 (Reuters) - The S&P 500 and Nasdaq were subdued on Monday in the run-up to an action-packed week that includes the Federal Reserve's policy meeting and inflation data, both of which will test investor optimism about interest rates easing next year. Focus now shifts to the Consumer Price Index (CPI) data due on Tuesday, which is expected to show headline inflation remaining unchanged in November, and the Fed's last interest rate decision of the year on Wednesday.
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Megacaps including Alphabet GOOGL.O, Apple AAPL.Oand Amazon.com AMZN.O shed between 1.7% and 2%, keeping the tech-heavy Nasdaq under pressure, while a 6.6% gain in Broadcom AVGO.O, after Citigroup resumed coverage on the chipmaker with a "buy" rating, limited further losses. By Shristi Achar A and Johann M Cherian Dec 11 (Reuters) - The S&P 500 and Nasdaq were subdued on Monday in the run-up to an action-packed week that includes the Federal Reserve's policy meeting and inflation data, both of which will test investor optimism about interest rates easing next year. Focus now shifts to the Consumer Price Index (CPI) data due on Tuesday, which is expected to show headline inflation remaining unchanged in November, and the Fed's last interest rate decision of the year on Wednesday.
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Megacaps including Alphabet GOOGL.O, Apple AAPL.Oand Amazon.com AMZN.O shed between 1.7% and 2%, keeping the tech-heavy Nasdaq under pressure, while a 6.6% gain in Broadcom AVGO.O, after Citigroup resumed coverage on the chipmaker with a "buy" rating, limited further losses. By Shristi Achar A and Johann M Cherian Dec 11 (Reuters) - The S&P 500 and Nasdaq were subdued on Monday in the run-up to an action-packed week that includes the Federal Reserve's policy meeting and inflation data, both of which will test investor optimism about interest rates easing next year. The upbeat sentiment around stabilizing interest rates and robust quarterly earnings caused equities to rebound towards the end of the year, with the benchmark S&P 500 .SPX hitting its highest intra-day level of the year.
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Megacaps including Alphabet GOOGL.O, Apple AAPL.Oand Amazon.com AMZN.O shed between 1.7% and 2%, keeping the tech-heavy Nasdaq under pressure, while a 6.6% gain in Broadcom AVGO.O, after Citigroup resumed coverage on the chipmaker with a "buy" rating, limited further losses. By Shristi Achar A and Johann M Cherian Dec 11 (Reuters) - The S&P 500 and Nasdaq were subdued on Monday in the run-up to an action-packed week that includes the Federal Reserve's policy meeting and inflation data, both of which will test investor optimism about interest rates easing next year. The upbeat sentiment around stabilizing interest rates and robust quarterly earnings caused equities to rebound towards the end of the year, with the benchmark S&P 500 .SPX hitting its highest intra-day level of the year.
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12172.0
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2023-12-11 00:00:00 UTC
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QUAL, GPIX: Big ETF Outflows
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AAPL
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https://www.nasdaq.com/articles/qual-gpix%3A-big-etf-outflows
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nan
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nan
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares MSCI USA Quality Factor ETF, where 20,200,000 units were destroyed, or a 7.5% decrease week over week. Among the largest underlying components of QUAL, in morning trading today Visa is up about 0.4%, and Apple is lower by about 1.8%.
And on a percentage change basis, the ETF with the biggest outflow was the GPIX ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior.
VIDEO: QUAL, GPIX: 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.
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Among the largest underlying components of QUAL, in morning trading today Visa is up about 0.4%, and Apple is lower by about 1.8%. And on a percentage change basis, the ETF with the biggest outflow was the GPIX ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: QUAL, GPIX: 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.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares MSCI USA Quality Factor ETF, where 20,200,000 units were destroyed, or a 7.5% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the GPIX ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: QUAL, GPIX: 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.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares MSCI USA Quality Factor ETF, where 20,200,000 units were destroyed, or a 7.5% decrease week over week. And on a percentage change basis, the ETF with the biggest outflow was the GPIX ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. VIDEO: QUAL, GPIX: 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.
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Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares MSCI USA Quality Factor ETF, where 20,200,000 units were destroyed, or a 7.5% decrease week over week. Among the largest underlying components of QUAL, in morning trading today Visa is up about 0.4%, and Apple is lower by about 1.8%. And on a percentage change basis, the ETF with the biggest outflow was the GPIX ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior.
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12173.0
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2023-12-11 00:00:00 UTC
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Netflix to livestream Nadal-Alcaraz face-off in March
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AAPL
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https://www.nasdaq.com/articles/netflix-to-livestream-nadal-alcaraz-face-off-in-march
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nan
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nan
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Dec 11 (Reuters) - Netflix NFLX.O will livestream a tennis face-off between 22-time Grand Slam champion Rafael Nadal and current World No.2 Carlos Alcaraz on March 3, the streaming pioneer said on Monday.
"The Netflix Slam" marks the company's latest foray into live sports after a celebrity golf tournament in November, which featured Formula One drivers and professional golfers.
Live sports streaming by big tech firms has seen growing viewership in recent years and the companies are cashing in on the trend. Amazon Prime snapped up the rights to Thursday Night Football, while Apple TV hosts Friday Night Baseball and Major League Soccer.
The Nadal-Alcaraz match, hosted by MGM Resorts International MGM.N, will take place at noon inside the Michelob ULTRA Arena at the Mandalay Bay Resort and Casino in Las Vegas. More players and matches will be announced later, Netflix said in a statement.
Big tech's foray into live sports has challenged traditional TV-focused companies, for which live sports remains a rare bright spot, at a time when cord-cutting is upending their business models.
Netflix has suggested it does not plan to compete for sports rights, with finance chief Spencer Neumann saying in September that it was hard to see a return on billions of dollars of investment in live sports.
Instead, the company plans to focus on what is called sports shoulder programming - companion content such as its "Formula 1: Drive to Survive" documentary series that hopes to tap the same audience base as live sports.
The tennis face-off between Nadal and Alcaraz will stream as a dual broadcast in English and Spanish. Tickets for the event start at $88 and will go on sale on Friday.
"I am sure it will be a fantastic night of tennis," Nadal said in a statement.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Pooja Desai)
((Jaspreet.Singh@thomsonreuters.com; https://twitter.com/i_jass;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dec 11 (Reuters) - Netflix NFLX.O will livestream a tennis face-off between 22-time Grand Slam champion Rafael Nadal and current World No.2 Carlos Alcaraz on March 3, the streaming pioneer said on Monday. "The Netflix Slam" marks the company's latest foray into live sports after a celebrity golf tournament in November, which featured Formula One drivers and professional golfers. Live sports streaming by big tech firms has seen growing viewership in recent years and the companies are cashing in on the trend.
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"The Netflix Slam" marks the company's latest foray into live sports after a celebrity golf tournament in November, which featured Formula One drivers and professional golfers. Live sports streaming by big tech firms has seen growing viewership in recent years and the companies are cashing in on the trend. Big tech's foray into live sports has challenged traditional TV-focused companies, for which live sports remains a rare bright spot, at a time when cord-cutting is upending their business models.
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Dec 11 (Reuters) - Netflix NFLX.O will livestream a tennis face-off between 22-time Grand Slam champion Rafael Nadal and current World No.2 Carlos Alcaraz on March 3, the streaming pioneer said on Monday. Big tech's foray into live sports has challenged traditional TV-focused companies, for which live sports remains a rare bright spot, at a time when cord-cutting is upending their business models. Netflix has suggested it does not plan to compete for sports rights, with finance chief Spencer Neumann saying in September that it was hard to see a return on billions of dollars of investment in live sports.
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The Nadal-Alcaraz match, hosted by MGM Resorts International MGM.N, will take place at noon inside the Michelob ULTRA Arena at the Mandalay Bay Resort and Casino in Las Vegas. Big tech's foray into live sports has challenged traditional TV-focused companies, for which live sports remains a rare bright spot, at a time when cord-cutting is upending their business models. "I am sure it will be a fantastic night of tennis," Nadal said in a statement.
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12174.0
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2023-12-11 00:00:00 UTC
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ETF Investing Strategies for 2024
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AAPL
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https://www.nasdaq.com/articles/etf-investing-strategies-for-2024
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nan
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nan
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(1:15) - How Many Rate Cuts Could We See In 2024?
(3:50) - Will We See Investors Chase The Recent Equity Rally?
(8:45) - What To Expect Going Into 2024 With A Slowing Economy?
(13:50) - Investing Themes For 2024: How Should You Position Yourself For The New Year?
(21:00) - Breaking Down Fixed Income Performance: Should You Stay Invested?
(24:35) - ETF Inflows Trends: Where Should Investors Be Looking Right Now?
(27:20) - Episode Roundup: QUAL. IRBO, EWJ, INDA, BINC, IEI
Podcast@zacks.com
In this episode of ETF Spotlight, I speak with Kristy Akullian, Director on BlackRock’s iShares Investment Strategy team, about the market outlook and investing strategies for 2024. BlackRock, the world’s largest asset manager, offers about 430 US-listed ETFs.
Stocks and bonds have posted their biggest rallies recently, fueled by hopes that the Fed will start cutting rates next year. According to BlackRock, while we are likely at the end of the hiking cycle, the central bank is expected to maintain higher rates for an extended period.
Historically, stocks and bonds have performed better during the pause period than during easing periods following the initial rate cut. However, the interaction of slowing economic growth, US elections, and escalating geopolitical tensions introduces volatility into the market environment.
While large-cap growth and quality stocks may still lead the market rally and provide some stability, various factors could prompt leadership changes throughout the year.
The iShares MSCI USA Quality Factor ETF QUAL has gathered more than $12 billion of new cash this year. Stocks like Apple AAPL, Microsoft MSFT, and NVIDIA NVDA are its top holdings.
Investors have poured over $1 trillion into money market funds and other cash-like instruments this year. While it is important to reduce exposure to cash now, the risk-reward doesn't justify a move to the long-duration bonds.
Investors could consider active bond strategies and intermediate-duration bond exposures. Take a look at the BlackRock Flexible Income BINC and the iShares 3-7 Year Treasury Bond ETFIEI.
AI enthusiasm drove the market rally this year, but adoption of generative AI is still in its early stages. ETF like the iShares Robotics and Artificial Intelligence Multisector ETFIRBO could continue their rally next year.
Tune in to the podcast to learn more.
Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.
Disclosure: Neena holds QUAL and IRBO in the ETF Investor Portfolio.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports
iShares 3-7 Year Treasury Bond ETF (IEI): ETF Research Reports
iShares Robotics and Artificial Intelligence Multisector ETF (IRBO): ETF Research Reports
BlackRock Flexible Income ETF (BINC): 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.
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Stocks like Apple AAPL, Microsoft MSFT, and NVIDIA NVDA are its top holdings. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports iShares 3-7 Year Treasury Bond ETF (IEI): ETF Research Reports iShares Robotics and Artificial Intelligence Multisector ETF (IRBO): ETF Research Reports BlackRock Flexible Income ETF (BINC): ETF Research Reports To read this article on Zacks.com click here. Stocks and bonds have posted their biggest rallies recently, fueled by hopes that the Fed will start cutting rates next year.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports iShares 3-7 Year Treasury Bond ETF (IEI): ETF Research Reports iShares Robotics and Artificial Intelligence Multisector ETF (IRBO): ETF Research Reports BlackRock Flexible Income ETF (BINC): ETF Research Reports To read this article on Zacks.com click here. Stocks like Apple AAPL, Microsoft MSFT, and NVIDIA NVDA are its top holdings. The iShares MSCI USA Quality Factor ETF QUAL has gathered more than $12 billion of new cash this year.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports iShares 3-7 Year Treasury Bond ETF (IEI): ETF Research Reports iShares Robotics and Artificial Intelligence Multisector ETF (IRBO): ETF Research Reports BlackRock Flexible Income ETF (BINC): ETF Research Reports To read this article on Zacks.com click here. Stocks like Apple AAPL, Microsoft MSFT, and NVIDIA NVDA are its top holdings. IRBO, EWJ, INDA, BINC, IEI Podcast@zacks.com In this episode of ETF Spotlight, I speak with Kristy Akullian, Director on BlackRock’s iShares Investment Strategy team, about the market outlook and investing strategies for 2024.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports iShares 3-7 Year Treasury Bond ETF (IEI): ETF Research Reports iShares Robotics and Artificial Intelligence Multisector ETF (IRBO): ETF Research Reports BlackRock Flexible Income ETF (BINC): ETF Research Reports To read this article on Zacks.com click here. Stocks like Apple AAPL, Microsoft MSFT, and NVIDIA NVDA are its top holdings. IRBO, EWJ, INDA, BINC, IEI Podcast@zacks.com In this episode of ETF Spotlight, I speak with Kristy Akullian, Director on BlackRock’s iShares Investment Strategy team, about the market outlook and investing strategies for 2024.
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2023-12-10 00:00:00 UTC
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1 Artificial Intelligence (AI) Stock Set to Join Apple, Amazon, Microsoft, Alphabet, and Nvidia in the $1 Trillion Club
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AAPL
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https://www.nasdaq.com/articles/1-artificial-intelligence-ai-stock-set-to-join-apple-amazon-microsoft-alphabet-and-nvidia
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Every company in the $1 trillion club is investing heavily in artificial intelligence (AI).
Apple (NASDAQ: AAPL) touted several AI-powered features in its latest iOS update and new iPhone release. The company pours around $1 billion annually into developing new AI technologies.
Amazon (NASDAQ: AMZN) is the leading cloud computing platform, and it just unveiled its new Trainium 2 chip design to enable developers to train their large language models while using less computing power. It also announced a new partnership with Nvidia (NASDAQ: NVDA).
Microsoft (NASDAQ: MSFT) positioned itself as a top choice for AI developers when it increased its investment in OpenAI earlier this year, garnering a 49% stake in the leading AI developer. Its generative AI-powered Copilot service is seeing great momentum across multiple enterprise applications.
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is developing its own large language model to power its services and provides a cloud computing platform for developers to train and run their own AI applications.
Nvidia is the leading AI chipmaker. Leading-edge developers use its graphics processing units (GPUs) to train their AI models.
It should be no surprise, then, that one of the most promising stocks to join the group with market caps exceeding $1 trillion is also spending heavily to develop artificial intelligence and apply it to its products. In fact, there might not be anyone developing an AI as advanced as Meta Platform's (NASDAQ: META), and the market may be underappreciating its potential.
Image source: Getty Images.
Pushing generative AI forward
Meta CEO Mark Zuckerberg has practically transformed his company from a social media platform provider to an AI innovator. "AI will be our biggest investment area in 2024 -- both in engineering and compute resources," he told analysts during Meta's third-quarter earnings call. Not only that, he's shifting headcount from other areas, deprioritizing non-AI projects to facilitate the investment in artificial intelligence.
