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12300.0
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2023-12-02 00:00:00 UTC
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What TSMC, Amkor, and Samsung Investors Should Know About Recent Semiconductor Manufacturing Updates
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AAPL
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https://www.nasdaq.com/articles/what-tsmc-amkor-and-samsung-investors-should-know-about-recent-semiconductor-manufacturing
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nan
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nan
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In today's video, I discuss recent updates impacting Taiwan Semiconductor Manufacturing (NYSE: TSM), Amkor Technology (NASDAQ: AMKR), and Samsung. 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. 1, 2023. The video was published on Dec. 1, 2023.
10 stocks we like better than Taiwan Semiconductor Manufacturing
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 Taiwan Semiconductor Manufacturing 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
Jose Najarro has positions in Qualcomm and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple, Qualcomm, and Taiwan Semiconductor Manufacturing. 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 updates impacting Taiwan Semiconductor Manufacturing (NYSE: TSM), Amkor Technology (NASDAQ: AMKR), and Samsung. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Taiwan Semiconductor Manufacturing wasn't one of them! The Motley Fool has positions in and recommends Apple, Qualcomm, and Taiwan Semiconductor Manufacturing.
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After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Jose Najarro has positions in Qualcomm and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple, Qualcomm, and Taiwan Semiconductor Manufacturing.
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10 stocks we like better than Taiwan Semiconductor Manufacturing When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Jose Najarro has positions in Qualcomm and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple, Qualcomm, and Taiwan Semiconductor Manufacturing.
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Check out the short video to learn more, consider subscribing, and click the special offer link below. See the 10 stocks *Stock Advisor returns as of November 29, 2023 Jose Najarro has positions in Qualcomm and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
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12301.0
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2023-12-02 00:00:00 UTC
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Surprise! Warren Buffett Has Bet Over $176 Billion in 3 Artificial Intelligence (AI) Growth Stocks
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AAPL
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https://www.nasdaq.com/articles/surprise-warren-buffett-has-bet-over-%24176-billion-in-3-artificial-intelligence-ai-growth
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nan
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nan
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Over the years, Berkshire Hathaway CEO Warren Buffett has made no bones about his difficulty understanding some of the world's latest technological innovations. The legendary investor had for years avoided technology stocks, saying he prefers "simple businesses," stating categorically, "If there's lots of technology, we won't understand it."
Despite those assertions, over the past few years, Buffett has accumulated a fortune in stocks on the cutting edge of artificial intelligence (AI).
Image source: The Motley Fool.
1. Apple -- $174 billion
Anyone who has followed Berkshire Hathaway won't be surprised to find that the company's most sizable AI stock holding is Apple (NASDAQ: AAPL). When including the shares held by subsidiary New England Asset Management (NEAM), Buffett's stake in Apple amounts to more than 915 million shares, worth roughly $174 billion.
Apple has long been at the forefront of AI technology. The company integrated its virtual digital assistant Siri into the iPhone 4S in 2011. That was the first of a long line of AI-driven features infused into the iPhone, supported by the Apple Neural Engine. This sophisticated neural processing unit (NPU) resides on the device, supporting all manner of AI functionality.
This includes the Face ID technology used to unlock the iPhone, the language recognition and processing that helps Siri better interact with users over time, and the image processor that helps improve photo quality in the camera. Many of Apple's health and safety features are also supported by AI, including the Apple Watch's fall detection, crash detection, and electrocardiogram (ECG) functionality.
While Apple has kept its generative AI aspirations close to the vest, CEO Tim Cook said on the company's third-quarterearnings call "We view AI and machine learning as core fundamental technologies that are integral to virtually every product that we build." He went on to say, "We've been doing research across a wide range of AI technologies, including generative AI for years."
Apple has published a number of job postings this year for those with expertise in the field of generative AI. The company's history suggests Apple won't reveal its plans for using this technology until it's already deeply embedded in an as-yet-to-be-released product.
2. Amazon -- $1.47 billion
Berkshire Hathaway also holds a considerable stake in e-commerce denizen Amazon (NASDAQ: AMZN), though Buffett himself didn't initiate the purchase. The company holds 10 million shares, currently valued at nearly $1.47 billion.
Buffett said he's long been a fan and "always admired Jeff [Bezos]," Amazon's former CEO. In his usual self-deprecating manner, however, Buffett also admitted he should have invested in the company long ago, but didn't because "If I think something is going to be a miracle, I tend not to bet on it."
Amazon is a longtime innovator in the field of AI. The company has developed algorithms to recommend products, forecast demand, operate its fulfillment and logistics warehouses, and map out product delivery routes. The company also offers machine learning and generative AI tools via its industry-leading Amazon Web Services (AWS) cloud infrastructure service.
Amazon also pioneered an array of products infused with Alexa, its AI-driven virtual assistant. CEO Andy Jassy recently admitted the company is "investing heavily" in the large language models that form the foundation for generative AI.
3. Snowflake -- $1.05 billion
Data cloud and analytics provider Snowflake (NYSE: SNOW) is the last in Berkshire's trio of sizable AI holdings. In fact, Berkshire invested in the company even before its initial public offering (IPO), in a move instigated by Buffett lieutenant Todd Combs, who purchased more than 6 million shares, currently valued at roughly $1.05 billion. Combs is also CEO of wholly owned Berkshire Hathaway subsidiary GEICO, which is a longtime customer of Snowflake's data warehouse services.
According to Snowflake, its platform was "built from the ground up to support machine learning and AI-driven data science applications." The company also says it helps businesses "apply AI to make better decisions, improve productivity, and reach more customers." Most recently, Snowflake added support for the large language models that underpin the major generative AI systems. This allows users to deploy these systems directly within their Snowflake accounts.
Is it time to buy?
Buffett hasn't minced words about his love of Apple stock. At Berkshire's 2023 shareholder meeting in May, he said, "[Apple] just happens to be a better business than any we own." The iPhone continues to gain converts, controlling an estimated 60% share of the premium smartphone market for the second consecutive quarter, according to data compiled by Counterpoint Research. Add to that the company's consistent services growth and superior cash-flow generation, and it's easy to see why Apple is a Buffett favorite. Furthermore, at just 31 times earnings, Apple is selling at a discount to its historical valuation.
While Amazon experienced a fall from grace during the downturn, the company has seen its e-commerce business rebound. And despite last year's challenges, the company continued to control roughly 38% of the market in the U.S., more than the next 14 rivals combined. It's also the acknowledged leader of cloud infrastructure services, though competition continues to ramp up. Finally, it's the world's No. 3 provider of digital advertising services, behind just Alphabet's Google and Meta Platforms. And at just 2 times forward sales, Amazon is the cheapest of the bunch.
The riskiest of the three is Snowflake, as evidenced by its precipitous fall last year. While demand for the company's data storage and analytics services continues to grow, economic uncertainty has weighed on its recovery. Furthermore, the stock is still pretty pricey, selling for 16 times forward sales. However, for those with a stomach for volatility and a willingness to accept some additional risk for greater potential gains, Snowflake might be worth considering.
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 November 27, 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. Danny Vena has positions in Alphabet, Amazon, Apple, Meta Platforms, and Snowflake. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, 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 -- $174 billion Anyone who has followed Berkshire Hathaway won't be surprised to find that the company's most sizable AI stock holding is Apple (NASDAQ: AAPL). CEO Andy Jassy recently admitted the company is "investing heavily" in the large language models that form the foundation for generative AI. In fact, Berkshire invested in the company even before its initial public offering (IPO), in a move instigated by Buffett lieutenant Todd Combs, who purchased more than 6 million shares, currently valued at roughly $1.05 billion.
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Apple -- $174 billion Anyone who has followed Berkshire Hathaway won't be surprised to find that the company's most sizable AI stock holding is Apple (NASDAQ: AAPL). Amazon -- $1.47 billion Berkshire Hathaway also holds a considerable stake in e-commerce denizen Amazon (NASDAQ: AMZN), though Buffett himself didn't initiate the purchase. Snowflake -- $1.05 billion Data cloud and analytics provider Snowflake (NYSE: SNOW) is the last in Berkshire's trio of sizable AI holdings.
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Apple -- $174 billion Anyone who has followed Berkshire Hathaway won't be surprised to find that the company's most sizable AI stock holding is Apple (NASDAQ: AAPL). While Apple has kept its generative AI aspirations close to the vest, CEO Tim Cook said on the company's third-quarterearnings call "We view AI and machine learning as core fundamental technologies that are integral to virtually every product that we build." The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, and Snowflake.
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Apple -- $174 billion Anyone who has followed Berkshire Hathaway won't be surprised to find that the company's most sizable AI stock holding is Apple (NASDAQ: AAPL). He went on to say, "We've been doing research across a wide range of AI technologies, including generative AI for years." Amazon -- $1.47 billion Berkshire Hathaway also holds a considerable stake in e-commerce denizen Amazon (NASDAQ: AMZN), though Buffett himself didn't initiate the purchase.
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12302.0
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2023-12-02 00:00:00 UTC
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Warren Buffett's Best 3 Artificial Intelligence (AI) Stocks
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AAPL
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https://www.nasdaq.com/articles/warren-buffetts-best-3-artificial-intelligence-ai-stocks
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nan
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nan
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Most people don't associate Warren Buffett with tech trends, as he has consistently avoided investing in many new technologies because he says he doesn't understand them. Even though his company owns a lot of Apple, it's a relatively simple business because it's all about selling hardware. While some may snicker at this comment of not investing in tech, few can deny that this approach has worked well for him and Berkshire Hathaway.
Still, that doesn't mean that Buffett doesn't own any stocks associated with artificial intelligence (AI). In fact, there are quite a few in his portfolio. Among them are Amazon (NASDAQ: AMZN), Snowflake (NYSE: SNOW), and Mastercard (NYSE: MA), and each looks like a candidate to be bought now.
AI may not be the first reason these stocks were purchased
Each of these companies uses AI differently than the others.
For Amazon, its usage is twofold. First, it uses AI to make its delivery business more efficient and predict product demand. Second, Amazon Web Services (AWS) is a cloud computing juggernaut, which positions it well as companies use cloud computing to store proprietary data needed for AI models and develop their own. Amazon may not be the most "in your face" AI investment, but it is near the top of the list for companies that will benefit from AI adoption.
Snowflake is more of a straight-line AI investment, as its data cloud software helps its clients store information efficiently and use it to create AI models. Furthermore, clients can sell their datasets on the Snowflake marketplace, which is incredibly useful for developing an AI model if you don't have the raw data. Berkshire Hathaway bought Snowflake stock at its IPO and hasn't sold a share since, showing its confidence in its future.
Finally, Mastercard, the credit card giant, deploys AI to prevent fraud and safeguard transactions. Now, Mastercard is expanding its consulting practice, which uses its economic data to analyze purchases from all over the globe. AI is invaluable for retailers and can deliver real-time insights, allowing clients to adjust their strategies faster than ever before.
All three companies have legitimate investment cases as AI companies but are also devoted to their primary missions. This makes them great investments as they are less likely to get caught up in the AI hype.
Still, Berkshire is a relatively small shareholder in these businesses as Amazon, Snowflake, and Mastercard only make up 0.4%, 0.3%, and 0.5% of its investing portfolio, respectively. But that doesn't mean they or you can't purchase shares at a moment's notice.
Each looks like a buy right now
Each of these companies is in a different phase. Mastercard is the most mature and has developed its margins to near-optimized levels. Amazon is in a transitional phase of optimizing for profits, and Snowflake is still in a growth-at-all-costs mindset, which causes it to be deeply unprofitable. As a result, each of these companies needs to be examined using a slightly different metric.
For Mastercard, I'll use its price-to-earnings (P/E) ratio, as we have strong historical data of its usual trading range.
MA PE Ratio data by YCharts.
Mastercard has often fetched a premium price (and it still does), but right now, it is near the cheapest you've been able to purchase the stock since 2018 (besides a few momentary dips).
Amazon is nearing full-term profitability, so I'll use the forward P/E ratio.
AMZN PE Ratio (Forward 1y) data by YCharts.
A valuation of 43 times 2024 earnings isn't a cheap price to pay, but those are analyst estimates that can be wrong. AWS is a sleeping giant that will benefit tremendously from AI investment, and its improving margin picture will continue to make Amazon an attractive stock. While it's likely too expensive for Berkshire's taste, I think it's still a fair price.
Last is Snowflake, whose price-to-sales ratio is quite expensive.
SNOW PS Ratio data by YCharts.
Because Snowflake has placed itself into a lucrative opportunity, investors have bid up the stock drastically in expectation of future performance. There's no sugarcoating it; Snowflake stock is incredibly expensive, but if it's as vital to AI as many think, the price you pay today will be worth it years later.
While Buffett may not be known as an AI investor, his portfolio indicates otherwise. All three stocks are solid picks, and investors should be willing to purchase them at today's prices.
10 stocks we like better than Amazon
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 Amazon 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 28, 2023
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Keithen Drury has positions in Amazon, Mastercard, and Snowflake. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, Mastercard, and Snowflake. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Furthermore, clients can sell their datasets on the Snowflake marketplace, which is incredibly useful for developing an AI model if you don't have the raw data. Berkshire Hathaway bought Snowflake stock at its IPO and hasn't sold a share since, showing its confidence in its future. AWS is a sleeping giant that will benefit tremendously from AI investment, and its improving margin picture will continue to make Amazon an attractive stock.
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Among them are Amazon (NASDAQ: AMZN), Snowflake (NYSE: SNOW), and Mastercard (NYSE: MA), and each looks like a candidate to be bought now. Second, Amazon Web Services (AWS) is a cloud computing juggernaut, which positions it well as companies use cloud computing to store proprietary data needed for AI models and develop their own. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, Mastercard, and Snowflake.
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AI may not be the first reason these stocks were purchased Each of these companies uses AI differently than the others. Amazon may not be the most "in your face" AI investment, but it is near the top of the list for companies that will benefit from AI adoption. Snowflake is more of a straight-line AI investment, as its data cloud software helps its clients store information efficiently and use it to create AI models.
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Still, Berkshire is a relatively small shareholder in these businesses as Amazon, Snowflake, and Mastercard only make up 0.4%, 0.3%, and 0.5% of its investing portfolio, respectively. Each looks like a buy right now Each of these companies is in a different phase. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, Mastercard, and Snowflake.
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12303.0
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2023-12-01 00:00:00 UTC
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Best Blue Chip Stocks To Invest In Right Now? 2 In Focus
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AAPL
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https://www.nasdaq.com/articles/best-blue-chip-stocks-to-invest-in-right-now-2-in-focus
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nan
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nan
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Blue-chip stocks are shares of well-established, financially sound companies with a history of stable earnings. These companies are often market leaders or among the top in their sectors. Characterized by their large market capitalization, blue-chip stocks are known for their reliability and strong track record. They are often included in major stock indices.
Investing in blue-chip stocks offers several advantages. These stocks typically provide consistent dividends, contributing to steady income for investors. Their long-standing market presence suggests a lower risk of volatility. This makes them a popular choice for conservative investors. However, there are also disadvantages. Blue-chip stocks may have slower growth compared to emerging companies. Their size can limit their potential for rapid expansion.
When considering blue-chip stocks, investors should weigh their investment goals. These stocks can be a cornerstone for a long-term, stable portfolio. Yet, their conservative nature might not suit those seeking high growth rates. As with any investment, diversification is key. Keeping this on top of mind, let’s look at two blue chip stocks to watch in the stock market today.
Blue Chip Stocks To Buy [Or Avoid] Today
McDonald’s Corporation (NYSE: MCD)
Apple Inc. (NASDAQ: AAPL)
McDonald’s Corporation (MCD Stock)
Let’s start with McDonald’s Corporation (MCD). The company is a global fast-food chain, renowned for its hamburgers, fries, and quick-service meals. McDonald’s is one of the world’s largest restaurant chains, with outlets in over 100 countries. McDonald’s is known for its standardized menu items and for pioneering the franchise model in the fast-food industry.
Last month, McDonald’s Corporation announced its decision to acquire Carlyle’s minority ownership stake in the strategic partnership managing McDonald’s business in mainland China, Hong Kong, and Macau. The announcement, made on November 20, 2023, detailed that while the CITIC Consortium, primarily through CITIC Capital, would maintain its controlling 52% stake, McDonald’s would increase its stake from 20% to 48%. This move marks a significant adjustment in McDonald’s involvement in its Chinese operations.
In the last month of trading action, shares of MCD have advanced by 8.36%. Meanwhile, during Friday morning’s trading session, McDonald’s stock is trading slightly higher on the day so far by 0.72%, trading at $283.88 a share.
[Read More] 2 Dow 30 Stocks For Your December 2023 Watchlist
Apple (AAPL Stock)
Next, Apple Inc. (AAPL) is a multinational technology company that specializes in consumer electronics, software, and online services. Apple’s key products include the iPhone, iPad, Mac computers, and services like the App Store, Apple Music, and iCloud.
At the beginning of last month, Apple reported better-than-expected fourth-quarter 2023 financial results. Diving in, the company notched in earnings of $1.46 per share, along with revenue of $89.50 billion for Q4 2023. This is versus consensus estimates for the quarter which were earnings of $1.39 per share, with revenue estimates of $84.69 billion.
Over the last month of trading, shares of AAPL stock have gained by 9.29%. Moreover, during Friday morning’s trading session, Apple stock opened modestly higher by 0.11% so far, currently trading at $190.18 a share.
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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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Blue Chip Stocks To Buy [Or Avoid] Today McDonald’s Corporation (NYSE: MCD) Apple Inc. (NASDAQ: AAPL) McDonald’s Corporation (MCD Stock) Let’s start with McDonald’s Corporation (MCD). [Read More] 2 Dow 30 Stocks For Your December 2023 Watchlist Apple (AAPL Stock) Next, Apple Inc. (AAPL) is a multinational technology company that specializes in consumer electronics, software, and online services. Over the last month of trading, shares of AAPL stock have gained by 9.29%.
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Blue Chip Stocks To Buy [Or Avoid] Today McDonald’s Corporation (NYSE: MCD) Apple Inc. (NASDAQ: AAPL) McDonald’s Corporation (MCD Stock) Let’s start with McDonald’s Corporation (MCD). [Read More] 2 Dow 30 Stocks For Your December 2023 Watchlist Apple (AAPL Stock) Next, Apple Inc. (AAPL) is a multinational technology company that specializes in consumer electronics, software, and online services. Over the last month of trading, shares of AAPL stock have gained by 9.29%.
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Blue Chip Stocks To Buy [Or Avoid] Today McDonald’s Corporation (NYSE: MCD) Apple Inc. (NASDAQ: AAPL) McDonald’s Corporation (MCD Stock) Let’s start with McDonald’s Corporation (MCD). [Read More] 2 Dow 30 Stocks For Your December 2023 Watchlist Apple (AAPL Stock) Next, Apple Inc. (AAPL) is a multinational technology company that specializes in consumer electronics, software, and online services. Over the last month of trading, shares of AAPL stock have gained by 9.29%.
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Over the last month of trading, shares of AAPL stock have gained by 9.29%. Blue Chip Stocks To Buy [Or Avoid] Today McDonald’s Corporation (NYSE: MCD) Apple Inc. (NASDAQ: AAPL) McDonald’s Corporation (MCD Stock) Let’s start with McDonald’s Corporation (MCD). [Read More] 2 Dow 30 Stocks For Your December 2023 Watchlist Apple (AAPL Stock) Next, Apple Inc. (AAPL) is a multinational technology company that specializes in consumer electronics, software, and online services.
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12304.0
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2023-12-01 00:00:00 UTC
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US STOCKS-Wall St edges higher as Powell comments bolster peak-rate bets
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-edges-higher-as-powell-comments-bolster-peak-rate-bets
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nan
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nan
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By Shristi Achar A and Amruta Khandekar
Dec 1 (Reuters) - Wall Street's main indexes inched higher on Friday after Federal Reserve Chair Jerome Powell acknowledged progress in lowering inflation, encouraging expectations the central bank was done with its interest rate hiking campaign.
Powell noted a key measure of inflation was near the Fed's 2% target and that it was clear the U.S. monetary policy was slowing the economy as expected. He, however, added the central bank was prepared to tighten policy further if necessary.
While a pause in rate hikes has been fully priced in for the upcoming December policy meeting, traders see an about 61% chance of at least a 25 basis point rate cut in as soon as March 2024, up from about 56% before his comments.
"We've already reached the point where it's sufficiently restrictive," said Robert Pavlik, senior portfolio manager, Dakota Wealth, adding that the US economy was slowing.
"Just how fast it slows and how much a rate cut is needed, we don't know yet because we haven't gotten to the point to know exactly where we are."
A slew of recent data including Thursday's personal consumption expenditure index signalled easing inflation and bolstered hopes the central bank would now end its interest rate hikes and could start lowering them soon, propelling a rally in equities.
The S&P 500 .SPX and Nasdaq .IXIC finished November with their biggest monthly gain since July 2022, while the Dow Jones .DJI rallied to close at its highest level since January 2022.
At 11:43 a.m. ET, the Dow Jones Industrial Average .DJI was up 138.57 points, or 0.39%, at 36,089.46, the S&P 500 .SPX was up 13.61 points, or 0.30%, at 4,581.41, and the Nasdaq Composite .IXIC was up 17.13 points, or 0.12%, at 14,243.35.
TeslaTSLA.O underperformed megacap peers, falling 1.6% as the EV maker priced its Cybertruck above its initial forecast.
Among other top drags, PfizerPFE.N fell 4.6% as the drugmaker scrapped its plan to advance a twice-daily version of oral weight-loss drug danuglipron into late-stage studies, delaying its entry into the lucrative market.
U.S.-listed shares of AlibabaBABA.N slipped 2.2% after Morgan Stanley downgraded the e-commerce giant, citing slower turnaround in customer management revenue (CMR).
Marvell TechnologyMRVL.O shed 5.0% after the chipmaker's fourth-quarter revenue forecast fell short of Street estimates.
Ulta BeautyULTA.O rose 11.0% after the cosmetics retailer raised the lower end of its annual net sales forecast and named Paula Oyibo its new chief financial officer.
Paramount GlobalPARA.O climbed 7.6% on a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount.
Advancing issues outnumbered decliners by a 4.24-to-1 ratio on the NYSE and by a 2.49-to-1 ratio on the Nasdaq.
The S&P index recorded 41 new 52-week highs and one new low, while the Nasdaq recorded 58 new highs and 60 new lows.
U.S. inflation is falling https://tmsnrt.rs/3R3OjrB
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Shinjini Ganguli)
((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar; amruta.khandekar@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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Paramount GlobalPARA.O climbed 7.6% on a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. By Shristi Achar A and Amruta Khandekar Dec 1 (Reuters) - Wall Street's main indexes inched higher on Friday after Federal Reserve Chair Jerome Powell acknowledged progress in lowering inflation, encouraging expectations the central bank was done with its interest rate hiking campaign. A slew of recent data including Thursday's personal consumption expenditure index signalled easing inflation and bolstered hopes the central bank would now end its interest rate hikes and could start lowering them soon, propelling a rally in equities.
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Paramount GlobalPARA.O climbed 7.6% on a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. A slew of recent data including Thursday's personal consumption expenditure index signalled easing inflation and bolstered hopes the central bank would now end its interest rate hikes and could start lowering them soon, propelling a rally in equities. The S&P index recorded 41 new 52-week highs and one new low, while the Nasdaq recorded 58 new highs and 60 new lows.
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Paramount GlobalPARA.O climbed 7.6% on a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. By Shristi Achar A and Amruta Khandekar Dec 1 (Reuters) - Wall Street's main indexes inched higher on Friday after Federal Reserve Chair Jerome Powell acknowledged progress in lowering inflation, encouraging expectations the central bank was done with its interest rate hiking campaign. A slew of recent data including Thursday's personal consumption expenditure index signalled easing inflation and bolstered hopes the central bank would now end its interest rate hikes and could start lowering them soon, propelling a rally in equities.
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Paramount GlobalPARA.O climbed 7.6% on a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. By Shristi Achar A and Amruta Khandekar Dec 1 (Reuters) - Wall Street's main indexes inched higher on Friday after Federal Reserve Chair Jerome Powell acknowledged progress in lowering inflation, encouraging expectations the central bank was done with its interest rate hiking campaign. A slew of recent data including Thursday's personal consumption expenditure index signalled easing inflation and bolstered hopes the central bank would now end its interest rate hikes and could start lowering them soon, propelling a rally in equities.
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12305.0
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2023-12-01 00:00:00 UTC
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Wall St Week Ahead-Tax-loss selling, 'Santa rally' could sway U.S. stocks after November melt-up
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-tax-loss-selling-santa-rally-could-sway-u.s.-stocks-after-november-melt
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nan
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nan
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By David Randall
NEW YORK, Dec 1(Reuters) - As U.S. stocks sit on hefty gains at the close of a rollercoaster year, investors are eyeing factors that could sway equities in the remaining weeks of 2023, including tax loss selling and the so-called Santa Claus rally.
The key catalyst for stocks will likely continue to be the expected trajectory of the Federal Reserve's monetary policy. Evidence of cooling economic growth has fueled bets that the U.S. central bank could begin cutting rates as early as the first half of 2024, sparking a rally that has boosted the S&P 500 .SPX19.6% year-to-date and taken the index to a fresh closing high for the year on Friday.
At the same time, seasonal trends have been particularly strong this year. In September, historically the weakest month for stocks, the S&P 500 fell nearly 5%. Stocks swung wildly in October, a month noted for its volatility. The S&P 500 gained nearly 9% gain in November, historically a strong month for the index.
"We've had a solid year, but history shows that December can sometimes move to its own beat," said Sam Stovall, chief investment strategist at CFRA Research in New York.
Investors next week will be watching U.S. employment data, due out on Dec. 8, to see whether economic growth is continuing to level off.
Overall, December has been the second-best month for the S&P 500, with the index up an average of 1.54% for the month since 1945, according to CFRA. It is also the month most likely to post a gain, with the index rising 77% of the time, the firm's data showed.
Research from LPL Financial showed that the second half of December tends to outshine the first part of the month. The S&P 500 has gained an average of 1.4% in the second half of December in so-called Santa Claus rallies, compared with a 0.1% gain in the first half, according to LPL's analysis of market moves going back to 1950.
Stocks that have not performed well, however, may face additional pressure in December from tax loss selling, as investors get rid of losers to lock in write-offs before year-end. If history is any guide, some of those shares may rebound later in the month and into January as investors return to undervalued names, analysts said.
Since 1986, stocks that were down 10% or more between January and the end of October have beaten the S&P 500 by an average of 1.9% over the next three months, according to BofA Global Research. PayPal Holdings, CVS Health, and Kraft Heinz Co are among the stocks the bank recommends buying for a tax-related bounce, BofA noted in a late October report.
"The market advance has been extraordinarily narrow this year, and there's reason to believe that some sectors and stocks will really take it on the chin until they get some relief in January," said Sameer Samana, seniorglobal marketstrategist at the Wells Fargo Investment Institute.
Despite the market's hefty year-to-date rise, investment portfolios are likely to have plenty of underperforming stocks. Nearly 72% of the S&P 500's gain has been driven by a cluster of megacap stocks such as Apple, Tesla and Nvidia, which have an outsized weighting in the index, data from S&P Dow Jones Indices showed.
Many other names have languished: The equal-weighted S&P 500, whose performance is not skewed by big tech and growth stocks, is up around 6% in 2023.
Some worry that investor over-exuberance may have already set in after November's big rally, which spurred huge moves in some of the market's more speculative names.
Streaming service company Roku soared 75% in November, for instance, while cryptocurrency firm Coinbase Global climbed 62% and Cathie Wood's ARK Innovation Fund was up 31%, its best performance of any month in the last five years.
Michael Hartnett, chief investment strategist at BofA Global Research, said in a Friday note that the firm's contrarian Bull & Bear indicator - which assesses factors such as hedge fund positioning, equity flows and bond flows - had moved out of the "buy" zone for the first time since mid-October.
"If you caught it, no need to chase it," he wrote of the rally.
(Reporting by David Randall; Editing by Ira Iosebashvili and Richard Chang)
((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Randall NEW YORK, Dec 1(Reuters) - As U.S. stocks sit on hefty gains at the close of a rollercoaster year, investors are eyeing factors that could sway equities in the remaining weeks of 2023, including tax loss selling and the so-called Santa Claus rally. Evidence of cooling economic growth has fueled bets that the U.S. central bank could begin cutting rates as early as the first half of 2024, sparking a rally that has boosted the S&P 500 .SPX19.6% year-to-date and taken the index to a fresh closing high for the year on Friday. Streaming service company Roku soared 75% in November, for instance, while cryptocurrency firm Coinbase Global climbed 62% and Cathie Wood's ARK Innovation Fund was up 31%, its best performance of any month in the last five years.
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By David Randall NEW YORK, Dec 1(Reuters) - As U.S. stocks sit on hefty gains at the close of a rollercoaster year, investors are eyeing factors that could sway equities in the remaining weeks of 2023, including tax loss selling and the so-called Santa Claus rally. The S&P 500 has gained an average of 1.4% in the second half of December in so-called Santa Claus rallies, compared with a 0.1% gain in the first half, according to LPL's analysis of market moves going back to 1950. Michael Hartnett, chief investment strategist at BofA Global Research, said in a Friday note that the firm's contrarian Bull & Bear indicator - which assesses factors such as hedge fund positioning, equity flows and bond flows - had moved out of the "buy" zone for the first time since mid-October.
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By David Randall NEW YORK, Dec 1(Reuters) - As U.S. stocks sit on hefty gains at the close of a rollercoaster year, investors are eyeing factors that could sway equities in the remaining weeks of 2023, including tax loss selling and the so-called Santa Claus rally. The S&P 500 has gained an average of 1.4% in the second half of December in so-called Santa Claus rallies, compared with a 0.1% gain in the first half, according to LPL's analysis of market moves going back to 1950. Michael Hartnett, chief investment strategist at BofA Global Research, said in a Friday note that the firm's contrarian Bull & Bear indicator - which assesses factors such as hedge fund positioning, equity flows and bond flows - had moved out of the "buy" zone for the first time since mid-October.
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The S&P 500 gained nearly 9% gain in November, historically a strong month for the index. It is also the month most likely to post a gain, with the index rising 77% of the time, the firm's data showed. Since 1986, stocks that were down 10% or more between January and the end of October have beaten the S&P 500 by an average of 1.9% over the next three months, according to BofA Global Research.
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12306.0
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2023-12-01 00:00:00 UTC
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2 Tech Dividend Stocks to Buy and Hold Forever
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AAPL
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https://www.nasdaq.com/articles/2-tech-dividend-stocks-to-buy-and-hold-forever
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nan
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nan
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Tech giants Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have a lot in common. Both are among the biggest companies in the world by market cap, have delivered amazing returns to longtime shareholders, and have plenty of growth opportunities to exploit. However, though they aren't known primarily for their dividends, both stocks are excellent choices for income-seeking investors.
1. Apple
Building a solid economic moat is one of the keys to success and longevity for any business. That's precisely what Apple has done over the years. Part of the company's competitive edge now comes from its brand name, which it has built into one of the most valuable in the world. The brand loyalty of its customers allows it to charge outrageous prices for its products, none of which are necessary goods consumers can't live with.
Still, Apple sells tens of billions of dollars worth of iPhones and other devices every quarter regardless of economic conditions. Detractors will quickly point out that in its fiscal 2023, which ended on Sept. 30, Apple's net sales declined by about 3% year over year to $383.3 billion. All that means, though, is that the tech company isn't completely immune to economic pressures, but it can still perform reasonably well among these challenges.
Apple's earnings per share increased slightly to $6.13 in fiscal 2023, up from $6.11 in its fiscal 2022. Also, the company had its best fiscal Q4 ever for iPhone sales, and its services unit's revenue set an all-time high -- and those are the company's most important businesses. Further, Apple's financial results have been solid over long periods.
AAPL Revenue (Annual) data by YCharts.
Apple also benefits from relatively high switching costs. Customers who join the company's ecosystem enjoy perks that range from the connectivity between its devices to the lure of its services. Switching to an Android smartphone is possible, but it's a headache. That's partly how Apple's installed base has grown to over 2 billion active devices.
This installed base also represents one of Apple's most important opportunities, as the company will continue finding ways to monetize its ecosystem. One of the company's goals is to make headway in the healthcare sector by adding medical-related functions to some of its gadgets. For instance, it has been working on creating a continuous glucose monitoring system that it can add to the Apple Watch.
Apple has also made headway in fintech. Whatever the company decides to pursue, its track record, massive customer base, and strong ability to generate cash inspire confidence. Apple should continue delivering excellent returns for a while. What about the company's dividend? While its yield isn't impressive -- just 0.51% at the current share price -- compared to the S&P 500's average of 1.62% -- Apple has raised its payouts by 120% in the past 10 years.
The company's cash payout ratio is just 15.1%, so management has substantial capacity to hike the dividend further. That makes Apple a great dividend stock and, coupled with the rest of its business, an excellent stock to buy and hold forever.
2. Microsoft
Microsoft benefits from a similar economic moat to Apple, one that starts with a strong brand. In the computer operating system market, Microsoft leads by a wide margin. It also famously offers a wide range of productivity tools that are used daily by millions of people and businesses.
It's hard to imagine any rival dethroning Microsoft in these markets, especially since its productivity programs also carry high switching costs. All such programs have a learning curve, making it hard for customers, especially businesses with many employees, to switch to a competitor. In addition to its legacy computer OS business, Microsoft boasts key growth opportunities.
The first is cloud computing infrastructure, a market where its Azure segment is one of the leaders. This business unit is increasingly becoming one of Microsoft's most important, and a significant contributor to its top-line growth. In its fiscal 2024 first quarter, which ended on Sept. 30, Microsoft's total revenue increased by 13% year over year to $56.5 billion. Azure's revenue growth rate was more than double that at 29%.
The cloud computing industry still has ample white space, providing a nice tailwind to Microsoft. The company is also looking to become the leader in generative artificial intelligence (AI). Microsoft has partnered with OpenAI, the company behind ChatGPT, for years, and it doubled down on this partnership at the beginning of the year. Beyond these two opportunities, Microsoft should remain a major player in other areas, including gaming.
The company has an impressive long-term financial performance that shows its ability to profit from growth opportunities.
MSFT Revenue (Annual) data by YCharts.
Microsoft can also give dividend investors what they want, even with a yield of just 0.79% at its current share price. The company has increased its payouts by nearly 168% in the past 10 years, yet its payout ratio remains conservative at 32%. Growth and income-oriented investors focused on the long term can't go wrong with Microsoft.
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Prosper Junior Bakiny 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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Tech giants Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have a lot in common. AAPL Revenue (Annual) data by YCharts. Both are among the biggest companies in the world by market cap, have delivered amazing returns to longtime shareholders, and have plenty of growth opportunities to exploit.
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Tech giants Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have a lot in common. AAPL Revenue (Annual) data by YCharts. Whatever the company decides to pursue, its track record, massive customer base, and strong ability to generate cash inspire confidence.
|
Tech giants Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have a lot in common. AAPL Revenue (Annual) data by YCharts. Also, the company had its best fiscal Q4 ever for iPhone sales, and its services unit's revenue set an all-time high -- and those are the company's most important businesses.
|
Tech giants Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) have a lot in common. AAPL Revenue (Annual) data by YCharts. Also, the company had its best fiscal Q4 ever for iPhone sales, and its services unit's revenue set an all-time high -- and those are the company's most important businesses.
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12307.0
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2023-12-01 00:00:00 UTC
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GRAPHIC-Resurgent S&P 500 crests new 2023 closing high after roller-coaster year
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AAPL
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https://www.nasdaq.com/articles/graphic-resurgent-sp-500-crests-new-2023-closing-high-after-roller-coaster-year
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nan
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nan
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By Lewis Krauskopf
Dec 1 (Reuters) - A searing late-year rally has brought the S&P 500 .SPX to a fresh 2023 closing high, as investors bet the Federal Reserve is done raising interest rates and the U.S. economy will remain resilient in the face of tighter monetary policy.
The benchmark index closed at 4,594.63, nearly 6 points above its previous closing high for 2023 set in late July. The index gained 0.6% on Friday after bullish investors grew more confident the rate cycle had peaked following comments from Fed Chair Jerome Powell.
Signs that inflation is cooling after reaching a four-decade high last year have made investors more confident that the Fed will start cutting rates sooner than expected.
At the same time, the Fed’s aggressive rate increases so far appear to have done little damage to the U.S. economy, despite fears that tighter monetary policy would hurt growth. The S&P 500 is up over 19% year-to-date after posting its biggest monthly rise in over a year in November. The index stood about 4% below its all-time closing high from January 2022.
Stocks have faced down several crises this year, starting with the implosion of Silicon Valley Bank in March that sparked worries over the health of the broader banking system.
A legislative showdown over raising the U.S. debt ceiling became a key concern for investors months later, with equities gaining support once a deal was reached.
The S&P 500 reached its previous 2023 closing high on July 31, also spurred in part by excitement over developments in artificial intelligence technology.
A steady rise in Treasury yields - which dulled the allure of stocks compared to bonds and other investments - began eroding those gains, resulting in a sell-off that eventually erased more than half of the index’s year-to-date advance.
However, many investors came away from the Fed’s Nov. 1 meeting more confident that the central bank was close to wrapping up its rate increases. Data on Nov. 14 showed that consumer prices were unchanged on a monthly basis for October, the first such reading in more than a year, sparking a sizable stock rally.
Federal funds futures, a widely used security for hedging short-term interest rate risk, imply a Fed funds rate of 4.54% by the end of July, versus 5.12% expected three months ago for that period, according to LSEG data.
Cooling inflation has been accompanied by little of the economic damage that many expected to come with the Fed’s rate hikes - giving rise to hopes of a so-called Goldilocks scenario where the central bank is able to staunch the growth in consumer prices without badly hurting growth.
The economy appears to have avoided a recession this year that was widely forecast at the beginning of 2023, though growth in key areas such as employment has slowed. The Citigroup Economic Surprise Index .CESIUSD, which measures how economic data performs versus expectations, has been positive for virtually all of 2023.
Of course, some investors worry that the cumulative effects of the Fed’s 525 basis points of tightening are only starting to manifest and will eventually cool growth far more than currently expected.
A cadre of massive stocks has been the key engine of most of the S&P 500’s 2023 gains thanks to their outsized weightings in the index. The so-called "Magnificent Seven" -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Platforms META.O and Tesla TSLA.O -- have seen stock gains of between about 47% and 220% so far this year.
The companies perceived safety as investments given their size and competitive advantages has benefited the stocks, while a number of them have also been fueled by enthusiasm about the profit potential of artificial intelligence.
The megacaps' outperformance has increased their combined weight to well over one-fourth of the entire S&P 500, meaning the stocks' moves have outsized influence on the benchmark index.
To be sure, the S&P 500’s rapid rise has also made it richly valued compared to its historic levels, which could be an obstacle for the rally.
The S&P 500 currently trades at roughly 19 times forward earnings estimates, compared to a historical average of 15.6 times.
GRAPHIC-S&P 500 timeline https://tmsnrt.rs/3SWqXXA
GRAPHIC-Citi US economic surprise index https://tmsnrt.rs/3MXgBTA
GRAPHIC-S&P 500 weight of 7 megacaps https://tmsnrt.rs/3RbxZX2
GRAPHIC-S&P 500 forward P/E https://tmsnrt.rs/3MUCItE
(Reporting by Lewis Krauskopf; Additional reporting by Noel Randewich and Saqib Iqbal Ahmed; Editing by Ira Iosebashvili and Nick Zieminski)
((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 so-called "Magnificent Seven" -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Platforms META.O and Tesla TSLA.O -- have seen stock gains of between about 47% and 220% so far this year. By Lewis Krauskopf Dec 1 (Reuters) - A searing late-year rally has brought the S&P 500 .SPX to a fresh 2023 closing high, as investors bet the Federal Reserve is done raising interest rates and the U.S. economy will remain resilient in the face of tighter monetary policy. Signs that inflation is cooling after reaching a four-decade high last year have made investors more confident that the Fed will start cutting rates sooner than expected.
|
The so-called "Magnificent Seven" -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Platforms META.O and Tesla TSLA.O -- have seen stock gains of between about 47% and 220% so far this year. The benchmark index closed at 4,594.63, nearly 6 points above its previous closing high for 2023 set in late July. Signs that inflation is cooling after reaching a four-decade high last year have made investors more confident that the Fed will start cutting rates sooner than expected.
|
The so-called "Magnificent Seven" -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Platforms META.O and Tesla TSLA.O -- have seen stock gains of between about 47% and 220% so far this year. Signs that inflation is cooling after reaching a four-decade high last year have made investors more confident that the Fed will start cutting rates sooner than expected. Cooling inflation has been accompanied by little of the economic damage that many expected to come with the Fed’s rate hikes - giving rise to hopes of a so-called Goldilocks scenario where the central bank is able to staunch the growth in consumer prices without badly hurting growth.
|
The so-called "Magnificent Seven" -- Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvidia NVDA.O, Meta Platforms META.O and Tesla TSLA.O -- have seen stock gains of between about 47% and 220% so far this year. At the same time, the Fed’s aggressive rate increases so far appear to have done little damage to the U.S. economy, despite fears that tighter monetary policy would hurt growth. However, many investors came away from the Fed’s Nov. 1 meeting more confident that the central bank was close to wrapping up its rate increases.
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12308.0
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2023-12-01 00:00:00 UTC
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US STOCKS-S&P 500 hits 2023 closing high as Powell strengthens peak rate bets
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-hits-2023-closing-high-as-powell-strengthens-peak-rate-bets
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nan
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nan
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*
Powell acknowledges risks of over-tightening
*
ISM shows U.S. manufacturing weakness persists
*
Pfizer dips as obesity drug trial dropped
*
Indexes up: Dow 0.82%, S&P 0.59%, Nasdaq 0.55%
(Updates with closing prices)
By Stephen Culp
NEW YORK, Dec 1 (Reuters) - U.S. stocks rallied and the
S&P registered its highest close of the year on Friday, starting
December on an upbeat note as remarks from Federal Reserve Chair
Jerome Powell bolstered the view that key policy rates have
peaked.
All three major U.S. stock indexes advanced, with
economically sensitive transports <.DJT> and smallcaps <.RUT>
enjoying the most robust gains.
"Those sectors - the cyclicals - they're the most hated
parts of the market year-to-date, (and they) are the parts that
are leading," said Scott Ladner, chief investment officer at
Horizon Investments in Charlotte, North Carolina. "On the first
day of December, when everybody's looking for a Santa Claus
rally, it probably carries a little bit of extra weight."
"If December starts out strong, it's going to make folks
jump on board and chase this rally," Ladner added.
All three indexes notched their fifth consecutive weekly
percentage gains. On Thursday, they wrapped up a banner month in
which the S&P 500 and the Nasdaq registered their biggest
one-month percentage gains since July 2022, and the Dow closed
at its highest level since January 2022.
In prepared remarks, Powell acknowledged the central bank's
need to "move forward carefully" amid signs of economic
softening, as the risks of over- and under-tightening its
monetary policy are becoming more balanced.
"Earlier in the week, (Fed Governor Christopher) Waller, one
of the Fed's biggest hawks, said as inflation decreases, we're
going to drop rates," Ladner said. "The market thought that
Powell would push against those remarks, and he didn't.
"(Powell) is setting the market up for rate cuts next
year."
Data released on Friday showed U.S. manufacturing continues
to contract as factories contend with decreasing new orders,
falling inventories and labor pressures.
The Dow Jones Industrial Average <.DJI> rose 294.61 points,
or 0.82%, to 36,245.5, the S&P 500 <.SPX> gained 26.83 points,
or 0.59%, at 4,594.63 and the Nasdaq Composite <.IXIC> added
78.81 points, or 0.55%, at 14,305.03.
Among the 11 major sectors of the S&P 500, real estate
<.SPLRCR> was the biggest percentage gainer, while communication
services <.SPLRCL> was the sole decliner.
Pfizer
slid
5.1
% as the drugmaker dropped plans to advance a twice-daily
version of oral weight-loss drug danuglipron into late-stage
studies, delaying its entry into the lucrative market.
U.S.-listed shares of
Alibaba
slipped
1.2
% following Morgan Stanley's downgrade of the e-commerce
giant's stock.
Marvell Technology
shed
5.3
% after the chipmaker's fourth-quarter revenue forecast fell
short of Street estimates.
Ulta Beauty
surged
10.8
after the cosmetics retailer raised the lower end of its
annual net sales forecast and named Paula Oyibo its new chief
financial officer.
Paramount Global
jumped
9.8
% following a report the media company and Apple
have discussed bundling their streaming services at a discount.
Advancing issues outnumbered decliners on the NYSE by a
5.93-to-1 ratio; on Nasdaq, a 3.32-to-1 ratio favored advancers.
The S&P 500 posted 59 new 52-week highs and one new low;
the Nasdaq Composite recorded 106 new highs and 82 new lows.
Volume on U.S. exchanges was 12.34 billion shares,
compared with the 10.58 billion average for the full session
over the last 20 trading days.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
U.S. inflation is falling https://tmsnrt.rs/3R3OjrB
Inflation gauges https://tmsnrt.rs/3Rng8MU
ISM PMI https://tmsnrt.rs/3T3Yqzi
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Stephen Culp; Additional reporting by Shristi
Achar A and Amruta Khandekar in Bengaluru; Editing by Richard
Chang)
((stephen.culp@thomsonreuters.com; 646-223-6076))
Keywords: USA STOCKS/ (UPDATE 7, GRAPHIC)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In prepared remarks, Powell acknowledged the central bank's need to "move forward carefully" amid signs of economic softening, as the risks of over- and under-tightening its monetary policy are becoming more balanced. Pfizer slid 5.1 % as the drugmaker dropped plans to advance a twice-daily version of oral weight-loss drug danuglipron into late-stage studies, delaying its entry into the lucrative market. Ulta Beauty surged 10.8 after the cosmetics retailer raised the lower end of its annual net sales forecast and named Paula Oyibo its new chief financial officer.
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(Updates with closing prices) By Stephen Culp NEW YORK, Dec 1 (Reuters) - U.S. stocks rallied and the S&P registered its highest close of the year on Friday, starting December on an upbeat note as remarks from Federal Reserve Chair Jerome Powell bolstered the view that key policy rates have peaked. All three major U.S. stock indexes advanced, with economically sensitive transports <.DJT> and smallcaps <.RUT> enjoying the most robust gains. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ U.S. inflation is falling https://tmsnrt.rs/3R3OjrB Inflation gauges https://tmsnrt.rs/3Rng8MU ISM PMI https://tmsnrt.rs/3T3Yqzi ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Stephen Culp; Additional reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Richard Chang) ((stephen.culp@thomsonreuters.com; 646-223-6076))
|
(Updates with closing prices) By Stephen Culp NEW YORK, Dec 1 (Reuters) - U.S. stocks rallied and the S&P registered its highest close of the year on Friday, starting December on an upbeat note as remarks from Federal Reserve Chair Jerome Powell bolstered the view that key policy rates have peaked. The Dow Jones Industrial Average <.DJI> rose 294.61 points, or 0.82%, to 36,245.5, the S&P 500 <.SPX> gained 26.83 points, or 0.59%, at 4,594.63 and the Nasdaq Composite <.IXIC> added 78.81 points, or 0.55%, at 14,305.03. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ U.S. inflation is falling https://tmsnrt.rs/3R3OjrB Inflation gauges https://tmsnrt.rs/3Rng8MU ISM PMI https://tmsnrt.rs/3T3Yqzi ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Stephen Culp; Additional reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Richard Chang) ((stephen.culp@thomsonreuters.com; 646-223-6076))
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* Indexes up: Dow 0.82%, S&P 0.59%, Nasdaq 0.55% (Updates with closing prices) By Stephen Culp NEW YORK, Dec 1 (Reuters) - U.S. stocks rallied and the S&P registered its highest close of the year on Friday, starting December on an upbeat note as remarks from Federal Reserve Chair Jerome Powell bolstered the view that key policy rates have peaked. On Thursday, they wrapped up a banner month in which the S&P 500 and the Nasdaq registered their biggest one-month percentage gains since July 2022, and the Dow closed at its highest level since January 2022.
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12309.0
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2023-12-01 00:00:00 UTC
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US STOCKS-Wall St rallies as Powell cements peak rate bets
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-rallies-as-powell-cements-peak-rate-bets
|
nan
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nan
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By Stephen Culp
NEW YORK, Dec 1 (Reuters) - U.S. stocks advanced on Friday, starting December with a broad rally as remarks from Federal Reserve Chairman Jerome Powell bolstered the view that interest rates have peaked.
All three major U.S. stock indexes were higher, with economically sensitive transports .DJT and smallcaps .RUT enjoying the most robust gains.
"People are bargain hunting. The stocks that haven't participated in the rally this year are powering the market higher," said Jay Hatfield, portfolio manager at InfraCap in New York. "This is clearly a broad-based rally, and it has legs."
All three indexes are on course to notch their fifth consecutive weekly percentage gains, the day after wrapping up a banner month in which the S&P 500 and the Nasdaq registered their biggest one-month percentage gains since July 2022, and the Dow close at its highest level since January 2022.
If the S&P 500 ends at or above its current level, it will be the highest close for the benchmark index so far this year.
In prepared remarks, Powell acknowledged the central bank's need to "move forward carefully" amid signs of economic softening, as the risks of over- and under-tightening its monetary policy are becoming more balanced.
"(Powell) used the word 'balanced,' and the message he's sending is the Fed's not going to change its rhetoric, but things are going the way they want them to go and they're not going to raised rates again," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. "They're done, they're finished, and that's what the market thinks."
Data released on Friday showed U.S. manufacturing continues to contract as factories contend with decreasing new orders, falling inventories and labor pressures.
At 2:14 p.m. ET, the Dow Jones Industrial Average .DJI rose 258.01 points, or 0.72%, to 36,208.9, the S&P 500 .SPX gained 21.94 points, or 0.48%, at 4,589.74 and the Nasdaq Composite .IXIC added 51.37 points, or 0.36%, at 14,277.59.
Among the 11 major sectors of the S&P 500, real estate .SPLRCR notched the most robust percentage gains, while communication services .SPLRCL was the sole decliner.
TeslaTSLA.O underperformed megacap peers, falling 1.2% as the electric vehicle maker priced its Cybertruck above its initial forecast.
PfizerPFE.N slid 4.6% as the drugmaker dropped plans to advance a twice-daily version of oral weight-loss drug danuglipron into late-stage studies, delaying its entry into the lucrative market.
U.S.-listed shares of AlibabaBABA.N slipped 1.4% following Morgan Stanley's downgrade of the e-commerce giant's stock.
Marvell TechnologyMRVL.O shed 5.4% after the chipmaker's fourth-quarter revenue forecast fell short of Street estimates.
Ulta BeautyULTA.O surged 10.3 after the cosmetics retailer raised the lower end of its annual net sales forecast and named Paula Oyibo its new chief financial officer.
Paramount GlobalPARA.O jumped 9.6% following a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount.
Advancing issues outnumbered decliners on the NYSE by a 5.50-to-1 ratio; on Nasdaq, a 3.00-to-1 ratio favored advancers.
The S&P 500 posted 54 new 52-week highs and one new low; the Nasdaq Composite recorded 87 new highs and 68 new lows.
U.S. inflation is falling https://tmsnrt.rs/3R3OjrB
(Reporting by Stephen Culp; Additional reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Richard Chang)
((stephen.culp@thomsonreuters.com; 646-223-6076))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Paramount GlobalPARA.O jumped 9.6% following a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. By Stephen Culp NEW YORK, Dec 1 (Reuters) - U.S. stocks advanced on Friday, starting December with a broad rally as remarks from Federal Reserve Chairman Jerome Powell bolstered the view that interest rates have peaked. In prepared remarks, Powell acknowledged the central bank's need to "move forward carefully" amid signs of economic softening, as the risks of over- and under-tightening its monetary policy are becoming more balanced.
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Paramount GlobalPARA.O jumped 9.6% following a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. By Stephen Culp NEW YORK, Dec 1 (Reuters) - U.S. stocks advanced on Friday, starting December with a broad rally as remarks from Federal Reserve Chairman Jerome Powell bolstered the view that interest rates have peaked. All three major U.S. stock indexes were higher, with economically sensitive transports .DJT and smallcaps .RUT enjoying the most robust gains.
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Paramount GlobalPARA.O jumped 9.6% following a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. By Stephen Culp NEW YORK, Dec 1 (Reuters) - U.S. stocks advanced on Friday, starting December with a broad rally as remarks from Federal Reserve Chairman Jerome Powell bolstered the view that interest rates have peaked. All three indexes are on course to notch their fifth consecutive weekly percentage gains, the day after wrapping up a banner month in which the S&P 500 and the Nasdaq registered their biggest one-month percentage gains since July 2022, and the Dow close at its highest level since January 2022.
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Paramount GlobalPARA.O jumped 9.6% following a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. By Stephen Culp NEW YORK, Dec 1 (Reuters) - U.S. stocks advanced on Friday, starting December with a broad rally as remarks from Federal Reserve Chairman Jerome Powell bolstered the view that interest rates have peaked. All three major U.S. stock indexes were higher, with economically sensitive transports .DJT and smallcaps .RUT enjoying the most robust gains.
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12310.0
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2023-12-01 00:00:00 UTC
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TikTok asks EU court to suspend EU gatekeeper label until its ruling
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AAPL
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https://www.nasdaq.com/articles/tiktok-asks-eu-court-to-suspend-eu-gatekeeper-label-until-its-ruling
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nan
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nan
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By Foo Yun Chee
BRUSSELS, Dec 1 (Reuters) - Chinese conglomerate ByteDance's TikTok has asked Europe's second highest court to suspend its designation as a gatekeeper under onerous new EU tech rules until judges rule on its challenge against the label.
The Digital Markets Act (DMA) requires TikTok and other designated gatekeepers Alphabet's GOOGL.O Google, Meta Platforms META.O, Apple AAPL.O, Amazon AMZN.O and Microsoft MSFT.O to make their messaging apps interoperate with rivals and let users decide which apps to pre-install on their devices.
They are not allowed to favour their own services over rivals' or prevent users from removing pre-installed software or apps.
TikTok last month challenged the EU decision at the Luxembourg-based General Court, saying its designation risks undermining the DMA goal of protecting gatekeepers from newer competitors like itself.
"We have applied for interim measures," a spokesperson said.
The bar for the court to approve interim measures is very high. Companies must show that situation is urgent and that they would suffer irreparable harm without an interim measure.
Meta and Apple have also sued the Commission over their gatekeeper status.
(Reporting by Foo Yun Chee; editing by Barbara Lewis)
((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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The Digital Markets Act (DMA) requires TikTok and other designated gatekeepers Alphabet's GOOGL.O Google, Meta Platforms META.O, Apple AAPL.O, Amazon AMZN.O and Microsoft MSFT.O to make their messaging apps interoperate with rivals and let users decide which apps to pre-install on their devices. By Foo Yun Chee BRUSSELS, Dec 1 (Reuters) - Chinese conglomerate ByteDance's TikTok has asked Europe's second highest court to suspend its designation as a gatekeeper under onerous new EU tech rules until judges rule on its challenge against the label. TikTok last month challenged the EU decision at the Luxembourg-based General Court, saying its designation risks undermining the DMA goal of protecting gatekeepers from newer competitors like itself.
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The Digital Markets Act (DMA) requires TikTok and other designated gatekeepers Alphabet's GOOGL.O Google, Meta Platforms META.O, Apple AAPL.O, Amazon AMZN.O and Microsoft MSFT.O to make their messaging apps interoperate with rivals and let users decide which apps to pre-install on their devices. By Foo Yun Chee BRUSSELS, Dec 1 (Reuters) - Chinese conglomerate ByteDance's TikTok has asked Europe's second highest court to suspend its designation as a gatekeeper under onerous new EU tech rules until judges rule on its challenge against the label. (Reporting by Foo Yun Chee; editing by Barbara Lewis) ((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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The Digital Markets Act (DMA) requires TikTok and other designated gatekeepers Alphabet's GOOGL.O Google, Meta Platforms META.O, Apple AAPL.O, Amazon AMZN.O and Microsoft MSFT.O to make their messaging apps interoperate with rivals and let users decide which apps to pre-install on their devices. By Foo Yun Chee BRUSSELS, Dec 1 (Reuters) - Chinese conglomerate ByteDance's TikTok has asked Europe's second highest court to suspend its designation as a gatekeeper under onerous new EU tech rules until judges rule on its challenge against the label. TikTok last month challenged the EU decision at the Luxembourg-based General Court, saying its designation risks undermining the DMA goal of protecting gatekeepers from newer competitors like itself.
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The Digital Markets Act (DMA) requires TikTok and other designated gatekeepers Alphabet's GOOGL.O Google, Meta Platforms META.O, Apple AAPL.O, Amazon AMZN.O and Microsoft MSFT.O to make their messaging apps interoperate with rivals and let users decide which apps to pre-install on their devices. By Foo Yun Chee BRUSSELS, Dec 1 (Reuters) - Chinese conglomerate ByteDance's TikTok has asked Europe's second highest court to suspend its designation as a gatekeeper under onerous new EU tech rules until judges rule on its challenge against the label. "We have applied for interim measures," a spokesperson said.
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12311.0
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2023-12-01 00:00:00 UTC
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Walmart says it is not advertising on social platform X
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AAPL
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https://www.nasdaq.com/articles/walmart-says-it-is-not-advertising-on-social-platform-x-0
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nan
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nan
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By Siddharth Cavale and Sheila Dang
Dec 1 (Reuters) - Walmart WMT.N said on Friday it is not advertising on social media platform X, one of the latest brands to say it has dropped the Elon Musk-owned site.
"We aren't advertising on X as we've found other platforms to better reach our customers," a Walmart spokesperson said.
X, formerly known as Twitter, did not immediately respond to a request for comment.
The platform has struggled to retain advertisers since Musk acquired the company in October 2022, and faced a fresh exodus in recent weeks over rising concern about antisemitic content.
Earlier this month, Musk agreed with an X user who falsely claimed members of the Jewish community were stoking hatred against white people, saying the user was speaking "the actual truth."
The user had also referenced the "Great Replacement" conspiracy theory, which purports that Jewish people and leftists are engineering the ethnic and cultural replacement of white populations with non-white immigrants that will lead to a "white genocide."
Musk apologized for his post during an interview at a New York Times DealBook event on Wednesday, but hurled expletives against advertisers that suspended their ads, accusing them of "blackmail."
An executive at a major ad-buying agency, who declined to be named, said X ad sales representatives appeared frustrated in the aftermath of Musk's outburst against brands and did not have much to say in conversations.
Major brands including Apple AAPL.O, Walt Disney DIS.N and Warner Bros Discovery WBD.O also suspended their ads on X this month following a report from liberal watchdog group Media Matters, which said ads had appeared next to antisemitic posts.
(Reporting by Siddharth Cavale in New York and Sheila Dang in Dallas; Editing by Chizu Nomiyama and Bill Berkrot)
((Sheila.Dang@thomsonreuters.com; +1 646-983-0894;))
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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Major brands including Apple AAPL.O, Walt Disney DIS.N and Warner Bros Discovery WBD.O also suspended their ads on X this month following a report from liberal watchdog group Media Matters, which said ads had appeared next to antisemitic posts. By Siddharth Cavale and Sheila Dang Dec 1 (Reuters) - Walmart WMT.N said on Friday it is not advertising on social media platform X, one of the latest brands to say it has dropped the Elon Musk-owned site. The platform has struggled to retain advertisers since Musk acquired the company in October 2022, and faced a fresh exodus in recent weeks over rising concern about antisemitic content.
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Major brands including Apple AAPL.O, Walt Disney DIS.N and Warner Bros Discovery WBD.O also suspended their ads on X this month following a report from liberal watchdog group Media Matters, which said ads had appeared next to antisemitic posts. By Siddharth Cavale and Sheila Dang Dec 1 (Reuters) - Walmart WMT.N said on Friday it is not advertising on social media platform X, one of the latest brands to say it has dropped the Elon Musk-owned site. (Reporting by Siddharth Cavale in New York and Sheila Dang in Dallas; Editing by Chizu Nomiyama and Bill Berkrot) ((Sheila.Dang@thomsonreuters.com; +1 646-983-0894;)) 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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Major brands including Apple AAPL.O, Walt Disney DIS.N and Warner Bros Discovery WBD.O also suspended their ads on X this month following a report from liberal watchdog group Media Matters, which said ads had appeared next to antisemitic posts. By Siddharth Cavale and Sheila Dang Dec 1 (Reuters) - Walmart WMT.N said on Friday it is not advertising on social media platform X, one of the latest brands to say it has dropped the Elon Musk-owned site. Earlier this month, Musk agreed with an X user who falsely claimed members of the Jewish community were stoking hatred against white people, saying the user was speaking "the actual truth."