So far, the investments have paid off. The company released its Llama 2 large language model over the summer and made it open source. Developers have taken it and produced results that can compete with the leading private AI models, like OpenAI's GPT-4. That could lead to further advancements in Meta's development of Llama 3, which could come as early as the first half of 2024.
But Meta has a big advantage over many of the existing members of the $1 trillion club. It is its own biggest AI customer.
While Microsoft pushes its Copilot features to its enterprise software customers, Nvidia must convince companies they need its chips, and cloud providers have to win customers for their compute space, Meta doesn't really sell its AI developments.
It's simply making its products better
Meta's machine-learning AI, which it's been working on for over a decade, got a massive investment boost after Meta released Reels on Instagram and Facebook.
The algorithm is increasingly responsible for what you see on Facebook or Instagram. Meta says AI-recommended content increased overall engagement by 7% on Facebook and 6% on Instagram this year. Considering the average American spends over an hour per day across those two platforms, that's a lot of added minutes. It's also responsible for Reels driving incremental time spent on Instagram and now reaching a revenue-neutral impact for Instagram.
Meta also uses generative AI to help businesses craft more effective advertisements on Facebook and Instagram. It can do anything from suggesting better wording to testing hundreds of variations of an ad to find the optimal choice. Generative AI can help marketers eke out that extra level of conversions to make ads more valuable.
But the biggest developments may be yet to come.
Meta unveiled several new AI features at its Meta Connect conference in September. One of the most promising features was Meta's AI studio for businesses. The feature makes it easy for businesses to create more effective chatbots for WhatsApp and Messenger.
Driving users from Instagram or Facebook to one of Meta's messaging apps is already a $10 billion business, but Zuckerberg thinks messaging could be much bigger. Making it easier for businesses to access the most powerful features of its business messaging services could drive tens of billions more in revenue for the company.
Down the road, it's easy to see Meta incorporating generative AI to make the metaverse more appealing with lifelike avatars and environments. For now, though, it's already using its AI investments to show meaningful revenue growth.
Indeed, Meta's advertising revenue grew 23.5% in the third quarter. That far outpaces Google's 9.5% year-over-year improvement and comes close to Amazon's 25% growth off a much smaller base.
The stock price is really attractive
Despite the stock's strong performance in 2023, investors can still get a deal on Meta's stock. Shares trade for just 22.5 times its earnings estimate for the next 12 months. To put that in perspective, here are the forward PE ratios of everyone else in the $1 trillion club.
COMPANY FORWARD PE
Apple 29.6
Microsoft 32.8
Amazon 54.5
Alphabet 24.1
Nvidia 37.3
Meta 22.5
Table source: author. Data source: YCharts. PE = price to earnings.
I'm not saying any of the members of the $1 trillion club are overvalued (at least not in this article). But Meta's shares look undervalued by comparison. As a leading innovator in AI that's using its development to drive accelerating revenue growth and higher profits, the stock looks poised to hit the milestone again in the near future. Shares will have to climb about 21% to reach $1 trillion, and that looks well within reach for Meta.
10 stocks we like better than Meta Platforms
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Meta Platforms wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adam Levy has positions in Alphabet, Amazon, Apple, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. 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.
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Apple (NASDAQ: AAPL) touted several AI-powered features in its latest iOS update and new iPhone release. It should be no surprise, then, that one of the most promising stocks to join the group with market caps exceeding $1 trillion is also spending heavily to develop artificial intelligence and apply it to its products. "AI will be our biggest investment area in 2024 -- both in engineering and compute resources," he told analysts during Meta's third-quarter earnings call.
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Apple (NASDAQ: AAPL) touted several AI-powered features in its latest iOS update and new iPhone release. Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is developing its own large language model to power its services and provides a cloud computing platform for developers to train and run their own AI applications. Pushing generative AI forward Meta CEO Mark Zuckerberg has practically transformed his company from a social media platform provider to an AI innovator.
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Apple (NASDAQ: AAPL) touted several AI-powered features in its latest iOS update and new iPhone release. Microsoft (NASDAQ: MSFT) positioned itself as a top choice for AI developers when it increased its investment in OpenAI earlier this year, garnering a 49% stake in the leading AI developer. In fact, there might not be anyone developing an AI as advanced as Meta Platform's (NASDAQ: META), and the market may be underappreciating its potential.
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Apple (NASDAQ: AAPL) touted several AI-powered features in its latest iOS update and new iPhone release. Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is developing its own large language model to power its services and provides a cloud computing platform for developers to train and run their own AI applications. Meta also uses generative AI to help businesses craft more effective advertisements on Facebook and Instagram.
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12176.0
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2023-12-10 00:00:00 UTC
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EV battery startup ONE names Paul Humphries as CEO, replacing founder
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AAPL
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https://www.nasdaq.com/articles/ev-battery-startup-one-names-paul-humphries-as-ceo-replacing-founder
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nan
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nan
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Dec 10 (Reuters) - Electric-vehicle battery startup Our Next Energy (ONE) said on Sunday that Paul Humphries will be its new CEO effective immediately, replacing Mujeeb Ijaz, who held the post since he founded the company.
Ijaz, a former Apple AAPL.O executive, will serve as vice-chairman of the board and take on the role of chief technology officer following Humphries' appointment, ONE said.
Humphries has also been a member of the ONE Board of Directors since the company was founded in 2020.
The Michigan-based company cut around 25% of its workforce, or 128 employees last month, citing "market conditions" as reason for the layoffs. It added that it is continuing to focus on establishing its gigafactory in Michigan and to develop a North American supply chain for batteries.
The company said in February it had raised $300 million in a Series B funding, valuing it at $1.2 billion.
(Reporting by Rishabh Jaiswal in Bengaluru Editing by Marguerita Choy)
((rishabh.jaiswal@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Ijaz, a former Apple AAPL.O executive, will serve as vice-chairman of the board and take on the role of chief technology officer following Humphries' appointment, ONE said. Dec 10 (Reuters) - Electric-vehicle battery startup Our Next Energy (ONE) said on Sunday that Paul Humphries will be its new CEO effective immediately, replacing Mujeeb Ijaz, who held the post since he founded the company. It added that it is continuing to focus on establishing its gigafactory in Michigan and to develop a North American supply chain for batteries.
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Ijaz, a former Apple AAPL.O executive, will serve as vice-chairman of the board and take on the role of chief technology officer following Humphries' appointment, ONE said. Dec 10 (Reuters) - Electric-vehicle battery startup Our Next Energy (ONE) said on Sunday that Paul Humphries will be its new CEO effective immediately, replacing Mujeeb Ijaz, who held the post since he founded the company. Humphries has also been a member of the ONE Board of Directors since the company was founded in 2020.
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Ijaz, a former Apple AAPL.O executive, will serve as vice-chairman of the board and take on the role of chief technology officer following Humphries' appointment, ONE said. Dec 10 (Reuters) - Electric-vehicle battery startup Our Next Energy (ONE) said on Sunday that Paul Humphries will be its new CEO effective immediately, replacing Mujeeb Ijaz, who held the post since he founded the company. Humphries has also been a member of the ONE Board of Directors since the company was founded in 2020.
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Ijaz, a former Apple AAPL.O executive, will serve as vice-chairman of the board and take on the role of chief technology officer following Humphries' appointment, ONE said. Humphries has also been a member of the ONE Board of Directors since the company was founded in 2020. The Michigan-based company cut around 25% of its workforce, or 128 employees last month, citing "market conditions" as reason for the layoffs.
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12177.0
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2023-12-10 00:00:00 UTC
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Guru Fundamental Report for AAPL
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AAPL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aapl-26
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nan
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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
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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.
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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.
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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.
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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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12178.0
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2023-12-10 00:00:00 UTC
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49.5% of Warren Buffett's $361 Billion Portfolio Is Invested in 3 Artificial Intelligence (AI) Stocks. And That Number's Getting Bigger.
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AAPL
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https://www.nasdaq.com/articles/49.5-of-warren-buffetts-%24361-billion-portfolio-is-invested-in-3-artificial-intelligence-ai
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Warren Buffett has never been one to follow trends in technology. Nonetheless, his investment portfolio for Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has become heavily weighted toward one of the biggest technology trends of the last decade: artificial intelligence (AI).
Nearly half of Berkshire's $361 billion portfolio is invested in just three AI stocks. What's more, that percentage is getting bigger, as Buffett and his team at Berkshire trim their other stock positions. But this trio has, for the most part, withstood the portfolio culling. All three present excellent investment opportunities and may deserve a spot in your portfolio.
Let's take a closer look at these three Berkshire-backed AI stocks.
1. Apple: 48.8% of Berkshire Hathaway's portfolio
Berkshire Hathaway first bought shares of Apple (NASDAQ: AAPL) in 2016 and has continued to buy shares. Its most recent purchase was in the first quarter of 2023 when Buffett and his team added 20.4 million more shares to bring the total to 915.6 million. Those shares now account for about 48% of Berkshire's investment portfolio.
There's a lot for Buffett to like about Apple. Its combination of hardware, software, and services gives it a strong moat. And that moat isn't just against competitors, as exemplified by the iPhone's 55%-plus market share for smartphones in the United States. Buffett said at Berkshire Hathaway's shareholder meeting earlier this year that people would rather give up their car than their iPhone if they had to choose.
Apple has been a longtime investor in AI, but you might not realize it. The company has a history of focusing on consumer benefits instead of the technology behind how it creates those game-changing features in its products. For example, AI powers lots of new features in the new iOS and WatchOS, such as live voice mail, crash detection, and abnormal ECG detection.
Apple is also starting to invest heavily in the forefront of AI development: generative AI. It reportedly built its own large language model and it's internally testing its own ChatGPT-style chatbot.
As the platform owner, Apple has a tremendous advantage if and when it rolls out a generative AI application like a chatbot. It can build it directly into the native iOS, MacOS, and WatchOS software that over 2 billion people around the world already use. That's a massive advantage that could present new revenue opportunities for Apple or simply make its devices that much more desirable.
With shares trading around 29 times 2024 earnings estimates, Apple stock carries a premium compared to the S&P 500. However, with its massive cash position and share repurchase program, the stock deserves that premium. Investors shouldn't shy away from Buffett's favorite stock.
2. Amazon: 0.4% of Berkshire Hathaway's portfolio
Berkshire Hathaway owns 10 million shares of Amazon (NASDAQ: AMZN) after giving its position a slight trim last quarter. The holding company first bought a stake in early 2019. Buffett previously lamented his inability to get a handle on the power of the Amazon business model and the value of the company as the big reason stopping him from buying the stock earlier.
Amazon has built a strong foundation in AI innovation that can be seen throughout its operations. From product recommendations to supply chain management to its logistics routing, AI is essential to improving Amazon's bottom line, so it has invested heavily in building advanced algorithms. More recently, Amazon integrated more advanced AI into its Alexa voice assistant.
But Amazon is also a big tech company investing in both hardware and software for generative AI. Its cloud computing business, Amazon Web Services, is helping more and more businesses bring AI capabilities to their businesses and data analysis. It invested $4 billion in Anthropic, one of the leading generative AI developers. Anthropic subsequently agreed to use Amazon's Trainium chips to train its large language model in Amazon's cloud.
As the leading enterprise cloud provider, Amazon is in a strong position to capitalize on the growing demand for AI. Despite its high valuation, shares are still attractive because the tech titan is showing improving margins and AI investments give it a lot of potential to outperform analysts' expectations going forward.
3. Snowflake: 0.3% of Berkshire Hathaway's portfolio
Berkshire Hathaway purchased a stake in Snowflake (NYSE: SNOW) just before its IPO in 2020. The 6.13 million shares it acquired have remained untouched since, and they now account for about 0.3% of the company's investment portfolio.
Snowflake has artificial intelligence at its core. It specializes in data lakes, which store unorganized data from companies. It uses AI to digest that information and create insights for enterprises, which can then be retrieved from a data warehouse as needed. Snowflake removes the need for businesses to invest in their own storage and processing and works with all the major public cloud computing providers.
As the amount of data organizations create grows, especially in developing new AI applications, Snowflake's data storage and processing service becomes increasingly valuable. On top of that, Snowflake lets businesses sell their data on its marketplace, which could become a big business as AI developers look for data to feed into their models and applications.
Despite its recent strong price performance, Snowflake stock trades at a great value relative to its historic pricing. Its price-to-sales ratio of 22.9 is below where it started the year, and well below its historic median P/S ratio above 34. As data continues to fuel the AI revolution, Snowflake will play a crucial role in helping businesses make sense of and access that data, driving strong top-line growth for years to come.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adam Levy has positions in Amazon and Apple. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Snowflake. 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.
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Apple: 48.8% of Berkshire Hathaway's portfolio Berkshire Hathaway first bought shares of Apple (NASDAQ: AAPL) in 2016 and has continued to buy shares. Buffett previously lamented his inability to get a handle on the power of the Amazon business model and the value of the company as the big reason stopping him from buying the stock earlier. From product recommendations to supply chain management to its logistics routing, AI is essential to improving Amazon's bottom line, so it has invested heavily in building advanced algorithms.
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Apple: 48.8% of Berkshire Hathaway's portfolio Berkshire Hathaway first bought shares of Apple (NASDAQ: AAPL) in 2016 and has continued to buy shares. Amazon: 0.4% of Berkshire Hathaway's portfolio Berkshire Hathaway owns 10 million shares of Amazon (NASDAQ: AMZN) after giving its position a slight trim last quarter. Snowflake: 0.3% of Berkshire Hathaway's portfolio Berkshire Hathaway purchased a stake in Snowflake (NYSE: SNOW) just before its IPO in 2020.
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Apple: 48.8% of Berkshire Hathaway's portfolio Berkshire Hathaway first bought shares of Apple (NASDAQ: AAPL) in 2016 and has continued to buy shares. Apple is also starting to invest heavily in the forefront of AI development: generative AI. Amazon: 0.4% of Berkshire Hathaway's portfolio Berkshire Hathaway owns 10 million shares of Amazon (NASDAQ: AMZN) after giving its position a slight trim last quarter.
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Apple: 48.8% of Berkshire Hathaway's portfolio Berkshire Hathaway first bought shares of Apple (NASDAQ: AAPL) in 2016 and has continued to buy shares. There's a lot for Buffett to like about Apple. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and Snowflake.
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12179.0
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2023-12-10 00:00:00 UTC
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Conspiracy theorist Alex Jones reinstated on X after Musk poll
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AAPL
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https://www.nasdaq.com/articles/conspiracy-theorist-alex-jones-reinstated-on-x-after-musk-poll
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nan
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By Mrinmay Dey and Jyoti Narayan
Dec 10 (Reuters) - Social media platform X, formerly known as Twitter,on Sunday showed the account of U.S. right-wing conspiracy theorist Alex Jones to have been reinstated as a poll organized by owner Elon Musk backed his return after a ban of nearly five years.
Close to 2 million votes were cast by the time the poll closed, with about 70% voting in favor of Jones' reinstatement.
"The people have spoken and so it shall be," Musk wrote in the reply to the poll that ended on Sunday.
Soon after reappearing on the platform, Jones' account began accumulating followers and currently has about 1 million. He has yet to post anything original, but has reposted two messages.
Jones' account with username "@RealAlexJones" now shows his last original post was on Sept. 6, 2018, the same day the social media platform's previous owners permanently banned his account and website Infowars, saying they had violated its behavior policies.
The ban came weeks after Apple AAPL.O, Alphabet's GOOGL.O YouTube and Facebook META.O took down podcasts and channels from Jones, citing community standards.
Reuters could not verify if X reinstated the Infowars account.
X and Infowars did not respond to a request asking for confirmation on Jones' account. Jones could not be immediately reached.
Right after Musk's takeover of Twitter, the social media platform implemented several modification, including changing its name and revisiting its policies. It also reinstated previously suspended accounts including that of former U.S. President Donald Trump.
The billionaire has since sought to reassure users and advertisers that such a decision would be made with the consideration of a content moderation council composed of people with "widely diverse viewpoints" and no account reinstatements would happen before the council convened.
Separately, Musk in November cursed out advertisers that have fled X over antisemitic content.
Several companies including Comcast CMCSA.O and Walt Disney DIS.N paused their advertisements on X after Musk agreed with a post that falsely claimed that Jewish people were stoking hatred against white people.
(Reporting by Jyoti Narayan and Mrinmay Dey in Bengaluru; Editing by Miral Fahmy, David Goodman, Louise Heavens and Mark Porter)
((Jyoti.Narayan@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The ban came weeks after Apple AAPL.O, Alphabet's GOOGL.O YouTube and Facebook META.O took down podcasts and channels from Jones, citing community standards. By Mrinmay Dey and Jyoti Narayan Dec 10 (Reuters) - Social media platform X, formerly known as Twitter,on Sunday showed the account of U.S. right-wing conspiracy theorist Alex Jones to have been reinstated as a poll organized by owner Elon Musk backed his return after a ban of nearly five years. Right after Musk's takeover of Twitter, the social media platform implemented several modification, including changing its name and revisiting its policies.
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The ban came weeks after Apple AAPL.O, Alphabet's GOOGL.O YouTube and Facebook META.O took down podcasts and channels from Jones, citing community standards. By Mrinmay Dey and Jyoti Narayan Dec 10 (Reuters) - Social media platform X, formerly known as Twitter,on Sunday showed the account of U.S. right-wing conspiracy theorist Alex Jones to have been reinstated as a poll organized by owner Elon Musk backed his return after a ban of nearly five years. Jones' account with username "@RealAlexJones" now shows his last original post was on Sept. 6, 2018, the same day the social media platform's previous owners permanently banned his account and website Infowars, saying they had violated its behavior policies.
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The ban came weeks after Apple AAPL.O, Alphabet's GOOGL.O YouTube and Facebook META.O took down podcasts and channels from Jones, citing community standards. By Mrinmay Dey and Jyoti Narayan Dec 10 (Reuters) - Social media platform X, formerly known as Twitter,on Sunday showed the account of U.S. right-wing conspiracy theorist Alex Jones to have been reinstated as a poll organized by owner Elon Musk backed his return after a ban of nearly five years. Jones' account with username "@RealAlexJones" now shows his last original post was on Sept. 6, 2018, the same day the social media platform's previous owners permanently banned his account and website Infowars, saying they had violated its behavior policies.
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The ban came weeks after Apple AAPL.O, Alphabet's GOOGL.O YouTube and Facebook META.O took down podcasts and channels from Jones, citing community standards. By Mrinmay Dey and Jyoti Narayan Dec 10 (Reuters) - Social media platform X, formerly known as Twitter,on Sunday showed the account of U.S. right-wing conspiracy theorist Alex Jones to have been reinstated as a poll organized by owner Elon Musk backed his return after a ban of nearly five years. Jones' account with username "@RealAlexJones" now shows his last original post was on Sept. 6, 2018, the same day the social media platform's previous owners permanently banned his account and website Infowars, saying they had violated its behavior policies.
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12180.0
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2023-12-10 00:00:00 UTC
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U.S. Money Supply Is Shrinking the Most Since the Great Depression. Does It Spell Doom for the Stock Market in 2024?
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AAPL
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https://www.nasdaq.com/articles/u.s.-money-supply-is-shrinking-the-most-since-the-great-depression.-does-it-spell-doom-for
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Predictions about how stocks will perform in the new year are already beginning to circulate. Some think the prospects should be good since the S&P 500 typically rises during U.S. presidential election years. Others foresee a mild recession on the way, which would likely cause stocks to fall.
But perhaps the most intriguing prognostications dive into especially arcane economic waters. Some point out (correctly) that the U.S. money supply is shrinking the most since the Great Depression. Does this spell doom for the stock market in 2024?
Image source: Getty Images.
Plunging money supply
Money supply is simply the total amount of money in circulation. The two most common ways to measure money supply are called M1 and M2. M1 is the total amount of money held by the public in cash, coins, and traveler's checks and in banks, regular savings accounts, and credit unions. M2 is M1 plus money held in short-term time deposits such as certificates of deposit (CDs) and in money market funds.
Economists closely track the money supply. And the U.S. money supply is indeed shrinking quite dramatically.
US M2 Money Supply YoY data by YCharts
The year-over-year change in M2 money supply is now negative for the first time in decades. But the chart shown above only goes back to the 1960s. The current U.S. money supply shrinkage reflects the steepest decline since the Great Depression of the 1930s.
Doom and gloom for 2024?
There are several implications for a shrinking U.S. money supply. Interest rates rise. Economic growth slows. Unemployment increases. If you think that none of those sound great for the U.S. economy or the stock market, you're right.
U.S. money supply has declined by 2% or more only four times since 1870 other than the current contraction. In each of those previous cases, a major U.S. economic downturn followed. It's understandable why some think that the current money supply shrinkage portends doom and gloom for the stock market in 2024.
However, such dire predictions could be dead wrong. Goldman Sachs economist Manual Abecasis wrote in a report earlier this year that measures such as M2 money supply haven't been reliable in forecasting what the economy will do for a long time. Things are different now, according to Abecasis, because of major changes that have reduced the demand for cash.
George Washington University economics professor Pao-Lin Tien is on the same page as Abecasis. He told Marketplace in June that the "connection between money stock [supply] and economic activity has been declining over time." Tien pointed out, "These days, very few of us carry cash."
The reality is that cash is no longer king. Physical currency has been replaced significantly by credit cards and digital payments such as Apple Pay, Cash App, and Venmo. Money supply still matters -- just not nearly as much as it once did.
This time it's different
So does the shrinking U.S. money supply spell doom for the stock market in 2024? I don't think so. I usually cringe when I hear the four words: "This time it's different." However, there's a good argument that this time truly is different than the past cases when the U.S. money supply contracted.
However, I wouldn't rule out the possibility that stocks could fall next year. There are plenty of other potential culprits that could cause the stock market to stumble. On the other hand, I won't be surprised if the market rises with continued economic growth, relatively mild unemployment, moderating inflation, and stable (or perhaps even lower) interest rates.
No one knows for sure whether 2024 will bring a boom or doom for stocks. The one prediction that I can make with confidence about the stock market is that it will go up -- over the long term.
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M1 is the total amount of money held by the public in cash, coins, and traveler's checks and in banks, regular savings accounts, and credit unions. Goldman Sachs economist Manual Abecasis wrote in a report earlier this year that measures such as M2 money supply haven't been reliable in forecasting what the economy will do for a long time. On the other hand, I won't be surprised if the market rises with continued economic growth, relatively mild unemployment, moderating inflation, and stable (or perhaps even lower) interest rates.
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The current U.S. money supply shrinkage reflects the steepest decline since the Great Depression of the 1930s. It's understandable why some think that the current money supply shrinkage portends doom and gloom for the stock market in 2024. This time it's different So does the shrinking U.S. money supply spell doom for the stock market in 2024?
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Plunging money supply Money supply is simply the total amount of money in circulation. It's understandable why some think that the current money supply shrinkage portends doom and gloom for the stock market in 2024. This time it's different So does the shrinking U.S. money supply spell doom for the stock market in 2024?
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Plunging money supply Money supply is simply the total amount of money in circulation. This time it's different So does the shrinking U.S. money supply spell doom for the stock market in 2024? On the other hand, I won't be surprised if the market rises with continued economic growth, relatively mild unemployment, moderating inflation, and stable (or perhaps even lower) interest rates.
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12181.0
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2023-12-10 00:00:00 UTC
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A Bull Market Is Coming: 3 Top Stocks to Buy Before the End of the Year
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AAPL
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https://www.nasdaq.com/articles/a-bull-market-is-coming%3A-3-top-stocks-to-buy-before-the-end-of-the-year
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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.
10 stocks we like better than Shopify
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Shopify wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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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.
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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.
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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.
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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.
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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.
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12182.0
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2023-12-10 00:00:00 UTC
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My Top Stock to Buy Before the End Of 2023 That Could Create Generational Wealth
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AAPL
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https://www.nasdaq.com/articles/my-top-stock-to-buy-before-the-end-of-2023-that-could-create-generational-wealth
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After passing $3 trillion in market cap on Dec. 5, Apple (NASDAQ: AAPL) stock is within 3% of its all-time high. Buying Apple decades ago produced unbelievable gains. But even more recent investors, like Warren Buffett-led Berkshire Hathaway, have seen market-crushing returns in a span of just seven years.
Once a company gets to a certain size, it can become difficult to support future growth. Going from a $1 trillion market cap to a $3 trillion market cap is one thing. Producing the same percentage gain by going from $3 trillion to $9 trillion is something we have never seen before and is hard to comprehend.
Apple stock may not triple anytime soon. But over time, it still has what it takes to build generational wealth. Here's why the tech stock is worth buying now.
Image source: Getty Images.
Digesting weak results
Apple is one of the few companies that can post weak results over the short term without damaging the investment thesis one bit -- especially if the weak results are a result of industrywide slowdowns and cyclical factors rather than a shift in perception about Apple's products and services or its brand.
AAPL Revenue (Annual) data by YCharts.
Apple's revenue, net income, and free cash flow all declined between fiscal 2022 and 2023. And yet, the stock is up about 50% year to date. You would be hard-pressed to find a company that grew by more than a trillion dollars in value in a single year despite posting negative growth. And yet, Apple stock still isn't that expensive, sporting a price-to-earnings ratio of 31.6.
Betting on the future
Apple's performance this year shows that the market expects the company to have no problem returning to growth. And there's reason to believe that Apple can become an even higher-quality business in the future thanks to the growth of its services segment.
Apple's services include Apple Pay, Apple TV+, Apple Podcasts, Apple Music, and more. Apple's services are higher-margin (typically around double the gross margin) than its physical products like an iPhone or other device. And they enhance the value of Apple's suite of products since many services are either free or relatively low-cost.
Services are a way for Apple to generate more sales from its core customer base. Expanding the depth of the ecosystem (through more services) and the breadth of the ecosystem (through more products) is a brilliant business model that should serve Apple well for decades to come.
The power of buybacks
Apple's ace in the hole for growing its earnings per share (EPS) no matter the market cycle is buybacks. Apple's relentless buyback program continues to generate value for shareholders. By reducing the outstanding share count, each share of Apple gets a higher percentage of earnings, which makes the stock a better value. Over time, buybacks can have a major impact on earnings.
For example, Apple has grown its net income by 145.5% over the last 10 years. But its diluted EPS is up 280.2% thanks to buybacks.
AAPL EPS Diluted (Annual) data by YCharts.
Over the last 10 years, buybacks have been just as important to Apple's EPS growth as the operations of the business have been.
Apple's deep pockets and dry powder act as a cushion in the event of a market sell-off. If Apple stock falls by quite a bit, Apple can take advantage of that volatility by swooping in and buying shares. If Apple stock goes on a big run like it did this year, Apple is still there to buy its own stock. Investors can be confident that Apple is by their side no matter what the market throws at them.
Apple's reliability makes it worth the price
When facing the prospect of investing in a stock like Apple that has been going up for so long and is currently around the highest it has ever been, it's a good idea to ask whether the company's growth is sustainable, if it's best days are behind it, and what is stopping the company from delivering market-beating returns in the future.
Apple has the market positioning and loyal customer base to avoid giving any ground to competition. It also has the cash flow to make acquisitions, accelerate its organic growth, and buy back its own stock to boost earnings per share. Growing its services business will improve Apple's overall margins and make it an even higher-quality business.
Out of all the big tech stocks, Apple stands out as having the lowest risk and maybe a potentially lower reward. But it also stands the best chance at producing generational wealth over time because of its wide moat and impeccable suite of products and services. Even with a higher-than-historic valuation, Apple stock is worth buying in December.
Should you invest $1,000 in Apple right now?
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*Stock Advisor returns as of December 7, 2023
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 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.
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After passing $3 trillion in market cap on Dec. 5, Apple (NASDAQ: AAPL) stock is within 3% of its all-time high. AAPL Revenue (Annual) data by YCharts. AAPL EPS Diluted (Annual) data by YCharts.
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After passing $3 trillion in market cap on Dec. 5, Apple (NASDAQ: AAPL) stock is within 3% of its all-time high. AAPL Revenue (Annual) data by YCharts. AAPL EPS Diluted (Annual) data by YCharts.
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After passing $3 trillion in market cap on Dec. 5, Apple (NASDAQ: AAPL) stock is within 3% of its all-time high. AAPL Revenue (Annual) data by YCharts. AAPL EPS Diluted (Annual) data by YCharts.
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After passing $3 trillion in market cap on Dec. 5, Apple (NASDAQ: AAPL) stock is within 3% of its all-time high. AAPL Revenue (Annual) data by YCharts. AAPL EPS Diluted (Annual) data by YCharts.
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12183.0
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2023-12-09 00:00:00 UTC
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3 Growth Stocks Primed for a 2024 Breakout
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AAPL
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https://www.nasdaq.com/articles/3-growth-stocks-primed-for-a-2024-breakout
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Growth stocks are back on the menu. The past year saw investors cycle portfolios through fixed-income offerings, dividend stocks, and value stocks in rapid succession. But renewed bullish sentiment, boosted by better-than-expected economic conditions, means investors are looking forward to a rate hike pause (if not outright cut) which bodes well for growth stocks in 2024.
Generally, if you want the best growth stock opportunity, look to small caps. The Russell 2000 didn’t perform as well as its large-cap cousin the S&P 500 this year as small-caps bore the brunt of bearish fear. But those same stocks could bounce back fastest as we cross into 2024. If you do want to hold a stabler growth stock, though, be careful — some of the top tech stocks are grossly overvalued, so balance prospects with pricing before pulling the trigger.
AST SpaceMobile (ASTS)
Source: Andrey Suslov / Shutterstock.com
AST SpaceMobile (NASDAQ:ASTS) is one growth stock priming itself early for a 2024 breakout. Shares surged 25% over the past month, though little new news came to the fore. Investors are simply very bullish on the prospects for this space stock.