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Major brands including Apple AAPL.O, Walt Disney DIS.N and Warner Bros Discovery WBD.O also suspended their ads on X this month following a report from liberal watchdog group Media Matters, which said ads had appeared next to antisemitic posts. By Siddharth Cavale and Sheila Dang Dec 1 (Reuters) - Walmart WMT.N said on Friday it is not advertising on social media platform X, one of the latest brands to say it has dropped the Elon Musk-owned site. X, formerly known as Twitter, did not immediately respond to a request for comment.
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12312.0
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2023-12-01 00:00:00 UTC
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Alphabet (GOOGL) Bolsters Nest Hub Series With Fuchsia 14
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AAPL
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https://www.nasdaq.com/articles/alphabet-googl-bolsters-nest-hub-series-with-fuchsia-14
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nan
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nan
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Alphabet GOOGL is enhancing its Google smart home devices portfolio on the back of new feature updates and releases.
Notably, Google unveiled Fuchsia version 14, a preview update of its in-house operating system, for the Nest Hub series.
Further, the new version, available to those enrolled in the Preview Program, enhances Matter support by improving transition time handling, color-related commands, matter update group support and updated subscriptions to all device fabrics.
Additionally, Fuchsia version 14 brings improvements to Nest Hub’s Wi-Fi and Bluetooth connectivity, enabling FastUDP on all platforms, addressing media playback time inaccuracy, resuming Bluetooth audio after video calls and improving latency.
Alphabet is expected to gain solid traction across users of smart home devices customers on the back of its latest move.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growth Prospects
Apart from the latest launch, Alphabet announced that Google’s smart home controller app, Google Home, will be available to everyone, with upgraded features including a new Favorites tab, improved camera interface, support for new device types and iPhone integration for Matter devices.
Additionally, Google enabled users to transfer their oldest Nest cameras to Google Home, with the Nest Cam Indoor being the first to do so, followed by the Nest Cam Outdoor.
All the above-mentioned endeavors are likely to strengthen the company’s presence in the booming smart home devices market.
Per a Fortune Business Insights report, the global smart home device market is expected to reach $338.28 billion by 2030, witnessing a CAGR of 20.1% during the period of 2023-2030.
We believe Alphabet’s growing prospects in the promising smart home devices market will likely instill investor optimism in the stock.
Alphabet has gained 55.2% on a year-to-date basis compared with the industry’s rise of 54.7%.
Moreover, all these launches will aid the 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%.
Stiff Competition
We note that the expanding smart home devices portfolio will continue to aid Alphabet to compete well with some notable industry players like Amazon AMZN and Apple AAPL, which are also making concerted efforts to gain a solid footing in the smart home market space.
Notably, Amazon expanded its family of Echo devices by introducing Echo Show 8, Echo Hub and Echo Frames, which are expected to deliver customized, proactive and intuitive Alexa experiences.
Further, Amazon infused generative AI into the Fire TV ecosystem to enable voice search, personalized recommendations and personalized content search based on specific preferences.
Meanwhile, Apple’s release of a second-generation powerful smart speaker, HomePod, which boasts advanced computational audio and Siri intelligence, immersive Spatial Audio tracks, allowing users to manage tasks, create automation and check room temperature and humidity, remains noteworthy.
Additionally, Apple released HomePod software update 17 and is set to release version 17.1, allowing users to mute phone calls and use HomePod minis or full-size speakers as speakers with Apple TV.
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, which currently sports a 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 35.2% in the year-to-date period. BMI’s long-term earnings growth rate is currently projected at 20.39%.
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
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : 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.
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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Stiff Competition We note that the expanding smart home devices portfolio will continue to aid Alphabet to compete well with some notable industry players like Amazon AMZN and Apple AAPL, which are also making concerted efforts to gain a solid footing in the smart home market space. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : 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. Notably, Google unveiled Fuchsia version 14, a preview update of its in-house operating system, for the Nest Hub series.
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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 Badger Meter, Inc. (BMI) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Stiff Competition We note that the expanding smart home devices portfolio will continue to aid Alphabet to compete well with some notable industry players like Amazon AMZN and Apple AAPL, which are also making concerted efforts to gain a solid footing in the smart home market space. Our model projects fourth-quarter 2023 Google Services revenues at $72.79 billion, indicating growth of 7.3% from 2022.
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Stiff Competition We note that the expanding smart home devices portfolio will continue to aid Alphabet to compete well with some notable industry players like Amazon AMZN and Apple AAPL, which are also making concerted efforts to gain a solid footing in the smart home market space. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : 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 Inc. Price and Consensus Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote Growth Prospects Apart from the latest launch, Alphabet announced that Google’s smart home controller app, Google Home, will be available to everyone, with upgraded features including a new Favorites tab, improved camera interface, support for new device types and iPhone integration for Matter devices.
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Stiff Competition We note that the expanding smart home devices portfolio will continue to aid Alphabet to compete well with some notable industry players like Amazon AMZN and Apple AAPL, which are also making concerted efforts to gain a solid footing in the smart home market space. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : 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 GOOGL is enhancing its Google smart home devices portfolio on the back of new feature updates and releases.
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12313.0
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2023-12-01 00:00:00 UTC
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Looking for Income? These 3 Unusually Active Options Should Generate Income Over the Next 7 Days
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AAPL
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https://www.nasdaq.com/articles/looking-for-income-these-3-unusually-active-options-should-generate-income-over-the-next-7
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nan
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nan
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The S&P 500 gained 8.9% in November, the second-best November performance since 1980. Only November 2020 did better. The penultimate month of the year is starting to look like a sure-fire winner. In the past decade, the index has finished in negative territory on just one occasion, in 2021.
The Federal Reserve is expected to leave interest rates alone when it meets for the last time in 2023 on Dec. 13. That should be good for stocks in December, prompting many to suggest that a Santa rally is here and could continue for weeks.
However, PNC Asset Management Group chief investment officer Amanda Agati told Yahoo Finance on Tuesday that a Santa Claus rally is unlikely.
“I think what we're left with is a bit of a rangebound kind of choppy market from here through year-end,” Agati said.
So, with uncertainty about the markets’ momentum, it might be time to look for a few income plays heading into December. These three unusually active options from Thursday should help get you started.
Have an excellent weekend!
Snowflake
Snowflake (SNOW) stock gained more than 26% over the past month. The data-as-a-service (DaaS) cloud computing company is now up 35% year-to-date, with one left in the year before closing the books on 2023 trading.
Although I wouldn’t sneeze at a 26% gain in a single month, SNOW stock has traded near $400 on two occasions in the past five years -- November 2021 and December 2020 -- so there’s plenty of room for Snowflake’s share price to run in the months ahead.
Berkshire Hathaway (BRK.B), Warren Buffett’s holding company, owns 1.9% of Snowflake, a position taken in 2020’s third quarter at an average price of $238.10, well above where it’s currently trading. He can afford to be patient with his investments.
Analysts generally like Snowflake. Of the 34 that cover its stock, 24 rate it a Moderate or Strong Buy (4.29 out of 5). However, the target price of $187.24 is only a few dollars higher than where it’s currently trading.
The company reported Q3 2024 results on Wednesday. They were very healthy, with revenues of $734 million, 32% higher than a year earlier and more than $20 million higher than the analyst estimate. On the bottom line, its adjusted earnings per share were $0.25, nine cents higher than the consensus.
It finished the quarter with remaining performance obligations of $3.7 billion, 23% higher than a year ago, with 436 customers generating more than $1 million over the trailing 12 months.
For 2024, it expects revenues to grow by 37% to $2.65 billion, with an operating margin of 7%, both higher than analyst expectations.
The income play is the Dec. 8 $180 put. If you sell one of those bad boys, you’ll pocket $140 per contract should its share price remain above $180 for the next week. The annualized yield of 42%. Should it fall to $180, your net price would be $178.60.
Given the latest results, it’s hard to see its shares retreating much between now and next Friday.
Apple
Apple (AAPL) had seven unusually active options on Thursday, with Vol/OI ratios ranging from a low of 1.30 to a high of 8.87.
I’ve narrowed it down to two calls: Dec. 8 $187.50 and Dec. 8 $197.50. The former Vol/OI was 8.87, while the latter’s was 1.99. Their ask prices were $3.55 and $0.11, respectively.
Ok, first, I’m going to assume you know why Apple is Berkshire Hathaway’s largest equity holding by a country mile, accounting for 48.2% of its $363 billion equity portfolio.
So, based on yesterday’s closing price of $189.95, AAPL stock has to rise by 2.6% or $5.02 in the next week to double your money on the $187.50 call. For the $197.50 call, the share price has to rise by 1.0% or $1.92 by next Friday to double your money.
As I write this, AAPL stock is up $1.40 in Friday trading, getting you nearly three-quarters of the way to the $1.92 bump needed on the $197.50 call. Today's ask price is up a penny to $0.12, with a $1.88 increase required to double your money.
This would be the safest of the three bets.
Beyond Meat
There is a good possibility that the struggling plant-based food company’s stock bottomed in late October at around $5.58. Since hitting a 52-week low, Beyond Meat (BYND) is up 34%. While it’s got a long way to go to get back to $235, where it traded in 2019, I think there are brighter times ahead for the company and its stock.
As I write this, halfway through Friday trading, Beyond Meat’s options volume is already at 16,402, nearly 80% of its 30-day average. The number of shares traded is relatively decent at 1.14 million, roughly half its 30-day average.
So, BYND had five options with unusual options activity on Thursday. I’m interested in the one with the highest volume-to-open-interest (Vol/OI) ratio. That would be the Dec. 8 $6.50 put with a 9.30 Vol/OI.
If you sell this contract, the bid of $0.35 is an annualized yield of 250%. It’s that high because of the risk associated with owning BYND stock.
While I understand one’s apprehension about making this bet -- it’s definitely an aggressive play -- I wouldn’t suggest it if it were longer than a week or two.
Beyond Meat reported its Q3 2023 results in early November, which were awful. Revenues fell 8.7% to $75.3 million, while it lost $57.5 million on an adjusted EBITDA basis, down from $73.8 million a year earlier.
“As we shared last week, we are conducting a review of our global operations for purposes of further and significantly reducing our operating expense base as we seek to accelerate our transition to a sustainable and, ultimately, profitable business,” stated CEO Ethan Brown.
Beyond Meat’s operating expenses fell by 29% to $182.3 million through the first nine months of the year. As it continues to hack away at its costs, the cash saved gives it more time to figure out a way out of the deep hole it’s dug for itself.
The company’s $1.15 billion in 0% convertible senior notes due March 15, 2027, have a fair value of $299 million, or just 26% of the face value. I’m not a credit expert, but those would be a possible contrarian buy, possibly a much better opportunity than its stock.
But that is a subject for another day.
More Options News from Barchart
Tesla Still Looks Attractive to Sellers of OTM Puts as an Income Play
Should You Follow Ryan Cohen Into Nordstrom?
2 Option Ideas To Consider This Thursday
Everything You Need to Know About Michael Burry's 'Big Short' Bet on Chip Stocks
On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (AAPL) had seven unusually active options on Thursday, with Vol/OI ratios ranging from a low of 1.30 to a high of 8.87. So, based on yesterday’s closing price of $189.95, AAPL stock has to rise by 2.6% or $5.02 in the next week to double your money on the $187.50 call. As I write this, AAPL stock is up $1.40 in Friday trading, getting you nearly three-quarters of the way to the $1.92 bump needed on the $197.50 call.
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Apple Apple (AAPL) had seven unusually active options on Thursday, with Vol/OI ratios ranging from a low of 1.30 to a high of 8.87. So, based on yesterday’s closing price of $189.95, AAPL stock has to rise by 2.6% or $5.02 in the next week to double your money on the $187.50 call. As I write this, AAPL stock is up $1.40 in Friday trading, getting you nearly three-quarters of the way to the $1.92 bump needed on the $197.50 call.
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So, based on yesterday’s closing price of $189.95, AAPL stock has to rise by 2.6% or $5.02 in the next week to double your money on the $187.50 call. Apple Apple (AAPL) had seven unusually active options on Thursday, with Vol/OI ratios ranging from a low of 1.30 to a high of 8.87. As I write this, AAPL stock is up $1.40 in Friday trading, getting you nearly three-quarters of the way to the $1.92 bump needed on the $197.50 call.
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So, based on yesterday’s closing price of $189.95, AAPL stock has to rise by 2.6% or $5.02 in the next week to double your money on the $187.50 call. Apple Apple (AAPL) had seven unusually active options on Thursday, with Vol/OI ratios ranging from a low of 1.30 to a high of 8.87. As I write this, AAPL stock is up $1.40 in Friday trading, getting you nearly three-quarters of the way to the $1.92 bump needed on the $197.50 call.
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12314.0
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2023-12-01 00:00:00 UTC
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US STOCKS-S&P, Nasdaq slip as caution prevails ahead of Powell comments
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-nasdaq-slip-as-caution-prevails-ahead-of-powell-comments
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nan
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nan
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By Shristi Achar A and Amruta Khandekar
Dec 1 (Reuters) - The S&P 500 and Nasdaq fell on Friday as investors were on edge ahead of Federal Reserve Chair Jerome Powell's comments that some fear may have a hawkish tilt towards monetary policy.
This comes after both the indexes finished November with their biggest monthly gain since July 2022, while the Dow Jones .DJI rallied to close at its highest level since January 2022.
The rally has been driven by a slew of recent data including Thursday's personal consumption expenditure index that signalled easing inflation and bolstered hopes the central bank would now end its interest rate hikes and could start lowering them soon.
But after recent conflicting policy remarks from some policymakers, investors are concerned that Powell could push back against the rate cut narrative. Powell is expected to speak at two separate events at 11 a.m. ET and 2 p.m. ET.
"Especially because of the ebullience of the markets over the last couple of weeks, there probably is a hawkish message that he's going to deliver today," said Kim Forrest, chief investment officer at Bokeh Capital Partners.
Investors will also monitor comments from Fed Governors Lisa Cook and Chicago Fed President Austan Goolsbee, scheduled to speak during the day.
A pause in rate hikes has been fully priced in for the upcoming December policy meeting, and traders also see an about 48% chance of at least a 25 basis point rate cut in March 2024 and an about 78% chance of another cut in May, according to CME Group's FedWatch tool.
At 9:37 a.m. ET, the Dow Jones Industrial Average .DJI was up 31.40 points, or 0.09%, at 35,982.29, the S&P 500 .SPX was down 9.04 points, or 0.20%, at 4,558.76, and the Nasdaq Composite .IXIC was down 68.61 points, or 0.48%, at 14,157.61.
TeslaTSLA.O underperformed megacap peers, falling 2.5% as the EV maker priced its Cybertruck above its initial forecast.
Also among top drags, PfizerPFE.N fell 6.5% as the drugmaker scrapped its plan to advance a twice-daily version of oral weight-loss drug danuglipron into late-stage studies.
Keeping the Dow Jones .DJI afloat was an about 1% rise in shares of aircraft firm Boeing BA.N and healthcare giant Johnson & Johnson JNJ.N.
Among other stocks, U.S.-listed shares of AlibabaBABA.N slipped 3.0% after Morgan Stanley downgraded the e-commerce giant, citing slower turnaround in customer management revenue (CMR).
Marvell TechnologyMRVL.O shed 6.7% after the chipmaker's fourth-quarter revenue forecast fell short of Street estimates.
Ulta BeautyULTA.O rose 10.6% after the cosmetics retailer raised the lower end of its annual net sales forecast and named Paula Oyibo its new chief financial officer.
Paramount GlobalPARA.O climbed 1% on a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount.
Declining issues outnumbered advancers for a 1.19-to-1 ratio on the NYSE and for a 1.55-to-1 ratio on the Nasdaq.
The S&P index recorded 19 new 52-week highs and one new low, while the Nasdaq recorded 19 new highs and 36 new lows.
U.S. inflation is falling https://tmsnrt.rs/3R3OjrB
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Shinjini Ganguli)
((Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar; amruta.khandekar@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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Paramount GlobalPARA.O climbed 1% on a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. By Shristi Achar A and Amruta Khandekar Dec 1 (Reuters) - The S&P 500 and Nasdaq fell on Friday as investors were on edge ahead of Federal Reserve Chair Jerome Powell's comments that some fear may have a hawkish tilt towards monetary policy. The rally has been driven by a slew of recent data including Thursday's personal consumption expenditure index that signalled easing inflation and bolstered hopes the central bank would now end its interest rate hikes and could start lowering them soon.
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Paramount GlobalPARA.O climbed 1% on a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. This comes after both the indexes finished November with their biggest monthly gain since July 2022, while the Dow Jones .DJI rallied to close at its highest level since January 2022. The S&P index recorded 19 new 52-week highs and one new low, while the Nasdaq recorded 19 new highs and 36 new lows.
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Paramount GlobalPARA.O climbed 1% on a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. By Shristi Achar A and Amruta Khandekar Dec 1 (Reuters) - The S&P 500 and Nasdaq fell on Friday as investors were on edge ahead of Federal Reserve Chair Jerome Powell's comments that some fear may have a hawkish tilt towards monetary policy. A pause in rate hikes has been fully priced in for the upcoming December policy meeting, and traders also see an about 48% chance of at least a 25 basis point rate cut in March 2024 and an about 78% chance of another cut in May, according to CME Group's FedWatch tool.
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Paramount GlobalPARA.O climbed 1% on a report the media company and Apple AAPL.O have discussed bundling their streaming services at a discount. By Shristi Achar A and Amruta Khandekar Dec 1 (Reuters) - The S&P 500 and Nasdaq fell on Friday as investors were on edge ahead of Federal Reserve Chair Jerome Powell's comments that some fear may have a hawkish tilt towards monetary policy. This comes after both the indexes finished November with their biggest monthly gain since July 2022, while the Dow Jones .DJI rallied to close at its highest level since January 2022.
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12315.0
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2023-12-01 00:00:00 UTC
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1 Glaring Risk for Apple Stock Investors That Just Got More Concerning
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AAPL
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https://www.nasdaq.com/articles/1-glaring-risk-for-apple-stock-investors-that-just-got-more-concerning
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nan
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nan
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Surprising news emerged from the Department of Justice's (DOJ) antitrust lawsuit against Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) recently. According to media reports, a witness stated that Apple (NASDAQ: AAPL) receives 36% of the Google Search revenue that goes through the Safari browser that Apple pre-installs on its devices. This was a startling figure and I think it highlights a weakness Apple investors need to be aware of now.
Apple and Google's search relationship
To put some context on Apple and Google's search distribution relationship, let's go back a few years. When Apple products saw a resurgence in popularity during the early 2000s, Google went to the hardware maker and struck a deal with it to make Google the default search engine on Apple's pre-installed Safari internet browser.
Recent reporting from The New York Times indicates that Google paid Apple around $18 billion in 2021 for the privilege, though it's not clear if that's on top of the 36% or not. Since search advertising provides the majority of Alphabet's $300 billion in annual revenue, it makes sense Google was willing to pay up to be the default.
Details of the Apple-Google agreement have been kept under wraps for many years, but thanks to the DOJ's current lawsuit , outsiders can now start to piece things together, including a witness's assertion that Apple receives 36% of the Google Search revenue earned through the Safari browser. In other words, for every $100 in revenue Alphabet earns through Safari, it pays $36 to Apple.
While many people were surprised by this testimony, some big numbers had been circulating -- as much as $20 billion annually that Alphabet pays to Apple each year. If $20 billion were the figure, at a 36% cut, that would mean Google Search earns about $55 billion in revenue through Safari.
Whatever the exact numbers are, suffice it to say Apple is receiving billions of dollars a year from Alphabet in exchange for making Google the default search engine on its mobile devices.
If the courts decide this deal is anticompetitive and the worst happens, that revenue stream could evaporate for Apple. While Apple could have ways to try to make up any lost revenue, there would be a lot of uncertainty in the situation, and that would be worrisome for Apple investors.
Estimating the potential impact to Apple
Over the 12 months ended in late September, Apple generated $383 billion in revenue. In that context, one might think that losing even the max rumored annual payment from Google ($20 billion) would be no big deal for the tech giant, as that's only 5% of the recent 12-month total. However, this would overlook the fact that Alphabet's distribution payments to Apple likely come at close to a 100% profit margin. Making Google the default search engine on Safari requires minimal work on Apple's part.
In that light, it's clearer why losing the search engine deal could have a major impact on Apple's financials. Over the 12 months ended in late September, Apple generated $114 billion in operating income. Shaving $20 billion off this number would amount to a 17.5% cut in its operating income. At the lower end of the rumors about annual payments -- $10 billion -- that would look like almost 9%.
The big risk for investors
Looking at Apple's stock price, I don't think investors are pricing in the possibility of Apple losing this distribution payment. The stock currently trades at a price-to-earnings ratio of 31, which is well above the market average. And it's not like Apple is lighting the world on fire with growth. After the pandemic-driven demand boom, its revenue has been stagnating, as have its earnings.
AAPL Revenue (Annual) data by YCharts
If the courts rule against Alphabet, it is unlikely that Apple would be able to replicate its deal with any other search engine provider. First, there's no other company in a position to make such a payment and, more importantly, if the courts rule against such preferential placement, then it's not allowed for anyone. Logically, it is all or nothing for Apple here.
Perhaps Apple could make it up with an internal Apple search engine product, but launching this would require a ton of development costs and would be going up against Google's 25 years of product improvements, creating a ton of uncertainty.
A big drop in earnings would likely result in at least a matching drop in Apple's share price. Yes, the company has a great brand, but it trades at 31 times earnings, is delivering no revenue growth, and is at risk of losing billions in annual profits at the hammer of a gavel. That doesn't seem like a recipe for good stock returns.
You can find a better blue chip to add to your portfolio than Apple right now. Avoid this stock for the time being.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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According to media reports, a witness stated that Apple (NASDAQ: AAPL) receives 36% of the Google Search revenue that goes through the Safari browser that Apple pre-installs on its devices. AAPL Revenue (Annual) data by YCharts If the courts rule against Alphabet, it is unlikely that Apple would be able to replicate its deal with any other search engine provider. Details of the Apple-Google agreement have been kept under wraps for many years, but thanks to the DOJ's current lawsuit , outsiders can now start to piece things together, including a witness's assertion that Apple receives 36% of the Google Search revenue earned through the Safari browser.
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According to media reports, a witness stated that Apple (NASDAQ: AAPL) receives 36% of the Google Search revenue that goes through the Safari browser that Apple pre-installs on its devices. AAPL Revenue (Annual) data by YCharts If the courts rule against Alphabet, it is unlikely that Apple would be able to replicate its deal with any other search engine provider. Apple and Google's search relationship To put some context on Apple and Google's search distribution relationship, let's go back a few years.
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According to media reports, a witness stated that Apple (NASDAQ: AAPL) receives 36% of the Google Search revenue that goes through the Safari browser that Apple pre-installs on its devices. AAPL Revenue (Annual) data by YCharts If the courts rule against Alphabet, it is unlikely that Apple would be able to replicate its deal with any other search engine provider. Apple and Google's search relationship To put some context on Apple and Google's search distribution relationship, let's go back a few years.
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According to media reports, a witness stated that Apple (NASDAQ: AAPL) receives 36% of the Google Search revenue that goes through the Safari browser that Apple pre-installs on its devices. AAPL Revenue (Annual) data by YCharts If the courts rule against Alphabet, it is unlikely that Apple would be able to replicate its deal with any other search engine provider. If $20 billion were the figure, at a 36% cut, that would mean Google Search earns about $55 billion in revenue through Safari.
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12316.0
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2023-12-01 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-10
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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 94% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
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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12317.0
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2023-12-01 00:00:00 UTC
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WSJ: Apple In Talks To Bundle Paramount+ With Apple TV+
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AAPL
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https://www.nasdaq.com/articles/wsj%3A-apple-in-talks-to-bundle-paramount-with-apple-tv
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nan
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nan
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(RTTNews) - As per a report published in The Wall Street Journal, Apple Inc. (AAPL) and Paramount Global are in talks to bundle Paramount+ and Apple TV+ together, resulting in a lesser cost to subscribers. Paramount+ is a direct-to-consumer digital subscription video on-demand and live streaming service from Paramount, which combines live sports, breaking news, and entertainment.
Paramount delivers premium content to audiences across platforms worldwide. It connects with billions of people—through studios, networks, streaming services, live events, merchandise, and more.
Shares of Paramount Global are up 2% in pre-market trade on Friday.
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) - As per a report published in The Wall Street Journal, Apple Inc. (AAPL) and Paramount Global are in talks to bundle Paramount+ and Apple TV+ together, resulting in a lesser cost to subscribers. Paramount delivers premium content to audiences across platforms worldwide. It connects with billions of people—through studios, networks, streaming services, live events, merchandise, and more.
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(RTTNews) - As per a report published in The Wall Street Journal, Apple Inc. (AAPL) and Paramount Global are in talks to bundle Paramount+ and Apple TV+ together, resulting in a lesser cost to subscribers. Paramount+ is a direct-to-consumer digital subscription video on-demand and live streaming service from Paramount, which combines live sports, breaking news, and entertainment. It connects with billions of people—through studios, networks, streaming services, live events, merchandise, and more.
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(RTTNews) - As per a report published in The Wall Street Journal, Apple Inc. (AAPL) and Paramount Global are in talks to bundle Paramount+ and Apple TV+ together, resulting in a lesser cost to subscribers. Paramount+ is a direct-to-consumer digital subscription video on-demand and live streaming service from Paramount, which combines live sports, breaking news, and entertainment. 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) - As per a report published in The Wall Street Journal, Apple Inc. (AAPL) and Paramount Global are in talks to bundle Paramount+ and Apple TV+ together, resulting in a lesser cost to subscribers. Paramount+ is a direct-to-consumer digital subscription video on-demand and live streaming service from Paramount, which combines live sports, breaking news, and entertainment. Paramount delivers premium content to audiences across platforms worldwide.
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12318.0
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2023-12-01 00:00:00 UTC
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Apple, Paramount discuss bundling their streaming services - WSJ
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AAPL
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https://www.nasdaq.com/articles/apple-paramount-discuss-bundling-their-streaming-services-wsj
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nan
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nan
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Adds share movement in paragraph 2, details from report in paragraphs 3-4
Dec 1 (Reuters) - Apple AAPL.O and Paramount Global PARA.O have discussed bundling their streaming services at a discount, the Wall Street Journal reported on Friday.
Shares of media company Paramount rose 3% in premarket trading.
The companies have talked about offering a combined Paramount+ and Apple TV+ offering that would cost less than subscribing to both services separately, the report said, citing people familiar with the discussions.
The talks are in their early stages, and it is unclear what shape the bundle could take, the report added.
Apple and Paramount did not immediately respond to Reuters requests for comment.
(Reporting by Chavi Mehta in Bengaluru; Editing by Pooja Desai and Devika Syamnath)
((Chavi.Mehta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds share movement in paragraph 2, details from report in paragraphs 3-4 Dec 1 (Reuters) - Apple AAPL.O and Paramount Global PARA.O have discussed bundling their streaming services at a discount, the Wall Street Journal reported on Friday. The talks are in their early stages, and it is unclear what shape the bundle could take, the report added. (Reporting by Chavi Mehta in Bengaluru; Editing by Pooja Desai and Devika Syamnath) ((Chavi.Mehta@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds share movement in paragraph 2, details from report in paragraphs 3-4 Dec 1 (Reuters) - Apple AAPL.O and Paramount Global PARA.O have discussed bundling their streaming services at a discount, the Wall Street Journal reported on Friday. Shares of media company Paramount rose 3% in premarket trading. The companies have talked about offering a combined Paramount+ and Apple TV+ offering that would cost less than subscribing to both services separately, the report said, citing people familiar with the discussions.
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Adds share movement in paragraph 2, details from report in paragraphs 3-4 Dec 1 (Reuters) - Apple AAPL.O and Paramount Global PARA.O have discussed bundling their streaming services at a discount, the Wall Street Journal reported on Friday. The companies have talked about offering a combined Paramount+ and Apple TV+ offering that would cost less than subscribing to both services separately, the report said, citing people familiar with the discussions. (Reporting by Chavi Mehta in Bengaluru; Editing by Pooja Desai and Devika Syamnath) ((Chavi.Mehta@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds share movement in paragraph 2, details from report in paragraphs 3-4 Dec 1 (Reuters) - Apple AAPL.O and Paramount Global PARA.O have discussed bundling their streaming services at a discount, the Wall Street Journal reported on Friday. Shares of media company Paramount rose 3% in premarket trading. The companies have talked about offering a combined Paramount+ and Apple TV+ offering that would cost less than subscribing to both services separately, the report said, citing people familiar with the discussions.
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12319.0
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2023-12-01 00:00:00 UTC
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Nvidia Remains a Must-Own Growth Stock. Here’s Why.
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AAPL
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https://www.nasdaq.com/articles/nvidia-remains-a-must-own-growth-stock.-heres-why.
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With global demand for its microchips and semiconductors accelerating, and the development of AI in its infancy, Nvidia (NASDAQ:NVDA) stock remains a must-own growth play that can carry investors to future riches.
As we close out 2023, the company’s share price has more than tripled since last January, bringing its five-year gain to more than 1,000%. The company achieved a $1 trillion market capitalization earlier this year, and analysts see more runway ahead. The median price target on the stock is 35% higher than current levels. Investors who don’t yet have a position in Nvidia stock would be smart to get one now.
A Closer Look at NVDA Stock
The numbers being put up by Nvidia through its quarterly financial reports are astounding. Few if any other companies are growing at such a fast rate. The company’s most recent print for what was its fiscal third quarter contained some mind-boggling stats.
Revenues in fiscal Q3 rose 206% from a year earlier to a record $18.2 billion. Net income for the quarter came in a $9.2 billion, a 13 times increase over the last year, while net profit margins expanded to a record 51%.
Looking ahead, Nvidia projected revenue for its current fiscal fourth quarter of $20 billion, which represents 231% year-over-year growth.
All of this is being driven by huge demand for its microchips and semiconductors that are used to power complex AI models and applications. In recent weeks, Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and privately held OpenAI have each announced plans to start making their own AI microchips in house simply because they can’t get enough Nvidia chips.
Against this background of skyrocketing global demand, Nvidia recently launched its most powerful microchip yet, the “GH200 GPU,” which has more memory than its current H100 chip and an additional processor.
The company is already seeing huge demand for the new GH200 GPU chip, and it is expected to further drive sales and profits into 2024 and beyond.
Attractive Valuation
One of the many benefits of Nvidia’s record breaking financial results and enormous growth is that it has pushed the company’s stock valuation lower. In fact, NVDA stock has the most attractive valuation of the so-called “Magnificent Seven” securities.
Nvidia’s shares currently trade at an earnings-per-share multiple of around 23 times its 2024 earnings forecast, and 20 times its forecasted earnings for 2025. That makes Nvidia a cheaper stock to buy than either Apple (NASDAQ:AAPL) or Microsoft.
Nvidia’s current valuation puts it in line with the average price-earnings ratio of stocks listed on the benchmark S&P 500 index.
For a company of Nvidia’s size and growth, the current valuation makes it look cheap, especially when compared to other mega-cap tech stocks. There’s also an opportunity to buy NVDA stock right now as the share price has retreated about 5% since its recent earnings.
Some analysts blame the pullback on the stock’s growth being fully priced into the share price; others point to China.
The China Issue
If there’s one cloud hanging over Nvidia right now, other than pressure to meet demand for its technologies, it is China. NVDA stock took a hit earlier this fall when the Biden administration announced export controls on microchips and semiconductors from American companies.
The White House is trying to prevent China from accessing advanced western technologies for fear that the government in Beijing will use them to enhance their military capabilities.
For Nvidia, which derives 25% of its annual revenue from the Chinese market, the export controls have proven to be a problem.
Fortunately, the chip maker appears to have found a way to continue selling its high-end microchips and semiconductors to Chinese companies without violating U.S. laws.
Nvidia has announced plans to sell less powerful versions of its microchips to domestic manufacturers in China. The chips sold to China only have about 50% of the computing power of the company’s top tier H100 chip.
The new low powered chips comply with U.S. export restrictions pertaining to China. Nvidia is also continuing to sell microchips to China that are used in electric vehicles that are being developed in the nation of 1.4 billion people.
There were recent media reports that Nvidia plans to delay the rollout of its new AI microchips for China until the first quarter of 2024. But this appears to be a very near-term problem that shouldn’t impact Nvidia’s long-term growth or share price appreciation.
Buy NVDA Stock
There’s an argument to be made that Nvidia is the most consequential company and stock of 2023. Certainly, no other company has contributed more to the AI revolution than Nvidia. And few stocks have benefitted as much from the market mania surrounding AI.
However, Nvidia has the financial results to justify its enormous share price appreciation. And its valuation looks attractive as a result. With more upside and growth ahead, investors would be foolish to sit out the rally. NVDA stock is a buy.
On the date of publication, Joel Baglole held long positions in NVDA, MSFT and AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post Nvidia Remains a Must-Own Growth Stock. Here’s Why. 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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That makes Nvidia a cheaper stock to buy than either Apple (NASDAQ:AAPL) or Microsoft. On the date of publication, Joel Baglole held long positions in NVDA, MSFT and AAPL. Against this background of skyrocketing global demand, Nvidia recently launched its most powerful microchip yet, the “GH200 GPU,” which has more memory than its current H100 chip and an additional processor.
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That makes Nvidia a cheaper stock to buy than either Apple (NASDAQ:AAPL) or Microsoft. On the date of publication, Joel Baglole held long positions in NVDA, MSFT and AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips With global demand for its microchips and semiconductors accelerating, and the development of AI in its infancy, Nvidia (NASDAQ:NVDA) stock remains a must-own growth play that can carry investors to future riches.
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That makes Nvidia a cheaper stock to buy than either Apple (NASDAQ:AAPL) or Microsoft. On the date of publication, Joel Baglole held long positions in NVDA, MSFT and AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips With global demand for its microchips and semiconductors accelerating, and the development of AI in its infancy, Nvidia (NASDAQ:NVDA) stock remains a must-own growth play that can carry investors to future riches.
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That makes Nvidia a cheaper stock to buy than either Apple (NASDAQ:AAPL) or Microsoft. On the date of publication, Joel Baglole held long positions in NVDA, MSFT and AAPL. InvestorPlace - Stock Market News, Stock Advice & Trading Tips With global demand for its microchips and semiconductors accelerating, and the development of AI in its infancy, Nvidia (NASDAQ:NVDA) stock remains a must-own growth play that can carry investors to future riches.
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12320.0
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2023-12-01 00:00:00 UTC
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Should You Really Invest in Stocks Now -- or Wait Until the New Year?
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AAPL
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https://www.nasdaq.com/articles/should-you-really-invest-in-stocks-now-or-wait-until-the-new-year
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nan
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nan
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The market is rallying, with all three major indexes climbing and top stocks such as Amazon (NASDAQ: AMZN), Tesla (NASDAQ: TSLA), and Apple (NASDAQ: AAPL) leading the way. These industry leaders and many of today's other best performers suffered last year, as indexes wandered into bear territory. In spite of this year's gains, though, we still haven't reached that phase of expansion we're all waiting for: the next bull market.
At the same time, economic woes such as high prices still are weighing on consumers and businesses -- an element that could hold back spending and put a dent in corporate earnings, therefore weighing on stock prices. And as we step into December, many people are thinking more about preparing for the holidays than investing.
So, even though recent stock market gains are a reason to cheer, should you really invest now -- or wait until the new year? Let's find out.
Image source: Getty Images.
The Santa Claus rally
The whole month of December doesn't necessarily follow any sort of trend when it comes to gains or losses. For example, December brought the S&P 500 index a loss of about 5% last year and a gain of about as much in the previous year.
But, generally, the last five trading days of the year and the first two of the new year show something different: an increase in the S&P 500 known as the Santa Claus rally. This generally results in the index climbing a little more than 1% during the trading period.
If you happen to be invested in stocks that join in on this rally, wonderful! But the Santa Claus rally isn't a good argument for buying stocks right now. First, stocks you choose may not even take part in this rally, and second, over the long run, gains of a few percentage points won't make much of a difference in your overall returns.
At the same time, I wouldn't necessarily avoid stocks because economic headwinds remain. Market environments are temporary, and history shows us bear markets have always led to bull markets. So, even if we can't pinpoint exactly when the time of market expansion will arrive, we know it's on the way.
Let's consider another factor: Yes, we know better times are ahead, but it's possible that before reaching that point, some stocks could fall further. We might be tempted to wait until the economy and the stock market both are looking great -- and then start buying. The problem there is it's pretty much impossible to predict a stock's low point, and while waiting, you could miss out on great buying opportunities.
The importance of long-term investing
Now, let's talk about what all of this means for you right now. If you invest for the long term -- and that's the best way to invest -- any time is a great time to buy stocks. As I mentioned, when you're holding stocks for a number of years, a gain or loss of a few percentage points won't make a big difference.
Instead, examine a stock's valuation, and if it looks reasonably priced, now makes a fine time to scoop up the shares.
The points I've talked about -- the Santa Claus rally, today's economy, or even a stock's possible bottom -- all impact short-term investing. Luckily, as long-term investors, we don't have to worry so much about these elements and instead can focus on companies' prospects over the long haul.
Holding for the long term implies at least five years, but you often can generate even better returns if you extend that to a decade or more. This allows the company time to develop, grow earnings, or even recover and go on to excel if it's been through a difficult period -- and it offers you time to benefit from all of this.
Year-end investing could be right for you
I said any time is a good time to invest, and I mean that, but the end of the year represents a particularly promising moment. That's because you can look back on your annual performance -- not just this year, but your performance in past years too -- and make adjustments to your holdings in order to start your new investing year off right.
For example, you might notice that dividend stocks have contributed significantly to your gains over time -- and you may want to add to those positions. Or, with the idea of a new bull market ahead, you could add to growth stocks -- especially if you're an aggressive investor.
Finally, investing also is about seizing opportunities as they arise, so if a particular stock interests you now, take action. It could pay off in 2024 and beyond.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adria Cimino has positions in Amazon and Tesla. The Motley Fool has positions in and recommends Amazon, Apple, 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 market is rallying, with all three major indexes climbing and top stocks such as Amazon (NASDAQ: AMZN), Tesla (NASDAQ: TSLA), and Apple (NASDAQ: AAPL) leading the way. First, stocks you choose may not even take part in this rally, and second, over the long run, gains of a few percentage points won't make much of a difference in your overall returns. The problem there is it's pretty much impossible to predict a stock's low point, and while waiting, you could miss out on great buying opportunities.
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The market is rallying, with all three major indexes climbing and top stocks such as Amazon (NASDAQ: AMZN), Tesla (NASDAQ: TSLA), and Apple (NASDAQ: AAPL) leading the way. First, stocks you choose may not even take part in this rally, and second, over the long run, gains of a few percentage points won't make much of a difference in your overall returns. As I mentioned, when you're holding stocks for a number of years, a gain or loss of a few percentage points won't make a big difference.
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The market is rallying, with all three major indexes climbing and top stocks such as Amazon (NASDAQ: AMZN), Tesla (NASDAQ: TSLA), and Apple (NASDAQ: AAPL) leading the way. So, even though recent stock market gains are a reason to cheer, should you really invest now -- or wait until the new year? If you invest for the long term -- and that's the best way to invest -- any time is a great time to buy stocks.
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The market is rallying, with all three major indexes climbing and top stocks such as Amazon (NASDAQ: AMZN), Tesla (NASDAQ: TSLA), and Apple (NASDAQ: AAPL) leading the way. For example, December brought the S&P 500 index a loss of about 5% last year and a gain of about as much in the previous year. If you invest for the long term -- and that's the best way to invest -- any time is a great time to buy stocks.
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12321.0
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2023-12-01 00:00:00 UTC
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CMA Wins Appeal From UK High Court In Apple Case
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AAPL
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https://www.nasdaq.com/articles/cma-wins-appeal-from-uk-high-court-in-apple-case
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nan
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nan
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(RTTNews) - The Competition and Markets Authority or CMA has won an appeal from UK High Court, allowing it to open a market investigation into mobile browsers and cloud gaming, mainly of tech major Apple Inc. (AAPL).
The ruling overturns the Competition Appeal Tribunal or CAT's decision in March 2023, which upheld an appeal by Apple and suspended CMA's investigation.
In a unanimous judgement, High Court now found that CAT had erred in its interpretation of the Enterprise Act 2002.
The UK regulator had exercised its power under the Enterprise Act 2002 to make a market investigation reference in relation to the market for mobile browsers and cloud gaming in November 2022.
The lawfulness of that decision was challenged by Apple by appealing to the CAT which was heard on March 10.
CAT then had upheld the appeal made by Apple and suspended the CMA's investigation pending the Court of Appeal's judgment on March 31.
Following this, CMA appealed the CAT's judgment. The judges, including Lord Justice Green, Lord Justice Arnold, and the Chancellor of the High Court, now ruled that CMA's standalone power carries with it sufficient and important public law safeguards, overturning the CAT's decision.
"There is no overarching principle that an undertaking is entitled to be investigated once and only once. The principal purpose of the Enterprise Act is to promote competition and protect consumers" and, in its view, the Tribunal "lost sight of this consideration", the court said in a statement.
On Thursday, Apple shares are trading at $189.95, up 0.31% in the Nasdaq.
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) - The Competition and Markets Authority or CMA has won an appeal from UK High Court, allowing it to open a market investigation into mobile browsers and cloud gaming, mainly of tech major Apple Inc. (AAPL). In a unanimous judgement, High Court now found that CAT had erred in its interpretation of the Enterprise Act 2002. The judges, including Lord Justice Green, Lord Justice Arnold, and the Chancellor of the High Court, now ruled that CMA's standalone power carries with it sufficient and important public law safeguards, overturning the CAT's decision.
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(RTTNews) - The Competition and Markets Authority or CMA has won an appeal from UK High Court, allowing it to open a market investigation into mobile browsers and cloud gaming, mainly of tech major Apple Inc. (AAPL). The ruling overturns the Competition Appeal Tribunal or CAT's decision in March 2023, which upheld an appeal by Apple and suspended CMA's investigation. CAT then had upheld the appeal made by Apple and suspended the CMA's investigation pending the Court of Appeal's judgment on March 31.
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(RTTNews) - The Competition and Markets Authority or CMA has won an appeal from UK High Court, allowing it to open a market investigation into mobile browsers and cloud gaming, mainly of tech major Apple Inc. (AAPL). The ruling overturns the Competition Appeal Tribunal or CAT's decision in March 2023, which upheld an appeal by Apple and suspended CMA's investigation. CAT then had upheld the appeal made by Apple and suspended the CMA's investigation pending the Court of Appeal's judgment on March 31.
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(RTTNews) - The Competition and Markets Authority or CMA has won an appeal from UK High Court, allowing it to open a market investigation into mobile browsers and cloud gaming, mainly of tech major Apple Inc. (AAPL). The ruling overturns the Competition Appeal Tribunal or CAT's decision in March 2023, which upheld an appeal by Apple and suspended CMA's investigation. The lawfulness of that decision was challenged by Apple by appealing to the CAT which was heard on March 10.
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12322.0
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2023-12-01 00:00:00 UTC
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Apple To Be First And Largest Customer Of Amkor's $2 Bln Chip Packaging Plant
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AAPL
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https://www.nasdaq.com/articles/apple-to-be-first-and-largest-customer-of-amkors-%242-bln-chip-packaging-plant
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nan
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(RTTNews) - Apple Inc. announced it will be the first and largest customer of Amkor Technology, Inc.'s new $2 billion advanced silicon manufacturing and packaging facility being developed in Peoria, Arizona. The expanded partnership supports the tech major's efforts to manufacture its products in the United States.
With its new advanced packaging and test facility, Amkor, a provider of semiconductor packaging and test services, said it is enabling a resilient domestic semiconductor supply chain.
The new facility, which is expected to employ around 2,000 people upon completion, will package Apple silicon produced at the nearby Taiwan Semiconductor Manufacturing Co Ltd. or TSMC fab, where Apple is also the largest customer.
Upon completion, the new facility would be the largest outsourced advanced packaging facility in the U.S.
For the plant, Amkor has secured around 55 acres of land with intent to build a state-of-the-art manufacturing campus with more than 500,000 square feet of clean room space. It is expected that the first phase of the manufacturing plant would be ready for production within the next two to three years.
According to Amkor, it is the only US-headquartered outsourced semiconductor assembly and test or OSAT service provider with advanced packaging technology capability and high-volume manufacturing experience.
Jeff Williams, Apple's chief operating officer, said, "Apple is deeply committed to the future of American manufacturing, and we'll continue to expand our investment here in the United States.... Apple and Amkor have worked together for more than a decade packaging chips used extensively in all Apple products, and we are thrilled that this partnership will now deliver the largest OSAT advanced packaging facility in the United States."
Arizona Senator Mark Kelly added that Amkor's $2 billion project will create good-paying jobs, strengthen local economy, and help protect national security, as well as help reduce dependence on other countries in the microchip supply chain.
Commerce Secretary Gina Raimondo recently highlighted advanced packaging as a major area of focus for the US government's effort to rebuild American semiconductor manufacturing. According to the Commerce Department, developing robust advanced manufacturing capacity and capability is a key priority and essential to the success of the CHIPS program.
Apple in 2021 had committed to invest $430 billion in the U.S. economy over five years. The company is expecting to meet its target through direct spend with American suppliers, data center investments, capital expenditures in the U.S., and other domestic spend.
Amkor further said it has applied for funding for the new facility from CHIPS and Science Act, which was established to boost US competitiveness, innovation, and national security in the semiconductor industry.
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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According to Amkor, it is the only US-headquartered outsourced semiconductor assembly and test or OSAT service provider with advanced packaging technology capability and high-volume manufacturing experience. Arizona Senator Mark Kelly added that Amkor's $2 billion project will create good-paying jobs, strengthen local economy, and help protect national security, as well as help reduce dependence on other countries in the microchip supply chain. Commerce Secretary Gina Raimondo recently highlighted advanced packaging as a major area of focus for the US government's effort to rebuild American semiconductor manufacturing.
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(RTTNews) - Apple Inc. announced it will be the first and largest customer of Amkor Technology, Inc.'s new $2 billion advanced silicon manufacturing and packaging facility being developed in Peoria, Arizona. With its new advanced packaging and test facility, Amkor, a provider of semiconductor packaging and test services, said it is enabling a resilient domestic semiconductor supply chain. According to Amkor, it is the only US-headquartered outsourced semiconductor assembly and test or OSAT service provider with advanced packaging technology capability and high-volume manufacturing experience.
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(RTTNews) - Apple Inc. announced it will be the first and largest customer of Amkor Technology, Inc.'s new $2 billion advanced silicon manufacturing and packaging facility being developed in Peoria, Arizona. With its new advanced packaging and test facility, Amkor, a provider of semiconductor packaging and test services, said it is enabling a resilient domestic semiconductor supply chain. Jeff Williams, Apple's chief operating officer, said, "Apple is deeply committed to the future of American manufacturing, and we'll continue to expand our investment here in the United States.... Apple and Amkor have worked together for more than a decade packaging chips used extensively in all Apple products, and we are thrilled that this partnership will now deliver the largest OSAT advanced packaging facility in the United States."
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(RTTNews) - Apple Inc. announced it will be the first and largest customer of Amkor Technology, Inc.'s new $2 billion advanced silicon manufacturing and packaging facility being developed in Peoria, Arizona. The new facility, which is expected to employ around 2,000 people upon completion, will package Apple silicon produced at the nearby Taiwan Semiconductor Manufacturing Co Ltd. or TSMC fab, where Apple is also the largest customer. Apple in 2021 had committed to invest $430 billion in the U.S. economy over five years.
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12323.0
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2023-11-30 00:00:00 UTC
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UK antitrust regulator wins appeal over Apple probe
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AAPL
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https://www.nasdaq.com/articles/uk-antitrust-regulator-wins-appeal-over-apple-probe
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nan
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nan
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Adds details from ruling and CMA comment in paragraphs 4-6
LONDON, Nov 30 (Reuters) - Britain's antitrust regulator won an appeal on Thursday against a ruling blocking its investigation into Apple Inc's AAPL.O mobile browser and cloud gaming services.
The Competition and Markets Authority (CMA) opened a full investigation last year into the dominance of Apple and Alphabet Inc's Google GOOGL.O in mobile browsers, and the possibility of the iPhone maker restricting the cloud gaming market through its app store.
Apple argued that the CMA had "no power" to launch such an inquiry because it did so too late and the Competition Appeal Tribunal (CAT) ruled in Apple's favour in March, but the Court of Appeal in London overturned that decision on Thursday.
Judge Nicholas Green said in a written ruling that the CAT had "lost sight" of the CMA's role to "promote competition and protect consumers".
Sarah Cardell, chief executive of the CMA, welcomed the decision which she said "gives the CMA the backing it needs to protect consumers and promote competition in UK".
She added that the CMA is ready to reopen the investigation "when the legal process is complete".
(Reporting by Sam Tobin; editing by Michael Holden)
((Sam.Tobin@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 ruling and CMA comment in paragraphs 4-6 LONDON, Nov 30 (Reuters) - Britain's antitrust regulator won an appeal on Thursday against a ruling blocking its investigation into Apple Inc's AAPL.O mobile browser and cloud gaming services. The Competition and Markets Authority (CMA) opened a full investigation last year into the dominance of Apple and Alphabet Inc's Google GOOGL.O in mobile browsers, and the possibility of the iPhone maker restricting the cloud gaming market through its app store. Judge Nicholas Green said in a written ruling that the CAT had "lost sight" of the CMA's role to "promote competition and protect consumers".
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Adds details from ruling and CMA comment in paragraphs 4-6 LONDON, Nov 30 (Reuters) - Britain's antitrust regulator won an appeal on Thursday against a ruling blocking its investigation into Apple Inc's AAPL.O mobile browser and cloud gaming services. Apple argued that the CMA had "no power" to launch such an inquiry because it did so too late and the Competition Appeal Tribunal (CAT) ruled in Apple's favour in March, but the Court of Appeal in London overturned that decision on Thursday. Sarah Cardell, chief executive of the CMA, welcomed the decision which she said "gives the CMA the backing it needs to protect consumers and promote competition in UK".
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Adds details from ruling and CMA comment in paragraphs 4-6 LONDON, Nov 30 (Reuters) - Britain's antitrust regulator won an appeal on Thursday against a ruling blocking its investigation into Apple Inc's AAPL.O mobile browser and cloud gaming services. The Competition and Markets Authority (CMA) opened a full investigation last year into the dominance of Apple and Alphabet Inc's Google GOOGL.O in mobile browsers, and the possibility of the iPhone maker restricting the cloud gaming market through its app store. Apple argued that the CMA had "no power" to launch such an inquiry because it did so too late and the Competition Appeal Tribunal (CAT) ruled in Apple's favour in March, but the Court of Appeal in London overturned that decision on Thursday.
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Adds details from ruling and CMA comment in paragraphs 4-6 LONDON, Nov 30 (Reuters) - Britain's antitrust regulator won an appeal on Thursday against a ruling blocking its investigation into Apple Inc's AAPL.O mobile browser and cloud gaming services. Judge Nicholas Green said in a written ruling that the CAT had "lost sight" of the CMA's role to "promote competition and protect consumers". Sarah Cardell, chief executive of the CMA, welcomed the decision which she said "gives the CMA the backing it needs to protect consumers and promote competition in UK".
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12324.0
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2023-11-30 00:00:00 UTC
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Japan aircon king Daikin looks to custom chips for energy savings
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AAPL
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https://www.nasdaq.com/articles/japan-aircon-king-daikin-looks-to-custom-chips-for-energy-savings
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nan
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nan
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By Sam Nussey and Miho Uranaka
TOKYO, Dec 1 (Reuters) - Japanese air conditioner maker Daikin Industries 6367.T is turning to custom-made semiconductors to eke out energy savings, as companies increasingly look to bespoke chip designs to enhance performance.
As tech heavyweights such as Apple AAPL.O and Amazon AMZN.O spend heavily on custom cutting-edge chips, companies using legacy chips are also looking to introduce custom silicon.
Osaka-headquartered Daikin, which expects to make 10 million home air conditioners in the current financial year, said it is partnering with a Japanese design company to customise logic chips for inverters used in its air conditioners.
Inverters adjust the speed of an air conditioner's motor to save energy. They are standard in Japan and the European Union but less common in the United States.
The custom chips, to be made by Taiwan's TSMC 2330.TW, cost more than off-the-shelf alternatives but offer better energy efficiency and allow a reduction in the use of other components, according to a Daikin executive.
"To bring out the full performance of an air conditioner's compressor and motor, we need to improve chip performance or we will hit a limit," Yuji Yoneda, general manger of Daikin's technology and innovation centre, said in an interview.
Daikin plans to start introducing the chips in high-end air conditioners from 2025 and is looking at using them in about a fifth of units by the end of the decade.
The company, which developed Japan's first packaged air conditioner in 1951, is also working on customised power modules, which help manage the air conditioner's electricity supply.
Daikin has been hiring engineers from the chip industry to work on customisation while grappling with competition due to a stream of investment in the domestic semiconductor industry.
Daikin hopes an increased focus on energy efficiency will be a tailwind for the company. The number of air conditioners globally is expected to more than triple to 5.6 billion units by 2050, according to the International Energy Agency.
(Reporting by Sam Nussey; Editing by Jamie Freed)
((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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As tech heavyweights such as Apple AAPL.O and Amazon AMZN.O spend heavily on custom cutting-edge chips, companies using legacy chips are also looking to introduce custom silicon. By Sam Nussey and Miho Uranaka TOKYO, Dec 1 (Reuters) - Japanese air conditioner maker Daikin Industries 6367.T is turning to custom-made semiconductors to eke out energy savings, as companies increasingly look to bespoke chip designs to enhance performance. The custom chips, to be made by Taiwan's TSMC 2330.TW, cost more than off-the-shelf alternatives but offer better energy efficiency and allow a reduction in the use of other components, according to a Daikin executive.
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As tech heavyweights such as Apple AAPL.O and Amazon AMZN.O spend heavily on custom cutting-edge chips, companies using legacy chips are also looking to introduce custom silicon. By Sam Nussey and Miho Uranaka TOKYO, Dec 1 (Reuters) - Japanese air conditioner maker Daikin Industries 6367.T is turning to custom-made semiconductors to eke out energy savings, as companies increasingly look to bespoke chip designs to enhance performance. Osaka-headquartered Daikin, which expects to make 10 million home air conditioners in the current financial year, said it is partnering with a Japanese design company to customise logic chips for inverters used in its air conditioners.
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As tech heavyweights such as Apple AAPL.O and Amazon AMZN.O spend heavily on custom cutting-edge chips, companies using legacy chips are also looking to introduce custom silicon. By Sam Nussey and Miho Uranaka TOKYO, Dec 1 (Reuters) - Japanese air conditioner maker Daikin Industries 6367.T is turning to custom-made semiconductors to eke out energy savings, as companies increasingly look to bespoke chip designs to enhance performance. Osaka-headquartered Daikin, which expects to make 10 million home air conditioners in the current financial year, said it is partnering with a Japanese design company to customise logic chips for inverters used in its air conditioners.
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As tech heavyweights such as Apple AAPL.O and Amazon AMZN.O spend heavily on custom cutting-edge chips, companies using legacy chips are also looking to introduce custom silicon. By Sam Nussey and Miho Uranaka TOKYO, Dec 1 (Reuters) - Japanese air conditioner maker Daikin Industries 6367.T is turning to custom-made semiconductors to eke out energy savings, as companies increasingly look to bespoke chip designs to enhance performance. Osaka-headquartered Daikin, which expects to make 10 million home air conditioners in the current financial year, said it is partnering with a Japanese design company to customise logic chips for inverters used in its air conditioners.
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12325.0
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2023-11-30 00:00:00 UTC
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Judge set to rule on Berkshire Hathaway request for speedy trial over Pilot unit
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AAPL
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https://www.nasdaq.com/articles/judge-set-to-rule-on-berkshire-hathaway-request-for-speedy-trial-over-pilot-unit
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nan
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By Jonathan Stempel
Nov 30 (Reuters) - A Delaware judge said she will decide by Friday whether to give Warren Buffett's Berkshire Hathaway BRKa.N a January trial date over a dispute of how to value truck stop operator Pilot Travel Centers, alongside a related lawsuit by the billionaire Haslam family.
Berkshire already owns 80% of Pilot, having paid the Haslams $2.76 billion for a 38.6% stake in 2017 and $8.2 billion for another 41.4% in January.
The dispute concerns how much Berkshire would owe if the Haslams, including Cleveland Browns owner Jimmy Haslam, exercised their option to sell the remaining 20% in the first two months of 2024.
Each side accuses the other of trying to manipulate Pilot's earnings, the basis for valuing that stake.
At a Thursday hearing in Delaware Chancery Court, Vice Chancellor Morgan Zurn told Berkshire's lawyer Craig Jennings Lavoie: "I am going to get you an answer by the end of the day tomorrow" on whether both cases can be tried together.
"I have to be satisfied that there is harm to your client that won't be remedied if I don't give you the equitable relief that you're asking for," Zurn said.
The Haslams sued Omaha, Nebraska-based Berkshire in October, accusing it of seeking a "windfall" by adopting "pushdown" accounting for Pilot, requiring it take on higher depreciation and amortization costs and lowering earnings.
Berkshire countersued on Nov. 28, saying Jimmy Haslam tried to bribe Pilot executives with millions of dollars to inflate earnings in 2023 at the expense of future years.
BERKSHIRE ALLEGES 'CLOUD OF MISCONDUCT'
At Thursday's hearing, Lavoie said Haslam made "at least 28" promises of secret side payments to Pilot executives, at above their annual salaries.
Lavoie said Haslam's push to align the executives' financial interests with his own amounted to a "cloud of misconduct" and "obvious breach of fiduciary duty," and Berkshire would be irreparably harmed if forced to possibly overpay for Pilot.
"We don't view it as a particularly complex case," Lavoie said.
Anitha Reddy, a lawyer for the Haslams, countered that Berkshire - which has one of corporate America's largest and strongest balance sheets - could not claim irreparable harm from possibly overpaying.
"How could they?" she said. "It's just a matter of money."
According to court papers, the Haslams believe the 20% Pilot stake was worth $3.2 billion before Berkshire's accounting change, an amount Berkshire disputes.
The family also includes former Tennessee Governor Bill Haslam, and Jimmy's father, Jim Haslam, who founded Pilot in 1958 after paying $6,000 for a Virginia gas station.
Pilot is based in Knoxville, Tennessee. It has approximately 800 locations in the United States and Canada, and has this year added $380 million to Berkshire's profit through September.
Buffett said at Berkshire's annual meeting in May he wished he could have bought all of Pilot in 2017, but the Haslams did not want to sell.
Berkshire also owns dozens of other businesses including the BNSF railroad and Geico car insurer, and big stakes in Apple AAPL.O, Bank of America BAC.N and other stocks.
The case is Pilot Corp v Abel et al, Delaware Chancery Court, No. 2023-1068-MTZ.
(Reporting by Jonathan Stempel in New York; Editing by Lincoln Feast.)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.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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Berkshire also owns dozens of other businesses including the BNSF railroad and Geico car insurer, and big stakes in Apple AAPL.O, Bank of America BAC.N and other stocks. By Jonathan Stempel Nov 30 (Reuters) - A Delaware judge said she will decide by Friday whether to give Warren Buffett's Berkshire Hathaway BRKa.N a January trial date over a dispute of how to value truck stop operator Pilot Travel Centers, alongside a related lawsuit by the billionaire Haslam family. At a Thursday hearing in Delaware Chancery Court, Vice Chancellor Morgan Zurn told Berkshire's lawyer Craig Jennings Lavoie: "I am going to get you an answer by the end of the day tomorrow" on whether both cases can be tried together.
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Berkshire also owns dozens of other businesses including the BNSF railroad and Geico car insurer, and big stakes in Apple AAPL.O, Bank of America BAC.N and other stocks. Berkshire already owns 80% of Pilot, having paid the Haslams $2.76 billion for a 38.6% stake in 2017 and $8.2 billion for another 41.4% in January. At a Thursday hearing in Delaware Chancery Court, Vice Chancellor Morgan Zurn told Berkshire's lawyer Craig Jennings Lavoie: "I am going to get you an answer by the end of the day tomorrow" on whether both cases can be tried together.
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Berkshire also owns dozens of other businesses including the BNSF railroad and Geico car insurer, and big stakes in Apple AAPL.O, Bank of America BAC.N and other stocks. By Jonathan Stempel Nov 30 (Reuters) - A Delaware judge said she will decide by Friday whether to give Warren Buffett's Berkshire Hathaway BRKa.N a January trial date over a dispute of how to value truck stop operator Pilot Travel Centers, alongside a related lawsuit by the billionaire Haslam family. Lavoie said Haslam's push to align the executives' financial interests with his own amounted to a "cloud of misconduct" and "obvious breach of fiduciary duty," and Berkshire would be irreparably harmed if forced to possibly overpay for Pilot.