The company marked a major milestone in September after completing, in conjunction with AT&T (NYSE:T), the world’s first satellite-enabled 5G call from unmodified cell phones. While mega-firms like SpaceX are making global Internet connectivity their space-based goal, AST SpaceMobile sets its sights on a more urgent and pressing need — reliable cell connectivity in remote and rural areas that doesn’t rely on pricy satphones.
That market, potential consumers too far from cell coverage, is more than 1 billion. That’s a massive market and one that AST SpaceMobile is aggressively targeting as one of the few space-based cell providers racing to market.
AST SpaceMobile plans to launch its first five commercial satellites in 2024. If all goes according to plan, this growth stock could go stratospheric.
RocketLab (RKLB)
Source: T. Schneider / Shutterstock.com
Space is set to be a $1 trillion industry, so it’s no wonder I’m including RocketLab (NASDAQ:RKLB) as another growth stock ready to rocket in 2024. The company’s projects mark a perfect blend of scientific research and commercial productization, setting itself up for a diverse client base and frequent launches.
This week, the firm inked a deal with the Korea Advance Institute of Science and Technology to send an observational research satellite into orbit. RocketLab’s 2024 launch docket is already full, and a successful year will set the growth stock up for stratospheric growth in 2024 and beyond.
The company’s stock dipped earlier in the year after its first satellite launch failure in more than two years. Shares trade at nearly half of pre-failure pricing, but there’s been little since then to explain the seemingly bearish sentiment. Investors looking for a moonshot stock should start accumulating now while it’s still cheap.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Apple (NASDAQ:AAPL) has strong staying power, making it a mature growth stock ready for a strong 2024. After hitting a $1 trillion market cap, per-share pricing remains largely unchanged. Considering the year’s volatility and reduced consumer confidence, coupled with calls of overvaluation, Apple’s stability bodes well for 2024.
Holiday sales mark an obvious benefit to Apple’s bottom line in the short term, but the company’s rapid penetration into Asian markets assures its staying power. Analyst Dan Ives shook off claims that Asian markets would falter this year, saying he’s seeing consistent demand and sales throughout China and elsewhere. Apple’s market share in this critical region consistently rose over the past few years, with 2023 as a slim exception, but the company holds just 16% of the total addressable market. This means there’s plenty of room for further upside for this growth stock.
Despite its steep price, analysts remain hot on Apple stock. 74% of polled analysts mark Apple as a Buy, with just one calling for investors to Sell. Consensus indicates per-share pricing fair value is closer to $200, so there’s still room for Apple to grow.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work.
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The post 3 Growth Stocks Primed for a 2024 Breakout 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.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) has strong staying power, making it a mature growth stock ready for a strong 2024. But renewed bullish sentiment, boosted by better-than-expected economic conditions, means investors are looking forward to a rate hike pause (if not outright cut) which bodes well for growth stocks in 2024. The company’s projects mark a perfect blend of scientific research and commercial productization, setting itself up for a diverse client base and frequent launches.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) has strong staying power, making it a mature growth stock ready for a strong 2024. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Growth stocks are back on the menu. AST SpaceMobile (ASTS) Source: Andrey Suslov / Shutterstock.com AST SpaceMobile (NASDAQ:ASTS) is one growth stock priming itself early for a 2024 breakout.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) has strong staying power, making it a mature growth stock ready for a strong 2024. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Growth stocks are back on the menu. AST SpaceMobile (ASTS) Source: Andrey Suslov / Shutterstock.com AST SpaceMobile (NASDAQ:ASTS) is one growth stock priming itself early for a 2024 breakout.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Apple (NASDAQ:AAPL) has strong staying power, making it a mature growth stock ready for a strong 2024. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Growth stocks are back on the menu. Investors are simply very bullish on the prospects for this space stock.
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2023-12-09 00:00:00 UTC
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3 Great Foreign Companies to Invest in Right Now
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AAPL
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https://www.nasdaq.com/articles/3-great-foreign-companies-to-invest-in-right-now-13
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Not all stocks traded on U.S. exchanges are actually U.S. companies. In fact, some of the most successful stocks on the market are foreign, but they see the U.S. as a place to raise funds and get exposure to another class of investor.
If you're looking for foreign companies to own, Spotify (NYSE: SPOT), MercadoLibre (NASDAQ: MELI), and Taiwan Semiconductor (NYSE: TSM) stand a cut above the rest.
1. Spotify
You probably know Spotify as the music streaming company, but it's becoming much more than that. It has invested heavily in podcasts over the past five years, and has now added audiobook time to premium subscriptions. Spotify is the business that wants to "own your ears," and that's what differentiates it from competitors like Apple and YouTube that have bigger businesses outside of music.
The user base is growing quickly, with premium subscribers up 16% in the third quarter of 2023 to 226 million and ad-supported subscribers growing 32% to 361 million. And that forms the base for both a growing premium business as well as an attractive advertising business, which is where Spotify's upside lies.
There aren't a lot of companies that can go head to head with Apple and come out on top, but Spotify has done that in both music and podcasts. And recent cost cuts could help drive rapid financial improvement in 2024.
2. MercadoLibre
Latin America is adopting both e-commerce and fintech products at a rapid rate, and MercadoLibre is leading the way in both. Over the past five years, the company has grown revenue 730%, and it's gone from breakeven to highly profitable in just the last two years.
MELI Revenue (TTM) data by YCharts
Like Amazon in the U.S., MercadoLibre has a large infrastructure lead over competitors in e-commerce, and its fintech products are both integrated with its e-commerce platform as well as built into other sellers.
The stock is expensive, with the enterprise value near 5 times sales and a price to earnings ratio of 49 times, but the growth and profitability are too good to ignore, and this is one of the best ways to play growth in Latin America long-term.
3. Taiwan Semiconductor
Semiconductors have become critical to the world, and Taiwan Semiconductor is arguably the most importer and manufacturer there is. It makes AI chips for NVIDIA and the chips inside iPhones and Macs -- even Intel is buying chips from Taiwan Semiconductor.
The beauty in Taiwan Semiconductor's business model is that it's a fabricator that isn't vertically integrated into designing and selling its own chips. It's just a third party manufacturing facility for other companies. This has allowed TSMC to build the most advanced manufacturing facilities in the world and spread the upfront cost across hundreds of customers.
It's hard to overstate how profitable this model is, but the net income approaching 50% of revenue that you see below gives an idea of how well the company is doing.
TSM Revenue (TTM) data by YCharts
This is one of the most important companies in the world, and investors are getting a reasonable value in the stock. Shares trade for 16x earnings and we are in a down cycle, so there's upside as more and more companies build custom chips for their tech products.
Great foreign companies you can buy in the U.S.
None of these companies are based in the U.S., but they tapped U.S. markets to go public, which is why you can buy shares. And with lots of exposure to international markets, they're great ways to get geographic diversity in your portfolio.
Find out why Spotify Technology is one of the 10 best stocks to buy now
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Alphabet, Apple, Intel, MercadoLibre, and Spotify Technology. The Motley Fool has positions in and recommends Alphabet, Apple, MercadoLibre, Spotify Technology, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 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.
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The beauty in Taiwan Semiconductor's business model is that it's a fabricator that isn't vertically integrated into designing and selling its own chips. This has allowed TSMC to build the most advanced manufacturing facilities in the world and spread the upfront cost across hundreds of customers. *Stock Advisor returns as of December 4, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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If you're looking for foreign companies to own, Spotify (NYSE: SPOT), MercadoLibre (NASDAQ: MELI), and Taiwan Semiconductor (NYSE: TSM) stand a cut above the rest. The Motley Fool has positions in and recommends Alphabet, Apple, MercadoLibre, Spotify Technology, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel.
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If you're looking for foreign companies to own, Spotify (NYSE: SPOT), MercadoLibre (NASDAQ: MELI), and Taiwan Semiconductor (NYSE: TSM) stand a cut above the rest. Great foreign companies you can buy in the U.S. None of these companies are based in the U.S., but they tapped U.S. markets to go public, which is why you can buy shares. The Motley Fool has positions in and recommends Alphabet, Apple, MercadoLibre, Spotify Technology, and Taiwan Semiconductor Manufacturing.
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MercadoLibre Latin America is adopting both e-commerce and fintech products at a rapid rate, and MercadoLibre is leading the way in both. TSM Revenue (TTM) data by YCharts This is one of the most important companies in the world, and investors are getting a reasonable value in the stock. The Motley Fool has positions in and recommends Alphabet, Apple, MercadoLibre, Spotify Technology, and Taiwan Semiconductor Manufacturing.
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12185.0
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2023-12-09 00:00:00 UTC
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This Is the Most Important AI Company You've Never Heard Of
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AAPL
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https://www.nasdaq.com/articles/this-is-the-most-important-ai-company-youve-never-heard-of
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nan
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nan
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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.
Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now?
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. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
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. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Apple. The Motley Fool has positions in and recommends 10x Genomics, Amazon, Apple, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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.
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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.
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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.
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In this video, Travis Hoium covers Taiwan Semiconductor's (NYSE: TSM) role in the industry and shows why it's one of the safer ways to play AI development today. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*. The Motley Fool has positions in and recommends 10x Genomics, Amazon, Apple, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing.
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12186.0
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2023-12-09 00:00:00 UTC
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5 No-Brainer Stocks to Buy Before 2024
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AAPL
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https://www.nasdaq.com/articles/5-no-brainer-stocks-to-buy-before-2024
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nan
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Right now, you may be preparing for more than the holidays. You might also be looking at your portfolio with the idea of getting it ready for the new year. It's impossible to predict which stocks will rise or fall or what direction the entire market will take, of course -- but there is one thing we can do to prepare for any situation. And that's add some high-quality stocks with solid track records and bright long-term prospects to our portfolios.
These players should serve you well over time, making them excellent choices for long-term investors -- and no-brainer buys before the new year. Let's check out five top stocks that could boost your portfolio next year and over the long run.
Image source: Getty Images.
1. Amazon
Amazon (NASDAQ: AMZN) is a winner in two high-growth markets: e-commerce and cloud computing. The company's leadership in those areas is set to last thanks to its investments and innovation. For example, in e-commerce, it's worked to make delivery faster and more efficient and to add benefits to its Prime subscription services. In cloud computing, it's invested in the hot growth area of artificial intelligence (AI) to serve clients eager to add AI to their latest projects.
The market giant also has a solid track record of growth, and after a recent tough spell due to the weak economic environment, Amazon showed it could manage difficult times too. In fact, Amazon chose this time to improve its cost structure -- and the efforts are bearing fruit. In the most recent quarter, the company reported gains across various financial metrics, from net sales to free cash flow.
Considering these elements, today, at 54 times forward earnings estimates, big-time growth stock Amazon looks cheap compared to its forward PE ratio of around 90 at the close of 2021.
2. Coca-Cola
One reason to love Coca-Cola (NYSE: KO) is its long track record of dividend growth. The world's largest non-alcoholic beverage maker is a Dividend King, meaning it's lifted its dividend for more than 50 consecutive years. Why is that important? Because it shows rewarding shareholders is central to Coca-Cola's strategy and it's likely to continue along this path.
Coca-Cola's $10 billion in free cash flow also shows it has what it takes to maintain passive income growth for its shareholders.
Though Coca-Cola's earnings may not increase in leaps and bounds like those of a younger and smaller company, you can count on slower -- but generally sure -- earnings growth over time. And Coca-Cola's brand strength has helped it to deliver these gains, even in challenging economic environments. In the most recent quarter, the beverage maker reported rising revenue and earnings per share -- and lifted full-year revenue guidance.
Today, Coca-Cola shares trade for 21 times forward earnings estimates, a bargain for all of these strengths you'll appreciate year after year.
3. Home Depot
Home Depot (NYSE: HD) isn't offering investors the same tremendous growth it did during the earlier days of the pandemic -- when consumers spent a lot of time at home and focused on home improvement projects there. Today, the company faces the headwinds of a tough housing market and higher interest rates. And that's weighed on growth.
But it's important to remember Home Depot increased revenue by $46 billion over the past three years, and the company has a long track record of earnings growth. So, today's slowdown is merely a pause -- and not a reason to flee shares of this market giant.
Home Depot generates sales from do-it-yourself customers as well as professionals, and the pros represent a significant growth opportunity over time -- with an addressable market of about $475 billion. And Home Depot has invested in gaining that market share through efforts such as creating a customized online platform and a special sales force.
Like Coca-Cola, Home Depot trades for a bargain basement 21 times forward earnings estimates.
4. Chewy
Pet parents like Chewy (NYSE: CHWY) -- and so should you, thanks to this young growth company's earnings progress so far. Last year, the e-commerce site for pet products reached profitability and has increased sales throughout this year.
Chewy also saw a double-digit increase in active customer spend in the most recent quarter -- and in spite of a difficult economic environment, Chewy's active customers only declined about 1%. And here's some good news for the long term: Chewy has expanded into Canada, a country it says has the market share and profit potential of the U.S. In more good news, Chewy could do this without a significant initial investment due to the strength of its existing platform. This could represent a huge catalyst for share performance down the road.
Chewy shares haven't reflected the company's progress so far or these extremely bright prospects; they've dropped about 48% this year, but don't let that scare you away. Instead, consider this a buying opportunity for an e-commerce company with significant long-term potential.
5. Apple
Apple's (NASDAQ: AAPL) brand strength makes it a stock you probably won't ever want to sell. The company's far from being a new kid on the block, yet its products continue to be favorites around the world -- and ones fans can't resist buying. This offers Apple pricing power, meaning it can easily lift prices without losing out on sales.
The technology and consumer goods giant can also count on another source of revenue -- and this one may just be getting started. I'm talking about services revenue. Apple offers a variety of them, from digital content to payment services, which generate recurring revenue for the company. In fact, thanks to more than 1 billion paid subscribers, Apple's services revenue reached a record in the most recent quarter.
You might expect to pay a fortune for such a stock, but Apple shares trade for only about 29 times forward earnings estimates right now. And this truly makes the market giant a no-brainer buy to add to your year-end shopping list.
Should you invest $1,000 in Amazon right now?
Before you buy stock in Amazon, 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 Amazon wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 7, 2023
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 and Home Depot. The Motley Fool has positions in and recommends Amazon, Apple, Chewy, and Home Depot. 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.
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Apple Apple's (NASDAQ: AAPL) brand strength makes it a stock you probably won't ever want to sell. The market giant also has a solid track record of growth, and after a recent tough spell due to the weak economic environment, Amazon showed it could manage difficult times too. But it's important to remember Home Depot increased revenue by $46 billion over the past three years, and the company has a long track record of earnings growth.
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Apple Apple's (NASDAQ: AAPL) brand strength makes it a stock you probably won't ever want to sell. The market giant also has a solid track record of growth, and after a recent tough spell due to the weak economic environment, Amazon showed it could manage difficult times too. In the most recent quarter, the beverage maker reported rising revenue and earnings per share -- and lifted full-year revenue guidance.
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Apple Apple's (NASDAQ: AAPL) brand strength makes it a stock you probably won't ever want to sell. Home Depot Home Depot (NYSE: HD) isn't offering investors the same tremendous growth it did during the earlier days of the pandemic -- when consumers spent a lot of time at home and focused on home improvement projects there. But it's important to remember Home Depot increased revenue by $46 billion over the past three years, and the company has a long track record of earnings growth.
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Apple Apple's (NASDAQ: AAPL) brand strength makes it a stock you probably won't ever want to sell. Today, Coca-Cola shares trade for 21 times forward earnings estimates, a bargain for all of these strengths you'll appreciate year after year. But it's important to remember Home Depot increased revenue by $46 billion over the past three years, and the company has a long track record of earnings growth.
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12187.0
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2023-12-08 00:00:00 UTC
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American Micro Devices Stock Spikes Thanks to Artificial Intelligence (AI), Yet There's More to the Story
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AAPL
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https://www.nasdaq.com/articles/american-micro-devices-stock-spikes-thanks-to-artificial-intelligence-ai-yet-theres-more
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nan
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nan
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In today's video, I discuss recent AI updates affecting Advanced Micro Devices (NASDAQ: AMD). Check out the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were the market prices of Dec. 7, 2023. The video was published on Dec. 7, 2023.
Should you invest $1,000 in Advanced Micro Devices right now?
Before you buy stock in Advanced Micro Devices, 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 Advanced Micro Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has nearly quadrupled the return of S&P 500 since 2002*.
See the 10 stocks
*Stock Advisor returns as of December 7, 2023
Jose Najarro has positions in Advanced Micro Devices, Nvidia, and Qualcomm. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Qualcomm. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel. The Motley Fool has a disclosure policy. Jose Najarro is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In today's video, I discuss recent AI updates affecting Advanced Micro Devices (NASDAQ: AMD). Check out the short video to learn more, consider subscribing, and click the special offer link below. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Qualcomm.
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Before you buy stock in Advanced Micro Devices, 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 Advanced Micro Devices wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Jose Najarro has positions in Advanced Micro Devices, Nvidia, and Qualcomm. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel.
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Before you buy stock in Advanced Micro Devices, 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 Advanced Micro Devices wasn't one of them. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Jose Najarro has positions in Advanced Micro Devices, Nvidia, and Qualcomm. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short February 2024 $47 calls on Intel.
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The Stock Advisor service has nearly quadrupled the return of S&P 500 since 2002*. See the 10 stocks *Stock Advisor returns as of December 7, 2023 Jose Najarro has positions in Advanced Micro Devices, Nvidia, and Qualcomm. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Nvidia, and Qualcomm.
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12188.0
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2023-12-08 00:00:00 UTC
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Apple (AAPL) Rises Higher Than Market: Key Facts
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-rises-higher-than-market%3A-key-facts-0
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nan
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nan
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Apple (AAPL) closed the latest trading day at $195.71, indicating a +0.74% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.41% for the day. Meanwhile, the Dow experienced a rise of 0.36%, and the technology-dominated Nasdaq saw an increase of 0.45%.
Shares of the maker of iPhones, iPads and other products have appreciated by 6.5% over the course of the past month, outperforming the Computer and Technology sector's gain of 5.9% and the S&P 500's gain of 4.91%.
Market participants will be closely following the financial results of Apple in its upcoming release. It is anticipated that the company will report an EPS of $2.08, marking a 10.64% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $117.31 billion, indicating a 0.13% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.56 per share and revenue of $393.42 billion, which would represent changes of +7.01% and +2.65%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Apple. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.22% upward. Apple currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Apple is presently being traded at a Forward P/E ratio of 29.6. This indicates a premium in contrast to its industry's Forward P/E of 11.72.
Also, we should mention that AAPL has a PEG ratio of 2.68. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Mini computers industry had an average PEG ratio of 2.68 as trading concluded yesterday.
The Computer - Mini computers industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
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.
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Apple (AAPL) closed the latest trading day at $195.71, indicating a +0.74% change from the previous session's end. Also, we should mention that AAPL has a PEG ratio of 2.68. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Apple (AAPL) closed the latest trading day at $195.71, indicating a +0.74% change from the previous session's end. Also, we should mention that AAPL has a PEG ratio of 2.68. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Apple (AAPL) closed the latest trading day at $195.71, indicating a +0.74% change from the previous session's end. Also, we should mention that AAPL has a PEG ratio of 2.68. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Apple (AAPL) closed the latest trading day at $195.71, indicating a +0.74% change from the previous session's end. Also, we should mention that AAPL has a PEG ratio of 2.68. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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12189.0
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2023-12-08 00:00:00 UTC
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Just 3 of the "Magnificent Seven" Have Outperformed the S&P 500 Since 2022. Here's the One I'd Buy for 2024 and 2025.
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AAPL
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https://www.nasdaq.com/articles/just-3-of-the-magnificent-seven-have-outperformed-the-sp-500-since-2022.-heres-the-one-id
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nan
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nan
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The S&P 500 has produced a total return of over 20% for investors in 2023, but that growth has come almost entirely from just a handful of stocks.
The "Magnificent Seven" -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META) and Tesla (NASDAQ: TSLA) -- have produced market-trouncing returns in 2023. And since they all have massive market caps, they have had an outsize impact on the cap-weighted S&P 500 index.
But just three of those seven have produced returns exceeding the S&P 500's total return (a 1% loss) since the start of last year. The other four have all lost more money for investors than a simple S&P 500 index fund.
Here are the three outperformers and the one stock I would buy for outperformance in 2024 and 2025.
"Magnificent Seven" total return vs S&P 500; data by YCharts.
Nvidia: 54.9% total return since Jan. 1, 2022
Nvidia is by far the best-performer of the Magnificent Seven since the start of 2022.
That's thanks almost entirely to its 2023 performance. The stock's price was cut in half in 2022, down more than 60% at one point. But shares have rocketed back in 2023, up more than 200% since the start of the year.
The big growth driver behind Nvidia has been surging demand for artificial intelligence (AI). Its graphics processing units (GPUs) are essential hardware for training advanced AI algorithms responsible for generative AI applications like OpenAI's ChatGPT or Dall-E.
Nvidia tripled its revenue in its most recent quarter, and management expects it to grow even faster in the current quarter. And with the premium pricing it's demanding for its data center AI chips, it's seeing gross margin expand as well.
That said, the market expectations are extremely high for Nvidia. A single misstep, product setback, or new competitor could send the share price tumbling. So while it could continue to outperform over the next two years, it's not getting my money.
Microsoft: 12.2% total return since Jan. 1, 2022
Microsoft's 12.2% total return since the start of 2022 is good for the second-best performance among the Magnificent Seven. But the bulk of that outperformance didn't happen until recently. In fact, Microsoft has outperformed the S&P 500 by 11.6% since Sept. 28.
AI has been the big story for the company in 2023 as well. After increasing its investment in leading generative-AI developer OpenAI at the start of the year, Microsoft Azure positioned itself as the leading cloud platform for other AI developers. That has resulted in strong growth for Azure relative to competing providers like Alphabet's Google Cloud and Amazon Web Services (AWS).
Microsoft has also developed its own generative AI solution for enterprises called Copilot, which can help sales teams, software developers, and health professionals by using AI to improve workflows. It sees just about everyone using Copilot in the workplace eventually. Considering the company's existing position as the leading enterprise software provider, it's in a great position to sell Copilot (at $30 a month per seat).
Despite recently hitting an all-time high, I believe the stock remains attractive. Still, it's not my favorite of the Magnificent Seven.
Apple: 8.2% total return since Jan. 1, 2022
Apple was the best-performing stock of the Magnificent Seven in 2022, despite underperforming the S&P 500 by more than 8 percentage points. So, despite being the weakest performer of the group in 2023 so far, it still earned its place as an overall outperformer since the start of last year.
Apple's stock has performed well despite its falling revenue this year. Its total revenue declined 2.8% for the fiscal year ended in September, and revenue fell in each quarter of the year.
Nonetheless, Apple showed strength in its earnings per share (EPS) thanks in part to its expanding profit margins from a shift toward more service revenue and its robust share-repurchase program. EPS grew 13% last quarter despite the decline in revenue.
With signs of a recovery in smartphone sales growth, Apple is poised to see a return to revenue growth and faster earnings growth. What's more, the company is investing heavily in artificial intelligence and could benefit from demand for on-device AI applications that keep users' data private and secure.
The stock is attractive, even at a relatively high price-to-earnings ratio. That's because its share repurchase program and ample cash reserves justify the high price investors will have to pay today to own its shares.
But there's one stock I like even more than Apple.
The Magnificent Seven stock most likely to outperform in 2024 and 2025
If I could only buy one of the Magnificent Seven, it would be Alphabet.
The Google parent company underperformed the S&P 500 by more than 8.5 percentage points since the start of 2022, besting only Amazon and Tesla in the group. And despite a 47% run in the stock price since the start of 2023, shares still look undervalued.
Google stands to benefit from a reacceleration in digital advertising spending. While Meta has seen its revenue growth top 20% again and its margins balloon, Google hasn't quite kept pace. I expect it to close that gap as it invests in AI tools to improve discovery on YouTube and facilitate advertising in the same way Meta did.
What's more, Google Cloud stands to be one of the main beneficiaries of continued investments in AI among enterprise customers. While it'll compete with Amazon and Microsoft for customers, it's not a winner-take-all market. All three should see benefits.
With Alphabet's shares currently trading for less than 20 times analysts' consensus 2024 earnings estimate, the stock is a bargain. That's especially true considering expectations for earnings growth of nearly 20% over the next five years. While many of the Magnificent Seven still look attractive at today's prices, Alphabet is the best of the bunch.
10 stocks we like better than Alphabet
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Alphabet wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adam Levy has positions in Alphabet, Amazon, Apple, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The "Magnificent Seven" -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META) and Tesla (NASDAQ: TSLA) -- have produced market-trouncing returns in 2023. That has resulted in strong growth for Azure relative to competing providers like Alphabet's Google Cloud and Amazon Web Services (AWS). Nonetheless, Apple showed strength in its earnings per share (EPS) thanks in part to its expanding profit margins from a shift toward more service revenue and its robust share-repurchase program.
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The "Magnificent Seven" -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META) and Tesla (NASDAQ: TSLA) -- have produced market-trouncing returns in 2023. After increasing its investment in leading generative-AI developer OpenAI at the start of the year, Microsoft Azure positioned itself as the leading cloud platform for other AI developers. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla.
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The "Magnificent Seven" -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META) and Tesla (NASDAQ: TSLA) -- have produced market-trouncing returns in 2023. Microsoft: 12.2% total return since Jan. 1, 2022 Microsoft's 12.2% total return since the start of 2022 is good for the second-best performance among the Magnificent Seven. See the 10 stocks *Stock Advisor returns as of December 4, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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The "Magnificent Seven" -- Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META) and Tesla (NASDAQ: TSLA) -- have produced market-trouncing returns in 2023. But there's one stock I like even more than Apple. The Magnificent Seven stock most likely to outperform in 2024 and 2025 If I could only buy one of the Magnificent Seven, it would be Alphabet.
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12190.0
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2023-12-08 00:00:00 UTC
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Apple's iPhone and watch design head to depart in February - Bloomberg News
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AAPL
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https://www.nasdaq.com/articles/apples-iphone-and-watch-design-head-to-depart-in-february-bloomberg-news
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nan
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nan
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Recasts paragraph 1, adds background on executive departures in paragraph 2, details from report throughout
Dec 8 (Reuters) - The Apple AAPL.O executive leading design for the iPhone and smartwatch, Tang Tan, is leaving the company in February, Bloomberg News reported on Friday, citing people with knowledge of the matter.
This marks the second departure of an iPhone executive after Bloomberg News reported on Dec. 6, that Steve Hotelling who oversaw iPhone screen and touch ID technology that transformed the way iPhones feel and function is leaving.
The departure of Tan, who is vice president of product design at Apple, will come with a slew of elevated roles for some deputies, the report added.
Apple did not immediately respond to a Reuters request for comment.
Richard Dinh, head of iPhone product design will report directly to John Ternus who is senior vice president of hardware engineering, according to the report.
Bloomberg also reported that Kate Bergeron, a hardware engineering executive responsible for Mac teams, is taking over the design of the Apple Watch.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shailesh Kuber)
((ArsheeyaSingh.Bajwa@thomsonreuters.com; +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.
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Recasts paragraph 1, adds background on executive departures in paragraph 2, details from report throughout Dec 8 (Reuters) - The Apple AAPL.O executive leading design for the iPhone and smartwatch, Tang Tan, is leaving the company in February, Bloomberg News reported on Friday, citing people with knowledge of the matter. The departure of Tan, who is vice president of product design at Apple, will come with a slew of elevated roles for some deputies, the report added. Bloomberg also reported that Kate Bergeron, a hardware engineering executive responsible for Mac teams, is taking over the design of the Apple Watch.
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Recasts paragraph 1, adds background on executive departures in paragraph 2, details from report throughout Dec 8 (Reuters) - The Apple AAPL.O executive leading design for the iPhone and smartwatch, Tang Tan, is leaving the company in February, Bloomberg News reported on Friday, citing people with knowledge of the matter. This marks the second departure of an iPhone executive after Bloomberg News reported on Dec. 6, that Steve Hotelling who oversaw iPhone screen and touch ID technology that transformed the way iPhones feel and function is leaving. The departure of Tan, who is vice president of product design at Apple, will come with a slew of elevated roles for some deputies, the report added.
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Recasts paragraph 1, adds background on executive departures in paragraph 2, details from report throughout Dec 8 (Reuters) - The Apple AAPL.O executive leading design for the iPhone and smartwatch, Tang Tan, is leaving the company in February, Bloomberg News reported on Friday, citing people with knowledge of the matter. This marks the second departure of an iPhone executive after Bloomberg News reported on Dec. 6, that Steve Hotelling who oversaw iPhone screen and touch ID technology that transformed the way iPhones feel and function is leaving. Richard Dinh, head of iPhone product design will report directly to John Ternus who is senior vice president of hardware engineering, according to the report.
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Recasts paragraph 1, adds background on executive departures in paragraph 2, details from report throughout Dec 8 (Reuters) - The Apple AAPL.O executive leading design for the iPhone and smartwatch, Tang Tan, is leaving the company in February, Bloomberg News reported on Friday, citing people with knowledge of the matter. This marks the second departure of an iPhone executive after Bloomberg News reported on Dec. 6, that Steve Hotelling who oversaw iPhone screen and touch ID technology that transformed the way iPhones feel and function is leaving. Richard Dinh, head of iPhone product design will report directly to John Ternus who is senior vice president of hardware engineering, according to the report.