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Berkshire also owns dozens of other businesses including the BNSF railroad and Geico car insurer, and big stakes in Apple AAPL.O, Bank of America BAC.N and other stocks. Berkshire already owns 80% of Pilot, having paid the Haslams $2.76 billion for a 38.6% stake in 2017 and $8.2 billion for another 41.4% in January. At Thursday's hearing, Lavoie said Haslam made "at least 28" promises of secret side payments to Pilot executives, at above their annual salaries.
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12326.0
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2023-11-30 00:00:00 UTC
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Analysts predict more brands will flee X after Musk tirade
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AAPL
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https://www.nasdaq.com/articles/analysts-predict-more-brands-will-flee-x-after-musk-tirade-0
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nan
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nan
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By Chavi Mehta and Jaspreet Singh
Nov 30 (Reuters) - More advertisers are likely to flee Elon Musk's social-media company X after the billionaire lashed out at some of the biggest names in the media industry at a New York Times DealBook event for dropping out of the platform, analysts said on Thursday.
Walt Disney DIS.N and Warner Bros. Discovery WBD.Osuspended advertising on X earlier this month following Musk's endorsement of an antisemitic post that falsely claimed members of the Jewish community were stoking hatred against white people.
After apologizing for his post at the event on Wednesday, Musk unleashed a profanity-laced tirade against some of the advertisers for fleeing the platform.
The Tesla TSLA.O chief also acknowledged that an extended boycott by advertisers could bankrupt X, formerly Twitter, but suggested that the public would blame the brands and not him for a potential collapse.
However, Insider Intelligence analyst Jasmine Enberg said, "If anyone is killing X, it's Elon Musk - not advertisers."
"Should X collapse, an autopsy would reveal a series of platform policy decisions, staffing cuts, tweets and antagonistic comments by Musk that have driven away X's primary source of revenue," Enberg said.
The company has come under fire for lax content moderation, especially from advertisers who do not want their ads appearing next to inappropriate content.
Ad spending on X in the United States from January through October this year declined 64%, compared with the same period in 2022, according to data from media analytics firm Guideline, which tracks advertising spending data from major ad agencies.
"We believe there is a risk that more companies will stop advertising on X; at least on a short-term basis," D.A. Davidson & Co analyst Tom Forte said.
"It is fair to say this makes the company's subscription efforts more important and potentially means it may need more than half its revenue to come from subscriptions," he said.
U.S. monthly active users also declined by about 19% since Musk acquired Twitter last year, according to research firm Data.ai.
Apple AAPL.O, IBM IBM.N, Sony 6758.T , Disney, Comcast CMCSA.O including NBC Universal, and Paramount PARA.O collectively accounted for 7% of total U.S. ad spend on X through October this year, Sensor Tower data showed
If more big brands flee, X will have to depend more on smaller advertisers to bolster revenue, according to Sensor Tower.
"Musk has stated that Twitter is worth a lot lesser than the $44 billion he had paid for it. It is hard to argue that will change quickly if advertisers take deep offence to what he said yesterday," said Russ Mould, investment director at AJ Bell.
X's U.S. monthly users dip after Musk buyout in late 2022 https://tmsnrt.rs/3Rm7Aps
(Reporting by Chavi Mehta and Jaspreet Singh in Bengaluru; Additional reporting by Aby Jose Koilparambil and Sheila Dang; Editing by Anil D'Silva)
((Chavi.Mehta@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O, IBM IBM.N, Sony 6758.T , Disney, Comcast CMCSA.O including NBC Universal, and Paramount PARA.O collectively accounted for 7% of total U.S. ad spend on X through October this year, Sensor Tower data showed If more big brands flee, X will have to depend more on smaller advertisers to bolster revenue, according to Sensor Tower. By Chavi Mehta and Jaspreet Singh Nov 30 (Reuters) - More advertisers are likely to flee Elon Musk's social-media company X after the billionaire lashed out at some of the biggest names in the media industry at a New York Times DealBook event for dropping out of the platform, analysts said on Thursday. Discovery WBD.Osuspended advertising on X earlier this month following Musk's endorsement of an antisemitic post that falsely claimed members of the Jewish community were stoking hatred against white people.
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Apple AAPL.O, IBM IBM.N, Sony 6758.T , Disney, Comcast CMCSA.O including NBC Universal, and Paramount PARA.O collectively accounted for 7% of total U.S. ad spend on X through October this year, Sensor Tower data showed If more big brands flee, X will have to depend more on smaller advertisers to bolster revenue, according to Sensor Tower. By Chavi Mehta and Jaspreet Singh Nov 30 (Reuters) - More advertisers are likely to flee Elon Musk's social-media company X after the billionaire lashed out at some of the biggest names in the media industry at a New York Times DealBook event for dropping out of the platform, analysts said on Thursday. Ad spending on X in the United States from January through October this year declined 64%, compared with the same period in 2022, according to data from media analytics firm Guideline, which tracks advertising spending data from major ad agencies.
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Apple AAPL.O, IBM IBM.N, Sony 6758.T , Disney, Comcast CMCSA.O including NBC Universal, and Paramount PARA.O collectively accounted for 7% of total U.S. ad spend on X through October this year, Sensor Tower data showed If more big brands flee, X will have to depend more on smaller advertisers to bolster revenue, according to Sensor Tower. By Chavi Mehta and Jaspreet Singh Nov 30 (Reuters) - More advertisers are likely to flee Elon Musk's social-media company X after the billionaire lashed out at some of the biggest names in the media industry at a New York Times DealBook event for dropping out of the platform, analysts said on Thursday. Ad spending on X in the United States from January through October this year declined 64%, compared with the same period in 2022, according to data from media analytics firm Guideline, which tracks advertising spending data from major ad agencies.
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Apple AAPL.O, IBM IBM.N, Sony 6758.T , Disney, Comcast CMCSA.O including NBC Universal, and Paramount PARA.O collectively accounted for 7% of total U.S. ad spend on X through October this year, Sensor Tower data showed If more big brands flee, X will have to depend more on smaller advertisers to bolster revenue, according to Sensor Tower. By Chavi Mehta and Jaspreet Singh Nov 30 (Reuters) - More advertisers are likely to flee Elon Musk's social-media company X after the billionaire lashed out at some of the biggest names in the media industry at a New York Times DealBook event for dropping out of the platform, analysts said on Thursday. However, Insider Intelligence analyst Jasmine Enberg said, "If anyone is killing X, it's Elon Musk - not advertisers."
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12327.0
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2023-11-30 00:00:00 UTC
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Netflix (NFLX) to Offer Grand Theft Auto Trilogy in December
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AAPL
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https://www.nasdaq.com/articles/netflix-nflx-to-offer-grand-theft-auto-trilogy-in-december
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nan
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nan
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Netflix NFLX has announced its intention to include the highly popular video game trilogy, Grand Theft Auto: The Trilogy – The Definitive Edition by Take-Two Interactive TTWO, to strengthen its position in the gaming industry.
The trilogy will be accessible to NFLX’s subscribers on the App Store, Google Play and within the Netflix mobile app starting Dec 14. This addition expands the company's collection, which already boasts more than 80 mobile games.
The Grand Theft Auto series is an iconic game, which has sold more than 410 million copies worldwide. The series includes games like Grand Theft Auto III, Grand Theft Auto: Vice City, Grand Theft Auto: San Andreas, Grand Theft Auto IV and Grand Theft Auto V.
The addition of Grand Theft Auto: The Trilogy is expected to significantly enhance the company's subscriber base and offerings.
Shares of NFLX, which currently carries a Zacks Rank #3 (Hold), have returned 61.8% compared with the Zacks Consumer Discretionary sector’s rise of 10.3% year to date. The outstanding performance can be credited to the continuous growth of the subscriber base and the strong lineup of content offerings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
Netflix’s Upcoming Games to Aid Top-Line Growth
Netflix's gaming strategy diverges from traditional console approaches, emphasizing complementarity rather than replacement. Rather than positioning itself as a console substitute, NFLX sees gaming as an enhancement to its existing streaming service.
The company’s upcoming games include titles like Money Heist, The Dragon Prince: Xadia and Death's Door. These upcoming games are expected to aid top-line growth in the upcoming quarters.
The Zacks Consensus Estimate for NFLX's 2023 revenues is pegged at $33.6 billion, indicating 6.26% year-over-year growth. The consensus mark for earnings is pegged at $12.07 per share, indicating 21.31% year-over-year growth.
The Money Heist game invites players to immerse themselves in an interactive environment and become part of the crew in the original heist at La Perla de Barcelona. The decisions made by the gamers will shape the outcome.
The Dragon Prince: Xadia is an action role-playing game with a cooperative and hero-based gameplay. Set in the world of Xadia and coinciding with the upcoming sixth season of the series, players can embody the legendary champions of Xadia and engage in cooperative missions to combat well-known villains from The Dragon Prince.
Death’s Door is centered around the task of reaping souls and maintaining a routine of punching a clock. The plot takes a thrilling turn when the player’s assigned soul is stolen, leading the individual on a quest to track down a desperate thief in a realm untouched by death.
Netflix faces formidable competition in the mobile gaming industry from giants like Microsoft MSFT and Apple AAPL.
Microsoft's acquisition of Activision Blizzard for $69 billion has positioned it as a major player, particularly with the inclusion of Activision's King mobile brand known for the popular Candy Crush Saga games. MSFT's overarching strategy involves making its Xbox Cloud Gaming platform available on mobile devices, offering a comprehensive solution for gamers seeking access to high-quality titles without the need for expensive consoles or PCs.
Apple represents a significant force in mobile gaming through its App Store. As gaming is one of AAPL's most lucrative sectors, it is committed to enhancing its gaming experience to grow its core business.
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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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Netflix faces formidable competition in the mobile gaming industry from giants like Microsoft MSFT and Apple AAPL. As gaming is one of AAPL's most lucrative sectors, it is committed to enhancing its gaming experience to grow its core business. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Take-Two Interactive Software, Inc. (TTWO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Take-Two Interactive Software, Inc. (TTWO) : Free Stock Analysis Report To read this article on Zacks.com click here. Netflix faces formidable competition in the mobile gaming industry from giants like Microsoft MSFT and Apple AAPL. As gaming is one of AAPL's most lucrative sectors, it is committed to enhancing its gaming experience to grow its core business.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Take-Two Interactive Software, Inc. (TTWO) : Free Stock Analysis Report To read this article on Zacks.com click here. Netflix faces formidable competition in the mobile gaming industry from giants like Microsoft MSFT and Apple AAPL. As gaming is one of AAPL's most lucrative sectors, it is committed to enhancing its gaming experience to grow its core business.
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Netflix faces formidable competition in the mobile gaming industry from giants like Microsoft MSFT and Apple AAPL. As gaming is one of AAPL's most lucrative sectors, it is committed to enhancing its gaming experience to grow its core business. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Take-Two Interactive Software, Inc. (TTWO) : Free Stock Analysis Report To read this article on Zacks.com click here.
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12328.0
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2023-11-30 00:00:00 UTC
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Bull Market Buys: 3 Exciting Growth Stocks to Own for the Long Run
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AAPL
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https://www.nasdaq.com/articles/bull-market-buys%3A-3-exciting-growth-stocks-to-own-for-the-long-run
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nan
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nan
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The underlying secular growth drivers behind investing themes like automation and industrial software are too powerful to be derailed by a cyclical slowdown caused by rising rates. In other words, the cyclical weakness in the industrial sector in 2023 is creating an interesting buying opportunity in stocks like PTC (NASDAQ: PTC), Cognex (NASDAQ: CGNX), and Emerson Electric (NYSE: EMR). Here's why all three are attractive stocks to buy.
Cognex
There is cyclical weakness in the many parts of the industrial sector right now. Rising interest rates put particular pressure on consumer discretionary spending. That hits customers in Cognex's three main end markets: consumer electronics, automotives, and logistics (primarily e-commerce warehousing).
Cognex is a leader in the machine vision market. It's a technology that helps customers ensure production quality control, increase production efficiency, and save costs by replacing labor while generating data that can be used to improve processes. Think of the precise layering of screens on mobile phones (Apple is a major customer), precise manufacturing of electric vehicle batteries, or monitoring and guiding packages in e-commerce fulfillment centers.
Unfortunately, all these markets have come under pressure this year, and Cognex's sales are set to drop by 17.5% according to analyst estimates as customers have delayed capital spending decisions in reaction to weak sales.
That said, the need to restructure global supply chains, reshore manufacturing from low-labor cost countries, and take full advantage of major enhancements in advances in digital technology and the Industrial Internet of Things isn't going anywhere anytime soon. As such, when the interest rate cycle eventually turns, it's likely Cognex will start winning major orders again. There's a limit to how long consumer electronics and automakers can delay developing new models, and when they do it's likely that spending on machine vision will be a part of their investment in assembly lines.
PTC
The secular growth drivers discussed above also play into industrial software company PTC's growth prospects. The company offers a range of software solutions that help manufacturers digitally transform their business within a so-called "closed-loop digital thread."
The digital thread runs from creating and designing a physical product through its production, distribution, servicing, and, ultimately disposal. For example, PTC's computer-aided design (CAD) software is used to digitally create the physical product, while its product lifecycle management (PLM) digitally manages the production of the product using PTC's Internet of Things software to digitally connect it. Meanwhile, service lifecycle management (SLM) digitally manages after-sales support.
The major advantage of digitalizing these processes is that information and data can be constantly gathered and analyzed to produce actionable insights that improve the whole process iteratively. That's the closed loop.
That was a lot of jargon, so allow me to give a simple example. Say a product is digitally designed using PTC's CAD and then produced in a factory monitored by PLM, with its servicing controlled by SLM. If PLM produces a digitally modeled insight that implies the product would be more cost-efficiently produced by adjusting its design, and SLM confirms there's no significant impact on servicing costs, then it can be digitally redesigned in CAD. It's part of a closed-loop process that involves constantly analyzing data to improve outcomes.
Image source: Getty Images.
Unlike Cognex, PTC hasn't seen a major slowdown in sales or contract growth, yet, from the pressure on its customers. Still, it's hard not to think its growth would be even better in a lower interest rate environment.
Undoubtedly, productivity and quality control enhancements can be gained by using digital technology. PTC's growth rate is likely to improve as its adoption spreads through the manufacturing sector.
Emerson Electric
The company's management is in a hurry to meet the future, and that future is automation. Having sold the majority of its climate control business last year, and recently bought software-connected automated test and measurement systems company National Instruments (NI) for an equity value of $8.2 billion, Emerson's management has firmly set its stall out in the automation market.
NI's test and measurement solutions operate in one of the four adjacent markets that Emerson's management sees as being complementary to its existing strength in process and hybrid automation. The other three are industrial software, factory automation, and smart grid solutions. In fact, Emerson already owns 55% of Aspen Technology (a company created out of a combination of Emerson's existing industrial software business and the former Aspen Technology business).
In the words of CEO Lal Karsanbhai on a recentearnings call Emerson is now focused on an automation market driven by "macro secular drivers," including "energy security and affordability, near-shoring, sustainability and decarbonization and digital transformation."
To be clear, Emerson is seeing pressure in its factory automation and test and measurement businesses in line with the cyclical slowdown, but management still expects 4% to 6% underlying sales growth in its fiscal 2024. That would be an excellent result in a challenging operating environment, and it could be even higher if interest rates come down next year.
10 stocks we like better than Emerson Electric
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Emerson Electric wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cognex and Emerson Electric. The Motley Fool recommends PTC. 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, the need to restructure global supply chains, reshore manufacturing from low-labor cost countries, and take full advantage of major enhancements in advances in digital technology and the Industrial Internet of Things isn't going anywhere anytime soon. In the words of CEO Lal Karsanbhai on a recentearnings call Emerson is now focused on an automation market driven by "macro secular drivers," including "energy security and affordability, near-shoring, sustainability and decarbonization and digital transformation." To be clear, Emerson is seeing pressure in its factory automation and test and measurement businesses in line with the cyclical slowdown, but management still expects 4% to 6% underlying sales growth in its fiscal 2024.
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In other words, the cyclical weakness in the industrial sector in 2023 is creating an interesting buying opportunity in stocks like PTC (NASDAQ: PTC), Cognex (NASDAQ: CGNX), and Emerson Electric (NYSE: EMR). For example, PTC's computer-aided design (CAD) software is used to digitally create the physical product, while its product lifecycle management (PLM) digitally manages the production of the product using PTC's Internet of Things software to digitally connect it. To be clear, Emerson is seeing pressure in its factory automation and test and measurement businesses in line with the cyclical slowdown, but management still expects 4% to 6% underlying sales growth in its fiscal 2024.
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In other words, the cyclical weakness in the industrial sector in 2023 is creating an interesting buying opportunity in stocks like PTC (NASDAQ: PTC), Cognex (NASDAQ: CGNX), and Emerson Electric (NYSE: EMR). For example, PTC's computer-aided design (CAD) software is used to digitally create the physical product, while its product lifecycle management (PLM) digitally manages the production of the product using PTC's Internet of Things software to digitally connect it. Having sold the majority of its climate control business last year, and recently bought software-connected automated test and measurement systems company National Instruments (NI) for an equity value of $8.2 billion, Emerson's management has firmly set its stall out in the automation market.
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The underlying secular growth drivers behind investing themes like automation and industrial software are too powerful to be derailed by a cyclical slowdown caused by rising rates. In other words, the cyclical weakness in the industrial sector in 2023 is creating an interesting buying opportunity in stocks like PTC (NASDAQ: PTC), Cognex (NASDAQ: CGNX), and Emerson Electric (NYSE: EMR). For example, PTC's computer-aided design (CAD) software is used to digitally create the physical product, while its product lifecycle management (PLM) digitally manages the production of the product using PTC's Internet of Things software to digitally connect it.
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12329.0
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2023-11-30 00:00:00 UTC
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Could Investing in the Nasdaq-100 Help You Retire a Millionaire?
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AAPL
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https://www.nasdaq.com/articles/could-investing-in-the-nasdaq-100-help-you-retire-a-millionaire
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nan
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nan
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While some may consider index fund investing boring, there is no easier way to put yourself on a path to success than consistently adding to an index fund. In fact, I'd argue that many investors would be better suited to doing this than buying individual stocks they don't have the stomach to hold when the market turns south.
Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett shares this belief, which is why I think all investors should own my favorite index fund: The Invesco QQQ (NASDAQ: QQQ), an exchange-traded fund that tracks the Nasdaq-100. But could investing in this fund really make you a millionaire?
The Invesco QQQ is heavily concentrated in 10 stocks
The financial media often refers to this index as the "tech-heavy Nasdaq-100," and for good reason. It has a high concentration of tech companies because so many of them chose to list on the Nasdaq exchange rather than the New York Stock Exchange (NYSE) when they went public.
Just take a look at the 10 largest QQQ positions.
COMPANY ALLOCATION
Apple (NASDAQ: AAPL) 11.1%
Microsoft (NASDAQ: MSFT) 10.4%
Amazon (NASDAQ: AMZN) 5.6%
Nvidia (NASDAQ: NVDA) 4.5%
Meta Platforms (NASDAQ: META) 4%
Broadcom (NASDAQ: AVGO) 3.2%
Alphabet Class A (NASDAQ: GOOGL) 3.1%
Alphabet Class C (NASDAQ: GOOG) 3%
Tesla (NASDAQ: TSLA) 2.8%
Adobe (NASDAQ: ADBE)
2.3%
Data source: Invesco.
If you add up those positions, you'll see that half the value of the QQQ is in these 10 mega-cap tech stocks, so the fund's performance is directly tied to their success. But being invested in them has been a fantastic strategy over the past decade. I also think it will be great moving forward.
Just think of the tailwinds that are blowing behind each of these businesses. Artificial intelligence (AI) is a huge part of the growth thesis for many of the stocks in the top 10. There are also trends like electric vehicles, cloud computing, and e-commerce represented, making an investment in QQQ an investment in the future.
Compounded growth can do remarkable things
Over the past decade, the QQQ's compound annual growth rate (CAGR) has been 17.5%. How many investors have put up a 17.5% CAGR over the past decade? Very few. Still, you would have had to put $200,000 into the QQQ a decade ago to have a million-dollar-plus holding today.
But what about over a longer time frame? Over the past two decades, the QQQ posted a CAGR of 13.6%, which is a more reasonable expectation. If you put $250 a month into an investment that delivered an annualized return of 13% over the long haul, in 30 years, your investment would be worth nearly $1.1 million.
Now, a 13% annualized return is still an extremely high bar and far exceeds the broad market's long-term average. However, given its significant concentration in some of the most important companies today, I'm confident that the QQQ will provide market-beating returns in the future.
With a buy-and-hold mindset and a steady cash stream, the QQQ could provide a low-effort way to become a millionaire when you retire.
10 stocks we like better than Invesco Qqq Trust, Series 1
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*Stock Advisor returns as of November 20, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Adobe, Alphabet, Amazon, Invesco Qqq Trust, Series 1, and Tesla. The Motley Fool has positions in and recommends Adobe, Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2024 $420 calls on Adobe and short January 2024 $430 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL) 11.1% Microsoft (NASDAQ: MSFT) 10.4% Amazon (NASDAQ: AMZN) 5.6% Nvidia (NASDAQ: NVDA) 4.5% Meta Platforms (NASDAQ: META) 4% Broadcom (NASDAQ: AVGO) 3.2% Alphabet Class A (NASDAQ: GOOGL) 3.1% Alphabet Class C (NASDAQ: GOOG) 3% Tesla (NASDAQ: TSLA) 2.8% Adobe (NASDAQ: ADBE) 2.3% Data source: Invesco. In fact, I'd argue that many investors would be better suited to doing this than buying individual stocks they don't have the stomach to hold when the market turns south. The Invesco QQQ is heavily concentrated in 10 stocks The financial media often refers to this index as the "tech-heavy Nasdaq-100," and for good reason.
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Apple (NASDAQ: AAPL) 11.1% Microsoft (NASDAQ: MSFT) 10.4% Amazon (NASDAQ: AMZN) 5.6% Nvidia (NASDAQ: NVDA) 4.5% Meta Platforms (NASDAQ: META) 4% Broadcom (NASDAQ: AVGO) 3.2% Alphabet Class A (NASDAQ: GOOGL) 3.1% Alphabet Class C (NASDAQ: GOOG) 3% Tesla (NASDAQ: TSLA) 2.8% Adobe (NASDAQ: ADBE) 2.3% Data source: Invesco. Keithen Drury has positions in Adobe, Alphabet, Amazon, Invesco Qqq Trust, Series 1, and Tesla. The Motley Fool has positions in and recommends Adobe, Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, Nvidia, and Tesla.
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Apple (NASDAQ: AAPL) 11.1% Microsoft (NASDAQ: MSFT) 10.4% Amazon (NASDAQ: AMZN) 5.6% Nvidia (NASDAQ: NVDA) 4.5% Meta Platforms (NASDAQ: META) 4% Broadcom (NASDAQ: AVGO) 3.2% Alphabet Class A (NASDAQ: GOOGL) 3.1% Alphabet Class C (NASDAQ: GOOG) 3% Tesla (NASDAQ: TSLA) 2.8% Adobe (NASDAQ: ADBE) 2.3% Data source: Invesco. Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett shares this belief, which is why I think all investors should own my favorite index fund: The Invesco QQQ (NASDAQ: QQQ), an exchange-traded fund that tracks the Nasdaq-100. See the 10 stocks *Stock Advisor returns as of November 20, 2023 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors.
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Apple (NASDAQ: AAPL) 11.1% Microsoft (NASDAQ: MSFT) 10.4% Amazon (NASDAQ: AMZN) 5.6% Nvidia (NASDAQ: NVDA) 4.5% Meta Platforms (NASDAQ: META) 4% Broadcom (NASDAQ: AVGO) 3.2% Alphabet Class A (NASDAQ: GOOGL) 3.1% Alphabet Class C (NASDAQ: GOOG) 3% Tesla (NASDAQ: TSLA) 2.8% Adobe (NASDAQ: ADBE) 2.3% Data source: Invesco. But could investing in this fund really make you a millionaire? If you put $250 a month into an investment that delivered an annualized return of 13% over the long haul, in 30 years, your investment would be worth nearly $1.1 million.
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12330.0
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2023-11-30 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-23
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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
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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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12331.0
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2023-11-30 00:00:00 UTC
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GRAPHIC-ChatGPT one year on: From viral AI bot to OpenAI's boardroom battle
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AAPL
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https://www.nasdaq.com/articles/graphic-chatgpt-one-year-on%3A-from-viral-ai-bot-to-openais-boardroom-battle
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nan
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nan
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Nov 30 (Reuters) - We asked ChatGPT, OpenAI's viral chatbot, how it felt on its first birthday. This was its reply:
"Thank you for the birthday wishes! However, it's important to note that as a computer program, I don't have feelings or consciousness, so I don't experience emotions like humans do."
Still, its uncannily human-like responses have taken the world by storm in the past year. And while it has answered millions of user prompts, its growing influence has raised questions about the role of AI in society.
Its parent, OpenAI, was also jolted this month by a tumultuous boardroom battle that saw the sudden ouster and return of CEO Sam Altman.
ChatGPT became the fastest-growing software application in the world within six months of its launch. It also sparked the launch of rival chatbots from Microsoft, Alphabet and a bevy of startups that tapped the hype to secure billions in funding.
The generative AI craze has disrupted several industries from cloud computing and customer service to movie editing and screenplay writing.
Here are four charts on ChatGPT and the impact of generative AI:
CHATGPT DOMINATES DESPITE RISE OF COMPETITORS
ChatGPT's competitors include Bard, Anthropic's Claude, Character.AI and Microsoft's CoPilot, which have seen a surge in users. ChatGPT, however, commands the lion's share of the market.
CHATGPT APP DOWNLOADS
Six months after ChatGPT's website launch, OpenAI introduced the chatbot application to Apple's AAPL.O iOS in May and later on Android in July.
Downloads of the app on both platforms have steadily increased on both platforms, with OpenAI seeing revenue from in-app purchases, according to data analytics firm Apptopia.
WINNERS OF THE AI BOOM
Nvidia became the first and the only chip company to join the $1 trillion valuation club and is widely considered the biggest winner of the AI boom due to its position as the key supplier of the chips used to power ChatGPT and other generative AI applications.
With these applications running mostly on the cloud, vendors of cloud computing services, including Microsoft, Amazon and Alphabet, have also seen their shares surge.
ChatGPT's launch sparked massive investments from the top tech players.
Microsoft MSFT.O and Alphabet GOOGL.O have invested billions to improve their cloud computing capabilities and take on more AI workloads as businesses embrace such tools.
CONTROVERSIES
OpenAI and its backer Microsoft have been slapped with several lawsuits that have been brought by groups of copyright owners, including authors John Grisham, George R.R. Martin and Jonathan Franzen, over the alleged misuse of their work to train AI systems. The companies have denied the allegations.
ChatGPT rakes in the highest number of visitors in October https://tmsnrt.rs/47AXVRB
ChatGPT app sees higher traction on Android https://tmsnrt.rs/47y4V1S
Cloud computing stocks surge since launch of ChatGPT https://tmsnrt.rs/3R3JXAZ
Cloud giants boost spending to capitalize on AI frenzy https://tmsnrt.rs/471Pr5i
(Reporting by Akash Sriram, Harshita Mary Varghese, Zaheer Kachwala and Jaspreet Singh in Bengaluru; Editing by Sweta Singh and Saumyadeb Chakrabarty)
((Akash.Sriram@thomsonreuters.com; On X as @HoodieOnVeshti; +91-74116-87774;))
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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Six months after ChatGPT's website launch, OpenAI introduced the chatbot application to Apple's AAPL.O iOS in May and later on Android in July. Its parent, OpenAI, was also jolted this month by a tumultuous boardroom battle that saw the sudden ouster and return of CEO Sam Altman. It also sparked the launch of rival chatbots from Microsoft, Alphabet and a bevy of startups that tapped the hype to secure billions in funding.
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Six months after ChatGPT's website launch, OpenAI introduced the chatbot application to Apple's AAPL.O iOS in May and later on Android in July. With these applications running mostly on the cloud, vendors of cloud computing services, including Microsoft, Amazon and Alphabet, have also seen their shares surge. ChatGPT rakes in the highest number of visitors in October https://tmsnrt.rs/47AXVRB ChatGPT app sees higher traction on Android https://tmsnrt.rs/47y4V1S Cloud computing stocks surge since launch of ChatGPT https://tmsnrt.rs/3R3JXAZ Cloud giants boost spending to capitalize on AI frenzy https://tmsnrt.rs/471Pr5i (Reporting by Akash Sriram, Harshita Mary Varghese, Zaheer Kachwala and Jaspreet Singh in Bengaluru; Editing by Sweta Singh and Saumyadeb Chakrabarty) ((Akash.Sriram@thomsonreuters.com; On X as @HoodieOnVeshti; +91-74116-87774;)) 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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Six months after ChatGPT's website launch, OpenAI introduced the chatbot application to Apple's AAPL.O iOS in May and later on Android in July. Nvidia became the first and the only chip company to join the $1 trillion valuation club and is widely considered the biggest winner of the AI boom due to its position as the key supplier of the chips used to power ChatGPT and other generative AI applications. With these applications running mostly on the cloud, vendors of cloud computing services, including Microsoft, Amazon and Alphabet, have also seen their shares surge.
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Six months after ChatGPT's website launch, OpenAI introduced the chatbot application to Apple's AAPL.O iOS in May and later on Android in July. Nov 30 (Reuters) - We asked ChatGPT, OpenAI's viral chatbot, how it felt on its first birthday. ChatGPT became the fastest-growing software application in the world within six months of its launch.
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2023-11-30 00:00:00 UTC
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Here's My Top "Magnificent Seven" Stock to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/heres-my-top-magnificent-seven-stock-to-buy-right-now
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nan
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nan
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CNBC's Jim Cramer has now created two well-known investing groups to convey the most important stocks in the market. First was the term FAANG; now he's using the phrase "Magnificent Seven" to discuss seven stocks that he believes are vital to the market's success. They are:
Alphabet
Amazon (NASDAQ: AMZN)
Apple
Meta Platforms
Microsoft
Nvidia
Tesla
If you've owned any of these stocks in 2023, you're elated with their performance. But with such an incredible year on the books, some may wonder if there's any more left in the tank for this group. I think there is, and there's one company in particular I'm most excited about.
Amazon's stock hasn't been this cheap for a while
To me, the company with the most upside ahead of it is Amazon. There's nothing against the other six, but all of them (except for Alphabet) are valued at the top of their historical valuation ranges. This doesn't leave much room for upside, especially considering that many of these companies are posting incredible results that may not be feasible over the long term.
On the other hand, Amazon has had a great year (up more than 75%) but is still valued at the low end of its historical valuation range.
AMZN PS Ratio data by YCharts
Overlaid on the price-to-sales ratio graph (which shows Amazon hasn't been this cheap since 2016) are two other important trends: Amazon's growth and gross margin. Multiple factors go into what investors are willing to pay for a stock, and these are two of them.
Although Amazon's growth is accelerating, it's nowhere near the levels seen before 2022. This makes investors want to pay less for Amazon stock, as the rapid growth isn't there.
On the flip side is Amazon's rising gross margin. Amazon has nearly doubled its gross margin since 2016, which increases how much investors want to pay for the stock. A higher gross margin allows for a higher profit margin, thus increasing a stock's value.
Right now, the market considers these two factors a wash, so the stock's valuation has risen since the start of 2023 but has not returned to levels seen from 2017 to 2022.
But that assumption is a mistake on Wall Street's part.
Improving gross margin and rising sales will spur the stock on
While these two factors may be a wash right now, what happens if Amazon's sales rise and it continues improving its gross margin?
In 2024, Wall Street expects Amazon to grow its revenue by 11.3%. This above-market pace of growth is key when assessing Amazon's long-term investment prospects. Amazon has also done a tremendous job in becoming more efficient, as evidenced by its operating margin nearing an all-time high.
AMZN Operating Margin (Quarterly) data by YCharts
If Amazon can deliver a full year of high margins, then its profits and cash flow will be incredible, solely due to the size of the business. This will translate into a higher valuation, pushing the stock price up alongside its results, making Amazon a top pick.
Many of the other Magnificent Seven stocks have already maxed out their potential. Amazon has yet to do so, but it is on the right track. That makes it my top Magnificent Seven stock to buy right now, although the others are still good investments.
10 stocks we like better than Amazon
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 Amazon 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 27, 2023
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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Alphabet, Amazon, and Tesla. 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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They are: Alphabet Amazon (NASDAQ: AMZN) Apple Meta Platforms Microsoft Nvidia Tesla If you've owned any of these stocks in 2023, you're elated with their performance. This doesn't leave much room for upside, especially considering that many of these companies are posting incredible results that may not be feasible over the long term. This will translate into a higher valuation, pushing the stock price up alongside its results, making Amazon a top pick.
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They are: Alphabet Amazon (NASDAQ: AMZN) Apple Meta Platforms Microsoft Nvidia Tesla If you've owned any of these stocks in 2023, you're elated with their performance. A higher gross margin allows for a higher profit margin, thus increasing a stock's value. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla.
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Amazon's stock hasn't been this cheap for a while To me, the company with the most upside ahead of it is Amazon. Improving gross margin and rising sales will spur the stock on While these two factors may be a wash right now, what happens if Amazon's sales rise and it continues improving its gross margin? See the 10 stocks *Stock Advisor returns as of November 27, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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This makes investors want to pay less for Amazon stock, as the rapid growth isn't there. Amazon has nearly doubled its gross margin since 2016, which increases how much investors want to pay for the stock. That makes it my top Magnificent Seven stock to buy right now, although the others are still good investments.
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12333.0
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2023-11-30 00:00:00 UTC
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The Nasdaq-100 Is Up 47% in 2023, but This Artificial Intelligence (AI) Stock Is Doing Even Better
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AAPL
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https://www.nasdaq.com/articles/the-nasdaq-100-is-up-47-in-2023-but-this-artificial-intelligence-ai-stock-is-doing-even
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nan
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nan
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The technology sector, broadly speaking, is having a great year. The Nasdaq-100 tech index has jumped 47% so far, and it's now a stone's throw away from its all-time high following a brutal sell-off in 2022.
But some individual stocks are far outperforming the Nasdaq-100, particularly those operating in the artificial intelligence (AI) industry. Shares of AI semiconductor giant Nvidia have soared 237% year to date, and AI software company C3.ai has seen a 162% gain in its stock.
While those two names are familiar to investors watching the AI space, there's another stock in the sector flying under the radar. Norway-based Opera Ltd (NASDAQ: OPRA) stock has almost doubled in 2023 on the back of its internet browser with built-in generative AI technology. However, based on the company's present valuation, there could be plenty more upside to come.
Image source: Getty Images.
Competing with giants
Opera has developed two web browsers; Opera One, which is a feature-packed platform for everyday use, and Opera GX, which is designed for gaming enthusiasts. Opera One effectively competes with industry giants like Alphabet's Google Chrome and Microsoft Edge.
When a consumer purchases a mobile device or computer, it often comes with Chrome, Edge, or even Apple's Safari set as the default browser, so it isn't easy for companies like Opera to make headway. But it's finding success by offering users a very attractive built-in feature set, without the need to pay for plugins.
For example, Opera One comes with a VPN, a messaging platform, an ad blocker, and even a native cryptocurrency wallet. But the company has developed a generative AI-powered virtual assistant called Aria, which combines Opera's own data with OpenAI's popular ChatGPT chatbot.
Unlike other leading chatbots, Aria is connected to the web so it can pull the most up-to-date information on demand. It saves the user from visiting traditional search engines like Google and spending time sifting through webpages for the answers to their queries. Plus Aria comes with all of ChatGPT's most popular capabilities, including the ability to generate content, whether it's for an article or an email.
Opera GX, on the other hand, is a niche product. While it comes with many of the features on the Opera One platform, it also includes some handy tools for gamers. They can access the Twitch streaming platform and Discord chat application from the sidebar, and Opera GX is also designed to consume 80% less RAM (memory), so more of the user's processing power is available for gaming.
11 consecutive quarters of 20% revenue growth
Opera recently reported its financial results for the third quarter of 2023 (ended Sept. 30). The company had 311 million monthly active users on its One browser, but that number has been trending down throughout 2023. While that sounds like bad news, Opera has focused on attracting users in western markets like Europe and the U.S. because they monetize at a higher rate, while foregoing its marketing initiatives in less lucrative areas of the world.
Opera One had 30 million active users in western markets four years ago, which has grown to 49 million today. Over the very same period, its average revenue per user has more than tripled to $1.31, so the strategy has largely been successful.
It's clearly showing up in Opera's financial results. In Q3, the company generated $106.2 million in revenue, which was a 20% year-over-year increase. It marked the 11th consecutive quarter with revenue growth of at least 20%, which can be attributed to the above-mentioned strategy shift.
Opera is also growing its profitability at a rapid clip. Its Q3 net income came in at $16.8 million, which was a whopping 78% increase from the year-ago period. I'll explain why that is extremely important in a moment.
Why Opera stock is a buy right now
Opera stock has gained 91% in 2023 so far, but it was up far more prior to the market sell-off that began in August. As I touched on at the top, its current valuation might warrant significantly more upside.
Wall Street analysts expect the company to deliver $0.86 in earnings per share for the 2023 full year, which wraps up in December. Based on Opera's current stock price of $11.48, that means it trades at a price to earnings (P/E) ratio of just 13.3. For context, that is 54% cheaper than the 29 P/E ratio of the Nasdaq-100 index.
It's also a whopping 88% discount to Nvidia's 116 P/E ratio. Nvidia has significantly more potential than Opera simply because the semiconductor industry is more valuable than the internet browser industry, so it's not a perfect comparison. But it does highlight the premium investors are paying for some AI stocks, which makes Opera's steep discount to the broader market a little hard to justify.
Finally, Opera is returning some of its profits to shareholders, which should help to attract new investors over time. In the third quarter alone, it paid $10.8 million in dividends and spent a further $17.2 million on stock buybacks.
As a result, while Opera has crushed the performance of the Nasdaq-100 index in 2023 so far, there is certainly a case for more upside in the new year (and possibly beyond).
10 stocks we like better than Opera
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 Opera 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 27, 2023
Suzanne Frey, an executive at Alphabet, 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, Apple, Microsoft, and Nvidia. The Motley Fool recommends C3.ai. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When a consumer purchases a mobile device or computer, it often comes with Chrome, Edge, or even Apple's Safari set as the default browser, so it isn't easy for companies like Opera to make headway. But the company has developed a generative AI-powered virtual assistant called Aria, which combines Opera's own data with OpenAI's popular ChatGPT chatbot. They can access the Twitch streaming platform and Discord chat application from the sidebar, and Opera GX is also designed to consume 80% less RAM (memory), so more of the user's processing power is available for gaming.
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Norway-based Opera Ltd (NASDAQ: OPRA) stock has almost doubled in 2023 on the back of its internet browser with built-in generative AI technology. Opera One effectively competes with industry giants like Alphabet's Google Chrome and Microsoft Edge. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, and Nvidia.
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Competing with giants Opera has developed two web browsers; Opera One, which is a feature-packed platform for everyday use, and Opera GX, which is designed for gaming enthusiasts. Why Opera stock is a buy right now Opera stock has gained 91% in 2023 so far, but it was up far more prior to the market sell-off that began in August. 10 stocks we like better than Opera When our analyst team has a stock tip, it can pay to listen.
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Shares of AI semiconductor giant Nvidia have soared 237% year to date, and AI software company C3.ai has seen a 162% gain in its stock. Competing with giants Opera has developed two web browsers; Opera One, which is a feature-packed platform for everyday use, and Opera GX, which is designed for gaming enthusiasts. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, and Nvidia.
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12334.0
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2023-11-30 00:00:00 UTC
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2 Warren Buffett Stocks That Could Roar Higher in the Next Bull Market
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AAPL
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https://www.nasdaq.com/articles/2-warren-buffett-stocks-that-could-roar-higher-in-the-next-bull-market
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nan
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Warren Buffett is known for his stock-picking strengths, which have led to spectacular market performance over the long term. Buffett, as Berkshire Hathaway chairman, and his team have delivered compounded annual gains of more than 19% over the past 57 years. That's compared to a 9.9% increase for the S&P 500 index. So when you follow Buffett into a stock, you generally can do it with confidence.
With markets rallying this month and building on this year's gain, you might want to follow the billionaire investor into stocks that could excel in a bull market. We haven't yet reached that market phase, but we're heading there, and now is the perfect time to stock up on a few growth players.
And Buffett just so happens to own two that could roar higher in the next bull market. Let's take a look at each.
1. Amazon
The e-commerce and cloud computing markets are growing in the double digits, and Amazon (NASDAQ: AMZN), thanks to its leadership in both, is set to benefit. The company has grown earnings over time in both areas, only halted temporarily last year amid rising inflation and economic weakness.
Importantly, Amazon used that slowdown as a time to improve its cost structure not only to face current headwinds but also to strengthen its ability to grow over the long haul.
The company focused on improving efficiency and made a big step when it shifted its U.S. fulfillment network to a regional system from a national one. This allows Amazon to keep inventory in several centers around the country, reducing delivery distance. As a result, deliveries become faster, pleasing the customer, as well as cheaper, pleasing Amazon.
The company also has been investing in key growth areas such as artificial intelligence (AI). This technology is playing a big role in Amazon's e-commerce and cloud computing businesses, meaning it could boost earnings well into the future. Amazon uses AI to streamline its e-commerce operations, for example, predicting popular items to stock, and it offers AI tools to customers through Amazon Web Services (AWS), its cloud business.
Amazon's efforts already are bearing fruit, with the company reporting growth in revenue, net income, free cash flow, and other key metrics in the recent quarter. It's clear this could become a lasting trend as Amazon continues to improve efficiency and the economic situation improves -- and this sustained growth could make Amazon a winner in the next bull market.
2. Apple
Warren Buffett is known for his love of companies with moats, or strong competitive advantages, and this may be why Apple (NASDAQ: AAPL) makes up such a big share of his portfolio. The maker of products such as the iPhone and Mac has a solid base of fans who won't switch to other brands and are even ready to pay higher prices.
This offers us reason to be confident about Apple's product revenue over time. Of course, there may be moments -- such as recently -- when negative currency impact or a difficult comparison quarter (in this case, for Mac and iPad) weigh on growth. But these situations are temporary and don't reflect a lack of demand for Apple's products.
In the recent quarter, iPhone sales reached a September quarter record, and the installed base reached an all-time high. The installed base of Macs also attained its highest level ever. And half of Mac and iPad buyers were new to those products. So, Apple not only has been able to keep its customers loyal, but it's also still growing its customer base.
Meanwhile, the company's services business has taken off, with revenues there reaching a record, and this unit could be a significant revenue driver from this point forward. By services, I mean a broad selection of subscriptions product users can sign up for -- from digital content to cloud storage. Another positive point is that services are high margin -- with a gross margin of more than 70% in the recent quarter -- meaning they are highly profitable for Apple.
So Apple is on the right track to extend its track record of growth and is in the perfect position to roar higher in a new bull market.
10 stocks we like better than Amazon
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 Amazon 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 27, 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. The Motley Fool has positions in and recommends Amazon, 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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Apple Warren Buffett is known for his love of companies with moats, or strong competitive advantages, and this may be why Apple (NASDAQ: AAPL) makes up such a big share of his portfolio. Importantly, Amazon used that slowdown as a time to improve its cost structure not only to face current headwinds but also to strengthen its ability to grow over the long haul. Amazon's efforts already are bearing fruit, with the company reporting growth in revenue, net income, free cash flow, and other key metrics in the recent quarter.
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Apple Warren Buffett is known for his love of companies with moats, or strong competitive advantages, and this may be why Apple (NASDAQ: AAPL) makes up such a big share of his portfolio. Amazon The e-commerce and cloud computing markets are growing in the double digits, and Amazon (NASDAQ: AMZN), thanks to its leadership in both, is set to benefit. It's clear this could become a lasting trend as Amazon continues to improve efficiency and the economic situation improves -- and this sustained growth could make Amazon a winner in the next bull market.
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Apple Warren Buffett is known for his love of companies with moats, or strong competitive advantages, and this may be why Apple (NASDAQ: AAPL) makes up such a big share of his portfolio. Amazon uses AI to streamline its e-commerce operations, for example, predicting popular items to stock, and it offers AI tools to customers through Amazon Web Services (AWS), its cloud business. It's clear this could become a lasting trend as Amazon continues to improve efficiency and the economic situation improves -- and this sustained growth could make Amazon a winner in the next bull market.
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Apple Warren Buffett is known for his love of companies with moats, or strong competitive advantages, and this may be why Apple (NASDAQ: AAPL) makes up such a big share of his portfolio. And Buffett just so happens to own two that could roar higher in the next bull market. In the recent quarter, iPhone sales reached a September quarter record, and the installed base reached an all-time high.
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2023-11-29 00:00:00 UTC
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3 Unstoppable Growth Stocks to Buy if There's a Stock Market Sell-Off
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AAPL
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https://www.nasdaq.com/articles/3-unstoppable-growth-stocks-to-buy-if-theres-a-stock-market-sell-off-10
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nan
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nan
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The stock market has been on a nice run of late. At the time of this writing, the S&P 500 has gained 7% over the past month while the Nasdaq Composite has risen by 8%. While it's always great to see green in your brokerage account, with higher prices come higher valuations. Paying too much for even a great growth stock can significantly cut into investor returns.
However, it is inevitable that the market will eventually turn and stocks will fall. That can be difficult to endure, but it will also provide buying opportunities for the best businesses in the world. Let's take a look at three growth companies with stocks to buy if there's a sell-off in the market.
Nvidia
Semiconductor chip developer Nvidia (NASDAQ: NVDA) has been in the news lately for very good reasons. Driven by the rush into artificial intelligence (AI), Nvidia has seen mind-boggling results in the last two quarters. Consider the year-over-year revenue growth and net income over the latest two quarters of its fiscal 2024 (ended Oct. 29, 2023).
METRIC
Q2 2024
Q3 2024
Revenue growth (YOY)
101%
206%
Net income (YOY)
843%
1,259%
Data source: Nvidia.
Management expects this trend to continue at least for another quarter. Fourth-quarter 2024 revenue is projected to be $20 billion. That would represent a 231% increase over Q4 2023. The majority of this growth has been in Nvidia's data center business and it's because of the interest in chips that can help with artificial intelligence.
Even if the AI revolution is upon us, it's unlikely Nvidia will see this level of growth over the long term. As one might expect, the valuation of Nvidia shares is a reflection of the recent results. Nvidia currently trades for 115 times trailing earnings. Compare that to the S&P 500's price-to-earnings (P/E) ratio of 25 and it's clear that investors may be better off waiting for the stock to pull back before buying shares.
Apple
Apple (NASDAQ: AAPL) is a great company and still is likely to show periods of growth ahead, but the current valuation suggests it may be best to wait before buying shares. Apple is trading for a P/E multiple of 31, which is well above the market average. What makes that more concerning from the standpoint of potential returns is that the results over the last few quarters are showing signs of slowing momentum.
In the most recently reported fiscal quarter, revenue growth declined by 1% year over year. This was the fourth consecutive quarter with a decline in year-over-year revenue growth. Both revenue and free cash flow have been trending down over the last year.
AAPL Free Cash Flow (Quarterly) data by YCharts
There's every chance that this is a temporary lull in Apple's growth story. However, the current valuation doesn't match the results. There's a chance that Apple's growth reaccelerates from here, rewarding shareholders who buy today. However, the more likely scenario is that results from today's valuation could be disappointing. Waiting for a market sell-off seems prudent.
ASML
To put it simply, there's no way to build the most high-tech semiconductor chips without ASML (NASDAQ: ASML). This Dutch company makes the machines necessary for Extreme Ultraviolet Lithography (EUV), which is an essential part of the production of chips, and it's the only company in the world that does so.
Without looking at results, one might guess ASML is struggling considering the semiconductor industry is in a cyclical down cycle. Luckily, ASML has a strong backlog to rely on. As of the end of the third quarter of 2023, ASML had a backlog of 38 billion Euros. There is more demand for ASML's machines than it can accommodate, which is helping bridge the gap while the market is working through the bottom of its cycle.
ASML currently trades for 35 times earnings and 46 times free cash flow. These multiples are both right around the historical average for the company but are still expensive. While investors could still see an investment from here do well, it couldn't hurt to wait for a market sell-off to add more shares.
10 stocks we like better than Nvidia
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Jeff Santoro has positions in ASML, Apple, and Nvidia. The Motley Fool has positions in and recommends ASML, Apple, 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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AAPL Free Cash Flow (Quarterly) data by YCharts There's every chance that this is a temporary lull in Apple's growth story. Apple Apple (NASDAQ: AAPL) is a great company and still is likely to show periods of growth ahead, but the current valuation suggests it may be best to wait before buying shares. Compare that to the S&P 500's price-to-earnings (P/E) ratio of 25 and it's clear that investors may be better off waiting for the stock to pull back before buying shares.
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AAPL Free Cash Flow (Quarterly) data by YCharts There's every chance that this is a temporary lull in Apple's growth story. Apple Apple (NASDAQ: AAPL) is a great company and still is likely to show periods of growth ahead, but the current valuation suggests it may be best to wait before buying shares. Revenue growth (YOY) 101% 206% Net income (YOY) 843% 1,259% Data source: Nvidia.
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Apple Apple (NASDAQ: AAPL) is a great company and still is likely to show periods of growth ahead, but the current valuation suggests it may be best to wait before buying shares. AAPL Free Cash Flow (Quarterly) data by YCharts There's every chance that this is a temporary lull in Apple's growth story. Let's take a look at three growth companies with stocks to buy if there's a sell-off in the market.
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Apple Apple (NASDAQ: AAPL) is a great company and still is likely to show periods of growth ahead, but the current valuation suggests it may be best to wait before buying shares. AAPL Free Cash Flow (Quarterly) data by YCharts There's every chance that this is a temporary lull in Apple's growth story. Let's take a look at three growth companies with stocks to buy if there's a sell-off in the market.
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12336.0
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2023-11-29 00:00:00 UTC
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US STOCKS-S&P 500 ends lower on mixed Fed messages, PCE on deck
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-ends-lower-on-mixed-fed-messages-pce-on-deck
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nan
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By Stephen Culp
NEW YORK, Nov 29 (Reuters) - U.S. stocks edged lower on Wednesday as a robust upward GDP revision eased recession fears, while Federal Reserve officials' remarks raised questions about the duration of the central bank's restrictive policy.
The Nasdaq joined the S&P 500 in negative territory, while the Dow ended nominally higher, as investors took a wait-and-see position ahead of Thursday's crucial personal consumption expenditure (PCE) inflation report.
Despite the indexes' languid movement over the last three sessions, November has been a banner month. The S&P 500 remains on track to notch its biggest monthly percentage gain since July 2022.
"The market has had huge returns, so there's certainly profit taking and repositioning; there's some consolidation going on here," said Tim Ghriskey, senior portfolio strategist Ingalls & Snyder in New York. "We've had very strong earnings and there's a lot of optimism. And because of that, there's a repositioning of gains."
In contrast to Barkin, Fed Governor Christopher Waller, widely considered a hawk, provided reassurance on Tuesday that the Fed has probably reached the end of its rate hike cycle. He hinted at the possibility of cutting rates in the near term to engineer a "soft landing" and avoid recession.
"The Fed's on hold now, but the mantra is still higher for longer," Ghriskey added. "The economy continues to be relatively strong. There's no reason for the Fed to lower rates and risk a re-emergence of inflation."
Indeed, on Wednesday Cleveland Fed President Loretta Mester reiterated the central bank's need to remain "nimble" in its response to economic data.
Earlier in the session the Commerce Department upwardly revised its initial estimate on third-quarter gross domestic product, which underscored U.S. economic resilience but also appeared to give the Fed little reason to start cutting rates in the near future, as long as inflation remains well above its 2% target.
The Fed's Beige Book, which provides a region-by-region snapshot of the U.S. economy, was released mid-afternoon, showing economic activity has slowed modestly under the central bank's restrictive monetary policy.
The Dow Jones Industrial Average .DJIrose 13.44 points, or 0.04%, to 35,430.42, the S&P 500 .SPXlost 4.31 points, or 0.09%, at 4,550.58 and the Nasdaq Composite .IXICdropped 23.27 points, or 0.16%, to 14,258.49.
Among the 11 major sectors of the S&P 500, real estate .SPLRCR and financial .SPSY notched the largest percentage gains, while communications services .SPLRCL dropped 1.1%.
Interest rate sensitive momentum stocks, led by Microsoft Corp MSFT.O and Apple Inc AAPL.O were the heaviest weights on the S&P 500.
Shares of Humana Inc HUM.N and Cigna Group CI.N were down 5.5% and 8.1%, respectively, after a source familiar with the matter said the health insurers are in talks to merge.
General Motors GM.N jumped 9.4% after the automaker announced a $10 billion share buyback and a 33% dividend boost. Ford Motor Co F.N shares advanced 2.1%.
CrowdStrike Holdings CRWD.Osurged10.4% following its consensus-beating fourth-quarter revenue forecast.
NetApp NTAP.O leaped 14.6% after the cloud-based data management platform increased its annual profit forecast.
Advancing issues outnumbered decliners on the NYSE by a 2.06-to-1 ratio; on Nasdaq, a 1.51-to-1 ratio favored advancers.
The S&P 500 posted 30 new 52-week highs and one new low; the Nasdaq Composite recorded 82 new highs and 97 new lows.
Volume on U.S. exchanges was 11.42 billion shares, compared with the 10.45 billion average for the full session over the last 20 trading days.
US gross domestic product https://tmsnrt.rs/3QZotoK
(Reporting by Stephen Culp; Additional reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Richard Chang)
((stephen.culp@thomsonreuters.com; 646-223-6076))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Interest rate sensitive momentum stocks, led by Microsoft Corp MSFT.O and Apple Inc AAPL.O were the heaviest weights on the S&P 500. By Stephen Culp NEW YORK, Nov 29 (Reuters) - U.S. stocks edged lower on Wednesday as a robust upward GDP revision eased recession fears, while Federal Reserve officials' remarks raised questions about the duration of the central bank's restrictive policy. The Nasdaq joined the S&P 500 in negative territory, while the Dow ended nominally higher, as investors took a wait-and-see position ahead of Thursday's crucial personal consumption expenditure (PCE) inflation report.
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Interest rate sensitive momentum stocks, led by Microsoft Corp MSFT.O and Apple Inc AAPL.O were the heaviest weights on the S&P 500. By Stephen Culp NEW YORK, Nov 29 (Reuters) - U.S. stocks edged lower on Wednesday as a robust upward GDP revision eased recession fears, while Federal Reserve officials' remarks raised questions about the duration of the central bank's restrictive policy. The Fed's Beige Book, which provides a region-by-region snapshot of the U.S. economy, was released mid-afternoon, showing economic activity has slowed modestly under the central bank's restrictive monetary policy.
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Interest rate sensitive momentum stocks, led by Microsoft Corp MSFT.O and Apple Inc AAPL.O were the heaviest weights on the S&P 500. By Stephen Culp NEW YORK, Nov 29 (Reuters) - U.S. stocks edged lower on Wednesday as a robust upward GDP revision eased recession fears, while Federal Reserve officials' remarks raised questions about the duration of the central bank's restrictive policy. In contrast to Barkin, Fed Governor Christopher Waller, widely considered a hawk, provided reassurance on Tuesday that the Fed has probably reached the end of its rate hike cycle.
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Interest rate sensitive momentum stocks, led by Microsoft Corp MSFT.O and Apple Inc AAPL.O were the heaviest weights on the S&P 500. The S&P 500 remains on track to notch its biggest monthly percentage gain since July 2022. And because of that, there's a repositioning of gains."
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12337.0
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2023-11-29 00:00:00 UTC
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US STOCKS-S&P 500 wobbles to lower close on mixed Fed messages, strong GDP data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-sp-500-wobbles-to-lower-close-on-mixed-fed-messages-strong-gdp-data
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nan
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nan
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By Stephen Culp
NEW YORK, Nov 29 (Reuters) - U.S. stocks edged lower on Wednesday as a robust upward GDP revision eased recession fears, while Federal Reserve officials' remarks raised questions about the duration of the central bank's restrictive policy ahead of inflation data due early Thursday.
The Nasdaq joined the S&P 500 in negative territory, while the Dow ended essentially flat.
Despite the indexes' languid movement over the last three sessions, November has been a banner month. The S&P 500 remains on track to notch its biggest monthly percentage gain since July 2022.
"The market has had huge returns, so there's certainly profit taking and repositioning; there's some consolidation going on here," said Tim Ghriskey, senior portfolio strategist Ingalls & Snyder in New York. "We've had very strong earnings and there's a lot of optimism. And because of that, there's a repositioning of gains."
In contrast to Barkin, Fed Governor Christopher Waller, widely considered a hawk, provided reassurance on Tuesday that the Fed has probably reached the end of its rate hike cycle. He hinted at the possibility of cutting rates in the near term to engineer a "soft landing" and avoid recession.
"The Fed's on hold now, but the mantra is still higher for longer," Ghriskey added. "The economy continues to be relatively strong there's no reason for the Fed to lower rates and risk a re-emergence of inflation."
Indeed, on Wednesday Cleveland Fed President Loretta Mester reiterated the central bank's need to remain "nimble" in its response to economic data.
Earlier in the session the Commerce Department upwardly revised its initial estimate on third-quarter gross domestic product, which underscored U.S. economic resilience but also appeared to give the Fed little reason to start cutting rates in the near future, as long as inflation remains well above its 2% target.
The Fed's Beige Book, which provides a region-by-region snapshot of the U.S. economy, was released mid-afternoon, showing economic activity has slowed modestly under the central bank's restrictive monetary policy.
Unofficially, the Dow Jones Industrial Average .DJI rose 13.84 points, or 0.04%, to 35,430.82, the S&P 500 .SPX lost 4.25 points, or 0.09%, to 4,550.64 and the Nasdaq Composite .IXIC dropped 23.27 points, or 0.16%, to 14,258.49.
Interest rate sensitive momentum stocks, led by Microsoft Corp MSFT.O and Apple Inc AAPL.Owere the heaviest weights on the S&P 500.
Shares of Humana Inc HUM.N and Cigna Group CI.N were sharply lower after a source familiar with the matter said the health insurers are in talks to merge.
General Motors GM.N jumped after the automaker announced a $10 billion share buyback and a 33% dividend boost. Ford Motor Co F.N shares advanced as well.
CrowdStrike Holdings CRWD.Osurged following its consensus-beating fourth-quarter revenue forecast.
NetApp NTAP.O leaped after the cloud-based data management platform increased its annual profit forecast.
US gross domestic product https://tmsnrt.rs/3QZotoK
(Reporting by Stephen Culp; Additional reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Richard Chang)
((stephen.culp@thomsonreuters.com; 646-223-6076))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Interest rate sensitive momentum stocks, led by Microsoft Corp MSFT.O and Apple Inc AAPL.Owere the heaviest weights on the S&P 500. By Stephen Culp NEW YORK, Nov 29 (Reuters) - U.S. stocks edged lower on Wednesday as a robust upward GDP revision eased recession fears, while Federal Reserve officials' remarks raised questions about the duration of the central bank's restrictive policy ahead of inflation data due early Thursday. Earlier in the session the Commerce Department upwardly revised its initial estimate on third-quarter gross domestic product, which underscored U.S. economic resilience but also appeared to give the Fed little reason to start cutting rates in the near future, as long as inflation remains well above its 2% target.
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Interest rate sensitive momentum stocks, led by Microsoft Corp MSFT.O and Apple Inc AAPL.Owere the heaviest weights on the S&P 500. By Stephen Culp NEW YORK, Nov 29 (Reuters) - U.S. stocks edged lower on Wednesday as a robust upward GDP revision eased recession fears, while Federal Reserve officials' remarks raised questions about the duration of the central bank's restrictive policy ahead of inflation data due early Thursday. The Fed's Beige Book, which provides a region-by-region snapshot of the U.S. economy, was released mid-afternoon, showing economic activity has slowed modestly under the central bank's restrictive monetary policy.
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Interest rate sensitive momentum stocks, led by Microsoft Corp MSFT.O and Apple Inc AAPL.Owere the heaviest weights on the S&P 500. By Stephen Culp NEW YORK, Nov 29 (Reuters) - U.S. stocks edged lower on Wednesday as a robust upward GDP revision eased recession fears, while Federal Reserve officials' remarks raised questions about the duration of the central bank's restrictive policy ahead of inflation data due early Thursday. In contrast to Barkin, Fed Governor Christopher Waller, widely considered a hawk, provided reassurance on Tuesday that the Fed has probably reached the end of its rate hike cycle.
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Interest rate sensitive momentum stocks, led by Microsoft Corp MSFT.O and Apple Inc AAPL.Owere the heaviest weights on the S&P 500. The S&P 500 remains on track to notch its biggest monthly percentage gain since July 2022. And because of that, there's a repositioning of gains."
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12338.0
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2023-11-29 00:00:00 UTC
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Financial Sector Update for 11/29/2023: PACI, GS, AAPL, BRK.A, BRK.B
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AAPL
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https://www.nasdaq.com/articles/financial-sector-update-for-11-29-2023%3A-paci-gs-aapl-brk.a-brk.b
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Financial stocks were advancing in late Wednesday afternoon trading, with the NYSE Financial Index rising 1.1% and the Financial Select Sector SPDR Fund (XLF) adding 1%.
The Philadelphia Housing Index was climbing 1%, and the Real Estate Select Sector SPDR Fund (XLRE) was up 1.1%.
Bitcoin (BTC-USD) was up 0.1% to $37,858, and the yield for 10-year US Treasuries was dropping 7 basis points to 4.27%.
In economic news, US gross domestic product was revised up to 5.2% growth in Q3, versus a 4.9% increase in the advance estimate and above the 5% increase expected in a survey compiled by Bloomberg. GDP rose by 2.1% in Q2.
In corporate news, Proof Acquisition Corp. I (PACI) shares surged 141% after it said Wednesday its shareholders approved the combination with aviation company Volato.
LCNB (LCNB) will acquire Eagle Financial Bancorp in a stock-and-cash deal that is expected to close in Q2 of 2024, the companies said Wednesday. LCNB shares rose 1.9%.
Apple (AAPL) is reportedly ending its credit card partnership with Goldman Sachs (GS). Goldman shares were rising 1.7%.
Berkshire Hathaway's (BRK.A, BRK.B) Vice Chair Charlie Munger died at 99 on Tuesday. The company's shares were slightly lower.
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 reportedly ending its credit card partnership with Goldman Sachs (GS). The Philadelphia Housing Index was climbing 1%, and the Real Estate Select Sector SPDR Fund (XLRE) was up 1.1%. I (PACI) shares surged 141% after it said Wednesday its shareholders approved the combination with aviation company Volato.
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Apple (AAPL) is reportedly ending its credit card partnership with Goldman Sachs (GS). Financial stocks were advancing in late Wednesday afternoon trading, with the NYSE Financial Index rising 1.1% and the Financial Select Sector SPDR Fund (XLF) adding 1%. The Philadelphia Housing Index was climbing 1%, and the Real Estate Select Sector SPDR Fund (XLRE) was up 1.1%.
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Apple (AAPL) is reportedly ending its credit card partnership with Goldman Sachs (GS). Financial stocks were advancing in late Wednesday afternoon trading, with the NYSE Financial Index rising 1.1% and the Financial Select Sector SPDR Fund (XLF) adding 1%. In economic news, US gross domestic product was revised up to 5.2% growth in Q3, versus a 4.9% increase in the advance estimate and above the 5% increase expected in a survey compiled by Bloomberg.
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Apple (AAPL) is reportedly ending its credit card partnership with Goldman Sachs (GS). Financial stocks were advancing in late Wednesday afternoon trading, with the NYSE Financial Index rising 1.1% and the Financial Select Sector SPDR Fund (XLF) adding 1%. LCNB shares rose 1.9%.
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12339.0
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2023-11-29 00:00:00 UTC
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US STOCKS-Wall Street modestly higher on mixed Fed messages, strong GDP data
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-street-modestly-higher-on-mixed-fed-messages-strong-gdp-data
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nan
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By Stephen Culp
NEW YORK, Nov 29 (Reuters) - Wall Street edged higher on Wednesday as a robust upward GDP revision eased worries about a possible U.S. recession, while Federal Reserve officials' remarks left unresolved questions about the duration of the central bank's restrictive policy.
All three indexes were modestly higher, paring initial gains after Richmond Fed President Thomas Barkin expressed skepticism that the central bank's tightening cycle is finished, keeping the option of another rate hike on the table in case inflation flares up again.
Despite the indexes' languid movement over the last three sessions, November has been a banner month. The S&P 500 remains on track to notch its biggest monthly percentage gain since July 2022.
"Investors are going with the flow, and the flow is upward as the year comes to a close," said Sam Stovall, chief investment strategist of CFRA Research in New York. "Investors are waiting for another catalyst - a catalyst of confidence - to help shift the market into overdrive so it can advance in December."
In contrast to Barkin, Fed Governor Christopher Waller, widely considered a hawk, provided reassurance on Tuesday that the Fed has probably reached the end of its rate hike cycle. He hinted at the possibility of cutting rates in the near term to engineer a "soft landing" and avoid recession.
"The Fed is going to remain data dependent. It doesn't want to, nor can it, give guidance on what it's going to do," Stovall added. "It doesn't want to tip its hand or give false hope. That's why they offer a wide variety of potential forward moves."
Indeed, on Wednesday Cleveland Fed President Loretta Mester reiterated the central bank's need to remain "nimble" in its response to economic data.
Earlier in the session the Commerce Department upwardly revised its initial estimate on third-quarter gross domestic product, which underscored U.S. economic resilience but also appeared to give the Fed little reason to start cutting rates in the near future, as long as inflation remains well above its 2% target.
The Fed's Beige Book, which provides a region-by-region snapshot of the U.S. economy, was released at 2:00 p.m. EST, showing economic activity has slowed modestly under the central bank's restrictive monetary policy.
At 2:12 p.m. ET, the Dow Jones Industrial Average .DJI rose 159.76 points, or 0.45%, to 35,576.74, the S&P 500 .SPX gained 13.04 points, or 0.29%, at 4,567.93 and the Nasdaq Composite .IXIC added 24.38 points, or 0.17%, at 14,306.14.
Among the 11 major sectors of the S&P 500, financial .SPSY and real estate .SPLRCR were up the most, while communications services .SPLRCL was the laggard.
Interest rate sensitive momentum stocks, led by Microsoft Corp MSFT.O and Apple Inc AAPL.O were the heaviest weights on the S&P 500.
General Motors GM.N jumped 10.2% after the automaker announced a $10 billion share buyback and a 33% dividend boost. Ford Motor Co F.N shares advanced 3.0%.
CrowdStrike Holdings CRWD.Osurged 10.1% following its consensus-beating fourth-quarter revenue forecast.
NetApp NTAP.O leaped 15.4% after the cloud-based data management platform increased its annual profit forecast.
Advancing issues outnumbered decliners on the NYSE by a 3.07-to-1 ratio; on Nasdaq, a 2.03-to-1 ratio favored advancers.
The S&P 500 posted 30 new 52-week highs and one new low; the Nasdaq Composite recorded 80 new highs and 74 new lows.
US gross domestic product https://tmsnrt.rs/3QZotoK
(Reporting by Stephen Culp; Additional reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Richard Chang)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Interest rate sensitive momentum stocks, led by Microsoft Corp MSFT.O and Apple Inc AAPL.O were the heaviest weights on the S&P 500. By Stephen Culp NEW YORK, Nov 29 (Reuters) - Wall Street edged higher on Wednesday as a robust upward GDP revision eased worries about a possible U.S. recession, while Federal Reserve officials' remarks left unresolved questions about the duration of the central bank's restrictive policy. All three indexes were modestly higher, paring initial gains after Richmond Fed President Thomas Barkin expressed skepticism that the central bank's tightening cycle is finished, keeping the option of another rate hike on the table in case inflation flares up again.
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Interest rate sensitive momentum stocks, led by Microsoft Corp MSFT.O and Apple Inc AAPL.O were the heaviest weights on the S&P 500. By Stephen Culp NEW YORK, Nov 29 (Reuters) - Wall Street edged higher on Wednesday as a robust upward GDP revision eased worries about a possible U.S. recession, while Federal Reserve officials' remarks left unresolved questions about the duration of the central bank's restrictive policy. All three indexes were modestly higher, paring initial gains after Richmond Fed President Thomas Barkin expressed skepticism that the central bank's tightening cycle is finished, keeping the option of another rate hike on the table in case inflation flares up again.
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Interest rate sensitive momentum stocks, led by Microsoft Corp MSFT.O and Apple Inc AAPL.O were the heaviest weights on the S&P 500. All three indexes were modestly higher, paring initial gains after Richmond Fed President Thomas Barkin expressed skepticism that the central bank's tightening cycle is finished, keeping the option of another rate hike on the table in case inflation flares up again. In contrast to Barkin, Fed Governor Christopher Waller, widely considered a hawk, provided reassurance on Tuesday that the Fed has probably reached the end of its rate hike cycle.
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Interest rate sensitive momentum stocks, led by Microsoft Corp MSFT.O and Apple Inc AAPL.O were the heaviest weights on the S&P 500. All three indexes were modestly higher, paring initial gains after Richmond Fed President Thomas Barkin expressed skepticism that the central bank's tightening cycle is finished, keeping the option of another rate hike on the table in case inflation flares up again. "The Fed is going to remain data dependent.
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12340.0
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2023-11-29 00:00:00 UTC
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South Africa smartphone shipments grow 73% as Chinese manufacturers push products
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AAPL
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https://www.nasdaq.com/articles/south-africa-smartphone-shipments-grow-73-as-chinese-manufacturers-push-products
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nan
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JOHANNESBURG, Nov 29 (Reuters) - Smartphone shipments in South Africa grew 73% year-on-year in the third quarter and were up 44% from the previous three months as major Chinese manufacturers pushed their presence in the continent's most advanced economy, Counterpoint Research said.
Although Chinese manufactures are eyeing Middle East and Africa (MEA) markets more broadly, Counterpoint said South Africa was seen as particularly attractive due to higher income levels and better connectivity infrastructure.
After the latest round of spectrum auctions in 2022, mobile phone operators have pledged to expand both 4G and 5G coverage to more parts of the country, while also enhancing rural, peri-urban and urban networks.
Chinese phone manufacturers such as HONOR, Xiaomi 1810.HK and Transsion 688036.SS are launching multiple products at lower price points to accelerate migration from more basic feature phones, Counterpoint added.
But market expansion in South Africa is also expected to be driven by the high-end segment and trend for premiumisation, with Samsung 005930.KS and Apple AAPL.O likely to benefit the most.
Smartphone shipments reached the highest level since 2021 in the quarter, just before the global economic slowdown started, Counterpoint said.
"South Africa is among the fastest-growing smartphone markets in the MEA region. As the nation's economic situation is recovering, Chinese original equipment manufacturers are aggressively trying to capture demand," Counterpoint's senior research analyst Yang Wang said.
The entry of HONOR to South Africa has stepped up competition in the low- and mid-tier sector with Xiaomi and Samsung, the research firm added.
Still, Samsung led the market during the quarter despite the stiff competition. It was the leading brand across all price segments, with A-series devices continuing to drive volumes, Counterpoint said.
(Reporting by Nqobile Dludla; Editing by Kirsten Donovan)
((nqobile.dludla@thomsonreuters.com; +27103461066;))
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 market expansion in South Africa is also expected to be driven by the high-end segment and trend for premiumisation, with Samsung 005930.KS and Apple AAPL.O likely to benefit the most. JOHANNESBURG, Nov 29 (Reuters) - Smartphone shipments in South Africa grew 73% year-on-year in the third quarter and were up 44% from the previous three months as major Chinese manufacturers pushed their presence in the continent's most advanced economy, Counterpoint Research said. After the latest round of spectrum auctions in 2022, mobile phone operators have pledged to expand both 4G and 5G coverage to more parts of the country, while also enhancing rural, peri-urban and urban networks.
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But market expansion in South Africa is also expected to be driven by the high-end segment and trend for premiumisation, with Samsung 005930.KS and Apple AAPL.O likely to benefit the most. JOHANNESBURG, Nov 29 (Reuters) - Smartphone shipments in South Africa grew 73% year-on-year in the third quarter and were up 44% from the previous three months as major Chinese manufacturers pushed their presence in the continent's most advanced economy, Counterpoint Research said. Although Chinese manufactures are eyeing Middle East and Africa (MEA) markets more broadly, Counterpoint said South Africa was seen as particularly attractive due to higher income levels and better connectivity infrastructure.
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But market expansion in South Africa is also expected to be driven by the high-end segment and trend for premiumisation, with Samsung 005930.KS and Apple AAPL.O likely to benefit the most. JOHANNESBURG, Nov 29 (Reuters) - Smartphone shipments in South Africa grew 73% year-on-year in the third quarter and were up 44% from the previous three months as major Chinese manufacturers pushed their presence in the continent's most advanced economy, Counterpoint Research said. Although Chinese manufactures are eyeing Middle East and Africa (MEA) markets more broadly, Counterpoint said South Africa was seen as particularly attractive due to higher income levels and better connectivity infrastructure.
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But market expansion in South Africa is also expected to be driven by the high-end segment and trend for premiumisation, with Samsung 005930.KS and Apple AAPL.O likely to benefit the most. JOHANNESBURG, Nov 29 (Reuters) - Smartphone shipments in South Africa grew 73% year-on-year in the third quarter and were up 44% from the previous three months as major Chinese manufacturers pushed their presence in the continent's most advanced economy, Counterpoint Research said. The entry of HONOR to South Africa has stepped up competition in the low- and mid-tier sector with Xiaomi and Samsung, the research firm added.
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12341.0
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2023-11-29 00:00:00 UTC
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Why It Makes Sense to Own Both AMD and Nvidia
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AAPL
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https://www.nasdaq.com/articles/why-it-makes-sense-to-own-both-amd-and-nvidia
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
I’ve been guilty over the last several years of creating an us versus them situation regarding Advance Micro Devices (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA). While I’m partial to the latter, owning AMD stock is not wrong. Not by a long shot.
InvestorPlace contributor Dana Blankenhorn recently discussed why he still owns AMD. He pointed out that Nvidia might be the leader in graphics processing units (GPUs), but AMD has done an excellent job accelerating its efforts in artificial intelligence (AI) while also taking market share in central processing units (CPUs).
My colleague has long positions in both AMD and NVDA. He’s proof you can and SHOULD own both stocks if you can swing it. Here’s why.
AI Is Rapidly Expanding
There is a reason the Magnificent Seven has delivered most of the S&P 500’s performance in 2023. It has everything to do with AI. These seven stocks account for 29% of the index’s total market capitalization and 29% of its performance, while the other 493 stocks account for the rest. All of them are knee-deep in machine learning.
I know my colleague owns five of the Mag 7. I’m less confident whether he owns Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA). However, what’s important is that he’s positioned himself to benefit from the rise in AI.
Now, given the demise of cannabis stocks over the past three years, I’m always suspicious of an overly focused portfolio. However, I don’t think there’s any question AI is a much different kettle of fish than cannabis. In 10 years, AI will undoubtedly be a big part of our lives. You can’t say the same about cannabis. That’s the difference.
As a portfolio strategy, I don’t see an issue with Blankenhorn’s move. There are plenty of investors just like him. The late Charlie Munger used to say, “It’s not that easy to have a vast plethora of good opportunities that are easily identified. And if you’ve only got three, I’d rather be in my best ideas instead of my worst,” CNBC reported.
Makes sense to me.
Why Own Both? Part 1
Nvidia is, hands down, the leader in AI at the moment. The company’s move to democratize AI through the launch of AI Workbench is one of many brilliant moves by CEO Jensen Huang to bring AI to the masses. It’s not enough to produce superfast chips like the H100; you’ve got to get businesses involved in actively using and benefiting from AI. Nvidia’s doing that.
However, there is no right way to grow AI.
AMD recently hired one-time Cray (supercomputing) Chief Technology Officer Steve Scott. He’ll work with the company and CEO Lisa Su to develop high-level AI and supercomputing at AMD. That work is bound to create some exciting products to rival Nvidia AI down the road.
In the meantime, as my colleague said, it continues to capture more of the CPU market at a time when PC use has returned to growth. Owning both stocks lets you cover more ground in technology’s secular trends.
Why Own Both? Part 2
This last point is one of owning non-correlating assets. Over the past few years, I’ve noticed when NVDA stock goes on a tear, AMD lags behind. Conversely, as is the case right now, when AMD goes on a run, NVDA’s performance seems to slow.
In May 2017, I suggested that NVDA had a much better chance to hit $200 by the year’s end than AMD had of hitting $16. At the time, Nvidia was trading at $142 — it split 4-for-1 in July 2021 — finishing the year at $194, just shy of $200. AMD stock in May 2017 was around $11.40. It closed the year around $10.30.
However, in 2018, the roles were reversed, with AMD gaining 71% on the year and NVDA losing 33% of its value. Over the next five years, the two companies took turns delivering exceptional performance for their shareholders. Most of the time, just one of the two moved higher.
That is why owning both stocks makes sense. More often than not, their returns are relatively uncorrelated.
On the date of publication, Will Ashworth 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.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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The post Why It Makes Sense to Own Both AMD and Nvidia 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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I’m less confident whether he owns Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA). AMD recently hired one-time Cray (supercomputing) Chief Technology Officer Steve Scott. He’ll work with the company and CEO Lisa Su to develop high-level AI and supercomputing at AMD.
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I’m less confident whether he owns Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips I’ve been guilty over the last several years of creating an us versus them situation regarding Advance Micro Devices (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA). That is why owning both stocks makes sense.
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I’m less confident whether he owns Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA). InvestorPlace - Stock Market News, Stock Advice & Trading Tips I’ve been guilty over the last several years of creating an us versus them situation regarding Advance Micro Devices (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA). The company’s move to democratize AI through the launch of AI Workbench is one of many brilliant moves by CEO Jensen Huang to bring AI to the masses.
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I’m less confident whether he owns Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA). My colleague has long positions in both AMD and NVDA. It has everything to do with AI.
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2023-11-29 00:00:00 UTC
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Goldman (GS) Gets Exit Proposal From Apple on Consumer Business
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AAPL
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https://www.nasdaq.com/articles/goldman-gs-gets-exit-proposal-from-apple-on-consumer-business
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nan
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nan
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The Goldman Sachs Group, Inc. GS received a proposal from Apple Inc. AAPL to end the credit card partnership in the next 12 to 15 months. This was first reported by the Wall Street Journal.
Per Reuters article, when asked about the proposal, Apple stated, "Apple and Goldman Sachs are focused on providing an incredible experience for our customers to help them lead healthier financial lives. The award-winning Apple Card has seen a great reception from consumers, and we will continue to innovate and deliver the best tools and services for them".
In 2019, Apple Card was introduced by AAPL and issued by GS. Apple Card reinvented the concept of credit cards and enhanced the level of privacy and security.
In April 2023, a savings account facility by Goldman was offered to owners and co-owners of Apple Card subject to certain eligibility requirements. As of Apr 14, 2023, the savings account offered an annual percentage yield of 4.15%. This involved no fees, no minimum deposits, and no minimum balance requirements. On Aug 2, 2023, Apple reported that the savings account had reached over $10 billion in deposits since its introduction.
Per a Reuters article, the proposal included retreating from the entire consumer partnership with Goldman. This included both credit card and savings account facilities.
GS’ partnership with AAPL was part of Wall Street Banks’ strategy to grow its consumer franchise. The partnership was extended a year ago and was expected to continue through 2029.
Per Bloomberg, a person familiar with the matter stated, “The iPhone maker remains committed to its Apple Card credit card and savings account and doesn’t plan to discontinue the products — whether or not Goldman is involved”. Additionally, the person asserted that Apple has not yet initiated conversations with other firms that would replace GS.
Apple's proposal to exit its partnership with Goldman comes in line with the bank pulling back from its consumer lending business as it proved to be costlier than expected. Hence, Goldman’s CEO, David Solomon, decided to shift the bank’s focus back to its traditional strengths — investment banking and trading.
Accordingly, earlier this month, GS has made efforts to offload its General Motors Company GM credit card program (Read More - Goldman Sachs (GS) Plans to Offload GM Credit Card Program). The firm informed its employees within the Platform Solutions division, who work on GM card, that this process of searching for a new issuer will be initiated by GM.
Last month, 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.
Goldman’s shares have gained 1.7% over the past six months compared with the industry’s 1.5% 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.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
It could rival or surpass other recent Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
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The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
General Motors Company (GM) : 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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The Goldman Sachs Group, Inc. GS received a proposal from Apple Inc. AAPL to end the credit card partnership in the next 12 to 15 months. In 2019, Apple Card was introduced by AAPL and issued by GS. GS’ partnership with AAPL was part of Wall Street Banks’ strategy to grow its consumer franchise.
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The Goldman Sachs Group, Inc. GS received a proposal from Apple Inc. AAPL to end the credit card partnership in the next 12 to 15 months. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report To read this article on Zacks.com click here. In 2019, Apple Card was introduced by AAPL and issued by GS.
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The Goldman Sachs Group, Inc. GS received a proposal from Apple Inc. AAPL to end the credit card partnership in the next 12 to 15 months. Click to get this free report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report To read this article on Zacks.com click here. In 2019, Apple Card was introduced by AAPL and issued by GS.
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The Goldman Sachs Group, Inc. GS received a proposal from Apple Inc. AAPL to end the credit card partnership in the next 12 to 15 months. In 2019, Apple Card was introduced by AAPL and issued by GS. GS’ partnership with AAPL was part of Wall Street Banks’ strategy to grow its consumer franchise.
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2023-11-29 00:00:00 UTC
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US STOCKS-Wall St gains on rate cut prospects, soft landing hopes
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AAPL
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https://www.nasdaq.com/articles/us-stocks-wall-st-gains-on-rate-cut-prospects-soft-landing-hopes
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nan
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nan
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By Shristi Achar A and Amruta Khandekar
Nov 29 (Reuters) - Wall Street's three main indexes rose on Wednesday as U.S. Treasury yields slipped to multi-month lows on growing rate cut optimism, while latest data on economic growth fueled hopes of a soft landing.
The S&P 500 .SPX and the Dow Jones .DJI are within a close range of their highest intra-day levels in 2023.
U.S. stocks ended marginally higher on Tuesday after Fed Governor Christopher Waller, deemed a hawk, hinted at lower interest rates in the months ahead if inflation continued to eases.
Other similar positive comments sent Treasury yields tumbling, with the yield on the benchmark 10-year note US10YT=RR last at an over two-month low of 4.2686%. US/
The drop in yields on fixed-income investments, which make equities more attractive, lifted megacap stocks, with Nvidia NVDA.O, Tesla TSLA.O and Apple AAPL.O up between 0.8% and 1.8%.
Ten of the 11 major S&P 500 sectors traded higher, led by information technology .SPLRCT, while the small-cap Russell 2000 index .RUT rose 1.2%.
"Markets are starting to adjust to the idea that there will indeed be a soft landing and that lower interest rates or stable interest rates will prevail throughout 2024," said Peter Andersen, founder of Andersen Capital Management in Boston.
Andersen said that strong GDP figures, the second estimate released earlier in the day, add to the narrative of the Fed managing to avoid a recession that will support a strong year-end rally.
The latest GDP data showed the U.S. economy in the third quarter grew faster than initially thought.
Traders are now awaiting the release of the "Beige Book", a snapshot of the U.S. economy, at 2:00 p.m. ET, and the personal consumption expenditure (PCE) index - Fed's preferred inflation gauge- due on Thursday, for further cues on how the economy is faring under restrictive monetary conditions.
Money market participants have fully priced in a pause in rate hike in the upcoming December meeting, while bets of rate cuts starting as early as March have gone up to 44.5% from 34.6% a day earlier, according to the CME Group's FedWatch tool.
At 9:37 a.m. ET, the Dow Jones Industrial Average .DJI was up 64.38 points, or 0.18%, at 35,481.36, the S&P 500 .SPX was up 28.26 points, or 0.62%, at 4,583.15, and the Nasdaq Composite .IXIC was up 125.18 points, or 0.88%, at 14,406.93.
Among single stocks, General MotorsGM.N rose 10.3% as the automaker said it will buy back $10 billion in shares and boost its dividend by 33%. Shares of rival Ford F.N also rose 4.5%.
CrowdStrike HoldingsCRWD.O added 3.8% as the firm forecast fourth-quarter revenue above Street estimates.
NetAppNTAP.O jumped 14.6% after the cloud-based data management platform raised its annual profit forecast. Advancing issues outnumbered decliners by a 4.75-to-1 ratio on the NYSE and by a 3.01-to-1 ratio on the Nasdaq.
The S&P index recorded 21 new 52-week highs and no new lows, while the Nasdaq recorded 46 new highs and 23 new lows.
(Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Editing by Shinjini Ganguli)
((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/ The drop in yields on fixed-income investments, which make equities more attractive, lifted megacap stocks, with Nvidia NVDA.O, Tesla TSLA.O and Apple AAPL.O up between 0.8% and 1.8%. By Shristi Achar A and Amruta Khandekar Nov 29 (Reuters) - Wall Street's three main indexes rose on Wednesday as U.S. Treasury yields slipped to multi-month lows on growing rate cut optimism, while latest data on economic growth fueled hopes of a soft landing. U.S. stocks ended marginally higher on Tuesday after Fed Governor Christopher Waller, deemed a hawk, hinted at lower interest rates in the months ahead if inflation continued to eases.
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US/ The drop in yields on fixed-income investments, which make equities more attractive, lifted megacap stocks, with Nvidia NVDA.O, Tesla TSLA.O and Apple AAPL.O up between 0.8% and 1.8%. By Shristi Achar A and Amruta Khandekar Nov 29 (Reuters) - Wall Street's three main indexes rose on Wednesday as U.S. Treasury yields slipped to multi-month lows on growing rate cut optimism, while latest data on economic growth fueled hopes of a soft landing. "Markets are starting to adjust to the idea that there will indeed be a soft landing and that lower interest rates or stable interest rates will prevail throughout 2024," said Peter Andersen, founder of Andersen Capital Management in Boston.
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US/ The drop in yields on fixed-income investments, which make equities more attractive, lifted megacap stocks, with Nvidia NVDA.O, Tesla TSLA.O and Apple AAPL.O up between 0.8% and 1.8%. By Shristi Achar A and Amruta Khandekar Nov 29 (Reuters) - Wall Street's three main indexes rose on Wednesday as U.S. Treasury yields slipped to multi-month lows on growing rate cut optimism, while latest data on economic growth fueled hopes of a soft landing. "Markets are starting to adjust to the idea that there will indeed be a soft landing and that lower interest rates or stable interest rates will prevail throughout 2024," said Peter Andersen, founder of Andersen Capital Management in Boston.
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US/ The drop in yields on fixed-income investments, which make equities more attractive, lifted megacap stocks, with Nvidia NVDA.O, Tesla TSLA.O and Apple AAPL.O up between 0.8% and 1.8%. By Shristi Achar A and Amruta Khandekar Nov 29 (Reuters) - Wall Street's three main indexes rose on Wednesday as U.S. Treasury yields slipped to multi-month lows on growing rate cut optimism, while latest data on economic growth fueled hopes of a soft landing. The S&P 500 .SPX and the Dow Jones .DJI are within a close range of their highest intra-day levels in 2023.
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2023-11-29 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-10
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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 94% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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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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2023-11-29 00:00:00 UTC
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Nasdaq Bear Market: 2 Stocks I'm Buying During a Recession
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AAPL
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https://www.nasdaq.com/articles/nasdaq-bear-market%3A-2-stocks-im-buying-during-a-recession-1
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nan
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nan
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There's been a lot of fluctuation in the stock market in recent years. The COVID-19 pandemic sent many stocks skyrocketing in 2020 and 2021 as lockdowns led to increased spending on tech and home entertainment products. However, macroeconomic headwinds in 2022 brought the market crashing back down, with countless companies losing what they had gained the year before.
In 2023, stocks have once again swung in the opposite direction. Easing inflation and excitement over high-growth industries like artificial intelligence (AI) have allowed for a recovery, with the Nasdaq Composite index up 36% since Jan. 1.
Data by YCharts
Recent volatility has had many analysts at odds on whether this is a bear or bull market, with varying definitions for both terms. However, the more standard definition of a bear market is when the market declines 20% from its previous high. Meanwhile, a bull market hasn't returned until it rises above that high. The chart above shows the Nasdaq entered a bear market in 2022 and has yet to see another bull market.
Alongside residual fears of a recession next year, now is an excellent time to get familiar with some of the best stocks to buy if the market takes a dip. Here are two stocks I'm buying in a potential recession.
1. Apple
Apple (NASDAQ: AAPL) is one of those stocks that rarely goes on sale. Its position as the world's most valuable company, with a market cap of $2.9 trillion and a stock price that rose 335% over the last five years, has created loyal investors that tend to buy or hold during challenging times.
For instance, in 2022 the Nasdaq Composite plunged 33%. Yet as the chart below shows, Apple was among the few big tech companies to outperform the index, along with many of its competitors.
Data by YCharts
This year Apple has faced repeated declines in its product business, with revenue dipping 3% year over year in its fiscal 2023. Poor economic conditions curbed consumer spending across the tech industry and hit some of Apple's highest-earnings segments. However, the company's reputation for reliable gains over the long term has seen its shares climb 46% since Jan. 1.
Loyal investors will only take Apple so far, and are not a compelling enough reason to buy. However, it does instill some reliability in its stock during temporary headwinds.
Meanwhile, the company's solid financials and prospects in multiple lucrative markets could take it far in the coming years. Despite declines in its product sales, Apple's free cash flow topped $99 billion this year, suggesting the company has the funds to overcome current hurdles and continue investing in its business.
Alongside a booming digital services business and a gradual expansion in AI, Apple's stock is a no-brainer in a bear market.
2. Costco
As one of the world's biggest retailers, Costco's (NASDAQ: COST) business is vulnerable to economic fluctuation. However, its unique model of selling wholesale items at market-low prices for the cost of an annual membership has won over shoppers worldwide and granted the company stellar long-term growth. As a result, a recession could be the perfect time to fill up on Costco's stock while it's temporarily down.
Data by YCharts
The table above shows Costco's stock has climbed significantly higher than those of most of the biggest U.S. retailers since 2018. Also, its shares delivered a more consistent rise over that time rather than the deep peaks and valleys some of its competitors experienced.
In addition to reliability, Costco's latest quarterly report indicates it could be on a lucrative growth path heading into next year. In the fourth quarter of 2023, Costco's revenue rose 9.5% year over year, beating analysts' expectations by more than $1 billion. The company posted a 4% spike in international income, a segment with massive growth potential.
Costco operates 870 stores across more than a dozen countries and is expanding rapidly as it opens about 25 new stores annually. The company's business has proven its ability to traverse continents and cultures, succeeding in almost every new market it enters.
In fact, Costco ventured into China for the first time this year, and already has five locations in the region. The retail giant has barely scratched the surface of its international expansion and will likely continue seeing big gains over the long term.
Over the past five years, Costco's revenue soared 125%, with operating income up 193%. The company is one of the best long-term ways to invest in retail, and an attractive option during an economic downturn.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Costco Wholesale, Microsoft, Target, and Walmart. 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 those stocks that rarely goes on sale. Its position as the world's most valuable company, with a market cap of $2.9 trillion and a stock price that rose 335% over the last five years, has created loyal investors that tend to buy or hold during challenging times. Despite declines in its product sales, Apple's free cash flow topped $99 billion this year, suggesting the company has the funds to overcome current hurdles and continue investing in its business.
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Apple Apple (NASDAQ: AAPL) is one of those stocks that rarely goes on sale. Data by YCharts This year Apple has faced repeated declines in its product business, with revenue dipping 3% year over year in its fiscal 2023. Costco As one of the world's biggest retailers, Costco's (NASDAQ: COST) business is vulnerable to economic fluctuation.
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Apple Apple (NASDAQ: AAPL) is one of those stocks that rarely goes on sale. Its position as the world's most valuable company, with a market cap of $2.9 trillion and a stock price that rose 335% over the last five years, has created loyal investors that tend to buy or hold during challenging times. Data by YCharts This year Apple has faced repeated declines in its product business, with revenue dipping 3% year over year in its fiscal 2023.
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Apple Apple (NASDAQ: AAPL) is one of those stocks that rarely goes on sale. The chart above shows the Nasdaq entered a bear market in 2022 and has yet to see another bull market. Data by YCharts This year Apple has faced repeated declines in its product business, with revenue dipping 3% year over year in its fiscal 2023.
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2023-11-29 00:00:00 UTC
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ANALYSIS-After Munger's death, Berkshire succession comes into focus
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AAPL
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https://www.nasdaq.com/articles/analysis-after-mungers-death-berkshire-succession-comes-into-focus-0
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nan
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nan
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By Jonathan Stempel
Nov 29 (Reuters) - The death of Berkshire Hathaway's BRKa.NCharlie Munger heralds the end of an era, leaving Warren Buffett as the conglomerate's lone investing legend and shining the spotlight on managers who have largely operated in their shadow.
Few companies have been so closely associated with their leaders as Berkshire has with Buffett and Munger, who knew each other for more than six decades, the last 45 years as the Omaha, Nebraska-based conglomerate's chairman and vice chairman.
Munger's death on Tuesday, five weeks shy of his 100th birthday, leaves Berkshire Vice Chairmen Greg Abel and Ajit Jain, who respectively oversee its non-insurance and insurance businesses, as the 93-year-old Buffett's top advisers and sounding boards.
They became vice chairmen in 2018, started taking a more prominent public role only at the most recent of Berkshire's annual meetings, and will have bigger boots to fill than at almost any other company.
Managers have said Abel fully embraces Berkshire's culture, which includes an extreme decentralization that gives business units broad autonomy.
That means big units such as the BNSF railroad and Geico car insurer, each with tens of thousands of employees, and small units such as Borsheims jewelry, with about 142 employees, can run without interference from Berkshire headquarters, which employs only about 26 people.
But Abel and Jain have different styles from Buffett and Munger.
At the 2021 annual meeting, Jain was asked how he and Abel interact with each other.
"There is no question that the relationship Warren has with Charlie is unique and it's not going to be duplicated," Jain said. "We don't interact with each other as often as Warren and Charlie do. But every quarter we will talk to each other about our respective businesses."
Abel said he and Jain regularly consulted with one another, and in particular when something unusual was happening at one of Berkshire's businesses.
Investors say they have faith.
"I can’t imagine investors haven't thought about what happens when Buffett is gone as well," said Bill Stone, chief investment officer at Glenview Trust. "You don’t need them to be as good as Buffett or Munger to make Berkshire a good company and arguably a great company."
Berkshire did not immediately respond to a request for comment outside business hours.
CEO-DESIGNATE
Berkshire has had a succession plan since at least 2006 when Buffett, then 75, told shareholders the company he has run since 1965 would be prepared for his departure.
Munger inadvertently signaled during Berkshire's 2021 annual meeting that Abel, a 61-year-old Edmonton, Alberta, native who spent a quarter century at what is now Berkshire Hathaway Energy, was the CEO designate.
Jain, 72, would retain oversight of insurance operations.
Buffett has praised both executives, calling Abel "a first-class human being" in a 2013 video message and referring to Jain as a "superstar."
A lifelong hockey fan, Abel graduated in 1984 from the University of Alberta, worked at PricewaterhouseCoopers and energy firm CalEnergy and joined the company, then known as MidAmerican Energy, in 1992, which Berkshire took over in 2000.
Abel became MidAmerican's chief in 2008 and benefited from its ability, unusual in the utility industry, to retain earnings rather than pay dividends. That freed him to make acquisitions, and expand into renewable energy.
Investors will have to wait until Abel takes over to see his willingness to shed businesses that are underperforming or have mediocre outlooks - his predecessors liked to buy and hold businesses forever - or whether Berkshire might pay its first dividend since 1967.
Jain, who was born in the Indian state of Odisha, has specialized in pricing for risk, especially large risks such as natural catastrophes. He joined Berkshire in 1986.
Besides the two top executives, Berkshire's plan also calls for Buffett's eldest son Howard Buffett to become non-executive chairman, charged mainly with preserving Berkshire's culture.
Todd Combs and Ted Weschler, who help Buffett run Berkshire's $300 billion-plus common stock portfolio - about half of which is in one stock, Apple AAPL.O - appear in line to take over all of it.
"Berkshire has talented people there that will help with the stock picking," said Bill Smead, chief investment officer at Smead Capital Management in Phoenix. "But it will never be the same."
LOSS OF LEGACY
For shareholders, a signature in Berkshire's universe is its annual meeting, a pilgrimage known as "Woodstock for Capitalists," where Buffett and Munger would answer more than five hours of shareholder questions.
It is a weekend of shopping, investor conferences and events that draws tens of thousands of people to Omaha in early May, even though fans can watch it streamed on their home computers or smartphones.
Many shareholders, especially local, have said they will continue going, but others have been less sure.
"What really glued us to these men was their advice on living a full life by instructing people how to think clearly, to be honest with oneself, to learn from mistakes and to avoid calamities," said Whitney Tilson, an investor who previously ran T2 Partners and Kase Capital and has attended many meetings.
In May 2020, at the height of the pandemic, Buffett held the meeting virtually from Omaha. Munger didn't attend.
"It particularly doesn't feel like an annual meeting because my partner of 60 years, Charlie Munger, is not sitting up here," Buffett said. "I think most of the people who come to our meeting really come to listen to Charlie."
(Reporting by Jonathan Stempel in New York; editing by Megan Davies, Paritosh Bansal and Stephen Coates)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.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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Todd Combs and Ted Weschler, who help Buffett run Berkshire's $300 billion-plus common stock portfolio - about half of which is in one stock, Apple AAPL.O - appear in line to take over all of it. By Jonathan Stempel Nov 29 (Reuters) - The death of Berkshire Hathaway's BRKa.NCharlie Munger heralds the end of an era, leaving Warren Buffett as the conglomerate's lone investing legend and shining the spotlight on managers who have largely operated in their shadow. Munger's death on Tuesday, five weeks shy of his 100th birthday, leaves Berkshire Vice Chairmen Greg Abel and Ajit Jain, who respectively oversee its non-insurance and insurance businesses, as the 93-year-old Buffett's top advisers and sounding boards.
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Todd Combs and Ted Weschler, who help Buffett run Berkshire's $300 billion-plus common stock portfolio - about half of which is in one stock, Apple AAPL.O - appear in line to take over all of it. By Jonathan Stempel Nov 29 (Reuters) - The death of Berkshire Hathaway's BRKa.NCharlie Munger heralds the end of an era, leaving Warren Buffett as the conglomerate's lone investing legend and shining the spotlight on managers who have largely operated in their shadow. "You don’t need them to be as good as Buffett or Munger to make Berkshire a good company and arguably a great company."
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Todd Combs and Ted Weschler, who help Buffett run Berkshire's $300 billion-plus common stock portfolio - about half of which is in one stock, Apple AAPL.O - appear in line to take over all of it. Munger's death on Tuesday, five weeks shy of his 100th birthday, leaves Berkshire Vice Chairmen Greg Abel and Ajit Jain, who respectively oversee its non-insurance and insurance businesses, as the 93-year-old Buffett's top advisers and sounding boards. Munger inadvertently signaled during Berkshire's 2021 annual meeting that Abel, a 61-year-old Edmonton, Alberta, native who spent a quarter century at what is now Berkshire Hathaway Energy, was the CEO designate.
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Todd Combs and Ted Weschler, who help Buffett run Berkshire's $300 billion-plus common stock portfolio - about half of which is in one stock, Apple AAPL.O - appear in line to take over all of it. But Abel and Jain have different styles from Buffett and Munger. For shareholders, a signature in Berkshire's universe is its annual meeting, a pilgrimage known as "Woodstock for Capitalists," where Buffett and Munger would answer more than five hours of shareholder questions.
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Should WisdomTree U.S. LargeCap Dividend ETF (DLN) Be on Your Investing Radar?
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https://www.nasdaq.com/articles/should-wisdomtree-u.s.-largecap-dividend-etf-dln-be-on-your-investing-radar-10
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If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the WisdomTree U.S. LargeCap Dividend ETF (DLN), a passively managed exchange traded fund launched on 06/16/2006.
The fund is sponsored by Wisdomtree. It has amassed assets over $3.53 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Large cap companies usually 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.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
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 0.28%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.53%.
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 to the Information Technology sector--about 19.80% of the portfolio. Healthcare and Financials round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.42% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM).
The top 10 holdings account for about 26.68% of total assets under management.
Performance and Risk
DLN seeks to match the performance of the WisdomTree U.S. LargeCap Dividend Index before fees and expenses. The WisdomTree U.S. LargeCap Dividend Index is a fundamentally weighted index that measures the performance of the large-capitalization segment of the U.S. dividend-paying market.
The ETF has added roughly 4.40% so far this year and is up about 2.80% in the last one year (as of 11/29/2023). In the past 52-week period, it has traded between $58.89 and $65.66.
The ETF has a beta of 0.89 and standard deviation of 14.14% for the trailing three-year period, making it a medium risk choice in the space. With about 300 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. LargeCap Dividend 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, DLN is a good option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $50.62 billion in assets, Vanguard Value ETF has $99.91 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
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
WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.42% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the WisdomTree U.S. LargeCap Dividend ETF (DLN), a passively managed exchange traded fund launched on 06/16/2006.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.42% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the WisdomTree U.S. LargeCap Dividend ETF (DLN), a passively managed exchange traded fund launched on 06/16/2006.
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Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.42% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Alternatives WisdomTree U.S. LargeCap Dividend 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 4.42% of total assets, followed by Microsoft Corp (MSFT) and Exxon Mobil Corp (XOM). Click to get this free report WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Exxon Mobil Corporation (XOM) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the WisdomTree U.S. LargeCap Dividend ETF (DLN), a passively managed exchange traded fund launched on 06/16/2006.
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Is ProShares S&P Technology Dividend Aristocrats ETF (TDV) a Strong ETF Right Now?
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https://www.nasdaq.com/articles/is-proshares-sp-technology-dividend-aristocrats-etf-tdv-a-strong-etf-right-now-1
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Launched on 11/05/2019, the ProShares S&P Technology Dividend Aristocrats ETF (TDV) is a smart beta exchange traded fund offering broad exposure to the Technology ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is sponsored by Proshares. It has amassed assets over $239.83 million, making it one of the average sized ETFs in the Technology ETFs. This particular fund seeks to match the performance of the S&P TECHNOLOGY DIVIDEND ARISTOCRATS INDX before fees and expenses.
The S&P Technology Dividend Aristocrats Index targets companies from information technology, internet and direct marketing retail, interactive home entertainment, and interactive media and services segments of the economy.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.45% for TDV, making it one of the cheaper products in the space.
TDV's 12-month trailing dividend yield is 1.31%.
Performance and Risk
The ETF has gained about 18.13% and it's up approximately 13.49% so far this year and in the past one year (as of 11/29/2023), respectively. TDV has traded between $54.26 and $67.88 during this last 52-week period.
TDV has a beta of 1.06 and standard deviation of 20.12% for the trailing three-year period. With about 38 holdings, it has more concentrated exposure than peers.
Alternatives
ProShares S&P Technology Dividend Aristocrats ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $24.07 billion in assets, Vanguard Dividend Appreciation ETF has $69.98 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs.
Bottom Line
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
ProShares S&P Technology Dividend Aristocrats ETF (TDV): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Accenture PLC (ACN) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports
iShares Core Dividend Growth ETF (DGRO): ETF Research Reports
To read this article on Zacks.com click here.
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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Click to get this free report ProShares S&P Technology Dividend Aristocrats ETF (TDV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta. The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting.
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Click to get this free report ProShares S&P Technology Dividend Aristocrats ETF (TDV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $24.07 billion in assets, Vanguard Dividend Appreciation ETF has $69.98 billion.
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Click to get this free report ProShares S&P Technology Dividend Aristocrats ETF (TDV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Launched on 11/05/2019, the ProShares S&P Technology Dividend Aristocrats ETF (TDV) is a smart beta exchange traded fund offering broad exposure to the Technology ETFs category of the market. IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index.
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Click to get this free report ProShares S&P Technology Dividend Aristocrats ETF (TDV): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Accenture PLC (ACN) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research Reports To read this article on Zacks.com click here. Launched on 11/05/2019, the ProShares S&P Technology Dividend Aristocrats ETF (TDV) is a smart beta exchange traded fund offering broad exposure to the Technology ETFs category of the market. The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting.
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Half of This Massive ETF Is Invested in the "Magnificent Seven." But Is It a Buy Now?
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https://www.nasdaq.com/articles/half-of-this-massive-etf-is-invested-in-the-magnificent-seven.-but-is-it-a-buy-now
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The Magnificent Seven have captivated markets this year, and for good reason. The term, coined by Bank of America analyst Michael Hartnett, is used to describe Apple (NASDAQ: AAPL), Microsoft (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA).
Combined, these companies have a market cap of $11.83 trillion. And all seven stocks are beating the market so far year to date, from Apple's 46.7% year-to-date (YTD) gain to Nvidia's blistering 242.3% YTD gain.
The Vanguard Growth exchange-traded fund (ETF) (NYSEMKT: VUG) includes 221 stocks, but the Magnificent Seven make up just over half of the fund's allocation. Here's why the ETF is a good way to invest in the Magnificent Seven, as well as other parts of the market.
Image source: Getty Images.
A magnificent year
The Vanguard Growth ETF has nearly double its exposure to the Magnificent Seven as the Vanguard S&P 500 ETF (NYSEMKT: VOO), which is a near mirror image of the S&P 500.
COMPANY
% OF VANGUARD GROWTH ETF
% OF VANGUARD S&P 500 ETF
Apple
13%
7.09%
Microsoft
12.88%
7.1%
Alphabet
6.94%
3.87%
Amazon
6.33%
3.42%
Nvidia
4.9%
2.85%
Meta Platforms
3.43%
1.89%
Tesla
2.78%
1.57%
Total
50.26%
27.79%
Data Source: Vanguard.
Interestingly enough, the Vanguard Growth ETF is more than doubling the percentage return of the S&P 500.
AAPL data by YCharts
A focus on growth instead of value and income
If you're interested in the Magnificent Seven, chances are you are interested in growth and dominant industry-leading companies, and are willing to pay a premium price for a stock relative to the market. The Vanguard Growth ETF checks all of those boxes and then some. For starters, it is one of the largest ETFs out there, with a massive $170.7 billion in net assets.
The 214 stocks in the index outside of the Magnificent Seven include a lot of companies that wouldn't be considered traditional growth stocks.
For example, Visa (NYSE: V) and Mastercard (NYSE: MA) are the ninth- and tenth-largest holdings in the fund. But they are the only companies of meaningful weight from the financial sector in the ETF. This is a stark contrast to the two largest financials in the S&P 500, which are Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) and JPMorgan Chase (NYSE: JPM).
All four companies are industry leaders and massive behemoths in terms of their size. But Visa and Mastercard are on the growth side of the financial spectrum, more so than Berkshire's property and casualty insurance business or a diversified bank like JPMorgan. They are also more expensive stocks, each supporting above a 30 price to earnings (P/E) ratio, compared to just 10.4 for Berkshire and 9.1 for JPMorgan.
75% of the fund is concentrated in the technology, communications, and consumer discretionary sectors -- all of which tend to trade at premium valuations to the market. So it's no wonder the Vanguard Growth ETF has a 32.2 P/E ratio, a premium valuation relative to the 21.2 P/E ratio of the Vanguard S&P 500 ETF.
The concentration on growth instead of value unsurprisingly results in a lower dividend yield, just 0.6% for the Vanguard Growth ETF compared to 1.6% for the Vanguard S&P 500 ETF.
The theme of the ETF is to invest in companies that are going to devote their cash flows to growing their businesses and improving operations, not paying dividends. The inherent risk with this approach, and the allocation of the ETF, makes it more volatile than the S&P 500 and more sensitive to the economic cycle. This is fine if you're an investor with a long-term time horizon, but it's not attractive if you're looking for companies that are good values and pay dividends.
Checks and balances
The Vanguard Growth ETF is a balanced and low-cost way for someone to buy the Magnificent Seven. Instead of investing $1,000 in the Magnificent Seven, $1,000 invested in the Vanguard Growth ETF is basically putting half of that in the Magnificent Seven and then the other half in a boatload of other top companies. And to top it all off, a $1,000 investment in the Vanguard Growth ETF would incur a mere 40 cent annual expense thanks to the fund's minuscule 0.04% expense ratio.
One of the biggest mistakes investors make is accidentally overly allocating into a single stock or type of stock. The Vanguard Growth ETF is a way of making sure that doesn't happen, while also being an incredibly bullish bet on the growth of the stock market. After all, this is an ETF that is up just shy of 40% YTD. So it has the potential to produce some serious returns. But it also ensures that an investment remains diversified.
The best way to invest in the Magnificent Seven
The Vanguard Growth ETF has had an incredible year. For the ETF to keep outperforming the major indexes, the Magnificent Seven are going to have to continue beating the market.
No one knows if that will happen in the short term. But over the long term, the Magnificent Seven open the door to a lot of exciting trends and paradigm-shifting technologies. The Vanguard Growth ETF provides a responsible and measured way to invest in the Magnificent Seven without compromising upside potential.
10 stocks we like better than Vanguard Index Funds-Vanguard Growth ETF
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Bank of America, Berkshire Hathaway, JPMorgan Chase, Mastercard, Meta Platforms, Nvidia, Tesla, Vanguard Index Funds-Vanguard Growth ETF, Vanguard S&P 500 ETF, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The term, coined by Bank of America analyst Michael Hartnett, is used to describe Apple (NASDAQ: AAPL), Microsoft (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA). AAPL data by YCharts A focus on growth instead of value and income If you're interested in the Magnificent Seven, chances are you are interested in growth and dominant industry-leading companies, and are willing to pay a premium price for a stock relative to the market. But Visa and Mastercard are on the growth side of the financial spectrum, more so than Berkshire's property and casualty insurance business or a diversified bank like JPMorgan.
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The term, coined by Bank of America analyst Michael Hartnett, is used to describe Apple (NASDAQ: AAPL), Microsoft (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA). AAPL data by YCharts A focus on growth instead of value and income If you're interested in the Magnificent Seven, chances are you are interested in growth and dominant industry-leading companies, and are willing to pay a premium price for a stock relative to the market. Apple 13% 7.09% Microsoft 12.88% 7.1% Alphabet 6.94% 3.87% Amazon 6.33% 3.42% Nvidia 4.9% 2.85% Meta Platforms 3.43% 1.89% Tesla 2.78% 1.57% Total 50.26% 27.79% Data Source: Vanguard.
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The term, coined by Bank of America analyst Michael Hartnett, is used to describe Apple (NASDAQ: AAPL), Microsoft (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA). AAPL data by YCharts A focus on growth instead of value and income If you're interested in the Magnificent Seven, chances are you are interested in growth and dominant industry-leading companies, and are willing to pay a premium price for a stock relative to the market. A magnificent year The Vanguard Growth ETF has nearly double its exposure to the Magnificent Seven as the Vanguard S&P 500 ETF (NYSEMKT: VOO), which is a near mirror image of the S&P 500.
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The term, coined by Bank of America analyst Michael Hartnett, is used to describe Apple (NASDAQ: AAPL), Microsoft (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA). AAPL data by YCharts A focus on growth instead of value and income If you're interested in the Magnificent Seven, chances are you are interested in growth and dominant industry-leading companies, and are willing to pay a premium price for a stock relative to the market. A magnificent year The Vanguard Growth ETF has nearly double its exposure to the Magnificent Seven as the Vanguard S&P 500 ETF (NYSEMKT: VOO), which is a near mirror image of the S&P 500.
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Apple’s 2024 Outlook: Why Holding This ‘Magnificent Seven’ Stock Is a Smart Move
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AAPL
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https://www.nasdaq.com/articles/apples-2024-outlook%3A-why-holding-this-magnificent-seven-stock-is-a-smart-move
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If you’re going to maintain a diversified stock portfolio, it’s practically mandatory that you have at least a handful of Apple (NASDAQ:AAPL) stock. Otherwise, you’ll miss out on the gains that are coming in 2024. Sure, Apple has challenges to deal with. However, that’s true of every company and if any technology juggernaut can overcome its obstacles and prevail, it’s Apple.
Among the “Magnificent Seven” tech titans, Apple is one of the oldest and most established. Apple stock has an added safety factor because it’s not too volatile, and because Apple is a well-known business with deep customer loyalty. So, let’s dive into Apple’s obstacles and opportunities, and see if there’s a worthwhile bull case for prospective investors.
Value Investors Shouldn’t Worry Too Much About AAPL Stock
The bearish arguments against owning Apple stock just don’t hold up under scrutiny. For example, some investors might worry about Apple’s valuation. Currently, Apple has a GAAP trailing 12-month price-to-earnings ratio of 31.1x.
That’s above Apple’s five-year average trailing P/E ratio of 26.28x, but it’s not outlandishly high. We’re not looking at dot-com bubble valuations here. We can revisit this conversation if Apple’s P/E ratio reaches the 40s and 50s.
As long as Apple remains profitable and follows a smart business strategy, the company’s valuation shouldn’t keep investors up at night. For instance, Apple plans to enable easier/smoother text messaging between iPhone and rival Android smartphones.
That’s a smart move as it will keep the customers happy and might also help to placate regulators in the European Union and elsewhere.
Don’t Let China Challenges Deter You
Another pillar of the bearish argument against buying Apple stock is that the company has obstacles to overcome in China. Specifically, reports that China banned government employees from using iPhones at work. It’s there also are reports that China’s government denied this iPhone ban.
Granted, Apple’s recent smartphone sales in China haven’t grown at the same pace as the smartphone sales of China-based competitors like Huawei and Xiaomi (OTCMKTS:XIACF). That’s not the full story, though, as Apple is still selling plenty of smartphones globally.
According to Counterpoint Research (per Apple Insider), “global monthly smartphone sell-through volumes grew 5%” year over year in October. Furthermore, Counterpoint Research cited the “launch of iPhone 15 series” as a contributing factor to the global smartphone market’s growth.
There’s no need to worry about Apple’s leadership status in this field. Counterpoint Research reportedly stated that Apple maintains a whopping 43% share of the global smartphone market. In other words, obstacles in China aren’t stopping Apple from selling plenty of mobile devices in other geographic regions.
AAPL Stock: A Safe and ‘Magnificent’ Holding for Every Investor
Apple’s critics can always come up with excuses not to buy AAPL stock, but the bearish argument isn’t strong enough to withstand scrutiny. After all, Apple’s investors keep on winning in the long run and the short sellers only end up on the wrong side of the trade.
If you don’t want to own every “Magnificent Seven” stock, that’s understandable as some of them are better than others. Safety-minded investors can be selective and just hold a few shares of Apple stock, and maybe a few other carefully selected mega-cap tech stocks. Just ignore the worry warts and stay in the trade, as Apple always provides outstanding value to its loyal shareholders.
On the date of publication, David Moadel 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.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
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The post Apple’s 2024 Outlook: Why Holding This ‘Magnificent Seven’ Stock Is a Smart Move 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 If you’re going to maintain a diversified stock portfolio, it’s practically mandatory that you have at least a handful of Apple (NASDAQ:AAPL) stock. Value Investors Shouldn’t Worry Too Much About AAPL Stock The bearish arguments against owning Apple stock just don’t hold up under scrutiny. AAPL Stock: A Safe and ‘Magnificent’ Holding for Every Investor Apple’s critics can always come up with excuses not to buy AAPL stock, but the bearish argument isn’t strong enough to withstand scrutiny.
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Value Investors Shouldn’t Worry Too Much About AAPL Stock The bearish arguments against owning Apple stock just don’t hold up under scrutiny. InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you’re going to maintain a diversified stock portfolio, it’s practically mandatory that you have at least a handful of Apple (NASDAQ:AAPL) stock. AAPL Stock: A Safe and ‘Magnificent’ Holding for Every Investor Apple’s critics can always come up with excuses not to buy AAPL stock, but the bearish argument isn’t strong enough to withstand scrutiny.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you’re going to maintain a diversified stock portfolio, it’s practically mandatory that you have at least a handful of Apple (NASDAQ:AAPL) stock. Value Investors Shouldn’t Worry Too Much About AAPL Stock The bearish arguments against owning Apple stock just don’t hold up under scrutiny. AAPL Stock: A Safe and ‘Magnificent’ Holding for Every Investor Apple’s critics can always come up with excuses not to buy AAPL stock, but the bearish argument isn’t strong enough to withstand scrutiny.
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Value Investors Shouldn’t Worry Too Much About AAPL Stock The bearish arguments against owning Apple stock just don’t hold up under scrutiny. InvestorPlace - Stock Market News, Stock Advice & Trading Tips If you’re going to maintain a diversified stock portfolio, it’s practically mandatory that you have at least a handful of Apple (NASDAQ:AAPL) stock. AAPL Stock: A Safe and ‘Magnificent’ Holding for Every Investor Apple’s critics can always come up with excuses not to buy AAPL stock, but the bearish argument isn’t strong enough to withstand scrutiny.
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12351.0
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2023-11-29 00:00:00 UTC
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Tech Stocks: What To Expect In the Last Quarter of 2023
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AAPL
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https://www.nasdaq.com/articles/tech-stocks-what-to-expect-in-the-last-quarter-of-2023
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nan
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nan
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T
ech stocks have had a strong start to the fourth quarter, buoyed by optimism that the Federal Reserve is close to the end of its rate hike cycle and better-than-expected quarterly from the "Magnificent Seven" stocks, consisting of Alphabet (GOOG , GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA).
As of Tuesday's close, the S&P 500 index is up 19% year to date and is just 1.2% away from a new 52-week high. The index has risen roughly 10% in about two weeks, thanks to the latest CPI report that showed inflation is being contained. While the inflation is not yet at the Fed’s 2% target, the latest reports provide strong arguments for no further rate hikes. As I said recently, I believe the Fed is done raising interest rates.
Further more, I believe a rate cut is in the cards at some point in the first quarter of next year. From there, it’s not hard to imagine for three more rate cuts to follow by the end of the 2024, affirming the arrival of the long-awaited Fed pivot. With that in mind, it's more than likely that tech stocks, particularly the Magnificent Seven, will continue to post strong returns for the remainder of the year and into the first quarter.
Immediately, I can hear the bearish argument about tech stocks and their valuations. But what is often overlooked in the bearish thesis, which usually focuses solely on stock prices, is that fact that their profits are also growing. What’s more, the "Magnificent Seven" cohort are enjoying growth tailwinds that are still in the early stages. For Microsoft and Nvidia, they are leading the way in artificial intelligence (AI) technology.
The profit potential in AI is staggering, with the generative AI market currently experiencing a 42% growth rate and the potential to reach $1.3 trillion by 2032, according to Bloomberg Intelligence estimates. Even with these estimates, Microsoft was identified as the most under-owned large-cap tech stock this quarter, according to Morgan Stanley’s U.S. Tech report, published on Monday.
Among largest-cap tech companies they cover, Morgan Stanley tracks institutional ownership data to assess how widely-owned these companies are, “based on each company's average weight within the top 100 actively managed portfolios relative to the same company’s weighting in the S&P 500.” Microsoft was identified as the most under-owned, despite the stock reaching new all-time highs.
Aside from Microsoft, Morgan Stanley listed Apple, Nvidia, Amazon and Alphabet — four other Magnificent Seven stocks as being under-owned. As for Apple, which continues to expand its installed base each quarter, the company will benefit from solid iPhone demand across the globe. Having just launched the iPhone 15 and introduced its mixed reality headset earlier this year, Apple is poised to set new quarterly install base records in several emerging markets.
Google and Meta Platform will benefit not only from their own AI initiatives, but also a rebound in digital advertising. While some caution against sticking with these stocks due to market trends and naysayers, their track record speaks for itself. Their exposure to high-growth technologies, substantial cash reserves, robust cash flows, and strong leadership positions them to outperform the S&P 500 and powering tech in the last quarter of the year.
As such, I expect tech to power the S&P 500 index to a new all-time high by the end of calendar 2023, and for that momentum to sustain as the Fed ends it rate-hike campaign and pivot toward enacting rate cuts sometime in the firs quarter.
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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ech stocks have had a strong start to the fourth quarter, buoyed by optimism that the Federal Reserve is close to the end of its rate hike cycle and better-than-expected quarterly from the "Magnificent Seven" stocks, consisting of Alphabet (GOOG , GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA). As for Apple, which continues to expand its installed base each quarter, the company will benefit from solid iPhone demand across the globe. Having just launched the iPhone 15 and introduced its mixed reality headset earlier this year, Apple is poised to set new quarterly install base records in several emerging markets.
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ech stocks have had a strong start to the fourth quarter, buoyed by optimism that the Federal Reserve is close to the end of its rate hike cycle and better-than-expected quarterly from the "Magnificent Seven" stocks, consisting of Alphabet (GOOG , GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA). Even with these estimates, Microsoft was identified as the most under-owned large-cap tech stock this quarter, according to Morgan Stanley’s U.S. Tech report, published on Monday. Aside from Microsoft, Morgan Stanley listed Apple, Nvidia, Amazon and Alphabet — four other Magnificent Seven stocks as being under-owned.