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12191.0
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2023-12-08 00:00:00 UTC
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Best Stock to Buy: Apple vs. Shopify
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AAPL
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https://www.nasdaq.com/articles/best-stock-to-buy%3A-apple-vs.-shopify
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nan
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nan
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Electronics giant Apple (NASDAQ: AAPL) and e-commerce platform Shopify (NYSE: SHOP) have been big winners over the past five years. They've returned 355% and 387%, respectively, easily outperforming the stock market by a ratio of roughly 4-to-1. That shouldn't be a surprise. Some 2 billion people use Apple's iOS devices, and Shopify's e-commerce platform has helped online shopping become a way of life in modern society.
But that was then. You want to know about the future. Can both stocks keep their momentum up? And which is the better stock to own now? Let's take a closer look.
How much are investors paying for cash profits?
Apple and Shopify have little in common. One company makes and sells personal electronics; the other is a software company with a platform that helps merchants sell things online. However, free cash flow is the common trait that links all companies.
AAPL Free Cash Flow Yield data by YCharts
Cash is the blood and oxygen circulating through a company, arguably the most important thing investors want to see. The critical question is: How can you invest your money to generate as much cash flow in return as possible? A company producing increasing cash flow will grow earnings, repurchase shares, pay dividends, or invest in growing the business -- all good things!
Apple and Shopify generate cash flow although Apple's massive size stands out. It generates more free cash flow in a year than what Shopify's entire company is worth. But there's more to it. Investors should look at how much cash flow their money is buying.
Apple stock is offering just over $0.03 of cash flow for every dollar of market cap at its current share price. That's a free-cash-flow yield of 3.3%. Shopify offers much less, a yield of just 0.5%. Off the jump, Apple stock is offering more bang for your buck.
Adding some color to this picture
But context is important because investors must also understand the dynamics around each company. Is there a reason investors aren't paying more for a piece of Apple's cash profits? A closer look reveals that Apple's become so big that it's struggling to grow.
According to analyst estimates, Apple's annual revenue growth could average 3% to 7% for the next three years, and earnings could compound at 8% to 10%. Shopify has higher expectations; revenue could grow 20% annually, and earnings could compound at more than 30%.
Long story short, people pay a premium for Shopify because the company is growing more rapidly. Apple may be arguably the most influential company on Earth, but it's also massive and might not produce the stellar investment results it once did.
What's the verdict?
If everything else were equal, investors would be wiser to take the faster-growing company in Shopify. The above discussion highlighted that. However, the price you pay for a stock matters.
Shopify's 0.5% cash-flow yield is low enough to be problematic. Even if the company's cash flow doubles yearly, it would take several years to come close to what Apple offers today. In other words, the market could be overpaying for Shopify's growth.
That huge value gap is why investors should consider Apple the better stock to buy until Shopify's valuation becomes more reasonable. Apple may have slower growth, but it's proven remarkably durable, and its nearly $100 billion in annual free cash flow is a war chest for creating shareholder value. That can enhance Apple's organic growth, a button Shopify can't currently press.
Ultimately, both stocks are great investments at the right price, but Apple holds the edge today.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of December 4, 2023
Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Shopify. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Electronics giant Apple (NASDAQ: AAPL) and e-commerce platform Shopify (NYSE: SHOP) have been big winners over the past five years. AAPL Free Cash Flow Yield data by YCharts Cash is the blood and oxygen circulating through a company, arguably the most important thing investors want to see. Some 2 billion people use Apple's iOS devices, and Shopify's e-commerce platform has helped online shopping become a way of life in modern society.
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Electronics giant Apple (NASDAQ: AAPL) and e-commerce platform Shopify (NYSE: SHOP) have been big winners over the past five years. AAPL Free Cash Flow Yield data by YCharts Cash is the blood and oxygen circulating through a company, arguably the most important thing investors want to see. Some 2 billion people use Apple's iOS devices, and Shopify's e-commerce platform has helped online shopping become a way of life in modern society.
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Electronics giant Apple (NASDAQ: AAPL) and e-commerce platform Shopify (NYSE: SHOP) have been big winners over the past five years. AAPL Free Cash Flow Yield data by YCharts Cash is the blood and oxygen circulating through a company, arguably the most important thing investors want to see. Apple and Shopify generate cash flow although Apple's massive size stands out.
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AAPL Free Cash Flow Yield data by YCharts Cash is the blood and oxygen circulating through a company, arguably the most important thing investors want to see. Electronics giant Apple (NASDAQ: AAPL) and e-commerce platform Shopify (NYSE: SHOP) have been big winners over the past five years. And which is the better stock to own now?
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12192.0
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2023-12-08 00:00:00 UTC
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3 Warren Buffett Stocks You Can Buy in December and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/3-warren-buffett-stocks-you-can-buy-in-december-and-hold-forever
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nan
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nan
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Warren Buffett is arguably the world's most famous investor today. His reputation comes from decades of success in the stock market. He's leaned on a simple philosophy of buying and holding stocks in wonderful companies.
There is no shame in taking some notes from Warren Buffett and peeking at his holding company, Berkshire Hathaway, for inspiration for your investment strategy.
Here are three Buffett stocks you can buy this month and hold for the long term.
This stock is almost half of Berkshire Hathaway's portfolio
Buffett has a decades-long investing career. Ironically, he made one of his best investments within the past several years. Berkshire Hathaway began scooping up shares of Apple (NASDAQ: AAPL) in early 2016. Since then, Berkshire's investment in the iPhone maker has grown to nearly half its entire portfolio.
Apple has become a dominant smartphone and personal electronics company, with more than 2 billion active device users who purchase apps, accessories, and subscription services within Apple's ecosystem. Buffett has acknowledged that the ecosystem and how much users depend on these devices, picking up their iPhones dozens of times daily, are reasons he liked the company.
He also likes Apple's tendency for large share repurchases. Apple generates a staggering $100 billion in annual free cash flow and has spent billions of dollars lowering its share count by almost 38% this decade. Fewer shares mean that each existing share represents more of the company and its profits -- it often raises the share price over time, too.
Buffett has owned this stock for over 30 years
An estimated 96% of Americans know the Coca-Cola (NYSE: KO) brand. Since the company sells to over 200 countries, it's probably realistic that most people on Earth know the brand, too. Coca-Cola's worldwide reach spans many sodas, water, juices, teas, and coffee brands. Nearly two dozen Coca-Cola brands have over $1 billion in annual sales.
Beverages are a great business because people are always thirsty, and there's so much variety in the industry that a giant player like Coca-Cola can steadily grow almost endlessly as it develops new products, acquires emerging brands, and grows with the general population.
The company's durable business model has made it a remarkable dividend stock. Coca-Cola has paid and raised its dividend for 61 consecutive years through recessions, wars, and ups and downs. Buffett's stake in Coca-Cola is worth 6.5% of Berkshire Hathaway's portfolio today, its fourth-largest position. The dividends from those shares added up to $700 million last year, so investors can buy Coca-Cola and begin their own dividend machine.
The growth stock Buffett nearly missed
Buffett is human, which means sometimes even he misses out on an investment. E-commerce giant Amazon (NASDAQ: AMZN) is one example. The stock is one of Wall Street's best all-time investments, returning more than 147,000% over its lifetime.
Fortunately, Buffett has since corrected that mistake. Berkshire now owns a cool 10 million shares, about 0.4% of Berkshire's portfolio.
Amazon has been an excellent investment because the company has maintained a culture of steady innovation. It started selling books online, and today, it sells nearly 40% of all e-commerce in America. Instead of sitting on its success, Amazon launched a cloud platform, AWS, and grew it into the world's leader. Amazon is still investing and building advertising, media, and artificial intelligence businesses.
Investors can buy the stock today because there is still tread left on Amazon's core e-commerce and cloud segments. These existing segments have room to grow for years to come. However, knowing Amazon, new growth opportunities will be added to the mix over time.
10 stocks we like better than Apple
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Apple wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, and Berkshire Hathaway. 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.
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Berkshire Hathaway began scooping up shares of Apple (NASDAQ: AAPL) in early 2016. There is no shame in taking some notes from Warren Buffett and peeking at his holding company, Berkshire Hathaway, for inspiration for your investment strategy. Buffett has acknowledged that the ecosystem and how much users depend on these devices, picking up their iPhones dozens of times daily, are reasons he liked the company.
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Berkshire Hathaway began scooping up shares of Apple (NASDAQ: AAPL) in early 2016. The dividends from those shares added up to $700 million last year, so investors can buy Coca-Cola and begin their own dividend machine. The growth stock Buffett nearly missed Buffett is human, which means sometimes even he misses out on an investment.
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Berkshire Hathaway began scooping up shares of Apple (NASDAQ: AAPL) in early 2016. This stock is almost half of Berkshire Hathaway's portfolio Buffett has a decades-long investing career. The growth stock Buffett nearly missed Buffett is human, which means sometimes even he misses out on an investment.
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Berkshire Hathaway began scooping up shares of Apple (NASDAQ: AAPL) in early 2016. The dividends from those shares added up to $700 million last year, so investors can buy Coca-Cola and begin their own dividend machine. Investors can buy the stock today because there is still tread left on Amazon's core e-commerce and cloud segments.
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12193.0
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2023-12-08 00:00:00 UTC
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Validea Detailed Fundamental Analysis - AAPL
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AAPL
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https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-aapl-11
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nan
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nan
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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
Top NASDAQ 100 Stocks
Top Technology Stocks
Top Large-Cap Growth Stocks
High Momentum Stocks
High Insider Ownership Stocks
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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.
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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.
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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.
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Of the 22 guru strategies we follow, AAPL rates highest using our Twin Momentum Investor model based on the published strategy of Dashan Huang. Below is Validea's guru fundamental report for APPLE INC (AAPL). APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry.
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12194.0
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2023-12-08 00:00:00 UTC
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2 Unbelievable Tech Growth Stocks to Buy and Hold for the Long Haul
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AAPL
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https://www.nasdaq.com/articles/2-unbelievable-tech-growth-stocks-to-buy-and-hold-for-the-long-haul
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nan
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nan
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Investors might still be waiting for a prolonged bull market, but that doesn't mean it's a bad time to buy tech stocks or that you should stick to the sidelines. If you have cash to invest -- money that you don't need for bills or other near-term financial commitments -- there are plenty of intriguing companies that look ripe for the picking.
Stock prices remain volatile across a range of sectors. It's important to look beyond price and at the underlying business before you press the buy button, to make sure that the company fits with your basket of investments as well as your preferred risk profile.
On that note, here are two stocks to consider adding to your buy list that could make you richer in 2024 and well beyond.
1. Shopify
Shopify (NYSE: SHOP) has processed $812 billion in global commerce since its inception, but this business still has a tremendous runway to explore within the multitrillion-dollar e-commerce space.
As one of the leading companies providing the software, hardware, tools, and solutions that merchants need to start, scale, and build businesses both online and offline across a range of industries, the need for Shopify's family of platforms isn't easing.
Over the last few years, growth has slowed considerably from where it was in the early days of the pandemic. Realistically, that was to be expected. Investors who scooped up shares of Shopify in those pandemic days and held on to them through the period that followed likely experienced some significant gains followed by bearish volatility.
However, for the long-term investor, what matters is whether it's a business that can sustain meaningful growth over a period of years, rather than a few quarters of unbelievable gains that would be hard to replicate over a prolonged time.
Despite the fluctuations in consumer spending and the broader economy that is still posing difficulty for businesses like Shopify's, this e-commerce giant is harvesting cash, profits are growing, and revenue is steadily on the upswing.
In the first nine months of 2023, the company brought in revenue of nearly $5 billion, a 27% increase from the same period in 2023. It was not profitable when looking at that nine-month period, but in the third quarter, it did turn back to profitability of $718 million under generally accepted accounting principles (GAAP). Shopify reported cash from operating activities of approximately $500 million in the first three quarters of 2023.
That nine-month period also saw Shopify bring in total free cash flow of about $460 million. From mom-and-pop shops to large brands, the uses for its products and services are only growing. Still, the company estimates that it has only penetrated about 10% of U.S. e-commerce. That's a growth story that long-term investors might want to capitalize on now and in the years to come.
2. Apple
Apple (NASDAQ: AAPL) is one of the most talked-about stocks, but the value case for this investment has continued to grow and expand through the years.
With market-leading hardware products and a growing collection of subscription-based services that now account for the second-largest slice of its revenue and profits, Apple has proven it can innovate through economic thick and thin while rewarding investors in the process.
As a long-term investor, you should be looking at any business with a minimum holding period of five years, preferably longer. So, let's look at how Apple has performed over the trailing-five-year period.
Over that time, annual revenue has grown by about 50%, while net income has grown about 76%. Even though its 0.5% yield is considerably less than the average stock trading on the S&P 500 (where it's around 2%), that dividend has increased by 163% over the past five years. In total, the stock has delivered a return of 350% in that time frame.
Even though consumer spending is still in flux, iPhone sales -- which still account for the largest portion of Apple's top and bottom lines -- reached a new record in the most recent quarter, which included the new iPhone 15. The company also just released its first carbon-neutral Apple Watch.
The company is slowly but surely balancing out its reliance on sales of hardware products with recurring sales of its services like Apple TV+, Apple Music, and Apple News+. Of its total revenue of close to $90 billion in the most recent quarter, $44 billion was derived from iPhone sales and $22 billion came from its services segment.
This is a business you can buy and add to again and again through the years, which is no small feat in any market environment.
10 stocks we like better than Shopify
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Shopify wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 4, 2023
Rachel Warren has positions in Apple and Shopify. The Motley Fool has positions in and recommends Apple and Shopify. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) is one of the most talked-about stocks, but the value case for this investment has continued to grow and expand through the years. As one of the leading companies providing the software, hardware, tools, and solutions that merchants need to start, scale, and build businesses both online and offline across a range of industries, the need for Shopify's family of platforms isn't easing. Despite the fluctuations in consumer spending and the broader economy that is still posing difficulty for businesses like Shopify's, this e-commerce giant is harvesting cash, profits are growing, and revenue is steadily on the upswing.
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Apple Apple (NASDAQ: AAPL) is one of the most talked-about stocks, but the value case for this investment has continued to grow and expand through the years. The company is slowly but surely balancing out its reliance on sales of hardware products with recurring sales of its services like Apple TV+, Apple Music, and Apple News+. Of its total revenue of close to $90 billion in the most recent quarter, $44 billion was derived from iPhone sales and $22 billion came from its services segment.
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Apple Apple (NASDAQ: AAPL) is one of the most talked-about stocks, but the value case for this investment has continued to grow and expand through the years. The company is slowly but surely balancing out its reliance on sales of hardware products with recurring sales of its services like Apple TV+, Apple Music, and Apple News+. See the 10 stocks *Stock Advisor returns as of December 4, 2023 Rachel Warren has positions in Apple and Shopify.
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Apple Apple (NASDAQ: AAPL) is one of the most talked-about stocks, but the value case for this investment has continued to grow and expand through the years. The company is slowly but surely balancing out its reliance on sales of hardware products with recurring sales of its services like Apple TV+, Apple Music, and Apple News+. That's right -- they think these 10 stocks are even better buys.