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ech stocks have had a strong start to the fourth quarter, buoyed by optimism that the Federal Reserve is close to the end of its rate hike cycle and better-than-expected quarterly from the "Magnificent Seven" stocks, consisting of Alphabet (GOOG , GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA). Among largest-cap tech companies they cover, Morgan Stanley tracks institutional ownership data to assess how widely-owned these companies are, “based on each company's average weight within the top 100 actively managed portfolios relative to the same company’s weighting in the S&P 500.” Microsoft was identified as the most under-owned, despite the stock reaching new all-time highs. As such, I expect tech to power the S&P 500 index to a new all-time high by the end of calendar 2023, and for that momentum to sustain as the Fed ends it rate-hike campaign and pivot toward enacting rate cuts sometime in the firs quarter.
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ech stocks have had a strong start to the fourth quarter, buoyed by optimism that the Federal Reserve is close to the end of its rate hike cycle and better-than-expected quarterly from the "Magnificent Seven" stocks, consisting of Alphabet (GOOG , GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA). While the inflation is not yet at the Fed’s 2% target, the latest reports provide strong arguments for no further rate hikes. With that in mind, it's more than likely that tech stocks, particularly the Magnificent Seven, will continue to post strong returns for the remainder of the year and into the first quarter.
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2023-11-29 00:00:00 UTC
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Saudi's Kingdom Holding buys $450 mln stake in Citigroup from Alwaleed
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AAPL
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https://www.nasdaq.com/articles/saudis-kingdom-holding-buys-%24450-mln-stake-in-citigroup-from-alwaleed-0
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nan
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By Hadeel Al Sayegh
DUBAI, Nov 29 (Reuters) - Saudi Arabian Prince Alwaleed Bin Talal's investment company Kingdom Holding 4280.SE said on Wednesday it raised its ownership in Citigroup C.N to 2.2% after acquiring from the prince a stake in the bank worth about $450 million.
The company previously owned 1.6% of the Wall Street lender, it told the Saudi bourse in a filing, adding that the deal supported Kingdom Holding's strategic plans, but did not elaborate.
Saudi Arabia’s self-styled Warren Buffett, Prince Alwaleed has made hundreds of millions of dollars by investing with almost complete autonomy in companies from Uber to social network Twitter, now known as X.
Alwaleed rose to international prominence after making a big successful bet on Citigroup in the 1990s when the bank struggled with Latin American loan losses and the U.S. real estate market collapse. He was also an early investor in Apple.
Last year, the billionaire prince sold a stake of 16.87% to Saudi Arabia's sovereign wealth fund, the Public Investment Fund. He owns a stake of 78.1% in Kingdom Holding, with the remaining 5% floated on the Saudi stock exchange.
The deal came more than four years after Prince Alwaleed was swept up in an anti-corruption drive ordered by the Crown Prince and held for nearly three months at Riyadh's Ritz-Carlton along with scores of royals, senior officials and businessmen.
Most detainees were released after reaching financial settlements and Prince Alwaleed said in March 2018 that he had struck a confidential and secret deal with the government.
(Reporting by Hadeel Al Sayegh; Editing by Clarence Fernandez and Louise Heavens)
((Hadeel.AlSayegh@thomsonreuters.com; +971566883310;))
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 company previously owned 1.6% of the Wall Street lender, it told the Saudi bourse in a filing, adding that the deal supported Kingdom Holding's strategic plans, but did not elaborate. Saudi Arabia’s self-styled Warren Buffett, Prince Alwaleed has made hundreds of millions of dollars by investing with almost complete autonomy in companies from Uber to social network Twitter, now known as X. Alwaleed rose to international prominence after making a big successful bet on Citigroup in the 1990s when the bank struggled with Latin American loan losses and the U.S. real estate market collapse. Most detainees were released after reaching financial settlements and Prince Alwaleed said in March 2018 that he had struck a confidential and secret deal with the government.
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By Hadeel Al Sayegh DUBAI, Nov 29 (Reuters) - Saudi Arabian Prince Alwaleed Bin Talal's investment company Kingdom Holding 4280.SE said on Wednesday it raised its ownership in Citigroup C.N to 2.2% after acquiring from the prince a stake in the bank worth about $450 million. Last year, the billionaire prince sold a stake of 16.87% to Saudi Arabia's sovereign wealth fund, the Public Investment Fund. (Reporting by Hadeel Al Sayegh; Editing by Clarence Fernandez and Louise Heavens) ((Hadeel.AlSayegh@thomsonreuters.com; +971566883310;)) 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 Hadeel Al Sayegh DUBAI, Nov 29 (Reuters) - Saudi Arabian Prince Alwaleed Bin Talal's investment company Kingdom Holding 4280.SE said on Wednesday it raised its ownership in Citigroup C.N to 2.2% after acquiring from the prince a stake in the bank worth about $450 million. Saudi Arabia’s self-styled Warren Buffett, Prince Alwaleed has made hundreds of millions of dollars by investing with almost complete autonomy in companies from Uber to social network Twitter, now known as X. Alwaleed rose to international prominence after making a big successful bet on Citigroup in the 1990s when the bank struggled with Latin American loan losses and the U.S. real estate market collapse. The deal came more than four years after Prince Alwaleed was swept up in an anti-corruption drive ordered by the Crown Prince and held for nearly three months at Riyadh's Ritz-Carlton along with scores of royals, senior officials and businessmen.
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By Hadeel Al Sayegh DUBAI, Nov 29 (Reuters) - Saudi Arabian Prince Alwaleed Bin Talal's investment company Kingdom Holding 4280.SE said on Wednesday it raised its ownership in Citigroup C.N to 2.2% after acquiring from the prince a stake in the bank worth about $450 million. He was also an early investor in Apple. He owns a stake of 78.1% in Kingdom Holding, with the remaining 5% floated on the Saudi stock exchange.
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12353.0
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2023-11-29 00:00:00 UTC
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ANALYSIS-After Munger's death, Berkshire succession comes into focus
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AAPL
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https://www.nasdaq.com/articles/analysis-after-mungers-death-berkshire-succession-comes-into-focus
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nan
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nan
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By Jonathan Stempel
Nov 29 (Reuters) - The death of Berkshire Hathaway's BRKa.NCharlie Munger heralds the end of an era, leaving Warren Buffett as the conglomerate's lone investing legend and shining the spotlight on managers who have largely operated in their shadow.
Few companies have been so closely associated with their leaders as Berkshire has with Buffett and Munger, who knew each other for more than six decades, the last 45 years as the Omaha, Nebraska-based conglomerate's chairman and vice chairman.
Munger's death on Tuesday, five weeks shy of his 100th birthday, leaves Berkshire Vice Chairmen Greg Abel and Ajit Jain, who respectively oversee its non-insurance and insurance businesses, as the 93-year-old Buffett's top advisers and sounding boards.
They became vice chairmen in 2018, started taking a more prominent public role only at the most recent of Berkshire's annual meetings, and will have bigger boots to fill than at almost any other company.
Managers have said Abel fully embraces Berkshire's culture, which includes an extreme decentralization that gives business units broad autonomy.
That means big units such as the BNSF railroad and Geico car insurer, each with tens of thousands of employees, and small units such as Borsheims jewelry, with about 142 employees, can run without interference from Berkshire headquarters, which employs only about 26 people.
But Abel and Jain have different styles from Buffett and Munger.
At the 2021 annual meeting, Jain was asked how he and Abel interact with each other.
"There is no question that the relationship Warren has with Charlie is unique and it's not going to be duplicated," Jain said. "We don't interact with each other as often as Warren and Charlie do. But every quarter we will talk to each other about our respective businesses."
Abel said he and Jain regularly consulted with one another, and in particular when something unusual was happening at one of Berkshire's businesses.
Investors say they have faith.
"I can’t imagine investors haven't thought about what happens when Buffett is gone as well," said Bill Stone, chief investment officer at Glenview Trust. "You don’t need them to be as good as Buffett or Munger to make Berkshire a good company and arguably a great company."
Berkshire did not immediately respond to a request for comment outside business hours.
CEO-DESIGNATE
Berkshire has had a succession plan since at least 2006 when Buffett, then 75, told shareholders the company he has run since 1965 would be prepared for his departure.
Munger inadvertently signaled during Berkshire's 2021 annual meeting that Abel, a 61-year-old Edmonton, Alberta, native who spent a quarter century at what is now Berkshire Hathaway Energy, was the CEO designate.
Jain, 72, would retain oversight of insurance operations.
Buffett has praised both executives, calling Abel "a first-class human being" in a 2013 video message and referring to Jain as a "superstar."
A lifelong hockey fan, Abel graduated in 1984 from the University of Alberta, worked at PricewaterhouseCoopers and energy firm CalEnergy and joined the company, then known as MidAmerican Energy, in 1992, which Berkshire took over in 2000.
Abel became MidAmerican's chief in 2008 and benefited from its ability, unusual in the utility industry, to retain earnings rather than pay dividends. That freed him to make acquisitions, and expand into renewable energy.
Investors will have to wait until Abel takes over to see his willingness to shed businesses that are underperforming or have mediocre outlooks - his predecessors liked to buy and hold businesses forever - or whether Berkshire might pay its first dividend since 1967.
Jain, who was born in the Indian state of Odisha, has specialized in pricing for risk, especially large risks such as natural catastrophes. He joined Berkshire in 1986.
Besides the two top executives, Berkshire's plan also calls for Buffett's eldest son Howard Buffett to become non-executive chairman, charged mainly with preserving Berkshire's culture.
Todd Combs and Ted Weschler, who help Buffett run Berkshire's $300 billion-plus common stock portfolio - about half of which is in one stock, Apple AAPL.O - appear in line to take over all of it.
"Berkshire has talented people there that will help with the stock picking," said Bill Smead, chief investment officer at Smead Capital Management in Phoenix. "But it will never be the same."
LOSS OF LEGACY
For shareholders, a signature in Berkshire's universe is its annual meeting, a pilgrimage known as "Woodstock for Capitalists," where Buffett and Munger would answer more than five hours of shareholder questions.
It is a weekend of shopping, investor conferences and events that draws tens of thousands of people to Omaha in early May, even though fans can watch it streamed on their home computers or smartphones.
Many shareholders, especially local, have said they will continue going, but others have been less sure.
"What really glued us to these men was their advice on living a full life by instructing people how to think clearly, to be honest with oneself, to learn from mistakes and to avoid calamities," said Whitney Tilson, an investor who previously ran T2 Partners and Kase Capital and has attended many meetings.
In May 2020, at the height of the pandemic, Buffett held the meeting virtually from Omaha. Munger didn't attend.
"It particularly doesn't feel like an annual meeting because my partner of 60 years, Charlie Munger, is not sitting up here," Buffett said. "I think most of the people who come to our meeting really come to listen to Charlie."
(Reporting by Jonathan Stempel in New York; editing by Megan Davies, Paritosh Bansal and Stephen Coates)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.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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Todd Combs and Ted Weschler, who help Buffett run Berkshire's $300 billion-plus common stock portfolio - about half of which is in one stock, Apple AAPL.O - appear in line to take over all of it. By Jonathan Stempel Nov 29 (Reuters) - The death of Berkshire Hathaway's BRKa.NCharlie Munger heralds the end of an era, leaving Warren Buffett as the conglomerate's lone investing legend and shining the spotlight on managers who have largely operated in their shadow. Munger's death on Tuesday, five weeks shy of his 100th birthday, leaves Berkshire Vice Chairmen Greg Abel and Ajit Jain, who respectively oversee its non-insurance and insurance businesses, as the 93-year-old Buffett's top advisers and sounding boards.
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Todd Combs and Ted Weschler, who help Buffett run Berkshire's $300 billion-plus common stock portfolio - about half of which is in one stock, Apple AAPL.O - appear in line to take over all of it. By Jonathan Stempel Nov 29 (Reuters) - The death of Berkshire Hathaway's BRKa.NCharlie Munger heralds the end of an era, leaving Warren Buffett as the conglomerate's lone investing legend and shining the spotlight on managers who have largely operated in their shadow. "You don’t need them to be as good as Buffett or Munger to make Berkshire a good company and arguably a great company."
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Todd Combs and Ted Weschler, who help Buffett run Berkshire's $300 billion-plus common stock portfolio - about half of which is in one stock, Apple AAPL.O - appear in line to take over all of it. Munger's death on Tuesday, five weeks shy of his 100th birthday, leaves Berkshire Vice Chairmen Greg Abel and Ajit Jain, who respectively oversee its non-insurance and insurance businesses, as the 93-year-old Buffett's top advisers and sounding boards. Munger inadvertently signaled during Berkshire's 2021 annual meeting that Abel, a 61-year-old Edmonton, Alberta, native who spent a quarter century at what is now Berkshire Hathaway Energy, was the CEO designate.
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Todd Combs and Ted Weschler, who help Buffett run Berkshire's $300 billion-plus common stock portfolio - about half of which is in one stock, Apple AAPL.O - appear in line to take over all of it. But Abel and Jain have different styles from Buffett and Munger. For shareholders, a signature in Berkshire's universe is its annual meeting, a pilgrimage known as "Woodstock for Capitalists," where Buffett and Munger would answer more than five hours of shareholder questions.
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2023-11-29 00:00:00 UTC
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7 Top-Rated Momentum Stocks That Analysts Are Loving Now
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https://www.nasdaq.com/articles/7-top-rated-momentum-stocks-that-analysts-are-loving-now
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In the dynamic investing world, momentum stocks have emerged as a beacon. They continue to attract those seeking to capitalize on market trends. Momentum investing is fundamentally the art of riding the wave of upward-moving stocks based on the premise that these stocks will maintain stellar performance as long as the trend holds.
This strategy offers the allure of high potential returns and stands out for its simplicity. It is accessible and doesn’t demand intricate analysis of a company’s fundamentals, making it an attractive option for a wide spectrum of investors.
Moreover, momentum stocks serve as a strategic tool for portfolio diversification. They offer exposure to various sectors and industries, potentially mitigating overall risk. The approach taps into the psychological aspect of investing, leveraging the human tendency to ‘follow the herd.’
With that said, these selections stand out for their robust performance and upward trajectories. They also inspire confidence among those who scrutinize the market’s every pulse. Consequently, each stock in this list represents a unique opportunity.
Apple (AAPL)
Source: Eric Broder Van Dyke / Shutterstock.com
In the dynamic landscape of momentum stocks, Apple (NASDAQ:AAPL) stands out with its year-to-date return of 52%. Data gathered by MarketBeat and others collectively echo a ‘Moderate Buy’ stance. They set an optimistic tone with a consensus target near $198. This reflects a potential 3% uptick, spanning estimates from $120 to a striking $240. The allure of Apple in 2023 is multifaceted, pivoting around key growth indicators and innovative strides.
India’s burgeoning wealth is a pivotal catalyst for Apple’s growth prospects. The doubling of the upper-mid and high-income middle class in India heralds a surge in premium product spending. This is a sweet spot for Apple. Concurrently, iPhone sales defy bearish trends, buoyed by a robust iOS ecosystem and consistent smartphone replacements. This is coupled with a rebound in services sales, thanks to recent price hikes.
Apple’s product pipeline is a cornucopia of innovation. It is headlined by the anticipated launch of an AR/VR headset in 2023. This move is poised to galvanize the stock, propelling it into new market territories. Moreover, regulatory concerns, often seen as headwinds, are deemed overstated. This adds to the stock’s resilience. Apple’s robust cash flow underpins its shareholder-friendly policies. Expectations of dividend hikes and continued buybacks are prevalent.
Diverse advancements enrich Apple’s 2023 storyline. From the launch of new Macs and HomePods to the buzz around the iPhone 16 Pro, innovation is at the core. Privacy and security take center stage with significant updates. The groundbreaking Apple Vision Pro complements these at WWDC 2023.
Financially, Apple navigated a challenging macroeconomic landscape. It posted quarterly revenue of $94.8 billion, a slight dip yet impressive given the context. CEO Tim Cook highlights the steadfast focus on long-term investments and core values. This fortifies Apple’s market position, making it a compelling choice for informed investors.
Microsoft (MSFT)
Source: Asif Islam / Shutterstock.com
In a remarkable year-to-date performance, Microsoft (NASDAQ:MSFT) has surged, achieving a 58% return. This momentum places it squarely among the top momentum stocks, resonating with investors’ enthusiasm. Microsoft’s recent initiatives have been pivotal in this ascent. At the forefront is its AI advancements and Copilot integration, a game-changer in productivity tools. It’s not just a technological leap; it’s reshaping how businesses operate.
Diving into cloud infrastructure, Microsoft is not just evolving; it’s revolutionizing with AI-optimized silicon. The introduction of Azure Maia and Azure Cobalt chips underscores its commitment to enhancing AI and general-purpose workloads. Additionally, its focus on data integration, evident in Microsoft Fabric, seamlessly unifies data estates, further cementing its leadership in the tech sector. These strides in AI, cloud, and data integration are not just innovative; they’re setting industry benchmarks.
Financially, Microsoft’s latest earnings report paints a dazzling picture of fiscal prowess and shareholder delight. In a stellar fourth quarter, the tech giant announced a whopping revenue of $56.2 billion, marking a notable 8% leap. Adding to this financial fiesta, Microsoft dazzled investors by returning a hefty $9.7 billion, showcasing its robust financial vitality and unwavering dedication to rewarding its shareholders. In essence, Microsoft isn’t just growing; it’s thriving, proving to be a compelling choice for investors looking for dynamic growth and stability in the tech domain.
Amazon (AMZN)
Source: Tada Images / Shutterstock.com
Amazon’s (NASDAQ:AMZN) remains a standout among momentum stocks. With a strong “Buy” consensus from analysts and an impressive average price target of $169.88, Amazon’s potential is unmistakable, according to data tracked by Benzinga. These ratings stem from a profound belief in Amazon’s growth trajectory, bolstered by 35 buy and 5 overweight ratings.
Amazon’s latest initiatives are pivotal in fortifying its market position. The “AI Ready” program, aiming to train 2 million in AI by 2025, exemplifies its commitment to cutting-edge technology. Similarly, the $150 million Catalytic Capital initiative underscores its dedication to diverse entrepreneurship. These endeavors not only enrich Amazon’s portfolio but also set a standard in corporate innovation and inclusivity.
Amazon’s financial results for the third quarter were remarkable. The company saw a significant increase in its net sales, with a 13% rise, culminating in a total of $143.1 billion. This included a significant 11% increase in sales within the North American segment. AWS, a steadfast contributor, experienced a 12% rise in sales, highlighting Amazon’s robust presence in the cloud computing sector. These figures reflect a resilient business model capable of navigating market fluctuations while driving significant revenue growth.
Li Auto (LI)
Source: shutterstock.com/JLStock
Li Auto (NASDAQ:LI) has emerged as a key player in the momentum stock sector, boasting a year-to-date return of 89%. Analysts are unanimously optimistic, endorsing it as a “Buy.” They foresee a 77% potential increase in its stock value. The company’s launch of Li MEGA at Auto Guangzhou in 2023 highlights its innovation in electric vehicles (EVs).
Setting ambitious goals, Li Auto plans to deliver 800,000 units in 2024. This includes 80,000 units of the Li MEGA. Such targets place it ahead of competitors in the EV market. Its financial results from the third quarter further showcase its growth. Revenue reached approximately US$4.75 billion. Vehicle deliveries increased by 296%, indicating a strong market presence.
Li Auto’s financial health remains strong. Its third-quarter gross profit stood at about US$1.05 billion. The gross margin was 22%. In October, vehicle deliveries increased by 302%. This underscores the company’s growing market dominance.
Nvidia (NVDA)
Source: Evolf / Shutterstock.com
Nvidia (NASDAQ:NVDA), a titan in the tech industry, has demonstrated exceptional performance with a 237% year-to-date return. This impressive feat cements its status as one of the top momentum stocks in the market. NVIDIA’s innovative strides, including a landmark collaboration with Genentech for drug discovery, further bolster investor confidence. This partnership, leveraging generative AI, aims to revolutionize therapeutic development, showcasing NVIDIA’s commitment to cutting-edge technology.
Financially, NVIDIA’s recent quarterly report is a testament to its robust growth. The company posted a remarkable revenue of $18.12 billion, up 206% from the prior year. This surge, particularly in its Data Center business, clearly indicates NVIDIA’s expanding market footprint. However, due to new U.S. export controls, the company faces hurdles in China, a key market. Despite these challenges, NVIDIA’s proactive approach, including developing compliant chips, demonstrates its resilience and strategic agility.
Innovation remains NVIDIA’s cornerstone, as evidenced by the launch of a pioneering cloud service for medical imaging AI. This venture into healthcare technology underscores the company’s diverse portfolio and commitment to leveraging AI for societal benefit. Additionally, the expansion of GeForce NOW, adding 18 new games, illustrates NVIDIA’s strong presence in the gaming industry, further diversifying its revenue streams. NVIDIA’s response to external challenges, including the U.S. export rules, is noteworthy. The introduction of the H200 AI chip, surpassing the performance of its predecessor, reflects NVIDIA’s focus on continuous innovation.
Costco (COST)
Source: ESB Professional / Shutterstock.com
Costco (NASDAQ:COST) momentum in the stock market is noteworthy, with a significant year-to-date return of 31%. It has been a stand-out performer in the retail sector, consistently outpacing industry averages. Notably, Costco’s unique business model, emphasizing membership and pricing power, has played a pivotal role in its success. This model has enabled it to achieve substantial sales increases, even in challenging market conditions.
Analysts are optimistic about Costco, with a consensus rating leaning towards “Buy.” The projected price targets suggest a modest upside, reflecting a cautious but positive outlook. These ratings and the company’s robust financial performance indicate confidence in its growth trajectory. Costco’s recent announcement of a potential membership fee increase is also noteworthy, signaling its strategic plans to bolster revenue streams.
Costco’s expansion strategies are aggressive yet calculated, with plans to open new domestic and international locations. This expansion is expected to solidify its market presence further. Additionally, Costco’s digital and mobile enhancements indicate its commitment to evolving with consumer needs. These initiatives, including app improvements and online service enhancements, are geared toward enhancing customer experience and loyalty.
In terms of financials, Costco’s performance has been dazzling, with its latest fiscal year closing at a striking $237.71 billion in net sales, marking a robust 6.7% climb from its previous year’s figures. This surge, coupled with a significant uptick in net income, highlights Costco’s formidable stance in the marketplace. A testament to its savvy strategies and operational prowess, Costco stands out as a shimmering gem in today’s investment arena.
Alaska Air Group (ALK)
Source: Jag_cz / Shutterstock.com
Alaska Air (NYSE:ALK), despite experiencing a 13% year-to-date decline, remains a compelling choice for momentum investors. Analysts’ consensus rating of “Buy” underlines confidence in the company’s trajectory, with a target price of $58.91, according to data gathered by MarketBeat. This optimism is grounded in Alaska Air Group’s robust initiatives and performance metrics in 2023.
The company has made notable strides in environmental, social, and governance efforts, as detailed in its 2022 Care Report. It leads in industry completion rate and an impressive adjusted pretax margin of 11.4%, setting a high operational benchmark. Moreover, the transition to an all-Boeing fleet marks a significant milestone, enhancing fleet efficiency.
A key strategy for Alaska Air Group has been workforce expansion, planning to grow its team by more than 3,500 in 2023. This follows a significant increase in employees, showcasing its commitment to scaling operations and enhancing service quality. Additionally, fleet and network expansion remain central to its long-term growth strategy, with plans to operate a unified Embraer E175 jet fleet, projecting operational simplicity and flexibility.
The company’s financial acumen is evident in its third-quarter performance, boasting a net income of $139 million, a substantial year-over-year increase. Its operating revenue stood at $2.8 billion, underpinned by a strategic reduction in costs and a prudent share repurchase program. Alaska Air Group’s effective financial management and strategic investments, like the $2.30 billion infrastructure improvement at key US airports, underscore its solid market positioning and promising outlook for investors.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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The post 7 Top-Rated Momentum Stocks That Analysts Are Loving Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com In the dynamic landscape of momentum stocks, Apple (NASDAQ:AAPL) stands out with its year-to-date return of 52%. The approach taps into the psychological aspect of investing, leveraging the human tendency to ‘follow the herd.’ With that said, these selections stand out for their robust performance and upward trajectories. Analysts are optimistic about Costco, with a consensus rating leaning towards “Buy.” The projected price targets suggest a modest upside, reflecting a cautious but positive outlook.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com In the dynamic landscape of momentum stocks, Apple (NASDAQ:AAPL) stands out with its year-to-date return of 52%. Li Auto (LI) Source: shutterstock.com/JLStock Li Auto (NASDAQ:LI) has emerged as a key player in the momentum stock sector, boasting a year-to-date return of 89%. Costco (COST) Source: ESB Professional / Shutterstock.com Costco (NASDAQ:COST) momentum in the stock market is noteworthy, with a significant year-to-date return of 31%.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com In the dynamic landscape of momentum stocks, Apple (NASDAQ:AAPL) stands out with its year-to-date return of 52%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips In the dynamic investing world, momentum stocks have emerged as a beacon. Li Auto (LI) Source: shutterstock.com/JLStock Li Auto (NASDAQ:LI) has emerged as a key player in the momentum stock sector, boasting a year-to-date return of 89%.
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Apple (AAPL) Source: Eric Broder Van Dyke / Shutterstock.com In the dynamic landscape of momentum stocks, Apple (NASDAQ:AAPL) stands out with its year-to-date return of 52%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips In the dynamic investing world, momentum stocks have emerged as a beacon. These strides in AI, cloud, and data integration are not just innovative; they’re setting industry benchmarks.
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2023-11-28 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-7
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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 94% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
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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12356.0
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2023-11-28 00:00:00 UTC
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Apple to end credit-card partnership with Goldman Sachs - WSJ
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AAPL
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https://www.nasdaq.com/articles/apple-to-end-credit-card-partnership-with-goldman-sachs-wsj-0
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nan
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Adds details on the contract in paragraph 2
Nov 28 (Reuters) - Apple AAPL.O is pulling the plug on its credit-card partnership with Goldman Sachs Group GS.N, the Wall Street Journal reported on Tuesday.
The tech giant recently sent a proposal to the Wall Street bank to exit the contract in the next roughly 12 to 15 months, the report said, citing people briefed on the matter.
Apple and Goldman had started to roll out a virtual credit card in 2019.
The iPhone-maker did not immediately respond to a Reuters request for comment, while Goldman declined to omment.
(Reporting by Pritam Biswas in Bengaluru; Editing by Arun Koyyur)
((Pritam.Biswas@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 on the contract in paragraph 2 Nov 28 (Reuters) - Apple AAPL.O is pulling the plug on its credit-card partnership with Goldman Sachs Group GS.N, the Wall Street Journal reported on Tuesday. The tech giant recently sent a proposal to the Wall Street bank to exit the contract in the next roughly 12 to 15 months, the report said, citing people briefed on the matter. The iPhone-maker did not immediately respond to a Reuters request for comment, while Goldman declined to omment.
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Adds details on the contract in paragraph 2 Nov 28 (Reuters) - Apple AAPL.O is pulling the plug on its credit-card partnership with Goldman Sachs Group GS.N, the Wall Street Journal reported on Tuesday. The tech giant recently sent a proposal to the Wall Street bank to exit the contract in the next roughly 12 to 15 months, the report said, citing people briefed on the matter. Apple and Goldman had started to roll out a virtual credit card in 2019.
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Adds details on the contract in paragraph 2 Nov 28 (Reuters) - Apple AAPL.O is pulling the plug on its credit-card partnership with Goldman Sachs Group GS.N, the Wall Street Journal reported on Tuesday. The tech giant recently sent a proposal to the Wall Street bank to exit the contract in the next roughly 12 to 15 months, the report said, citing people briefed on the matter. (Reporting by Pritam Biswas in Bengaluru; Editing by Arun Koyyur) ((Pritam.Biswas@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 on the contract in paragraph 2 Nov 28 (Reuters) - Apple AAPL.O is pulling the plug on its credit-card partnership with Goldman Sachs Group GS.N, the Wall Street Journal reported on Tuesday. The tech giant recently sent a proposal to the Wall Street bank to exit the contract in the next roughly 12 to 15 months, the report said, citing people briefed on the matter. Apple and Goldman had started to roll out a virtual credit card in 2019.
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12357.0
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2023-11-28 00:00:00 UTC
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Apple to end credit-card partnership with Goldman Sachs - WSJ
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AAPL
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https://www.nasdaq.com/articles/apple-to-end-credit-card-partnership-with-goldman-sachs-wsj
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nan
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nan
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Nov 28 (Reuters) - Apple AAPL.O is pulling the plug on its credit-card partnership with Goldman Sachs Group GS.N, the Wall Street Journal reported on Tuesday.
(Reporting by Pritam Biswas in Bengaluru; Editing by Arun Koyyur)
((Pritam.Biswas@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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Nov 28 (Reuters) - Apple AAPL.O is pulling the plug on its credit-card partnership with Goldman Sachs Group GS.N, the Wall Street Journal reported on Tuesday. (Reporting by Pritam Biswas in Bengaluru; Editing by Arun Koyyur) ((Pritam.Biswas@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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Nov 28 (Reuters) - Apple AAPL.O is pulling the plug on its credit-card partnership with Goldman Sachs Group GS.N, the Wall Street Journal reported on Tuesday. (Reporting by Pritam Biswas in Bengaluru; Editing by Arun Koyyur) ((Pritam.Biswas@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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Nov 28 (Reuters) - Apple AAPL.O is pulling the plug on its credit-card partnership with Goldman Sachs Group GS.N, the Wall Street Journal reported on Tuesday. (Reporting by Pritam Biswas in Bengaluru; Editing by Arun Koyyur) ((Pritam.Biswas@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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Nov 28 (Reuters) - Apple AAPL.O is pulling the plug on its credit-card partnership with Goldman Sachs Group GS.N, the Wall Street Journal reported on Tuesday. (Reporting by Pritam Biswas in Bengaluru; Editing by Arun Koyyur) ((Pritam.Biswas@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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12358.0
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2023-11-28 00:00:00 UTC
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Charlie Munger, Half of a Legendary Partnership, Dies at 99
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AAPL
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https://www.nasdaq.com/articles/charlie-munger-half-of-a-legendary-partnership-dies-at-99
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nan
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nan
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Charlie Munger, vice chairman of Berkshire Hathaway and a towering figure in the investment world, has died at age 99. The company announced Tuesday that members of the Munger family said the legendary investor passed away peacefully at a hospital in California.
Munger wasn't just Warren Buffett's right-hand man at Berkshire Hathaway, he was an accomplished investor on his own, with an impressive track record of success dating back many decades. Munger was instrumental in helping Buffett fine-tune his investment style and played a massive role in the 3,787,464% (not a typo) returns the company produced for shareholders from 1964 through the end of 2022.
Image source: Getty Images.
Munger's investment career
Munger was a lawyer by trade. He studied mathematics as an undergraduate and attended Harvard Law School, with a stint in the U.S. Armed Forces in between. Afterward, Munger co-founded a law firm and worked as a real estate attorney, but later stopped practicing to focus on investment management.
Munger is best known for his role as vice chairman of Berkshire Hathaway, but that wasn't the only impressive part of his investment career. In fact, Munger didn't assume that role until 1978, when he was already in his mid-50s.
From 1962 through 1975, Munger ran an investment partnership, Wheeler, Munger & Co., which liquidated thereafter. The partnership's results were extraordinary, producing a 19.8% annualized return (before fees), compared with just 5% for the Dow Jones Industrial Average during that time period. Interestingly, this is almost identical to the long-term compound returns produced by Berkshire Hathaway in the Warren Buffett era.
How Charlie met Warren
Charlie Munger was introduced to Warren Buffett in 1959 by a mutual friend, although Munger had worked at a grocery store owned by Buffett's grandfather as a teenager. Over the years, Munger has been perhaps the biggest influence on Buffett's investment style, aside from Buffett's mentor, Benjamin Graham.
For example, Munger helped shift Buffett's mentality away from investing in troubled businesses (which Buffett called "cigar butt" stocks) and toward focusing on high-quality businesses to own for the long run. The quote "a great business at a fair price is superior to a fair business at a great price" is often attributed to Buffett, but it was actually Munger who said it. In fact, Buffett initially bought shares of struggling textile manufacturer Berkshire Hathaway as a deep-value play, but later came to call it one of his worst investments -- and one that Munger would have likely steered clear of.
Munger also helped shape Warren Buffett's views on diversification, or lack thereof. One of the key differentiators of Munger's investment partnership compared with competitors was Munger's willingness to hold just a few stocks at a time. This is why Buffett is so comfortable with say, roughly half of Berkshire's stock portfolio being invested in Apple. Munger believed that the best way to achieve market-beating returns is to hold a concentrated portfolio, and looking at his track record, it's difficult to make the case otherwise.
Buffett put it simply in Tuesday's announcement: "Berkshire Hathaway could not have been built to its present status without Charlie’s inspiration, wisdom and participation."
Top Charlie Munger quotes on investing
While Buffett is perhaps the most-quoted investor of all time (and for good reason), many of Munger's investing quotes have stolen the show at Berkshire meetings over the years.
With that in mind, here's a list of some of our all-time favorite Charlie Munger quotes:
"It takes character to sit with all that cash and to do nothing. I didn't get to the top where I am by going after mediocre opportunities."
Munger and Buffett drew plenty of commentary in recent years for Berkshire Hathaway's cash hoard, which has ballooned over $150 billion. But the reason it has grown so large is that the pair were perfectly willing to wait indefinitely until attention-getting opportunities arose. Many investors would not be willing to leave this much cash on the sidelines while they wait for opportunities, but Munger considered this a big advantage over other investors.
"You don't have to be brilliant, only a little bit wiser than the other guys, on average, for a long, long time."
Munger didn't swing for the fences. He didn't buy the cheapest stocks, or the fastest-growing businesses, hoping to hit home runs. He was perfectly content with being an above-average hitter and doing so consistently. In the typical year in both his investment partnership and at Berkshire Hathaway, investors' average annualized returns were right around 20% -- superior to the market, sure, but not doubling or tripling their money.
But Munger's point is that's all you need to do, as long as you can maintain the elevated performance. Returns of 20% might not sound like home runs individually, but consider that a $1,000 investment in Berkshire Hathaway in 1964 would be worth about $38 million today.
"We have three baskets for investing: yes, no, and too tough to understand."
Munger wasn't one for diversification, and that's partially because he wouldn't invest in businesses he didn't understand. Both Munger and Buffett missed out on many of the best-performing investments of the past 60 years because of this, but undoubtedly avoided many losses as well.
"The big money is not in buying or selling, but in the waiting."
One of the most important lessons investors can learn is that 99% of great investing involves doing nothing. Munger aimed to put his money in great companies, and leave it there as long as they remained great companies -- even if that meant not making any other portfolio moves.
"A lot of people with high IQs are terrible investors because they've got terrible temperaments."
Smart people lose money in the stock market all the time, and a big reason for it is that they don't have a good handle on their emotions. It's common knowledge that the central goal of investing is to buy low and sell high, but far too many people do the exact opposite in practice. When stocks rise to unsustainable levels and hype is at its peak, that's when they throw their money in. And when markets plunge, they panic and sell.
"We both insist on a lot of time being available almost every day to just sit and think. That is very uncommon in American business. We read and think."
It often surprises investors to learn that Munger and Buffett spent the vast majority of their work days just sitting in their office and reading -- not in meetings, checking stock quotes, analyzing financial statements, or other ways investment managers often spend their time. Munger believed that accumulating knowledge is the best way to gain a competitive advantage in investing, and life in general.
On Bitcoin: "I think I should say modestly that the whole damn development is disgusting and contrary to the interests of civilization."
To say that Munger was critical of cryptocurrencies would be a major understatement. Munger detested cryptocurrencies, having referred to them as "poison," and believed that they are primarily a tool for scammers, criminals, and gamblers, with no legitimate place in the financial world.
"When I was at Harvard Law School, we seldom traded a million shares on a day and now we trade billions. We don't need a stock market that liquid."
In addition to being critical of cryptocurrencies, Munger also criticized the boom in frequent trading, especially when it comes to day trading on app-based platforms like Robinhood where investors can continually make trades with no commissions. He felt this preys on the gambling instincts of the public and is counterproductive to how investing should be done (long-term, buy-and-hold).
Farewell, Charlie
If there were a Mount Rushmore of great investors, there are a few faces we think should definitely be on it. Buffett is an obvious choice, and Peter Lynch is another. Buffett himself has said that statues should be erected of Jack Bogle, the father of modern index fund investing. But Munger is just as deserving of a spot as all of them.
Matthew Frankel, CFP® has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Bitcoin. 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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Munger wasn't just Warren Buffett's right-hand man at Berkshire Hathaway, he was an accomplished investor on his own, with an impressive track record of success dating back many decades. In fact, Buffett initially bought shares of struggling textile manufacturer Berkshire Hathaway as a deep-value play, but later came to call it one of his worst investments -- and one that Munger would have likely steered clear of. It often surprises investors to learn that Munger and Buffett spent the vast majority of their work days just sitting in their office and reading -- not in meetings, checking stock quotes, analyzing financial statements, or other ways investment managers often spend their time.
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Charlie Munger, vice chairman of Berkshire Hathaway and a towering figure in the investment world, has died at age 99. The quote "a great business at a fair price is superior to a fair business at a great price" is often attributed to Buffett, but it was actually Munger who said it. In the typical year in both his investment partnership and at Berkshire Hathaway, investors' average annualized returns were right around 20% -- superior to the market, sure, but not doubling or tripling their money.
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How Charlie met Warren Charlie Munger was introduced to Warren Buffett in 1959 by a mutual friend, although Munger had worked at a grocery store owned by Buffett's grandfather as a teenager. For example, Munger helped shift Buffett's mentality away from investing in troubled businesses (which Buffett called "cigar butt" stocks) and toward focusing on high-quality businesses to own for the long run. Top Charlie Munger quotes on investing While Buffett is perhaps the most-quoted investor of all time (and for good reason), many of Munger's investing quotes have stolen the show at Berkshire meetings over the years.
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Interestingly, this is almost identical to the long-term compound returns produced by Berkshire Hathaway in the Warren Buffett era. Munger wasn't one for diversification, and that's partially because he wouldn't invest in businesses he didn't understand. It often surprises investors to learn that Munger and Buffett spent the vast majority of their work days just sitting in their office and reading -- not in meetings, checking stock quotes, analyzing financial statements, or other ways investment managers often spend their time.
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12359.0
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2023-11-28 00:00:00 UTC
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Could Microsoft Become the Most Important Stock in the Nasdaq, S&P 500, and Dow?
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AAPL
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https://www.nasdaq.com/articles/could-microsoft-become-the-most-important-stock-in-the-nasdaq-sp-500-and-dow
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nan
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nan
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Microsoft (NASDAQ: MSFT), perhaps more than any other company, encapsulates the impact that big tech is having on the stock market and major indices.
For years now, Microsoft has loomed large in Apple's (NASDAQ: AAPL) shadow as the second-most-valuable U.S.-based stock. But that could change, as Microsoft's $2.77 trillion market cap is within striking distance of Apple's $2.97 trillion market cap.
But it's not just about passing Apple in market cap that could make Microsoft the undisputed heavyweight champ of the stock market. Here's a look at how Microsoft could become the most important company in each major index and whether or not the tech stock is worth buying now.
Image source: Getty Images.
Microsoft is moving markets
The S&P 500 and Nasdaq Composite are both market-cap-weighted indexes, meaning companies with higher values make up a larger share of the index. According to Slickcharts, Microsoft stock accounts for 7.24% of the S&P 500 and 10.32% of the Nasdaq Composite.
To put these numbers into context, Microsoft's 55.6% year-to-date stock price gain essentially accounted for 4 percentage points of the S&P 500's 18.4% gains this year and 5.7 percentage points of the Nasdaq Composite's 35.9% gains. This illustrates the impact a big gain from a heavily weighted stock can have on the broader market.
The Dow Jones Industrial Average is a little more complicated. Unlike the S&P 500 and Nasdaq, the Dow is a price-weighted index, meaning stocks with higher share prices have higher weightings. So while Apple may have a slightly heavier weighing in the S&P 500 and Nasdaq, it has a mere 3.59% weighing in the Dow, compared to Microsoft's 7.08% weighting. Similarly, stock splits don't affect a stock's weighting in the S&P 500 and Nasdaq, but they do in the Dow.
So how important has Microsoft been to the Dow this year? Well, the Dow is up 5.86% this year. Without Microsoft, it would have been up just 2.6%.
There's also just one stock that is heavier weighted in the Dow than Microsoft, and that's UnitedHealth Group (NYSE: UNH). UnitedHealth trades at around $540 a share, compared to around $375 a share for Microsoft stock. So Microsoft still has a ways to go before it is the heaviest weight in the Dow.
UnitedHealth isn't exactly the typical stodgy, low-growth healthcare company. The stock has more than doubled over the last five years. However, Microsoft definitely has what it takes to outperform UnitedHealth over time and eventually become the most valuable stock in all three major indices.
Blending the proven with the paradigm-shifting
Microsoft has been around for decades. Its consumer-focused and enterprise software solutions are nothing new. Its cloud business has blossomed into a high-growth cash cow. Its video conferencing solution is one of the leaders in the industry. And of course, Microsoft has emerged as a leader in artificial intelligence (AI) -- which undoubtedly contributed the bulk of the stock's gains this year.
The simplest reason to be optimistic about Microsoft's future is that it generates gobs of free cash flow, which it can use to support its legacy businesses and invest in long-term growth projects. The blueprint for a top growth company is that it embraces change, funds future projects with cash, not debt, and has the ability to transform its business. Microsoft has already done that to an extent with its cloud business. And AI is providing yet another transformation leap for the company.
Microsoft's deep pockets and free cash flow give it the wiggle room needed to take risks and absorb failures. Its most recent quarter (Q1 fiscal 2024) produced record-high free cash flow (FCF) of $20.7 billion. Here's a look at Microsoft's annual FCF over the last 10 years.
MSFT Free Cash Flow (Annual) data by YCharts
Notice how Microsoft earned positive FCF every single year over the last decade. Over the last five fiscal years, Microsoft earned a staggering $264.24 billion in FCF. FCF can be used to buy back stock, pay dividends, make acquisitions, or reinvest in the business.
The beauty of Microsoft is that it can fund a ton of buybacks and its dividend and still have FCF left over to accelerate its growth. For example, Microsoft spent $20.4 billion on buybacks in fiscal 2023 and $19.8 billion on dividends compared to $59.48 billion in FCF. It's worth mentioning that FCF already accounts for expenses like research and development, which Microsoft spent $27.2 billion on in fiscal 2023 -- which illustrates the sheer amount of cash that Microsoft is generating.
Microsoft needs to deliver on its promises
The biggest question for Microsoft investors is how the company will be able to monetize AI and what kind of premium the market may be willing to pay for Microsoft stock. After all, Microsoft trades at a hefty 36.1 price-to-earnings (P/E) ratio, which is far above its 10-year median P/E of 29. That means that the market already expects the company's growth to accelerate, and therefore is willing to give the stock a higher valuation for that future growth.
Investors shouldn't expect Microsoft to regularly trade at a 40 or 50 P/E ratio. Microsoft already got the valuation expansion this year, with the stock price far outpacing the growth rate of its earnings. Instead, the stock is going to have to be driven higher by earnings.
The long-tail trends will take time to play out. And for that reason, a bet on Microsoft at its all-time high is a bet that earnings will grow and the company will able to support its higher valuation -- which remains to be seen.
In this sense, Microsoft stock may have a hard time running higher in the short term. But the company checks all the boxes for a worthwhile long-term investment.
Five years from now, assuming it doesn't split its stock, Microsoft stands an excellent chance at being the most important stock in the S&P 500 and Nasdaq, and surpassing UnitedHealth in the Dow.
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Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For years now, Microsoft has loomed large in Apple's (NASDAQ: AAPL) shadow as the second-most-valuable U.S.-based stock. The simplest reason to be optimistic about Microsoft's future is that it generates gobs of free cash flow, which it can use to support its legacy businesses and invest in long-term growth projects. Microsoft's deep pockets and free cash flow give it the wiggle room needed to take risks and absorb failures.
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For years now, Microsoft has loomed large in Apple's (NASDAQ: AAPL) shadow as the second-most-valuable U.S.-based stock. Unlike the S&P 500 and Nasdaq, the Dow is a price-weighted index, meaning stocks with higher share prices have higher weightings. MSFT Free Cash Flow (Annual) data by YCharts Notice how Microsoft earned positive FCF every single year over the last decade.
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For years now, Microsoft has loomed large in Apple's (NASDAQ: AAPL) shadow as the second-most-valuable U.S.-based stock. Microsoft needs to deliver on its promises The biggest question for Microsoft investors is how the company will be able to monetize AI and what kind of premium the market may be willing to pay for Microsoft stock. Five years from now, assuming it doesn't split its stock, Microsoft stands an excellent chance at being the most important stock in the S&P 500 and Nasdaq, and surpassing UnitedHealth in the Dow.
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For years now, Microsoft has loomed large in Apple's (NASDAQ: AAPL) shadow as the second-most-valuable U.S.-based stock. Well, the Dow is up 5.86% this year. The simplest reason to be optimistic about Microsoft's future is that it generates gobs of free cash flow, which it can use to support its legacy businesses and invest in long-term growth projects.
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2023-11-28 00:00:00 UTC
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Investors Heavily Search Apple Inc. (AAPL): Here is What You Need to Know
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AAPL
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https://www.nasdaq.com/articles/investors-heavily-search-apple-inc.-aapl%3A-here-is-what-you-need-to-know-7
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nan
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nan
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this maker of iPhones, iPads and other products have returned +11.5% over the past month versus the Zacks S&P 500 composite's +10.7% change. The Zacks Computer - Mini computers industry, to which Apple belongs, has gained 13% 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.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Apple is expected to post earnings of $2.08 per share, indicating a change of +10.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.6% over the last 30 days.
The consensus earnings estimate of $6.56 for the current fiscal year indicates a year-over-year change of +7%. This estimate has changed +0.4% 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 -1.1%.
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
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Apple, the consensus sales estimate of $117.31 billion for the current quarter points to a year-over-year change of +0.1%. The $393.42 billion and $418.55 billion estimates for the current and next fiscal years indicate changes of +2.7% and +6.4%, 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
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty 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.
7 Best Stocks for the Next 30 Days
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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) has been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends.
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. 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.
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Apple (AAPL) has been one of the most searched-for stocks on Zacks.com 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) has been one of the most searched-for stocks on Zacks.com lately. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report To read this article on Zacks.com click here. And if earnings estimates go up for a company, the fair value for its stock goes up.
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2023-11-28 00:00:00 UTC
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Should Schwab Fundamental U.S. Large Company Index ETF (FNDX) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-schwab-fundamental-u.s.-large-company-index-etf-fndx-be-on-your-investing-radar-11
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Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the Schwab Fundamental U.S. Large Company Index ETF (FNDX), a passively managed exchange traded fund launched on 08/13/2013.
The fund is sponsored by Charles Schwab. It has amassed assets over $12.37 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.25%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.90%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 18.60% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.49% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRK/B).
The top 10 holdings account for about 20.59% of total assets under management.
Performance and Risk
FNDX seeks to match the performance of the Russell RAFI US Large Co. Index before fees and expenses. The Russell RAFI US Large Company Index measures the performance of the large company size segment by fundamental overall company scores.
The ETF has gained about 10.97% so far this year and is up roughly 6.15% in the last one year (as of 11/28/2023). In the past 52-week period, it has traded between $52.49 and $59.78.
The ETF has a beta of 1.01 and standard deviation of 16.36% for the trailing three-year period, making it a medium risk choice in the space. With about 730 holdings, it effectively diversifies company-specific risk.
Alternatives
Schwab Fundamental U.S. Large Company Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FNDX is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index. While iShares Russell 1000 Value ETF has $50.60 billion in assets, Vanguard Value ETF has $99.95 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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
Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Vanguard Value ETF (VTV): ETF Research Reports
iShares Russell 1000 Value ETF (IWD): ETF Research Reports
To read this article on Zacks.com click here.
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 4.49% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRK/B). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. You should consider the Schwab Fundamental U.S. Large Company Index ETF (FNDX), a passively managed exchange traded fund launched on 08/13/2013.
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Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.49% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRK/B). You should consider the Schwab Fundamental U.S. Large Company Index ETF (FNDX), a passively managed exchange traded fund launched on 08/13/2013.
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Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.49% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRK/B). Alternatives Schwab Fundamental U.S. Large Company Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors.
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Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.49% of total assets, followed by Microsoft Corp (MSFT) and Berkshire Hathaway Inc Class B (BRK/B). Click to get this free report Schwab Fundamental U.S. Large Company Index ETF (FNDX): ETF Research Reports Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Vanguard Value ETF (VTV): ETF Research Reports iShares Russell 1000 Value ETF (IWD): ETF Research Reports To read this article on Zacks.com click here. You should consider the Schwab Fundamental U.S. Large Company Index ETF (FNDX), a passively managed exchange traded fund launched on 08/13/2013.
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2023-11-28 00:00:00 UTC
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Dell Technologies (DELL) to Post Q3 Earnings: What's in Store?
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AAPL
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https://www.nasdaq.com/articles/dell-technologies-dell-to-post-q3-earnings%3A-whats-in-store-1
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nan
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Dell Technologies DELL is set to report its third-quarter fiscal 2024 results on Nov 30.
Dell expects fiscal third-quarter revenues in the range of $22.5-$23.5 billion, unchanged sequentially. Earnings are expected to be $1.45 per share (+/- 10 cents).
The Zacks Consensus Estimate for revenues is pegged at $22.93 billion, suggesting a 7.23% decline from the figure reported in the year-ago quarter.
The consensus mark for quarterly earnings is pegged at $1.47 per share, indicating a 36.09% decline from the year-ago quarter’s figure. The consensus estimate for earnings has been steady in the past 30 days.
Dell's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, with an earnings surprise of 39.52% on average.
Dell Technologies Inc. Price and EPS Surprise
Dell Technologies Inc. price-eps-surprise | Dell Technologies Inc. Quote
Let's see how things have shaped up for DELL before this announcement.
Factors to Watch
Dell expects both Client Solutions Group (CSG) and Infrastructure Solutions Group revenues to be roughly flat sequentially in the to-be-reported quarter. Continued sluggish IT spending by corporate and global enterprise customers is expected to have hurt top-line growth.
Moreover, unfavorable foreign exchange is expected to have been a headwind. Dell expects roughly 40 basis points impact on revenues.
CSG revenues are expected to have suffered from lackluster PC demand. Per Gartner, worldwide PC shipments in the third quarter of 2023 witnessed a year-over-year decrease of 9%, reaching 64.279 million units. Dell was ranked third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL.
This Zacks Rank #2 (Buy) company shipped 10.32 million units, witnessing a 14.2% year-over-year decline in the third quarter of 2023, per the Gartner report. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lenovo, HP and Apple shipped 16.146 million, 13.531 million and 6.266 million units, respectively.
Dell’s expanding Generative AI solutions portfolio is expected to have accelerated top-line growth.
Dell’s latest solution, the Dell Validated Design for Generative AI with NVIDIA for Model Customization, offers pre-trained models that extract intelligence from data, sparing enterprises from building models from scratch.
Dell Validated Designs for Generative AI now supports both model tuning and inferencing. The solution is supported by the Dell PowerEdge XE9680 AI server or the Dell PowerEdge XE8640, with a choice of NVIDIA Tensor Core GPUs and NVIDIA AI Enterprise software, which offers frameworks, pre-trained models and development tools, such as the NVIDIA NeMo framework and Dell software.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.0% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
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
HP Inc. (HPQ) : Free Stock Analysis Report
Dell Technologies Inc. (DELL) : Free Stock Analysis Report
Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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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Dell was ranked third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for revenues is pegged at $22.93 billion, suggesting a 7.23% decline from the figure reported in the year-ago quarter.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Dell was ranked third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL. This Zacks Rank #2 (Buy) company shipped 10.32 million units, witnessing a 14.2% year-over-year decline in the third quarter of 2023, per the Gartner report.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Dell was ranked third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL. Dell Technologies Inc. Price and EPS Surprise Dell Technologies Inc. price-eps-surprise | Dell Technologies Inc. Quote Let's see how things have shaped up for DELL before this announcement.
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Dell was ranked third among all PC vendors, trailing Lenovo LNVGY and HP HPQ, but beating Apple AAPL. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report HP Inc. (HPQ) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report To read this article on Zacks.com click here. Dell's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, with an earnings surprise of 39.52% on average.
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2023-11-28 00:00:00 UTC
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Should You Invest in the Fidelity MSCI Information Technology Index ETF (FTEC)?
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AAPL
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https://www.nasdaq.com/articles/should-you-invest-in-the-fidelity-msci-information-technology-index-etf-ftec-9
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The Fidelity MSCI Information Technology Index ETF (FTEC) was launched on 10/21/2013, and is a passively managed exchange traded fund designed to offer broad exposure to the Technology - Broad segment of the equity market.
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.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $7.79 billion, making it one of the largest ETFs attempting to match the performance of the Technology - Broad segment of the equity market. FTEC seeks to match the performance of the MSCI USA IMI Information Technology Index before fees and expenses.
The MSCI USA IMI Information Technology Index represents the performance of the information technology sector in the U.S. equity market.
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 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.66%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 21.80% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA).
The top 10 holdings account for about 61.93% of total assets under management.
Performance and Risk
The ETF has added about 45.39% and was up about 35.94% so far this year and in the past one year (as of 11/28/2023), respectively. FTEC has traded between $92 and $137.43 during this last 52-week period.
The ETF has a beta of 1.14 and standard deviation of 25.21% for the trailing three-year period, making it a medium risk choice in the space. With about 312 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Information Technology Index 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, FTEC is an outstanding option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
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 $54.81 billion in assets, Vanguard Information Technology ETF has $55.09 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.
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
Fidelity MSCI Information Technology Index ETF (FTEC): 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 Common Stock Usd.00001 (AAPL) accounts for about 21.80% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA). Click to get this free report Fidelity MSCI Information Technology Index ETF (FTEC): 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 $7.79 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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Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 21.80% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA). Click to get this free report Fidelity MSCI Information Technology Index ETF (FTEC): 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. 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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Click to get this free report Fidelity MSCI Information Technology Index ETF (FTEC): 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 Common Stock Usd.00001 (AAPL) accounts for about 21.80% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA). Alternatives Fidelity MSCI Information Technology Index 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.
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Looking at individual holdings, Apple Inc Common Stock Usd.00001 (AAPL) accounts for about 21.80% of total assets, followed by Microsoft Corp Common Stock Usd.00000625 (MSFT) and Nvidia Corp Common Stock Usd.001 (NVDA). Click to get this free report Fidelity MSCI Information Technology Index ETF (FTEC): 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 Fidelity MSCI Information Technology Index ETF (FTEC) was launched on 10/21/2013, 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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12364.0
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2023-11-28 00:00:00 UTC
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2 No-Brainer Stocks to Buy During a Stock Market Plunge
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AAPL
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https://www.nasdaq.com/articles/2-no-brainer-stocks-to-buy-during-a-stock-market-plunge-0
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nan
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nan
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In 2022, the Nasdaq Composite index fell 33% as a spike in inflation curbed consumer and commercial spending. Countless companies posted dismal results, which led investors to bid down their stocks. However, economic improvements have allowed for a market recovery this year, and the Nasdaq has risen by 36% since Jan. 1.
That pattern highlights why holding onto your investments during poor economic conditions is crucial, and why a sell-off might be the best time to expand your portfolio. Those who sold in 2022 will not have profited from the recovery many stocks have enjoyed this year.
As such, it's not a bad idea to get familiar with some of the best stocks to buy in the event of a market downturn so you can be ready to strike if one occurs. So, here are two no-brainer stocks to buy during a stock market plunge.
1. Amazon
Amazon's (NASDAQ: AMZN) business proved particularly vulnerable to macroeconomic headwinds last year, and its shares fell by 50% as its e-commerce segments experienced significant declines. However, the company made an impressive turnaround in 2023, bringing its retail business back to profitability and rallying investors with an expansion in artificial intelligence (AI).
In the third quarter, Amazon's revenue rose more than 13% year over year, beating Wall Street's consensus forecast by $1.5 billion. The company benefited from solid growth in its North American segment, which posted an 11% increase in revenue and operating income of more than $4 billion. That was a massive improvement on the $412 million in operating losses the segment reported in the year-ago quarter.
After a challenging 2022, Amazon undertook several cost-cutting measures, including laying off thousands of people, closing warehouses, and shuttering unprofitable projects such as Amazon Care. These maneuvers illustrated the strength of management, with its ability to successfully navigate poor economic conditions and deliver significant growth in the company's retail segments. As a result, Amazon is heading into 2024 on better financial footing than it started this year, making it an attractive investment -- especially during a sell-off.
Amazon's business might not be as vulnerable to economic fluctuations after its recent cost-cutting moves, but its stock would likely still decline in a marketwide plunge. However, this year's comeback suggests that it wouldn't be down for long. Alongside a lucrative cloud business with Amazon Web Services and a growing position in AI, Amazon shares are an excellent option if the stock market takes a hit.
2. Apple
Apple (NASDAQ: AAPL) stock has gained a reputation for reliability over the years. In fact, it outperformed four of its biggest competitors in tech in 2022, as well as the Nasdaq Composite index. The company's stock proved resilient during the challenging period and became a haven for many investors.
Data by YCharts.
In 2023, macroeconomic headwinds caught up with Apple. Its revenue tumbled 3% year over year in its fiscal 2023 (which ended Sept. 30) after repeated sales declines in its product segments. Yet, its stock climbed about 46% since Jan. 1 as its history of consistent long-term gains eclipsed temporary hits to its business. Investor loyalty means Apple shares rarely go on sale, with a stock market sell-off being a compelling time to buy.
Despite poor market conditions this year, Apple's dominance in consumer tech products remains a compelling reason to invest in its stock. The company holds leading market shares in most of its product categories and has much to gain from the industry's recovery.
Moreover, Apple is heavily investing in the booming AI market, which is already worth $137 billion, and which Grand View Research projects will expand at a compound annual rate of 37% through 2030. In fiscal 2023, Apple's research and development spending rose by $3.6 billion, primarily due to its investments in generative AI.
The company's research has allowed it to develop its own large language model and make AI upgrades across its product lineup this year. Popular products such as the iPhone, Apple Watch, and AirPods Pro now offer AI features, improving the user experience and bolstering brand loyalty.
As the leader in consumer tech, Apple will likely play a crucial role in the public's adoption of AI. While most AI-minded companies are focused on the commercial sector, Apple's prioritization of consumers could grant it a lucrative position in the industry over the long term.
Over the last five years, Apple's stock rose 341%, more than Microsoft, Alphabet, or Amazon gained over that time frame. While past growth isn't always indicative of what's to come, Apple's dominance in consumer tech and its expansion into booming markets like AI will likely continue offering investors significant gains for years. The company is a screaming buy in a market downturn and an exciting long-term investment.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, 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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Apple Apple (NASDAQ: AAPL) stock has gained a reputation for reliability over the years. These maneuvers illustrated the strength of management, with its ability to successfully navigate poor economic conditions and deliver significant growth in the company's retail segments. Popular products such as the iPhone, Apple Watch, and AirPods Pro now offer AI features, improving the user experience and bolstering brand loyalty.
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Apple Apple (NASDAQ: AAPL) stock has gained a reputation for reliability over the years. Amazon Amazon's (NASDAQ: AMZN) business proved particularly vulnerable to macroeconomic headwinds last year, and its shares fell by 50% as its e-commerce segments experienced significant declines. Despite poor market conditions this year, Apple's dominance in consumer tech products remains a compelling reason to invest in its stock.
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Apple Apple (NASDAQ: AAPL) stock has gained a reputation for reliability over the years. Alongside a lucrative cloud business with Amazon Web Services and a growing position in AI, Amazon shares are an excellent option if the stock market takes a hit. Despite poor market conditions this year, Apple's dominance in consumer tech products remains a compelling reason to invest in its stock.
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Apple Apple (NASDAQ: AAPL) stock has gained a reputation for reliability over the years. Amazon Amazon's (NASDAQ: AMZN) business proved particularly vulnerable to macroeconomic headwinds last year, and its shares fell by 50% as its e-commerce segments experienced significant declines. While past growth isn't always indicative of what's to come, Apple's dominance in consumer tech and its expansion into booming markets like AI will likely continue offering investors significant gains for years.
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12365.0
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2023-11-28 00:00:00 UTC
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Apple Stock: Buy, Sell, or Hold?
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AAPL
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https://www.nasdaq.com/articles/apple-stock%3A-buy-sell-or-hold-3
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nan
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nan
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With top products like the iPhone and Apple Watch, Apple (NASDAQ: AAPL) has pretty much become a household name. The trillion-dollar company has an enormous audience worldwide, with fans eagerly awaiting the next product launch. This has helped the tech and consumer goods giant grow earnings over time.
These elements make Apple a great buy, but other points may weigh in favor of selling the stock. For example, Apple shares already climbed nearly 50% this year, so near-term performance potential may be limited. And the company recently reported declines in product revenue, which could spur questions about growth moving forward. So, right now, which way should you go -- should you buy, sell, or hold Apple stock? Let's find out.
Image source: Getty Images.
Apple's product revenue
Apple did indeed report a drop in product revenue in the most recent quarter -- it fell about 5% -- but it's important to understand why that happened. First, negative currency effect was a factor, and since this is a temporary external element, I don't see it as a problem for Apple's long-term growth.
Second, Apple faced a difficult comparison period for certain products: The Mac and the iPad posted unusually high sales in the same quarter last year due to pent-up demand. Earlier supply chain disruptions delayed product sales and pushed them all into that particular quarter, making it a very difficult quarter to beat. Again, this doesn't reflect lack of demand for Apple's products or a permanent weight on sales growth.
Of course, Apple's revenue may not grow at the same rate as a new, up-and-coming company's, but it offers investors a very respectable level of growth and innovation, along with elements that should help this growth continue and even accelerate. I'm talking about brand strength and the promise of Apple's services business.
We'll talk about brand strength first. Generally, Apple fans stick with the company's products, thanks to the power of the brand, and this has created a moat, or competitive advantage. This also leads to pricing power, or the ability to raise prices without losing the customer. At the same time, the strength of the brand continues to attract new customers -- in the recent quarter, half of Mac buyers were new to the item. All this offers visibility on future product revenue, and here, things are looking good. Mac and iPhone installs are at a record high, the company says.
Growth in Apple's services business
Now, a bit on the services business. This includes any of the potential services you may subscribe to as an Apple device user -- for example, cloud storage or digital content. The higher the install base, the more Apple's services business may grow, and that's exactly what's happening now.
In the quarter, services revenue climbed 16%, reaching a record high. And here's even more good news. Services are higher margin than products -- with a gross margin of about 70%, versus 36% for products -- and that means they can be more profitable for Apple. It's also important to note this revenue is recurrent. You don't buy an iPhone every day, but you may regularly pay for Apple services.
Finally, yes, Apple shares have advanced this year, but they still are trading at only 29 times forward earnings estimates, which is very reasonable for a growth stock that also offers a lot of stability -- including dividend payments.
An impressive track record
So, should you buy, sell, or hold Apple stock? Apple hasn't lost its luster and still is a terrific long-term buy. The company offers you a track record of growth, with several important financial metrics that have increased over time.
AAPL Revenue (Annual) data by YCharts
Meanwhile, Apple, thanks to more and more people using its devices, now has the subscriber base necessary to drive services revenue. This could lead to a whole new era of growth for the technology powerhouse, which in turn should drive the share price higher over time.
All this means that, even though Apple shares have gained this year, this top stock still has plenty of room to run -- in the near term and over the long term. So it's a great idea to buy the stock today, or hold if you're already a shareholder, and benefit from the many chapters to come in this exciting story.
10 stocks we like better than Apple
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With top products like the iPhone and Apple Watch, Apple (NASDAQ: AAPL) has pretty much become a household name. AAPL Revenue (Annual) data by YCharts Meanwhile, Apple, thanks to more and more people using its devices, now has the subscriber base necessary to drive services revenue. Second, Apple faced a difficult comparison period for certain products: The Mac and the iPad posted unusually high sales in the same quarter last year due to pent-up demand.
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With top products like the iPhone and Apple Watch, Apple (NASDAQ: AAPL) has pretty much become a household name. AAPL Revenue (Annual) data by YCharts Meanwhile, Apple, thanks to more and more people using its devices, now has the subscriber base necessary to drive services revenue. Apple's product revenue Apple did indeed report a drop in product revenue in the most recent quarter -- it fell about 5% -- but it's important to understand why that happened.
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With top products like the iPhone and Apple Watch, Apple (NASDAQ: AAPL) has pretty much become a household name. AAPL Revenue (Annual) data by YCharts Meanwhile, Apple, thanks to more and more people using its devices, now has the subscriber base necessary to drive services revenue. Apple's product revenue Apple did indeed report a drop in product revenue in the most recent quarter -- it fell about 5% -- but it's important to understand why that happened.
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With top products like the iPhone and Apple Watch, Apple (NASDAQ: AAPL) has pretty much become a household name. AAPL Revenue (Annual) data by YCharts Meanwhile, Apple, thanks to more and more people using its devices, now has the subscriber base necessary to drive services revenue. Apple's product revenue Apple did indeed report a drop in product revenue in the most recent quarter -- it fell about 5% -- but it's important to understand why that happened.
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12366.0
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2023-11-28 00:00:00 UTC
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Apple Has Big Changes Planned for Next Year, and They Should Make Messaging to Android Devices a Lot Easier
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AAPL
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https://www.nasdaq.com/articles/apple-has-big-changes-planned-for-next-year-and-they-should-make-messaging-to-android
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nan
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nan
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Perennially ambitious Apple (NASDAQ: AAPL) is plotting how to keep itself powerful and growing in 2024. The ever-secretive company is tight-lipped about its plans for next year, and the usual speculations -- believable and otherwise -- are floating in the air. According to them, 2024 will see the company introduce slick new iPads, faster iMacs, and, of course, a new iPhone in September like it always does that month.
It's unusual when Apple actually spills the beans on its own. But in mid-November, this occurred with one of its native apps that has been a mainstay of iDevices for years. Read on to find out what it is and what's going to change with this heavily used piece of software.
Apple makes nice with Android
We're talking about Apple's iMessage app. The company will supplement the home-grown system that currently powers it with one called Rich Communication Services (RCS). RCS has been widely adopted, with one prominent adoptee being Android, the operating system primarily developed by Apple arch-rival Alphabet's (NASDAQ: GOOG)(NASDAQ: GOOGL) Google.
RCS was developed under the auspices of the GSM Association, an influential trade group consisting of mobile telecom businesses around the world. Deriving from foundational-messaging technology like SMS and MMS, it's a protocol that supports features such as read receipts, encryption, and video communication.
Let's pause for a moment and appreciate how rare Apple's move is. The company famously likes to stand proudly, and often stubbornly alone, behind its technology. iMessaging is only one example of many; witness management's decision earlier this decade to develop and deploy its own line of processors.
The trouble with being pridefully solo is that proprietary solutions don't always play nice with other standards. Texting between Android and Apple devices has been notoriously problematic for years; with Apple harnessing RCS, such difficulties should largely disappear, providing an experience close to that enjoyed by Apple users smoothly iMessaging away to each other.
Avoiding a big regulatory headache across the sea
Apple is surely not doing this out of a friendly desire to make Android users' lives easier. It didn't offer any reasoning behind its decision, but it can't be a coincidence that a powerful regulator is effectively calling its previous stance into question.
The European Commission, the executive arm of the European Union that also has certain regulatory duties, will enforce key elements of the sprawling Digital Markets Act (DMA) just after the beginning of 2024. Among other mandates, the DMA requires that tech giants like Apple and Alphabet make their "core platform services" interoperable by next March 6. The current disconnect and clunkiness between Android and Apple messaging would seem to be in violation of that.
In September, the Commission announced it was looking into whether select Big Tech offerings were truly core platform services. No prizes for guessing which messaging service was targeted. Pouring fuel on this fire was, yes, Alphabet; along with RCS-using peers, the company has apparently been lobbying the Commission to push Apple to adopt the protocol.
If recent tech-sector history is any indication, a potential Apple vs. European Commission fight would be long, protracted, expensive, and more likely to end in favor of the entity with the law on its side. Apple is smartly avoiding a tussle it probably won't win to any meaningful degree. And in doing so, it's looking like a good guy that just wants every device to get along.
No, this won't suddenly make the average Android user an Apple convert. We won't likely see a surge (or even much of a bump) in Apple's business as swarms of Android escapees ditch their phones and rush to Apple Stores for hot new iProducts. People need much stronger reasons to change devices and/or systems.
But any decision that reduces or eliminates a potentially monster legal headache is a smart move. Better still, this one indicates Apple might be more flexible and opportunistic than it's been in the past.
10 stocks we like better than Apple
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*Stock Advisor returns as of November 20, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Eric Volkman has positions in Apple. The Motley Fool has positions in and recommends Alphabet and Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Perennially ambitious Apple (NASDAQ: AAPL) is plotting how to keep itself powerful and growing in 2024. Avoiding a big regulatory headache across the sea Apple is surely not doing this out of a friendly desire to make Android users' lives easier. Among other mandates, the DMA requires that tech giants like Apple and Alphabet make their "core platform services" interoperable by next March 6.
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Perennially ambitious Apple (NASDAQ: AAPL) is plotting how to keep itself powerful and growing in 2024. RCS has been widely adopted, with one prominent adoptee being Android, the operating system primarily developed by Apple arch-rival Alphabet's (NASDAQ: GOOG)(NASDAQ: GOOGL) Google. Among other mandates, the DMA requires that tech giants like Apple and Alphabet make their "core platform services" interoperable by next March 6.
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Perennially ambitious Apple (NASDAQ: AAPL) is plotting how to keep itself powerful and growing in 2024. Apple makes nice with Android We're talking about Apple's iMessage app. Texting between Android and Apple devices has been notoriously problematic for years; with Apple harnessing RCS, such difficulties should largely disappear, providing an experience close to that enjoyed by Apple users smoothly iMessaging away to each other.
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Perennially ambitious Apple (NASDAQ: AAPL) is plotting how to keep itself powerful and growing in 2024. Apple makes nice with Android We're talking about Apple's iMessage app. No, this won't suddenly make the average Android user an Apple convert.
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12367.0
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2023-11-28 00:00:00 UTC
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Is Apple an Underrated AI Stock to Buy Right Now?
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AAPL
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https://www.nasdaq.com/articles/is-apple-an-underrated-ai-stock-to-buy-right-now
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nan
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nan
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Apple (NASDAQ: AAPL), often celebrated for its sleek devices and robust ecosystem, might just be the most underrated player in the artificial intelligence (AI) space. Overshadowed by the AI initiatives of Microsoft and Alphabet, Apple has the potential to surprise investors with its own tech that it is reportedly working on. Here's a closer look at why investors shouldn't count out the stock as a potential AI play.
Apple is creating a chatbot of its own
ChatGPT and Bard are the big mainstream chatbots that consumers and investors are likely familiar with today. But AI is still in its early innings, and Apple plans to be a big player in the generative AI space. The company is reportedly working on Apple GPT, its answer to the current chatbots.
Knowing that it is behind its rivals, Apple is also willing to spend big to catch up and bridge the gap. A report from Bloomberg indicates that Apple plans to spend as much as $1 billion per year in its development of generative AI.
Why investors shouldn't count out Apple GPT
Apple's deep pockets indicate that the company could make a hefty investment in generative AI. While $1 billion in annual spend may seem like a lot, it's a relatively modest sum for Apple.
Over the past four quarters, the company has generated $101 billion in free cash flow. The company can easily funnel a lot more into the development of a chatbot and integrating AI into its existing products and services.
An advantage Apple has over its rivals is that it can take the time to learn from their mistakes, which often come as a result of being first movers into a new space. Apple doesn't need to be a first mover in AI because it already has a strong and loyal customer following; there isn't an overwhelming need to attract and bring in new users. And by learning from its competitors' mistakes in AI, the company can deliver a better end product.
While that doesn't guarantee success for Apple's generative AI, it does put the company in a great position to succeed. Its rivals may have an early lead, but that may not be sustainable in the long run, particularly if Apple focuses on safety and data privacy -- key areas of concern for companies and individuals using chatbots today.
It could be a while before Apple starts to benefit from AI
The downside for Apple consumers and investors is that it may take some time before Apple GPT and other AI-powered products and services become available. Jeff Pu, an analyst who covers Apple, believes the earliest that consumers will see AI infiltrate the iPhone and iPad could be late next year. That's a fairly long time given that both Microsoft and Alphabet have already begun rolling out AI into their products and services.
However, an announcement detailing its AI initiatives could come much earlier for Apple. With more than 2 billion active devices in the world, the company has a massive network of users that it can still tap into once it gets its AI products and services up and running. Although it doesn't want to miss out on this major opportunity, the Mac maker also doesn't need to be in a huge rush, either.
Is Apple a good stock for AI investors to buy?
Apple isn't leading the charge with respect to AI, but the days of the company being a first mover in any space are likely long gone. Nowadays, the iPhone giant's focus is more strategic and calculated, which can pay off in the long run if Apple is able to come out with more polished products and services, as it normally does.
For AI investors, Apple could be an underrated buy right now. AI-enhanced iPhones, iPads, and Mac computers could be what's needed to excite consumers and lead to an uptick in demand. With a mammoth user base, AI could be a huge growth catalyst for Apple for years to come. Although the stock may not be as popular of an AI play as its rivals are these days, Apple can still prove to be a great AI stock to own in the long run.
As long as you're willing to be patient with the company, Apple shares may be worth buying today, as AI could give the business even more room to grow.
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 November 27, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple (NASDAQ: AAPL), often celebrated for its sleek devices and robust ecosystem, might just be the most underrated player in the artificial intelligence (AI) space. Its rivals may have an early lead, but that may not be sustainable in the long run, particularly if Apple focuses on safety and data privacy -- key areas of concern for companies and individuals using chatbots today. Jeff Pu, an analyst who covers Apple, believes the earliest that consumers will see AI infiltrate the iPhone and iPad could be late next year.
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Apple (NASDAQ: AAPL), often celebrated for its sleek devices and robust ecosystem, might just be the most underrated player in the artificial intelligence (AI) space. Here's a closer look at why investors shouldn't count out the stock as a potential AI play. But AI is still in its early innings, and Apple plans to be a big player in the generative AI space.
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Apple (NASDAQ: AAPL), often celebrated for its sleek devices and robust ecosystem, might just be the most underrated player in the artificial intelligence (AI) space. Why investors shouldn't count out Apple GPT Apple's deep pockets indicate that the company could make a hefty investment in generative AI. It could be a while before Apple starts to benefit from AI The downside for Apple consumers and investors is that it may take some time before Apple GPT and other AI-powered products and services become available.
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Apple (NASDAQ: AAPL), often celebrated for its sleek devices and robust ecosystem, might just be the most underrated player in the artificial intelligence (AI) space. A report from Bloomberg indicates that Apple plans to spend as much as $1 billion per year in its development of generative AI. It could be a while before Apple starts to benefit from AI The downside for Apple consumers and investors is that it may take some time before Apple GPT and other AI-powered products and services become available.
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12368.0
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2023-11-27 00:00:00 UTC
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Australia to amend law to regulate digital payments like Apple, Google Pay
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AAPL
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https://www.nasdaq.com/articles/australia-to-amend-law-to-regulate-digital-payments-like-apple-google-pay
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nan
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nan
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SYDNEY, Nov 27 (Reuters) - Australia's government said on Monday it would bring Apple Pay, Google Pay and other digital payment services under the same regulatory umbrella as credit cards and other payments as part of legislation set to be introduced to parliament this week.
Digital wallets from the likes of Apple AAPL.O, Google GOOGL.O and WeChat developer Tencent 0700.HK have exploded in popularity but are not captured by Australian payments law.
The legislation, first flagged last month, will broaden the legislation that empowers the Reserve Bank of Australia to regulate payments so that it applies to new and emerging technology.
"We are modernising Australia's payments system to ensure it meets the needs of our economy now and into the future," Treasurer Jim Chalmers said in a statement.
"We want to make sure the increasing use of digital payments occurs in a way that helps promote greater competition, innovation and productivity across our entire economy."
Legislation is set to be introduced on Wednesday or Thursday, according to Chalmers' office.
Regulators are responding to the rapid growth of digital wallets, especially among the young. Transactions from a digital wallet hit 35% of all card transactions in the June quarter, up from 10% in early 2020.
Two-thirds of Australians aged between 18 and 29 use mobile payments. Before the pandemic it was less than 20%.
The amendments will also give a relevant minister power to subject a system or platform to special oversight in the event it presents a risk of "national significance."
(Reporting by Lewis Jackson; Editing by Jamie Freed)
((lewis.jackson@thomsonreuters.com; +61477406822; Reuters Messaging: @lewjackk))
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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Digital wallets from the likes of Apple AAPL.O, Google GOOGL.O and WeChat developer Tencent 0700.HK have exploded in popularity but are not captured by Australian payments law. "We want to make sure the increasing use of digital payments occurs in a way that helps promote greater competition, innovation and productivity across our entire economy." The amendments will also give a relevant minister power to subject a system or platform to special oversight in the event it presents a risk of "national significance."
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Digital wallets from the likes of Apple AAPL.O, Google GOOGL.O and WeChat developer Tencent 0700.HK have exploded in popularity but are not captured by Australian payments law. SYDNEY, Nov 27 (Reuters) - Australia's government said on Monday it would bring Apple Pay, Google Pay and other digital payment services under the same regulatory umbrella as credit cards and other payments as part of legislation set to be introduced to parliament this week. "We are modernising Australia's payments system to ensure it meets the needs of our economy now and into the future," Treasurer Jim Chalmers said in a statement.
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Digital wallets from the likes of Apple AAPL.O, Google GOOGL.O and WeChat developer Tencent 0700.HK have exploded in popularity but are not captured by Australian payments law. SYDNEY, Nov 27 (Reuters) - Australia's government said on Monday it would bring Apple Pay, Google Pay and other digital payment services under the same regulatory umbrella as credit cards and other payments as part of legislation set to be introduced to parliament this week. The legislation, first flagged last month, will broaden the legislation that empowers the Reserve Bank of Australia to regulate payments so that it applies to new and emerging technology.
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Digital wallets from the likes of Apple AAPL.O, Google GOOGL.O and WeChat developer Tencent 0700.HK have exploded in popularity but are not captured by Australian payments law. SYDNEY, Nov 27 (Reuters) - Australia's government said on Monday it would bring Apple Pay, Google Pay and other digital payment services under the same regulatory umbrella as credit cards and other payments as part of legislation set to be introduced to parliament this week. The legislation, first flagged last month, will broaden the legislation that empowers the Reserve Bank of Australia to regulate payments so that it applies to new and emerging technology.
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2023-11-27 00:00:00 UTC
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3 Stocks to Add to Your Portfolio in a Market Pullback
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AAPL
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https://www.nasdaq.com/articles/3-stocks-to-add-to-your-portfolio-in-a-market-pullback-9
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"Be prepared, work hard, and hope for a little luck. Recognize that the harder you work and the better prepared you are, the more luck you might have." -- Ed Bradley
Those words of wisdom apply to many aspects of life, such as sports and your career. They apply very much to investing as well. If you work hard -- perhaps by reading widely -- you can become a savvy investor, able to spot red flags and green flags in financial statements and identify high-quality, growing companies.
Ideally, though, you don't want to invest in those companies at just any price. Instead, aim to buy when they're undervalued -- say, after a market pullback -- thus giving you a margin of safety. Below are three such contenders to consider. If you like any of them, add them to a watch list and wait for a better price.
1. Apple
Apple (NASDAQ: AAPL) is one of the biggest companies in the world with a recent market value near $3 trillion and a lofty mission: "Apple's more than 100,000 employees are dedicated to making the best products on Earth, and to leaving the world better than we found it." It has built a massive and enviable ecosystem of compatible products across five software platforms -- iOS, iPadOS, macOS, watchOS, and tvOS -- and is always looking to expand more, for instance, into artificial intelligence.
The company's fourth quarter featured revenue down 1% year over year, likely due in part to inflation and high interest rates dampening consumers' buying enthusiasm. But earnings per share were up 13%, iPhone sales were up 3%, and the high-margin services division, second in revenue size only to iPhones, was up 16%.
Apple is a dividend payer, too, with a recent modest dividend yield of 0.50%. (It has hiked that payout by an annual average of 6% over the past five years.) Note that if the stock falls in value, the dividend yield will go up, barring any change in the dividend amount. With a recent forward-looking price-to-earnings (P/E) ratio of 28.7, well above the five-year average of 24.1, Apple's stock doesn't appear to be a screaming bargain. But stay ready should a better price emerge in a market drop.
2. Costco
Costco Wholesale (NASDAQ: COST), with a recent market value north of $260 billion, has grown into one of Earth's biggest retailers -- in part by paying attention to and serving its customers, employees, and shareholders well. The mega-retailer recently sported 862 stores worldwide, with 592 in the U.S.
It's also a favorite holding of Warren Buffett's business partner, Charlie Munger, who has said, "I love everything about Costco. I'm a total addict, and I'm never going to sell a share."
Like other big companies wanting to expand via new growth drivers, Costco is looking at healthcare, offering its members inexpensive virtual visits, checkups, and lab work costing $29 to $79. With healthcare generally so costly these days, this membership feature may attract new members and help retain existing ones.
Costco is a dividend-paying stock, too, with a modest recent yield of 0.7%. It's also a solid dividend grower, averaging annual hikes of 12% over the past five years -- and it occasionally offers special dividends, too, every few years. Like Apple, though, it doesn't appear to be bargain-priced at recent levels.
3. Netflix
Then there's Netflix (NASDAQ: NFLX), with a recent market value near $210 billion. The company has been performing well lately, which is largely why the stock has surged more than 60% over the past year (and has averaged 25% annual growth over the past decade).
What has Netflix been doing? Well, it has demonstrated strong pricing power, having successfully increased some of its prices almost twofold over the past decade. It has also introduced a cheaper, ad-supported subscription plan, which has gained some 10 million subscribers in just a few months. And its disallowing of limitless account-sharing has also resulted in many new subscriptions.
Netflix's third quarter featured revenue of $8.5 billion, up 7.8% year over year, and a 10.8% increase in global paid memberships to 247 million. The company pays no dividend, which is typical for companies still investing heavily in growth. Its stock isn't exactly cheap, but it's not as overvalued as it has been in the past, either. Its recent forward P/E of 38 is well below the five-year average of 54.
We all need to be saving and investing in earnest for our retirement, and building a watch list of great companies you'd like to buy into at the right price is a smart investing move.
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 November 20, 2023
Selena Maranjian has positions in Apple, Costco Wholesale, and Netflix. The Motley Fool has positions in and recommends Apple, Costco Wholesale, and Netflix. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) is one of the biggest companies in the world with a recent market value near $3 trillion and a lofty mission: "Apple's more than 100,000 employees are dedicated to making the best products on Earth, and to leaving the world better than we found it." It has built a massive and enviable ecosystem of compatible products across five software platforms -- iOS, iPadOS, macOS, watchOS, and tvOS -- and is always looking to expand more, for instance, into artificial intelligence. With a recent forward-looking price-to-earnings (P/E) ratio of 28.7, well above the five-year average of 24.1, Apple's stock doesn't appear to be a screaming bargain.
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Apple Apple (NASDAQ: AAPL) is one of the biggest companies in the world with a recent market value near $3 trillion and a lofty mission: "Apple's more than 100,000 employees are dedicated to making the best products on Earth, and to leaving the world better than we found it." Costco Costco Wholesale (NASDAQ: COST), with a recent market value north of $260 billion, has grown into one of Earth's biggest retailers -- in part by paying attention to and serving its customers, employees, and shareholders well. The company has been performing well lately, which is largely why the stock has surged more than 60% over the past year (and has averaged 25% annual growth over the past decade).
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Apple Apple (NASDAQ: AAPL) is one of the biggest companies in the world with a recent market value near $3 trillion and a lofty mission: "Apple's more than 100,000 employees are dedicated to making the best products on Earth, and to leaving the world better than we found it." The company has been performing well lately, which is largely why the stock has surged more than 60% over the past year (and has averaged 25% annual growth over the past decade). See the 10 stocks *Stock Advisor returns as of November 20, 2023 Selena Maranjian has positions in Apple, Costco Wholesale, and Netflix.
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Apple Apple (NASDAQ: AAPL) is one of the biggest companies in the world with a recent market value near $3 trillion and a lofty mission: "Apple's more than 100,000 employees are dedicated to making the best products on Earth, and to leaving the world better than we found it." Ideally, though, you don't want to invest in those companies at just any price. The company pays no dividend, which is typical for companies still investing heavily in growth.
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2023-11-27 00:00:00 UTC
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3 Music Streaming Stocks Set to Hit the Right Notes in 2024
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AAPL
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https://www.nasdaq.com/articles/3-music-streaming-stocks-set-to-hit-the-right-notes-in-2024
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
These music streaming stocks should be on your watchlist. What I like about these companies is that their valuations are fair, and many of them have great future prospects. Music streaming stocks are anticipated to rise steadily in the future along with their number of monetized users, thus making them worthy of belonging in your portfolio.
So, if you are in the market to buy the best music streaming stocks for 2024 and beyond, then keep reading. Here are three of the best companies to consider.
Spotify (SPOT)
Source: Kaspars Grinvalds / Shutterstock.com
Spotify (NYSE:SPOT) continues to be a dominant force in the global music streaming market with a vast library of songs, podcasts, and user-generated playlists, giving it a competitive edge over its peers.
The bull case for SPOT is built on a combination of operational efficiency and strategic innovation. The company has reported a significant improvement in profitability, demonstrated by better-than-expected earnings in the third quarter and an operating profit of 32 million euros, a reversal from the previous year’s loss.
New features like AI DJ and AI Voice Translation have fueled Spotify’s growth.
Looking ahead, Spotify’s positive trajectory will continue. The recent performance has reinforced investor confidence, supported by a 26% year-over-year increase in MAUs and sign that the company is on track to exceed 600 million users for the year. This then makes SPOT one of those music streaming stocks to buy.
Apple (AAPL)
Source: sylv1rob1 / Shutterstock.com
Through its service, Apple Music, Apple (NASDAQ:AAPL) is a key competitor in the streaming industry, offering an array of music and exclusive content.
Apple Music has contributed to Apple’s significant financial milestone of surpassing 1 billion paid subscriptions across all its services and apps.
This achievement, which includes subscriptions from Apple-branded offerings like Apple Music and Apple TV+ as well as third-party app services, marks a 150 million increase year over year. In the June 2023 quarter, Apple’s services unit, which Apple Music is part of, saw an 8.2% growth, reaching a revenue of $21.21 billion.
The growth in Apple Music and other services is part of an overarching strategy that offsets softer sales in other areas, like a slight dip in iPhone sales. This then gives investors a strong reason to buy up AAPL shares if they want to buy both an excellent mobile phone and music streaming stock.
Tencent Music Entertainment Group (TME)
Source: Ralf Liebhold / Shutterstock.com
Tencent Music Entertainment Group (NYSE:TME) is a Chinese entertainment platform that has been expanding its user base significantly, showcasing a strong increase in paying users.
There’s good reason to consider adding TME stock to your portfolio. The company reported a notable increase in revenue from its online music services.
This growth has outpaced market estimates, particularly in the company’s online music platform. Furthermore, the revenue from music subscriptions alone saw a 37% year-over-year increase, reaching $399 million. Tencent Music’s advertising services supplement this growth.
Looking forward, the company is investing in artificial intelligence to optimize features and recommendation engines, and there’s an industry-wide push toward higher-resolution streaming, which could further enhance the user experience.
Tencent Music has already made significant improvements to its services, focusing on listening features, recommendation functions, and sound quality.
TME stock is therefore one of those music streaming stocks to buy.
On the date of publication, Matthew Farley did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.
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The post 3 Music Streaming Stocks Set to Hit the Right Notes 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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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Through its service, Apple Music, Apple (NASDAQ:AAPL) is a key competitor in the streaming industry, offering an array of music and exclusive content. This then gives investors a strong reason to buy up AAPL shares if they want to buy both an excellent mobile phone and music streaming stock. The recent performance has reinforced investor confidence, supported by a 26% year-over-year increase in MAUs and sign that the company is on track to exceed 600 million users for the year.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Through its service, Apple Music, Apple (NASDAQ:AAPL) is a key competitor in the streaming industry, offering an array of music and exclusive content. This then gives investors a strong reason to buy up AAPL shares if they want to buy both an excellent mobile phone and music streaming stock. Spotify (SPOT) Source: Kaspars Grinvalds / Shutterstock.com Spotify (NYSE:SPOT) continues to be a dominant force in the global music streaming market with a vast library of songs, podcasts, and user-generated playlists, giving it a competitive edge over its peers.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Through its service, Apple Music, Apple (NASDAQ:AAPL) is a key competitor in the streaming industry, offering an array of music and exclusive content. This then gives investors a strong reason to buy up AAPL shares if they want to buy both an excellent mobile phone and music streaming stock. InvestorPlace - Stock Market News, Stock Advice & Trading Tips These music streaming stocks should be on your watchlist.
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Apple (AAPL) Source: sylv1rob1 / Shutterstock.com Through its service, Apple Music, Apple (NASDAQ:AAPL) is a key competitor in the streaming industry, offering an array of music and exclusive content. This then gives investors a strong reason to buy up AAPL shares if they want to buy both an excellent mobile phone and music streaming stock. Here are three of the best companies to consider.
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2023-11-27 00:00:00 UTC
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Netflix (NFLX) Acquires Kim Kardashian's Comedy The Fifth Wheel
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AAPL
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https://www.nasdaq.com/articles/netflix-nflx-acquires-kim-kardashians-comedy-the-fifth-wheel
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nan
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Netflix NFLX has won the bidding war for upcoming comedy The Fifth Wheel. The package includes Kim Kardashian, Paula Pell and Janine Brito as co-writers and producers. All three — Kim Kardashian, Paula Pell and Janine Brito — are represented by WME.
Kim Kardashian has gained attention for her role in FX's American Horror Story. Paula Pell, a Saturday Night Live veteran, has an extensive background working with Tina Fey on 30 Rock and with Amy Poehler and Judd Apatow. Janine Brito, making her major screenplay debut, has acted in Wine Country and is known for her work on the series GIRLS5Eva.
The logline of The Fifth Wheel is currently under wraps but it features Kim Kardashian playing the eponymous "fifth wheel" alongside a female ensemble cast.
The package was acquired by Niija Kuykendall’s mid-budget film team at Netflix. This acquisition is the first major sale following the settlement of the SAG-AFTRA strike earlier this month. Despite concerns about the impact of the strikes on the market, this bidding war highlights the continued vitality of such competitive auctions as the year comes to an end.
The idea was conceived by Pell and Brito, and after pitching it to Kim Kardashian immediately following the end of a strike, the package hit the market within days. NFLX emerged as the winner, making the winning offer right after Thanksgiving. Kim Kardashian has been actively involved in the selling process, attending each meeting to deliver the pitch.
The company is anticipated to gain from its diversified content portfolio in the near term. For the fourth quarter of 2023, the company forecasts earnings of $2.15 per share, significantly up from 12 cents reported in the year-ago quarter. The Zacks Consensus Estimate for the same is pegged at $2.18 per share, currently higher than the company’s expectation.
Total revenues are anticipated to be $8.69 billion, suggesting growth of 10.7% year over year or 12% on a foreign-exchange neutral basis. The consensus mark for revenues is pegged at $8.7 billion, higher than the company’s expectation and indicating 10.86% growth from the figure reported in the year-ago quarter.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
Expanding Content Portfolio for 2024 to Fend Off Competition
Fans will be pleased to know that shows, such as Emily In Paris, Heartstopper and The Night Agent, will return in 2024. New series like Fool Me Once and Love Is Blind: UK are also scheduled to release in the same year.
Netflix will enter 2024 with the Michelle Yeoh-starring dark action-comedy The Brothers Sun, the eighth season of Queer Eye and Sofi Vergara’s miniseries Griselda. The live-action Avatar: The Last Airbender series will arrive in February, followed by 3 Body Problem.
NFLX has set its upcoming series 3 Body Problem for release on Mar 21, 2024. Based on the international bestselling book trilogy of the same title by Chinese Liu Cixin, the show is described as a thrilling story that redefines sci-fi drama with its layered mysteries and genre-bending high stakes.
Netflix’s The Umbrella Academy will have a big year in 2024 with the release of the fourth and final season on the global streaming service.
Bridgerton season 3 ended up being bumped to 2024 from a rumored late 2023 release, while Emily in Paris season 4 missed the show’s annual December release due to the strikes.
Netflix, a Zacks Rank #3 (Hold) company, has gained 62.6% year to date compared with the Zacks Consumer Discretionary sector’s rise of 12.4% due to its extensive collection of originals. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Netflix has been benefiting from a strong content portfolio amid stiff competition in the streaming market from the likes of Apple AAPL, Disney DIS and Amazon AMZN.
Apple expanded content for the holiday season with the addition of Home for Christmas, a new musical special in which Hannah Waddingham performs several classic songs. For Christmas, AAPL will release new seasonal episodes of family favorites, such as Frog and Toad, Shape Island and The Snoopy Show. A new singalong version of Spirited, starring Will Ferrell and Ryan Reynolds, will be available on Dec 1. The Family Plan, an action comedy, will be released on Dec 15.
Amazon Prime Video provides an extensive selection of high-quality original content and a substantial library of movies and TV shows. Additionally, subscribers have the choice to purchase or rent movies. Its upcoming content includes titles like A Good Person, Fantasy Football and Bye Bye Barry.
Disney's streaming service is a one-stop destination for exclusive movies and series from Disney, Pixar, Marvel, Star Wars and National Geographic. DIS’ upcoming content includes Assembled: The Making of Loki Season 2, Christmas with Walt Disney and The Shepherd.
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.
See This Stock Now for 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
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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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Netflix has been benefiting from a strong content portfolio amid stiff competition in the streaming market from the likes of Apple AAPL, Disney DIS and Amazon AMZN. For Christmas, AAPL will release new seasonal episodes of family favorites, such as Frog and Toad, Shape Island and The Snoopy Show. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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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 Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Netflix has been benefiting from a strong content portfolio amid stiff competition in the streaming market from the likes of Apple AAPL, Disney DIS and Amazon AMZN. For Christmas, AAPL will release new seasonal episodes of family favorites, such as Frog and Toad, Shape Island and The Snoopy Show.
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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 Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Netflix has been benefiting from a strong content portfolio amid stiff competition in the streaming market from the likes of Apple AAPL, Disney DIS and Amazon AMZN. For Christmas, AAPL will release new seasonal episodes of family favorites, such as Frog and Toad, Shape Island and The Snoopy Show.
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Netflix has been benefiting from a strong content portfolio amid stiff competition in the streaming market from the likes of Apple AAPL, Disney DIS and Amazon AMZN. For Christmas, AAPL will release new seasonal episodes of family favorites, such as Frog and Toad, Shape Island and The Snoopy Show. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2023-11-27 00:00:00 UTC
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Company News for Nov 27, 2023
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AAPL
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https://www.nasdaq.com/articles/company-news-for-nov-27-2023
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nan
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Shares of NVIDIA Corporation (NVDA) declined 1.9% following a report that the company will delay the launch of its chip destined for China until next year in order to comply with U.S. export restrictions.
Fisker Inc.’s (FSR) shares jumped 5.2% after the electric vehicle maker announced that it has filed a delayed quarterly after the original report was pushed back earlier this month owing to changes in accounting personnel.
Shares of iRobot Corporation (IRBT) surged 39.1% following a report that Amazon.com, Inc. (AMZN) is on the verge of winning regulatory approval in the EU to go ahead with its $1.4 million acquisition of the company.
Apple Inc.’s (AAPL) fell 0.7% on reports citing data from Counterpoint Research that the company saw a decline in its smartphone sales during the cent Single’s Day in China.
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.
See This Stock Now for 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
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Fisker Inc. (FSR) : Free Stock Analysis Report
iRobot Corporation (IRBT) : 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 Inc.’s (AAPL) fell 0.7% on reports citing data from Counterpoint Research that the company saw a decline in its smartphone sales during the cent Single’s Day in China. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Fisker Inc. (FSR) : Free Stock Analysis Report iRobot Corporation (IRBT) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of NVIDIA Corporation (NVDA) declined 1.9% following a report that the company will delay the launch of its chip destined for China until next year in order to comply with U.S. export restrictions.
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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 NVIDIA Corporation (NVDA) : Free Stock Analysis Report Fisker Inc. (FSR) : Free Stock Analysis Report iRobot Corporation (IRBT) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc.’s (AAPL) fell 0.7% on reports citing data from Counterpoint Research that the company saw a decline in its smartphone sales during the cent Single’s Day in China. Shares of NVIDIA Corporation (NVDA) declined 1.9% following a report that the company will delay the launch of its chip destined for China until next year in order to comply with U.S. export restrictions.
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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 NVIDIA Corporation (NVDA) : Free Stock Analysis Report Fisker Inc. (FSR) : Free Stock Analysis Report iRobot Corporation (IRBT) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple Inc.’s (AAPL) fell 0.7% on reports citing data from Counterpoint Research that the company saw a decline in its smartphone sales during the cent Single’s Day in China. Shares of NVIDIA Corporation (NVDA) declined 1.9% following a report that the company will delay the launch of its chip destined for China until next year in order to comply with U.S. export restrictions.
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Apple Inc.’s (AAPL) fell 0.7% on reports citing data from Counterpoint Research that the company saw a decline in its smartphone sales during the cent Single’s Day in China. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Fisker Inc. (FSR) : Free Stock Analysis Report iRobot Corporation (IRBT) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of NVIDIA Corporation (NVDA) declined 1.9% following a report that the company will delay the launch of its chip destined for China until next year in order to comply with U.S. export restrictions.
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2023-11-27 00:00:00 UTC
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You Don't Have to Pick a Winner in Digital Advertising. Here's Why
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AAPL
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https://www.nasdaq.com/articles/you-dont-have-to-pick-a-winner-in-digital-advertising.-heres-why-0
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The rise of the internet has completely changed the economy. Moreover, the growth of everything digital has altered consumer behavior. We spend a good chunk of our time interacting with online services.
From an investment angle, this has implications for how you position your portfolio. An area to look at that has benefited from secular growth thanks to the advent of the internet is digital advertising. According to Grand View Research, the industry's revenues are expected to increase at a 14% compound annual rate between now and 2030, so it's not too late to get in on the action.
But where to start to find good investment opportunities? I believe a basket approach is a sound strategy to gain exposure to the growth of the digital ad industry, which means buying all the following stocks.
Dominating the ad industry
As one of the leading internet enterprises, Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) spearheaded the digital advertising space. Unsurprisingly, it commands the industry's leading market share.
With essential internet-based properties under its belt, namely google.com and youtube.com, it shouldn't shock people that the web traffic this business attracts creates virtually unlimited opportunities to sell digital ads. In the most recent quarter (Q3 2023, ended Sept. 30), 78% of the company's total revenue was derived from advertising. It's clearly still the major driver of financial results.
Second place in the industry is Meta Platforms (NASDAQ: META). In a similar fashion to Alphabet, Meta owns and operates some incredibly popular apps. Combined, Facebook, Instagram, Messenger, and WhatsApp have a whopping 4 billion monthly active users. The company has monetized all the social activity it facilitates via ads.
It's hard to argue with just how outstanding these businesses are. Although both are investing heavily in artificial intelligence to bolster their competitive positions while also figuring out ways to serve advertising customers better, they are extremely profitable.
Last quarter, Meta's operating margin of 40% was higher than Alphabet's 28%. Nonetheless, they both were stellar.
The stocks also don't carry excessive valuation multiples. As of this writing, Alphabet and Meta shares trade at forward price-to-earnings (P/E) ratios of about 24. This represents only a 20% premium to the overall S&P 500. Investors shouldn't hesitate to buy these stocks.
Image source: Getty Images.
Moving on up
Two other FAANG businesses are also becoming more prominent players in the digital advertising market. And readers are assuredly familiar with them.
In October, Amazon's (NASDAQ: AMZN) website saw nearly 4.2 billion visitors. With such a massive e-commerce marketplace that constantly has so many eyeballs scrolling through it, it's unsurprising that digital ads have become a key revenue generator for the company. In the third quarter, Amazon's ad sales jumped 25% year over year to more than $12 billion. This puts it in third place in the industry, behind Alphabet and Meta.
We also can't forget about Apple (NASDAQ: AAPL) -- the most valuable company in the world -- with a market cap of $3 trillion. The iPhone maker started selling ads in the App Store and News app about seven years ago. It's estimated the business will produce $5.2 billion in ad sales in 2023, up from 135% in 2020.
To be clear, though, Apple's valuation gives me pause. The stock currently trades at a forward P/E ratio of 29. This is a steep price for an enterprise in the mature stages of its lifecycle and lacking the growth opportunities of Alphabet, Meta, and Amazon. However, I can see why some investors would still want to own such a dominant tech giant.
No doubt, buying shares in all four of these companies would give you adequate exposure to the digital advertising market.
10 stocks we like better than Walmart
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, and Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We also can't forget about Apple (NASDAQ: AAPL) -- the most valuable company in the world -- with a market cap of $3 trillion. With essential internet-based properties under its belt, namely google.com and youtube.com, it shouldn't shock people that the web traffic this business attracts creates virtually unlimited opportunities to sell digital ads. Although both are investing heavily in artificial intelligence to bolster their competitive positions while also figuring out ways to serve advertising customers better, they are extremely profitable.
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We also can't forget about Apple (NASDAQ: AAPL) -- the most valuable company in the world -- with a market cap of $3 trillion. Dominating the ad industry As one of the leading internet enterprises, Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) spearheaded the digital advertising space. 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.
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We also can't forget about Apple (NASDAQ: AAPL) -- the most valuable company in the world -- with a market cap of $3 trillion. I believe a basket approach is a sound strategy to gain exposure to the growth of the digital ad industry, which means buying all the following stocks. Dominating the ad industry As one of the leading internet enterprises, Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) spearheaded the digital advertising space.
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We also can't forget about Apple (NASDAQ: AAPL) -- the most valuable company in the world -- with a market cap of $3 trillion. No doubt, buying shares in all four of these companies would give you adequate exposure to the digital advertising market. That's right -- they think these 10 stocks are even better buys.
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2023-11-27 00:00:00 UTC
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3 Compelling Cloud Storage Stocks to Send Your Portfolio Higher
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https://www.nasdaq.com/articles/3-compelling-cloud-storage-stocks-to-send-your-portfolio-higher
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
As someone who works remotely and creates a significant amount of content using Google Drive, I’m reminded daily about the importance of the cloud, cloud storage, and cloud storage stocks.
After my first sentence, you would think that Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) would be at the top of any list I assemble regarding the best cloud storage stocks to buy. And it probably will be.
However, before I do so, I need to find more names of companies making a difference in cloud storage. Note that the emphasis is on cloud storage, not other aspects of the cloud ecosystem.
There are several cloud computing ETFs available that can help with the selection of cloud storage stocks. The only downside is that many of the businesses in these ETFs don’t emphasize cloud storage, and that’s what we’re after.
Despite this negative, I’ll pull my three cloud storage stocks to buy from the First Trust Cloud Computing ETF (NASDAQ:SKYY), the largest of the cloud computing ETFs with $2.7 billion in net assets. Not surprisingly, Alphabet makes the top 10 holdings in seventh position.
Alphabet (GOOG, GOOGL)
Source: IgorGolovniov / Shutterstock.com
While Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) are excellent companies, I have a different connection with them regarding cloud storage than I do with Google and Alphabet. So, it makes my list.
As I went through several 10-K’s to determine a cloud computing company’s activities in cloud storage, I realized that Google makes money from me in many ways, not just from the cloud storage I use.
Excluding YouTube ads, its Other Bets, and hedging gains, Alphabet’s Google business accounted for 89% of its 2022 revenue of $282.8 billion. However, if you include YouTube ads in the Google revenue, the percentage increases to a tad shy of 99%, or $279.8 billion.
Alphabet divides Google into Google Services (91% of Google revenue) and Google Cloud (9%). I use both.
For Google Services, I use Chrome most of the time — it’s terrible with SEC documents for some reason, so I’ll use Opera for that — I jump between Google and Apple Maps, Google’s search engine, YouTube, Gmail, and Google Drive.
For Google Cloud, I’ve been using Google Workspace, a paid version of Google Drive with collaboration and conferencing capabilities and a few other things added in for good measure. As a freelancer, it’s a very reasonable price for complete mobility.
There is no question that Google Services is what drives the Alphabet bus. In 2022, its operating margin was 34.2%, 440 basis points higher than Apple’s (NASDAQ:AAPL) most recent fiscal year.
In 2023, Google Cloud will generate a positive operating profit. For the nine months ending September 30, it was $852 million on $23.9 billion in revenue, suggesting the best days for Alphabet remain on the horizon.
Dropbox (DBX)
Source: Blackboard / Shutterstock
Thanks to its performance in 2023, it’s up 24% year-to-date, Dropbox (NASDAQ:DBX) stock is once more trading above its March 2018 IPO price of $21. It went public with such fanfare and potential.
“The company sold 36 million shares, and a source told CNBC that the offering was 25 times oversubscribed. Dropbox, which raised $756 million in the largest tech IPO since Snap last year, will trade on the Nasdaq under the ticker ‘DBX,’” CNBC wrote in 2018.
It never seemed to live up to the expectations. But a cloud storage company it is.
On Nov. 17, Dropbox announced it was collaborating with Nvidia (NASDAQ:NVDA) to help millions of its Dropbox customers use generative AI to improve workflows across their cloud content.
“AI has the potential to offload routine tasks, unlock our creativity, and help us do more meaningful work. We’re excited to partner with NVIDIA and leverage their technology in new ways to deliver more personalized, AI-powered experiences to our customers,” stated Drew Houston, Dropbox CEO and co-founder.
Dropbox’s biggest growth opportunity is to increase the number of paying users. Although it has more than 700 million registered users, only 18.2 million are paying customers. AI could be the solution.
Let’s say it converted 10% of its registered users to Dropbox’s Essentials plan — 312 Canadian dollars ($228) billed yearly — that’s nearly $16 billion in annual revenue [700M * 10% * $228], or about 7x its 2022 revenue of $2.33 billion.
So far, in 2023, it is making inroads.
In Q3 2023, it had 18.17 million paying users, 3.5% higher than a year earlier, with an average revenue per paying user of $138.71, 3.3% higher than Q3 2022.
Will AI move the needle for Dropbox? It could be.
Shopify (SHOP)
Source: Burdun Iliya / Shutterstock.com
While Shopify (NYSE:SHOP) doesn’t qualify as a pure-play cloud storage company, the e-commerce platform owes its livelihood to Google Cloud. Because of this cloud infrastructure, the company’s software provides merchants of all sizes with the tools to run their online businesses globally.
Earlier this year, Shopify announced an enhanced relationship with Google that would see it use Google’s Discovery AI solutions for its enterprise customers.
“We know that 69% of consumers in the US alone say a store’s search is the most common way they shop, but only around 10% are getting consistently accurate search results. It’s a massive problem that we’re excited to help enterprise retailers solve through our continued work with Google,” stated Shopify President Harley Finkelstein.
How big a problem is search abandonment? A Google-commissioned Harris Poll survey suggests the loss of orders through poor search costs merchants an estimated $2 trillion annually. That’s bigger than Alphabet’s market capitalization. ‘
In early November, Shopify reported Q3 2023 results. They included revenue of $1.71 billion in the quarter, $40 million higher than the analyst estimate. On the bottom line, it earned 24 cents a share, 10 cents higher than the consensus.
More importantly, its guidance for the fourth quarter and the entire year were very positive. It expects revenue growth in 2023 to be in the mid-twenties on a percentage basis over 2022, with high-teens revenue growth in the fourth quarter.
Shopify stock gained 22% on the news. It’s up another 19% since.
With free cash flow reaching 16% of revenue in the third quarter, its financial performance will continue to drive its shares higher in 2024.
On the date of publication, Will Ashworth 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.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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The post 3 Compelling Cloud Storage Stocks to Send Your Portfolio Higher 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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In 2022, its operating margin was 34.2%, 440 basis points higher than Apple’s (NASDAQ:AAPL) most recent fiscal year. Dropbox, which raised $756 million in the largest tech IPO since Snap last year, will trade on the Nasdaq under the ticker ‘DBX,’” CNBC wrote in 2018. We’re excited to partner with NVIDIA and leverage their technology in new ways to deliver more personalized, AI-powered experiences to our customers,” stated Drew Houston, Dropbox CEO and co-founder.
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In 2022, its operating margin was 34.2%, 440 basis points higher than Apple’s (NASDAQ:AAPL) most recent fiscal year. Despite this negative, I’ll pull my three cloud storage stocks to buy from the First Trust Cloud Computing ETF (NASDAQ:SKYY), the largest of the cloud computing ETFs with $2.7 billion in net assets. Alphabet divides Google into Google Services (91% of Google revenue) and Google Cloud (9%).
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In 2022, its operating margin was 34.2%, 440 basis points higher than Apple’s (NASDAQ:AAPL) most recent fiscal year. InvestorPlace - Stock Market News, Stock Advice & Trading Tips As someone who works remotely and creates a significant amount of content using Google Drive, I’m reminded daily about the importance of the cloud, cloud storage, and cloud storage stocks. As I went through several 10-K’s to determine a cloud computing company’s activities in cloud storage, I realized that Google makes money from me in many ways, not just from the cloud storage I use.
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In 2022, its operating margin was 34.2%, 440 basis points higher than Apple’s (NASDAQ:AAPL) most recent fiscal year. As I went through several 10-K’s to determine a cloud computing company’s activities in cloud storage, I realized that Google makes money from me in many ways, not just from the cloud storage I use. But a cloud storage company it is.
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How Long Can Wall Street Overlook This Breakout Penny Stock?
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https://www.nasdaq.com/articles/how-long-can-wall-street-overlook-this-breakout-penny-stock
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Investing in penny stocks is a high-risk, high-reward proposition. Generally, stocks with share prices below $5 are defined as penny stocks. For investors with a higher risk appetite who like a bargain, investing in cheap penny stocks can be a tempting way to speculate on potentially outsized returns.
In fact, shares of several big tech companies, including Apple (AAPL) and Amazon (AMZN), were priced below $5 when they first went public on the stock market. That said, penny stocks have also gained a reputation for burning significant investor wealth.
Keeping these factors in mind, let’s see if it makes sense to invest in breakout penny stock Safety Shot (SHOT) right now.
www.barchart.com
An Overview of Safety Shot
Valued at $99.6 million by market cap, Safety Shot is the first patented beverage globally that reduces blood alcohol content (BAC) and boosts clarity. A wellness and functional beverage company, Safety Shot is engaged in the research and development of OTC (over-the-counter) products and intellectual property.
Its product pipeline includes:
Photocil - To address psoriasis and vertigo
JW-700 - To treat hair loss
JW-500 - A woman-oriented sexual wellness product
NoStingz - A jellyfish sting prevention sunscreen
JW-110 - To treat atopic eczema
Previously known as Jupiter Wellness, Safety Shot sells its products through third-party retail stores and channel partners. It also aims to unlock value through the spin-out of its legacy assets from Jupiter Wellness.
In the last 12 months, Safety Shot has reported revenue of $6.83 million with a gross profit of $1.36 million and an operating loss of $11.2 million.
Short Sellers Target SHOT
Shares of Safety Shot have surged over 400% year-to-date, but recently came under pressure after a report from short sellers Capybara Research. In response, Safety Shot released a press statement accusing short sellers of publishing “malicious, defamatory, inaccurate articles” about Safety Shot and its management, forcing investors out of their holdings so they could buy shares at a lower cost and cover short positions.
By the numbers, there are 1.8 million SHOT shares sold short, as of the Oct. 31 reporting period. At the stock's average daily trading volume, it would take more than three days to cover these shorted shares.
A Billion-Dollar Market Opportunity
Safety Shot expects to launch its patented beverage in December 2023 by marketing the product on Amazon. The company has forecast the functional beverage market at $62 billion and aims to gain market share here.
SHOT estimates the hangover remedies market at $1.56 billion, which is expected to grow by 14.6% annually through 2028. Soon after its launch on Amazon, SHOT plans to focus on B2B (business-to-business) sales of its products to distributors, retailers, bars, and restaurants in Q1 of 2024. It seems SHOT is just weeks away from a potential liftoff in revenue growth.
Meanwhile, despite the massive breakout in the share price, there are no analysts offering coverage of Safety Shot. While SHOT is best reserved for those with robust risk appetites for now, any new ratings or legitimate analyst attention from Wall Street could potentially draw some new buyers to the wellness-focused penny stock in the near term.
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In fact, shares of several big tech companies, including Apple (AAPL) and Amazon (AMZN), were priced below $5 when they first went public on the stock market. For investors with a higher risk appetite who like a bargain, investing in cheap penny stocks can be a tempting way to speculate on potentially outsized returns. While SHOT is best reserved for those with robust risk appetites for now, any new ratings or legitimate analyst attention from Wall Street could potentially draw some new buyers to the wellness-focused penny stock in the near term.
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In fact, shares of several big tech companies, including Apple (AAPL) and Amazon (AMZN), were priced below $5 when they first went public on the stock market. Keeping these factors in mind, let’s see if it makes sense to invest in breakout penny stock Safety Shot (SHOT) right now. A Billion-Dollar Market Opportunity Safety Shot expects to launch its patented beverage in December 2023 by marketing the product on Amazon.
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In fact, shares of several big tech companies, including Apple (AAPL) and Amazon (AMZN), were priced below $5 when they first went public on the stock market. www.barchart.com An Overview of Safety Shot Valued at $99.6 million by market cap, Safety Shot is the first patented beverage globally that reduces blood alcohol content (BAC) and boosts clarity. Short Sellers Target SHOT Shares of Safety Shot have surged over 400% year-to-date, but recently came under pressure after a report from short sellers Capybara Research.
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In fact, shares of several big tech companies, including Apple (AAPL) and Amazon (AMZN), were priced below $5 when they first went public on the stock market. Generally, stocks with share prices below $5 are defined as penny stocks. A Billion-Dollar Market Opportunity Safety Shot expects to launch its patented beverage in December 2023 by marketing the product on Amazon.
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2023-11-27 00:00:00 UTC
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5 Stocks You Can Confidently Invest $500 In Right Now
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https://www.nasdaq.com/articles/5-stocks-you-can-confidently-invest-%24500-in-right-now-12
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Investing always carries a bit of risk, but you can bring that risk down to an absolute minimum by taking one specific move: and that's selecting a core group of solid companies to hold onto for the long term. These players should have a track record of earnings growth, an impressive market position, and prospects that ensure earnings strength well into the future.
In many cases, these companies will be familiar names, selling products you use every day. But you also may discover new-to-you players in fields -- such as biotech -- that you may not connect with on a daily basis. You can buy these stocks with confidence, knowing that over time, the companies have proven themselves -- and may continue winning. Here are five you can confidently invest $500 in right now.
Image source: Getty Images.
1. Amazon
Amazon (NASDAQ: AMZN) is the leader in two markets growing in the double-digits: e-commerce and cloud computing. They've helped the company grow earnings into the billions of dollars and become a household name worldwide.
This growth is far from over. Amazon recently improved its cost structure, which should pay off over time. The company's moves in e-commerce include making its fulfillment process more efficient, and in cloud computing include major investments in artificial intelligence (AI).
So, e-commerce customers receive packages more quickly, and cloud customers can launch generative AI projects on Amazon Web Services' platforms. All of this should keep customers coming back, and help Amazon stay in the lead.
It's also encouraging to see that, after a difficult time last year, Amazon's earnings have recovered, with the company reporting gains in revenue, net income, free cash flow and more in the most recent quarter.
2. Apple
When you think of Apple (NASDAQ: AAPL) you probably think of the iPhone or the Apple Watch. Those and other products contribute significantly to revenue, and thanks to Apple's moat, or competitive advantage, this should continue. Apple has built such a strong brand that fans stick with it, regardless of the products' price tags.
But there's even more good news: Apple also has created a billion-dollar services business, generating recurrent revenue thanks to all of the people out there using Apple devices. Services are many, from digital content to data storage, and in the recent quarter, services revenue reached a record high.
Finally, one last bit of good news: Apple's services are highly profitable for the company, with a gross margin of more than 70% in the quarter, compared with a margin of 36% for products. So, this business may be Apple's next big revenue driver.
Image source: Getty Images.
3. Coca-Cola
You'll love Coca-Cola (NYSE: KO) for two reasons: its brand strength that powers steady earnings gains and its dividend growth.
Let's talk earnings first. Thanks to well-known products like its eponymous beverage and others like Dasani water and Minute Maid juices, customers keep coming back even during difficult economic times such as today. Revenue has continued to rise in recent quarters, even through price increases, and Coca-Cola has gained more and more market share.
As for the dividend, the company has increased it for more than 50 years, putting Coca-Cola on the list of Dividend Kings. This shows dividend growth is important to the drinks giant, so it's likely to continue with this policy -- and that means you can expect more and more passive income as the years go by.
4. Vertex Pharmaceuticals
Vertex Pharmaceuticals (NASDAQ: VRTX) is the global leader in cystic fibrosis (CF) treatment, and that has brought the company billions of dollars in earnings over the past several years. The biotech has the products, patents, and pipeline to keep that position until at least the late 2030s.
On top of that, Vertex is expanding into other treatment areas and even recently scored a regulatory win -- the U.K. delivered the first ever authorization for a treatment using CRISPR gene editing techniques when it gave the nod to Vertex's candidate for blood disorders. The company now awaits decisions in the U.S. Vertex also considers its candidate for the very common problem of pain as a near-term launch opportunity -- that candidate is involved in phase 3 trials.
So, thanks to ongoing dominance in CF and successful new programs, Vertex's growth story should continue over the long term.
5. Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) recently made a very interesting move: It spun off its consumer health business, the unit that made J&J a household name, into a separate entity. But this actually was a wise thing to do since consumer health had been a drag on growth -- and now J&J plans to devote its resources to its higher-growth businesses of pharmaceuticals and medtech.
Pharma and medtech adjusted operational sales climbed more than 8% (excluding the coronavirus vaccine) and 6%, respectively, in the most recent quarter. And more than 70% of J&J's sales generally come from a No. 1 or 2 market share position. The company's vast portfolio of products as well as its deep pipeline should keep the growth going.
Finally, you'll also want to get in on J&J for its dividend payments. Like Coca-Cola, it's a Dividend King, meaning it's a top stock you can count on for passive income growth over time.
10 stocks we like better than Amazon
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon 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 20, 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 Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Amazon, Apple, and Vertex Pharmaceuticals. The Motley Fool recommends Johnson & Johnson 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 When you think of Apple (NASDAQ: AAPL) you probably think of the iPhone or the Apple Watch. It's also encouraging to see that, after a difficult time last year, Amazon's earnings have recovered, with the company reporting gains in revenue, net income, free cash flow and more in the most recent quarter. Thanks to well-known products like its eponymous beverage and others like Dasani water and Minute Maid juices, customers keep coming back even during difficult economic times such as today.
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Apple When you think of Apple (NASDAQ: AAPL) you probably think of the iPhone or the Apple Watch. Vertex Pharmaceuticals Vertex Pharmaceuticals (NASDAQ: VRTX) is the global leader in cystic fibrosis (CF) treatment, and that has brought the company billions of dollars in earnings over the past several years. Johnson & Johnson Johnson & Johnson (NYSE: JNJ) recently made a very interesting move: It spun off its consumer health business, the unit that made J&J a household name, into a separate entity.
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Apple When you think of Apple (NASDAQ: AAPL) you probably think of the iPhone or the Apple Watch. It's also encouraging to see that, after a difficult time last year, Amazon's earnings have recovered, with the company reporting gains in revenue, net income, free cash flow and more in the most recent quarter. Vertex Pharmaceuticals Vertex Pharmaceuticals (NASDAQ: VRTX) is the global leader in cystic fibrosis (CF) treatment, and that has brought the company billions of dollars in earnings over the past several years.
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Apple When you think of Apple (NASDAQ: AAPL) you probably think of the iPhone or the Apple Watch. Revenue has continued to rise in recent quarters, even through price increases, and Coca-Cola has gained more and more market share. Like Coca-Cola, it's a Dividend King, meaning it's a top stock you can count on for passive income growth over time.
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2023-11-27 00:00:00 UTC
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3 FAANG Stocks Billionaires Are Absolutely Piling Into
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https://www.nasdaq.com/articles/3-faang-stocks-billionaires-are-absolutely-piling-into
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Roughly two weeks ago marked one of the most important data releases of the quarter -- and no, I don't mean the monthly inflation report.
Following the end of a quarter, institutional money managers with at least $100 million in assets under management have 45 calendar days to file Form 13F with the Securities and Exchange Commission. A 13F is effectively a snapshot of the trades Wall Street's brightest and most-successful money managers made during the previous quarter (in this instance, the September-ended quarter).
The latest 13Fs are particularly intriguing with regard to the FAANG stocks.
Image source: Getty Images.
By "FAANG," I'm referring to:
Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META)
Amazon (NASDAQ: AMZN)
Apple (NASDAQ: AAPL)
Netflix (NASDAQ: NFLX)
Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)
Wall Street's eyes are squarely on the FAANG stocks for two key reasons: they're industry leaders with sustained competitive advantages and/or moats, and they're outperformers.