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12195.0
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2023-12-08 00:00:00 UTC
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79% of Warren Buffett's $363 Billion Portfolio Is Invested in Just 6 Stocks
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AAPL
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https://www.nasdaq.com/articles/79-of-warren-buffetts-%24363-billion-portfolio-is-invested-in-just-6-stocks
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nan
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nan
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For a span of nearly six decades, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been wowing Wall Street with his investing prowess. Despite being just as fallible as any other investor, the Oracle of Omaha and his team have overseen a nearly 20% annualized return since the mid-1960s. On an aggregate basis, we're talking about a gain for the company's Class A shares (BRK.A) of almost 4,400,000% since Buffett took over.
What's made this outperformance so incredible is that Buffett and his investment team, including the late Charlie Munger, have stuck to old-school principles to make their shareholders meaningfully richer for more than a half-century. They've predominantly invested in time-tested, brand-name companies with well-defined competitive advantages and strong management teams.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
But perhaps most important, the Oracle of Omaha and his team strongly believe in portfolio concentration. This is to say that an outsize percentage of invested assets should be put to work in their top investment ideas.
As of the closing bell on Dec. 1, 2023, 79% -- $286.3 billion -- of the $363 billion investment portfolio overseen at Berkshire Hathaway by Warren Buffett was invested in just six stocks.
1. Apple: $175,091,767,454 (48.2% of invested assets)
The largest holding in Berkshire Hathaway's portfolio, tech stock Apple (NASDAQ: AAPL), leaves no shred of doubt that the Oracle of Omaha prefers to concentrate his company's invested assets in his and his teams' top ideas. Apple accounts for almost half of Berkshire's invested assets.
What's made Apple such a popular investment is its cutting-edge innovation, which is led by the iPhone. Even though Apple wasn't the first company to introduce a 5G-capable smartphone, it quickly gobbled up more than half of U.S. smartphone market share once a 5G-capable iPhone hit stores during the fourth quarter of 2020.
Arguably even more exciting is Apple's ongoing shift to a subscription-driven platform. To be clear, it's not giving up on the physical products (iPhone, Mac, and iPad) that brought it fame. Rather, it's evolving as a company to support various services that'll further enhance its operating margin, drive improved customer loyalty, and smooth out the revenue fluctuations that typically accompany major iPhone replacement cycles.
For Buffett, Apple's biggest selling point might just be its market-leading capital-return program. Apple is dishing out $15 billion in dividends to its shareholders each year, and it's repurchased more than $600 billion worth of its common stock since the beginning of 2013.
2. Bank of America: $31,977,098,106 (8.8% of invested assets)
If there's a sector Buffett is an expert on among all others, it's financials. He's an especially big fan of bank stocks, which benefit from disproportionately long periods of economic expansion. This is one reason why Bank of America (NYSE: BAC) accounts for nearly 9% of Berkshire's $363 billion of invested assets.
The factor that really helps Bank of America stand out from other U.S. money-center banks is its interest rate sensitivity. Changes in interest rates impact BofA's net interest income more so than any other big bank. With the Federal Reserve increasing the federal funds rate by 525 basis points since March 2022, Bank of America has seen its net interest income climb by billions of dollars every quarter, compared to where things stood a few years ago.
In addition to taking advantage of a higher-rate environment, BofA's technology investments are paying off. As of the end of September, 74% of its consumers were actively banking online or via mobile app, with a notable uptick in loan sales completed digitally, compared to prior to the COVID-19 pandemic. Digital transactions are considerably cheaper for banks than in-person interactions.
Bank of America is cheap, too. It can be scooped up right now for 5% below its book value and is doling out a market-topping 3.1% yield.
3. American Express: $26,343,875,232 (7.3% of invested assets)
It's a fairly similar story for the No. 3 holding, credit services provider American Express (NYSE: AXP). Since recessions are short-lived, companies reliant on merchant fees and interest income tend to disproportionately benefit from long-winded expansions.
The proverbial ace in the hole for Amex is that it's able to play both sides of a transaction. It's the third-largest payment processor in the U.S., based on credit card network purchase volume, and is also able to collect annual fees and interest income from its cardholders (consumers and businesses). Being able to double-dip can really lift American Express' bottom line during periods of robust economic growth.
Something else working in Amex's favor is its propensity to attract high-earning cardholders. People with higher incomes are less likely to alter their spending habits when inflation rises or an economic downturn takes shape. In other words, American Express' clients are more likely to continue paying their bills. In theory, this should help Amex better navigate challenging economic climates.
Patience has also paid off for Buffett. Berkshire Hathaway has an exceptionally low cost basis of approximately $8.49 per share on Amex. Based on Amex's base dividend of $2.40 per share, Buffett's company is enjoying a hearty 28.3% annual yield on cost.
Image source: Coca-Cola.
4. Coca-Cola: $23,456,000,000 (6.5% of invested assets)
No company has been a continuous holding in Berkshire Hathaway's portfolio longer than beverage stock Coca-Cola (NYSE: KO) -- since 1988. Coca-Cola has also increased its base annual dividend for 61 consecutive years (and counting), and it's netting Buffett's company a jaw-dropping 56.7% yield on cost.
The lure of Coca-Cola is that it's a consumer staples company. Consumers are going to buy food and beverages no matter how well or poorly the U.S. or global economy perform. Coca-Cola itself has more than two dozen brands generating at least $1 billion in annual sales. This translates to highly predictable sales and operating cash flow for the company in any economic climate.
To add to the above, Coca-Cola is operating in all but three countries (North Korea, Cuba, and Russia). Having such globally diverse operations allows it to generate steady cash flow in developed countries, while relying on faster organic growth rates in emerging markets.
Credit should be given to Coca-Cola's top-notch marketing, too. It's successfully reaching new generations of consumers with digital ad campaigns, yet has had no trouble maintaining its engagement with more mature audiences via well-known brand ambassadors.
5. Chevron: $15,965,054,730 (4.4% of invested assets)
Prior to the start of the decade, energy stocks were mostly an afterthought for the Oracle of Omaha and his investment team. But that's changed in a big way, as evidenced by the nearly $16 billion that's currently being put to work in integrated oil and gas stock Chevron (NYSE: CVX).
An investment of this magnitude is a pretty clear indication that Berkshire's brightest minds believe the spot price of crude oil will head higher, or at the very least remain well above its historic norm. Russia's ongoing war with Ukraine, coupled with years of capital underinvestment from energy companies due to pandemic-related uncertainty, has led to tight supply in the global oil market. As long as supply remains somewhat constrained, there's reason to believe the spot price for crude oil will be elevated.
Although Chevron generates its juiciest margins from its drilling operations, it's also able to hedge weakness in crude pricing with its other segments. For instance, Chevron's downstream refineries and chemical plants will enjoy lower input costs if the spot price of crude oil declines. This added cash flow can help Chevron weather any short-lived turbulence.
Big oil companies are known for their hefty capital return programs as well. Earlier this year, Chevron's board OK'd an up to $75 billion share repurchase program, which came on the heels of the company's 36th consecutive annual dividend increase.
Higher West Texas Intermediate crude oil prices have been a boon for Occidental Petroleum. WTI Crude Oil Spot Price data by YCharts.
6. Occidental Petroleum: $13,416,241,918 (3.7% of invested assets)
The sixth stock that, along with Apple, BofA, Amex, Coca-Cola, and Chevron, collectively accounts for 79% of the portfolio Buffett oversees at Berkshire Hathaway is yet another oil and gas stock, Occidental Petroleum (NYSE: OXY).
The Oracle of Omaha and his team have dived headfirst into Occidental common stock since the start of 2022. More than 228 million shares have been purchased, which comes atop the preferred stock yielding 8% annually that Berkshire has owned in Occidental Petroleum since 2019.
Though the catalysts for Occidental Petroleum mirror those of Chevron, there are two key differences between these two oil and gas companies. The first can be found with their balance sheets. Whereas Chevron has one of the lowest debt-to-equity ratios among major oil and gas companies, Occidental is still mired in debt following its purchase of Anadarko in 2019. It'll need energy commodity prices to remain elevated in order to continue improving its financial flexibility.
The other big difference between Chevron and Occidental is the latter's reliance on drilling. Although both are integrated operators (Occidental operates chemical plants), Occidental Petroleum generates an outsize percentage of its revenue and operating cash flow from its drilling operations, when compared to Chevron. If the spot price for crude rises, Occidental should disproportionately benefit. But the opposite is also true: A declining spot price for crude oil will hurt Occidental's cash flow more than most drillers.
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American Express and Bank of America are advertising partners of The Ascent, a Motley Fool company. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Bank of America, and Berkshire Hathaway. The Motley Fool recommends Chevron and Occidental Petroleum and recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple: $175,091,767,454 (48.2% of invested assets) The largest holding in Berkshire Hathaway's portfolio, tech stock Apple (NASDAQ: AAPL), leaves no shred of doubt that the Oracle of Omaha prefers to concentrate his company's invested assets in his and his teams' top ideas. What's made this outperformance so incredible is that Buffett and his investment team, including the late Charlie Munger, have stuck to old-school principles to make their shareholders meaningfully richer for more than a half-century. Rather, it's evolving as a company to support various services that'll further enhance its operating margin, drive improved customer loyalty, and smooth out the revenue fluctuations that typically accompany major iPhone replacement cycles.
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Apple: $175,091,767,454 (48.2% of invested assets) The largest holding in Berkshire Hathaway's portfolio, tech stock Apple (NASDAQ: AAPL), leaves no shred of doubt that the Oracle of Omaha prefers to concentrate his company's invested assets in his and his teams' top ideas. Coca-Cola: $23,456,000,000 (6.5% of invested assets) No company has been a continuous holding in Berkshire Hathaway's portfolio longer than beverage stock Coca-Cola (NYSE: KO) -- since 1988. Occidental Petroleum: $13,416,241,918 (3.7% of invested assets) The sixth stock that, along with Apple, BofA, Amex, Coca-Cola, and Chevron, collectively accounts for 79% of the portfolio Buffett oversees at Berkshire Hathaway is yet another oil and gas stock, Occidental Petroleum (NYSE: OXY).
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Apple: $175,091,767,454 (48.2% of invested assets) The largest holding in Berkshire Hathaway's portfolio, tech stock Apple (NASDAQ: AAPL), leaves no shred of doubt that the Oracle of Omaha prefers to concentrate his company's invested assets in his and his teams' top ideas. Coca-Cola: $23,456,000,000 (6.5% of invested assets) No company has been a continuous holding in Berkshire Hathaway's portfolio longer than beverage stock Coca-Cola (NYSE: KO) -- since 1988. Occidental Petroleum: $13,416,241,918 (3.7% of invested assets) The sixth stock that, along with Apple, BofA, Amex, Coca-Cola, and Chevron, collectively accounts for 79% of the portfolio Buffett oversees at Berkshire Hathaway is yet another oil and gas stock, Occidental Petroleum (NYSE: OXY).
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Apple: $175,091,767,454 (48.2% of invested assets) The largest holding in Berkshire Hathaway's portfolio, tech stock Apple (NASDAQ: AAPL), leaves no shred of doubt that the Oracle of Omaha prefers to concentrate his company's invested assets in his and his teams' top ideas. Occidental Petroleum: $13,416,241,918 (3.7% of invested assets) The sixth stock that, along with Apple, BofA, Amex, Coca-Cola, and Chevron, collectively accounts for 79% of the portfolio Buffett oversees at Berkshire Hathaway is yet another oil and gas stock, Occidental Petroleum (NYSE: OXY). Although both are integrated operators (Occidental operates chemical plants), Occidental Petroleum generates an outsize percentage of its revenue and operating cash flow from its drilling operations, when compared to Chevron.
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12196.0
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2023-12-08 00:00:00 UTC
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Tata Plans New IPhone Assembly Plant In India
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AAPL
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https://www.nasdaq.com/articles/tata-plans-new-iphone-assembly-plant-in-india
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nan
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nan
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(RTTNews) - Indian conglomerate Tata Group is planning to construct a new assembly plant for Apple Inc.'s iPhones in India, Blommberg reported. The move is said to be inline with the tech major's strategy to expand its manufacturing activities beyond China, to India, which is one of its largest emerging market.
The new plant, deemed to be one of India's largest iPhone assembly plants, will be built in Hosur, located in the southern state of Tamil Nadu.
The facility is anticipated to accommodate around 20 assembly lines, and to employ around 50,000 workers within the next two years. The site is likely to be operational within 12-18 months.
Tata already has a facility in Hosur, where it manufactures iPhone enclosures.
Apple, has been eyeing to localise its supply chain and diversify operations away from China amid increased tensions between the US and China. With the latest move, the company aims to strengthen its collaboration with Tata, which already owns an iPhone factory in the nearby state of Karnataka that was acquired from Wistron Corp.
Apple has also engaged in partnerships in India, Thailand, Malaysia, and other locations.
Foxconn, Apple's key iPhone assembler and supplier with major operations in China, has been moving some manufacturing and supply chains out of China. It already started building multiple factory sites across India, including one in Telangana and another in Karnataka state.
Foxconn, which operates the world's biggest iPhone factory in the Zhengzhou city, called iPhone City, already manufactures iPhones at its Sriperumbudur factory on the outskirts of Chennai, India.
In the prior year, Apple assembled over $7 billion worth of iPhones in India, who's share in the device's production now stands at around 7%.
As per a recent report from the Wall Street Journal, Apple and its suppliers aim to manufacture over 50 million iPhones annually in India over the next two to three years. In the following periods, tens of millions of additional units will be produced.
While announcing its fourth-quarter results, Apple Chief Financial Officer Luca Maestri in October had stated that India reported very strong double-digit growth and a new all-time revenue record. The company is seeing very strong double-digit growth in places like India.
In India, Apple recently opened two stores with plans for three more. Meanwhile, Tata recently announced plans to launch 100 retail stores focused on Apple products.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Indian conglomerate Tata Group is planning to construct a new assembly plant for Apple Inc.'s iPhones in India, Blommberg reported. With the latest move, the company aims to strengthen its collaboration with Tata, which already owns an iPhone factory in the nearby state of Karnataka that was acquired from Wistron Corp. Apple has also engaged in partnerships in India, Thailand, Malaysia, and other locations. While announcing its fourth-quarter results, Apple Chief Financial Officer Luca Maestri in October had stated that India reported very strong double-digit growth and a new all-time revenue record.
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The new plant, deemed to be one of India's largest iPhone assembly plants, will be built in Hosur, located in the southern state of Tamil Nadu. Foxconn, Apple's key iPhone assembler and supplier with major operations in China, has been moving some manufacturing and supply chains out of China. Foxconn, which operates the world's biggest iPhone factory in the Zhengzhou city, called iPhone City, already manufactures iPhones at its Sriperumbudur factory on the outskirts of Chennai, India.