All five of these businesses possess well-defined competitive edges:
Meta owns four of the most-popular social media sites on the planet (Facebook, Instagram, WhatsApp, and Facebook Messenger) and its family of apps attracted nearly 4 billion unique monthly visitors during the third quarter.
Amazon's online marketplace accounts for nearly 40% of U.S. online retail sales. Meanwhile, Amazon Web Services (AWS) is the world's leading cloud infrastructure service provider by market share.
Apple's iPhone is responsible for more than half of all U.S. smartphone market share. It also sports the most robust share repurchase program of all publicly traded companies.
Netflix is the undisputed leader in domestic and international streaming market share. Further, no streaming company comes close to its library of original shows and movies.
Alphabet's Google is practically a monopoly in worldwide internet search. It's also the company behind Google Cloud, the global No. 3 cloud infrastructure service platform.
These sustained advantages are what have allowed the FAANGs to lead the stock market higher for much of the past decade. Therefore, knowing how billionaires are treating these stocks within their respective funds can be important.
Based on the latest round of 13Fs, billionaires absolutely piled into three FAANG stocks.
Amazon
Arguably the standout buy of the third quarter among the FAANGs was Amazon. A total of 10 billionaires piled into the authority in e-commerce, including (total shares purchased in parenthesis):
Jeff Yass of Susquehanna International (5,042,696 shares)
Ole Andreas Halvorsen of Viking Global investors (4,348,680 shares)
Steven Cohen of Point72 Asset Management (1,171,081 shares)
David Siegel and John Overdeck of Two Sigma Investments (883,205 shares)
Ken Fisher of Fisher Asset Management (665,738 shares)
David Tepper of Appaloosa Management (587,500 shares)
Dan Loeb of Third Point (580,00 shares)
Stephen Mandel of Lone Pine Capital (569,245 shares)
Chase Coleman of Tiger Global Management (239,760 shares)
One of the likelier reasons for billionaires to be so bullish on Amazon is AWS. Despite its year-over-year growth tapering to 12% during the September-ended quarter, AWS still holds a remarkable 31% share of global cloud infrastructure service spending, based on a third-quarter estimate from Canalys. Since cloud margins are many multiples higher than the margins associated with online retail sales, AWS regularly accounts for the lion's share of Amazon's operating income.
Other high-margin ancillary operating segments may be fueling billionaire interest in Amazon as well. In particular, Amazon's advertising services segment has stood out as a top-performer in a challenging ad environment. Sales have grown by no less than 21% on a currency-neutral, year-over-year basis over the past two years. Since Amazon attracts more than 2 billion visitors to its site each month, it's a logical go-to for merchants. Ultimately, this is fueling the company's ad-pricing power.
Amazon's valuation is also historically inexpensive. Current expectations call for Amazon to more than triple its operating cash flow between 2022 and 2026. After closing out every year of the 2010s between 23 and 37 times its cash flow, investors have the opportunity to pick up shares right now for less than 13 times consensus estimated cash flow in 2024.
Apple
A second FAANG stock billionaires piled into during the third quarter is tech stock Apple. A total of six billionaires added to their funds' existing positions, including (total shares purchased in parenthesis):
Jeff Yass of Susquehanna International (5,376,743 shares)
Ken Griffin of Citadel Advisors (3,381,231 shares)
Israel Englander of Millennium Management (1,833,484 shares)
Ken Fisher of Fisher Asset Management (867,036 shares)
David Siegel and John Overdeck of Two Sigma Investments (256,181 shares)
If you're wondering what drew a half-dozen billionaires to the largest publicly traded company in the U.S. by market cap, look no further than its innovation.
Since introducing a 5G-capable version of its iPhone during the fourth quarter of 2020, Apple has maintained roughly half of U.S. smartphone market share.
However, Apple isn't satisfied just being a products powerhouse. Although it's not abandoning the physical devices that brought it fame (iPhone, iPad, and Mac), it's steadily evolving into a platforms company. CEO Tim Cook is spearheading a transition that has Apple focused on subscription services. Subscriptions generate delectable margins and should help smooth out the company's sales fluctuations during major iPhone replacement cycles.
On the other hand, Apple is historically pricey. It's currently trading at 29 times fiscal 2024 earnings (Apple's fiscal 2024 will end on Sept. 28, 2024), which is at the upper bound of its historic forward-year earnings range.
What makes its valuation especially egregious is that Apple's sales declined in fiscal 2023 -- and that was with the help of above-average inflation as a tailwind. Given tepid demand at the moment for all of the company's physical products, a fair argument can be made that Apple isn't a good value.
Image source: Getty Images.
Alphabet
The third FAANG stock billionaires are absolutely piling into is Alphabet, the parent company of Google, streaming platform YouTube, and autonomous vehicle company Waymo, among others. All told, nine billionaire investors purchased shares of Alphabet's Class A stock (GOOGL) during the September-ended quarter, including (total shares bought in parenthesis):
Stephen Mandel of Lone Pine Capital (3,113,001 shares)
Bill Ackman of Pershing Square Capital Management (2,169,824 shares)
Chase Coleman of Tiger Global Management (1,523,000 shares)
Ken Griffin of Citadel Advisors (1,498,213 shares)
David Siegel and John Overdeck of Two Sigma Investments (1,195,541 shares)
Ken Fisher of Fisher Asset Management (1,023,535 shares)
Israel Englander of Millennium Management (602,822 shares)
Steven Cohen of Point72 Asset Management (544,495 shares)
The beauty of Alphabet's operating model, and the likely reason most of these nine billionaires are more than happy to scoop up shares, is its dominance in internet search. Google comprised 91.6% of global internet search share in October. What's more, Google hasn't held lower than a 90% share of worldwide monthly search since March 2015. Being the undisputed leader in internet search gives the company exceptional ad-pricing power.
Beyond this cash flow foundation, billionaires are probably enamored with Alphabet's burgeoning cloud operations. Google Cloud accounted for 10% of global cloud infrastructure service spend during the third quarter. More importantly, this segment has delivered three consecutive quarters of operating income following years of losses. The juicy margins associated with cloud services suggest Google Cloud could become a major generator of cash flow for Alphabet within the next couple of years.
Alphabet's valuation is the other key selling point that very likely enticed billionaires to buy. Shares can be purchased right now for approximately 14 times forward-year cash flow, which is notably lower than the multiple of 18 times cash flow Alphabet's Class A shares have traded at over the previous five years.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Sean Williams has positions in Alphabet, Amazon, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, and Netflix. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By "FAANG," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Amazon (NASDAQ: AMZN) Apple (NASDAQ: AAPL) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Wall Street's eyes are squarely on the FAANG stocks for two key reasons: they're industry leaders with sustained competitive advantages and/or moats, and they're outperformers. Roughly two weeks ago marked one of the most important data releases of the quarter -- and no, I don't mean the monthly inflation report. Despite its year-over-year growth tapering to 12% during the September-ended quarter, AWS still holds a remarkable 31% share of global cloud infrastructure service spending, based on a third-quarter estimate from Canalys.
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By "FAANG," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Amazon (NASDAQ: AMZN) Apple (NASDAQ: AAPL) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Wall Street's eyes are squarely on the FAANG stocks for two key reasons: they're industry leaders with sustained competitive advantages and/or moats, and they're outperformers. A total of 10 billionaires piled into the authority in e-commerce, including (total shares purchased in parenthesis): Jeff Yass of Susquehanna International (5,042,696 shares) Ole Andreas Halvorsen of Viking Global investors (4,348,680 shares) Steven Cohen of Point72 Asset Management (1,171,081 shares) David Siegel and John Overdeck of Two Sigma Investments (883,205 shares) Ken Fisher of Fisher Asset Management (665,738 shares) David Tepper of Appaloosa Management (587,500 shares) Dan Loeb of Third Point (580,00 shares) Stephen Mandel of Lone Pine Capital (569,245 shares) Chase Coleman of Tiger Global Management (239,760 shares) One of the likelier reasons for billionaires to be so bullish on Amazon is AWS. A total of six billionaires added to their funds' existing positions, including (total shares purchased in parenthesis): Jeff Yass of Susquehanna International (5,376,743 shares) Ken Griffin of Citadel Advisors (3,381,231 shares) Israel Englander of Millennium Management (1,833,484 shares) Ken Fisher of Fisher Asset Management (867,036 shares) David Siegel and John Overdeck of Two Sigma Investments (256,181 shares) If you're wondering what drew a half-dozen billionaires to the largest publicly traded company in the U.S. by market cap, look no further than its innovation.
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By "FAANG," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Amazon (NASDAQ: AMZN) Apple (NASDAQ: AAPL) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Wall Street's eyes are squarely on the FAANG stocks for two key reasons: they're industry leaders with sustained competitive advantages and/or moats, and they're outperformers. A total of 10 billionaires piled into the authority in e-commerce, including (total shares purchased in parenthesis): Jeff Yass of Susquehanna International (5,042,696 shares) Ole Andreas Halvorsen of Viking Global investors (4,348,680 shares) Steven Cohen of Point72 Asset Management (1,171,081 shares) David Siegel and John Overdeck of Two Sigma Investments (883,205 shares) Ken Fisher of Fisher Asset Management (665,738 shares) David Tepper of Appaloosa Management (587,500 shares) Dan Loeb of Third Point (580,00 shares) Stephen Mandel of Lone Pine Capital (569,245 shares) Chase Coleman of Tiger Global Management (239,760 shares) One of the likelier reasons for billionaires to be so bullish on Amazon is AWS. A total of six billionaires added to their funds' existing positions, including (total shares purchased in parenthesis): Jeff Yass of Susquehanna International (5,376,743 shares) Ken Griffin of Citadel Advisors (3,381,231 shares) Israel Englander of Millennium Management (1,833,484 shares) Ken Fisher of Fisher Asset Management (867,036 shares) David Siegel and John Overdeck of Two Sigma Investments (256,181 shares) If you're wondering what drew a half-dozen billionaires to the largest publicly traded company in the U.S. by market cap, look no further than its innovation.
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By "FAANG," I'm referring to: Facebook, which is now a subsidiary of Meta Platforms (NASDAQ: META) Amazon (NASDAQ: AMZN) Apple (NASDAQ: AAPL) Netflix (NASDAQ: NFLX) Google, which is now a subsidiary of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) Wall Street's eyes are squarely on the FAANG stocks for two key reasons: they're industry leaders with sustained competitive advantages and/or moats, and they're outperformers. It's also the company behind Google Cloud, the global No. Apple A second FAANG stock billionaires piled into during the third quarter is tech stock Apple.
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12378.0
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2023-11-27 00:00:00 UTC
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Should Vanguard Russell 1000 Growth ETF (VONG) Be on Your Investing Radar?
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AAPL
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https://www.nasdaq.com/articles/should-vanguard-russell-1000-growth-etf-vong-be-on-your-investing-radar-10
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nan
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nan
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The Vanguard Russell 1000 Growth ETF (VONG) was launched on 09/22/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
The fund is sponsored by Vanguard. It has amassed assets over $15.39 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
Why Large Cap Growth
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Something to keep in mind is the higher level of volatility that is affiliated with growth stocks. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.71%.
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 to the Information Technology sector--about 44.10% of the portfolio. Consumer Discretionary and Telecom round out the top three.
Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.08% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
The top 10 holdings account for about 51.05% of total assets under management.
Performance and Risk
VONG seeks to match the performance of the Russell 1000 Growth Index before fees and expenses. The Russell 1000 Growth Index measures the performance of large-capitalization growth stocks in the United States.
The ETF has gained about 36.50% so far this year and is up roughly 27.98% in the last one year (as of 11/27/2023). In the past 52-week period, it has traded between $54.03 and $74.94.
The ETF has a beta of 1.06 and standard deviation of 22.05% for the trailing three-year period, making it a medium risk choice in the space. With about 444 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Russell 1000 Growth 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, VONG is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.
The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $98.91 billion in assets, Invesco QQQ has $221.75 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Vanguard Russell 1000 Growth ETF (VONG): 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
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Growth ETF (VUG): 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 13.08% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Russell 1000 Growth ETF (VONG): 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 Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $15.39 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.
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Click to get this free report Vanguard Russell 1000 Growth ETF (VONG): 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 Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.08% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). The Vanguard Russell 1000 Growth ETF (VONG) was launched on 09/22/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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Click to get this free report Vanguard Russell 1000 Growth ETF (VONG): 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 Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.08% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). The Vanguard Russell 1000 Growth ETF (VONG) was launched on 09/22/2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.
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Looking at individual holdings, Apple Inc. (AAPL) accounts for about 13.08% of total assets, followed by Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN). Click to get this free report Vanguard Russell 1000 Growth ETF (VONG): 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 Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research Reports To read this article on Zacks.com click here. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.
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12379.0
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2023-11-27 00:00:00 UTC
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HEDGE FLOW -Hedge fund party in tech stocks begins to wane, Goldman Sachs says
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AAPL
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https://www.nasdaq.com/articles/hedge-flow-hedge-fund-party-in-tech-stocks-begins-to-wane-goldman-sachs-says
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nan
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By Nell Mackenzie
LONDON, Nov 27 (Reuters) - Hedge funds sold the largest volume of U.S. tech and media stocks seen since July in the week to Nov. 24, Goldman Sachs said GS.N in a prime brokerage note to clients on Friday, a signal that the popularity of these stocks may be fading.
Crowding into tech stocks, particularly the so-called "Magnificent 7", which includes Apple AAPL.O, Amazon AMZN.O and Nvidia NVDA.O, had reached the most intense that Goldman Sachs has seen in 22 years, the bank said earlier last week.
Traders ditched both long and short bets on software and interactive media companies, while exiting long bets on sellers of semi-conductor equipment.
A long bet is essentially a position that the price of an asset will rally.
Big investors and advisers, including Bill Gross, Mohamed El-Erian and Ryan Israel, chief investment officer of Bill Ackman's Pershing Square Capital Management, told Reuters this month that a calming in bond markets and the expectations of a pause in US rate hikes might not be enough to lift tech stocks and asset prices, generally.
Technology, media, and telecom stocks make up 30.2% of total U.S. single stock net exposure, down from a year high in late October of 35.9%, the bank said without giving an exact October date.
The most popular tech stocks have been "priced for perfection" but a "reckoning will come", Amundi's chief investment officer Vincent Mortier said last week.
(Reporting by Nell Mackenzie; Editing by Dhara Ranasinghe and Barbara Lewis)
((Nell.Mackenzie@thomsonreuters.com; https://twitter.com/nellmooney;))
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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Crowding into tech stocks, particularly the so-called "Magnificent 7", which includes Apple AAPL.O, Amazon AMZN.O and Nvidia NVDA.O, had reached the most intense that Goldman Sachs has seen in 22 years, the bank said earlier last week. Big investors and advisers, including Bill Gross, Mohamed El-Erian and Ryan Israel, chief investment officer of Bill Ackman's Pershing Square Capital Management, told Reuters this month that a calming in bond markets and the expectations of a pause in US rate hikes might not be enough to lift tech stocks and asset prices, generally. The most popular tech stocks have been "priced for perfection" but a "reckoning will come", Amundi's chief investment officer Vincent Mortier said last week.
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Crowding into tech stocks, particularly the so-called "Magnificent 7", which includes Apple AAPL.O, Amazon AMZN.O and Nvidia NVDA.O, had reached the most intense that Goldman Sachs has seen in 22 years, the bank said earlier last week. By Nell Mackenzie LONDON, Nov 27 (Reuters) - Hedge funds sold the largest volume of U.S. tech and media stocks seen since July in the week to Nov. 24, Goldman Sachs said GS.N in a prime brokerage note to clients on Friday, a signal that the popularity of these stocks may be fading. Big investors and advisers, including Bill Gross, Mohamed El-Erian and Ryan Israel, chief investment officer of Bill Ackman's Pershing Square Capital Management, told Reuters this month that a calming in bond markets and the expectations of a pause in US rate hikes might not be enough to lift tech stocks and asset prices, generally.
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Crowding into tech stocks, particularly the so-called "Magnificent 7", which includes Apple AAPL.O, Amazon AMZN.O and Nvidia NVDA.O, had reached the most intense that Goldman Sachs has seen in 22 years, the bank said earlier last week. By Nell Mackenzie LONDON, Nov 27 (Reuters) - Hedge funds sold the largest volume of U.S. tech and media stocks seen since July in the week to Nov. 24, Goldman Sachs said GS.N in a prime brokerage note to clients on Friday, a signal that the popularity of these stocks may be fading. Big investors and advisers, including Bill Gross, Mohamed El-Erian and Ryan Israel, chief investment officer of Bill Ackman's Pershing Square Capital Management, told Reuters this month that a calming in bond markets and the expectations of a pause in US rate hikes might not be enough to lift tech stocks and asset prices, generally.
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Crowding into tech stocks, particularly the so-called "Magnificent 7", which includes Apple AAPL.O, Amazon AMZN.O and Nvidia NVDA.O, had reached the most intense that Goldman Sachs has seen in 22 years, the bank said earlier last week. By Nell Mackenzie LONDON, Nov 27 (Reuters) - Hedge funds sold the largest volume of U.S. tech and media stocks seen since July in the week to Nov. 24, Goldman Sachs said GS.N in a prime brokerage note to clients on Friday, a signal that the popularity of these stocks may be fading. Traders ditched both long and short bets on software and interactive media companies, while exiting long bets on sellers of semi-conductor equipment.
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12380.0
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2023-11-26 00:00:00 UTC
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Australian regulator calls for new competition laws for digital platforms
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AAPL
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https://www.nasdaq.com/articles/australian-regulator-calls-for-new-competition-laws-for-digital-platforms
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nan
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nan
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Adds details on concerns raised by ACCC in paragraphs 6-8
Nov 27 (Reuters) - Australia's competition watchdog said on Monday new competition laws were required in response to the rapid expansion of digital platforms such as Amazon AMZN.O, Apple AAPL.O, Google GOOGL.O, Meta META.O and Microsoft MSFT.O in the country.
The Australian Competition and Consumer Commission (ACCC) in its latest report for the Digital Platform Services Inquiry raised concerns that expansion of these platforms has increased the risk of them engaging in harmful behaviour such as invasive data collection and practices that lock in customers and limit their choices.
"Our proposed reforms include a call for targeted consumer protections and service-specific codes to prevent anti-competitive conduct by particular designated digital platforms," ACCC Chair Gina Cass-Gottlieb said.
ACCC has not made specific findings of anti-competitive conduct, but said digital platforms with significant market power can use practices such as the bundling of products, and pre-installation and default settings to limit customer choice or deter innovation from competitors.
The aforementioned five digital platforms did not immediately respond to Reuters' request for a comment.
In terms of data collection practices, ACCC found that these providers have greater access to rich consumer data via expansion, and it is not always clear from the relevant privacy policies if the data collected exceeds that which is required for device functionality or product improvement.
Must ensure competition laws are fit-for-purpose to respond to the potential challenges posed by emerging technologies such as generative AI and virtual reality, ACCC said.
(Reporting by Ayushman Ojha; Editing by Sherry Jacob-Phillips and Tom Hogue)
((Ayushman.Ojha@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 on concerns raised by ACCC in paragraphs 6-8 Nov 27 (Reuters) - Australia's competition watchdog said on Monday new competition laws were required in response to the rapid expansion of digital platforms such as Amazon AMZN.O, Apple AAPL.O, Google GOOGL.O, Meta META.O and Microsoft MSFT.O in the country. "Our proposed reforms include a call for targeted consumer protections and service-specific codes to prevent anti-competitive conduct by particular designated digital platforms," ACCC Chair Gina Cass-Gottlieb said. ACCC has not made specific findings of anti-competitive conduct, but said digital platforms with significant market power can use practices such as the bundling of products, and pre-installation and default settings to limit customer choice or deter innovation from competitors.
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Adds details on concerns raised by ACCC in paragraphs 6-8 Nov 27 (Reuters) - Australia's competition watchdog said on Monday new competition laws were required in response to the rapid expansion of digital platforms such as Amazon AMZN.O, Apple AAPL.O, Google GOOGL.O, Meta META.O and Microsoft MSFT.O in the country. The Australian Competition and Consumer Commission (ACCC) in its latest report for the Digital Platform Services Inquiry raised concerns that expansion of these platforms has increased the risk of them engaging in harmful behaviour such as invasive data collection and practices that lock in customers and limit their choices. "Our proposed reforms include a call for targeted consumer protections and service-specific codes to prevent anti-competitive conduct by particular designated digital platforms," ACCC Chair Gina Cass-Gottlieb said.
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Adds details on concerns raised by ACCC in paragraphs 6-8 Nov 27 (Reuters) - Australia's competition watchdog said on Monday new competition laws were required in response to the rapid expansion of digital platforms such as Amazon AMZN.O, Apple AAPL.O, Google GOOGL.O, Meta META.O and Microsoft MSFT.O in the country. The Australian Competition and Consumer Commission (ACCC) in its latest report for the Digital Platform Services Inquiry raised concerns that expansion of these platforms has increased the risk of them engaging in harmful behaviour such as invasive data collection and practices that lock in customers and limit their choices. In terms of data collection practices, ACCC found that these providers have greater access to rich consumer data via expansion, and it is not always clear from the relevant privacy policies if the data collected exceeds that which is required for device functionality or product improvement.
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Adds details on concerns raised by ACCC in paragraphs 6-8 Nov 27 (Reuters) - Australia's competition watchdog said on Monday new competition laws were required in response to the rapid expansion of digital platforms such as Amazon AMZN.O, Apple AAPL.O, Google GOOGL.O, Meta META.O and Microsoft MSFT.O in the country. The Australian Competition and Consumer Commission (ACCC) in its latest report for the Digital Platform Services Inquiry raised concerns that expansion of these platforms has increased the risk of them engaging in harmful behaviour such as invasive data collection and practices that lock in customers and limit their choices. "Our proposed reforms include a call for targeted consumer protections and service-specific codes to prevent anti-competitive conduct by particular designated digital platforms," ACCC Chair Gina Cass-Gottlieb said.
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12381.0
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2023-11-26 00:00:00 UTC
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China's Realme hits 200 mln shipment milestone, to launch premium phones
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AAPL
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https://www.nasdaq.com/articles/chinas-realme-hits-200-mln-shipment-milestone-to-launch-premium-phones
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nan
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nan
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By Josh Ye
HONG KONG, Nov 27 (Reuters) - Chinese smartphone maker Realme said it had shipped more than 200 million phones since it was established a little over five years ago, most of them outside China, with data showing it was the fifth fastest smartphone maker to achieve this milestone.
Realme, owned by Chinese consumer hardware giant BBK Electronics which also owns the Oppo and Vivo brands, said it had reached the 200 million mark in the second quarter.
Data from market analytics firm Counterpoint Research shows that only four companies - Vivo, Huawei HWT.UL, Samsung 005930.KS and Apple AAPL.O - have taken less time to ship the same number of units. In total, just 14 companies globally which have shipped over 200 million phones to date.
"We came into existence when there were over 700 smartphone brands in the world," said Xu Qi, Realme's chief marketing officer. "We are extremely proud that we have been able to be in the world's top 10 brands for the past five years."
According to Counterpoint Research, there were more than 700 phone brands in 2017 and that number has plunged to about 250 in September.
Xu said Realme was ready to take on premium phones with its upcoming launch, the Realme GT 5 Pro, which will be among the first handsets to feature Qualcomm's latest high-end chip the Snapdragon 8 Gen 3 and Sony's new Lytia camera sensor.
Xiaomi 1810.HK has recently released the Xiaomi 14 Pro which also runs on the new Snapdragon 8 Gen 3.
(Reporting by Josh Ye; Editing by Miral Fahmy)
((Josh.Ye@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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Data from market analytics firm Counterpoint Research shows that only four companies - Vivo, Huawei HWT.UL, Samsung 005930.KS and Apple AAPL.O - have taken less time to ship the same number of units. By Josh Ye HONG KONG, Nov 27 (Reuters) - Chinese smartphone maker Realme said it had shipped more than 200 million phones since it was established a little over five years ago, most of them outside China, with data showing it was the fifth fastest smartphone maker to achieve this milestone. "We came into existence when there were over 700 smartphone brands in the world," said Xu Qi, Realme's chief marketing officer.
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Data from market analytics firm Counterpoint Research shows that only four companies - Vivo, Huawei HWT.UL, Samsung 005930.KS and Apple AAPL.O - have taken less time to ship the same number of units. By Josh Ye HONG KONG, Nov 27 (Reuters) - Chinese smartphone maker Realme said it had shipped more than 200 million phones since it was established a little over five years ago, most of them outside China, with data showing it was the fifth fastest smartphone maker to achieve this milestone. "We came into existence when there were over 700 smartphone brands in the world," said Xu Qi, Realme's chief marketing officer.
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Data from market analytics firm Counterpoint Research shows that only four companies - Vivo, Huawei HWT.UL, Samsung 005930.KS and Apple AAPL.O - have taken less time to ship the same number of units. By Josh Ye HONG KONG, Nov 27 (Reuters) - Chinese smartphone maker Realme said it had shipped more than 200 million phones since it was established a little over five years ago, most of them outside China, with data showing it was the fifth fastest smartphone maker to achieve this milestone. Realme, owned by Chinese consumer hardware giant BBK Electronics which also owns the Oppo and Vivo brands, said it had reached the 200 million mark in the second quarter.
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Data from market analytics firm Counterpoint Research shows that only four companies - Vivo, Huawei HWT.UL, Samsung 005930.KS and Apple AAPL.O - have taken less time to ship the same number of units. Realme, owned by Chinese consumer hardware giant BBK Electronics which also owns the Oppo and Vivo brands, said it had reached the 200 million mark in the second quarter. "We came into existence when there were over 700 smartphone brands in the world," said Xu Qi, Realme's chief marketing officer.
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12382.0
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2023-11-26 00:00:00 UTC
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3 Mighty Mixed Reality Stocks Blending Digital and Physical Worlds
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AAPL
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https://www.nasdaq.com/articles/3-mighty-mixed-reality-stocks-blending-digital-and-physical-worlds
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The augmented reality (AR) industry continues to project strong growth in the coming years. In turn, investors continue to look at mixed reality stocks in companies that blend the digital and physical worlds.
Again, growth is forecast. Thus, projections start near 14% for AR and virtual reality (VR) between 2023 and 2027 at the global level. Projections range as high as 50% for the period between 2023 and 2030. However, most predictions seem to settle between 30 to 35% compound annual growth (CAG).
Let’s take a look at the stocks and companies that will expose investors to that growth and those projected returns moving forward.
Meta Platforms (META)
Source: Blue Planet Studio / Shutterstock.com
Meta Platforms (NASDAQ:META) adopted a more metaverse forward approach than any other Silicon Valley firm.
The company is broadly focused on AR innovation, mixed reality headsets, AR development platforms, and an apps and game store with mixed reality offerings.
META continues to invest heavily into its Reality Labs business segment. Incidentally, it continues to lose a lot of money on that investment. For example, during the first nine months of 2023, Reality Labs accounted for an $11.47 billion loss overall. That was more than $2 billion greater than the same period a year earlier.
Although those losses may cause some concern, they aren’t a primary driver of the stocks value. Despite its rebrand, Meta Platforms is and will continue to be driven by Facebook and its family of apps. The provided advertising revenue is the engine of the company.
Fortunately, marketing revenues have strengthened during the same period. So, investors should consider buying META since it will rise as the macroeconomic picture improves. Further, its Reality Labs division, while continuing to lose money, also offers strong future growth revenue potential.
Apple (AAPL)
Source: Moab Republic / Shutterstock
Apple (NASDAQ:AAPL) will enter the augmented reality space through its App Store. Its Vision Pro headset’s release is expected early 2024, the company’s first product release in more than a decade. It promises potential to positively impact its stock.
The company announced the Vision Pro back in June, and they are releasing more product information, particularly about the user interface.
Apple continues to refine the VisionOS Beta release via a series of recent instructional videos, which onboard new users. Early reactions have been well received by users who have enrolled their Persona through VisionOS Beta.
Investors shouldn’t expect the Vision Pro to affect Apple’s bottom line in 2024. Early 2024 projections suggest that the company expects to sell fewer than 400,000, which cost $3,499. A few billion dollars over the course of a year is simply a drop in the bucket to Apple.
Rather, investors should pay attention to early reactions of users who have access to Beta releases of the technology. Positive reception will go a long way toward convincing investors that Apple is on the right track with its Vision Pro.
Qualcomm (QCOM)
Source: photobyphm / Shutterstock.com
Qualcomm (NASDAQ:QCOM) is a better known semiconductor firms which is leaning heavily into AR. Also, its stock is a relatively reliable choice overall for those interested in the chip manufacturing space. QCOM shares include a dividend which makes it somewhat unique.
The company is well known for its Snapdragon chips used in its AR products. Its Snapdragon XR2 platform underpins the development of AR. Qualcomm is developing AR glasses as well as multiple systems on chips (SoCs) for headsets and glasses.
Qualcomm may well become the best choice among chip producers in the AR space, especially as a leader in chip supply for standalone VR headsets.
Further, QCOM remains an interesting choice among semiconductor stocks. It offers a dividend yield of 2.48%, considered relatively high in comparison to other large tech firms. Thus, investors looking for income and exposure to AR will be hard-pressed to find a better stock than Qualcomm.
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.
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The post 3 Mighty Mixed Reality Stocks Blending Digital and Physical Worlds 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 Apple (NASDAQ:AAPL) will enter the augmented reality space through its App Store. Further, its Reality Labs division, while continuing to lose money, also offers strong future growth revenue potential. 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: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) will enter the augmented reality space through its App Store. The company is broadly focused on AR innovation, mixed reality headsets, AR development platforms, and an apps and game store with mixed reality offerings. Further, its Reality Labs division, while continuing to lose money, also offers strong future growth revenue potential.
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Apple (AAPL) Source: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) will enter the augmented reality space through its App Store. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The augmented reality (AR) industry continues to project strong growth in the coming years. The company is broadly focused on AR innovation, mixed reality headsets, AR development platforms, and an apps and game store with mixed reality offerings.
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Apple (AAPL) Source: Moab Republic / Shutterstock Apple (NASDAQ:AAPL) will enter the augmented reality space through its App Store. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The augmented reality (AR) industry continues to project strong growth in the coming years. The company is broadly focused on AR innovation, mixed reality headsets, AR development platforms, and an apps and game store with mixed reality offerings.
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12383.0
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2023-11-26 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-22
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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 94% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
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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12384.0
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2023-11-26 00:00:00 UTC
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Wall St Week Ahead-Broadening of U.S. stock rally feeds investor optimism
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-broadening-of-u.s.-stock-rally-feeds-investor-optimism-0
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nan
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nan
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By Lewis Krauskopf, David Randall and Saqib Iqbal Ahmed
NEW YORK, Nov 24 (Reuters) - Signs the U.S. stock market rally is broadening from the so-called Magnificent Seven of mega-cap growth and technology companies is bolstering investor hopes for a rally through year-end.
Equities have risen sharply, with the S&P 500 .SPX up over 8% in November, on the cusp of a new high for 2023, fueled by falling Treasury yields and cooling inflation readings that could signal the end of Federal Reserve rate hikes. Yields fall when Treasury prices rise, and the lower returns on guaranteed fixed-income investments make stocks more appealing.
In one encouraging sign, about 55% of the S&P 500 were trading above their 200-day moving averages as of Monday. That level breached 50% last week for the first time in nearly two months, according to LPL Financial.
"Breadth is finally starting to broaden out to levels more commensurate with bull markets," said Adam Turnquist, chief technical strategist at LPL Financial. "This has been one of the keys to calling this recovery sustainable."
Among other signs, the equal-weight S&P 500 .SPXEW -- a proxy for the average stock in the index -- rose 3.24% last week. That was substantially more than the 2.24% rise for the market-cap weighted S&P 500 .SPX, the biggest percentage point outperformance for the equal-weight index in nearly five months.
Even so, the S&P 500 equal-weight index has gained just 3% in 2023 against an 18% rise for the overall S&P 500 -- on pace for the biggest such annual percentage-point gap in 25 years.
Much of that underperformance is due to the outsized gain in the Magnificent Seven stocks, which collectively hold a 28% weight in the S&P 500 index: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvdia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. Overall, the group of stocks makes up nearly 50% of the weighting of the Nasdaq 100, which is up nearly 47% for the year to date.
Struggling small-cap and bank stocks have perked up, especially after last week's U.S. consumer price data for October was unchanged from the prior month.
The small-cap Russell 2000 .RUT is up 5.5% since the CPI data with the S&P 500 banks index .SPXBK up 6.5%, versus a 3% rise for the S&P 500. Year-to-date, the Russell 2000 is up 2%, while the S&P 500 banks index has fallen over 6%.
Mona Mahajan, senior investment strategist at Edward Jones, said an environment that could be conducive for a broadening of the rally "is starting to take shape."
“This environment where rates are cooling, inflation is moderating and the Fed is on the sidelines, that is typically a good backdrop for risk assets,” Mahajan said.
“Typically when rates start to move lower, you get valuation expansion and the areas that we could see some more meaningful valuation expansion is outside of large-cap tech,” she said.
The equal-weight S&P 500 is trading at a 5% discount to its 10-year average forward price-to-earnings ratio, according to Edward Jones.
Still, there are reasons to think that the market rally is not on the verge of a sustained broadening.
Investors will get further readings of consumer confidence and inflation next week. Stronger than expected data could spur a selloff in Treasuries, sending yields higher.
At the same time, the sharp rally in stocks for the week ended Nov. 17 was accompanied by high demand for upside call options, particularly in parts of the market that have underperformed this year, such as the small-caps focused iShares Russell 2000 ETF IWM.P.
Some of that has already started to unwind.
"We saw a huge pickup in expectations for IWM, but now those seem to have stabilized," said Steve Sosnick, chief strategist at Interactive Brokers.
The recent surge, which has pushed the broad S&P 500 up approximately 10% over the last three weeks, may not last as investors prepare to close their books for the year, said Jason Draho, head of asset allocation Americas at UBS Global Wealth Management.
"A lot of good news is already priced in and investors may be reluctant to chase the rally," he said.
Joining the party https://tmsnrt.rs/40S10KG
(Reporting by David Randall, Lewis Krauskopf, Saqib Iqbal Ahmed; editing by Megan Davies and David Gregorio)
((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Much of that underperformance is due to the outsized gain in the Magnificent Seven stocks, which collectively hold a 28% weight in the S&P 500 index: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvdia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. Equities have risen sharply, with the S&P 500 .SPX up over 8% in November, on the cusp of a new high for 2023, fueled by falling Treasury yields and cooling inflation readings that could signal the end of Federal Reserve rate hikes. At the same time, the sharp rally in stocks for the week ended Nov. 17 was accompanied by high demand for upside call options, particularly in parts of the market that have underperformed this year, such as the small-caps focused iShares Russell 2000 ETF IWM.P.
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Much of that underperformance is due to the outsized gain in the Magnificent Seven stocks, which collectively hold a 28% weight in the S&P 500 index: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvdia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. By Lewis Krauskopf, David Randall and Saqib Iqbal Ahmed NEW YORK, Nov 24 (Reuters) - Signs the U.S. stock market rally is broadening from the so-called Magnificent Seven of mega-cap growth and technology companies is bolstering investor hopes for a rally through year-end. Equities have risen sharply, with the S&P 500 .SPX up over 8% in November, on the cusp of a new high for 2023, fueled by falling Treasury yields and cooling inflation readings that could signal the end of Federal Reserve rate hikes.
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Much of that underperformance is due to the outsized gain in the Magnificent Seven stocks, which collectively hold a 28% weight in the S&P 500 index: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvdia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. By Lewis Krauskopf, David Randall and Saqib Iqbal Ahmed NEW YORK, Nov 24 (Reuters) - Signs the U.S. stock market rally is broadening from the so-called Magnificent Seven of mega-cap growth and technology companies is bolstering investor hopes for a rally through year-end. Among other signs, the equal-weight S&P 500 .SPXEW -- a proxy for the average stock in the index -- rose 3.24% last week.
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Much of that underperformance is due to the outsized gain in the Magnificent Seven stocks, which collectively hold a 28% weight in the S&P 500 index: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvdia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. By Lewis Krauskopf, David Randall and Saqib Iqbal Ahmed NEW YORK, Nov 24 (Reuters) - Signs the U.S. stock market rally is broadening from the so-called Magnificent Seven of mega-cap growth and technology companies is bolstering investor hopes for a rally through year-end. "Breadth is finally starting to broaden out to levels more commensurate with bull markets," said Adam Turnquist, chief technical strategist at LPL Financial.
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12385.0
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2023-11-25 00:00:00 UTC
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Warren Buffett-Led Berkshire Hathaway Sells Its Entire Procter & Gamble Stake. Should You?
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AAPL
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https://www.nasdaq.com/articles/warren-buffett-led-berkshire-hathaway-sells-its-entire-procter-gamble-stake.-should-you
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nan
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nan
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Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) latest 13F filing revealed that the company sold $7 billion in equities in Q3 -- including its entire stake in Procter & Gamble (NYSE: PG).
P&G has a wide moat, a stable business, and generates a ton of cash. Plus, it's a Dividend King with 67 consecutive years of dividend payments. It sounds like the perfect Buffett stock. But apparently it wasn't.
Let's go through some of the reasons why Berkshire may have sold P&G, but why the company could still be worth buying now.
Image source: Getty Images.
A bit of housekeeping
Berkshire finished Q2 with 315,400 shares of P&G -- valued at $47.9 million. It sounds like a lot, but the position was less than 0.1% of Berkshire's portfolio.
According to its Q3 13F filing, Berkshire has completely exited the position.
The sale may have just been an effort to consolidate the portfolio a bit. After all, Berkshire also exited other smaller positions, including Johnson & Johnson, Mondelez, United Parcel Service, Celanese, and General Motors. Aside from Celanese and GM, which both made up 0.2% of the public equity portfolio, all the other positions made up less than 0.1%.
A premium valuation
There's a good chance Buffett and his team sold these small holdings simply to consolidate the portfolio. But a better question to ask is why didn't Berkshire buy more P&G in the past or make it a larger position?
The answer may simply come down to valuation. P&G sports a price-to-earnings (P/E) ratio of 24.33, right around the P/E of the S&P 500, which is 24.6. It also has a high price-to-free cash flow (FCF) ratio of 25.5.
PG PE Ratio data by YCharts
And it's not like P&G's P/E ratio of price-to-FCF has been low in the past. Its 10-year median levels are above the market average, which is rare for a low-growth, stodgy dividend stock.
By comparison, Apple (NASDAQ: AAPL) stock, which has pole-vaulted to 50% of Berkshire's public equity portfolio, was a reasonable valuation for a while. Apple sports a 31.3 P/E ratio today, which may be one of the reasons Berkshire has been holding, not buying Apple. But its 10-year median P/E ratio is 18.
Aside from preferring Apple over other stocks, Berkshire also continues buying back its own stock. Berkshire is known for its public equity holdings. But it has sizable investments in many other companies too, from insurance, finance, energy, utilities, infrastructure, and more.
All told, Berkshire's reasons for not buying more P&G in years past, and its decision to sell the position today, may come down to Buffett and his team preferring other opportunities, including Apple and its own stock.
Why P&G is worth owning
An expensive valuation is far and away the best case against P&G. But it's important to also recognize what P&G does well and why it may be worth a premium price.
At its core, P&G's success stems from its ability to develop brands, as well as to recognize what brands aren't worth developing.
P&G is a cash cow that has proven to have immense pricing power even during this inflationary environment. It has successfully raised prices quarter after quarter. Instead of choosing a less expensive comparable generic brand, the numbers show that consumers are accepting P&G's price hikes. This shows that even in the consumer staples industry, there is an element of brand and pricing power that can give a company like P&G a lever to pull to offset high inflation.
Instead of using its FCF to overly invest in its business, P&G remains disciplined and chooses instead to return the majority of profits to investors through dividends and stock buybacks. In fiscal 2023, P&G spent a staggering $9 billion on dividends and $7.4 billion on buybacks. Over the last 10 years, it has reduced its outstanding share count by 13.1%.
By reducing the share count, buybacks permanently boost earnings per share since there are fewer shares to go around. It's a way for a company to grow its earnings per share in addition to organic growth, which makes a lot of sense for P&G since it is a low-growth company with limited outlets for responsible capital investment.
P&G is a perfect stock for risk-averse investors
P&G's positioning, track record for brand development, recession resilience, and pricing power make it a great company. In addition to those factors, what makes P&G a very good stock is its commitment to shareholders through the dividends and buybacks.
In Berkshire's case, buying back its own stock is perfectly reasonable because it is confident in the strength and valuation of its businesses. But for individual investors, about the only thing not to like about P&G is its valuation. The company checks the rest of the boxes.
P&G remains an excellent choice for folks looking to supplement income in retirement or who are looking for a safe stock so that they can participate in the stock market and collect dividend income, but also reduce the impact that a recession or major sell-off would likely have on their portfolio.
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Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. The Motley Fool recommends General Motors, Johnson & Johnson, and United Parcel Service and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By comparison, Apple (NASDAQ: AAPL) stock, which has pole-vaulted to 50% of Berkshire's public equity portfolio, was a reasonable valuation for a while. All told, Berkshire's reasons for not buying more P&G in years past, and its decision to sell the position today, may come down to Buffett and his team preferring other opportunities, including Apple and its own stock. This shows that even in the consumer staples industry, there is an element of brand and pricing power that can give a company like P&G a lever to pull to offset high inflation.
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By comparison, Apple (NASDAQ: AAPL) stock, which has pole-vaulted to 50% of Berkshire's public equity portfolio, was a reasonable valuation for a while. Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) latest 13F filing revealed that the company sold $7 billion in equities in Q3 -- including its entire stake in Procter & Gamble (NYSE: PG). After all, Berkshire also exited other smaller positions, including Johnson & Johnson, Mondelez, United Parcel Service, Celanese, and General Motors.
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By comparison, Apple (NASDAQ: AAPL) stock, which has pole-vaulted to 50% of Berkshire's public equity portfolio, was a reasonable valuation for a while. Aside from preferring Apple over other stocks, Berkshire also continues buying back its own stock. All told, Berkshire's reasons for not buying more P&G in years past, and its decision to sell the position today, may come down to Buffett and his team preferring other opportunities, including Apple and its own stock.
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By comparison, Apple (NASDAQ: AAPL) stock, which has pole-vaulted to 50% of Berkshire's public equity portfolio, was a reasonable valuation for a while. Let's go through some of the reasons why Berkshire may have sold P&G, but why the company could still be worth buying now. But a better question to ask is why didn't Berkshire buy more P&G in the past or make it a larger position?
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12386.0
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2023-11-25 00:00:00 UTC
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Take My Money! 3 Stocks to Buy Hand Over Fist
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AAPL
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https://www.nasdaq.com/articles/take-my-money-3-stocks-to-buy-hand-over-fist
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Everyone’s definition of a must-buy stock is different.
I remember writing about Church & Dwight (NYSE:CHD) in 2016 when it was on one heck of a heater, as they say in sports—up 9% year to date (YTD) through April, working on its 11th consecutive year of market gains.
I suggested it was still a buy despite gaining 411% over the previous decade. It proceeded to gain another 121% over the next five years. That was a must-buy stock. It’s since cooled off, but if its Q3 2023 results indicate, it’s about to heat up again.
So, what stocks should you buy hand over fist right now? Well, that depends on your opinion of whether stocks are overvalued or not.
The Business Insider recently reported that several billionaires believe U.S. stocks are overpriced. Jeremy Grantham thinks the S&P 500 will fall by as much as 50%. However, Wharton finance professor Jeremy Siegel thinks the opposite is true, given the current earnings yield of 6%.
“Stocks are still priced for much better long-term returns and a 3% equity premium, while lower than it was for last decade, does not mean stocks are above fair value. They are now underpriced in my estimation,” CNBC reported Siegel’s comments.
Therefore, let’s explore stocks to buy with an earnings yield above 6%.
PulteGroup (PHM)
Source: rafapress / Shutterstock.com
PulteGroup (NYSE:PHM) has bounced back nicely in 2023, up nearly 90% on the year, after losing 20% of its value in 2022. However, over the past five years, it’s up a whopping 237%, not too far off Apple’s (NASDAQ:AAPL) return.
In Q2 2023, Warren Buffett took up positions in three of PHM’s competitors. Those included D.R. Horton (NYSE:DHI), Lennar (NYSE:LEN), and NVR (NYSE:NVR). He did so because of the housing shortage in this country. Increasing the housing supply is the only way housing affordability will return to the marketplace.
In fact, PulteGroup is the third-largest homebuilder in the U.S., with homes in 40 major markets. Since its founding more than 70 years ago, it’s delivered nearly 800,000 homes. As of Q3 2023, it had a backlog of 13,547 homes worth an estimated $8.13 billion.
While the backlog is smaller than in previous quarters, its net new orders continue to grow like weeds. In Q3, they were 7,065, 43% higher year over year (YOY), with an average sales price of $549,000.
PulteGroup has a rock-solid balance sheet with a net debt-to-capital ratio of less than 1%. It will likely take years for the housing supply to catch up with demand.
Devon Energy (DVN)
Source: Jeff Whyte / Shutterstock.com
Devon Energy (NYSE:DVN) stock is down 34% over the past year. As a result, its dividend yield has increased to a very high 9.3%.
Recently, Devon was included in a trio of energy stocks to buy for income, after it reported Q3 2023 earnings. On the top line, it missed analyst expectations by $190 million. However, on the bottom line, it earned $1.65 a share on an adjusted basis, 9 cents better than the consensus.
Production is up, pushing free cash flow higher. It expects to generate $3.2 billion in free cash flow in 2024. Its profit margin remains high with a $40 breakeven and prices around $76. Based on an enterprise value of $34.7 billion, it has a free cash flow yield of 9.2%.
The company remains one of the top acquisition targets of the large integrated oil and gas companies other than Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX).
United Rentals (URI)
Source: Casimiro PT / Shutterstock.com
United Rentals (NYSE:URI) owns an impressive $21 billion fleet of equipment. It rents out to businesses to get their projects completed, giving it the top market share in the U.S. at 17%. Approximately 52% of its customers are construction-related businesses. The other 48% are industrial businesses such as utilities and manufacturing.
Founded in 1997, United has steadily grown its specialty business over the past decade. In 2012, the division’s revenue was $297 million. Fast forward to 2022, it was more than 10x at $3.45 billion. With 569 specialty locations worldwide, it accounts for nearly 30% of the company’s overall revenue, up from 7.2% a decade ago.
As a result of the ongoing growth of residential and non-residential construction, United’s revenue’s compound annual growth rate (CAGR) over the past five years was 11.9%. In 2023, it’s expected to be 22.0%. And, its adjusted earnings per share have grown 25.1% annually over the past five years, more than double the S&P 500.
Further, since going public in 1997, it’s generated a cumulative return of 2,908%, a 13% CAGR.
On the date of publication, Will Ashworth 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.
Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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The post Take My Money! 3 Stocks to Buy Hand Over Fist appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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However, over the past five years, it’s up a whopping 237%, not too far off Apple’s (NASDAQ:AAPL) return. However, Wharton finance professor Jeremy Siegel thinks the opposite is true, given the current earnings yield of 6%. Recently, Devon was included in a trio of energy stocks to buy for income, after it reported Q3 2023 earnings.
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However, over the past five years, it’s up a whopping 237%, not too far off Apple’s (NASDAQ:AAPL) return. PulteGroup (PHM) Source: rafapress / Shutterstock.com PulteGroup (NYSE:PHM) has bounced back nicely in 2023, up nearly 90% on the year, after losing 20% of its value in 2022. Devon Energy (DVN) Source: Jeff Whyte / Shutterstock.com Devon Energy (NYSE:DVN) stock is down 34% over the past year.
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However, over the past five years, it’s up a whopping 237%, not too far off Apple’s (NASDAQ:AAPL) return. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Everyone’s definition of a must-buy stock is different. I remember writing about Church & Dwight (NYSE:CHD) in 2016 when it was on one heck of a heater, as they say in sports—up 9% year to date (YTD) through April, working on its 11th consecutive year of market gains.
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However, over the past five years, it’s up a whopping 237%, not too far off Apple’s (NASDAQ:AAPL) return. Therefore, let’s explore stocks to buy with an earnings yield above 6%. Recently, Devon was included in a trio of energy stocks to buy for income, after it reported Q3 2023 earnings.
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12387.0
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2023-11-25 00:00:00 UTC
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AAPL, AMZN, or NVDA: Which “Strong Buy” Mega-Cap Tech Stock Could Deliver the Best Returns?
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AAPL
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https://www.nasdaq.com/articles/aapl-amzn-or-nvda%3A-which-strong-buy-mega-cap-tech-stock-could-deliver-the-best-returns
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nan
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nan
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With stock market volatility continuing to weigh on investors’ decisions, it would be prudent to consider some mega-cap stocks (stocks with market capitalization of over $200 billion), which have well-established business models, solid fundamentals, and are among the leading players in their respective industries. Using TipRanks’ Stock Comparison Tool, we placed Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Nvidia (NASDAQ:NVDA) against each other to find the most attractive mega-cap tech stock as per Wall Street analysts.
Apple Stock (NASDAQ:AAPL)
The revenue of iPhone maker Apple has declined for four consecutive quarters, as macro challenges have impacted customers spending on big-ticket discretionary items. While Apple exceeded analysts’ fiscal fourth-quarter expectations due to higher iPhone and Services revenues mitigating the weakness in Mac and iPad sales to quite an extent, investors were disappointed with the company’s December quarter guidance.
Management expects the fiscal first-quarter top line to be similar to the prior-year quarter’s revenue. However, Wall Street expected the company to return to revenue growth of 5% in the crucial holiday season quarter. Management’s commentary clearly indicated the impact of macro pressures on Apple’s products.
Is Apple a Buy, Hold, or Sell?
On Tuesday, Keybanc analyst Brandon Nispel noted that the demand for some iPhone models is slowing. Keybanc’s October survey revealed the substantial slowdown in the demand for Apple's iPhone 15 and Plus models, partially offset by healthy demand for the iPhone 15 Pro and Pro Max.
Moreover, Nispel pointed out that store inventories increased meaningfully above last year's iPhone 14 inventory levels. Also, Keybanc’s "First Look Data" reflects weaker iPhone sales compared to historical trends.
Overall, Nispel expects Apple's fiscal first-quarter revenue growth to be in line with last year. He highlighted that the lack of product releases in October and the later-than-typical iPhone release in September could also hit sales. He also expects lower upgrade rates and softer customer demand to pressure Hardware revenues.
With 25 Buys and eight Holds, Wall Street has a Strong Buy consensus rating on Apple stock. The average price target of $201.99 implies 6.3% upside. Shares have advanced more than 46% so far in 2023.
Amazon.com Stock (NASDAQ:AMZN)
E-commerce and cloud computing behemoth Amazon has impressed investors by reporting better-than-anticipated earnings for the first three quarters of 2023 despite a tough macro backdrop. In Q3 2023, the company reported solid growth in its retail segment, cloud computing unit Amazon Web Services (AWS), and advertising business.
Amazon’s aggressive cost-cutting and streamlining measures have helped the company boost its profitability. In Q3 2023, the company’s operating margin expanded to 7.8% from 2.0% in the prior-year quarter. Management is optimistic about future growth prospects, driven by artificial Intelligence (AI) tailwinds in AWS business, dominant e-commerce business, and the growing ad revenue.
Is Amazon Stock a Good Buy Now?
Earlier this month, UBS analyst Lloyd Walmsley raised his price target for Amazon stock to $180 from $178 and reaffirmed a Buy rating. The analyst noted Amazon’s solid Q3 performance led by strong margin improvement in North America retail, International retail, and AWS segments. Also, the analyst highlighted the acceleration in ad revenue and upbeat Q4 outlook.
He added that management's tone on the conference call was positive about continued retail margin expansion but disappointing about near-term AWS growth re-acceleration. Overall, Walmsley maintained Amazon as his top idea in the Internet market.
Like Walmsley, other analysts covering Amazon are also bullish about the tech giant, with the stock scoring a Strong Buy consensus rating. The average price target of $175.51 implies about 20% upside potential. Shares have advanced 75% year-to-date.
Nvidia Stock (NASDAQ:NVDA)
Semiconductor giant Nvidia is enjoying a phenomenal run this year, thanks to a spike in demand for its graphics processing units (GPUs) due to the generative AI wave. Nvidia recently reported its fiscal third-quarter results, which trounced Wall Street’s estimates but fell short of shareholders’ lofty expectations.
Also, investors are concerned about the impact of the Biden administration’s restrictions on advanced chip exports to China. Nonetheless, the company is highly optimistic about the road ahead, as it believes that “Generative AI is the largest TAM [total addressable market] expansion of software and hardware that we've seen in several decades.”
What is the Price Target for Nvidia Stock?
On Wednesday, JPMorgan analyst Harlan Sur increased the price target for Nvidia to $650 from $600 and reiterated a Buy rating on the stock. Sur highlighted that the company’s Q3 beat was on top of a higher revenue base.
Sur added that Nvidia’s guidance of a 10% sequential revenue growth reflects continued strong spending by its customers to support their AI initiatives. Sur stated that Nvidia managed to report market-beating Fiscal Q3 results, driven by the "massive demand pull" for its data center products. The analyst increased his estimates following the print.
Nvidia earns Wall Street’s Strong Buy consensus rating based on 30 Buys and three Holds. The average price target of $660.39 implies 38.2% upside, even after a staggering 227% year-to-date rally.
Conclusion
Wall Street is highly optimistic about the three mega-cap tech stocks discussed here. That said, among the three tech giants, analysts see the highest upside in Nvidia stock even after a stellar generative AI-induced year-to-date rally this year. As per TipRanks’s Smart Score System, Nvdia scores a “Perfect 10,” which implies that the stock has the capability to outperform the broader market over the long term.
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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Using TipRanks’ Stock Comparison Tool, we placed Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Nvidia (NASDAQ:NVDA) against each other to find the most attractive mega-cap tech stock as per Wall Street analysts. Apple Stock (NASDAQ:AAPL) The revenue of iPhone maker Apple has declined for four consecutive quarters, as macro challenges have impacted customers spending on big-ticket discretionary items. While Apple exceeded analysts’ fiscal fourth-quarter expectations due to higher iPhone and Services revenues mitigating the weakness in Mac and iPad sales to quite an extent, investors were disappointed with the company’s December quarter guidance.
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Using TipRanks’ Stock Comparison Tool, we placed Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Nvidia (NASDAQ:NVDA) against each other to find the most attractive mega-cap tech stock as per Wall Street analysts. Apple Stock (NASDAQ:AAPL) The revenue of iPhone maker Apple has declined for four consecutive quarters, as macro challenges have impacted customers spending on big-ticket discretionary items. In Q3 2023, the company reported solid growth in its retail segment, cloud computing unit Amazon Web Services (AWS), and advertising business.
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Using TipRanks’ Stock Comparison Tool, we placed Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Nvidia (NASDAQ:NVDA) against each other to find the most attractive mega-cap tech stock as per Wall Street analysts. Apple Stock (NASDAQ:AAPL) The revenue of iPhone maker Apple has declined for four consecutive quarters, as macro challenges have impacted customers spending on big-ticket discretionary items. While Apple exceeded analysts’ fiscal fourth-quarter expectations due to higher iPhone and Services revenues mitigating the weakness in Mac and iPad sales to quite an extent, investors were disappointed with the company’s December quarter guidance.
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Using TipRanks’ Stock Comparison Tool, we placed Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Nvidia (NASDAQ:NVDA) against each other to find the most attractive mega-cap tech stock as per Wall Street analysts. Apple Stock (NASDAQ:AAPL) The revenue of iPhone maker Apple has declined for four consecutive quarters, as macro challenges have impacted customers spending on big-ticket discretionary items. Management expects the fiscal first-quarter top line to be similar to the prior-year quarter’s revenue.
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12388.0
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2023-11-25 00:00:00 UTC
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Airbnb Just Made a $200 Million Move Into the AI Space. Here's What Investors Need to Know.
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AAPL
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https://www.nasdaq.com/articles/airbnb-just-made-a-%24200-million-move-into-the-ai-space.-heres-what-investors-need-to-know.
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nan
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nan
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On Nov. 14, travel platform Airbnb (NASDAQ: ABNB) did something it's never done since going public in 2020: It acquired another company. And according to people in the know, it spent a ton of money to do so.
Airbnb just acquired GamePlanner.AI for $200 million, according to CNBC's sources. That's a monster price tag for a start-up with just 12 people and no website. But according to Airbnb CEO Brian Chesky, GamePlanner.AI is "special" nonetheless.
GamePlanner.AI may indeed be special. But can it move the needle for Airbnb's shareholders? Here's what investors need to know.
What is known so far...spoiler: It ain't much.
Given the incessant barrage of artificial intelligence (AI) headlines, it's tempting to ignore this move by Airbnb. But there's a really good reason to pay attention in this case. GamePlanner.AI's co-founder is Adam Cheyer. Cheyer previously cofounded other start-ups including Siri (which is now owned by Apple) and petition website Change.org.
In short, Cheyer has started big things before. And GamePlanner.AI might just be the next big thing on his illustrious resume.
Investors unfortunately don't know what GamePlanner.AI does because the start-up has been in "stealth" mode. There's not even a record of funding from private investors.
However, Cheyer's background is with voice assistant technology like Siri, which is also known as a virtual assistant. Therefore, it seems plausible that GamePlanner.AI does something related to virtual assistants powered by AI.
Airbnb apparently believes GamePlanner.AI is worth $200 million. And if it's building AI virtual assistants as I suspect, then billionaire Bill Gates might agree with the price tag.
A-I-rbnb?
To be clear, travel companies are adopting AI solutions and Airbnb is no stranger when it comes to the space. In the company's most recent platform update (it releases new features every summer and winter), it had an AI feature for hosts. Hosts simply upload pictures and the AI will create a picture tour automatically.
Moreover, Airbnb's Chesky is close friends with Sam Altman, known for his work as CEO of OpenAI -- parent company of chatbot ChatGPT. No doubt Chesky is well acquainted with the AI space as he leads Airbnb in this area, thanks to his friendship with Altman.
Airbnb likely wants AI to be the star of its show in the future, not simply some background character. And this is where an AI personal assistant might come in.
"Virtual assistant" and "digital assistant" are interchangeable terms. According to Oracle, a digital assistant is a really advanced chatbot known as a predictive chatbot. And its AI models are essentially built using the personal information it has on the user. It takes anything it can find -- from age to purchase history -- to interact with the user.
In May, Bill Gates reportedly said that when someone figures out how to build a good AI virtual assistant, no one will ever go to Amazon again. His point wasn't that people will stop using Amazon's services. Rather, people will simply tell their virtual assistants to go shopping for them, based on what they like and what they're looking for.
This has huge implications for e-commerce. But it's also easy to see its applications for travel. Management for rival travel platform Booking Holdings has repeatedly talked about having an AI travel agent -- like the virtual assistant idea that has Gates so excited -- to help users plan and book trips. Perhaps Airbnb is envisioning something similar, and GamePlanner.AI pushes it closer to the goal.
It's fun to imagine pulling up the Airbnb app and simply telling it where you want to go and when. Then the AI travel assistant could get to work booking your stay, based on the amenities that it knows you like. But this concept is merely imaginary until Airbnb provides more details.
One final cautionary word
If this is what Airbnb is building, I'm not convinced it's a meaningful long-term driver of revenue or profits. The technologies adopted by one travel platform will likely be copied everywhere. Therefore, if AI travel agents become a thing, then Airbnb's acquisition of GamePlanner.AI is simply table stakes.
That said, it's important to me as an Airbnb shareholder for this acquisition to be successful. I greatly admire the company's profitability -- it has a free-cash-flow margin of 44% over the last 12 months, which is better than most public companies.
Generating profits is one thing. Making good capital-allocation decisions with profits is another. Airbnb has a lot going for it and this acquisition could be a good one. But it's important that the company demonstrates the ability to use profits to create more shareholder value over time, not destroy it. Therefore, I'll be watching Airbnb's AI journey more closely from here.
Find out why Airbnb is one of the 10 best stocks to buy now
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jon Quast has positions in Airbnb. The Motley Fool has positions in and recommends Airbnb, Amazon, Apple, Booking Holdings, Microsoft, and Oracle. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Moreover, Airbnb's Chesky is close friends with Sam Altman, known for his work as CEO of OpenAI -- parent company of chatbot ChatGPT. One final cautionary word If this is what Airbnb is building, I'm not convinced it's a meaningful long-term driver of revenue or profits. *Stock Advisor returns as of November 15, 2023 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
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In May, Bill Gates reportedly said that when someone figures out how to build a good AI virtual assistant, no one will ever go to Amazon again. Therefore, if AI travel agents become a thing, then Airbnb's acquisition of GamePlanner.AI is simply table stakes. The Motley Fool has positions in and recommends Airbnb, Amazon, Apple, Booking Holdings, Microsoft, and Oracle.
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To be clear, travel companies are adopting AI solutions and Airbnb is no stranger when it comes to the space. Management for rival travel platform Booking Holdings has repeatedly talked about having an AI travel agent -- like the virtual assistant idea that has Gates so excited -- to help users plan and book trips. Therefore, if AI travel agents become a thing, then Airbnb's acquisition of GamePlanner.AI is simply table stakes.
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On Nov. 14, travel platform Airbnb (NASDAQ: ABNB) did something it's never done since going public in 2020: It acquired another company. Rather, people will simply tell their virtual assistants to go shopping for them, based on what they like and what they're looking for. Therefore, if AI travel agents become a thing, then Airbnb's acquisition of GamePlanner.AI is simply table stakes.
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12389.0
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2023-11-24 00:00:00 UTC
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Netflix (NFLX) Drops Trailer for Gyeongseong Creature K-Drama
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AAPL
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https://www.nasdaq.com/articles/netflix-nflx-drops-trailer-for-gyeongseong-creature-k-drama
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nan
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nan
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Netflix NFLX has revealed the teaser for its upcoming Korean show, Gyeongseong Creature, which is shaping up to be an exciting and intriguing series, blending historical drama with elements of the creature genre.
The teaser poster and trailer provide a glimpse into the suspenseful narrative, which is set in the spring of 1945 and the challenge of battling a monstrous entity born from human greed adds an interesting layer to the narrative.
The combination of historical context and the mysterious Ongseong Hospital as a vital location adds an extra layer of depth to the story. The involvement of main characters like Jang Tae-sang and Yoon Chae-ok, played by Park Seo-joon and Han So-hee respectively, adds excitement to the storyline.
The plot, with its race against time and the threat faced by Tae-sang to find the missing lover of Commissioner Ishikawa, creates a sense of urgency and intrigue. The partnership between Tae-sang and Chae-ok, both experts in their own right, includes an interesting dimension to the narrative.
Aside from Park Seo-joon and Han So-hee, the new Netflix Korean original series will also feature Claudia Kim (Avengers: Age Of Ultron), Squid Game alum Wi Ha-joon, Kim Hae-sook and Jo Han-chul, among others.
With the release of Part 1 on Dec 22 and Part 2 on Jan 5 exclusively on Netflix, it seems like viewers can anticipate a thrilling and suspenseful experience as they delve into the world of Gyeongseong Creature.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
Korean Content Lineup to Boost User Growth
Netflix is investing heavily in Korean-language content since Korea emerged as an entertainment superpower with K-pop groups like BTS, K-dramas like All of Us Are Dead and the Oscar-winning Korean movie Parasite dominating the entertainment industry globally.
NFLX is currently producing an upcoming Korean drama, The Trunk, starring Korea’s A-listers like Gong Yoo of Train to Busan and Goblin and Seo Hyun-jin, known for Another Miss Oh and The Beauty Inside.
The story, written by Park Eun-young of Hwarang: The Poet Warrior Youth and directed by Kim Gyu-tae of Our Blues, revolves around a marriage arrangement service where clients are arranged into a contract marriage for a year with their most suited partner and the series of secrets that unfold after a mysterious trunk floats ashore.
The company also confirmed the production of Aema, a Korean original series following the struggles of Hui-ran and Joo-ae in creating the 1980s hit film Madame Aema, set in 80s Chungmuro, showcasing the harsh realities of actors in the glitzy Korean film industry.
Expanding the Korean language portfolio will strengthen the Asia-Pacific (APAC) segment’s performance in the near term. For the third quarter of 2023, the paid subscriber base for APAC jumped 17.1% from the year-ago quarter to 42.43 million. The company added 1.88 million paid subscribers in the quarter.
The streaming giant gained 8.76 million paid subscribers globally, thanks to the rollout of paid sharing, strong and steady programming and the ongoing expansion of streaming globally. Netflix expects paid net additions to be similar to third-quarter 2023.
For the fourth quarter of 2023, the company forecasts earnings of $2.15 per share, significantly up from 12 cents reported in the year-ago quarter. The Zacks Consensus Estimate for the same is pegged at $2.18 per share, currently higher than the company’s expectation.
Total revenues are anticipated to be $8.69 billion, suggesting growth of 10.7% year over year or 12% on a foreign-exchange neutral basis. The consensus mark for revenues is pegged at $8.7 billion, higher than the company’s expectation and indicating 10.86% growth from the figure reported in the year-ago quarter.
This Zacks Rank #3 (Hold) company has also experienced record-breaking hits from Korean series like Squid Game and The Glory, with the streaming giant announcing an investment of $2.5 billion in South-Korean creative content over the next four years, building on an already strong portfolio of Korean movies, series and reality shows. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Strong momentum in Netflix’s foreign-language portfolio offerings will benefit top-line growth amid stiff competition from industry peers like Apple AAPL, Disney DIS and Amazon AMZN.
Shares of Netflix shares have gained 62.1% year to date, outperforming the Zacks Consumer Discretionary sector’s return of 11.3%. It also outperformed Apple and Disney but underperformed Amazon.
Notably, shares of Apple and Amazon have returned 47.2% and 74.7%, respectively, while shares of Disney have gained 9.4% on a year-to-date basis.
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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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Strong momentum in Netflix’s foreign-language portfolio offerings will benefit top-line growth amid stiff competition from industry peers like Apple AAPL, Disney DIS and Amazon AMZN. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. The plot, with its race against time and the threat faced by Tae-sang to find the missing lover of Commissioner Ishikawa, creates a sense of urgency and intrigue.
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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 Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Strong momentum in Netflix’s foreign-language portfolio offerings will benefit top-line growth amid stiff competition from industry peers like Apple AAPL, Disney DIS and Amazon AMZN. Aside from Park Seo-joon and Han So-hee, the new Netflix Korean original series will also feature Claudia Kim (Avengers: Age Of Ultron), Squid Game alum Wi Ha-joon, Kim Hae-sook and Jo Han-chul, among others.
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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 Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Strong momentum in Netflix’s foreign-language portfolio offerings will benefit top-line growth amid stiff competition from industry peers like Apple AAPL, Disney DIS and Amazon AMZN. Netflix, Inc. Price and Consensus Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote Korean Content Lineup to Boost User Growth Netflix is investing heavily in Korean-language content since Korea emerged as an entertainment superpower with K-pop groups like BTS, K-dramas like All of Us Are Dead and the Oscar-winning Korean movie Parasite dominating the entertainment industry globally.
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Strong momentum in Netflix’s foreign-language portfolio offerings will benefit top-line growth amid stiff competition from industry peers like Apple AAPL, Disney DIS and Amazon AMZN. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Netflix NFLX has revealed the teaser for its upcoming Korean show, Gyeongseong Creature, which is shaping up to be an exciting and intriguing series, blending historical drama with elements of the creature genre.
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12390.0
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2023-11-24 00:00:00 UTC
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1 Tech Stock That Has Created Many Millionaires, and Will Continue to Make More
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AAPL
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https://www.nasdaq.com/articles/1-tech-stock-that-has-created-many-millionaires-and-will-continue-to-make-more
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nan
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nan
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Apple (NASDAQ: AAPL) has long been a prime example of what innovation and savvy business practices look like. After all, you don't get to be the world's most valuable public company by accident. Apple's journey has revolutionized the tech world and made a lot of investors rich along the way.
Since the beginning of 2003, Apple's total return has been over 8,800%. So if you had invested $10,000 in the company back then and held on through all the intervening years while reinvesting your dividends, your stake would be worth over $8.8 million today.
AAPL data by YCharts.
Of course, it's easy to look at a company like Apple's success in retrospect and think about how you might've missed a once-in-a-generation opportunity, but I believe it is still in the relatively early phases of what it can be. Apple should continue to make plenty more millionaires.
On June 30, 2023, Apple became the first public company to reach a market capitalization of $3 trillion -- doubling its value from about three years prior. It's unreasonable to assume it could double its market cap again in the next three years, but I think a $100,000 investment today could hit the $1 million mark in 20 years.
Even growing at half of its recent pace could do the trick
For an investment to hit $1 million from $100,000 in 20 years, it must grow around 12.25% annually, assuming all gains are reinvested to take full advantage of compound interest. For perspective, the S&P 500, which tracks the largest 500 public U.S. companies, historically returns roughly 10% annually over the long run.
Apple should be well-positioned to outpace the S&P 500 by at least 20% annually over 20 years. For perspective, here's how much Apple has outperformed the index over the past decade.
AAPL data by YCharts.
Apple's compound annual growth rate over that time has been over 25%. That doesn't mean it'll continue growing at that rate, but it does highlight its strong track record, which is often a good indicator of the ability to sustain success over the long haul.
Apple's growth will extend beyond the iPhone
Apple's financial success has long depended on the iPhone. In its fiscal 2023 (which ended Sept. 30), the iPhone brought in more than $200 billion in revenue -- over 52% of Apple's total. Having a single product account for that much of your revenue isn't usually ideal, but it used to be much more skewed. The iPhone was 62% of Apple's revenue in its fiscal 2018 (which ended Sept. 29, 2018).
The company's decreasing dependence on the iPhone and the growth of its services segment are two of the trends that give me confidence that it can grow at the rate needed to turn $100,000 into $1 million in 20 years. In its past five fiscal years, services went from around 15% of Apple's revenue to 22%.
I believe Apple can thrive in two high-growth areas: fintech and telehealth. Apple dabbled in both some years ago, but has recently taken its game up a notch. It has made moves in fintech with services like Apple Pay, Apple Card, and Apple Pay Later, and the Apple Watch, iPhone, and iPad's health-focused features have hinted at how it could become a serious contender in the telehealth space.
According to a forecast by Vantage Market Research, the global fintech industry could grow at an average annualized rate of 19.5% until 2030. A paper published in the Journal of Medical Internet Research forecasts that the U.S. telehealth market will reach $140.7 billion in 2030, up from $17.9 billion in 2020.
I believe Apple has the chance to capitalize on these trends and significantly expand its market share in both fintech and telehealth, thanks to its technological expertise and broad market reach (iPhones are in the hands of more than 1 billion people worldwide).
Don't lose sight of conventional investment wisdom
Despite the successes Apple has experienced and the position it's in to continue this success, it's important for investors not to lose sight of the importance of diversification. Is Apple one of the premier blue chip stocks with a bright, lucrative future ahead? I'd say so. Does that mean you should bet the house on it? I'd say no.
Apple should be part of a well-rounded stock portfolio, but it shouldn't be the bulk of it. Nobody can predict the future, and the last thing you want is for your future financial security to rest on the fate of a single company.
Embracing Apple's potential while maintaining a balanced portfolio will allow you to benefit from its growth while hedging yourself against the unpredictable nature of markets.
10 stocks we like better than Apple
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*Stock Advisor returns as of November 20, 2023
Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAPL data by YCharts. Apple (NASDAQ: AAPL) has long been a prime example of what innovation and savvy business practices look like. That doesn't mean it'll continue growing at that rate, but it does highlight its strong track record, which is often a good indicator of the ability to sustain success over the long haul.
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AAPL data by YCharts. Apple (NASDAQ: AAPL) has long been a prime example of what innovation and savvy business practices look like. Apple's compound annual growth rate over that time has been over 25%.
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AAPL data by YCharts. Apple (NASDAQ: AAPL) has long been a prime example of what innovation and savvy business practices look like. Apple's growth will extend beyond the iPhone Apple's financial success has long depended on the iPhone.
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AAPL data by YCharts. Apple (NASDAQ: AAPL) has long been a prime example of what innovation and savvy business practices look like. Even growing at half of its recent pace could do the trick For an investment to hit $1 million from $100,000 in 20 years, it must grow around 12.25% annually, assuming all gains are reinvested to take full advantage of compound interest.
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12391.0
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2023-11-24 00:00:00 UTC
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After Hours Most Active for Nov 24, 2023 : TV, PCG, TLT, BXSL, AAPL, QQQ, PTEN, LIVN, AMZN, AVNT, T, CLVT
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AAPL
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https://www.nasdaq.com/articles/after-hours-most-active-for-nov-24-2023-%3A-tv-pcg-tlt-bxsl-aapl-qqq-pten-livn-amzn-avnt-t
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The NASDAQ 100 After Hours Indicator is down -14.03 to 15,967.98. The total After hours volume is currently 30,719,773 shares traded.
The following are the most active stocks for the after hours session:
Grupo Televisa S.A.B (TV) is -0.02 at $2.51, with 3,508,630 shares traded. As reported by Zacks, the current mean recommendation for TV is in the "buy range".
Pacific Gas & Electric Co. (PCG) is -0.145 at $17.88, with 2,094,417 shares traded. As reported by Zacks, the current mean recommendation for PCG is in the "buy range".
iShares 20+ Year Treasury Bond ETF (TLT) is +0.15 at $89.95, with 1,842,413 shares traded. This represents a 9.14% increase from its 52 Week Low.
Blackstone Secured Lending Fund (BXSL) is +0.12 at $28.75, with 1,400,746 shares traded. As reported by Zacks, the current mean recommendation for BXSL is in the "buy range".
Apple Inc. (AAPL) is -0.01 at $189.96, with 1,201,349 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $2.08. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is -0.29 at $389.22, with 1,109,321 shares traded. This represents a 49.86% increase from its 52 Week Low.
Patterson-UTI Energy, Inc. (PTEN) is unchanged at $11.97, with 963,700 shares traded. As reported by Zacks, the current mean recommendation for PTEN is in the "buy range".
LivaNova PLC (LIVN) is unchanged at $44.12, with 851,896 shares traded. LIVN's current last sale is 71.16% of the target price of $62.
Amazon.com, Inc. (AMZN) is -0.05 at $146.69, with 757,943 shares traded. Over the last four weeks they have had 13 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023. The consensus EPS forecast is $0.77. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Avient Corporation (AVNT) is unchanged at $34.42, with 701,888 shares traded. As reported by Zacks, the current mean recommendation for AVNT is in the "buy range".
AT&T Inc. (T) is +0.01 at $16.22, with 549,021 shares traded. T's current last sale is 81.1% of the target price of $20.
Clarivate Plc (CLVT) is unchanged at $7.29, with 541,967 shares traded. CLVT's current last sale is 85.76% of the target price of $8.5.
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 -0.01 at $189.96, with 1,201,349 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 +0.15 at $89.95, with 1,842,413 shares traded.
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Apple Inc. (AAPL) is -0.01 at $189.96, with 1,201,349 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 TV is in the "buy range".
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Apple Inc. (AAPL) is -0.01 at $189.96, with 1,201,349 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023.
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Apple Inc. (AAPL) is -0.01 at $189.96, with 1,201,349 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2023.
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12392.0
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2023-11-24 00:00:00 UTC
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4 ETFs to Implement Buffett's Investing Philosophy
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AAPL
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https://www.nasdaq.com/articles/4-etfs-to-implement-buffetts-investing-philosophy
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nan
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Warren Buffett is a well-known figure in the global financial world, and it is worthwhile to track his investment portfolio. This is especially important given he exhibits strong conviction in his investment choices and doesn't frequently change them, making it an effective strategy for those aiming to walk his footsteps.
Buffett: Longstanding Fan of Value Investing
Warren Buffett, the renowned investor and CEO of Berkshire Hathaway, has long been known for his commitment to value investing. Value investing, a concept primarily developed by Benjamin Graham and David Dodd, professors at Columbia Business School in the 1920s, focuses on identifying undervalued stocks with strong fundamentals.
This strategy involves buying securities that appear underpriced by some form of fundamental analysis. Under Buffett's leadership, Berkshire Hathaway has become a winning example of value investing success.
Is Buffett’s Principle Changing?
In the third quarter of 2023, Buffett sold off about $7 billion worth of primarily value-oriented stocks and completely divesting from companies such as General Motors (GM), Johnson and Johnson (JNJ), United Parcel Service (UPS) and Proctor and Gamble (PG). The stock GM has the top-most Value Score of “A” and JNJ as well as UPS has an upbeat Value Score of “B”.
The move triggers a question in mind if Buffett – a proponent of value investing – is changing his investment philosophy. The answer is: Probably not.
Buffett's approach involves buying stocks in companies that are not just undervalued but also have strong potential for growth. He usually picks companies with durable competitive advantages, strong management teams, and stable earnings. His approach normally lies in the concept of "moat investing."
The term “economic moat” was popularized by Warren Buffett who said that he seeks "economic castles protected by unbreachable moats.”In simple words, a wide moat or high-quality company is probably Buffett’s choice, irrespective of its apparent value or growth status.
Buffett’s Top-Holding Apple: A Quality Stock
Notably, Apple AAPL continues to hold the top position in Buffett’s portfolio with a solid 50% allocation. Buffett is renowned for favoring companies with substantial cash reserves, and despite Apple's slower growth, it still maintains a solid cash pile. Apple has considerable economic moat with features like brand recognition, ecosystem strength, continued innovations that set industry standard, solid cash reserves and customer loyalty.
Against this backdrop, below we highlight a few moat and quality ETFs that can be tapped now.
ETFs in Focus
VanEck Morningstar Wide Moat ETF (MOAT)
The underlying Morningstar Wide Moat Focus Index tracks the overall performance of the 20 most attractively priced companies with sustainable competitive advantages. No stock accounts for more than 2.94% of the 55-stock fund. Financials (19.81%) takes the largest weight in the fund, followed by Health care (19.66%), Information Technology (15.55%) and Industrials (15.16%). The fund charges 46 bps in fees. The fund is up 15.2% past year, in line with the S&P 500.
iShares MSCI USA Quality Factor ETF (QUAL)
The underlying MSCI USA Sector Neutral Quality Index is based on a traditional market capitalization-weighted parent index, the MSCI USA Index which includes U.S. large and mid-capitalization stocks. No stock makes up more than about 6.23% of the 129-stock fund. IT (30.61%), healthcare (12.86%) and Financials (11.98%) are top three sectors of the fund. The fund (up 23.9%) topped the S&P 500 (up 19%) this year.
Invesco S&P 500 Quality ETF (SPHQ)
The underlying S&P 500 Quality Index tracks the performance of stocks in the S&P 500 Index that have the highest quality score, which is calculated based on three fundamental measures, return on equity, accruals ratio and financial leverage ratio.
No stock makes up more than about 6.23% of the 129-stock fund. IT (30.61%), healthcare (12.86%) and Financials (11.98%) are top three sectors of the fund. The fund (up 23.9%) topped the S&P 500 (up 19%) this year.
FlexShares Quality Dividend ETF (QDF)
The underlying Northern Trust Quality Dividend Index is designed to provide exposure to a high-quality income-oriented portfolio of long-only U.S. equity securities, with an emphasis on long-term capital growth and a targeted overall beta that is similar to that of the Northern Trust 1250 Index and the Index are selected based on expected dividend payment and fundamental factors.
No stock makes up more than about 9.45% of the 143-stock fund. IT (29.67%), Financials (15.16%) and Healthcare (11.29%) hold top three spots in the fund. The fund yields 2.21% annually. The fund QDF is up 12.2% this year versus a 19.1% uptick in the S&P 500.
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
iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports
FlexShares Quality Dividend ETF (QDF): ETF Research Reports
Invesco S&P 500 Quality ETF (SPHQ): 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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Buffett’s Top-Holding Apple: A Quality Stock Notably, Apple AAPL continues to hold the top position in Buffett’s portfolio with a solid 50% allocation. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports FlexShares Quality Dividend ETF (QDF): ETF Research Reports Invesco S&P 500 Quality ETF (SPHQ): ETF Research Reports To read this article on Zacks.com click here. This is especially important given he exhibits strong conviction in his investment choices and doesn't frequently change them, making it an effective strategy for those aiming to walk his footsteps.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports FlexShares Quality Dividend ETF (QDF): ETF Research Reports Invesco S&P 500 Quality ETF (SPHQ): ETF Research Reports To read this article on Zacks.com click here. Buffett’s Top-Holding Apple: A Quality Stock Notably, Apple AAPL continues to hold the top position in Buffett’s portfolio with a solid 50% allocation. ETFs in Focus VanEck Morningstar Wide Moat ETF (MOAT) The underlying Morningstar Wide Moat Focus Index tracks the overall performance of the 20 most attractively priced companies with sustainable competitive advantages.
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Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports FlexShares Quality Dividend ETF (QDF): ETF Research Reports Invesco S&P 500 Quality ETF (SPHQ): ETF Research Reports To read this article on Zacks.com click here. Buffett’s Top-Holding Apple: A Quality Stock Notably, Apple AAPL continues to hold the top position in Buffett’s portfolio with a solid 50% allocation. The fund is up 15.2% past year, in line with the S&P 500. iShares MSCI USA Quality Factor ETF (QUAL) The underlying MSCI USA Sector Neutral Quality Index is based on a traditional market capitalization-weighted parent index, the MSCI USA Index which includes U.S. large and mid-capitalization stocks.
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The fund (up 23.9%) topped the S&P 500 (up 19%) this year. Buffett’s Top-Holding Apple: A Quality Stock Notably, Apple AAPL continues to hold the top position in Buffett’s portfolio with a solid 50% allocation. Click to get this free report Apple Inc. (AAPL) : Free Stock Analysis Report iShares MSCI USA Quality Factor ETF (QUAL): ETF Research Reports FlexShares Quality Dividend ETF (QDF): ETF Research Reports Invesco S&P 500 Quality ETF (SPHQ): ETF Research Reports To read this article on Zacks.com click here.
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2023-11-24 00:00:00 UTC
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4 ETFs to Shop This Black Friday
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AAPL
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https://www.nasdaq.com/articles/4-etfs-to-shop-this-black-friday
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The holiday season kicked off on Thanksgiving Day, and now it’s time for Black Friday — one of the busiest shopping days of the year. Retailers are splurging on early sales and special discounts and expect a record-breaking worldwide shopping frenzy this year.
The attractive offers are likely to boost retail sales and lead to a surge in stock prices in the days to follow. While an individual stock is a great option to tap the Black Friday deals in the investment world, a basket approach through ETFs is diversified and more cost-effective at lower risk. Investors should stock up ETFs like SPDR S&P Retail ETF XRT, Amplify Online Retail ETF IBUY, VanEck Vectors Retail ETF RTH and ProShares Online Retail ETF ONLN this weekend.
According to the National Retail Federation (“NRF”), about 182 million Americans are expected to shop either in-store or online during the Thanksgiving weekend (spanning five days from Thanksgiving Day through Cyber Monday), up 15.7 million from last year and the highest since NRF began tracking this data in 2017 (read: 5 Reasons Why Consumer Discretionary ETFs Are a Buy Now).
Black Friday continues to be the most popular day to shop, with 72% (130.7 million) planning to shop, up from 69% in 2022. Cyber Monday is the second most popular day, likely to attract 39% (71.1 million) of those planning to shop over the weekend, slightly higher than 38% last year. Clothes are expected to remain the top-selling category during the Black Friday weekend, followed by gift cards and toys.
Sales on Black Friday alone are expected to grow 5.7% and top $9.6 billion, according to Adobe Analytics.
Retailers on a Roll
The Black Friday online sales bonanza is in full swing as a number of retailers had already perked up their deals several weeks before. They are offering a range of exciting deals across various product categories. We have highlighted some of the best deals.
Amazon AMZN kicked off the Black Friday event on Nov 17, and it is set to continue through Nov 24. This event marks Amazon's third major deal event of 2023. Amazon's Black Friday deals feature some of the lowest prices of the year on select products from well-known brands like YETI, Peloton, LEGO, Lancôme and Ruggable. Notable deals include $70 off the new Apple Watch Series 9 and 20% off Dyson products. Lululemon Wunderlust Belt Bag is available for just $39.
For gaming enthusiasts, there's a 20% discount plus a $75 Target gift card on the Xbox Series X Console Diablo IV Bundle. Amazon also offers up to 75% off on select Nintendo Switch Games and up to 59% off on Arcade1Up Arcade Machines (read: Amazon Q3 Earnings Triple YoY: ETFs to Tap).
Additionally, Amazon also unveiled its Cyber Monday plans, with a second sale launching on Nov 25 and running through Nov 27, to offer customers another chance to get rock-bottom prices ahead of the holiday gifting season.
Apple AAPL will kick off its Black Friday shopping event on Nov 24, which will run through Nov 27. The company is offering the best prices of the year on the latest second-generation AirPods Pro, Apple Watch Series 8, certain iPads and Mac laptops, Beats headphones, and even Apple Watch Ultra. Apple AirPods Pro 2 is available at the lowest price ever at just under $100.
Wal-Mart WMT, the world's largest retailer, kicked off its Black Friday deals on Nov 22, providing early access for Walmart+ members from 12 p.m. to 3 p.m. ET and was later made available to the general public at 3 p.m. online. The Black Friday sale at Walmart is set to continue through Cyber Monday. Additionally, a special Cyber Monday sales event will begin on Nov 26. Some of the top deals include Xbox $50 Gift Card for $45, PlayStation Store $50 Gift Card for $45 and Beats Studio3 Wireless Noise Cancelling Headphones for $99 (previously $169).
Target TGT has already started its biggest savings of the season with four weeks of deals leading up to Black Friday on tens of thousands of items, including many up to 50% off, available wherever guests prefer to shop — in-store, online and on the Target app. Additionally, Target is offering special deals from Nov 23 to Nov 25, providing an additional incentive for shoppers during the peak shopping days of the Black Friday event (read: 5 ETFs to Binge on This Thanksgiving Week).
Best Buy's BBY official Black Friday sales event started on Nov 17 and will run through Nov 25, with deals across various categories, including TVs & Projectors, Laptops & Computers, Apple products, Video Games, Consoles & VR, and Major Appliances.
ETFs to Shop
Below, we have highlighted the ETFs in detail.
SPDR S&P Retail ETF (XRT)
SPDR S&P Retail ETF tracks the S&P Retail Select Industry Index, which provides exposure across large, mid and small-cap stocks. It holds well-diversified 78 stocks in its basket, with none making up for more than 2.3% share. SPDR S&P Retail ETF is well spread across various industries with a double-digit allocation each in apparel retail, specialty stores, automotive retail and broadline retail.
SPDR S&P Retail ETF is the largest and most popular in the retail space, with AUM of $499.4 million and an average trading volume of 7.8 million shares. It charges 35 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Amplify Online Retail ETF (IBUY)
Amplify Online Retail ETF offers global exposure to companies with significant revenues from the online retail business, traditional online retail, online travel, online marketplace and omni channel retail by tracking the EQM Online Retail Index. IBUY holds 72 stocks in its basket, with none accounting for more than 2.9% of assets. Amplify Online Retail ETF has the largest allocation in online retail at 39% and online marketplace at 38% (read: Why to Buy Online Retail ETFs Now?).
Amplify Online Retail ETF has attracted $176.9 million in its asset base and charges 65 bps in annual fees. IBUY trades in an average daily volume of 14,000 shares.
VanEck Vectors Retail ETF (RTH)
VanEck Vectors Retail ETF provides exposure to the 25 largest retail firms by tracking the MVIS US Listed Retail 25 Index, which measures the performance of the companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers and food and other staples retailers. VanEck Vectors Retail ETF is highly concentrated on the top firm with double-digit exposure, while the other firms hold no more than 8.5% share.
VanEck Vectors Retail ETF has amassed $172.2 million in its asset base and charges 35 bps in annual fees. It trades in a lower volume of 4,000 shares a day on average. VanEck Vectors Retail ETF has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
ProShares Online Retail ETF (ONLN)
ProShares Online Retail ETF offers exposure to the companies that principally sells online or through other non-store channels and then zeros in on the companies reshaping the retail space. It tracks the ProShares Online Retail Index, holding 19 stocks in its basket. ONLN is highly concentrated on the top firm, while the other firms hold no more than 8% of the assets.
ProShares Online Retail ETF has accumulated $96.1 million in its asset base and charges 58 bps in annual fees. ONLN trades in an average daily volume of 18,000 shares.
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
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Target Corporation (TGT) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
Best Buy Co., Inc. (BBY) : Free Stock Analysis Report
SPDR S&P Retail ETF (XRT): ETF Research Reports
VanEck Retail ETF (RTH): ETF Research Reports
Amplify Online Retail ETF (IBUY): ETF Research Reports
ProShares Online Retail ETF (ONLN): 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 AAPL will kick off its Black Friday shopping event on Nov 24, which will run through Nov 27. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Best Buy Co., Inc. (BBY) : Free Stock Analysis Report SPDR S&P Retail ETF (XRT): ETF Research Reports VanEck Retail ETF (RTH): ETF Research Reports Amplify Online Retail ETF (IBUY): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports To read this article on Zacks.com click here. While an individual stock is a great option to tap the Black Friday deals in the investment world, a basket approach through ETFs is diversified and more cost-effective at lower risk.
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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 Target Corporation (TGT) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Best Buy Co., Inc. (BBY) : Free Stock Analysis Report SPDR S&P Retail ETF (XRT): ETF Research Reports VanEck Retail ETF (RTH): ETF Research Reports Amplify Online Retail ETF (IBUY): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL will kick off its Black Friday shopping event on Nov 24, which will run through Nov 27. Investors should stock up ETFs like SPDR S&P Retail ETF XRT, Amplify Online Retail ETF IBUY, VanEck Vectors Retail ETF RTH and ProShares Online Retail ETF ONLN this weekend.
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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 Target Corporation (TGT) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Best Buy Co., Inc. (BBY) : Free Stock Analysis Report SPDR S&P Retail ETF (XRT): ETF Research Reports VanEck Retail ETF (RTH): ETF Research Reports Amplify Online Retail ETF (IBUY): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports To read this article on Zacks.com click here. Apple AAPL will kick off its Black Friday shopping event on Nov 24, which will run through Nov 27. Investors should stock up ETFs like SPDR S&P Retail ETF XRT, Amplify Online Retail ETF IBUY, VanEck Vectors Retail ETF RTH and ProShares Online Retail ETF ONLN this weekend.
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Apple AAPL will kick off its Black Friday shopping event on Nov 24, which will run through Nov 27. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Best Buy Co., Inc. (BBY) : Free Stock Analysis Report SPDR S&P Retail ETF (XRT): ETF Research Reports VanEck Retail ETF (RTH): ETF Research Reports Amplify Online Retail ETF (IBUY): ETF Research Reports ProShares Online Retail ETF (ONLN): ETF Research Reports To read this article on Zacks.com click here. Investors should stock up ETFs like SPDR S&P Retail ETF XRT, Amplify Online Retail ETF IBUY, VanEck Vectors Retail ETF RTH and ProShares Online Retail ETF ONLN this weekend.
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12394.0
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2023-11-24 00:00:00 UTC
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Apple (AAPL) Expands Streaming Content for Holiday Season
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AAPL
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https://www.nasdaq.com/articles/apple-aapl-expands-streaming-content-for-holiday-season
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Apple AAPL is keeping no stone unturned to increase the appeal of its streaming service Apple TV+, amid intensifying competition. It expanded content for the holiday season with the addition of Home for Christmas, a new musical special in which Hannah Waddingham performs several classic songs. The show also features cameos from several members of the acclaimed Ted Lasso show
The Hannah Waddingham: Home for Christmas features solo performances by Waddingham as well as duets by Leslie Odomon Jr., Sam Ryder, Luke Evans and Phil Dunster.
Apple added The Velveteen Rabbit, a beautiful and sensitive rendition of the popular children's tale. The company also released the latest episodes of Monarch: Legacy of Monsters, For All Mankind, Lessons in Chemistry and The Buccaneers on Apple TV+ a bit earlier due to the Thanksgiving holiday.
For Christmas, Apple will release new seasonal episodes of family favorites such as Frog and Toad, Shape Island and The Snoopy Show. A new singalong version of Spirited, starring Will Ferrell and Ryan Reynolds, will be available beginning Dec 1. The Family Plan, an action comedy, will be released on Dec 15.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Apple TV+ Faces Stiff Competition
Apple TV+ has been benefiting from a strong content portfolio amid stiff competition in the streaming market from the likes of Netflix NFLX, Disney DIS and Amazon AMZN.
Apple TV+, along with Apple Arcade, Apple News+, Apple Card, Apple Fitness+ and Apple One bundle, benefited Apple’s Services segment and contributed 24.9% of sales in fourth-quarter fiscal 2023. Services revenues grew 16.3% year over year to $22.31 billion
However, an impressive content portfolio has not essentially turned into market share gain for Apple TV+.
According to 9TO5Mac, which cited a JustWatch report, Amazon Prime Video was #1 in terms of market share (22%) in the United States, trailed by Netflix (21%). Max, Disney+, and Hulu had 15%,12% and 11% market share, respectively. Apple TV+’s market share increased from 6% to 7%.
Apple shares have outperformed Disney but lag both Amazon and Netflix year to date. While Apple has returned 47.2%, Disney, Amazon and Netflix have gained 9.4%, 74.7%, and 62.1%, respectively.
Apple’s Robust Product Portfolio Aids Prospects
Apple is expected to benefit from strong demand for iPhone 15. The company launched the iPhone 15 series in the United States on Sep 22.
Apple also expanded its Macbook portfolio with a new MacBook Pro lineup that includes the all-new M3 processor family — M3, M3 Pro and M3 Max.
Apple has added personalized contact posters and new face time features in iOS17, new tools for users to customize their experience in macOS Sonoma and iPadOS 17, and a bold new look in watchOS 10 that lets customers see and do more, faster than before.
The strong portfolio is driving Apple’s prospects. For the first quarter of 2024, its revenues are likely to be on par with the year-ago quarter’s figure.
Apple expects iPhone’s year-over-year revenues to grow on an absolute basis. Revenues from Mac are expected to accelerate compared with the September quarter’s reported figure.
This Zacks Rank #3 (Hold) company expects year-over-year revenue growth of both iPad and Wearables, Home and Accessories to decelerate significantly from the September quarter due to the different timing of product launches. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for first-quarter 2024 revenues is pegged at $117.31 billion, indicating 0.1% year-over-year growth. The consensus estimate for earnings is pegged at $2.10 per share, indicating 10.6% year-over-year growth.
The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $418.55 billion, indicating 6.4% year-over-year growth.
The consensus mark for fiscal 2024 earnings is pegged at $6.60 per share, indicating 7.1% year-over-year growth.
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
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
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 keeping no stone unturned to increase the appeal of its streaming service Apple TV+, amid intensifying competition. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. It expanded content for the holiday season with the addition of Home for Christmas, a new musical special in which Hannah Waddingham performs several classic songs.
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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 Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL is keeping no stone unturned to increase the appeal of its streaming service Apple TV+, amid intensifying competition. Apple Inc. Price and Consensus Apple Inc. price-consensus-chart | Apple Inc. Quote Apple TV+ Faces Stiff Competition Apple TV+ has been benefiting from a strong content portfolio amid stiff competition in the streaming market from the likes of Netflix NFLX, Disney DIS and Amazon AMZN.
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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 Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. Apple AAPL is keeping no stone unturned to increase the appeal of its streaming service Apple TV+, amid intensifying competition. Apple Inc. Price and Consensus Apple Inc. price-consensus-chart | Apple Inc. Quote Apple TV+ Faces Stiff Competition Apple TV+ has been benefiting from a strong content portfolio amid stiff competition in the streaming market from the likes of Netflix NFLX, Disney DIS and Amazon AMZN.
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Apple AAPL is keeping no stone unturned to increase the appeal of its streaming service Apple TV+, amid intensifying competition. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report The Walt Disney Company (DIS) : Free Stock Analysis Report To read this article on Zacks.com click here. For Christmas, Apple will release new seasonal episodes of family favorites such as Frog and Toad, Shape Island and The Snoopy Show.
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12395.0
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2023-11-24 00:00:00 UTC
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Active Growth ETF TCHP a Top 5 Performer YTD
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AAPL
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https://www.nasdaq.com/articles/active-growth-etf-tchp-a-top-5-performer-ytd
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nan
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nan
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If 2023 has been the year of active, the T. Rowe Price Blue Chip ETF (TCHP) has been a key contributor. The active growth ETF has not only surpassed significant AUM thresholds, passing $400 million, but also led based on YTD returns. Among nonleveraged, hedged, or inverse active ETFs with more than $300 million in AUM, TCHP has been a top-five performer, per VettaFi data. That may invite investors to take a closer look at the strategy ahead of 2024.
2023 has seen active ETFs cap off three years of picking up significant flows relative to their AUM. Since October 2020, actives picked up 14% of net flows despite representing just 3.5% of the ETF market. A combination of investors looking to active to ride out a turbulent few years, active mutual fund investors looking to swap to ETFs’ tax advantages, and a crowded indexed ETF space have boosted active ETFs’ year.
See more: "T. Rowe Price’s Active ETF Suite Hits $2 Billion AUM"
Together, those have contributed to a strong overall performance and some notable organic growth for active strategies versus their passive rivals. So what, then, can investors attribute TCHP’s performance to, specifically? The active growth ETF has benefited not only from investing in market leaders that fit its “blue chip” approach but also from its flexibility.
The Active Growth ETF TCHP's Approach
TCHP holds the likes of Apple (AAPL) and Nvidia (NVDA), of course. But it also holds other robust firms that receive less notice, like cloud computing firm ServiceNow (NOW). For only 57 basis points (bps), TCHP actively seeks out firms with seasoned management, dividend growth, strong fundamentals, and leading market positions. In doing so, it has returned 45.1% YTD, the fifth most among traditional (those without leverage, hedging, or inverse screens). In sum, it may be worth considering entering the new year.
For more news, information, and analysis, visit the Active ETF 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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The Active Growth ETF TCHP's Approach TCHP holds the likes of Apple (AAPL) and Nvidia (NVDA), of course. The active growth ETF has not only surpassed significant AUM thresholds, passing $400 million, but also led based on YTD returns. The active growth ETF has benefited not only from investing in market leaders that fit its “blue chip” approach but also from its flexibility.
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The Active Growth ETF TCHP's Approach TCHP holds the likes of Apple (AAPL) and Nvidia (NVDA), of course. If 2023 has been the year of active, the T. Rowe Price Blue Chip ETF (TCHP) has been a key contributor. Among nonleveraged, hedged, or inverse active ETFs with more than $300 million in AUM, TCHP has been a top-five performer, per VettaFi data.
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The Active Growth ETF TCHP's Approach TCHP holds the likes of Apple (AAPL) and Nvidia (NVDA), of course. A combination of investors looking to active to ride out a turbulent few years, active mutual fund investors looking to swap to ETFs’ tax advantages, and a crowded indexed ETF space have boosted active ETFs’ year. See more: "T. Rowe Price’s Active ETF Suite Hits $2 Billion AUM" Together, those have contributed to a strong overall performance and some notable organic growth for active strategies versus their passive rivals.
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The Active Growth ETF TCHP's Approach TCHP holds the likes of Apple (AAPL) and Nvidia (NVDA), of course. If 2023 has been the year of active, the T. Rowe Price Blue Chip ETF (TCHP) has been a key contributor. A combination of investors looking to active to ride out a turbulent few years, active mutual fund investors looking to swap to ETFs’ tax advantages, and a crowded indexed ETF space have boosted active ETFs’ year.
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12396.0
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2023-11-24 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-9
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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 94% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
FUNDAMENTAL MOMENTUM: PASS
TWELVE MINUS ONE MOMENTUM: PASS
FINAL RANK: PASS
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
More Information on Dashan Huang
Dashan Huang Portfolio
About Dashan Huang: Dashan Huang is an Assistant Professor of Finance at the Lee Kong Chian School of Business at Singapore Management University. His paper "Twin Momentum" looked at combining traditional price momentum with improving fundamentals to generate market outperformance. In the paper, he identified seven fundamental variables (earnings, return on equity, return on assets, accrual operating profitability to equity, cash operating profitability to assets, gross profit to assets and net payout ratio) that he combined into a single fundamental momentum measure. He showed that stocks in the top 20% of the universe according to that measure outperformed the market going forward. When he combined that measure with price momentum, he was able to double its outperformance.
Additional Research Links
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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12397.0
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2023-11-24 00:00:00 UTC
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71% of Warren Buffett's $357 Billion Portfolio Is Invested in Just 4 Stocks
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AAPL
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https://www.nasdaq.com/articles/71-of-warren-buffetts-%24357-billion-portfolio-is-invested-in-just-4-stocks
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nan
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When Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett weighs in on stocks or the U.S. economy, investors tend to pay close attention. That's because the Oracle of Omaha has a phenomenal investment track record. Since becoming CEO in the mid-1960s, he's led his company's Class A shares to an annualized return of 19.8% (as of Dec. 31, 2022), which is double the 9.9% annualized total return, including dividends, generated by the benchmark S&P 500 over the same timeline.
The "formula" for Buffett's and Berkshire Hathaway's success is no secret. Buffett and his right-hand man, executive vice chairman Charlie Munger, willingly share the traits they look for in businesses and management teams that often lead to winning investments.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
But the factor that doesn't get nearly enough credit for Berkshire Hathaway's success is portfolio concentration. Warren Buffett and his team of investors strongly believe in putting an outsized amount of capital to work in their best ideas. The $357 billion portfolio that Buffett and his team oversee, which holds 51 securities, currently has 71% of invested assets tied up in just four stocks.
Apple: $173,672,648,862 (48.6% of invested assets)
During Berkshire Hathaway's annual shareholder meeting in May, Buffett referred to tech stock Apple (NASDAQ: AAPL) as "a better business than any we own."
At the time Buffett made this remark, Berkshire outright owned railroad BNSF and leading insurer GEICO, as well as had small equity positions in Johnson & Johnson and Procter & Gamble. J&J is one of only two publicly traded companies with a AAA credit rating, while P&G boasts one of the longest annual streaks of dividend increases among publicly traded companies. And yet, Buffett views Apple as the best business of the bunch.
What Apple brings to the table for the Oracle of Omaha is predictability in a lot of respects. To begin with, it's one of the world's most-recognized brands, and it has an exceptionally loyal base of customers. A report released in 2021 from research group CIRP found that around 90% of iPhone buyers tend to stick with the brand when making their next purchase. The next-closest in loyalty rate was Samsung, which didn't even reach the 70% loyalty-rate mark.
Apple also provides plenty of innovation. On top of the iPhone leading the U.S. in smartphone market share, CEO Tim Cook is overseeing a steady transition toward subscription services. Apple isn't tossing aside the physical devices that brought it fame. Rather, it's evolving into a more-diversified company that'll bolster customer loyalty even more, as well as lift its operating margin over time.
Best of all, Apple's capital-return program is unmatched. If you thought Warren Buffett buying back more than $72 billion worth of Berkshire Hathaway stock since July 2018 was impressive, you're in for a surprise. Apple has bought back more than $600 billion worth of its own stock since commencing its share-repurchase program in 2013. These buybacks are progressively increasing Berkshire's ownership stake in Apple.
Bank of America: $30,964,903,140 (8.7% of invested assets)
Although it's a distant second fiddle to Apple, Bank of America (NYSE: BAC) accounts for nearly $31 billion of Berkshire Hathaway's invested assets.
Financials are, without question, Buffett's favorite sector to put Berkshire's money to work in. Specifically, he's a big fan of bank stocks. Even though banks are cyclical and can struggle with higher loan losses and credit delinquencies during recessions, the U.S. economy spends a disproportionate amount of time expanding, relative to the contracting. This allows bank stocks to grow their loan portfolios over time and benefit from the natural expansion of the U.S. economy.
But there are likely more than just macro factors influencing Warren Buffett's love of BofA stock. In particular, Bank of America is the most interest-sensitive of the big banks. With the Federal Reserve undertaking its steepest rate-hiking cycle in four decades, no money-center bank has benefited more than BofA.
Bank of America's technology investments are paying off handsomely, too. The company's efforts to promote digitization have steadily increased the percentage of users banking digitally, as well as the percentage of loan sales completed online or via mobile app. Fewer in-person interactions have allowed BofA to consolidate some of its branches and reduce its expenses.
And let's not forget that the Oracle of Omaha loves a good value. Bank of America is trading below its book value and doling out a yield north of 3%.
Image source: American Express.
American Express: $24,645,835,392 (6.9% of invested assets)
Credit-services provider American Express (NYSE: AXP) is the third-largest holding in Berkshire Hathaway's $357 billion portfolio. This 30-year holding accounts for almost 7% of invested assets.
Like Bank of America, AmEx, as American Express is commonly known, benefits from long-winded periods of economic expansion. Since the end of World War II in 1945, the U.S. has navigated 12 recessions, just three of which lasted 12 months and none of which surpassed 18 months in length. Comparatively, there have been a handful of expansions that have lasted between four and 12 years. These periods of growth allow financial stocks to thrive.
What really makes American Express tick is its ability to play both sides of the transaction counter. It's the domestic No. 3, in terms of credit card network purchase volume, and it also acts as a lender to consumers and businesses. In other words, it's collecting fees from merchants to facilitate transactions, as well as annual fees and interest income from its cardholders. Being able to double dip can upsize its profits during long periods of expansion.
Another reason AmEx is such a long-term success story is its clientele. American Express has an extensive track record of attracting high earners. Cardholders with above-average incomes are less likely to alter their spending habits during minor economic downturns. For AmEx, it means less chance of disruption during recessions.
Berkshire Hathaway is also generating significant annual income from its position in American Express. Buffett and his team are netting a 28.3% annual yield, relative to Berkshire's $8.49-per-share cost basis in AmEx.
Coca-Cola: $22,904,000,000 (6.4% of invested assets)
The fourth and final stock that collectively with Apple, Bank of America, and American Express, accounts for 71% of the $357 billion portfolio Warren Buffett oversees at Berkshire Hathaway is beverage company Coca-Cola (NYSE: KO). Coca-Cola is Buffett's longest continuously held stock (since 1988).
Coca-Cola is a consumer staples stock, which simply means it's a non-cyclical company that provides products (beverages) consumers purchase regardless of how well or poorly the U.S. or global economy are performing. This consistency of demand leads to highly predictable operating cash flow.
Something else working in Coca-Cola's favor is its brand awareness. It's the most-valuable food and beverage brand globally, and according to the annual "Brand Footprint" report from Kantar has been the most-chosen brand by consumers over the past decade. Consumers purchase Coca-Cola products from store shelves nearly 6 billion times each year. This is an example of exceptionally strong brand loyalty.
Geographic diversity is another feather in the cap for Coca-Cola. With the exception of North Korea, Cuba, and Russia (the latter is due to its ongoing war with Ukraine), Coca-Cola has ongoing operations in every other country, and has a massive beverage portfolio with 26 brands generating at least $1 billion in annual sales. The company is able to lean on developed countries for consistent cash flow year in and year out, while pivoting to emerging markets for an organic growth boost.
To keep with the theme, Coca-Cola is also an income juggernaut. It's increased its base annual dividend for 61 consecutive years. Given Berkshire's exceptionally low cost basis of $3.2475 on Coca-Cola, Buffett's company is generating a nearly 57% annual yield, relative to cost, on the beverage giant.
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 November 15, 2023
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 Johnson & Johnson 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: $173,672,648,862 (48.6% of invested assets) During Berkshire Hathaway's annual shareholder meeting in May, Buffett referred to tech stock Apple (NASDAQ: AAPL) as "a better business than any we own." Buffett and his right-hand man, executive vice chairman Charlie Munger, willingly share the traits they look for in businesses and management teams that often lead to winning investments. On top of the iPhone leading the U.S. in smartphone market share, CEO Tim Cook is overseeing a steady transition toward subscription services.
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Apple: $173,672,648,862 (48.6% of invested assets) During Berkshire Hathaway's annual shareholder meeting in May, Buffett referred to tech stock Apple (NASDAQ: AAPL) as "a better business than any we own." When Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett weighs in on stocks or the U.S. economy, investors tend to pay close attention. Coca-Cola: $22,904,000,000 (6.4% of invested assets) The fourth and final stock that collectively with Apple, Bank of America, and American Express, accounts for 71% of the $357 billion portfolio Warren Buffett oversees at Berkshire Hathaway is beverage company Coca-Cola (NYSE: KO).
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Apple: $173,672,648,862 (48.6% of invested assets) During Berkshire Hathaway's annual shareholder meeting in May, Buffett referred to tech stock Apple (NASDAQ: AAPL) as "a better business than any we own." Bank of America: $30,964,903,140 (8.7% of invested assets) Although it's a distant second fiddle to Apple, Bank of America (NYSE: BAC) accounts for nearly $31 billion of Berkshire Hathaway's invested assets. Coca-Cola: $22,904,000,000 (6.4% of invested assets) The fourth and final stock that collectively with Apple, Bank of America, and American Express, accounts for 71% of the $357 billion portfolio Warren Buffett oversees at Berkshire Hathaway is beverage company Coca-Cola (NYSE: KO).
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Apple: $173,672,648,862 (48.6% of invested assets) During Berkshire Hathaway's annual shareholder meeting in May, Buffett referred to tech stock Apple (NASDAQ: AAPL) as "a better business than any we own." Like Bank of America, AmEx, as American Express is commonly known, benefits from long-winded periods of economic expansion. Berkshire Hathaway is also generating significant annual income from its position in American Express.
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12398.0
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2023-11-24 00:00:00 UTC
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2 Top Warren Buffett Stocks to Buy Right Now
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AAPL
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https://www.nasdaq.com/articles/2-top-warren-buffett-stocks-to-buy-right-now-12
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nan
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Warren Buffett has long been arguably the most recognizable name in investing. Through decades of strategic investments, Buffett and his team have built Berkshire Hathaway into one of the world's most valuable public companies, with a market capitalization of over $780 billion.
Given the success that Buffett and Berkshire Hathaway have had in picking stocks and acquisitions, it's common for investors to look at the conglomerate's holdings to get ideas for where to put their own money. That portfolio includes more than 50 stocks today, but here are two in particular that I'd recommend buying right now.
1. Visa
Buffett has long been a fan of companies with competitive moats, and few have one as wide as Visa (NYSE: V). It is the global leader in payment processing and benefits nicely from network effects. As it stands, Visa has over 4.2 billion cards in circulation, and its payment processing network is used by over 100 million merchants worldwide.
Merchants are incentivized to join the Visa network because so many consumers have Visa cards, so not accepting them would limit potential customers. For consumers looking for credit cards, there are incentives to go with Visa because it's the most widely accepted card globally, and having a different card could mean not being able to use it.
This network effect has worked wonders for Visa because it doesn't incur too many additional costs to add cardholders or merchants. Yet, additional cardholders and merchants mean more transactions and more revenue for Visa. The company's margins and free cash flow are a testament to this phenomenon.
V Profit Margin data by YCharts.
Visa's high margins and free cash flow are important because they support an underrated aspect of Visa's business: its dividend. With a yield of just over 0.8% at the current share price, Visa doesn't scream "dividend stock."
However, long-term investors should note how much the company is actively raising its annual payout. Visa recently increased its quarterly dividend by over 15% to $0.52 per share, and its payout is more than double what it was just five years ago.
Visa is a top-tier growth stock with the potential to consistently increase its dividend over the long haul. Given the company's market position and financial standing, there's no reason to believe it won't do both.
2. Apple
Apple (NASDAQ: AAPL) is by far Berkshire Hathaway's largest equity holding, accounting for more than 48% of the value of its stock portfolio as of Sept. 30. The conglomerate made its first Apple investment in the first quarter of 2016, so it seems fair to say that Buffett and his team have become major fans of the tech giant.
Apple has ascended to being the world's most valuable public company, primarily because of the success of its hardware products (iPhone, MacBook, iPad, Apple Watch, etc.); however, its ability to maintain its place at the top of the tech world will likely rest on how well it succeeds with its services.
The iPhone is Apple's most important moneymaker, accounting for over 52% of its revenue in its fiscal 2023 (which ended Sept. 30). However, that's a noticeably lower percentage than just a handful of years ago.
Meanwhile, its services segment has been consistently pulling more weight. In its latest fiscal year, Apple's services revenue increased 9% year over year to $85.2 billion, while sales of iPhones, Macs, iPads, and wearables all decreased.
Having hardware drop in sales isn't ideal (although it was expected this year), but having services account for more of its revenue is great for Apple because subscriptions and recurring revenue provide a more stable and predictable income stream -- especially compared to the cyclical nature of the hardware market.
As Apple continues to expand its footprint in financial and health services, it'll open the door for significant growth opportunities. Both industries are primed for tech-based disruptions (see fintech and telehealth), and who better to provide those disruptions than a company known for technological innovation, and one with massive resources to deploy in its efforts?
Apple should continue to provide great shareholder value going forward.
10 stocks we like better than Visa
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 Visa 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 20, 2023
American Express is an advertising partner of The Ascent, a Motley Fool company. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Stefon Walters has positions in Apple. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Mastercard, and Visa. The Motley Fool recommends Discover Financial Services and recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Apple (NASDAQ: AAPL) is by far Berkshire Hathaway's largest equity holding, accounting for more than 48% of the value of its stock portfolio as of Sept. 30. Through decades of strategic investments, Buffett and his team have built Berkshire Hathaway into one of the world's most valuable public companies, with a market capitalization of over $780 billion. Given the success that Buffett and Berkshire Hathaway have had in picking stocks and acquisitions, it's common for investors to look at the conglomerate's holdings to get ideas for where to put their own money.
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Apple Apple (NASDAQ: AAPL) is by far Berkshire Hathaway's largest equity holding, accounting for more than 48% of the value of its stock portfolio as of Sept. 30. In its latest fiscal year, Apple's services revenue increased 9% year over year to $85.2 billion, while sales of iPhones, Macs, iPads, and wearables all decreased. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Mastercard, and Visa.
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Apple Apple (NASDAQ: AAPL) is by far Berkshire Hathaway's largest equity holding, accounting for more than 48% of the value of its stock portfolio as of Sept. 30. Having hardware drop in sales isn't ideal (although it was expected this year), but having services account for more of its revenue is great for Apple because subscriptions and recurring revenue provide a more stable and predictable income stream -- especially compared to the cyclical nature of the hardware market. See the 10 stocks *Stock Advisor returns as of November 20, 2023 American Express is an advertising partner of The Ascent, a Motley Fool company.
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Apple Apple (NASDAQ: AAPL) is by far Berkshire Hathaway's largest equity holding, accounting for more than 48% of the value of its stock portfolio as of Sept. 30. Through decades of strategic investments, Buffett and his team have built Berkshire Hathaway into one of the world's most valuable public companies, with a market capitalization of over $780 billion. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Visa wasn't one of them!
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12399.0
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2023-11-24 00:00:00 UTC
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Wall St Week Ahead-Broadening of U.S. stock rally feeds investor optimism
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AAPL
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https://www.nasdaq.com/articles/wall-st-week-ahead-broadening-of-u.s.-stock-rally-feeds-investor-optimism
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nan
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By Lewis Krauskopf, David Randall and Saqib Iqbal Ahmed
NEW YORK, Nov 24 (Reuters) - Signs the U.S. stock market rally is broadening from the so-called Magnificent Seven of mega-cap growth and technology companies is bolstering investor hopes for a rally through year-end.
Equities have risen sharply, with the S&P 500 .SPX up over 8% in November, on the cusp of a new high for 2023, fueled by falling Treasury yields and cooling inflation readings that could signal the end of Federal Reserve rate hikes. Yields fall when Treasury prices rise, and the lower returns on guaranteed fixed-income investments make stocks more appealing.
In one encouraging sign, about 55% of the S&P 500 were trading above their 200-day moving averages as of Monday. That level breached 50% last week for the first time in nearly two months, according to LPL Financial.
"Breadth is finally starting to broaden out to levels more commensurate with bull markets," said Adam Turnquist, chief technical strategist at LPL Financial. "This has been one of the keys to calling this recovery sustainable."
Among other signs, the equal-weight S&P 500 .SPXEW -- a proxy for the average stock in the index -- rose 3.24% last week. That was substantially more than the 2.24% rise for the market-cap weighted S&P 500 .SPX, the biggest percentage point outperformance for the equal-weight index in nearly five months.
Even so, the S&P 500 equal-weight index has gained just 3% in 2023 against an 18% rise for the overall S&P 500 -- on pace for the biggest such annual percentage-point gap in 25 years.
Much of that underperformance is due to the outsized gain in the Magnificent Seven stocks, which collectively hold a 28% weight in the S&P 500 index: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvdia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. Overall, the group of stocks makes up nearly 50% of the weighting of the Nasdaq 100, which is up nearly 47% for the year to date.
Struggling small-cap and bank stocks have perked up, especially after last week's U.S. consumer price data for October was unchanged from the prior month.
The small-cap Russell 2000 .RUT is up 5.5% since the CPI data with the S&P 500 banks index .SPXBK up 6.5%, versus a 3% rise for the S&P 500. Year-to-date, the Russell 2000 is up 2%, while the S&P 500 banks index has fallen over 6%.
Mona Mahajan, senior investment strategist at Edward Jones, said an environment that could be conducive for a broadening of the rally "is starting to take shape."
“This environment where rates are cooling, inflation is moderating and the Fed is on the sidelines, that is typically a good backdrop for risk assets,” Mahajan said.
“Typically when rates start to move lower, you get valuation expansion and the areas that we could see some more meaningful valuation expansion is outside of large-cap tech,” she said.
The equal-weight S&P 500 is trading at a 5% discount to its 10-year average forward price-to-earnings ratio, according to Edward Jones.
Still, there are reasons to think that the market rally is not on the verge of a sustained broadening.
Investors will get further readings of consumer confidence and inflation next week. Stronger than expected data could spur a selloff in Treasuries, sending yields higher.
At the same time, the sharp rally in stocks for the week ended Nov. 17 was accompanied by high demand for upside call options, particularly in parts of the market that have underperformed this year, such as the small-caps focused iShares Russell 2000 ETF IWM.P.
Some of that has already started to unwind.
"We saw a huge pickup in expectations for IWM, but now those seem to have stabilized," said Steve Sosnick, chief strategist at Interactive Brokers.
The recent surge, which has pushed the broad S&P 500 up approximately 10% over the last three weeks, may not last as investors prepare to close their books for the year, said Jason Draho, head of asset allocation Americas at UBS Global Wealth Management.
"A lot of good news is already priced in and investors may be reluctant to chase the rally," he said.
Joining the party https://tmsnrt.rs/40S10KG
(Reporting by David Randall, Lewis Krauskopf, Saqib Iqbal Ahmed; editing by Megan Davies and David Gregorio)
((David.Randall@thomsonreuters.com; 646-223-6607; Reuters Messaging: david.randall.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Much of that underperformance is due to the outsized gain in the Magnificent Seven stocks, which collectively hold a 28% weight in the S&P 500 index: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvdia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. Equities have risen sharply, with the S&P 500 .SPX up over 8% in November, on the cusp of a new high for 2023, fueled by falling Treasury yields and cooling inflation readings that could signal the end of Federal Reserve rate hikes. At the same time, the sharp rally in stocks for the week ended Nov. 17 was accompanied by high demand for upside call options, particularly in parts of the market that have underperformed this year, such as the small-caps focused iShares Russell 2000 ETF IWM.P.
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Much of that underperformance is due to the outsized gain in the Magnificent Seven stocks, which collectively hold a 28% weight in the S&P 500 index: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvdia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. By Lewis Krauskopf, David Randall and Saqib Iqbal Ahmed NEW YORK, Nov 24 (Reuters) - Signs the U.S. stock market rally is broadening from the so-called Magnificent Seven of mega-cap growth and technology companies is bolstering investor hopes for a rally through year-end. Equities have risen sharply, with the S&P 500 .SPX up over 8% in November, on the cusp of a new high for 2023, fueled by falling Treasury yields and cooling inflation readings that could signal the end of Federal Reserve rate hikes.
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Much of that underperformance is due to the outsized gain in the Magnificent Seven stocks, which collectively hold a 28% weight in the S&P 500 index: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvdia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. By Lewis Krauskopf, David Randall and Saqib Iqbal Ahmed NEW YORK, Nov 24 (Reuters) - Signs the U.S. stock market rally is broadening from the so-called Magnificent Seven of mega-cap growth and technology companies is bolstering investor hopes for a rally through year-end. Among other signs, the equal-weight S&P 500 .SPXEW -- a proxy for the average stock in the index -- rose 3.24% last week.
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Much of that underperformance is due to the outsized gain in the Magnificent Seven stocks, which collectively hold a 28% weight in the S&P 500 index: Apple AAPL.O, Microsoft MSFT.O, Alphabet GOOGL.O, Amazon AMZN.O, Nvdia NVDA.O, Meta Plaforms META.O and Tesla TSLA.O. By Lewis Krauskopf, David Randall and Saqib Iqbal Ahmed NEW YORK, Nov 24 (Reuters) - Signs the U.S. stock market rally is broadening from the so-called Magnificent Seven of mega-cap growth and technology companies is bolstering investor hopes for a rally through year-end. "Breadth is finally starting to broaden out to levels more commensurate with bull markets," said Adam Turnquist, chief technical strategist at LPL Financial.
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