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With the latest move, the company aims to strengthen its collaboration with Tata, which already owns an iPhone factory in the nearby state of Karnataka that was acquired from Wistron Corp. Apple has also engaged in partnerships in India, Thailand, Malaysia, and other locations. Foxconn, Apple's key iPhone assembler and supplier with major operations in China, has been moving some manufacturing and supply chains out of China. Foxconn, which operates the world's biggest iPhone factory in the Zhengzhou city, called iPhone City, already manufactures iPhones at its Sriperumbudur factory on the outskirts of Chennai, India.
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Foxconn, Apple's key iPhone assembler and supplier with major operations in China, has been moving some manufacturing and supply chains out of China. It already started building multiple factory sites across India, including one in Telangana and another in Karnataka state. As per a recent report from the Wall Street Journal, Apple and its suppliers aim to manufacture over 50 million iPhones annually in India over the next two to three years.
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12197.0
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2023-12-08 00:00:00 UTC
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Apple to move key iPad engineering resources to Vietnam- Nikkei
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AAPL
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https://www.nasdaq.com/articles/apple-to-move-key-ipad-engineering-resources-to-vietnam-nikkei
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nan
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nan
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Adds details from the report throughout
Dec 8 (Reuters) - Apple is allocating product development resources for iPad to Vietnam, Nikkei reported on Friday, citing sources briefed on the matter.
Apple is working with China's BYD 002594.SZ, a key iPad assembler, to move new product introduction (NPI) resources to Vietnam, the report said, adding that this is the first time the company has shifted NPI resources to Vietnam for such a core device.
Engineering verification for test production of an iPad model will start around mid-February and the model will be available in the second half of next year, it said.
Apple and BYD did not immediately respond to Reuters' request for comment.
Apple suppliers including Luxshare and Foxconn also invested in the Southeast Asian country earlier this year to further diversify production away from China.
(Reporting by Shivani Tanna in Bengaluru; Editing by Rashmi Aich)
((ShivaniJayesh.Tanna@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from the report throughout Dec 8 (Reuters) - Apple is allocating product development resources for iPad to Vietnam, Nikkei reported on Friday, citing sources briefed on the matter. Apple is working with China's BYD 002594.SZ, a key iPad assembler, to move new product introduction (NPI) resources to Vietnam, the report said, adding that this is the first time the company has shifted NPI resources to Vietnam for such a core device. Apple suppliers including Luxshare and Foxconn also invested in the Southeast Asian country earlier this year to further diversify production away from China.
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Adds details from the report throughout Dec 8 (Reuters) - Apple is allocating product development resources for iPad to Vietnam, Nikkei reported on Friday, citing sources briefed on the matter. Apple is working with China's BYD 002594.SZ, a key iPad assembler, to move new product introduction (NPI) resources to Vietnam, the report said, adding that this is the first time the company has shifted NPI resources to Vietnam for such a core device. Engineering verification for test production of an iPad model will start around mid-February and the model will be available in the second half of next year, it said.
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Adds details from the report throughout Dec 8 (Reuters) - Apple is allocating product development resources for iPad to Vietnam, Nikkei reported on Friday, citing sources briefed on the matter. Apple is working with China's BYD 002594.SZ, a key iPad assembler, to move new product introduction (NPI) resources to Vietnam, the report said, adding that this is the first time the company has shifted NPI resources to Vietnam for such a core device. (Reporting by Shivani Tanna in Bengaluru; Editing by Rashmi Aich) ((ShivaniJayesh.Tanna@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details from the report throughout Dec 8 (Reuters) - Apple is allocating product development resources for iPad to Vietnam, Nikkei reported on Friday, citing sources briefed on the matter. Apple is working with China's BYD 002594.SZ, a key iPad assembler, to move new product introduction (NPI) resources to Vietnam, the report said, adding that this is the first time the company has shifted NPI resources to Vietnam for such a core device. Engineering verification for test production of an iPad model will start around mid-February and the model will be available in the second half of next year, it said.
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12198.0
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2023-12-08 00:00:00 UTC
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Hundreds still stranded, plants closed in India's flood-hit Chennai
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AAPL
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https://www.nasdaq.com/articles/hundreds-still-stranded-plants-closed-in-indias-flood-hit-chennai
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nan
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nan
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By Praveen Paramasivam
CHENNAI, Dec 8 (Reuters) - Volunteers waded through stagnant water to hand out food and supplies, and some manufacturing plants remained shut in India's southern tech-and-auto hub district of Chennai on Friday, four days after cyclone Michaung lashed the coast.
At least 14 people, most of them in Chennai and its state of Tamil Nadu, have died in the flooding, triggered by torrential rains that started on Monday.
The cyclone itself made landfall further north in Andhra Pradesh state on Tuesday afternoon.
Authorities said some low-lying areas of the state were still inundated and government officials and volunteers were taking supplies to people stuck in their homes in slums and other areas.
The larger Chennai area is home to the Indian units of several global firms including Hyundai Motor 005380.KS, Daimler and Taiwan’s Foxconn 2317.TW and Pegatron 4938.TW which do contract manufacturing for Apple AAPL.O.
While many of them including Pegatron and Foxconn resumed operations within a day or two of the cyclone making landfall, some plants of the TVS group located in the worst-affected areas are yet to open, industry sources said.
AdaniKrishnapatnam Port APSE.NS in Andhra Pradesh, said on Friday the cyclone had "very badly affected" its operations and it was declaring a force majeure period starting Dec. 3.
Force majeure is a notice used to describe events outside a company's control, such as a natural disaster, which usually releases it from contractual obligation without penalty.
State-run Madras FertilizersMDFT.NSnotified stock exchanges that its Chennai plant has been shut and is tentatively expected to resume operations within two to four weeks.
INFRASTRUCTURE QUESTIONED
Information technology (IT) services providers told staff to work from home for the week, while schools and colleges closed. A few schools and colleges were converted into temporary shelters.
This week's floods in Chennai brought back memories of the extensive damage caused by floods eight years ago which killed around 290 people.
In Andhra Pradesh, the damage from the cyclone was relatively contained, with roads damaged and trees uprooted as big waves crashed into the coast.
Defence Minister Rajnath Singh visited Chennai on Thursday and announced New Delhi will release a second instalment of 4.5 billion rupees ($54 million) to Tamil Nadu to help manage the damage. The federal government has also approved a 5.6 billion-rupee project for flood management in Chennai, he said.
Chennai residents questioned the ability of the city's infrastructure to handle extreme weather.
"Not only has urbanisation itself caused a problem, but the nature of the urbanisation has preyed upon open spaces, holding areas like marshlands and flood plains," social activist Nityanand Jayaraman said.
Experts have, however, said better stormwater drainage systems would not have been able to prevent the flooding caused by very heavy and extremely heavy rains.
"This solution would have helped a lot in moderate and heavy rainfall, but not in very heavy and extremely heavy rains," Raj Bhagat P, a civil engineer and geo-analytics expert, said on Wednesday.
($1 = 83.3720 Indian rupees)
(Additional reporting by Rama Venkat in Bengaluru; Editing by YP Rajesh and Andrew Heavens)
((praveen.paramasivam@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The larger Chennai area is home to the Indian units of several global firms including Hyundai Motor 005380.KS, Daimler and Taiwan’s Foxconn 2317.TW and Pegatron 4938.TW which do contract manufacturing for Apple AAPL.O. While many of them including Pegatron and Foxconn resumed operations within a day or two of the cyclone making landfall, some plants of the TVS group located in the worst-affected areas are yet to open, industry sources said. Defence Minister Rajnath Singh visited Chennai on Thursday and announced New Delhi will release a second instalment of 4.5 billion rupees ($54 million) to Tamil Nadu to help manage the damage.
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The larger Chennai area is home to the Indian units of several global firms including Hyundai Motor 005380.KS, Daimler and Taiwan’s Foxconn 2317.TW and Pegatron 4938.TW which do contract manufacturing for Apple AAPL.O. While many of them including Pegatron and Foxconn resumed operations within a day or two of the cyclone making landfall, some plants of the TVS group located in the worst-affected areas are yet to open, industry sources said. Experts have, however, said better stormwater drainage systems would not have been able to prevent the flooding caused by very heavy and extremely heavy rains.
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The larger Chennai area is home to the Indian units of several global firms including Hyundai Motor 005380.KS, Daimler and Taiwan’s Foxconn 2317.TW and Pegatron 4938.TW which do contract manufacturing for Apple AAPL.O. By Praveen Paramasivam CHENNAI, Dec 8 (Reuters) - Volunteers waded through stagnant water to hand out food and supplies, and some manufacturing plants remained shut in India's southern tech-and-auto hub district of Chennai on Friday, four days after cyclone Michaung lashed the coast. At least 14 people, most of them in Chennai and its state of Tamil Nadu, have died in the flooding, triggered by torrential rains that started on Monday.
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The larger Chennai area is home to the Indian units of several global firms including Hyundai Motor 005380.KS, Daimler and Taiwan’s Foxconn 2317.TW and Pegatron 4938.TW which do contract manufacturing for Apple AAPL.O. At least 14 people, most of them in Chennai and its state of Tamil Nadu, have died in the flooding, triggered by torrential rains that started on Monday. While many of them including Pegatron and Foxconn resumed operations within a day or two of the cyclone making landfall, some plants of the TVS group located in the worst-affected areas are yet to open, industry sources said.
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12199.0
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2023-12-07 00:00:00 UTC
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US STOCKS-Nasdaq ends sharply higher as Alphabet and AMD fuel AI surge
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AAPL
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https://www.nasdaq.com/articles/us-stocks-nasdaq-ends-sharply-higher-as-alphabet-and-amd-fuel-ai-surge
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nan
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nan
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(Updated at 4:10 p.m. ET/ 2110 GMT)
*
Investors cheer Alphabet's new AI model
*
Advanced Micro Devices climbs after AI-chip market
forecast
*
Weekly jobless claims lower than expected
*
Indexes: S&P 500 +0.80%, Nasdaq +1.37%, Dow +0.18%
*
By Noel Randewich and Shristi Achar A
Dec 7 (Reuters) - The Nasdaq ended sharply higher on
Thursday after Alphabet and Advanced Micro Devices sparked a
megacap rally on fresh optimism about artificial intelligence.
Shares of Alphabet jumped 5.3% as analysts cheered
the launch of the Google-parent's newest AI model, while AMD
soared nearly 10% after the company estimated the potential
market for its data center AI chips could reach $45 billion this
year.
Other heavyweight tech-related stocks also gained, with
Nvidia and Meta Platforms rising over 2%,
Amazon up 1.6% and Apple 1% higher.
The Philadelphia semiconductor index <.SOX> jumped 2.8%,
increasing its 2023 gain to 48%, much of that fueled by bets
about the future of AI.
"Today it's an AMD-Google rally. There's a contagion effect
across the market. Everyone wants to get on the bandwagon," said
Jay Hatfield, CEO of Infrastructure Capital Management in New
York.
"We're kind of in this weird market, a tag-team market,
where one day tech leads, and then the next day value and the
broad market lead."
The S&P 500 <.SPX> has steadily climbed since the end of
October on expectations the Federal Reserve has finished its
campaign of interest rate hikes and that it could begin cutting
rates in March.
The S&P 500 climbed 0.80% to end the session at 4,585.59
points, with 1.8 stocks in the index gaining for each one that
fell.
The most traded stock in the S&P 500 was Tesla ,
with $25.7 billion worth of shares changing hands during the
session. The shares rose 1.37%.
The Nasdaq Composite <.IXIC> jumped 1.37% to 14,339.99
points, while Dow Jones Industrial Average <.DJI> rose 0.18% to
36,117.57 points.
Volume on U.S. exchanges was relatively heavy, with 11.2
billion shares traded, compared to an average of 10.8 billion
shares over the previous 20 sessions.
Traders have almost fully priced in the likelihood of the
Fed keeping rates unchanged at its meeting next week.
Data on Thursday showed the number of Americans filing new
claims for unemployment benefits increased less than expected
last week to a seasonally adjusted 220,000 for the week.
A Labor Department jobs report due on Friday could hint at
how quickly the U.S. economy is softening and may sway
expectations about when the Fed is likely to begin cutting
rates. Non-farm payrolls are expected to have increased by
180,000 jobs last month after rising by 150,000 in October.
Interest rate futures imply a nearly 64% chance of a rate
cut as soon as March, according to the CME Group's FedWatch
tool.
Limiting gains in the Dow, shares of Merck fell 1.7%
after the drugmaker's immunotherapy combination failed in a lung
cancer study.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Chips vs S&P 500 over past 24 months https://tmsnrt.rs/489vb2b
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Amruta Khandekar and Shristi Achar A in Bangalore
and by Noel Randewich in Oakland, Calif.; Editing by Saumyadeb
Chakrabarty, Anil D'Silva and Richard Chang)
((noel.randewich@tr.com))
Keywords: USA STOCKS/ (UPDATE 7)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Noel Randewich and Shristi Achar A Dec 7 (Reuters) - The Nasdaq ended sharply higher on Thursday after Alphabet and Advanced Micro Devices sparked a megacap rally on fresh optimism about artificial intelligence. A Labor Department jobs report due on Friday could hint at how quickly the U.S. economy is softening and may sway expectations about when the Fed is likely to begin cutting rates. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Chips vs S&P 500 over past 24 months https://tmsnrt.rs/489vb2b ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Amruta Khandekar and Shristi Achar A in Bangalore and by Noel Randewich in Oakland, Calif.; Editing by Saumyadeb Chakrabarty, Anil D'Silva and Richard Chang) ((noel.randewich@tr.com))
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By Noel Randewich and Shristi Achar A Dec 7 (Reuters) - The Nasdaq ended sharply higher on Thursday after Alphabet and Advanced Micro Devices sparked a megacap rally on fresh optimism about artificial intelligence. The S&P 500 climbed 0.80% to end the session at 4,585.59 points, with 1.8 stocks in the index gaining for each one that fell. The Nasdaq Composite <.IXIC> jumped 1.37% to 14,339.99 points, while Dow Jones Industrial Average <.DJI> rose 0.18% to 36,117.57 points.
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By Noel Randewich and Shristi Achar A Dec 7 (Reuters) - The Nasdaq ended sharply higher on Thursday after Alphabet and Advanced Micro Devices sparked a megacap rally on fresh optimism about artificial intelligence. Shares of Alphabet jumped 5.3% as analysts cheered the launch of the Google-parent's newest AI model, while AMD soared nearly 10% after the company estimated the potential market for its data center AI chips could reach $45 billion this year. The S&P 500 <.SPX> has steadily climbed since the end of October on expectations the Federal Reserve has finished its campaign of interest rate hikes and that it could begin cutting rates in March.
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By Noel Randewich and Shristi Achar A Dec 7 (Reuters) - The Nasdaq ended sharply higher on Thursday after Alphabet and Advanced Micro Devices sparked a megacap rally on fresh optimism about artificial intelligence. The S&P 500 climbed 0.80% to end the session at 4,585.59 points, with 1.8 stocks in the index gaining for each one that fell. Data on Thursday showed the number of Americans filing new claims for unemployment benefits increased less than expected last week to a seasonally adjusted 220,000 for the week.
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